we serve our customers through more than 1,500 active contracts and task orders and employ approximately 13,000 individuals with an experienced executive team of proven industry leaders . serving our country 's defense and civilian markets , along with many commercial and state/local governments , has afforded us the ability to develop strong and longstanding relationships with some of the largest customers in the markets we serve . we provide engineering and integration offerings for large , complex government projects and offer a broad range of services with a targeted emphasis on higher-end , differentiated technology services . we operate in two operating segments that provide comprehensive service offerings across our customer base . our technical and engineering offerings include engineering and maintenance of ground and maritime systems , logistics , training and simulation , as well as operation and program support services . our enterprise it offerings include end-to-end enterprise it services , which span the design , development , integration , deployment , management and operation , sustainment and security of our customers ' entire it infrastructure . our segments have been aggregated into one reporting segment for financial reporting purposes . substantially all of our revenues and tangible long-lived assets are generated by or are owned by entities located in the united states . leveraging our customer relationships and the new operating model and cost efficiency afforded through the separation , we believe we are poised to protect our existing business base , expand our offerings to current customers and grow into adjacent markets . we believe that saic 's value proposition is found in the proven ability to serve as a trusted adviser to our customers . in doing so , we leverage our expertise and scale to help them execute their mission . we succeed as a business based on the solutions we deliver , our past performance and our ability to compete on price . our solutions are based on best practices , technology transfer and inspired through innovation . our past performance was achieved by employee dedication and customer focus . our ability to be competitive in the future will continue to be driven by our cost structure and efficiencies in assigning the right people , at the right time , on our contract work and functional services . saic annual report 23 part ii economic opportunities , challenges , and risks in fiscal 2014 , we generated greater than 90 % of our total revenues from contracts with the u.s. government and greater than 70 % of our total revenues from contracts with the dod , including subcontracts on which we perform . our business performance is affected by the overall level of u.s. government spending ( especially defense spending ) and the alignment of our offerings and capabilities with the budget priorities of the u.s. government . while we believe that national security , including defense , will continue to be a priority , the u.s. government budget deficit and the national u.s. debt has created pressure to examine and reduce spending across all federal agencies . baseline spending for the dod for the next 10 years has been reduced and there may be further reductions . adverse changes in fiscal and economic conditions , such as the manner in which spending reductions are implemented , including sequestration , future government shutdowns , and issues related to the nation 's debt ceiling , could materially impact our business . the u.s. government has increasingly relied on contracts that are subject to a competitive bidding process , including indefinite delivery/indefinite quantity ( idiq ) , u.s. general services administration ( gsa ) schedule and other multi-award contracts , which has resulted in greater competition and increased pricing pressure . we expect that a majority of the business that we seek in the foreseeable future will be awarded through a competitive bidding process . for example , during fiscal 2013 we were not awarded the successor contract to the disn global solutions ( dgs ) program with the defense information system agency . additionally , since 2011 , organizational conflict of interest ( oci ) rules have become more restrictive , leading to greater fragmentation of the industry . despite the budget and competitive pressures impacting the industry , we believe we are well-positioned to expand customer penetration and benefit from opportunities that we have not previously pursued . our scale , size and prime contractor leadership position are expected to help differentiate us from our competitors , especially on large contracts . we believe our long-term , trusted customer relationships and deep technical expertise provide us with the sophistication to handle mission-critical contracts . our current competitive cost structure , as well as our ongoing efforts to maintain or reduce costs by centralizing strategic sourcing and developing repeatable offerings , are expected to allow us to compete effectively on price in the evolving environment . additionally , due to the separation and the resulting removal of many oci restrictions , we believe we have enhanced our ability to expand market share with our existing customers and pursue new growth opportunities . results of operations the primary financial performance measures we use to manage our business and monitor results of operations are revenue , operating income , and cash flows from operating activities . the following table summarizes our results of operations for the periods presented : replace_table_token_5_th management believes that the presentation of operating income excluding separation transaction and restructuring expenses , as a percentage of revenues , which is a non-gaap financial measure , provides useful information to investors regarding the registrant 's financial condition and results of operations . we classify overhead costs as cost of revenues and general and administrative expenses as defined in our disclosure statements in accordance with u.s. government cost accounting standards ( cas ) . 