( 3 ) cancel rate is defined as cancels of small and medium businesses and individual cloud services customers with greater than four months of continuous service ( continuous service includes cloud services customers administratively canceled and reactivated within the same calendar month ) , and enterprise cloud services customers beginning with their first day of service . calculated monthly and expressed as an average over the three months of the quarter . digital media segment performance metrics the following table sets forth certain key operating metrics for our digital media segment for the years ended december 31 , 2017 , 2016 and 2015 ( in millions ) : replace_table_token_8_th sources : google analytics and partner platforms - 39 - critical accounting policies and estimates we prepare our consolidated financial statements and related disclosures in accordance with u.s. generally accepted accounting principles ( “ gaap ” ) and our discussion and analysis of our financial condition and operating results require us to make judgments , assumptions and estimates that affect the amounts reported in our consolidated financial statements and accompanying notes . see note 2 , “ basis of presentation and summary of significant accounting policies ” of the notes to consolidated financial statements in part ii , item 8 of this form 10-k which describes the significant accounting policies and methods used in the preparation of our consolidated financial statements . we base our estimates on historical experience and on various other assumptions we believe to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities . actual results may differ significantly from those estimates under different assumptions and conditions and may be material . we believe that our most critical accounting policies are those related to revenue recognition , valuation and impairment of investments , share-based compensation expense , long-lived and intangible asset impairment , contingent consideration , income taxes and contingencies and allowance for doubtful accounts . we consider these policies critical because they are those that are most important to the portrayal of our financial condition and results and require management 's most difficult , subjective and complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . senior management has reviewed these critical accounting policies and related disclosures with the audit committee of the company 's board of directors . revenue recognition cloud services the company 's cloud services revenues substantially consist of monthly fixed subscription and variable usage-based fees , which are primarily paid in advance by credit card . in accordance with gaap , the company recognizes revenue when persuasive evidence of an arrangement exists , services have been provided , the sales price is fixed and determinable and collection is probable . the company defers the portions of monthly , quarterly , semi-annually and annually recurring subscription and usage-based fees collected in advance and recognizes them in the period earned . additionally , the company defers and recognizes subscriber activation fees and related direct incremental costs over a subscriber 's estimated useful life . along with our numerous proprietary cloud services solutions , the company also generates revenues by reselling various third party solutions , primarily through our email security and online backup lines of business . these third party solutions , along with our proprietary products , allow the company to offer customers a variety of solutions to better meet their needs . the company determines whether reseller revenue should be reported on a gross or net basis by assessing whether the company is acting as the principal or an agent in the transaction . if the company is acting as the principal in a transaction , the company reports revenue on a gross basis . if the company is acting as an agent in a transaction , the company reports revenue on a net basis . in determining whether the company acts as the principal or an agent , the company follows the accounting guidance for principal-agent considerations and the company places the most weight on three factors : whether or not the company ( i ) is the primary obligor in the arrangement , ( ii ) has latitude in determining pricing and ( iii ) bears credit risk . the company records revenue on a gross basis with respect to reseller revenue as the company is the primary obligator in the arrangement , has latitude in determining pricing and bears all credit risk associated with our reseller program partners . j2 global 's cloud services also include patent license revenues generated under license agreements that provide for the payment of contractually determined fully paid-up or royalty-bearing license fees to j2 global in exchange for the grant of non-exclusive , retroactive and future licenses to our intellectual property , including patented technology . patent revenues may also consist of revenues generated from the sale of patents . patent license revenues are recognized when earned over the term