million for 2016 . please see footnotes 3 and 5 to the other financial and operating data table in “ item 6. selected financial data ” in this form 10-k for a reconciliation of revenue ex-tac to revenue and adjusted ebitda to net income , the most directly comparable financial measures calculated and presented in accordance with u.s. gaap . we are focused on maximizing revenue ex-tac . we believe this focus builds sustainable long-term value for our business and fortifies a number of our competitive strengths , including a highly liquid marketplace for display advertising . as part of this focus , we seek to maximize our percentage of overall marketing spend in the internet display advertising market over the long-term . in addition , this focus enriches liquidity for both advertisers and publishers resulting in more effective advertising for the advertiser , better monetization for the publisher and more relevant advertisements for the user . we believe our results of operations reflect this focus . acquisitions on november 9 , 2016 , we completed the acquisition of all of the outstanding shares of hooklogic , a new york-based company connecting many of the world 's largest e-commerce retailers with consumer brand manufacturers . we now offer hooklogic 's products under the `` criteo sponsored products `` name . please refer to note 2 to our audited consolidated financial statements included elsewhere in this form 10-k for further details . on may 31 , 2016 , we acquired all of the outstanding shares of monsieur drive , a paris-based company building advertising products for the consumer packaged goods vertical . please refer to note 2 to our audited consolidated financial statements included elsewhere in this form 10-k for further details . in february 2015 , we acquired datapop , a los angeles-based company specializing in the optimization of shopping campaigns on large search engines . we launched criteo predictive search in october 2016. in april 2014 , we completed the acquisition of adquantic , a bidding technology company headquartered in paris . through the acquisition of adquantic , we added a team of seven experts in bidding technology , reinforcing our focus on research and development . in february 2014 , we acquired tedemis , a provider of real-time personalized e-mail marketing solutions that help advertisers turn web visitors into customers . with the addition of tedemis , we extended our digital performance marketing solution to a new marketing channel . 67 transition to u.s. gaap and change in reporting currency as of june 30 , 2015 , we no longer met the requirements to qualify as a foreign private issuer under the exchange act . as a result , we began reporting as a domestic registrant as of january 1 , 2016 and we are required under current sec rules to prepare our financial statements in accordance with u.s. gaap , rather than ifrs , and to present our financial information in u.s. dollars instead of euros . the transition from consolidated financial statements under ifrs to u.s. gaap only impacted the presentation of our consolidated statement of financial position ( order of liquidity ) and of our consolidated statement of cash flows ( effect of exchange rate changes on cash and cash equivalents ) . the functional currency of the company remains the euro , while our reporting currency changed from the euro to the u.s. dollar . consequently , since we incur portions of our expenses and derive revenues in currencies other than the euro , we are exposed to foreign currency exchange risk as our results of operations and cash flows are subject to fluctuations in foreign currency exchange rates . foreign exchange risk exposure also arises from intra-company transactions and financing with subsidiaries that have a functional currency different than the euro . the statements of financial position of consolidated entities having a functional currency different from the u.s. dollar are translated into u.s. dollars at the closing exchange rate ( spot exchange rate at the statement of financial position date ) and the statements of income , statements of comprehensive income and statements of cash flow of such consolidated entities are translated at the average period to date exchange rate . the resulting translation adjustments are included in equity under the caption “ accumulated other comprehensive income ” in the consolidated statements of changes in equity . a. operating results . basis of presentation the key elements of our results of operations include : revenue we sell internet display advertisements featuring product-level recommendations either directly to clients or to advertising agencies , which we collectively refer to as our clients . we generate revenue generally when a user clicks on a banner advertisement of one of our advertiser clients . while accessing publishers ' supply of inventory in sufficient quantity and quality is a critical requirement for us to successfully conduct our business , we do not generate any revenue directly from our relationships with publishers . in the specific case of criteo predictive search , we do not not price our service on a cpc basis and get paid a percentage of sales generated by a client 's google shopping campaigns , which means we only get paid for completed sales . we recognize revenue from the delivery of display advertisements in the period in which the display advertisements are delivered . specifically , we recognize revenue for display ad delivery through our solution once the consumer clicks on the personalized banner displayed by us on the client 's website for cpc ad campaigns . for cpc ad campaigns , sales are valued at the fair value of the amount received . rebates and discounts granted to clients , along with free or extended advertising campaigns , are recorded as a deduction from revenue . essentially all of our revenue in each of 2014 , 2015 and 2016 was derived from advertising campaigns sold on a cpc basis . story_separator_special_tag in determining whether we act as the principal or an agent , we follow the accounting guidance for principal-agent considerations . the determination of whether we are acting as a principal or an agent in a transaction involves judgment and is based on an evaluation of the terms of each arrangement . while none of the factors individually are considered presumptive or determinative , because we are the primary obligor and are responsible for ( 1 ) identifying and contracting with third-party clients , ( 2 ) establishing the selling prices of the display advertisements sold , ( 3 ) performing all billing and collection activities , including retaining credit risk , and ( 4 ) bearing sole responsibility for fulfillment of the advertising and the inventory risk , we act as the principal in these arrangements and therefore report revenue earned and costs incurred related to these transactions on a gross basis . with criteo predictive search , we do not purchase search inventory ourselves ; our advertiser clients have direct access to google shopping inventory and buy such inventory themselves . as a result of not incurring inventory costs related to these transactions , we act as an agent for our clients with respect to these transactions . consequently , revenue for criteo predictive search is reported on a net basis . in the specific case of criteo sponsored products , we may act as the principal or as the agent depending on the type of service sold to the advertiser . as a result , depending on the service sold through criteo sponsored products , we report revenue earned and costs incurred related to these transactions on a gross basis or on a net basis . trade receivables , net of allowances for doubtful accounts we carry our accounts receivable at net realizable value . on a periodic basis , our management evaluates our accounts receivable and determines whether to provide an allowance or if any accounts should be written down and charged to expense as a bad debt . the evaluation is based on a past history of collections , current credit conditions , the length of time the trade receivable is past due and a past history of write downs . a trade receivable is considered past due if we have not received payments based on agreed-upon terms . a higher default rate than estimated or a deterioration in our major clients ' creditworthiness could have an adverse impact on our future results . allowances for doubtful accounts on trade receivables are recorded in “ sales and operations ” in our consolidated statements of income . we generally do not require any security or collateral to support our trade receivables . the amount of allowance for doubtful accounts charged to our consolidated statements of income for the years ended december 31 , 2014 , 2015 and 2016 was $ 1.3 million , $ 2.7 million and $ 5.4 million , respectively and represented 0.7 % , 1.1 % and 1.5 % of our trade receivables , net of allowances , as of december 31 , 2014 , 2015 , and 2016 , respectively . 72 deferred tax assets deferred taxes are recorded on all temporary differences between the financial reporting and tax bases of assets and liabilities , and on tax losses , using the liability method . differences are defined as temporary when they are expected to reverse within a foreseeable future . we may only recognize deferred tax assets if , based on the projected taxable incomes within the next three years , we determine that it is probable that future taxable profit will be available against which the unused tax losses and tax credits can be utilized . as a result , the measurement of deferred income tax assets is reduced , if necessary , by a valuation allowance for any tax benefits which are not expected to be realized . if future taxable profits are considerably different from those forecasted that support recording deferred tax assets , we will have to revise downwards or upwards the amount of the deferred tax assets , which would have a significant impact on our financial results . this determination requires many estimates and judgments by our management for which the ultimate tax determination may be uncertain . amounts recognized in our consolidated financial statements are calculated at the level of each subsidiary within our consolidated financial statements . as at december 31 , 2014 , 2015 and 2016 , the valuation allowance against net deferred taxes amounted to $ 26.1 million , $ 24.0 million and $ 19.9 million , respectively . it mainly related to criteo