during the year ended december 31 , 2013 , pra recorded $ 2.0 million in net allowance charge reversals , compared with $ 6.6 million in net allowance charges in the year ended december 31 , 2012. our performance has been positively impacted by operational efficiencies surrounding the cash collections process , including the continued refinement of account scoring analytics as it relates to both legal and non-legal collection channels . additionally , we have continued to develop our internal legal collection staff resources , which enables us to place accounts into that channel that otherwise would have been prohibitively expensive for legal action and to collect these accounts more efficiently and profitably . fee income increased from $ 62.2 million for the year ended december 31 , 2012 to $ 71.6 million in 2013 , primarily due to an increase in revenues generated by ccb and our pgs business . the increase in revenue from ccb is due primarily to larger distributions of class action settlements in the year ended december 31 , 2013 as compared to the year ended december 31 , 2012. in particular , there was one large class action settlement which generated approximately $ 9.3 million in fee income . this was partially offset by declines in revenue at our pls and pra uk businesses . the decline from pls is due primarily to the adverse impact of the economic slowdown on automobile financing and related collateral recovery activities . the decline in fee income from pra uk is due primarily to a decline in the amount of contingent fee work provided to us by debt owners for the year ended december 31 , 2013 as compared to the year ended december 31 , 2012 . 37 a summary of how our revenue was generated during the year ended december 31 , 2013 , 2012 and 2011 is as follows : replace_table_token_13_th operating expenses were $ 437.6 million for the year ended december , 31 , 2013 , up 16.2 % as compared to the year ended december 31 , 2012 , due primarily to increases in compensation expense , legal collection costs , legal collection fees , other operating expenses and impairment of goodwill . compensation expense increased primarily as a result of larger staff sizes , as well as an increase in share-based compensation expense and incentive and other performance based compensation incurred as a result of the overall strong company performance . compensation and employee service expenses increased as total employees grew 10.0 % to 3,543 as of december 31 , 2013 from 3,221 as of december 31 , 2012 . legal collection costs were $ 83.1 million for the year ended december 31 , 2013 compared to $ 72.3 million for the year ended december 31 , 2012 , an increase of $ 10.8 million or 14.9 % . this increase was the result of an increased portfolio size as well as a refinement of our internal scoring methodology that expanded our account selections for legal action . this strategy to expand the accounts brought into the legal collection process resulted in significant initial expenses , which may drive additional future cash collections and revenue . legal collection fees increased from $ 34.4 million for the year ended december 31 , 2012 to $ 41.5 million for the year ended december 31 , 2013 , an increase of $ 7.1 million or 20.6 % . this increase was the result of an increase in cash collections from outside attorneys from $ 157.8 million in the year ended december 31 , 2012 to $ 192.4 million for the year ended december 31 , 2013 , an increase of $ 34.6 million or 21.9 % . other operating expenses increased from $ 19.7 million for the year ended december 31 , 2012 to $ 25.8 million for the year ended december 31 , 2013 , an increase of $ 6.1 million or 31.0 % . of the $ 6.1 million increase , $ 4.1 million is related to the additional expense incurred as a result of the earn-out provision of the asset purchase agreement entered into in connection with the acquisition of certain finance receivables and operating assets of national capital management ( `` ncm `` ) in 2012 and $ 0.8 million is due to an increase in insurance expenses . none of the remaining $ 1.2 million increase was attributable to any significant identifiable items . during the year ended december 31 , 2013 , we acquired finance receivables portfolios with an aggregate face value amount of $ 7.9 billion at a cost of $ 656.8 million . during the year ended december 31 , 2012 , excluding the initial investment in the pra uk portfolio , we acquired finance receivable portfolios with an aggregate face value of $ 6.2 billion at a cost of $ 538.5 million . during the year ended december 31 , 2011 , we acquired finance receivable portfolios with an aggregate face value of $ 9.8 billion at a cost of $ 408.4 million . in any period , we acquire defaulted consumer receivables that can vary dramatically in their age , type and ultimate collectability . we may pay significantly different purchase rates for purchased receivables within any period as a result of this quality fluctuation . in addition , market forces can drive pricing rates up or down in any period , irrespective of other quality fluctuations . as a result , the average purchase rate paid for any given