of the license agreements . with regard to fully paid-up license arrangements , the company recognizes as revenue in the period the license agreement is executed the portion of the payment attributable to past use of the intellectual property and amortizes the remaining portion of such payments on a straight-line basis , or pro-rata revenue basis , as appropriate over the life of the licensed patent ( s ) . with regard to royalty-bearing license arrangements , the company recognizes revenues of license fees earned during the applicable period . with regard to patent sales , the company recognizes as revenue in the period of the sale the amount of the purchase price over the carrying value of the patent ( s ) sold . - 40 - the cloud services business also generates revenues by licensing certain technology to third parties . story_separator_special_tag the second step is to measure the tax benefit as the largest amount that is more than 50 % likely of being realized upon settlement . if it is not more likely than not that the benefit will be sustained on its technical merits , no benefit will be recorded . uncertain income tax positions that relate only to timing of when an item is included on a tax return are considered to have met the recognition threshold . we recognize accrued interest and penalties related to uncertain income tax positions in income tax expense on our consolidated statement of income . on a quarterly basis , we evaluate uncertain income tax positions and establish or release reserves as appropriate under gaap . as a multinational corporation , we are subject to taxation in many jurisdictions , and the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in various taxing jurisdictions . our estimate of the potential outcome of any uncertain tax issue is subject to management 's assessment of relevant risks , facts and circumstances existing at that time . therefore , the actual liability for u.s. or foreign taxes may be materially different from our estimates , which could result in the need to record additional tax liabilities or potentially to reverse previously recorded tax liabilities . in addition , we may be subject to examination of our tax returns by the u.s. internal revenue service ( “ irs ” ) and other domestic and foreign tax authorities . it is possible that one or more of these audits may conclude in the next 12 months and that the unrecognized tax benefits we have recorded in relation to these tax years may change compared to the liabilities recorded for the periods . however , it is not possible to estimate the amount , if any , of such change . we establish reserves for these tax contingencies when we believe that certain tax positions might be challenged despite our belief that our tax positions are fully supportable . we adjust these reserves when changing events and circumstances arise . non-income tax contingencies we are currently under audit by various state , local and foreign taxing authorities for direct and indirect non-income related taxes , including canadian sales tax . in accordance with the provisions of fasb asc topic no . 450 , contingencies ( “ asc 450 ” ) we make judgments regarding the future outcome of contingent events and record loss contingency amounts that are probable and reasonably estimable based upon available information . as a provider of cloud services for business , we do not provide telecommunications services . thus , we believe that our business and our users ( by using our services ) are generally not subject to various telecommunication taxes . however , several state taxing authorities have challenged this belief and have and may continue to audit and assess our business and operations with respect to telecommunications and other sales taxes . in addition , the application of other indirect taxes ( such as sales and use tax , business tax and gross receipt tax ) to e-commerce businesses such as j2 global and our users is a complex and evolving issue . - 44 - the application of existing , new or future laws could have adverse effects on our business , prospects and operating results . there have been , and will continue to be , substantial ongoing costs associated with complying with the various indirect tax requirements in the numerous markets in which we conduct or will conduct business . on march 3 , 2017 , the new york state department of taxation and finance issued a notice of assessment for sales and use tax for the period of march 1 , 2009 through february 28 , 2014. we have reached a settlement with the department which has expanded the period up to november 30 , 2017. we have accrued $ 2.80 million as of december 31 , 2017. on february 18 , 2018 , we paid $ 2.77 million to new york in settlement . on august 24 , 2016 , the office of finance for the city of los angeles notified us that they will commence an audit of business and communications taxes for the period of january 1 , 2013 through december 31 , 2016 which has concluded with no material impact . for other jurisdictions , we currently have no reserves established for these matters , as we have determined that the