as we evolve our focus from our dvd to streaming service , we will be slightly changing how we treat our domestic subscribers so that they are in line with our international subscribers . beginning in the first quarter of 2012 , domestic members who are on payment holds will no longer be counted as unique subscribers nor will they be included in our subscription metrics . members who cancel mid-period will continue to receive service until the end of the period and will accordingly be counted as subscribers and in our subscription metrics until the end of the period . these changes may impact our subscription metrics but we do not expect such impacts to be material . there is no effect on revenue from these changes . the following represents our consolidated performance highlights for 2011 , 2010 and 2009 : replace_table_token_7_th ( 3 ) see liquidity and capital resources for a definition of free cash flow and a reconciliation of free cash flow to net cash provided by operating activities. 24 due to the announcement of changes to our domestic plan offerings , pricing , and branding in the third quarter of 2011 , we experienced an increase in the number of subscriber cancellations , resulting in a net loss of unique domestic subscribers in the third quarter of 2011. however , unique domestic subscribers returned to growth in the fourth quarter of 2011 driven by the continued popularity of domestic streaming subscriptions . the subscriber cancellations in the second half of 2011 , coupled with slower growth in the number of new subscribers joining our service , resulted in a 32.3 % decrease in unique domestic net subscriber additions for the year ended december 31 , 2011 as compared to the year ended december 31 , 2010. the year-over-year increase in ending unique domestic subscribers was the primary driver in the 48.2 % increase in consolidated revenues for the year ended december 31 , 2011 as compared to the year ended december 31 , 2010. domestic streaming subscriptions increased in the fourth quarter of 2011 as compared to the third quarter of 2011 when we first began tracking such subscriptions separately . due to strength in both acquisitions and retention , we expect continued growth in this segment . our contribution margin target for domestic streaming is 11 % for the first quarter of 2012 with further margin expansion over the next twelve months . in 2011 , our international streaming segment reported a contribution loss of $ 103.1 million and we expect that our expansion to the uk and ireland in january 2012 will result in further contribution losses as our investments to build our business there , especially our investments in content licensing , will exceed the revenues we are likely to generate . dvd subscriptions , which we also began tracking separately in the second half of 2011 , are declining as subscribers migrate from hybrid plans towards lower priced streaming only subscription plans . we expect continued decreases in dvd subscriptions which will reduce domestic and consolidated revenues by approximately the same amount of the increase expected from streaming subscription growth . domestic dvd contribution margins are expected to remain healthy due to the primarily variable cost model and mature state of the business . consolidated revenues for the first quarter of 2012 are expected to be flat as compared to the fourth quarter of 2011 and we may experience slower growth in consolidated revenue for the year ending december 31 , 2012 as compared to the year ending december 31 , 2011. as a result of the negative impact on revenue growth associated with a decline in domestic dvd subscriptions coupled with the increasing investment in our international streaming segment , we expect to incur consolidated net losses for the year ended december 31 , 2012. free cash flow for the year ended december 31 , 2011 increased as compared to the year ended december 31 , 2010 to $ 186.6 million . free cash flow was $ 39.6 million lower than net income of $ 226.1 million , largely due to the excess streaming and dvd content payments over expense . the excess streaming and dvd content payments over expense will continue to fluctuate over time based on new content licenses domestically and internationally . we expect that free cash flow in future periods will be negatively impacted by our expected consolidated net losses and that we may use cash in 2012. as a result of the expected net losses and potential use of cash in 2012 , we decided to strengthen our balance sheet by raising $ 400 million of additional capital . in november 2011 , we issued $ 200.0 million of our zero coupon senior convertible notes due in 2018 ( the convertible notes ) and raised an additional $ 200.0 million through a public offering of common stock . 