we defer recognition of profit on projects until there is sufficient information to determine the estimated profit on the project with a reasonable level of certainty and our profit recognition is based on estimates that may change over time . our revenue , gross margin and cash flows can differ significantly from period to period due to a variety of factors , including the projects ' stage of completion , the mix of early and late stage projects , our estimates of contract costs , outstanding contract change orders and claims and the payment terms of our contracts . the timing differences between our cash inflows and outflows require us to maintain adequate levels of working capital . 23 the four primary economic drivers of our business are ( 1 ) the overall health of the economy ; ( 2 ) federal , state and local public funding levels ; ( 3 ) population growth resulting in public and private development ; and ( 4 ) the need to replace or repair aging infrastructure . a stagnant or declining economy will generally result in reduced demand for construction and construction materials in the private sector . this reduced demand increases competition for private sector projects and will ultimately also increase competition in the public sector as companies migrate from bidding on scarce private sector work to projects in the public sector . greater competition can reduce our revenues and or have a downward impact on our gross profit margins . in addition , a stagnant or declining economy tends to produce less tax revenue for public agencies , thereby decreasing a source of funds available for spending on public infrastructure improvements . some funding sources that have been specifically earmarked for infrastructure spending , such as diesel and gasoline taxes , are not as directly affected by a stagnant or declining economy , unless actual consumption is reduced . however , even these can be temporarily at risk as federal , state and local governments take actions to balance their budgets . additionally , high fuel prices and more fuel efficient vehicles can have a dampening effect on consumption , resulting in overall lower tax revenue . conversely , increased levels of public funding as well as an expanding or robust economy will generally increase demand for our services and provide opportunities for revenue growth and margin improvement . critical accounting policies and estimates the financial statements included in “ item 8. financial statements and supplementary data ” have been prepared in accordance with accounting principles generally accepted in the united states of america . the preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities , revenue and expenses , and related disclosure of contingent assets and liabilities . our estimates , judgments and assumptions are continually evaluated based on available information and experiences ; however , actual amounts could differ from those estimates . the following are accounting policies and estimates that involve significant management judgment and can have significant effects on the company 's reported results of operations . the audit & compliance committee of our board of directors has reviewed our disclosure of critical accounting policies and estimates . revenue and earnings recognition for construction contracts revenue and earnings on construction contracts , including construction joint ventures , are recognized under the percentage of completion method using the ratio of costs incurred to estimated total costs . revenue in an amount equal to cost incurred is recognized until there is sufficient information to determine the estimated profit on the project with a reasonable level of certainty . the factors considered in this evaluation include the stage of design completion , the stage of construction completion , the status of outstanding subcontracts or buyouts , certainty of quantities of labor and materials , certainty of schedule and the relationship with the owner . revenue from affirmative contract claims is recognized when we have a signed agreement and payment is assured . revenue from unapproved change orders is recognized to the extent the related costs have been incurred , the amount can be reliably estimated and recovery is probable , which is often when the owner has agreed to the change order in writing . provisions are recognized in the consolidated statements of operations for the full amount of estimated losses on uncompleted contracts whenever evidence indicates that the estimated total cost of a contract exceeds its estimated total revenue . all contract costs , including those associated with affirmative claims and unapproved change orders , are recorded as incurred and revisions to estimated total costs are reflected as soon as the obligation to perform exists . contract costs consist of direct costs on contracts , including labor and materials , amounts payable to subcontractors , direct overhead costs and equipment expense ( primarily depreciation , fuel , maintenance and repairs ) . all state and federal government contracts and many of our other contracts provide for termination of the contract at the convenience of the party contracting with us , with provisions to pay us for work performed through the date of termination . the accuracy of our revenue and profit recognition in a given period is dependent on the accuracy of our estimates of the cost to complete each project . cost estimates for all of our significant projects use a detailed “ bottom up ” approach and we believe our experience and process allows us to provide materially reliable estimates . however , there are a number of factors that can contribute to changes in estimates of contract cost and profitability . story_separator_special_tag future revisions to these estimated losses will be recorded in the periods in which the revisions are made . 