57 2016 form 10-k our kfc restaurants are the leading qsr brand in the prc in terms of system sales and number of restaurants . as of december 31 , 2016 , kfc operated over 5 , 2 00 restaurants in over 1,100 cities across china . measured by number of restaurants , we believe kfc has a two-to-one lead over the nearest western qsr competitor in china and kfc continues to grow in both large and small cities . similarly , pizza hut casual dining is the leading cdr concept in china as measured by system sales and number of restaurants . we believe pizza hut casual dining , with over 1 , 7 00 restaurants in over 400 cities as of december 31 , 2016 , has an approximately six-to-one lead in terms of restaurants over its nearest western cdr competitor in china . the operations of each of the concept represent an operating segment of the company within these consolidated and combined financial statements . we have two reportable segments : kfc and pizza hut casual dining . our remaining operating segments , including the operations of pizza hut home service , east dawning , little sheep and taco bell , are combined and referred to as all other segments , as those operating segments are insignificant both individually and in the aggregate . we intend for this md & a to provide the reader with information that will assist in understanding our results of operations , including metrics that management uses to assess the company 's performance . throughout this md & a , we discuss the following performance metrics : the company provides certain percentage changes excluding the impact of foreign currency translation ( “ f/x ” ) . these amounts are derived by translating current year results at prior year average exchange rates . we believe the elimination of the f/x impact provides better year-to-year comparability without the distortion of foreign currency fluctuations . system sales growth includes the results of all restaurants regardless of ownership , including company-owned , franchise and unconsolidated affiliate restaurants that operate our concepts , except for non-company-owned restaurants for which we do not receive a sales-based royalty . sales of franchise and unconsolidated affiliate restaurants typically generate ongoing franchise fees for the company at a rate of approximately 6 % of system sales . franchise and unconsolidated affiliate restaurant sales are not included in company sales on the consolidated and combined statements of income ; however , the franchise fees are included in the company 's revenues . we believe system sales growth is useful to investors as a significant indicator of the overall strength of our business as it incorporates all of our revenue drivers , company and franchise same-store sales as well as net unit growth . same-store sales growth is the estimated percentage change in sales of all restaurants that have been open and in the company system one year or more . company restaurant profit ( “ restaurant profit ” ) is defined as company sales less expenses incurred directly by our company-owned restaurants in generating company sales . company restaurant margin as a percentage of sales is defined as restaurant profit divided by company sales . within the company sales and restaurant profit analysis , store portfolio actions represent the net impact of new unit openings , acquisitions , refranchising and store closures , and other primarily represents the impact of same-store sales as well as the impact of changes in costs such as inflation/deflation . 58 2016 form 10-k in addition to the results provided in accordance with gaap throughout this md & a , the company provides non-gaap measurements which present operating profit before special items , diluted earnings ( loss ) per common share before special items , effective tax rate before special items and adjusted ebitda . included in special items are r eversal of ( provision for ) losses associated with sales of aircraft , incremental restaurant-level impairment upon separation , c hange s in fair value of financial instruments and impact of the redemption of the little sheep noncontrolling interest . the company excludes impact from special items for the purpose of evaluating performance internally . special items are not included in any of our segment results . these non-gaap measures are not intended to replace the presentation of our financial results in accordance with gaap . rather , the company believes that the presentation of these non-gaap measures provides additional information to investors to facilitate the comparison of past and present results , excluding those items that the company does not believe are indicative of our ongoing operations due to their nature . results of operations summary all comparisons within this summary are versus the same period a year ago and exclude the impact of special items . all system sales growth , same-store sales growth and operating profit comparisons exclude the impact of foreign currency . refer to item 1. business for a discussion on the seasonality of our operations . in 2014 , the company 's sales and profits were significantly impacted by adverse publicity surrounding improper food handling practices by a former supplier . specifically , on july 20 , 2014 , an undercover report was televised in china depicting improper food handling practices by supplier shanghai husi , a division of osi , which is a large , global supplier to many in the restaurant industry . this triggered extensive news coverage in china that shook consumer confidence and impacted brand usage . immediately following the incident , we experienced a significant , negative impact to sales and profits at both kfc and pizza hut casual dining . for further information about the potential impact of food safety risks on our business , see “ item 1a . risk factors—risks related to our business and industry—food safety and food-borne illness concerns may have an adverse effect on our reputation and business . story_separator_special_tag consolidated and combined cash flows net cash provided by operating activities was $ 864 million in 2016 as compared to $ 910 million in 2015. the decrease was primarily driven by increased inventory procurement and timing of payments for inventory , and a related increase in accounts receivable driven by amounts due from franchisees and unconsolidated affiliates as the company adopted a central procurement model in august 2016 , and an increase in vat credit asset associated with the benefit from the retail tax structure reform , partially offset by higher operating profit . in 2015 , net cash provided by operating activities was $ 910 million as compared to $ 775 million in 2014. the increase was primarily due to the timing of payments for inventory , lower tax payments and higher operating profit . story_separator_special_tag cellpadding= `` 0 `` cellspacing= `` 0 `` style= `` border-collapse : collapse ; width:100 % ; `` > ( b ) purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on us and that specify all significant terms , including : fixed or minimum quantities to be purchased ; fixed , minimum or variable price provisions ; and the approximate timing of the transaction . we have excluded agreements that are cancelable without penalty . purchase obligations relate primarily to supply agreements . we have not included in the contractual obligations table approximately $ 31 million of liabilities for unrecognized tax benefits relating to various tax positions we have taken . these liabilities may increase or decrease over time as a result of tax examinations , and given the status of the examinations , we can not reliably estimate the period of any cash settlement with the respective taxing authorities . these liabilities exclude amounts that are temporary in nature and for which we anticipate that over time there will be no net cash outflow . off-balance sheet arrangements see the unconsolidated affiliates guarantees sections of note 19 for discussion of our off-balance sheet arrangements . 72 2016 form 10-k recently adopted accounting pronouncements and new accounting pronouncements not yet adopted in may 2014 , the financial accounting standards board ( “ fasb ” ) issued asu no . 2014-09 , revenue from contracts with customers ( topic 606 ) ( asu 2014-09 ) , to provide principles within a single framework for revenue recognition of transactions involving contracts with customers across all industries . in july 2015 , the fasb approved a one-year deferral of the effective date of the new revenue standard . asu 2014-09 is now effective for the company in our first quarter of fiscal 2018 with early adoption permitted in the first quarter of 2017. the standard allows for either a full retrospective or modified retrospective transition method . in march and april 2016 , the fasb issued the following amendments to clarify the implementation guidance : asu no . 2016-08 , revenue from contracts with customers ( topic 606 ) : principal versus agent considerations ( reporting revenue gross versus net ) and asu no . 2016-10 revenue from contracts with customers ( topic 606 ) : identifying performance obligations and licensing . we do not believe these standards will impact our recognition of revenue from company-owned restaurants or our recognition of continuing fees from franchisees , which are based on a percentage of franchise sales . however , the initial fees from franchisees , which are currently recognized as revenue when we have performed substantially all initial services required by the franchise agreement , generally upon the opening of a store , will be recognized over the term of the franchise agreement because the franchise rights will be accounted for as rights to access our symbolic intellectual property . our initial fees , including renewal fees , of $ 6 million were recognized as revenue during the year ended december 31 , 2016. in addition , we are continuing to evaluate the impact the adoption of these standards will have on the recognition and presentation of other revenue transactions with unconsolidated affiliates and franchisees . in july 2015 , the fasb issued asu no . 2015-11 , inventory ( topic 330 ) ( asu 2015-11 ) , which requires inventory within the scope of the standard to be measured at the lower of cost and net realizable value . net realizable value is defined as the estimated selling prices in the ordinary course of business , less reasonably predictable costs of completion , disposal , and transportation . asu 2015-10 is effective for the company in our first quarter of fiscal 2017 with early adoption permitted . we do not expect the adoption of this standard to have a material impact on our consolidated and combined financial statements . in february 2016 , the fasb issued asu no . 2016-02 , leases ( topic 842 ) ( asu 2016-02 ) , which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements . asu 2016-02 is effective for the company in our first quarter of fiscal 2019 with early adoption permitted . the standard must be adopted using a modified retrospective transition approach for leases existing at , or entered into after , the beginning of the earliest comparative period presented in the financial statements . we expect that this standard will have a material effect on our financial statements . while we are continuing to assess the effect of adoption , we currently believe the most significant changes relate to the recognition of right-of-use ( “ rou ” ) assets and lease liabilities on our balance sheet for operating leases of the land and or building of our restaurants and office space . at december 31 , 2016 , we operated more than 6,000 restaurants , leasing the underlying land and or building , with our commitments expiring within 20 years from the inception

net cash used in investing activities was $ 471 million in 2016 as compared to $ 493 million in 2015. the decrease was primarily driven by lower capital spending , partially offset by increased purchases of short-term investments . in 2015 , net cash used in investing activities was $ 493 million as compared to $ 512 million in 2014. the decrease was primarily driven by lower capital spending . net cash provided by financing activities was $ 95 million in 2016 as compared to net cash used in financing activities of $ 213 million in 2015. the increase was primarily driven by proceeds from issuance of common stock and warrants , partially offset by changes in net parent investment . in 2015 , net cash used in financing activities was $ 213 million in 2015 as compared to $ 319 million in 2014. the decrease was primarily driven by changes in net parent investment . liquidity and capital resources historically we have funded our operations through cash generated from the operation of our company-owned stores and from our franchise operations and dividend payments from our unconsolidated affiliates . excess cash has historically been repatriated to yum through intercompany loans or dividends . 70 2016 form 10-k our ability to fund our future operations and capital needs will depend on our ongoing ability to generate cash from operations . we believe our principal uses of cash in the future will be primarily to fund our operations , capital expenditures and any distributions to our stockholders or share repurchases we may make . we believe that our future cash from operations , together with our access to funds on hand and capital markets , will provide adequate resources to fund these uses of cash and that our existing cash and net cash from operations will be sufficient to fund our operations and anticipated capital expenditures for the next 12 months . our balance sheet may reflect a working capital deficit , which is not uncommon in our industry and is also historically common for yum .


