derivative instruments and hedging activities as further consideration to the lenders under the credit agreement , bh/re has issued warrants to purchase membership interests held by bh/re in equityco . bh/re accounts for the outstanding warrants in equityco as embedded derivative instruments in accordance with sfas no . 133 ,  accounting for derivative instruments and hedging activities ,  and sfas no . 138 ,  accounting for certain derivative instruments and hedging activitiesan amendment of fasb statement no . 133  . in conjunction with the mezzanine financing , mezzco issued warrants to purchase membership interests in the fully diluted equity of mezzco which contain a net cash settlement , and therefore are accounted for in accordance with emerging issues task force ( eitf ) 00-19 ,  accounting for derivative financial instruments indexed to , and potentially settled in , a company 's own stock  . both sfas no . 133 and eitf 00-19 require that the warrants be recognized as liabilities , with changes in fair value affecting net income . see note 7. long-term debtmezzanine financing . promotional allowances casino revenues are recognized as the net win from gaming activities , which is the difference between gaming wins and losses . all other revenues are recognized as the service is provided . revenues include the retail value of food , beverage , rooms , entertainment , and merchandise provided on a complimentary basis to customers . such complimentary amounts are then deducted from revenues as promotional allowances on our consolidated statements of operations . the estimated departmental costs of providing such promotional allowances are included in casino costs and expenses . hotel and food and beverage revenues hotel revenue recognition criteria are generally met at the time of occupancy . food and beverage revenue recognition criteria are generally met at the time of service . deposits for future hotel occupancy or food and beverage services are recorded as deferred income until revenue recognition criteria are met . cancellation fees for hotel and food and beverage services are recognized upon cancellation by the customer as defined by a written contract entered into with the customer . players ' club program players ' club members earn points based on gaming activity , which can be redeemed for cash . we accrue expense related to this program as the points are earned based on historical redemption percentages . allowance for doubtful accounts reserves our receivables balances relate primarily to our hotel and casino operations . we reserve an estimated amount for receivables that may not be collected . we estimate the allowance for doubtful accounts by applying standard reserve percentages to aged account balances under a specific dollar amount and specifically analyzing the collectibility of each account with a balance over the specified dollar amount , 26 based on the age of the account , the customers ' financial condition , collection history and any other known information . the allowance for doubtful accounts as a percentage of receivables at december 31 , 2005 increased when compared to december 31 , 2004 primarily as a result of the increase in casino receivables . the increase in casino receviables is commensurate with the increase in marker play throughout 2005. we maintain strict controls over the issuance of markers and aggressively pursue collection from those customers who fail to pay their markers timely . markers are generally legally enforceable instruments in the united states and at december 31 , 2005 , all of our casino receivables were owed by customers in the united states . the following table summarizes our receivable balances ( in thousands ) : replace_table_token_2_th self-insurance accruals we are self-insured , up to certain limits , for costs associated with employee medical coverage . we accrue for the estimated expense of known claims , as well as estimates for claims incurred but not yet reported . income taxes the consolidated financial statements include the operations of bh/re and its controlled subsidiaries : equityco , mezzco , and opbiz . bh/re and equityco are limited liability companies and are taxed as partnerships for federal income tax purposes . mezzco has elected to be taxed as a corporation for federal income tax purposes . opbiz , a wholly-owned subsidiary of mezzco , will be treated as a division of mezzco for federal income tax purposes , and accordingly , will also be subject to federal income taxes . mezzco and opbiz account for income taxes in accordance with sfas no . 