31 gross profit the following table presents gross profit by business segment for the respective periods : replace_table_token_15_th construction gross profit in 2014 increased $ 12.5 million , or 11.8 % , compared to 2013 . construction gross margin as a percentage of segment revenue for 2014 increased to 10.0 % from 8.5 % in 2013 . improved project efficiency resulting from better utilization of vertically integrated construction materials partially offset the decline in revenue volume . large project construction gross profit in 2014 increased $ 40.8 million , or 56.8 % , compared to 2013 . large project construction gross margin as a percentage of segment revenue for 2014 increased to 13.6 % from 9.2 % in 2013 . the increases were due to increased revenue volume , claims settlements and an increase in the timing of recognition of deferred profit . construction materials gross profit in 2014 increased $ 11.8 million , or 166.6 % , compared to 2013 . construction materials gross margin as a percentage of segment revenue for 2014 increased to 7.2 % from 3.0 % in 2013 . the increases were primarily due to operating cost reductions in both the california and northwest groups enhanced by improved sales volumes and pricing . revenue in an amount equal to cost incurred is recognized until there is sufficient information to determine the estimated profit on the project with a reasonable level of certainty . gross profit can vary significantly in periods where previously deferred profit is recognized on one or more projects or , conversely , if we have outstanding claims that are not resolved or executed , in periods where contract backlog is growing rapidly and or a higher percentage of projects are in their early stages with no associated gross profit recognition . the following table presents revenue from projects that have not yet recognized profit : replace_table_token_16_th when we experience significant changes in our estimates of costs to complete , we undergo a process that includes reviewing the nature of the changes to ensure that there are no material amounts that should have been recorded in a prior period rather than as revisions in estimates for the current period . in our review of these changes for the years ended december 31 , 2014 , 2013 and 2012 , we did not identify any material amounts that should have been recorded in a prior period . unresolved contract modifications and claims to recover additional compensation for unanticipated additional costs to which the company believes it is entitled under the terms of the projects ' contracts are pending or have been submitted on certain projects . the projects ' owners or their authorized representatives and or other third parties may be in partial or full agreement with the request or proposed modification , or may have rejected or disagree entirely as to such entitlement . the potential gross profit impact of recoveries for contract modifications and claims may be material in future periods when claims , or a portion of such claims , against customers become probable and estimable or when claims against other third parties are settled . in addition , the company may incur additional costs when pursuing such potential recoveries . 32 selling , general and administrative expenses the following table presents the components of selling , general and administrative expenses for the respective periods : replace_table_token_17_th selling , general and administrative expenses for 2014 increased $ 3.9 million , or 1.9 % , compared to 2013 . selling expenses selling expenses include the costs for materials facility permits , business development , estimating and bidding . selling expenses can vary depending on the volume of projects in process and the number of employees assigned to estimating and bidding activities . as projects are completed or the volume of work slows down , we temporarily redeploy project employees to bid on new projects , moving their salaries and related costs from cost of revenue to selling expenses . selling expenses for 2014 increased $ 5.0 million , or 10.9 % , compared to 2013 . the increases were primarily due to increased bidding activity . general and administrative expenses general and administrative expenses include costs related to our operational offices that are not allocated to direct contract costs and expenses related to our corporate functions . these costs include variable cash and restricted stock performance-based incentives for select management personnel on which our compensation strategy heavily relies . the cash portion of these incentives is expensed when earned while the restricted stock portion is expensed as earned over the vesting period of the restricted stock award ( generally three years ) . other general and administrative expenses include travel and entertainment , outside services , information technology , depreciation , occupancy , training , office supplies , changes in the fair market value of our non-qualified deferred compensation plan liability and other miscellaneous expenses , none of which individually exceeded 10 % of total general and administrative expenses . total general and administrative expenses for 2014 remained relatively flat compared to 2013 . 