25 results of operations the following table sets forth , for the periods presented , the line items in our consolidated statements of operations as a percentage of total revenues . the information contained in the table below should be read in conjunction with the financial statements and notes thereto included in item 8 , financial statements and supplementary data of this annual report on form 10-k. replace_table_token_8_th revenues we derive our revenues from monthly subscription fees and recognize subscription revenues ratably over each subscriber 's monthly subscription period . we currently generate substantially all of our revenues in the united states . in the domestic streaming segment , we derive revenues from services consisting solely of streaming content offered through a subscription plan priced at $ 7.99 per month . in the domestic dvd segment , we derive revenues from our dvds-by-mail subscription services . story_separator_special_tag the payment terms for these license fees may extend over the term of the license agreements , which typically range from six months to five years . license 34 fee obligations with payment terms that are due beyond one year are classified on the consolidated balance sheets as non-current content liabilities. minimum commitments for licenses and known titles that do not meet the criteria for asset recognition in the content library are included in note 5 of item 8 , financial statements and supplementary data . the following tables reconcile net cash provided by operating activities , a gaap financial measure , to free cash flow , a non-gaap financial measure . replace_table_token_25_th free cash flow for the year ended december 31 , 2011 increased $ 55.5 million primarily due to an increase of $ 98.9 million in net income as adjusted for the increase in non-cash stock based compensation of $ 33.6 million and decreased tax prepayments of $ 20.2 million . this was partially offset by an increase in excess content payments over expenses of $ 53.2 million , a $ 12.9 million increase in excess property and equipment payments over expense and decreased deferred revenue of $ 5.5 million . payments for content increased $ 727.6 million while content expenses increased $ 674.4 million . replace_table_token_26_th free cash flow for the year ended december 31 , 2010 increased $ 33.9 million primarily due to an increase of $ 60.4 million in net income as adjusted for the increase in non-cash stock based compensation of $ 15.4 million , decreased property and equipment payments over expense of $ 11.9 million and increased deferred revenue of $ 10.0 million . this was partially offset by an increase in excess streaming and dvd content payments over expenses of $ 32.8 million coupled with increased tax prepayments of $ 14.0 million . payments for content increased $ 198.7 million while content expenses increased $ 165.9 million . effect of exchange rates revenues , as well as certain expenses , primarily content licensing and marketing , incurred in the international streaming segment , are denominated in the local currency . during the year ended december 31 , 2011 and 2010 , the gains or losses on foreign exchange transactions and the effect of exchange rate changes on cash and cash equivalents were immaterial . contractual obligations for the purposes of this table , contractual obligations for purchases of goods or services are defined as agreements that are enforceable and legally binding and that specify all significant terms , including : fixed or 35 minimum quantities to be purchased ; fixed , minimum or variable price provisions ; and the approximate timing of the transaction . the expected timing of payment of the obligations discussed above is estimated based on information available to us as of december 31 , 2011. timing of payments and actual amounts paid may be different depending on the time of receipt of goods or services or changes to agreed-upon amounts for some obligations . the following table summarizes our contractual obligations at december 31 , 2011 : replace_table_token_27_th ( 1 ) represents the lease financing obligations for our los gatos , california headquarters . ( 2 ) streaming content obligations include agreements to acquire and license streaming content that represent long-term liabilities or that are not reflected on the consolidated balance sheets . for those agreements with variable terms , we do not estimate what the total obligation may be beyond any minimum quantities and/ or pricing as of the reporting date . for those agreements that include renewal provisions that are solely at the option of the content provider , we include the commitments associated with the renewal period to the extent such commitments are fixed or a minimum amount is specified . for these reasons , the amounts presented in the table may not provide a reliable indicator of our expected future cash outflows . we have entered into certain streaming content license agreements that include an unspecified or a maximum number of titles that we may or may not receive in the future and or that include pricing contingent upon certain variables , such as theatrical exhibition receipts for the title . as of the reporting date , it is unknown whether we will receive access to these titles or what the ultimate price per title will be . accordingly such amounts are not reflected in the above contractual obligations table . however , such amounts are expected to be significant and the expected timing of payment for these commitments could range from less than one year to more than five years . ( 3 ) for purposes of this table , less than one year does not include liabilities which are reflected on the consolidated balance sheets as current liabilities . content accounts payables for instance includes $ 905.8 million in streaming content obligations not reflected in the above table . as of