24 saic annual report part ii fiscal 2014 compared to fiscal 2013 revenues . story_separator_special_tag our accounts receivable include both receivables billed to customers and unbilled receivables , which consist of costs and fees billable upon contract completion or the occurrence of a specified event , the majority of which is expected to be billed and collected within one year . unbilled receivables are stated at estimated realizable value . since our receivables 30 saic annual report part ii are primarily with the u.s. government , we do not have a material credit risk exposure . contract retentions are billed when we have negotiated final indirect rates with the u.s. government and , once billed , are subject to audit and approval by government representatives . consequently , the timing of collection of retention balances is outside our control . based on our historical experience , the majority of retention balances are expected to be collected beyond one year and write-offs of retention balances have not been significant . contract claims are unanticipated additional costs incurred but not provided for in the executed contract price that we seek to recover from the customer . such costs are expensed as incurred . revenue related to contract claims is recognized when the contract price is adjusted by the customer . goodwill and intangible assets impairment . we evaluate goodwill for potential impairment annually at the beginning of the fourth quarter , or whenever events or circumstances indicate that the carrying value of goodwill may not be recoverable . the goodwill impairment test is a two-step process performed at the reporting unit level . the first step consists of estimating the fair values of each of the reporting units based on a market approach . fair value computed using this method is determined using a number of factors , including projected future operating results and business plans , economic projections , anticipated future cash flows , comparable market data based on industry grouping , and the cost of capital . the estimated fair values are compared with the carrying values of the reporting units . if the fair value is less than the carrying value of a reporting unit , which includes the allocated goodwill , a second step is performed to compute the amount of the impairment by determining an implied fair value of goodwill . the implied fair value of goodwill is the residual fair value derived by deducting the fair value of a reporting unit 's identifiable assets and liabilities from its estimated fair value calculated in the first step . the impairment expense represents the excess of the carrying amount of the reporting unit 's goodwill over the implied fair value of the reporting unit 's goodwill . we face uncertainty in our business environment due to the substantial fiscal and economic challenges facing the u.s. government , its primary customer . adverse changes , such as the manner in which budget cuts are implemented , including sequestration , and issues related to the nation 's debt ceiling , could negatively impact our expected future operating results and potentially result in an impairment of goodwill . intangible assets with finite lives are assessed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable . we did not recognize any impairment losses on intangible assets during the last three fiscal years . income taxes . prior to the separation our operations were historically included in former parent 's u.s. federal and state income tax returns and all income taxes were paid by former parent . income taxes are presented in the consolidated and combined financial statements as if we filed our own tax returns on a separate tax return basis . income tax liabilities were assumed to be immediately settled with former parent against the parent company investment account . following the separation , we account for income taxes under the asset and liability method of accounting , which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities . under this method , changes in tax rates and laws are recognized in income in the period such changes are enacted . the provision for federal , state , foreign and local income taxes is calculated on income before income taxes based on current tax law and includes the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities . such provision differs from the amounts currently payable because certain items of income and expense are recognized in different reporting periods for financial reporting purposes than for income tax purposes . recording our provision for income taxes requires management to make significant judgments and estimates for matters whose ultimate resolution may not become known until the final resolution of an examination by the irs or state agencies . additionally , recording liabilities for uncertain tax positions involves significant judgment in evaluating our tax positions and developing our best estimate of the taxes ultimately expected to be paid . we record net deferred tax assets to the extent we believe these assets will more likely than not be realized . in making such determination , we consider all available positive and negative evidence , including future reversals of existing taxable temporary differences , projected future taxable income , tax planning strategies and recent results of operations . if we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount or would no longer be able to realize our deferred income tax assets in the future as currently recorded , we would make an adjustment to the valuation allowance which would decrease or increase the provision for income taxes . we have also recognized liabilities for uncertain tax positions when it is more likely than not that a tax position will not be sustained upon examination

cash flows from operating activities . cash flows provided by operating activities were $ 183 million for fiscal 2014 , which was a decrease of $ 97 million as compared to the comparable prior year period . the decrease was primarily due to lower net income and a reduction in accrued vacation in fiscal 2014. we changed our vacation accrual policy in the fourth quarter of fiscal 2014. under the revised policy the maximum vacation accrual was reduced and employees will no longer earn vacation once the maximum has been reached . this change resulted in a payment to employees of approximately $ 14 million for previously accrued vacation above the revised maximum level . fiscal 2013 compared to fiscal 2012 revenues . total revenues increased $ 48 million , or 1 % , in fiscal 2013 as compared to fiscal 2012. the increase in total revenues was attributable to increased activity on a number of contracts , including on a program to operate and maintain the enterprise network information technology infrastructure for the department of state ( $ 145 million ) , a prime contract with the defense logistics agency to provide supply chain management and delivery of military land and aircraft tires ( $ 136 million ) , and a systems and software maintenance/upgrade program for the u.s. army ( $ 114 million ) . these increases were partially offset by reduced revenues from the u.s. army brigade combat team modernization contract as a result of the program 's termination during fiscal 2012 ( $ 154 million ) , declines in various federal civilian programs ( $ 139 million ) and reduced activity on a program to provide systems engineering and management support for the u.s. navy ( $ 54 million ) . operating income .