liability is not probable and estimable . however , it is reasonably possible that such a liability could be incurred , which would result in additional expense , which could materially impact our financial results . allowances for doubtful accounts we reserve for receivables we may not be able to collect . these reserves are typically driven by the volume of credit card declines and past due invoices and are based on historical experience as well as an evaluation of current market conditions . on an ongoing basis , management evaluates the adequacy of these reserves . recent accounting pronouncements see note 2 , “ basis of presentation and summary of significant accounting policies ” , to our accompanying consolidated financial statements for a description of recent accounting pronouncements and our expectations of their impact on our consolidated financial position and results of operations . results of operations years ended december 31 , 2017 , 2016 and 2015 cloud services segment assuming a stable or improving economic environment , and , subject to our risk factors , we expect the revenue and profits as included in the results of operations below in our cloud services segment to be stable for the foreseeable future ( excluding the impact of acquisitions ) . the main focus of our cloud services offerings is to reduce or eliminate costs , increase sales and enhance productivity , mobility

liquidity and capital resources cash and cash equivalents and investments at december 31 , 2017 , we had cash and investments of $ 408.7 million compared to $ 124.0 million at december 31 , 2016 . the increase in cash and investments resulted primarily from the issuance of long-term debt and cash from operations , partially offset by the repayment of the line of credit , business acquisitions , dividends and interest paid , and purchases of property and equipment . at december 31 , 2017 , cash and investments consisted of cash and cash equivalents of $ 350.9 million and long-term investments of $ 57.7 million . our investments are comprised primarily of certain preferred stock and preferred stock warrants . for financial statement presentation , we classify our investments primarily as short- and long-term based upon their maturity dates . short-term investments mature within one year of the date of the financial statements and long-term investments mature one year or more from the date of the financial statements . we retain a substantial portion of our cash and investments in foreign jurisdictions for future reinvestment . as of december 31 , 2017 cash and investments held within foreign and domestic jurisdictions were $ 137.5 million and $ 271.2 million , respectively . as of december 31 , 2016 cash and investments held within foreign and domestic jurisdictions were $ 48.1 million and $ 75.9 million , respectively . on december 22 , 2017 , the u.s. government enacted comprehensive tax legislation , the 2017 tax act . we will continue to assess the impact of the 2017 tax act on the tax consequences of future repatriations of foreign earnings and our assertion of indefinite reinvestment of foreign earnings . see note 11 “ income taxes ” of the notes to the consolidated financial statements for additional information .


 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 cash and cash equivalents and investments at december 31 , 2017 , we had cash and investments of $ 408.7 million compared to $ 124.0 million at december 31 , 2016 . the increase in cash and investments resulted primarily from the issuance of long-term debt and cash from operations , partially offset by the repayment of the line of credit , business acquisitions , dividends and interest paid , and purchases of property and equipment . at december 31 , 2017 , cash and investments consisted of cash and cash equivalents of $ 350.9 million and long-term investments of $ 57.7 million . our investments are comprised primarily of certain preferred stock and preferred stock warrants . for financial statement presentation , we classify our investments primarily as short- and long-term based upon their maturity dates . short-term investments mature within one year of the date of the financial statements and long-term investments mature one year or more from the date of the financial statements . we retain a substantial portion of our cash and investments in foreign jurisdictions for future reinvestment . as of december 31 , 2017 cash and investments held within foreign and domestic jurisdictions were $ 137.5 million and $ 271.2 million , respectively . as of december 31 , 2016 cash and investments held within foreign and domestic jurisdictions were $ 48.1 million and $ 75.9 million , respectively . on december 22 , 2017 , the u.s. government enacted comprehensive tax legislation , the 2017 tax act . we will continue to assess the impact of the 2017 tax act on the tax consequences of future repatriations of foreign earnings and our assertion of indefinite reinvestment of foreign earnings . see note 11 “ income taxes ” of the notes to the consolidated financial statements for additional information .