period can fluctuate dramatically based on our particular buying activity in that period . however , regardless of the average purchase price and for similar time frames , we intend to target a similar internal rate of return , after direct expenses , in pricing our portfolio acquisitions ; therefore , the absolute rate paid is not necessarily relevant to the estimated profitability of a period 's buying . story_separator_special_tag however , regardless of the average purchase price and for similar time frames , we intend to target a similar internal rate of return , after direct expenses , in pricing our portfolio acquisitions ; therefore , the absolute rate paid is not necessarily relevant to the estimated profitability of a period 's buying . accretable yield represents the amount of income recognized on finance receivables the company can expect to generate over the remaining life of its existing portfolios based on estimated future cash flows as of the balance sheet date . additions represent the original expected accretable yield , on portfolios purchased during the period , to be earned by the company based on its proprietary buying models . net reclassifications from nonaccretable difference to accretable yield primarily result from the company 's increase in its estimate of future cash flows . increases in future cash flows may occur as portfolios age and actual cash collections exceed those originally expected . if those cash flows are determined to be incremental to the portfolio 's original forecast , future projections of cash flows are generally increased resulting in higher expected revenue and hence increases in accretable yield . during the years ended december 31 , 2012 and 2011 , the company reclassified amounts from nonaccretable difference to accretable yield due primarily to increased cash collection forecasts relating to pools acquired from 2009-2011 and 2009-2010 , respectively . when applicable , net reclassifications to nonaccretable difference from accretable yield result from the company 's decrease in its estimates of future cash flows and allowance charges that exceed the company 's increase in its estimate of future cash flows . income recognized on finance receivables , net , is shown net of changes in valuation allowances recognized under fasb asc topic 310-30 “ loans and debt securities acquired with deteriorated credit quality ” ( “ asc 310-30 ” ) , which requires that a valuation allowance be recorded for significant decreases in expected cash flows or a change in timing of cash flows which would otherwise require a reduction in the stated yield on a pool of accounts . for the year ended december 31 , 2012 , we recorded net allowance charges of $ 6.6 million , $ 8.6 million of which related to purchased bankruptcy portfolios acquired mainly in 2007 and 2008 , offset by a net reversal of $ 2.0 million on core portfolios . for the year ended december 31 , 2011 , we recorded net allowance charges of $ 10.2 million , $ 6.6 million of which related to core portfolios acquired mainly in 2005 through 2008 and $ 3.6 million of which related to purchased bankruptcy portfolios acquired mainly in 2007 through 2008. in any given period , we may be required to record valuation allowances due to pools of receivables underperforming our expectations . factors that may contribute to the recording of valuation allowances may include both internal as well as external factors . external factors which may have an impact on the collectability , and subsequently to the overall profitability , of purchased pools of defaulted consumer receivables include : new laws or regulations relating to collections , new interpretations of existing laws or regulations , and the overall condition of the economy . internal factors which may have an impact on the collectability , and subsequently the overall profitability , of purchased pools of defaulted consumer receivables would include : necessary revisions to initial and post-acquisition scoring and modeling estimates , non-optimal operational activities ( relating to the collection and movement of accounts on both our collection floor and external channels ) , and decreases in productivity related to turnover of our collection staff . fee income fee income was $ 62.2 million for the year ended december 31 , 2012 , an increase of $ 5.2 million or 9.1 % compared to fee income of $ 57.0 million for the year ended december 31 , 2011 . fee income increased primarily due to the acquisition of pra uk in the first quarter of 2012. this increase was partially offset by declines in revenue generated by both our pls and ccb businesses . the decline from pls is due primarily to the adverse impact of the economic slowdown on automobile financing and related collateral recovery activities . the decline from ccb is due primarily to larger distributions of class action settlements in the year ended december 31 , 43 2011 as compared to the year ended december 31 , 2012. we anticipate , based on available data on hand at december 31 , 2012 , that ccb 's fee income should increase in 2013. in particular , we believe there will likely be one large class action settlement which