december 31 , 2011 , the company had gross unrecognized tax benefits of $ 28.1 million and an additional $ 2.4 million for gross interest and penalties classified as other non-current liabilities in the consolidated balance sheet . at this time , the company is unable to make a reasonably reliable estimate of the timing of payments in individual years due to uncertainties in the timing of tax audit outcomes ; therefore , such amounts are not included in the above contractual obligation table . off-balance sheet arrangements as part of our ongoing business , we do not engage in transactions that generate relationships with unconsolidated entities or financial partnerships , such as entities often referred to as structured finance or special purpose entities . accordingly , our operating results , financial condition and cash flows are not subject to off-balance sheet risks . 36 indemnifications the information set forth under note 6 of item 8 , financial statements and supplementary data under the caption guaranteesindemnification obligations is incorporated herein by

liquidity and capital resources our primary source of liquidity has been cash generated from operations . additionally , in november 2011 , we issued $ 200.0 million of our convertible notes and raised an additional $ 200.0 million through a public offering of common stock . the convertible notes consist of $ 200.0 million aggregate principal amount due on december 1 , 2018 and do not bear interest . in november 2009 , we issued $ 200 million of our 8.50 % senior notes due november 15 , 2017 ( the 8.50 % notes ) . interest on the 8.50 % notes is payable semi-annually at a rate of 8.50 % per annum on may 15 and november 15 of each year , commencing on may 15 , 2010 . ( see note 4 of item 8 , financial statements and supplementary data for additional information . ) 32 our primary uses of cash included the acquisition and licensing of content , content delivery expenses , marketing , our stock repurchase programs , payroll related expenses , and capital expenditures related to information technology and automation equipment . we expect to continue to make significant investments to license streaming content both domestically and internationally . these investments could impact our liquidity and in particular our operating cash flows . as a result of the significant increase in subscriber cancellations negatively impacting domestic and consolidated revenues , coupled with increased investments in our international streaming segment , and in international content in particular , we expect consolidated net losses and negative operating cash flows for 2012. although we currently anticipate that our available funds will be sufficient to meet our cash needs for the foreseeable future , we may be required or choose to obtain additional financing . our ability to obtain additional financing will depend on , among other things , our development efforts , business plans , operating performance , current and projected compliance with our debt covenants , and the condition of the capital markets at the time we seek financing . we may not be able to obtain such financing on terms acceptable to us or at all .


 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 our primary source of liquidity has been cash generated from operations . additionally , in november 2011 , we issued $ 200.0 million of our convertible notes and raised an additional $ 200.0 million through a public offering of common stock . the convertible notes consist of $ 200.0 million aggregate principal amount due on december 1 , 2018 and do not bear interest . in november 2009 , we issued $ 200 million of our 8.50 % senior notes due november 15 , 2017 ( the 8.50 % notes ) . interest on the 8.50 % notes is payable semi-annually at a rate of 8.50 % per annum on may 15 and november 15 of each year , commencing on may 15 , 2010 . ( see note 4 of item 8 , financial statements and supplementary data for additional information . ) 32 our primary uses of cash included the acquisition and licensing of content , content delivery expenses , marketing , our stock repurchase programs , payroll related expenses , and capital expenditures related to information technology and automation equipment . we expect to continue to make significant investments to license streaming content both domestically and internationally . these investments could impact our liquidity and in particular our operating cash flows . as a result of the significant increase in subscriber cancellations negatively impacting domestic and consolidated revenues , coupled with increased investments in our international streaming segment , and in international content in particular , we expect consolidated net losses and negative operating cash flows for 2012. although we currently anticipate that our available funds will be sufficient to meet our cash needs for the foreseeable future , we may be required or choose to obtain additional financing . our ability to obtain additional financing will depend on , among other things , our development efforts , business plans , operating performance , current and projected compliance with our debt covenants , and the condition of the capital markets at the time we seek financing . we may not be able to obtain such financing on terms acceptable to us or at all .