109 ,  accounting for income taxes  . sfas 109 requires the recognition of deferred income tax assets , net of applicable reserves , related to net operating loss carryforwards and certain temporary differences . the standard requires recognition of a future tax benefit to the extent that realization of such benefit is more likely than not . otherwise , a valuation allowance is applied . preopening costs we account for costs incurred during the preopening and start-up phases of operations in accordance with statement of position 98-5 ,  reporting on the costs of start-up activities  . preopening and start-up costs include , but are not limited to , salary related expenses for new employees , travel and entertainment expenses . preopening costs are expensed as incurred . membership interests as of december 31 , 2005 , our membership interests had not been unitized and our members do not presently intend to unitize these membership interests . accordingly , we have excluded earnings per 27 membership unit data required pursuant to sfas no . 128 ,  earnings per share ,  because we believe that such disclosures would not be meaningful to the financial statement presentation . the company has entered into various employment agreements , as amended , with several executives . the employment agreements have initial terms of two to five years . story_separator_special_tag % to $ 16.8 million for the year ended december 31 , 2004 as compared to $ 18.4 million for the year ended december 31 , 2003. other expenses decreased 15.6 % to $ 12.1 million for the year ended december 31 , 2004 as compared to $ 14.3 million for the year ended december 31 , 2003. the decrease in other revenues and other expenses was primarily due to fewer performances in the tpa during 2004 resulting in decreased revenue and expenses . selling , general and administrative ( sg & a ) sg & a expenses increased 21.9 % to $ 79.4 million for the year ended december 31 , 2005 as compared to $ 65.1 million for the year ended december 31 , 2004. sg & a expenses as a percentage of net revenues increased 3.2 percentage points in comparing the same twelve-month periods . the increase in sg & a expenses was primarily due to repair and maintenance expenses incurred in the fourth quarter and included painting the building and additional administrative office space . the addition of management bonuses and legal and professional fees , which were included in reorganization costs reported below the operating income line and not in sg & a by aladdin gaming in 2004 , also contributed to the increase in sg & a expenses when compared to prior year . sg & a expenses increased 5.5 % to $ 65.1 million for the year ended december 31 , 2004 as compared to $ 61.7 million for the year ended december 31 , 2003. sg & a expenses as a percentage of net revenues decreased 0.4 percentage points in comparing the same twelve-month periods . the increase in sg & a expenses was primarily due to an increase in payroll and related expenses , as well as the addition of management and centralized services fees incurred under the starwood management agreement beginning in september 2004. depreciation and amortization aladdin gaming did not record depreciation expense during 2004 , as the assets were classified as held for sale . as a result , depreciation expense for the year ended december 31 , 2005 , was significantly greater than the same period in the prior year . depreciation and amortization expense was approximately $ 23.6 million for the year ended december 31 , 2005 as compared to $ 7.8 million for the year ended december 31 , 2004 . 33 depreciation and amortization expense decreased 82.0 % to $ 7.8 million for the year ended december 31 , 2004 as compared to $ 43.5 million for the year ended december 31 , 2003. aladdin gaming was not recording depreciation expense during 2004 , as the assets were classified as held for sale . as a result , the depreciation expense for the year ended december 31 , 2004 was significantly less than in the prior year . net interest expense net interest expense increased to $ 55.0 million for the year ended december 31 , 2005 as compared to $ 19.1 million for the year ended december 31 , 2004. the increase in net interest expense is directly related to the addition of the credit agreement we entered into upon the completion of the acquisition of the aladdin on september 1 , 2004. see description of certain indebtedness below . net interest expense increased 92.7 % to $ 19.1 million for the year ended december 31 , 2004 as compared to $ 9.9 million for the year ended december 31 , 2003. the increase in net interest expense is directly related to the addition of the credit agreement we entered into upon the completion of the acquisition of the aladdin on september 1 , 2004. interest expense under the credit agreement is calculated quarterly and is based on the london inter-bank offered rate , or libor , plus an applicable margin . libor increased approximately 150 basis points throughout 2005 thereby increasing our average borrowing rate and related interest expense . the increases in libor resulted in approximately $ 3.7 million in additional interest expense for the year ended december 31 , 2005. financial impact of renovation of the aladdin as discussed in item 1a. risks related to the aladdin renovation , we have embarked upon a renovation plan that will transition the aladdin into the ph resort . the