 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 flows from operating activities . cash flows provided by operating activities were $ 183 million for fiscal 2014 , which was a decrease of $ 97 million as compared to the comparable prior year period . the decrease was primarily due to lower net income and a reduction in accrued vacation in fiscal 2014. we changed our vacation accrual policy in the fourth quarter of fiscal 2014. under the revised policy the maximum vacation accrual was reduced and employees will no longer earn vacation once the maximum has been reached . this change resulted in a payment to employees of approximately $ 14 million for previously accrued vacation above the revised maximum level . fiscal 2013 compared to fiscal 2012 revenues . total revenues increased $ 48 million , or 1 % , in fiscal 2013 as compared to fiscal 2012. the increase in total revenues was attributable to increased activity on a number of contracts , including on a program to operate and maintain the enterprise network information technology infrastructure for the department of state ( $ 145 million ) , a prime contract with the defense logistics agency to provide supply chain management and delivery of military land and aircraft tires ( $ 136 million ) , and a systems and software maintenance/upgrade program for the u.s. army ( $ 114 million ) . these increases were partially offset by reduced revenues from the u.s. army brigade combat team modernization contract as a result of the program 's termination during fiscal 2012 ( $ 154 million ) , declines in various federal civilian programs ( $ 139 million ) and reduced activity on a program to provide systems engineering and management support for the u.s. navy ( $ 54 million ) . operating income .
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 Suspicious Activity Report : we serve our customers through more than 1,500 active contracts and task orders and employ approximately 13,000 individuals with an experienced executive team of proven industry leaders . serving our country 's defense and civilian markets , along with many commercial and state/local governments , has afforded us the ability to develop strong and longstanding relationships with some of the largest customers in the markets we serve . we provide engineering and integration offerings for large , complex government projects and offer a broad range of services with a targeted emphasis on higher-end , differentiated technology services . we operate in two operating segments that provide comprehensive service offerings across our customer base . our technical and engineering offerings include engineering and maintenance of ground and maritime systems , logistics , training and simulation , as well as operation and program support services . our enterprise it offerings include end-to-end enterprise it services , which span the design , development , integration , deployment , management and operation , sustainment and security of our customers ' entire it infrastructure . our segments have been aggregated into one reporting segment for financial reporting purposes . substantially all of our revenues and tangible long-lived assets are generated by or are owned by entities located in the united states . leveraging our customer relationships and the new operating model and cost efficiency afforded through the separation , we believe we are poised to protect our existing business base , expand our offerings to current customers and grow into adjacent markets . we believe that saic 's value proposition is found in the proven ability to serve as a trusted adviser to our customers . in doing so , we leverage our expertise and scale to help them execute their mission . we succeed as a business based on the solutions we deliver , our past performance and our ability to compete on price . our solutions are based on best practices , technology transfer and inspired through innovation . our past performance was achieved by employee dedication and customer focus . our ability to be competitive in the future will continue to be driven by our cost structure and efficiencies in assigning the right people , at the right time , on our contract work and functional services . saic annual report 23 part ii economic opportunities , challenges , and risks in fiscal 2014 , we generated greater than 90 % of our total revenues from contracts with the u.s. government and greater than 70 % of our total revenues from contracts with the dod , including subcontracts on which we perform . our business performance is affected by the overall level of u.s. government spending ( especially defense spending ) and the alignment of our offerings and capabilities with the budget priorities of the u.s. government . while we believe that national security , including defense , will continue to be a priority , the u.s. government budget deficit and the national u.s. debt has created pressure to examine and reduce spending across all federal agencies . baseline spending for the dod for the next 10 years has been reduced and there may be further reductions . adverse changes in fiscal and economic conditions , such as the manner in which spending reductions are implemented , including sequestration , future government shutdowns , and issues related to the nation 's debt ceiling , could materially impact our business . the u.s. government has increasingly relied on contracts that are subject to a competitive bidding process , including indefinite delivery/indefinite quantity ( idiq ) , u.s. general services administration ( gsa ) schedule and other multi-award contracts , which has resulted in greater competition and increased pricing pressure . we expect that a majority of the business that we seek in the foreseeable future will be awarded through a competitive bidding process . for example , during fiscal 2013 we were not awarded the successor contract to the disn global solutions ( dgs ) program with the defense information system agency . additionally , since 2011 , organizational conflict of interest ( oci ) rules have become more restrictive , leading to greater fragmentation of the industry . despite the budget and competitive pressures impacting the industry , we believe we are well-positioned to expand customer penetration and benefit from opportunities that we have not previously pursued . our scale , size and prime contractor leadership position are expected to help differentiate us from our competitors , especially on large contracts . we believe our long-term , trusted customer relationships and deep technical expertise provide us with the sophistication to handle mission-critical contracts . our current competitive cost structure , as well as our ongoing efforts to maintain or reduce costs by centralizing strategic sourcing and developing repeatable offerings , are expected to allow us to compete effectively on price in the evolving environment . additionally , due to the separation and the resulting removal of many oci restrictions , we believe we have enhanced our ability to expand market share with our existing customers and pursue new growth opportunities . results of operations the primary financial performance measures we use to manage our business and monitor results of operations are revenue , operating income , and cash flows from operating activities . the following table summarizes our results of operations for the periods presented : replace_table_token_5_th management believes that the presentation of operating income excluding separation transaction and restructuring expenses , as a percentage of revenues , which is a non-gaap financial measure , provides useful information to investors regarding the registrant 's financial condition and results of operations . we classify overhead costs as cost of revenues and general and administrative expenses as defined in our disclosure statements in accordance with u.s. government cost accounting standards ( cas ) . 