in addition , we generate revenues from subscription agreements for the receipt of periodic benchmark reports , digests and other publications , which are most often associated with our real estate offerings that are recognized upon delivery of such reports or data updates . fees are primarily paid in arrears after the offering is delivered . we also realize one-time fees related to customized reports , historical data sets and certain implementation and consulting services , as well as from certain offerings that are purchased on a non-renewal basis . in evaluating our financial performance , we focus on revenue and profit growth , including results accounted for under accounting principles generally accepted in the united states ( “ gaap ” ) as well as non-gaap measures , for the company as a whole and by operating segment . in addition , we focus on operating metrics , including run 42 rate , subscription sales and aggregate retention rate to manage the business . our business is not highly capital intensive and , as such , we expect to continue to convert a high percentage of our profits into excess cash in the future . our growth strategy includes : ( a ) creating broad and innovative research-driven content , ( b ) expanding our client base and deepening existing client relationships , ( c ) developing flexible and scalable technology , ( d ) expanding value-added service offerings and ( e ) executing strategic relationships and acquisitions . key financial metrics and drivers as discussed in the previous section , we utilize a portfolio of key financial metrics to manage the company , including gaap and non-gaap measures . as detailed below , we review revenues by type and by segment , or major product line . we also review expenses by activity , which provides more transparency into how resources are being deployed . in addition , we utilize operating metrics including run rate , subscription sales and aggregate retention rate , to analyze past performance and to provide insight into our latest reported portfolio of recurring business . in the discussion that follows , we provide variances excluding the impact of foreign currency exchange rate fluctuations when the impact is not considered negligible . foreign currency exchange rate fluctuations reflect the difference between the current period results as reported compared to the current period results recalculated using the foreign currency exchange rates in effect for the comparable prior period . it should be noted that while a substantial portion of our fees for index-linked investment products are invoiced in u.s. dollars , the fees are based on the investment product 's assets , of which two-thirds are invested in underlying securities that are dominated in currencies other than the u.s. dollar . the underlying impact of such will not be reflected in the variances excluding the impact of foreign currency exchange rate fluctuations . revenues our revenues are characterized by type , which broadly reflects the nature of how they are recognized or earned . our revenue types are recurring subscription , asset-based fees and non-recurring revenues . we also group our revenues by segment and provide the revenue type within each segment . see part 1 , item 1 . “ business—our operating segments ” above for additional details on the products and services that we offer . recurring subscription revenues represent fees earned from clients primarily under renewable contracts or agreements and are recognized in most cases ratably over the term of the license or service pursuant to the contract terms . the contracts state the terms under which these fees are to be calculated . the fees are recognized as we provide the product and service to the client over the license period and are generally billed in advance , prior to the license start date . when implementation services are included , we recognize revenues ratably from the date the application is put into production through the end of the license period . revenues associated with implementation services , which are allocated based on msci 's best estimated sales price for such implementation services , are recognized ratably over the useful life of those services . revenues from subscription agreements for the receipt of periodic benchmark reports , digests , and other publications , which are most often associated with our real estate offerings , are recognized upon delivery of such reports or data updates . asset-based fees are principally recognized based on the estimated aum linked to our indexes from independent third-party sources or the most recently reported information provided by the client . asset-based fees include revenues related to futures and options contracts linked to our indexes , which are primarily based on trading volumes . non-recurring revenues primarily represent fees earned on products and services where we do not have renewal contracts and primarily include revenues for providing historical data , certain implementation services and other special client requests . based on the nature of the services provided , non-recurring revenues are recognized upon delivery or over the service period . effective january 1 , 2018 , msci adopted the new revenue standard as set forth under asc subtopic 606-10 , “ revenue from contracts with customers . ” see “ — recent accounting standards updates ” below for additional information . 