reconciliations of net income to economic net income and cash flow from operations to ebitda are included on pages 27 and 29 , respectively . 17 for the year ended december 31 , 2012 our assets under management increased 32 % to $ 431.8 billion . the increase was the result of $ 47.5 billion from investment performance , $ 30.1 billion from organic growth from net client cash flows and $ 28.0 billion from our new investments in veritable and yacktman . the table below shows our financial highlights for each of the past three years : replace_table_token_3_th ( 1 ) ebitda , including a reconciliation to cash flow from operations , is discussed in greater detail in `` supplemental liquidity measure `` on page 28 . ( 2 ) economic net income and economic earnings per share , including a reconciliation of economic net income to net income , are discussed in `` supplemental performance measures `` on page 26. diversification of assets under management the following table provides information regarding the composition of our assets under management : replace_table_token_4_th ( 1 ) the equity asset class includes equity , balanced and asset allocation products . ( 2 ) the alternative asset class includes private equity , multi-strategy , market neutral equity and hedge products . ( 3 ) our affiliates sponsor money market funds with fund assets representing less than 1 % of our assets under management . ( 4 ) investments in sovereign and non-sovereign debt of european countries represent less than 1 % of our assets under management . 18 ( 5 ) the geography of a particular investment product describes the general location of its investment holdings . during the year ended december 31 , 2012 , on an asset class basis , we experienced organic growth from net client cash flows in our alternative ( $ 18.8 billion ) and equity asset classes ( $ 8.5 billion ) . on a geographic basis , our global products benefited from net client cash flows of $ 23.8 billion and the domestic and emerging markets products benefited from net client cash flows of $ 3.5 billion and $ 2.9 billion , respectively . strong investment performance across all geographic areas and in the alternative and equity asset classes also contributed to growth in 2012. during the year ended december 31 , 2011 , we experienced strong organic growth from net client cash flows in our alternative ( $ 12.8 billion ) and equity asset classes ( $ 7.9 billion ) . our global products benefited from net client cash flows of $ 14.7 billion and the emerging markets products benefited from net client cash flows of $ 6.7 billion , partially offset by negative investment performance across all geographic regions . assets under management by operating segment the following tables present a rollforward of our assets under management by operating segment ( which are also referred to as distribution channels in this annual report on form 10-k ) . 19 statement of changes replace_table_token_5_th ( 1 ) other includes assets under management attributable to affiliate product transitions , new investment client transitions and transfers of our interests in certain affiliated investment management firms , the financial effects of which are not significant to our ongoing results . as shown in the assets under management table above , client cash inflows totaled $ 89.5 billion while client cash outflows totaled $ 59.4 billion for the year ended december 31 , 2012. the net flows for the year ended december 31 , 2012 occurred across a broad range of product offerings in each of our distribution channels , with no individual cash inflow or outflow having a significant impact on our revenue or expenses . the operating segment analysis presented in the following table is based on average assets under management . for the mutual fund distribution channel , average assets under management represent an average of the daily net assets under management . for the institutional and high net worth distribution channels , average assets under management reflect the billing patterns of particular client accounts . for example , assets under management for an account that bills in advance is presented in the table on the basis of beginning of period assets under management while an account that bills in arrears is reflected on the basis of end of period assets under management . assets under management attributable to any investment in new affiliates are included on a weighted average basis for the period from the closing date of the respective investment . we believe that this analysis more closely correlates 20 to the billing cycle of each distribution channel and , as such , provides a more meaningful relationship to revenue . replace_table_token_6_th ( 1 ) in 2010 , 2011 and 2012 , revenue attributable to clients domiciled outside the u.s. was approximately 33 % , 39 % and 41 % of total revenue , respectively . ( 2 ) in 2011 and 2012 , we adjusted our estimate of contingent payment obligations . in 2011 , we recorded a gain of $ 4.8 million ( $ 3.1 million of