for any given individual estimate or assumption we make , there may also be other estimates or assumptions that are reasonable . we believe that the following critical accounting policies require the use of significant estimates , assumptions , and judgments . the use of different estimates , assumptions , and judgments could have a material effect on the reported amounts of assets , liabilities , revenue , expenses , and related disclosures as of the date of the financial statements and during the reporting period . revenue recognition revenue is recognized when obligations under the terms of a contract with a customer are satisfied ; generally this occurs with the transfer of control of devices , supplies , or services . revenue is measured as the amount of consideration the company expects to receive in exchange for transferring goods or providing services . for the majority of devices and supplies , the company transfers control and recognizes revenue when products ship from the warehouse to the customer . the company generally does not provide rights of return on devices and supplies . freight charges billed to customers are included in revenue and freight-related expenses are charged to cost of revenue . depending on the terms of the arrangement , the company may also defer the recognition of a portion of the consideration received because it has to satisfy a future obligation ( e.g . installation ) . judgment is required to determine the standalone selling price ( “ ssp ” ) for each distinct performance obligation . the company 's estimate of ssp is a point estimate . the estimate is 31 calculated annually for each performance obligation that is not sold separately . in instances where ssp is not directly observable , such as when the company does not sell the product or service separately , the ssp is determined using information that may include market conditions and other observable inputs . the company sells separately-priced service contracts that extend maintenance coverages for both medical devices and data management systems beyond the base agreements to customers . the separately priced service contracts range from 12 months to 36 months . the company receives payment at the inception of the contract and recognizes revenue ratably over the service period . for products containing embedded software , the company determined the hardware and software components function together to deliver the products ' essential functionality and are considered a combined performance obligation . revenue recognition policies for sales of these products are substantially the same as for other tangible products . acquisition accounting we have made a number of acquisitions in the past and may continue to make acquisitions in the future . we account for acquired business combinations using the acquisition method of accounting . the assets acquired and liabilities assumed are recorded based on their respective fair values at the date of acquisition , with limited exceptions . valuations are generally completed for business acquisitions using a discounted cash flow analysis . the most significant estimates and assumptions inherent in a discounted cash flow analysis include the amount and timing of projected future cash flows , the discounted rate used to measure the risks inherent in the future cash flows , the assessment of the asset 's life cycle , and the competitive and other trends impacting the asset , including consideration of technical , legal , regulatory , economic and other factors . each of these factors and assumptions can significantly affect the value of the intangible asset . the excess of the fair value of consideration transferred over the fair value of the net assets acquired is recorded as goodwill . determining the useful life of an intangible asset also requires judgment , as different types of intangibles assets will have different useful lives and certain assets may even be considered to have indefinite useful lives . useful life is the period over which the intangible asset is expected to contribute directly and indirectly to our future cash flows . we determine the useful lives of intangible assets based on a number of factors , such as legal , regulatory , or contractual provisions that may limit the useful life , and the effects of obsolescence , anticipated demand , existence or absence of competition , and other economic factors on useful life . income taxes we account for income taxes under the asset and liability method . deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases , and for tax losses and tax credit carryforwards . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date . in assessing the realizability of deferred tax assets , management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized . we may record a valuation allowance if , based on all available positive and negative evidence , we determine that some portion of the deferred tax assets may not be realized prior to expiration . if we determine that we may be able to realize our deferred tax assets in the future excess of their net recorded amount , we would release the valuation allowance and recognize a discrete tax benefit during the period in which the determination was made . as part of the process of preparing our consolidated financial statements , we must estimate our income tax expense for each of the jurisdictions in which we operate . story_separator_special_tag as of december 31 , 2018 we have classified $ 35.0 million out of the $ 105.0 million outstanding as short-term on our balance sheet due to our intent to repay this portion over the next twelve months . we are not able to reasonably estimate the timing of any potential payments for uncertain tax positions under accounting standards codification ( `` asc `` ) 740 , accounting for uncertainty in income taxes—an interpretation of fasb statement 109 . as a result , the preceding table excludes any potential future payments related to our asc 740 liability for uncertain tax positions . see note 17 of our consolidated financial statements for further discussion on income taxes . quantitative and qualitative disclosures about market risk we are exposed to various market risks , including changes in foreign currency exchange rates and interest rates that could adversely affect our results of operations and financial condition . we are exposed to interest rate risk on our libor-indexed floating-rate debt . we have entered into an interest rate swap agreement to effectively covert a portion of our floating-rate debt to a fixed-rate . the principal objective of the swap