43 operating expenses we group our operating expenses into the following activity categories : cost of revenues ; selling and marketing ; research and development ( “ r & d ” ) ; general and administrative ( “ g & a ” ) ; amortization of intangible assets ; and depreciation and amortization of property , equipment and leasehold improvements . costs are assigned to these activity categories based on the nature of the expense or , when not directly attributable , an estimate is allocated based on the type of effort involved . story_separator_special_tag the following table presents the value of aum in etfs linked to msci indexes and the sequential change of such assets as of the end of each of the periods indicated : replace_table_token_9_th source : bloomberg and msci ( 1 ) the historical values of the assets in etfs linked to our indexes as of the last day of the month and the monthly average balance can be found under the link “ aum in etfs linked to msci indexes ” on our investor relations homepage at http : //ir.msci.com . this information is updated on or about the second u.s. business day of each month . information contained on our website is not incorporated by reference into this annual report on form 10-k or any other report filed with the sec . ( 2 ) the value of assets under management in etfs linked to msci indexes is calculated by multiplying the etf net asset value by the number of shares outstanding . ( 3 ) the aum in etfs numbers also include aum in exchange traded notes , the value of which is less than 1.0 % of the aum amounts presented . 49 for the year ended december 31 , 2017 , the average value of aum in etfs linked to msci equity indexes was $ 621.4 billion , up $ 175.0 billion , or 39.2 % , from $ 446.4 billion for the year ended december 31 , 2016. non-recurring revenues decreased 6.4 % to $ 25.1 million for the year ended december 31 , 2017 , compared to $ 26.8 million for the year ended december 31 , 2016 , primarily resulting from lower one-time sales of analytics products . the following table presents operating revenues by reportable segment and revenue type for the years indicated : replace_table_token_10_th refer to the section titled , “ segment results of operations ” for an explanation of the results . operating expenses operating expenses increased 4.9 % to $ 695.0 million for the year ended december 31 , 2017 compared to $ 662.6 million for the year ended december 31 , 2016. adjusted for the impact of foreign currency exchange rate fluctuations , operating expenses increased 5.1 % for the year ended december 31 , 2017 compared to the year ended december 31 , 2016. the following table presents operating expenses by activity for the years indicated : replace_table_token_11_th 50 cost of revenues cost of revenues for the year ended december 31 , 2017 increased 8.6 % to $ 273.9 million compared to $ 252.1 million for the year ended december 31 , 2016 , reflecting increases across all three reporting segments . the change was driven by increases in compensation and benefit costs , primarily relating to wages and salaries , severance and incentive compensation , as well as higher non-compensation information technology costs , market data costs , occupancy costs , personnel related costs and travel and entertainment costs . selling and marketing selling and marketing expenses for the year ended december 31 , 2017 increased 6.4 % to $ 177.3 million compared to $ 166.7 million for the year ended december 31 , 2016 , reflecting increases in the index and all other segments . the change was driven by an overall increase in compensation and benefit costs , relating to incentive compensation , severance , wages and salaries and benefits , as well as higher non-compensation marketing costs and travel and entertainment costs . research and development r & d expenses for the year ended december 31 , 2017 increased 0.9 % to $ 75.9 million compared to $ 75.2 million for the year ended december 31 , 2016 , reflecting higher investments in the analytics segment and esg within the all other segment , offset by decreases in the index segment . the change was driven by higher non-compensation information technology costs partially offset by lower occupancy costs . general and administrative g & a expenses for the year ended december 31 , 2017 increased 0.8 % to $ 87.9 million compared to $ 87.2 million for the year ended december 31 , 2016 , driven by higher costs in the index segment partially offset by lower costs in real estate within the all other segment . the change was driven by an increase in compensation and benefits costs , primarily relating to an increase in wages and salaries and benefits , partially offset by a decrease in severance , as well as the impact of lower non-compensation professional fees . the following table presents operating expenses using compensation and non-compensation categories , rather than using activity categories , for the years indicated : replace_table_token_12_th compensation and benefits costs are our most significant expense and typically represent more than 60 % of our operating expenses or more than 70 % of the combined total of the cost of revenues , selling and marketing , r & d and g & a expense categories . we had 3,038 employees as of december 31 , 2017 compared to 2,862 employees as of december 31 , 2016. our continued growth in emerging market centers around the world is an important factor in our ability to manage and control the growth of our compensation and benefits expenses . as of december 31 , 2017 , 59.0 % of our employees were located in emerging market centers compared to 56.2 % of our employees as of december 31 , 2016 . 