24 saic annual report part ii fiscal 2014 compared to fiscal 2013 revenues . story_separator_special_tag our accounts receivable include both receivables billed to customers and unbilled receivables , which consist of costs and fees billable upon contract completion or the occurrence of a specified event , the majority of which is expected to be billed and collected within one year . unbilled receivables are stated at estimated realizable value . since our receivables 30 saic annual report part ii are primarily with the u.s. government , we do not have a material credit risk exposure . contract retentions are billed when we have negotiated final indirect rates with the u.s. government and , once billed , are subject to audit and approval by government representatives . consequently , the timing of collection of retention balances is outside our control . based on our historical experience , the majority of retention balances are expected to be collected beyond one year and write-offs of retention balances have not been significant . contract claims are unanticipated additional costs incurred but not provided for in the executed contract price that we seek to recover from the customer . such costs are expensed as incurred . revenue related to contract claims is recognized when the contract price is adjusted by the customer . goodwill and intangible assets impairment . we evaluate goodwill for potential impairment annually at the beginning of the fourth quarter , or whenever events or circumstances indicate that the carrying value of goodwill may not be recoverable . the goodwill impairment test is a two-step process performed at the reporting unit level . the first step consists of estimating the fair values of each of the reporting units based on a market approach . fair value computed using this method is determined using a number of factors , including projected future operating results and business plans , economic projections , anticipated future cash flows , comparable market data based on industry grouping , and the cost of capital . the estimated fair values are compared with the carrying values of the reporting units . if the fair value is less than the carrying value of a reporting unit , which includes the allocated goodwill , a second step is performed to compute the amount of the impairment by determining an implied fair value of goodwill . the implied fair value of goodwill is the residual fair value derived by deducting the fair value of a reporting unit 's identifiable assets and liabilities from its estimated fair value calculated in the first step . the impairment expense represents the excess of the carrying amount of the reporting unit 's goodwill over the implied fair value of the reporting unit 's goodwill . we face uncertainty in our business environment due to the substantial fiscal and economic challenges facing the u.s. government , its primary customer . adverse changes , such as the manner in which budget cuts are implemented , including sequestration , and issues related to the nation 's debt ceiling , could negatively impact our expected future operating results and potentially result in an impairment of goodwill . intangible assets with finite lives are assessed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable . we did not recognize any impairment losses on intangible assets during the last three fiscal years . income taxes . prior to the separation our operations were historically included in former parent 's u.s. federal and state income tax returns and all income taxes were paid by former parent . income taxes are presented in the consolidated and combined financial statements as if we filed our own tax returns on a separate tax return basis . income tax liabilities were assumed to be immediately settled with former parent against the parent company investment account . following the separation , we account for income taxes under the asset and liability method of accounting , which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities . under this method , changes in tax rates and laws are recognized in income in the period such changes are enacted . the provision for federal , state , foreign and local income taxes is calculated on income before income taxes based on current tax law and includes the cumulative effect of any changes in tax rates from those used previously in determining deferred tax assets and liabilities . such provision differs from the amounts currently payable because certain items of income and expense are recognized in different reporting periods for financial reporting purposes than for income tax purposes . recording our provision for income taxes requires management to make significant judgments and estimates for matters whose ultimate resolution may not become known until the final resolution of an examination by the irs or state agencies . additionally , recording liabilities for uncertain tax positions involves significant judgment in evaluating our tax positions and developing our best estimate of the taxes ultimately expected to be paid . we record net deferred tax assets to the extent we believe these assets will more likely than not be realized . in making such determination , we consider all available positive and negative evidence , including future reversals of existing taxable temporary differences , projected future taxable income , tax planning strategies and recent results of operations . if we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount or would no longer be able to realize our deferred income tax assets in the future as currently recorded , we would make an adjustment to the valuation allowance which would decrease or increase the provision for income taxes . we have also recognized liabilities for uncertain tax positions when it is more likely than not that a tax position will not be sustained upon examination