renovation project was substantially underway in january 2006 and is being conducted in phases to attempt to reduce disruption to our business to the extent practicable . our operating projections for 2006 assumed certain business level declines as a result of the renovation project . although the declines in hotel and casino operations have not been as great as anticipated , we have experienced greater declines than anticipated in other operating areas , particularly food and beverage . we believe that cost savings measures implemented to date will allow us to offset the noted declines and that we will operate within the parameters of the originally established operating projections throughout the renovation period in 2006. we can provide no assurance that we have accurately estimated our operating projections and that we will not experience additional unforeseen events that will adversely impact our operating results during the renovation period . story_separator_special_tag style= `` font-size:3.0pt ; `` > $ 1.25 million on the first day of each fiscal quarter during the period beginning on august 31 , 2006 and ending on august 31 , 2007 ; · $ 3.75 million on the first day of each fiscal quarter during the period beginning on august 31 , 2007 and ending on august 31 , 2008 ; · $ 5.0 million on the first day of each fiscal quarter during the period beginning on august 31 , 2008 and ending on august 31 , 2009 ; · $ 6.25 million on the first day of each fiscal quarter during the period beginning on august 31 , 2009 and ending on august 31 , 2010 ; and ·

liquidity and capital resources during the year ended december 31 , 2005 , the aladdin utilized cash flows from operating activities of approximately $ 4.6 million and had a balance of $ 41.4 million in cash and cash equivalents as of december 31 , 2005 , which was a $ 4.4 million increase over the balance as of december 31 , 2004. we also had restricted cash and cash equivalents of approximately $ 87.8 million , which is designated to be used for costs associated with the renovation of the aladdin to the ph resort . our primary cash requirements for 2006 are expected to include ( i ) up to approximately $ 100 million in capital expenditures related to the renovation project , ( ii ) approximately $ 21.2 million for maintenance capital expenditures and ( iii ) up to approximately $ 31.8 million in interest payments on our debt . we believe that cash generated from operations , the capital invested in opbiz at the closing and the working capital , including the cash , we acquired from aladdin gaming under the purchase agreement will be adequate to meet the anticipated working capital , capital expenditure , renovation and debt service 34 obligations of opbiz for the period that the aladdin is under renovation . we may have other liquidity needs , such as tax distributions to the members of equityco and bh/re . the credit agreement provides that opbiz will be permitted to make tax distributions . there can be no assurance that we have accurately estimated our liquidity needs , or that we will not experience unforeseen events that may materially increase our need for liquidity to fund our operations or capital expenditure programs or decrease the amount of cash generated from our operations .


 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 during the year ended december 31 , 2005 , the aladdin utilized cash flows from operating activities of approximately $ 4.6 million and had a balance of $ 41.4 million in cash and cash equivalents as of december 31 , 2005 , which was a $ 4.4 million increase over the balance as of december 31 , 2004. we also had restricted cash and cash equivalents of approximately $ 87.8 million , which is designated to be used for costs associated with the renovation of the aladdin to the ph resort . our primary cash requirements for 2006 are expected to include ( i ) up to approximately $ 100 million in capital expenditures related to the renovation project , ( ii ) approximately $ 21.2 million for maintenance capital expenditures and ( iii ) up to approximately $ 31.8 million in interest payments on our debt . we believe that cash generated from operations , the capital invested in opbiz at the closing and the working capital , including the cash , we acquired from aladdin gaming under the purchase agreement will be adequate to meet the anticipated working capital , capital expenditure , renovation and debt service 34 obligations of opbiz for the period that the aladdin is under renovation . we may have other liquidity needs , such as tax distributions to the members of equityco and bh/re . the credit agreement provides that opbiz will be permitted to make tax distributions . there can be no assurance that we have accurately estimated our liquidity needs , or that we will not experience unforeseen events that may materially increase our need for liquidity to fund our operations or capital expenditure programs or decrease the amount of cash generated from our operations .