which was attributable to the controlling interest ) , of which $ 4.6 million and $ 0.2 million was allocated to our institutional and mutual fund channels , respectively . in 2012 , we recognized a gain totaling $ 53.8 million ( $ 35.8 million of which was attributable to the controlling interest ) , of which $ 20.9 million , $ 32.5 million and $ 0.4 million was allocated to our institutional , mutual fund and high net worth channels , respectively . ( 3 ) during 2011 and 2012 , we recognized impairments on an indefinite-lived intangible asset at one of our affiliates of $ 9.2 million and $ 102.2 million , respectively . story_separator_special_tag we add back non-cash expenses relating to certain transfers of equity between affiliate management partners when these transfers have no dilutive effect to shareholders . economic earnings per share represents economic net income divided by the adjusted diluted average shares outstanding , which measures the potential share issuance from our senior convertible securities and junior convertible securities ( each further described in liquidity and capital resources ) using a `` treasury stock `` method . under this method , only the net number of shares of common stock 26 equal to the value of these securities in excess of par , if any , are deemed to be outstanding . we believe the inclusion of net shares under a treasury stock method best reflects the benefit of the increase in available capital resources ( which could be used to repurchase shares of common stock ) that occurs when these securities are converted and we are relieved of our debt obligation . this method does not take into account any increase or decrease in our cost of capital in an assumed conversion . the following table provides a reconciliation of net income ( controlling interest ) to economic net income : replace_table_token_11_th ( 1 ) for our equity method affiliates , we do not separately report affiliate revenue or expenses ( including intangible amortization ) in our income statement . our share of these investments ' amortization is reported in income from equity method investments . our reported intangible amortization includes amortization attributable to our non-controlling interests , amounts not added back to net income ( controlling interest ) to measure our economic net income . reported intangible amortization includes a $ 9.2 million and $ 102.2 million expense in 2011 and 2012 , respectively , associated with the impairment of an indefinite-lived intangible asset at one of our affiliates . the following table summarizes the intangible amortization and impairments shown above : replace_table_token_12_th ( 2 ) as described in note ( 1 ) above , we recognized impairments of certain of our indefinite-lived intangible assets during 2011 and 2012. in addition , we recorded a 2.0 % reduction in the united kingdom tax rate . together , the tax effect of these items resulted in an $ 8.7 and $ 43.7 million decrease in our intangible-related deferred taxes for 2011 and 2012 , respectively . ( 3 ) our reported imputed interest expense and contingent payment arrangements , $ 24.9 million , $ 27.3 million and $ ( 26.1 ) million for 2010 , 2011 and 2012 , respectively , includes $ 3.9 million , 27 $ 4.3 million and $ ( 14.1 ) million of imputed interest attributable to our non-controlling interests , amounts not added back to net income ( controlling interest ) to measure our economic net income . story_separator_special_tag up to $ 75.0 million and $ 250.0 million , respectively . the credit facility is unsecured and contains financial covenants with respect to leverage and interest coverage , as well as customary affirmative and negative covenants , including limitations on indebtedness , liens , cash dividends , asset dispositions and fundamental corporate changes . senior notes at december 31 , 2012 , we have two senior notes outstanding . the principal terms of these notes are summarized below . replace_table_token_16_th we used the net proceeds from both the 2022 senior notes and the 2042 senior notes to repay outstanding indebtedness under our revolver . convertible securities at december 31 , 2012 , we have one senior convertible security outstanding ( `` 2008 senior convertible notes `` ) and two junior convertible trust preferred securities outstanding , one issued in 2006 30 ( the `` 2006 junior convertible trust preferred securities `` ) and a second issued in 2007 ( the `` 2007 junior convertible trust preferred securities `` ) . the principal terms of these securities are summarized below . replace_table_token_17_th ( 1 ) the carrying value is accreted to the principal amount at maturity over an expected life of five years for the 2008 senior convertible notes and 30 years for each of the junior convertible trust preferred securities . ( 2 ) these convertible securities are considered contingent payment debt instruments under federal income tax regulations , which require us to deduct interest in an amount greater than our reported interest