51 compensation and benefits costs for the year ended december 31 , 2017 increased 6.4 % to $ 440.9 million compared to $ 414.3 million for the year ended december 31 , 2016 , primarily driven by increases in wages and salaries , incentive compensation , severance and benefits . non-compensation expenses for the year ended december 31 , 2017 increased 4.3 % to $ 174.1 million compared to $ 166.9 million for the year ended december 31 , 2016 , primarily driven by higher information technology

cash dividends on september 17 , 2014 , our board of directors approved a plan to initiate a regular quarterly cash dividend to our shareholders . on october 30 , 2014 , we began paying regular quarterly cash dividends and have paid such dividends each quarter thereafter . on january 30 , 2018 , the board of directors declared a quarterly dividend of $ 0.38 per share of common stock to be paid on march 15 , 2018 to shareholders of record as of the close of trading on february 16 , 2018. cash flows the following table presents the company 's cash and cash equivalents as of the dates indicated : as of december 31 , december 31 , 2017 2016 ( in thousands ) cash and cash equivalents $ 889,502 $ 791,834 the following table presents the breakdown of the company 's cash flows for the periods indicated : 71 replace_table_token_35_th cash and cash equivalents cash and cash equivalents were $ 889.5 million and $ 791.8 million as of december 31 , 2017 and 2016 , respectively . msci seeks to maintain minimum cash balances globally of approximately $ 200.0 million to $ 250.0 million for general operating purposes . as of december 31 , 2017 and 2016 , $ 503.0 million and $ 208.2 million , respectively , of the cash and cash equivalents were held by foreign subsidiaries . as a result of tax reform , msci can now more efficiently access a significant portion of its cash held outside of the u.s. in the short-term without being subject to u.s. income taxes . repatriation of some foreign cash may be subject to certain withholding taxes in local jurisdictions and other distribution restrictions . the increase in cash and cash equivalents held by foreign subsidiaries primarily reflects ongoing efforts to better align our tax profile with our global operating footprint . the global cash and cash equivalent balances that are maintained will be available to meet our global needs whether for general corporate purpose or other needs , including acquisitions or expansion of our products .


 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 dividends on september 17 , 2014 , our board of directors approved a plan to initiate a regular quarterly cash dividend to our shareholders . on october 30 , 2014 , we began paying regular quarterly cash dividends and have paid such dividends each quarter thereafter . on january 30 , 2018 , the board of directors declared a quarterly dividend of $ 0.38 per share of common stock to be paid on march 15 , 2018 to shareholders of record as of the close of trading on february 16 , 2018. cash flows the following table presents the company 's cash and cash equivalents as of the dates indicated : as of december 31 , december 31 , 2017 2016 ( in thousands ) cash and cash equivalents $ 889,502 $ 791,834 the following table presents the breakdown of the company 's cash flows for the periods indicated : 71 replace_table_token_35_th cash and cash equivalents cash and cash equivalents were $ 889.5 million and $ 791.8 million as of december 31 , 2017 and 2016 , respectively . msci seeks to maintain minimum cash balances globally of approximately $ 200.0 million to $ 250.0 million for general operating purposes . as of december 31 , 2017 and 2016 , $ 503.0 million and $ 208.2 million , respectively , of the cash and cash equivalents were held by foreign subsidiaries . as a result of tax reform , msci can now more efficiently access a significant portion of its cash held outside of the u.s. in the short-term without being subject to u.s. income taxes . repatriation of some foreign cash may be subject to certain withholding taxes in local jurisdictions and other distribution restrictions . the increase in cash and cash equivalents held by foreign subsidiaries primarily reflects ongoing efforts to better align our tax profile with our global operating footprint . the global cash and cash equivalent balances that are maintained will be available to meet our global needs whether for general corporate purpose or other needs , including acquisitions or expansion of our products .