could generate approximately $ 4.0 to $ 6.0 million or more in fee income . operating expenses total operating expenses were $ 376.7 million for the year ended december 31 , 2012 , an increase of $ 94.6 million or 33.5 % compared to total operating expenses of $ 282.1 million for the year ended december 31 , 2011 . total operating expenses were 38.8 % of cash receipts for the year ended december 31 , 2012 compared with 37.0 % for the year ended december 31 , 2011 . compensation and employee services compensation and employee service expenses were $ 168.4 million for the year ended december 31 , 2012 , an increase of $ 30.2 million or 21.9 % compared to compensation and employee service expenses of $ 138.2 million for the year ended december 31 , 2011 . compensation expense increased primarily as a result of larger staff sizes , including the addition of new employees as a result of the acquisition of pra uk on january 16 , 2012 , as well as an increase in share-based compensation expense . total employees grew 22.0 % to 3,221 as of december 31 , 2012 from 2,641 as of december 31

liquidity and capital resources historically , our primary sources of cash have been cash flows from operations , bank borrowings , and convertible debt and equity offerings . cash has been used for acquisitions of finance receivables , corporate acquisitions , repurchase of our common stock , repayments of bank borrowings , operating expenses , purchases of property and equipment , and working capital to support our growth . as of december 31 , 2013 , cash and cash equivalents totaled $ 162.0 million , compared to $ 32.7 million at december 31 , 2012. at december 31 , 2013 , we had no debt outstanding on the revolving portion of our credit facility which represents availability of $ 435.5 million ( subject to the borrowing base and applicable debt covenants ) . conversely , at december 31 , 2012 , we had $ 127.0 million outstanding on the floating rate term loan portion of our credit facility which represented availability of $ 273.0 million ( subject to the borrowing base and applicable debt covenants ) . we have in place forward flow commitments for the purchase of defaulted consumer receivables over the next twelve months with a maximum purchase price of $ 90.0 million as of december 31 , 2013. additionally we may enter into new or renewed flow commitments in the next twelve months and close on spot transactions in addition to the aforementioned flow agreements . we believe that funds generated from operations and from cash collections on finance receivables , together with existing cash and available borrowings under our credit facility will be sufficient to finance our operations , planned capital expenditures , the aforementioned forward flow commitments , and additional , normal-course portfolio purchasing during the next twelve months . business acquisitions or higher than normal levels of portfolio purchasing could require additional financing from other sources . for domestic income tax purposes , we recognize revenue using the cost recovery method with respect to our debt purchasing business .


 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 historically , our primary sources of cash have been cash flows from operations , bank borrowings , and convertible debt and equity offerings . cash has been used for acquisitions of finance receivables , corporate acquisitions , repurchase of our common stock , repayments of bank borrowings , operating expenses , purchases of property and equipment , and working capital to support our growth . as of december 31 , 2013 , cash and cash equivalents totaled $ 162.0 million , compared to $ 32.7 million at december 31 , 2012. at december 31 , 2013 , we had no debt outstanding on the revolving portion of our credit facility which represents availability of $ 435.5 million ( subject to the borrowing base and applicable debt covenants ) . conversely , at december 31 , 2012 , we had $ 127.0 million outstanding on the floating rate term loan portion of our credit facility which represented availability of $ 273.0 million ( subject to the borrowing base and applicable debt covenants ) . we have in place forward flow commitments for the purchase of defaulted consumer receivables over the next twelve months with a maximum purchase price of $ 90.0 million as of december 31 , 2013. additionally we may enter into new or renewed flow commitments in the next twelve months and close on spot transactions in addition to the aforementioned flow agreements . we believe that funds generated from operations and from cash collections on finance receivables , together with existing cash and available borrowings under our credit facility will be sufficient to finance our operations , planned capital expenditures , the aforementioned forward flow commitments , and additional , normal-course portfolio purchasing during the next twelve months . business acquisitions or higher than normal levels of portfolio purchasing could require additional financing from other sources . for domestic income tax purposes , we recognize revenue using the cost recovery method with respect to our debt purchasing business .