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 Suspicious Activity Report : derivative instruments and hedging activities as further consideration to the lenders under the credit agreement , bh/re has issued warrants to purchase membership interests held by bh/re in equityco . bh/re accounts for the outstanding warrants in equityco as embedded derivative instruments in accordance with sfas no . 133 ,  accounting for derivative instruments and hedging activities ,  and sfas no . 138 ,  accounting for certain derivative instruments and hedging activitiesan amendment of fasb statement no . 133  . in conjunction with the mezzanine financing , mezzco issued warrants to purchase membership interests in the fully diluted equity of mezzco which contain a net cash settlement , and therefore are accounted for in accordance with emerging issues task force ( eitf ) 00-19 ,  accounting for derivative financial instruments indexed to , and potentially settled in , a company 's own stock  . both sfas no . 133 and eitf 00-19 require that the warrants be recognized as liabilities , with changes in fair value affecting net income . see note 7. long-term debtmezzanine financing . promotional allowances casino revenues are recognized as the net win from gaming activities , which is the difference between gaming wins and losses . all other revenues are recognized as the service is provided . revenues include the retail value of food , beverage , rooms , entertainment , and merchandise provided on a complimentary basis to customers . such complimentary amounts are then deducted from revenues as promotional allowances on our consolidated statements of operations . the estimated departmental costs of providing such promotional allowances are included in casino costs and expenses . hotel and food and beverage revenues hotel revenue recognition criteria are generally met at the time of occupancy . food and beverage revenue recognition criteria are generally met at the time of service . deposits for future hotel occupancy or food and beverage services are recorded as deferred income until revenue recognition criteria are met . cancellation fees for hotel and food and beverage services are recognized upon cancellation by the customer as defined by a written contract entered into with the customer . players ' club program players ' club members earn points based on gaming activity , which can be redeemed for cash . we accrue expense related to this program as the points are earned based on historical redemption percentages . allowance for doubtful accounts reserves our receivables balances relate primarily to our hotel and casino operations . we reserve an estimated amount for receivables that may not be collected . we estimate the allowance for doubtful accounts by applying standard reserve percentages to aged account balances under a specific dollar amount and specifically analyzing the collectibility of each account with a balance over the specified dollar amount , 26 based on the age of the account , the customers ' financial condition , collection history and any other known information . the allowance for doubtful accounts as a percentage of receivables at december 31 , 2005 increased when compared to december 31 , 2004 primarily as a result of the increase in casino receivables . the increase in casino receviables is commensurate with the increase in marker play throughout 2005. we maintain strict controls over the issuance of markers and aggressively pursue collection from those customers who fail to pay their markers timely . markers are generally legally enforceable instruments in the united states and at december 31 , 2005 , all of our casino receivables were owed by customers in the united states . the following table summarizes our receivable balances ( in thousands ) : replace_table_token_2_th self-insurance accruals we are self-insured , up to certain limits , for costs associated with employee medical coverage . we accrue for the estimated expense of known claims , as well as estimates for claims incurred but not yet reported . income taxes the consolidated financial statements include the operations of bh/re and its controlled subsidiaries : equityco , mezzco , and opbiz . bh/re and equityco are limited liability companies and are taxed as partnerships for federal income tax purposes . mezzco has elected to be taxed as a corporation for federal income tax purposes . opbiz , a wholly-owned subsidiary of mezzco , will be treated as a division of mezzco for federal income tax purposes , and accordingly , will also be subject to federal income taxes . mezzco and opbiz account for income taxes in accordance with sfas no . 109 ,  accounting for income taxes  . sfas 109 requires the recognition of deferred income tax assets , net of applicable reserves , related to net operating loss carryforwards and certain temporary differences . the standard requires recognition of a future tax benefit to the extent that realization of such benefit is more likely than not . otherwise , a valuation allowance is applied . preopening costs we account for costs incurred during the preopening and start-up phases of operations in accordance with statement of position 98-5 ,  reporting on the costs of start-up activities  . preopening and start-up costs include , but are not limited to , salary related expenses for new employees , travel and entertainment expenses . preopening costs are expensed as incurred . membership interests as of december 31 , 2005 , our membership interests had not been unitized and our members do not presently intend to unitize these membership interests . accordingly , we have excluded earnings per 27 membership unit data required pursuant to sfas no . 