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 Suspicious Activity Report : in addition , we generate revenues from subscription agreements for the receipt of periodic benchmark reports , digests and other publications , which are most often associated with our real estate offerings that are recognized upon delivery of such reports or data updates . fees are primarily paid in arrears after the offering is delivered . we also realize one-time fees related to customized reports , historical data sets and certain implementation and consulting services , as well as from certain offerings that are purchased on a non-renewal basis . in evaluating our financial performance , we focus on revenue and profit growth , including results accounted for under accounting principles generally accepted in the united states ( “ gaap ” ) as well as non-gaap measures , for the company as a whole and by operating segment . in addition , we focus on operating metrics , including run 42 rate , subscription sales and aggregate retention rate to manage the business . our business is not highly capital intensive and , as such , we expect to continue to convert a high percentage of our profits into excess cash in the future . our growth strategy includes : ( a ) creating broad and innovative research-driven content , ( b ) expanding our client base and deepening existing client relationships , ( c ) developing flexible and scalable technology , ( d ) expanding value-added service offerings and ( e ) executing strategic relationships and acquisitions . key financial metrics and drivers as discussed in the previous section , we utilize a portfolio of key financial metrics to manage the company , including gaap and non-gaap measures . as detailed below , we review revenues by type and by segment , or major product line . we also review expenses by activity , which provides more transparency into how resources are being deployed . in addition , we utilize operating metrics including run rate , subscription sales and aggregate retention rate , to analyze past performance and to provide insight into our latest reported portfolio of recurring business . in the discussion that follows , we provide variances excluding the impact of foreign currency exchange rate fluctuations when the impact is not considered negligible . foreign currency exchange rate fluctuations reflect the difference between the current period results as reported compared to the current period results recalculated using the foreign currency exchange rates in effect for the comparable prior period . it should be noted that while a substantial portion of our fees for index-linked investment products are invoiced in u.s. dollars , the fees are based on the investment product 's assets , of which two-thirds are invested in underlying securities that are dominated in currencies other than the u.s. dollar . the underlying impact of such will not be reflected in the variances excluding the impact of foreign currency exchange rate fluctuations . revenues our revenues are characterized by type , which broadly reflects the nature of how they are recognized or earned . our revenue types are recurring subscription , asset-based fees and non-recurring revenues . we also group our revenues by segment and provide the revenue type within each segment . see part 1 , item 1 . “ business—our operating segments ” above for additional details on the products and services that we offer . recurring subscription revenues represent fees earned from clients primarily under renewable contracts or agreements and are recognized in most cases ratably over the term of the license or service pursuant to the contract terms . the contracts state the terms under which these fees are to be calculated . the fees are recognized as we provide the product and service to the client over the license period and are generally billed in advance , prior to the license start date . when implementation services are included , we recognize revenues ratably from the date the application is put into production through the end of the license period . revenues associated with implementation services , which are allocated based on msci 's best estimated sales price for such implementation services , are recognized ratably over the useful life of those services . revenues from subscription agreements for the receipt of periodic benchmark reports , digests , and other publications , which are most often associated with our real estate offerings , are recognized upon delivery of such reports or data updates . asset-based fees are principally recognized based on the estimated aum linked to our indexes from independent third-party sources or the most recently reported information provided by the client . asset-based fees include revenues related to futures and options contracts linked to our indexes , which are primarily based on trading volumes . non-recurring revenues primarily represent fees earned on products and services where we do not have renewal contracts and primarily include revenues for providing historical data , certain implementation services and other special client requests . based on the nature of the services provided , non-recurring revenues are recognized upon delivery or over the service period . effective january 1 , 2018 , msci adopted the new revenue standard as set forth under asc subtopic 606-10 , “ revenue from contracts with customers . ” see “ — recent accounting standards updates ” below for additional information . 