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 Suspicious Activity Report : during the year ended december 31 , 2013 , pra recorded $ 2.0 million in net allowance charge reversals , compared with $ 6.6 million in net allowance charges in the year ended december 31 , 2012. our performance has been positively impacted by operational efficiencies surrounding the cash collections process , including the continued refinement of account scoring analytics as it relates to both legal and non-legal collection channels . additionally , we have continued to develop our internal legal collection staff resources , which enables us to place accounts into that channel that otherwise would have been prohibitively expensive for legal action and to collect these accounts more efficiently and profitably . fee income increased from $ 62.2 million for the year ended december 31 , 2012 to $ 71.6 million in 2013 , primarily due to an increase in revenues generated by ccb and our pgs business . the increase in revenue from ccb is due primarily to larger distributions of class action settlements in the year ended december 31 , 2013 as compared to the year ended december 31 , 2012. in particular , there was one large class action settlement which generated approximately $ 9.3 million in fee income . this was partially offset by declines in revenue at our pls and pra uk businesses . the decline from pls is due primarily to the adverse impact of the economic slowdown on automobile financing and related collateral recovery activities . the decline in fee income from pra uk is due primarily to a decline in the amount of contingent fee work provided to us by debt owners for the year ended december 31 , 2013 as compared to the year ended december 31 , 2012 . 37 a summary of how our revenue was generated during the year ended december 31 , 2013 , 2012 and 2011 is as follows : replace_table_token_13_th operating expenses were $ 437.6 million for the year ended december , 31 , 2013 , up 16.2 % as compared to the year ended december 31 , 2012 , due primarily to increases in compensation expense , legal collection costs , legal collection fees , other operating expenses and impairment of goodwill . compensation expense increased primarily as a result of larger staff sizes , as well as an increase in share-based compensation expense and incentive and other performance based compensation incurred as a result of the overall strong company performance . compensation and employee service expenses increased as total employees grew 10.0 % to 3,543 as of december 31 , 2013 from 3,221 as of december 31 , 2012 . legal collection costs were $ 83.1 million for the year ended december 31 , 2013 compared to $ 72.3 million for the year ended december 31 , 2012 , an increase of $ 10.8 million or 14.9 % . this increase was the result of an increased portfolio size as well as a refinement of our internal scoring methodology that expanded our account selections for legal action . this strategy to expand the accounts brought into the legal collection process resulted in significant initial expenses , which may drive additional future cash collections and revenue . legal collection fees increased from $ 34.4 million for the year ended december 31 , 2012 to $ 41.5 million for the year ended december 31 , 2013 , an increase of $ 7.1 million or 20.6 % . this increase was the result of an increase in cash collections from outside attorneys from $ 157.8 million in the year ended december 31 , 2012 to $ 192.4 million for the year ended december 31 , 2013 , an increase of $ 34.6 million or 21.9 % . other operating expenses increased from $ 19.7 million for the year ended december 31 , 2012 to $ 25.8 million for the year ended december 31 , 2013 , an increase of $ 6.1 million or 31.0 % . of the $ 6.1 million increase , $ 4.1 million is related to the additional expense incurred as a result of the earn-out provision of the asset purchase agreement entered into in connection with the acquisition of certain finance receivables and operating assets of national capital management ( `` ncm `` ) in 2012 and $ 0.8 million is due to an increase in insurance expenses . none of the remaining $ 1.2 million increase was attributable to any significant identifiable items . during the year ended december 31 , 2013 , we acquired finance receivables portfolios with an aggregate face value amount of $ 7.9 billion at a cost of $ 656.8 million . during the year ended december 31 , 2012 , excluding the initial investment in the pra uk portfolio , we acquired finance receivable portfolios with an aggregate face value of $ 6.2 billion at a cost of $ 538.5 million . during the year ended december 31 , 2011 , we acquired finance receivable portfolios with an aggregate face value of $ 9.8 billion at a cost of $ 408.4 million . in any period , we acquire defaulted consumer receivables that can vary dramatically in their age , type and ultimate collectability . we may pay significantly different purchase rates for purchased receivables within any period as a result of this quality fluctuation . in addition , market forces can drive pricing rates up or down in any period , irrespective of other quality fluctuations . as a result , the average purchase rate paid for any given period can fluctuate dramatically based on our particular buying activity in that period . however , regardless of the average purchase price and for similar time frames , we intend to target a similar internal rate of return , after direct expenses , in pricing our portfolio acquisitions ; therefore , the absolute rate paid is not necessarily relevant to the estimated profitability of a period 's buying . story_separator_special_tag however , regardless of the average purchase price and for similar time