```    
 Suspicious Activity Report : as we evolve our focus from our dvd to streaming service , we will be slightly changing how we treat our domestic subscribers so that they are in line with our international subscribers . beginning in the first quarter of 2012 , domestic members who are on payment holds will no longer be counted as unique subscribers nor will they be included in our subscription metrics . members who cancel mid-period will continue to receive service until the end of the period and will accordingly be counted as subscribers and in our subscription metrics until the end of the period . these changes may impact our subscription metrics but we do not expect such impacts to be material . there is no effect on revenue from these changes . the following represents our consolidated performance highlights for 2011 , 2010 and 2009 : replace_table_token_7_th ( 3 ) see liquidity and capital resources for a definition of free cash flow and a reconciliation of free cash flow to net cash provided by operating activities. 24 due to the announcement of changes to our domestic plan offerings , pricing , and branding in the third quarter of 2011 , we experienced an increase in the number of subscriber cancellations , resulting in a net loss of unique domestic subscribers in the third quarter of 2011. however , unique domestic subscribers returned to growth in the fourth quarter of 2011 driven by the continued popularity of domestic streaming subscriptions . the subscriber cancellations in the second half of 2011 , coupled with slower growth in the number of new subscribers joining our service , resulted in a 32.3 % decrease in unique domestic net subscriber additions for the year ended december 31 , 2011 as compared to the year ended december 31 , 2010. the year-over-year increase in ending unique domestic subscribers was the primary driver in the 48.2 % increase in consolidated revenues for the year ended december 31 , 2011 as compared to the year ended december 31 , 2010. domestic streaming subscriptions increased in the fourth quarter of 2011 as compared to the third quarter of 2011 when we first began tracking such subscriptions separately . due to strength in both acquisitions and retention , we expect continued growth in this segment . our contribution margin target for domestic streaming is 11 % for the first quarter of 2012 with further margin expansion over the next twelve months . in 2011 , our international streaming segment reported a contribution loss of $ 103.1 million and we expect that our expansion to the uk and ireland in january 2012 will result in further contribution losses as our investments to build our business there , especially our investments in content licensing , will exceed the revenues we are likely to generate . dvd subscriptions , which we also began tracking separately in the second half of 2011 , are declining as subscribers migrate from hybrid plans towards lower priced streaming only subscription plans . we expect continued decreases in dvd subscriptions which will reduce domestic and consolidated revenues by approximately the same amount of the increase expected from streaming subscription growth . domestic dvd contribution margins are expected to remain healthy due to the primarily variable cost model and mature state of the business . consolidated revenues for the first quarter of 2012 are expected to be flat as compared to the fourth quarter of 2011 and we may experience slower growth in consolidated revenue for the year ending december 31 , 2012 as compared to the year ending december 31 , 2011. as a result of the negative impact on revenue growth associated with a decline in domestic dvd subscriptions coupled with the increasing investment in our international streaming segment , we expect to incur consolidated net losses for the year ended december 31 , 2012. free cash flow for the year ended december 31 , 2011 increased as compared to the year ended december 31 , 2010 to $ 186.6 million . free cash flow was $ 39.6 million lower than net income of $ 226.1 million , largely due to the excess streaming and dvd content payments over expense . the excess streaming and dvd content payments over expense will continue to fluctuate over time based on new content licenses domestically and internationally . we expect that free cash flow in future periods will be negatively impacted by our expected consolidated net losses and that we may use cash in 2012. as a result of the expected net losses and potential use of cash in 2012 , we decided to strengthen our balance sheet by raising $ 400 million of additional capital . in november 2011 , we issued $ 200.0 million of our zero coupon senior convertible notes due in 2018 ( the convertible notes ) and raised an additional $ 200.0 million through a public offering of common stock . 25 results of operations the following table sets forth , for the periods presented , the line items in our consolidated statements of operations as a percentage of total revenues . the information contained in the table below should be read in conjunction with the financial statements and notes thereto included in item 8 , financial statements and supplementary data of this annual report on form 10-k. replace_table_token_8_th revenues we derive our revenues from monthly subscription fees and recognize subscription revenues ratably over each subscriber 's monthly subscription period . we currently generate substantially all of our revenues in the united states . in the domestic streaming segment , we derive revenues from services consisting solely of streaming content offered through a subscription plan priced at $ 7.99 per month . in the domestic dvd segment , we derive revenues from our dvds-by-mail subscription services . story_separator_special_tag the payment terms for these license fees may extend over the term of the license agreements , which typically range