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 Suspicious Activity Report : ( 3 ) cancel rate is defined as cancels of small and medium businesses and individual cloud services customers with greater than four months of continuous service ( continuous service includes cloud services customers administratively canceled and reactivated within the same calendar month ) , and enterprise cloud services customers beginning with their first day of service . calculated monthly and expressed as an average over the three months of the quarter . digital media segment performance metrics the following table sets forth certain key operating metrics for our digital media segment for the years ended december 31 , 2017 , 2016 and 2015 ( in millions ) : replace_table_token_8_th sources : google analytics and partner platforms - 39 - critical accounting policies and estimates we prepare our consolidated financial statements and related disclosures in accordance with u.s. generally accepted accounting principles ( “ gaap ” ) and our discussion and analysis of our financial condition and operating results require us to make judgments , assumptions and estimates that affect the amounts reported in our consolidated financial statements and accompanying notes . see note 2 , “ basis of presentation and summary of significant accounting policies ” of the notes to consolidated financial statements in part ii , item 8 of this form 10-k which describes the significant accounting policies and methods used in the preparation of our consolidated financial statements . we base our estimates on historical experience and on various other assumptions we believe to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities . actual results may differ significantly from those estimates under different assumptions and conditions and may be material . we believe that our most critical accounting policies are those related to revenue recognition , valuation and impairment of investments , share-based compensation expense , long-lived and intangible asset impairment , contingent consideration , income taxes and contingencies and allowance for doubtful accounts . we consider these policies critical because they are those that are most important to the portrayal of our financial condition and results and require management 's most difficult , subjective and complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . senior management has reviewed these critical accounting policies and related disclosures with the audit committee of the company 's board of directors . revenue recognition cloud services the company 's cloud services revenues substantially consist of monthly fixed subscription and variable usage-based fees , which are primarily paid in advance by credit card . in accordance with gaap , the company recognizes revenue when persuasive evidence of an arrangement exists , services have been provided , the sales price is fixed and determinable and collection is probable . the company defers the portions of monthly , quarterly , semi-annually and annually recurring subscription and usage-based fees collected in advance and recognizes them in the period earned . additionally , the company defers and recognizes subscriber activation fees and related direct incremental costs over a subscriber 's estimated useful life . along with our numerous proprietary cloud services solutions , the company also generates revenues by reselling various third party solutions , primarily through our email security and online backup lines of business . these third party solutions , along with our proprietary products , allow the company to offer customers a variety of solutions to better meet their needs . the company determines whether reseller revenue should be reported on a gross or net basis by assessing whether the company is acting as the principal or an agent in the transaction . if the company is acting as the principal in a transaction , the company reports revenue on a gross basis . if the company is acting as an agent in a transaction , the company reports revenue on a net basis . in determining whether the company acts as the principal or an agent , the company follows the accounting guidance for principal-agent considerations and the company places the most weight on three factors : whether or not the company ( i ) is the primary obligor in the arrangement , ( ii ) has latitude in determining pricing and ( iii ) bears credit risk . the company records revenue on a gross basis with respect to reseller revenue as the company is the primary obligator in the arrangement , has latitude in determining pricing and bears all credit risk associated with our reseller program partners . j2 global 's cloud services also include patent license revenues generated under license agreements that provide for the payment of contractually determined fully paid-up or royalty-bearing license fees to j2 global in exchange for the grant of non-exclusive , retroactive and future licenses to our intellectual property , including patented technology . patent revenues may also consist of revenues generated from the sale of patents . patent license revenues are recognized when earned over the term of the license agreements . with regard to fully paid-up license arrangements , the company recognizes as revenue in the period the license agreement is executed the portion of the payment attributable to past use of the intellectual property and amortizes the remaining portion of such payments on a straight-line basis , or pro-rata revenue basis , as appropriate over the life of the licensed patent ( s ) . with regard to royalty-bearing license arrangements , the company recognizes revenues of license fees earned during the applicable period . with regard to patent sales , the company recognizes as revenue in the period of the sale the amount of the purchase price over