frames , we intend to target a similar internal rate of return , after direct expenses , in pricing our portfolio acquisitions ; therefore , the absolute rate paid is not necessarily relevant to the estimated profitability of a period 's buying . accretable yield represents the amount of income recognized on finance receivables the company can expect to generate over the remaining life of its existing portfolios based on estimated future cash flows as of the balance sheet date . additions represent the original expected accretable yield , on portfolios purchased during the period , to be earned by the company based on its proprietary buying models . net reclassifications from nonaccretable difference to accretable yield primarily result from the company 's increase in its estimate of future cash flows . increases in future cash flows may occur as portfolios age and actual cash collections exceed those originally expected . if those cash flows are determined to be incremental to the portfolio 's original forecast , future projections of cash flows are generally increased resulting in higher expected revenue and hence increases in accretable yield . during the years ended december 31 , 2012 and 2011 , the company reclassified amounts from nonaccretable difference to accretable yield due primarily to increased cash collection forecasts relating to pools acquired from 2009-2011 and 2009-2010 , respectively . when applicable , net reclassifications to nonaccretable difference from accretable yield result from the company 's decrease in its estimates of future cash flows and allowance charges that exceed the company 's increase in its estimate of future cash flows . income recognized on finance receivables , net , is shown net of changes in valuation allowances recognized under fasb asc topic 310-30 “ loans and debt securities acquired with deteriorated credit quality ” ( “ asc 310-30 ” ) , which requires that a valuation allowance be recorded for significant decreases in expected cash flows or a change in timing of cash flows which would otherwise require a reduction in the stated yield on a pool of accounts . for the year ended december 31 , 2012 , we recorded net allowance charges of $ 6.6 million , $ 8.6 million of which related to purchased bankruptcy portfolios acquired mainly in 2007 and 2008 , offset by a net reversal of $ 2.0 million on core portfolios . for the year ended december 31 , 2011 , we recorded net allowance charges of $ 10.2 million , $ 6.6 million of which related to core portfolios acquired mainly in 2005 through 2008 and $ 3.6 million of which related to purchased bankruptcy portfolios acquired mainly in 2007 through 2008. in any given period , we may be required to record valuation allowances due to pools of receivables underperforming our expectations . factors that may contribute to the recording of valuation allowances may include both internal as well as external factors . external factors which may have an impact on the collectability , and subsequently to the overall profitability , of purchased pools of defaulted consumer receivables include : new laws or regulations relating to collections , new interpretations of existing laws or regulations , and the overall condition of the economy . internal factors which may have an impact on the collectability , and subsequently the overall profitability , of purchased pools of defaulted consumer receivables would include : necessary revisions to initial and post-acquisition scoring and modeling estimates , non-optimal operational activities ( relating to the collection and movement of accounts on both our collection floor and external channels ) , and decreases in productivity related to turnover of our collection staff . fee income fee income was $ 62.2 million for the year ended december 31 , 2012 , an increase of $ 5.2 million or 9.1 % compared to fee income of $ 57.0 million for the year ended december 31 , 2011 . fee income increased primarily due to the acquisition of pra uk in the first quarter of 2012. this increase was partially offset by declines in revenue generated by both our pls and ccb businesses . the decline from pls is due primarily to the adverse impact of the economic slowdown on automobile financing and related collateral recovery activities . the decline from ccb is due primarily to larger distributions of class action settlements in the year ended december 31 , 43 2011 as compared to the year ended december 31 , 2012. we anticipate , based on available data on hand at december 31 , 2012 , that ccb 's fee income should increase in 2013. in particular , we believe there will likely be one large class action settlement which could generate approximately $ 4.0 to $ 6.0 million or more in fee income . operating expenses total operating expenses were $ 376.7 million for the year ended december 31 , 2012 , an increase of $ 94.6 million or 33.5 % compared to total operating expenses of $ 282.1 million for the year ended december 31 , 2011 . total operating expenses were 38.8 % of cash receipts for the year ended december 31 , 2012 compared with 37.0 % for the year ended december 31 , 2011 . compensation and employee services compensation and employee service expenses were $ 168.4 million for the year ended december 31 , 2012 , an increase of $ 30.2 million or 21.9 % compared to compensation and employee service expenses of $ 138.2 million for the year ended december 31 , 2011 . compensation expense increased primarily as a result of larger staff sizes , including the addition of new employees as a result of the acquisition of pra uk on january 16 , 2012 , as well as an increase in share-based compensation expense . total employees grew 22.0 % to 3,221 as of december 31 , 2012 from 2,641 as of december 31