corp. ( $ 13.9 million , $ 12.4 million and $ 0.9 million , respectively ) , criteo do brasil ( $ 2.6 million , $ 3.9 million and $ 3.6 million , respectively ) , criteo ltd ( united kingdom ) ( $ 7.7 million , $ 4.7 million and $ 4.7 million , respectively ) , criteo china ( $ 0.8 million , $ 1.4 million and $ 3.7 million , respectively ) and criteo france ( $ 0.7 million , $ 0.6 million and $ 3.0 million , respectively ) . business combinations we apply the provisions of asc topic 805 business combinations ( topic 805 ) for our acquisitions . it requires us to recognize separately from goodwill , the assets acquired and the liabilities assumed at their acquisition date fair values . goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed . while we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration , where applicable , our estimates are inherently uncertain and subject to refinement . as a result , during the measurement period ,

liquidity and capital resources . market risk we are mainly exposed to changes of foreign currency exchange rate fluctuations . the functional currency of the company is the euro , while our reporting currency is the u.s. dollars . consequently , as a first step , since we incur portions of our expenses and derive revenues in currencies other than the euro , we are exposed to foreign currency exchange risk as our results of operations and cash flows are subject to fluctuations in foreign currency exchange rates . foreign exchange risk exposure also arises from intra-company transactions and financing with subsidiaries that have a functional currency different than the euro . the statements of financial position of consolidated entities having a functional currency different from the u.s. dollar are translated into u.s. dollars at the closing exchange rate ( spot exchange rate at the statement of financial position date ) and the statement of income , statement of comprehensive income and statement of cash flow of such consolidated entities are translated at the average period to date exchange rate . the resulting translation adjustments are included in equity under the caption “ accumulated other comprehensive income ” in the consolidated statement of changes in equity . the significant foreign exchange income of $ 10.1 million for the period ended december 31 , 2014 was primarily a result of the translation of $ 90 million of our initial public offering proceeds into euros at the foreign exchange closing rate , then translated into the u.s. dollar according to the average exchange rate euro / u.s. dollar generating a $ 11.8 million gain , partially offset by the cost of premiums on related hedging instruments ( $ 2.9 million ) . the material foreign exchange loss for the period ended december 31 , 2015 was mainly a result of the weakening of the brazilian real which resulted in losses on intra-group positions denominated in this currency , associated with a higher related cost of hedging and partially offset by the gain realized on the sale of the $ 70 million remaining from our initial public offering proceeds .


 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 . market risk we are mainly exposed to changes of foreign currency exchange rate fluctuations . the functional currency of the company is the euro , while our reporting currency is the u.s. dollars . consequently , as a first step , since we incur portions of our expenses and derive revenues in currencies other than the euro , we are exposed to foreign currency exchange risk as our results of operations and cash flows are subject to fluctuations in foreign currency exchange rates . foreign exchange risk exposure also arises from intra-company transactions and financing with subsidiaries that have a functional currency different than the euro . the statements of financial position of consolidated entities having a functional currency different from the u.s. dollar are translated into u.s. dollars at the closing exchange rate ( spot exchange rate at the statement of financial position date ) and the statement of income , statement of comprehensive income and statement of cash flow of such consolidated entities are translated at the average period to date exchange rate . the resulting translation adjustments are included in equity under the caption “ accumulated other comprehensive income ” in the consolidated statement of changes in equity . the significant foreign exchange income of $ 10.1 million for the period ended december 31 , 2014 was primarily a result of the translation of $ 90 million of our initial public offering proceeds into euros at the foreign exchange closing rate , then translated into the u.s. dollar according to the average exchange rate euro / u.s. dollar generating a $ 11.8 million gain , partially offset by the cost of premiums on related hedging instruments ( $ 2.9 million ) . the material foreign exchange loss for the period ended december 31 , 2015 was mainly a result of the weakening of the brazilian real which resulted in losses on intra-group positions denominated in this currency , associated with a higher related cost of hedging and partially offset by the gain realized on the sale of the $ 70 million remaining from our initial public offering proceeds .