expense . the 2008 senior convertible notes are convertible into a defined number of shares of our common stock upon the occurrence of certain events . upon conversion , we may elect to pay or deliver cash , shares of common stock , or some combination thereof . the holders of the 2008 senior convertible notes may put these securities to us in august of 2013 , 2018 , 2023 , 2028 and 2033. we may call the notes for cash at any time on or after august 15 , 2013. should either of these events occur , we currently intend to satisfy our obligations with borrowings under our credit facility . both the 2006 and 2007 junior convertible trust preferred securities are convertible , at any time , into a defined number of shares . upon conversion , holders will receive cash or shares of our common stock , or a combination thereof . we can call the 2006 junior convertible trust preferred securities if the closing price of our common stock exceeds $ 195 per share for a specified period of time . we can call the 2007 junior convertible trust preferred securities if the closing price of our common stock exceeds $ 260 per share for a specified period of time . holders of the 2006 and 2007 junior convertible trust preferred securities have no rights to put these securities to us . derivative instruments from time to time , we seek to offset our exposure to changing interest rates under our debt financing arrangements by entering into interest rate hedging contracts . these instruments are designated as cash flow

liquidity and capital resources the following table summarizes certain key financial data relating to our liquidity and capital resources : replace_table_token_13_th ( 1 ) the definition of ebitda is presented below under `` supplemental liquidity measure . '' we view our ratio of debt to ebitda ( our `` internal leverage ratio '' ) as an important gauge of our ability to service debt , make new investments and access additional capital . consistent with industry practice , we do not consider junior convertible trust preferred securities as debt for the purpose of determining our internal leverage ratio . we also view our leverage on a `` net debt '' basis by deducting from our debt balance holding company cash . at december 31 , 2012 , our internal leverage ratio was 1.7:1. under the terms of our credit facility we are required to meet two financial ratio covenants . the first of these covenants is a maximum ratio of debt to ebitda ( the `` bank leverage ratio '' ) of 3.0. the calculation of our bank leverage ratio is generally consistent with our internal leverage ratio approach . the second covenant is a minimum ebitda to cash interest expense ratio of 3.0 ( our `` bank interest coverage ratio '' ) . for purposes of calculating these ratios , share-based compensation expense is added back to ebitda . as of december 31 , 2012 , our actual bank leverage and bank interest coverage ratios were 1.9 and 8.2 , respectively , and we were in compliance with all terms of our credit facility . we have $ 750.0 million of remaining capacity under our credit facility , and could borrow substantially all such capacity and remain in compliance with our credit facility . we are rated bbb- by both standard & poor 's and fitch rating agencies .


 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 the following table summarizes certain key financial data relating to our liquidity and capital resources : replace_table_token_13_th ( 1 ) the definition of ebitda is presented below under `` supplemental liquidity measure . '' we view our ratio of debt to ebitda ( our `` internal leverage ratio '' ) as an important gauge of our ability to service debt , make new investments and access additional capital . consistent with industry practice , we do not consider junior convertible trust preferred securities as debt for the purpose of determining our internal leverage ratio . we also view our leverage on a `` net debt '' basis by deducting from our debt balance holding company cash . at december 31 , 2012 , our internal leverage ratio was 1.7:1. under the terms of our credit facility we are required to meet two financial ratio covenants . the first of these covenants is a maximum ratio of debt to ebitda ( the `` bank leverage ratio '' ) of 3.0. the calculation of our bank leverage ratio is generally consistent with our internal leverage ratio approach . the second covenant is a minimum ebitda to cash interest expense ratio of 3.0 ( our `` bank interest coverage ratio '' ) . for purposes of calculating these ratios , share-based compensation expense is added back to ebitda . as of december 31 , 2012 , our actual bank leverage and bank interest coverage ratios were 1.9 and 8.2 , respectively , and we were in compliance with all terms of our credit facility . we have $ 750.0 million of remaining capacity under our credit facility , and could borrow substantially all such capacity and remain in compliance with our credit facility . we are rated bbb- by both standard & poor 's and fitch rating agencies .