33 restructuring and impairment ( gains ) charges , net the following table presents the components of restructuring and impairment ( gains ) charges , net during the respective periods ( in thousands ) : replace_table_token_18_th in 2010 , we announced our eip , which included actions to reduce our cost structure , enhance operating efficiencies and strengthen our business to achieve long-term profitable growth . the majority of restructuring charges associated with the eip were recorded in 2010. in 2011 , development activities were curtailed for the majority of our real estate development projects as divestiture efforts increased , and we recorded $ 1.5 million in additional restructuring charges associated with the sale or other disposition of three separate projects located in california . during 2012 , we

debt and contractual obligations the following table summarizes our significant obligations outstanding as of december 31 , 2014 : replace_table_token_25_th 1 included in the “ 1 - 3 years ” category in the table above is $ 40.0 million related to the first installment of the 2019 notes ( defined in senior notes payable section below ) that we have the intent and ability to refinance using our revolving credit facility or other source of financing . 2 included in the total is $ 0.4 million related to mortgages , the terms of which include a 6.00 % variable interest rate at december 31 , 2014 . also included in this balance is $ 4.8 million interest related to borrowings under our revolving credit facility , the terms of which include a variable interest rate that was 2.76 % at december 31 , 2014 using libor . in addition , included in the total is $ 36.7 million in interest related to borrowings under our senior notes , respectively , the terms of which include a 6.11 % per annum interest rate . the future payments were calculated using rates in effect as of december 31 , 2014 and may differ from actual results . see note 12 of “ notes to the consolidated financial statements. ” 3 these obligations represent the minimum rental commitments and minimum royalty requirements under all noncancellable operating leases . see note 18 of “ notes to the consolidated financial statements. ” 4 these obligations represent firm purchase commitments for equipment and other goods and services not connected with our construction contract backlog which are individually greater than $ 10,000 and have an expected fulfillment date after december 31 , 2014 . 5 the timing of expected payment of deferred compensation is based on estimated dates of retirement . actual dates of retirement could be different and could cause the timing of payments to change . 6 asset retirement obligations represent reclamation and other related costs associated with our owned and leased quarry properties , the majority of which have an estimated settlement date beyond five years ( see note 8 of “ notes to the consolidated financial statements ” ) .


 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.
     ```debt and contractual obligations the following table summarizes our significant obligations outstanding as of december 31 , 2014 : replace_table_token_25_th 1 included in the “ 1 - 3 years ” category in the table above is $ 40.0 million related to the first installment of the 2019 notes ( defined in senior notes payable section below ) that we have the intent and ability to refinance using our revolving credit facility or other source of financing . 2 included in the total is $ 0.4 million related to mortgages , the terms of which include a 6.00 % variable interest rate at december 31 , 2014 . also included in this balance is $ 4.8 million interest related to borrowings under our revolving credit facility , the terms of which include a variable interest rate that was 2.76 % at december 31 , 2014 using libor . in addition , included in the total is $ 36.7 million in interest related to borrowings under our senior notes , respectively , the terms of which include a 6.11 % per annum interest rate . the future payments were calculated using rates in effect as of december 31 , 2014 and may differ from actual results . see note 12 of “ notes to the consolidated financial statements. ” 3 these obligations represent the minimum rental commitments and minimum royalty requirements under all noncancellable operating leases . see note 18 of “ notes to the consolidated financial statements. ” 4 these obligations represent firm purchase commitments for equipment and other goods and services not connected with our construction contract backlog which are individually greater than $ 10,000 and have an expected fulfillment date after december 31 , 2014 . 5 the timing of expected payment of deferred compensation is based on estimated dates of retirement . actual dates of retirement could be different and could cause the timing of payments to change . 6 asset retirement obligations represent reclamation and other related costs associated with our owned and leased quarry properties , the majority of which have an estimated settlement date beyond five years ( see note 8 of “ notes to the consolidated financial statements ” ) .