the carrying value of the patent ( s ) sold . - 40 - the cloud services business also generates revenues by licensing certain technology to third parties . story_separator_special_tag the second step is to measure the tax benefit as the largest amount that is more than 50 % likely of being realized upon settlement . if it is not more likely than not that the benefit will be sustained on its technical merits , no benefit will be recorded . uncertain income tax positions that relate only to timing of when an item is included on a tax return are considered to have met the recognition threshold . we recognize accrued interest and penalties related to uncertain income tax positions in income tax expense on our consolidated statement of income . on a quarterly basis , we evaluate uncertain income tax positions and establish or release reserves as appropriate under gaap . as a multinational corporation , we are subject to taxation in many jurisdictions , and the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws and regulations in various taxing jurisdictions . our estimate of the potential outcome of any uncertain tax issue is subject to management 's assessment of relevant risks , facts and circumstances existing at that time . therefore , the actual liability for u.s. or foreign taxes may be materially different from our estimates , which could result in the need to record additional tax liabilities or potentially to reverse previously recorded tax liabilities . in addition , we may be subject to examination of our tax returns by the u.s. internal revenue service ( “ irs ” ) and other domestic and foreign tax authorities . it is possible that one or more of these audits may conclude in the next 12 months and that the unrecognized tax benefits we have recorded in relation to these tax years may change compared to the liabilities recorded for the periods . however , it is not possible to estimate the amount , if any , of such change . we establish reserves for these tax contingencies when we believe that certain tax positions might be challenged despite our belief that our tax positions are fully supportable . we adjust these reserves when changing events and circumstances arise . non-income tax contingencies we are currently under audit by various state , local and foreign taxing authorities for direct and indirect non-income related taxes , including canadian sales tax . in accordance with the provisions of fasb asc topic no . 450 , contingencies ( “ asc 450 ” ) we make judgments regarding the future outcome of contingent events and record loss contingency amounts that are probable and reasonably estimable based upon available information . as a provider of cloud services for business , we do not provide telecommunications services . thus , we believe that our business and our users ( by using our services ) are generally not subject to various telecommunication taxes . however , several state taxing authorities have challenged this belief and have and may continue to audit and assess our business and operations with respect to telecommunications and other sales taxes . in addition , the application of other indirect taxes ( such as sales and use tax , business tax and gross receipt tax ) to e-commerce businesses such as j2 global and our users is a complex and evolving issue . - 44 - the application of existing , new or future laws could have adverse effects on our business , prospects and operating results . there have been , and will continue to be , substantial ongoing costs associated with complying with the various indirect tax requirements in the numerous markets in which we conduct or will conduct business . on march 3 , 2017 , the new york state department of taxation and finance issued a notice of assessment for sales and use tax for the period of march 1 , 2009 through february 28 , 2014. we have reached a settlement with the department which has expanded the period up to november 30 , 2017. we have accrued $ 2.80 million as of december 31 , 2017. on february 18 , 2018 , we paid $ 2.77 million to new york in settlement . on august 24 , 2016 , the office of finance for the city of los angeles notified us that they will commence an audit of business and communications taxes for the period of january 1 , 2013 through december 31 , 2016 which has concluded with no material impact . for other jurisdictions , we currently have no reserves established for these matters , as we have determined that the liability is not probable and estimable . however , it is reasonably possible that such a liability could be incurred , which would result in additional expense , which could materially impact our financial results . allowances for doubtful accounts we reserve for receivables we may not be able to collect . these reserves are typically driven by the volume of credit card declines and past due invoices and are based on historical experience as well as an evaluation of current market conditions . on an ongoing basis , management evaluates the adequacy of these reserves . recent accounting pronouncements see note 2 , “ basis of presentation and summary of significant accounting policies ” , to our accompanying consolidated financial statements for a description of recent accounting pronouncements and our expectations of their impact on our consolidated financial position and results of operations . results of operations years ended december 31 , 2017 , 2016 and 2015 cloud services segment assuming a stable or improving economic environment , and , subject to our risk factors , we expect the revenue and profits as included in the results of operations below in our cloud services segment to be stable for the foreseeable future ( excluding the impact of acquisitions ) . the main focus of our cloud services offerings is to reduce or eliminate costs , increase sales and enhance productivity , mobility