contract is to reduce the variability of future earnings and cash flows associated with our floating-rate debt . we do not hold or issue derivative instruments for trading or other speculative purposes . foreign exchange rate risk we develop products in the u.s , canada , europe , and argentina , and sell those products into more than 100 countries throughout the world . as a result , our financial results could be affected by factors such as changes in foreign currency exchange rates or weak economic conditions in foreign markets . most of our sales in europe and asia are denominated in the u.s. dollar and euro and with a portion of our sales denominated in canadian dollar , argentine peso and british pound . as our sales in currencies other than the u.s. dollar increase , our exposure to foreign currency fluctuations may increase . in addition , changes in exchange rates also may affect the end-user prices of our products compared to those of our foreign competitors , who may be selling their products based on local currency pricing . these factors may make our products less competitive in some countries . if the u.s. dollar uniformly increased or decreased in strength by 10 % relative to the currencies in which our sales were denominated , our net income would have correspondingly increased or decreased by an immaterial amount for the year ended december 31 , 2018 . our interest expense is sensitive to changes in interest rates and may vary with the federal funds rate and london interbank offered rate ( libor ) . we may decrease interest rate risk by keeping our debt leverage low . a hypothetical decrease of 1,000 basis points in market interest rates would not result in a material decrease in interest expense paid on debt held at december 31 , 2018 . 40 all of the potential changes noted above are based on sensitivity analyses performed on our financial position as of december 31 , 2018 . actual results may differ as our analysis of the effects of changes in interest rates does not account for , among other things , sales of securities prior to maturity and repurchase of replacement securities , the change in mix or quality of the investments in the portfolio , and changes in the relationship between short-term and long-term interest rates . interest rate risk during 2018 , we entered into an interest rate swap agreement with a notional amount of $ 40.0 million , designated as a cash flow hedge , to hedge the variability of cash flows in interest payments associated with our floating-rate debt . this interest rate swap agreement matures in september 2021 and converts a portion of our libor floating-rate debt to fixed-rate debt . the fair value of the interest rate swap agreement is based upon inputs corroborated by observable market data . changes in the fair value of the interest rate swap agreement are recorded as a component of accumulated other comprehensive income ( loss ) within stockholders ' equity and are amortized to interest expense over the term of the related debt . as of december 31 , 2018 , accumulated other comprehensive income ( loss ) related to the interest rate swap agreement included a net unrealized loss of approximately $ 61 thousand , net of tax , which will be recognized in interest expense after the following 12 months , at the then current values on a pre-tax basis . see note 11 to these condensed consolidated financial statements for additional discussion on our financial instruments and derivatives . interest rate risk sensitivity analysis our remaining indebtedness is at variable rates of interest . accordingly , changes in interest rates would impact our results of operations in future periods . based on a sensitivity analysis on actual rates experienced during 2018 , a hypothetical increase in interest rates of 50 basis points would have resulted in increased interest expense of $ 0.6 million of the year ended december 31 , 2018. recent accounting pronouncements see note 1—organization and significant accounting policies to the consolidated financial statements contained herein for a full description of recent accounting pronouncements including the respective expected dates of adoption and effects on results of our operations and financial condition . cautionary information regarding forward looking statements this report contains forward-looking statements within the meaning of section 27a of the securities act of 1933 and section 21e of the securities exchange act of 1934 about natus medical incorporated . forward-looking statements can be identified by the words “ expects ” , “ anticipates ” , “ believes ” , “ intends ” , “ estimates ” , “ plans ” , “ will ” , “ outlook ” and similar expressions . forward-looking statements are based

liquidity and capital resources liquidity is our ability to generate sufficient cash flows from operating activities to meet our obligations and commitments . in addition , liquidity includes the ability to obtain appropriate financing and to raise capital . therefore , liquidity can not be considered separately from capital resources that consist of our current funds and the potential to increase those funds in the future . we plan to use these resources in meeting our commitments and in achieving our business objectives . we believe that our current cash and cash equivalents and any cash generated from operations will be sufficient to meet our ongoing operating requirements for the foreseeable future . as of december 31 , 2018 , we had cash and cash equivalents outside the u.s. in certain of our foreign operations of $ 46.8 million . we intend to permanently reinvest this cash held by our foreign subsidiaries except for excel-tech and natus ireland subsidiaries , which we intend to repatriate . if , however , a portion of these permanently reinvested funds were needed and distributed to our operations in the united states , we may be subject to additional u.s. income taxes and foreign withholding taxes depending on facts and circumstances at the time of distribution . the amount of taxes due would depend on the amount and manner of repatriation , as well as the location from where the funds were repatriated . on september 23 , 2016 , we entered into a credit agreement with jp morgan chase bank ( “ jp morgan ” ) and citibank , na ( “ citibank ” ) . the credit agreement provides for an aggregate $ 150.0 million of secured revolving credit facility ( the “ credit facility ” ) . on september 15 , 2017 , we exercised our right to increase the amount available under the facility by $ 75.0 million , bringing the aggregate revolving credit facility to $ 225.0 million .