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 Suspicious Activity Report : reconciliations of net income to economic net income and cash flow from operations to ebitda are included on pages 27 and 29 , respectively . 17 for the year ended december 31 , 2012 our assets under management increased 32 % to $ 431.8 billion . the increase was the result of $ 47.5 billion from investment performance , $ 30.1 billion from organic growth from net client cash flows and $ 28.0 billion from our new investments in veritable and yacktman . the table below shows our financial highlights for each of the past three years : replace_table_token_3_th ( 1 ) ebitda , including a reconciliation to cash flow from operations , is discussed in greater detail in `` supplemental liquidity measure `` on page 28 . ( 2 ) economic net income and economic earnings per share , including a reconciliation of economic net income to net income , are discussed in `` supplemental performance measures `` on page 26. diversification of assets under management the following table provides information regarding the composition of our assets under management : replace_table_token_4_th ( 1 ) the equity asset class includes equity , balanced and asset allocation products . ( 2 ) the alternative asset class includes private equity , multi-strategy , market neutral equity and hedge products . ( 3 ) our affiliates sponsor money market funds with fund assets representing less than 1 % of our assets under management . ( 4 ) investments in sovereign and non-sovereign debt of european countries represent less than 1 % of our assets under management . 18 ( 5 ) the geography of a particular investment product describes the general location of its investment holdings . during the year ended december 31 , 2012 , on an asset class basis , we experienced organic growth from net client cash flows in our alternative ( $ 18.8 billion ) and equity asset classes ( $ 8.5 billion ) . on a geographic basis , our global products benefited from net client cash flows of $ 23.8 billion and the domestic and emerging markets products benefited from net client cash flows of $ 3.5 billion and $ 2.9 billion , respectively . strong investment performance across all geographic areas and in the alternative and equity asset classes also contributed to growth in 2012. during the year ended december 31 , 2011 , we experienced strong organic growth from net client cash flows in our alternative ( $ 12.8 billion ) and equity asset classes ( $ 7.9 billion ) . our global products benefited from net client cash flows of $ 14.7 billion and the emerging markets products benefited from net client cash flows of $ 6.7 billion , partially offset by negative investment performance across all geographic regions . assets under management by operating segment the following tables present a rollforward of our assets under management by operating segment ( which are also referred to as distribution channels in this annual report on form 10-k ) . 19 statement of changes replace_table_token_5_th ( 1 ) other includes assets under management attributable to affiliate product transitions , new investment client transitions and transfers of our interests in certain affiliated investment management firms , the financial effects of which are not significant to our ongoing results . as shown in the assets under management table above , client cash inflows totaled $ 89.5 billion while client cash outflows totaled $ 59.4 billion for the year ended december 31 , 2012. the net flows for the year ended december 31 , 2012 occurred across a broad range of product offerings in each of our distribution channels , with no individual cash inflow or outflow having a significant impact on our revenue or expenses . the operating segment analysis presented in the following table is based on average assets under management . for the mutual fund distribution channel , average assets under management represent an average of the daily net assets under management . for the institutional and high net worth distribution channels , average assets under management reflect the billing patterns of particular client accounts . for example , assets under management for an account that bills in advance is presented in the table on the basis of beginning of period assets under management while an account that bills in arrears is reflected on the basis of end of period assets under management . assets under management attributable to any investment in new affiliates are included on a weighted average basis for the period from the closing date of the respective investment . we believe that this analysis more closely correlates 20 to the billing cycle of each distribution channel and , as such , provides a more meaningful relationship to revenue . replace_table_token_6_th ( 1 ) in 2010 , 2011 and 2012 , revenue attributable to clients domiciled outside the u.s. was approximately 33 % , 39 % and 41 % of total revenue , respectively . ( 2 ) in 2011 and 2012 , we adjusted our estimate of contingent payment obligations . in 2011 , we recorded a gain of $ 4.8 million ( $ 3.1 million of which was attributable to the controlling interest ) , of which $ 4.6 million and $ 0.2 million was allocated to our institutional and mutual fund channels , respectively . in 2012 , we recognized a gain totaling $ 53.8 million ( $ 35.8 million of which was attributable to the controlling interest ) , of which $ 20.9 million , $ 32.5 million and $ 0.4 million was allocated to our institutional , mutual fund and high net worth channels , respectively . ( 3 ) during 2011 and 2012 , we recognized impairments on an indefinite-lived intangible asset at one of our affiliates of $ 9.2 million and $ 102.2 million , respectively . story_separator_special_tag we add back non-cash expenses relating to certain transfers of