43 operating expenses we group our operating expenses into the following activity categories : cost of revenues ; selling and marketing ; research and development ( “ r & d ” ) ; general and administrative ( “ g & a ” ) ; amortization of intangible assets ; and depreciation and amortization of property , equipment and leasehold improvements . costs are assigned to these activity categories based on the nature of the expense or , when not directly attributable , an estimate is allocated based on the type of effort involved . story_separator_special_tag the following table presents the value of aum in etfs linked to msci indexes and the sequential change of such assets as of the end of each of the periods indicated : replace_table_token_9_th source : bloomberg and msci ( 1 ) the historical values of the assets in etfs linked to our indexes as of the last day of the month and the monthly average balance can be found under the link “ aum in etfs linked to msci indexes ” on our investor relations homepage at http : //ir.msci.com . this information is updated on or about the second u.s. business day of each month . information contained on our website is not incorporated by reference into this annual report on form 10-k or any other report filed with the sec . ( 2 ) the value of assets under management in etfs linked to msci indexes is calculated by multiplying the etf net asset value by the number of shares outstanding . ( 3 ) the aum in etfs numbers also include aum in exchange traded notes , the value of which is less than 1.0 % of the aum amounts presented . 49 for the year ended december 31 , 2017 , the average value of aum in etfs linked to msci equity indexes was $ 621.4 billion , up $ 175.0 billion , or 39.2 % , from $ 446.4 billion for the year ended december 31 , 2016. non-recurring revenues decreased 6.4 % to $ 25.1 million for the year ended december 31 , 2017 , compared to $ 26.8 million for the year ended december 31 , 2016 , primarily resulting from lower one-time sales of analytics products . the following table presents operating revenues by reportable segment and revenue type for the years indicated : replace_table_token_10_th refer to the section titled , “ segment results of operations ” for an explanation of the results . operating expenses operating expenses increased 4.9 % to $ 695.0 million for the year ended december 31 , 2017 compared to $ 662.6 million for the year ended december 31 , 2016. adjusted for the impact of foreign currency exchange rate fluctuations , operating expenses increased 5.1 % for the year ended december 31 , 2017 compared to the year ended december 31 , 2016. the following table presents operating expenses by activity for the years indicated : replace_table_token_11_th 50 cost of revenues cost of revenues for the year ended december 31 , 2017 increased 8.6 % to $ 273.9 million compared to $ 252.1 million for the year ended december 31 , 2016 , reflecting increases across all three reporting segments . the change was driven by increases in compensation and benefit costs , primarily relating to wages and salaries , severance and incentive compensation , as well as higher non-compensation information technology costs , market data costs , occupancy costs , personnel related costs and travel and entertainment costs . selling and marketing selling and marketing expenses for the year ended december 31 , 2017 increased 6.4 % to $ 177.3 million compared to $ 166.7 million for the year ended december 31 , 2016 , reflecting increases in the index and all other segments . the change was driven by an overall increase in compensation and benefit costs , relating to incentive compensation , severance , wages and salaries and benefits , as well as higher non-compensation marketing costs and travel and entertainment costs . research and development r & d expenses for the year ended december 31 , 2017 increased 0.9 % to $ 75.9 million compared to $ 75.2 million for the year ended december 31 , 2016 , reflecting higher investments in the analytics segment and esg within the all other segment , offset by decreases in the index segment . the change was driven by higher non-compensation information technology costs partially offset by lower occupancy costs . general and administrative g & a expenses for the year ended december 31 , 2017 increased 0.8 % to $ 87.9 million compared to $ 87.2 million for the year ended december 31 , 2016 , driven by higher costs in the index segment partially offset by lower costs in real estate within the all other segment . the change was driven by an increase in compensation and benefits costs , primarily relating to an increase in wages and salaries and benefits , partially offset by a decrease in severance , as well as the impact of lower non-compensation professional fees . the following table presents operating expenses using compensation and non-compensation categories , rather than using activity categories , for the years indicated : replace_table_token_12_th compensation and benefits costs are our most significant expense and typically represent more than 60 % of our operating expenses or more than 70 % of the combined total of the cost of revenues , selling and marketing , r & d and g & a expense categories . we had 3,038 employees as of december 31 , 2017 compared to 2,862 employees as of december 31 , 2016. our continued growth in emerging market centers around the world is an important factor in our ability to manage and control the growth of our compensation and benefits expenses . as of december 31 , 2017 , 59.0 % of our employees were located in emerging market centers compared to 56.2 % of our employees as of december 31 , 2016 . 51 compensation and benefits costs for the year ended december 31 , 2017 increased 6.4 % to $ 440.9 million compared to $ 414.3 million for the year ended december 31 , 2016 , primarily driven by increases in wages and salaries , incentive compensation , severance and benefits . non-compensation expenses for the year ended december 31 , 2017 increased 4.3 % to $ 174.1 million compared to $ 166.9 million for the year ended december 31 , 2016 , primarily driven by higher information technology