from six months to five years . license 34 fee obligations with payment terms that are due beyond one year are classified on the consolidated balance sheets as non-current content liabilities. minimum commitments for licenses and known titles that do not meet the criteria for asset recognition in the content library are included in note 5 of item 8 , financial statements and supplementary data . the following tables reconcile net cash provided by operating activities , a gaap financial measure , to free cash flow , a non-gaap financial measure . replace_table_token_25_th free cash flow for the year ended december 31 , 2011 increased $ 55.5 million primarily due to an increase of $ 98.9 million in net income as adjusted for the increase in non-cash stock based compensation of $ 33.6 million and decreased tax prepayments of $ 20.2 million . this was partially offset by an increase in excess content payments over expenses of $ 53.2 million , a $ 12.9 million increase in excess property and equipment payments over expense and decreased deferred revenue of $ 5.5 million . payments for content increased $ 727.6 million while content expenses increased $ 674.4 million . replace_table_token_26_th free cash flow for the year ended december 31 , 2010 increased $ 33.9 million primarily due to an increase of $ 60.4 million in net income as adjusted for the increase in non-cash stock based compensation of $ 15.4 million , decreased property and equipment payments over expense of $ 11.9 million and increased deferred revenue of $ 10.0 million . this was partially offset by an increase in excess streaming and dvd content payments over expenses of $ 32.8 million coupled with increased tax prepayments of $ 14.0 million . payments for content increased $ 198.7 million while content expenses increased $ 165.9 million . effect of exchange rates revenues , as well as certain expenses , primarily content licensing and marketing , incurred in the international streaming segment , are denominated in the local currency . during the year ended december 31 , 2011 and 2010 , the gains or losses on foreign exchange transactions and the effect of exchange rate changes on cash and cash equivalents were immaterial . contractual obligations for the purposes of this table , contractual obligations for purchases of goods or services are defined as agreements that are enforceable and legally binding and that specify all significant terms , including : fixed or 35 minimum quantities to be purchased ; fixed , minimum or variable price provisions ; and the approximate timing of the transaction . the expected timing of payment of the obligations discussed above is estimated based on information available to us as of december 31 , 2011. timing of payments and actual amounts paid may be different depending on the time of receipt of goods or services or changes to agreed-upon amounts for some obligations . the following table summarizes our contractual obligations at december 31 , 2011 : replace_table_token_27_th ( 1 ) represents the lease financing obligations for our los gatos , california headquarters . ( 2 ) streaming content obligations include agreements to acquire and license streaming content that represent long-term liabilities or that are not reflected on the consolidated balance sheets . for those agreements with variable terms , we do not estimate what the total obligation may be beyond any minimum quantities and/ or pricing as of the reporting date . for those agreements that include renewal provisions that are solely at the option of the content provider , we include the commitments associated with the renewal period to the extent such commitments are fixed or a minimum amount is specified . for these reasons , the amounts presented in the table may not provide a reliable indicator of our expected future cash outflows . we have entered into certain streaming content license agreements that include an unspecified or a maximum number of titles that we may or may not receive in the future and or that include pricing contingent upon certain variables , such as theatrical exhibition receipts for the title . as of the reporting date , it is unknown whether we will receive access to these titles or what the ultimate price per title will be . accordingly such amounts are not reflected in the above contractual obligations table . however , such amounts are expected to be significant and the expected timing of payment for these commitments could range from less than one year to more than five years . ( 3 ) for purposes of this table , less than one year does not include liabilities which are reflected on the consolidated balance sheets as current liabilities . content accounts payables for instance includes $ 905.8 million in streaming content obligations not reflected in the above table . as of december 31 , 2011 , the company had gross unrecognized tax benefits of $ 28.1 million and an additional $ 2.4 million for gross interest and penalties classified as other non-current liabilities in the consolidated balance sheet . at this time , the company is unable to make a reasonably reliable estimate of the timing of payments in individual years due to uncertainties in the timing of tax audit outcomes ; therefore , such amounts are not included in the above contractual obligation table . off-balance sheet arrangements as part of our ongoing business , we do not engage in transactions that generate relationships with unconsolidated entities or financial partnerships , such as entities often referred to as structured finance or special purpose entities . accordingly , our operating results , financial condition and cash flows are not subject to off-balance sheet risks . 36 indemnifications the information set forth under note 6 of item 8 , financial statements and supplementary data under the caption guaranteesindemnification obligations is incorporated herein by