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 Suspicious Activity Report : million for 2016 . please see footnotes 3 and 5 to the other financial and operating data table in “ item 6. selected financial data ” in this form 10-k for a reconciliation of revenue ex-tac to revenue and adjusted ebitda to net income , the most directly comparable financial measures calculated and presented in accordance with u.s. gaap . we are focused on maximizing revenue ex-tac . we believe this focus builds sustainable long-term value for our business and fortifies a number of our competitive strengths , including a highly liquid marketplace for display advertising . as part of this focus , we seek to maximize our percentage of overall marketing spend in the internet display advertising market over the long-term . in addition , this focus enriches liquidity for both advertisers and publishers resulting in more effective advertising for the advertiser , better monetization for the publisher and more relevant advertisements for the user . we believe our results of operations reflect this focus . acquisitions on november 9 , 2016 , we completed the acquisition of all of the outstanding shares of hooklogic , a new york-based company connecting many of the world 's largest e-commerce retailers with consumer brand manufacturers . we now offer hooklogic 's products under the `` criteo sponsored products `` name . please refer to note 2 to our audited consolidated financial statements included elsewhere in this form 10-k for further details . on may 31 , 2016 , we acquired all of the outstanding shares of monsieur drive , a paris-based company building advertising products for the consumer packaged goods vertical . please refer to note 2 to our audited consolidated financial statements included elsewhere in this form 10-k for further details . in february 2015 , we acquired datapop , a los angeles-based company specializing in the optimization of shopping campaigns on large search engines . we launched criteo predictive search in october 2016. in april 2014 , we completed the acquisition of adquantic , a bidding technology company headquartered in paris . through the acquisition of adquantic , we added a team of seven experts in bidding technology , reinforcing our focus on research and development . in february 2014 , we acquired tedemis , a provider of real-time personalized e-mail marketing solutions that help advertisers turn web visitors into customers . with the addition of tedemis , we extended our digital performance marketing solution to a new marketing channel . 67 transition to u.s. gaap and change in reporting currency as of june 30 , 2015 , we no longer met the requirements to qualify as a foreign private issuer under the exchange act . as a result , we began reporting as a domestic registrant as of january 1 , 2016 and we are required under current sec rules to prepare our financial statements in accordance with u.s. gaap , rather than ifrs , and to present our financial information in u.s. dollars instead of euros . the transition from consolidated financial statements under ifrs to u.s. gaap only impacted the presentation of our consolidated statement of financial position ( order of liquidity ) and of our consolidated statement of cash flows ( effect of exchange rate changes on cash and cash equivalents ) . the functional currency of the company remains the euro , while our reporting currency changed from the euro to the u.s. dollar . consequently , since we incur portions of our expenses and derive revenues in currencies other than the euro , we are exposed to foreign currency exchange risk as our results of operations and cash flows are subject to fluctuations in foreign currency exchange rates . foreign exchange risk exposure also arises from intra-company transactions and financing with subsidiaries that have a functional currency different than the euro . the statements of financial position of consolidated entities having a functional currency different from the u.s. dollar are translated into u.s. dollars at the closing exchange rate ( spot exchange rate at the statement of financial position date ) and the statements of income , statements of comprehensive income and statements of cash flow of such consolidated entities are translated at the average period to date exchange rate . the resulting translation adjustments are included in equity under the caption “ accumulated other comprehensive income ” in the consolidated statements of changes in equity . a. operating results . basis of presentation the key elements of our results of operations include : revenue we sell internet display advertisements featuring product-level recommendations either directly to clients or to advertising agencies , which we collectively refer to as our clients . we generate revenue generally when a user clicks on a banner advertisement of one of our advertiser clients . while accessing publishers ' supply of inventory in sufficient quantity and quality is a critical requirement for us to successfully conduct our business , we do not generate any revenue directly from our relationships with publishers . in the specific case of criteo predictive search , we do not not price our service on a cpc basis and get paid a percentage of sales generated by a client 's google shopping campaigns , which means we only get paid for completed sales . we recognize revenue from the delivery of display advertisements in the period in which the display advertisements are delivered . specifically , we recognize revenue for display ad delivery through our solution once the consumer clicks on the personalized banner displayed by us on the client 's website for cpc ad campaigns . for cpc ad campaigns , sales are valued at the fair