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 Suspicious Activity Report : we defer recognition of profit on projects until there is sufficient information to determine the estimated profit on the project with a reasonable level of certainty and our profit recognition is based on estimates that may change over time . our revenue , gross margin and cash flows can differ significantly from period to period due to a variety of factors , including the projects ' stage of completion , the mix of early and late stage projects , our estimates of contract costs , outstanding contract change orders and claims and the payment terms of our contracts . the timing differences between our cash inflows and outflows require us to maintain adequate levels of working capital . 23 the four primary economic drivers of our business are ( 1 ) the overall health of the economy ; ( 2 ) federal , state and local public funding levels ; ( 3 ) population growth resulting in public and private development ; and ( 4 ) the need to replace or repair aging infrastructure . a stagnant or declining economy will generally result in reduced demand for construction and construction materials in the private sector . this reduced demand increases competition for private sector projects and will ultimately also increase competition in the public sector as companies migrate from bidding on scarce private sector work to projects in the public sector . greater competition can reduce our revenues and or have a downward impact on our gross profit margins . in addition , a stagnant or declining economy tends to produce less tax revenue for public agencies , thereby decreasing a source of funds available for spending on public infrastructure improvements . some funding sources that have been specifically earmarked for infrastructure spending , such as diesel and gasoline taxes , are not as directly affected by a stagnant or declining economy , unless actual consumption is reduced . however , even these can be temporarily at risk as federal , state and local governments take actions to balance their budgets . additionally , high fuel prices and more fuel efficient vehicles can have a dampening effect on consumption , resulting in overall lower tax revenue . conversely , increased levels of public funding as well as an expanding or robust economy will generally increase demand for our services and provide opportunities for revenue growth and margin improvement . critical accounting policies and estimates the financial statements included in “ item 8. financial statements and supplementary data ” have been prepared in accordance with accounting principles generally accepted in the united states of america . the preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities , revenue and expenses , and related disclosure of contingent assets and liabilities . our estimates , judgments and assumptions are continually evaluated based on available information and experiences ; however , actual amounts could differ from those estimates . the following are accounting policies and estimates that involve significant management judgment and can have significant effects on the company 's reported results of operations . the audit & compliance committee of our board of directors has reviewed our disclosure of critical accounting policies and estimates . revenue and earnings recognition for construction contracts revenue and earnings on construction contracts , including construction joint ventures , are recognized under the percentage of completion method using the ratio of costs incurred to estimated total costs . revenue in an amount equal to cost incurred is recognized until there is sufficient information to determine the estimated profit on the project with a reasonable level of certainty . the factors considered in this evaluation include the stage of design completion , the stage of construction completion , the status of outstanding subcontracts or buyouts , certainty of quantities of labor and materials , certainty of schedule and the relationship with the owner . revenue from affirmative contract claims is recognized when we have a signed agreement and payment is assured . revenue from unapproved change orders is recognized to the extent the related costs have been incurred , the amount can be reliably estimated and recovery is probable , which is often when the owner has agreed to the change order in writing . provisions are recognized in the consolidated statements of operations for the full amount of estimated losses on uncompleted contracts whenever evidence indicates that the estimated total cost of a contract exceeds its estimated total revenue . all contract costs , including those associated with affirmative claims and unapproved change orders , are recorded as incurred and revisions to estimated total costs are reflected as soon as the obligation to perform exists . contract costs consist of direct costs on contracts , including labor and materials , amounts payable to subcontractors , direct overhead costs and equipment expense ( primarily depreciation , fuel , maintenance and repairs ) . all state and federal government contracts and many of our other contracts provide for termination of the contract at the convenience of the party contracting with us , with provisions to pay us for work performed through the date of termination . the accuracy of our revenue and profit recognition in a given period is dependent on the accuracy of our estimates of the cost to complete each project . cost estimates for all of our significant projects use a detailed “ bottom up ” approach and we believe our experience and process allows us to provide materially reliable estimates . however , there are a number of factors that can contribute to changes in estimates of contract cost and profitability . story_separator_special_tag future revisions to these estimated losses will be recorded in the periods in which the revisions are made . 