128 ,  earnings per share ,  because we believe that such disclosures would not be meaningful to the financial statement presentation . the company has entered into various employment agreements , as amended , with several executives . the employment agreements have initial terms of two to five years . story_separator_special_tag % to $ 16.8 million for the year ended december 31 , 2004 as compared to $ 18.4 million for the year ended december 31 , 2003. other expenses decreased 15.6 % to $ 12.1 million for the year ended december 31 , 2004 as compared to $ 14.3 million for the year ended december 31 , 2003. the decrease in other revenues and other expenses was primarily due to fewer performances in the tpa during 2004 resulting in decreased revenue and expenses . selling , general and administrative ( sg & a ) sg & a expenses increased 21.9 % to $ 79.4 million for the year ended december 31 , 2005 as compared to $ 65.1 million for the year ended december 31 , 2004. sg & a expenses as a percentage of net revenues increased 3.2 percentage points in comparing the same twelve-month periods . the increase in sg & a expenses was primarily due to repair and maintenance expenses incurred in the fourth quarter and included painting the building and additional administrative office space . the addition of management bonuses and legal and professional fees , which were included in reorganization costs reported below the operating income line and not in sg & a by aladdin gaming in 2004 , also contributed to the increase in sg & a expenses when compared to prior year . sg & a expenses increased 5.5 % to $ 65.1 million for the year ended december 31 , 2004 as compared to $ 61.7 million for the year ended december 31 , 2003. sg & a expenses as a percentage of net revenues decreased 0.4 percentage points in comparing the same twelve-month periods . the increase in sg & a expenses was primarily due to an increase in payroll and related expenses , as well as the addition of management and centralized services fees incurred under the starwood management agreement beginning in september 2004. depreciation and amortization aladdin gaming did not record depreciation expense during 2004 , as the assets were classified as held for sale . as a result , depreciation expense for the year ended december 31 , 2005 , was significantly greater than the same period in the prior year . depreciation and amortization expense was approximately $ 23.6 million for the year ended december 31 , 2005 as compared to $ 7.8 million for the year ended december 31 , 2004 . 33 depreciation and amortization expense decreased 82.0 % to $ 7.8 million for the year ended december 31 , 2004 as compared to $ 43.5 million for the year ended december 31 , 2003. aladdin gaming was not recording depreciation expense during 2004 , as the assets were classified as held for sale . as a result , the depreciation expense for the year ended december 31 , 2004 was significantly less than in the prior year . net interest expense net interest expense increased to $ 55.0 million for the year ended december 31 , 2005 as compared to $ 19.1 million for the year ended december 31 , 2004. the increase in net interest expense is directly related to the addition of the credit agreement we entered into upon the completion of the acquisition of the aladdin on september 1 , 2004. see description of certain indebtedness below . net interest expense increased 92.7 % to $ 19.1 million for the year ended december 31 , 2004 as compared to $ 9.9 million for the year ended december 31 , 2003. the increase in net interest expense is directly related to the addition of the credit agreement we entered into upon the completion of the acquisition of the aladdin on september 1 , 2004. interest expense under the credit agreement is calculated quarterly and is based on the london inter-bank offered rate , or libor , plus an applicable margin . libor increased approximately 150 basis points throughout 2005 thereby increasing our average borrowing rate and related interest expense . the increases in libor resulted in approximately $ 3.7 million in additional interest expense for the year ended december 31 , 2005. financial impact of renovation of the aladdin as discussed in item 1a. risks related to the aladdin renovation , we have embarked upon a renovation plan that will transition the aladdin into the ph resort . the renovation project was substantially underway in january 2006 and is being conducted in phases to attempt to reduce disruption to our business to the extent practicable . our operating projections for 2006 assumed certain business level declines as a result of the renovation project . although the declines in hotel and casino operations have not been as great as anticipated , we have experienced greater declines than anticipated in other operating areas , particularly food and beverage . we believe that cost savings measures implemented to date will allow us to offset the noted declines and that we will operate within the parameters of the originally established operating projections throughout the renovation period in 2006. we can provide no assurance that we have accurately estimated our operating projections and that we will not experience additional unforeseen events that will adversely impact our operating results during the renovation period . story_separator_special_tag style= `` font-size:3.0pt ; `` > $ 1.25 million on the first day of each fiscal quarter during the period beginning on august 31 , 2006 and ending on august 31 , 2007 ; · $ 3.75 million on the first day of each fiscal quarter during the period beginning on august 31 , 2007 and ending on august 31 , 2008 ; · $ 5.0 million on the first day of each fiscal quarter during the period beginning on august 31 , 2008 and ending on august 31 , 2009 ; · $ 6.25 million on the first day of each fiscal quarter during the period beginning on august 31 , 2009 and ending on august 31 , 2010 ; and ·