 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 liquidity is our ability to generate sufficient cash flows from operating activities to meet our obligations and commitments . in addition , liquidity includes the ability to obtain appropriate financing and to raise capital . therefore , liquidity can not be considered separately from capital resources that consist of our current funds and the potential to increase those funds in the future . we plan to use these resources in meeting our commitments and in achieving our business objectives . we believe that our current cash and cash equivalents and any cash generated from operations will be sufficient to meet our ongoing operating requirements for the foreseeable future . as of december 31 , 2018 , we had cash and cash equivalents outside the u.s. in certain of our foreign operations of $ 46.8 million . we intend to permanently reinvest this cash held by our foreign subsidiaries except for excel-tech and natus ireland subsidiaries , which we intend to repatriate . if , however , a portion of these permanently reinvested funds were needed and distributed to our operations in the united states , we may be subject to additional u.s. income taxes and foreign withholding taxes depending on facts and circumstances at the time of distribution . the amount of taxes due would depend on the amount and manner of repatriation , as well as the location from where the funds were repatriated . on september 23 , 2016 , we entered into a credit agreement with jp morgan chase bank ( “ jp morgan ” ) and citibank , na ( “ citibank ” ) . the credit agreement provides for an aggregate $ 150.0 million of secured revolving credit facility ( the “ credit facility ” ) . on september 15 , 2017 , we exercised our right to increase the amount available under the facility by $ 75.0 million , bringing the aggregate revolving credit facility to $ 225.0 million .
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 Suspicious Activity Report : for any given individual estimate or assumption we make , there may also be other estimates or assumptions that are reasonable . we believe that the following critical accounting policies require the use of significant estimates , assumptions , and judgments . the use of different estimates , assumptions , and judgments could have a material effect on the reported amounts of assets , liabilities , revenue , expenses , and related disclosures as of the date of the financial statements and during the reporting period . revenue recognition revenue is recognized when obligations under the terms of a contract with a customer are satisfied ; generally this occurs with the transfer of control of devices , supplies , or services . revenue is measured as the amount of consideration the company expects to receive in exchange for transferring goods or providing services . for the majority of devices and supplies , the company transfers control and recognizes revenue when products ship from the warehouse to the customer . the company generally does not provide rights of return on devices and supplies . freight charges billed to customers are included in revenue and freight-related expenses are charged to cost of revenue . depending on the terms of the arrangement , the company may also defer the recognition of a portion of the consideration received because it has to satisfy a future obligation ( e.g . installation ) . judgment is required to determine the standalone selling price ( “ ssp ” ) for each distinct performance obligation . the company 's estimate of ssp is a point estimate . the estimate is 31 calculated annually for each performance obligation that is not sold separately . in instances where ssp is not directly observable , such as when the company does not sell the product or service separately , the ssp is determined using information that may include market conditions and other observable inputs . the company sells separately-priced service contracts that extend maintenance coverages for both medical devices and data management systems beyond the base agreements to customers . the separately priced service contracts range from 12 months to 36 months . the company receives payment at the inception of the contract and recognizes revenue ratably over the service period . for products containing embedded software , the company determined the hardware and software components function together to deliver the products ' essential functionality and are considered a combined performance obligation . revenue recognition policies for sales of these products are substantially the same as for other tangible products . acquisition accounting we have made a number of acquisitions in the past and may continue to make acquisitions in the future . we account for acquired business combinations using the acquisition method of accounting . the assets acquired and liabilities assumed are recorded based on their respective fair values at the date of acquisition , with limited exceptions . valuations are generally completed for business acquisitions using a discounted cash flow analysis . the most significant estimates and assumptions inherent in a discounted cash flow analysis include the amount and timing of projected future cash flows , the discounted rate used to measure the risks inherent in the future cash flows , the assessment of the asset 's life cycle , and the competitive and other trends impacting the asset , including consideration of technical , legal , regulatory , economic and other factors . each of these factors and assumptions can significantly affect the value of the intangible asset . the excess of the fair value of consideration transferred over the fair value of the net assets acquired is recorded as goodwill . determining the useful life of an intangible asset also requires judgment , as different types of intangibles assets will have different useful lives and certain assets may even be considered to have indefinite useful lives . useful life is the period over which the intangible asset is expected to contribute directly and indirectly to our future cash flows . we determine the useful lives of intangible assets based on a number of factors , such as legal , regulatory , or contractual provisions that may limit the useful life , and the effects of obsolescence , anticipated demand , existence or absence of competition , and other economic factors on useful life . income taxes we account for income taxes under the asset and liability method . deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases , and for tax losses and tax credit carryforwards . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date . in assessing the realizability of deferred tax assets , management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized . we may record a valuation allowance if , based on all available positive and negative evidence , we determine that some portion of the deferred tax assets may not be realized prior to expiration . if we determine that we may be able to realize our deferred tax assets in the future excess of their net recorded amount , we would release the valuation allowance and recognize a discrete tax benefit during the period in which the determination was made . as part of the process of preparing our consolidated financial statements , we must estimate our income tax expense for each of the jurisdictions in which we operate . story_separator_special_tag as of december 31 , 2018 we have classified $ 35.0 million out of the $ 105.0 million outstanding as short-term on our balance sheet due to our intent to repay this portion over the next twelve months . we are not able to reasonably estimate the timing of any potential payments for uncertain tax positions under accounting standards codification ( `` asc `` ) 740 , accounting for uncertainty in income taxes—an interpretation of fasb statement 109 . as a result , the preceding table excludes any potential future payments related to our asc 740 liability for uncertain tax positions . see note 17 of our consolidated financial statements for further discussion on income taxes . quantitative and qualitative disclosures about market risk we are exposed to various market risks , including changes in foreign currency exchange rates and interest rates that could adversely affect our results of operations and financial condition . we are exposed to interest rate risk on our libor-indexed floating-rate debt . we have entered into an interest rate swap agreement to effectively covert a portion of our floating-rate debt to a fixed-rate . the principal objective of the swap contract is to reduce the variability of future earnings and cash flows associated with our floating-rate debt . we do not hold or issue derivative instruments for trading or other speculative purposes . foreign exchange rate risk we develop products in the u.s , canada , europe , and argentina , and sell those products into more than 100 countries throughout the world . as a result , our financial results could be affected by factors such as changes in foreign currency exchange rates or weak economic conditions in foreign markets . most of our sales in europe and asia are denominated in the u.s. dollar and euro and with a portion of our sales denominated in canadian dollar , argentine peso and british pound . as our sales in currencies other than the u.s. dollar increase , our exposure to foreign currency fluctuations may increase . in addition , changes in exchange rates also may affect the end-user prices of our products compared to those of our foreign competitors , who may be selling their products based on local currency pricing . these factors may make our products less competitive in some countries . if the u.s. dollar uniformly increased or decreased in strength by 10 % relative to the currencies in which our sales were denominated , our net income would have correspondingly increased or decreased by an immaterial amount for the year ended december 31 , 2018 . our interest expense is sensitive to changes in interest rates and may vary with the federal funds rate and london interbank offered rate ( libor ) . we may decrease interest rate risk by keeping our debt leverage low . a hypothetical decrease of 1,000 basis points in market interest rates would not result in a material decrease in interest expense paid on debt held at december 31 , 2018 . 40 all of the potential changes noted above are based on sensitivity analyses performed on our financial position as of december 31 , 2018 . actual results may differ as our analysis of the effects of changes in interest rates does not account for , among other things , sales of securities prior to maturity and repurchase of replacement securities , the change in mix or quality of the investments in the portfolio , and changes in the relationship between short-term and long-term interest rates . interest rate risk during 2018 , we entered into an interest rate swap agreement with a notional amount of $ 40.0 million , designated as a cash flow hedge , to hedge the variability of cash flows in interest payments associated with our floating-rate debt . this interest rate swap agreement matures in september 2021 and converts a portion of our libor floating-rate debt to fixed-rate debt . the fair value of the interest rate swap agreement is based upon inputs corroborated by observable market data . changes in the fair value of the interest rate swap agreement are recorded as a component of accumulated other comprehensive income ( loss ) within stockholders ' equity and are amortized to interest expense over the term of the related debt . as of december 31 , 2018 , accumulated other comprehensive income ( loss ) related to the interest rate swap agreement included a net unrealized loss of approximately $ 61 thousand , net of tax , which will be recognized in interest expense after the following 12 months , at the then current values on a pre-tax basis . see note 11 to these condensed consolidated financial statements for additional discussion on our financial instruments and derivatives . interest rate risk sensitivity analysis our remaining indebtedness is at variable rates of interest . accordingly , changes in interest rates would impact our results of operations in future periods . based on a sensitivity analysis on actual rates experienced during 2018 , a hypothetical increase in interest rates of 50 basis points would have resulted in increased interest expense of $ 0.6 million of the year ended december 31 , 2018. recent accounting pronouncements see note 1—organization and significant accounting policies to the consolidated financial statements contained herein for a full description of recent accounting pronouncements including the respective expected dates of adoption and effects on results of our operations and financial condition . cautionary information regarding forward looking statements this report contains forward-looking statements within the meaning of section 27a of the securities act of 1933 and section 21e of the securities exchange act of 1934 about natus medical incorporated . forward-looking statements can be identified by the words “ expects ” , “ anticipates ” , “ believes ” , “ intends ” , “ estimates ” , “ plans ” , “ will ” , “ outlook ” and similar expressions . forward-looking statements are based