equity between affiliate management partners when these transfers have no dilutive effect to shareholders . economic earnings per share represents economic net income divided by the adjusted diluted average shares outstanding , which measures the potential share issuance from our senior convertible securities and junior convertible securities ( each further described in liquidity and capital resources ) using a `` treasury stock `` method . under this method , only the net number of shares of common stock 26 equal to the value of these securities in excess of par , if any , are deemed to be outstanding . we believe the inclusion of net shares under a treasury stock method best reflects the benefit of the increase in available capital resources ( which could be used to repurchase shares of common stock ) that occurs when these securities are converted and we are relieved of our debt obligation . this method does not take into account any increase or decrease in our cost of capital in an assumed conversion . the following table provides a reconciliation of net income ( controlling interest ) to economic net income : replace_table_token_11_th ( 1 ) for our equity method affiliates , we do not separately report affiliate revenue or expenses ( including intangible amortization ) in our income statement . our share of these investments ' amortization is reported in income from equity method investments . our reported intangible amortization includes amortization attributable to our non-controlling interests , amounts not added back to net income ( controlling interest ) to measure our economic net income . reported intangible amortization includes a $ 9.2 million and $ 102.2 million expense in 2011 and 2012 , respectively , associated with the impairment of an indefinite-lived intangible asset at one of our affiliates . the following table summarizes the intangible amortization and impairments shown above : replace_table_token_12_th ( 2 ) as described in note ( 1 ) above , we recognized impairments of certain of our indefinite-lived intangible assets during 2011 and 2012. in addition , we recorded a 2.0 % reduction in the united kingdom tax rate . together , the tax effect of these items resulted in an $ 8.7 and $ 43.7 million decrease in our intangible-related deferred taxes for 2011 and 2012 , respectively . ( 3 ) our reported imputed interest expense and contingent payment arrangements , $ 24.9 million , $ 27.3 million and $ ( 26.1 ) million for 2010 , 2011 and 2012 , respectively , includes $ 3.9 million , 27 $ 4.3 million and $ ( 14.1 ) million of imputed interest attributable to our non-controlling interests , amounts not added back to net income ( controlling interest ) to measure our economic net income . story_separator_special_tag up to $ 75.0 million and $ 250.0 million , respectively . the credit facility is unsecured and contains financial covenants with respect to leverage and interest coverage , as well as customary affirmative and negative covenants , including limitations on indebtedness , liens , cash dividends , asset dispositions and fundamental corporate changes . senior notes at december 31 , 2012 , we have two senior notes outstanding . the principal terms of these notes are summarized below . replace_table_token_16_th we used the net proceeds from both the 2022 senior notes and the 2042 senior notes to repay outstanding indebtedness under our revolver . convertible securities at december 31 , 2012 , we have one senior convertible security outstanding ( `` 2008 senior convertible notes `` ) and two junior convertible trust preferred securities outstanding , one issued in 2006 30 ( the `` 2006 junior convertible trust preferred securities `` ) and a second issued in 2007 ( the `` 2007 junior convertible trust preferred securities `` ) . the principal terms of these securities are summarized below . replace_table_token_17_th ( 1 ) the carrying value is accreted to the principal amount at maturity over an expected life of five years for the 2008 senior convertible notes and 30 years for each of the junior convertible trust preferred securities . ( 2 ) these convertible securities are considered contingent payment debt instruments under federal income tax regulations , which require us to deduct interest in an amount greater than our reported interest expense . the 2008 senior convertible notes are convertible into a defined number of shares of our common stock upon the occurrence of certain events . upon conversion , we may elect to pay or deliver cash , shares of common stock , or some combination thereof . the holders of the 2008 senior convertible notes may put these securities to us in august of 2013 , 2018 , 2023 , 2028 and 2033. we may call the notes for cash at any time on or after august 15 , 2013. should either of these events occur , we currently intend to satisfy our obligations with borrowings under our credit facility . both the 2006 and 2007 junior convertible trust preferred securities are convertible , at any time , into a defined number of shares . upon conversion , holders will receive cash or shares of our common stock , or a combination thereof . we can call the 2006 junior convertible trust preferred securities if the closing price of our common stock exceeds $ 195 per share for a specified period of time . we can call the 2007 junior convertible trust preferred securities if the closing price of our common stock exceeds $ 260 per share for a specified period of time . holders of the 2006 and 2007 junior convertible trust preferred securities have no rights to put these securities to us . derivative instruments from time to time , we seek to offset our exposure to changing interest rates under our debt financing arrangements by entering into interest rate hedging contracts . these instruments are designated as cash flow