value of the amount received . rebates and discounts granted to clients , along with free or extended advertising campaigns , are recorded as a deduction from revenue . essentially all of our revenue in each of 2014 , 2015 and 2016 was derived from advertising campaigns sold on a cpc basis . story_separator_special_tag in determining whether we act as the principal or an agent , we follow the accounting guidance for principal-agent considerations . the determination of whether we are acting as a principal or an agent in a transaction involves judgment and is based on an evaluation of the terms of each arrangement . while none of the factors individually are considered presumptive or determinative , because we are the primary obligor and are responsible for ( 1 ) identifying and contracting with third-party clients , ( 2 ) establishing the selling prices of the display advertisements sold , ( 3 ) performing all billing and collection activities , including retaining credit risk , and ( 4 ) bearing sole responsibility for fulfillment of the advertising and the inventory risk , we act as the principal in these arrangements and therefore report revenue earned and costs incurred related to these transactions on a gross basis . with criteo predictive search , we do not purchase search inventory ourselves ; our advertiser clients have direct access to google shopping inventory and buy such inventory themselves . as a result of not incurring inventory costs related to these transactions , we act as an agent for our clients with respect to these transactions . consequently , revenue for criteo predictive search is reported on a net basis . in the specific case of criteo sponsored products , we may act as the principal or as the agent depending on the type of service sold to the advertiser . as a result , depending on the service sold through criteo sponsored products , we report revenue earned and costs incurred related to these transactions on a gross basis or on a net basis . trade receivables , net of allowances for doubtful accounts we carry our accounts receivable at net realizable value . on a periodic basis , our management evaluates our accounts receivable and determines whether to provide an allowance or if any accounts should be written down and charged to expense as a bad debt . the evaluation is based on a past history of collections , current credit conditions , the length of time the trade receivable is past due and a past history of write downs . a trade receivable is considered past due if we have not received payments based on agreed-upon terms . a higher default rate than estimated or a deterioration in our major clients ' creditworthiness could have an adverse impact on our future results . allowances for doubtful accounts on trade receivables are recorded in “ sales and operations ” in our consolidated statements of income . we generally do not require any security or collateral to support our trade receivables . the amount of allowance for doubtful accounts charged to our consolidated statements of income for the years ended december 31 , 2014 , 2015 and 2016 was $ 1.3 million , $ 2.7 million and $ 5.4 million , respectively and represented 0.7 % , 1.1 % and 1.5 % of our trade receivables , net of allowances , as of december 31 , 2014 , 2015 , and 2016 , respectively . 72 deferred tax assets deferred taxes are recorded on all temporary differences between the financial reporting and tax bases of assets and liabilities , and on tax losses , using the liability method . differences are defined as temporary when they are expected to reverse within a foreseeable future . we may only recognize deferred tax assets if , based on the projected taxable incomes within the next three years , we determine that it is probable that future taxable profit will be available against which the unused tax losses and tax credits can be utilized . as a result , the measurement of deferred income tax assets is reduced , if necessary , by a valuation allowance for any tax benefits which are not expected to be realized . if future taxable profits are considerably different from those forecasted that support recording deferred tax assets , we will have to revise downwards or upwards the amount of the deferred tax assets , which would have a significant impact on our financial results . this determination requires many estimates and judgments by our management for which the ultimate tax determination may be uncertain . amounts recognized in our consolidated financial statements are calculated at the level of each subsidiary within our consolidated financial statements . as at december 31 , 2014 , 2015 and 2016 , the valuation allowance against net deferred taxes amounted to $ 26.1 million , $ 24.0 million and $ 19.9 million , respectively . it mainly related to criteo corp. ( $ 13.9 million , $ 12.4 million and $ 0.9 million , respectively ) , criteo do brasil ( $ 2.6 million , $ 3.9 million and $ 3.6 million , respectively ) , criteo ltd ( united kingdom ) ( $ 7.7 million , $ 4.7 million and $ 4.7 million , respectively ) , criteo china ( $ 0.8 million , $ 1.4 million and $ 3.7 million , respectively ) and criteo france ( $ 0.7 million , $ 0.6 million and $ 3.0 million , respectively ) . business combinations we apply the provisions of asc topic 805 business combinations ( topic 805 ) for our acquisitions . it requires us to recognize separately from goodwill , the assets acquired and the liabilities assumed at their acquisition date fair values . goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed . while we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration , where applicable , our estimates are inherently uncertain and subject to refinement . as a result , during the measurement period ,