31 gross profit the following table presents gross profit by business segment for the respective periods : replace_table_token_15_th construction gross profit in 2014 increased $ 12.5 million , or 11.8 % , compared to 2013 . construction gross margin as a percentage of segment revenue for 2014 increased to 10.0 % from 8.5 % in 2013 . improved project efficiency resulting from better utilization of vertically integrated construction materials partially offset the decline in revenue volume . large project construction gross profit in 2014 increased $ 40.8 million , or 56.8 % , compared to 2013 . large project construction gross margin as a percentage of segment revenue for 2014 increased to 13.6 % from 9.2 % in 2013 . the increases were due to increased revenue volume , claims settlements and an increase in the timing of recognition of deferred profit . construction materials gross profit in 2014 increased $ 11.8 million , or 166.6 % , compared to 2013 . construction materials gross margin as a percentage of segment revenue for 2014 increased to 7.2 % from 3.0 % in 2013 . the increases were primarily due to operating cost reductions in both the california and northwest groups enhanced by improved sales volumes and pricing . revenue in an amount equal to cost incurred is recognized until there is sufficient information to determine the estimated profit on the project with a reasonable level of certainty . gross profit can vary significantly in periods where previously deferred profit is recognized on one or more projects or , conversely , if we have outstanding claims that are not resolved or executed , in periods where contract backlog is growing rapidly and or a higher percentage of projects are in their early stages with no associated gross profit recognition . the following table presents revenue from projects that have not yet recognized profit : replace_table_token_16_th when we experience significant changes in our estimates of costs to complete , we undergo a process that includes reviewing the nature of the changes to ensure that there are no material amounts that should have been recorded in a prior period rather than as revisions in estimates for the current period . in our review of these changes for the years ended december 31 , 2014 , 2013 and 2012 , we did not identify any material amounts that should have been recorded in a prior period . unresolved contract modifications and claims to recover additional compensation for unanticipated additional costs to which the company believes it is entitled under the terms of the projects ' contracts are pending or have been submitted on certain projects . the projects ' owners or their authorized representatives and or other third parties may be in partial or full agreement with the request or proposed modification , or may have rejected or disagree entirely as to such entitlement . the potential gross profit impact of recoveries for contract modifications and claims may be material in future periods when claims , or a portion of such claims , against customers become probable and estimable or when claims against other third parties are settled . in addition , the company may incur additional costs when pursuing such potential recoveries . 32 selling , general and administrative expenses the following table presents the components of selling , general and administrative expenses for the respective periods : replace_table_token_17_th selling , general and administrative expenses for 2014 increased $ 3.9 million , or 1.9 % , compared to 2013 . selling expenses selling expenses include the costs for materials facility permits , business development , estimating and bidding . selling expenses can vary depending on the volume of projects in process and the number of employees assigned to estimating and bidding activities . as projects are completed or the volume of work slows down , we temporarily redeploy project employees to bid on new projects , moving their salaries and related costs from cost of revenue to selling expenses . selling expenses for 2014 increased $ 5.0 million , or 10.9 % , compared to 2013 . the increases were primarily due to increased bidding activity . general and administrative expenses general and administrative expenses include costs related to our operational offices that are not allocated to direct contract costs and expenses related to our corporate functions . these costs include variable cash and restricted stock performance-based incentives for select management personnel on which our compensation strategy heavily relies . the cash portion of these incentives is expensed when earned while the restricted stock portion is expensed as earned over the vesting period of the restricted stock award ( generally three years ) . other general and administrative expenses include travel and entertainment , outside services , information technology , depreciation , occupancy , training , office supplies , changes in the fair market value of our non-qualified deferred compensation plan liability and other miscellaneous expenses , none of which individually exceeded 10 % of total general and administrative expenses . total general and administrative expenses for 2014 remained relatively flat compared to 2013 . 33 restructuring and impairment ( gains ) charges , net the following table presents the components of restructuring and impairment ( gains ) charges , net during the respective periods ( in thousands ) : replace_table_token_18_th in 2010 , we announced our eip , which included actions to reduce our cost structure , enhance operating efficiencies and strengthen our business to achieve long-term profitable growth . the majority of restructuring charges associated with the eip were recorded in 2010. in 2011 , development activities were curtailed for the majority of our real estate development projects as divestiture efforts increased , and we recorded $ 1.5 million in additional restructuring charges associated with the sale or other disposition of three separate projects located in california . during 2012 , we