 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.
     ```net cash used in investing activities was $ 471 million in 2016 as compared to $ 493 million in 2015. the decrease was primarily driven by lower capital spending , partially offset by increased purchases of short-term investments . in 2015 , net cash used in investing activities was $ 493 million as compared to $ 512 million in 2014. the decrease was primarily driven by lower capital spending . net cash provided by financing activities was $ 95 million in 2016 as compared to net cash used in financing activities of $ 213 million in 2015. the increase was primarily driven by proceeds from issuance of common stock and warrants , partially offset by changes in net parent investment . in 2015 , net cash used in financing activities was $ 213 million in 2015 as compared to $ 319 million in 2014. the decrease was primarily driven by changes in net parent investment . liquidity and capital resources historically we have funded our operations through cash generated from the operation of our company-owned stores and from our franchise operations and dividend payments from our unconsolidated affiliates . excess cash has historically been repatriated to yum through intercompany loans or dividends . 70 2016 form 10-k our ability to fund our future operations and capital needs will depend on our ongoing ability to generate cash from operations . we believe our principal uses of cash in the future will be primarily to fund our operations , capital expenditures and any distributions to our stockholders or share repurchases we may make . we believe that our future cash from operations , together with our access to funds on hand and capital markets , will provide adequate resources to fund these uses of cash and that our existing cash and net cash from operations will be sufficient to fund our operations and anticipated capital expenditures for the next 12 months . our balance sheet may reflect a working capital deficit , which is not uncommon in our industry and is also historically common for yum .
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 Suspicious Activity Report : 57 2016 form 10-k our kfc restaurants are the leading qsr brand in the prc in terms of system sales and number of restaurants . as of december 31 , 2016 , kfc operated over 5 , 2 00 restaurants in over 1,100 cities across china . measured by number of restaurants , we believe kfc has a two-to-one lead over the nearest western qsr competitor in china and kfc continues to grow in both large and small cities . similarly , pizza hut casual dining is the leading cdr concept in china as measured by system sales and number of restaurants . we believe pizza hut casual dining , with over 1 , 7 00 restaurants in over 400 cities as of december 31 , 2016 , has an approximately six-to-one lead in terms of restaurants over its nearest western cdr competitor in china . the operations of each of the concept represent an operating segment of the company within these consolidated and combined financial statements . we have two reportable segments : kfc and pizza hut casual dining . our remaining operating segments , including the operations of pizza hut home service , east dawning , little sheep and taco bell , are combined and referred to as all other segments , as those operating segments are insignificant both individually and in the aggregate . we intend for this md & a to provide the reader with information that will assist in understanding our results of operations , including metrics that management uses to assess the company 's performance . throughout this md & a , we discuss the following performance metrics : the company provides certain percentage changes excluding the impact of foreign currency translation ( “ f/x ” ) . these amounts are derived by translating current year results at prior year average exchange rates . we believe the elimination of the f/x impact provides better year-to-year comparability without the distortion of foreign currency fluctuations . system sales growth includes the results of all restaurants regardless of ownership , including company-owned , franchise and unconsolidated affiliate restaurants that operate our concepts , except for non-company-owned restaurants for which we do not receive a sales-based royalty . sales of franchise and unconsolidated affiliate restaurants typically generate ongoing franchise fees for the company at a rate of approximately 6 % of system sales . franchise and unconsolidated affiliate restaurant sales are not included in company sales on the consolidated and combined statements of income ; however , the franchise fees are included in the company 's revenues . we believe system sales growth is useful to investors as a significant indicator of the overall strength of our business as it incorporates all of our revenue drivers , company and franchise same-store sales as well as net unit growth . same-store sales growth is the estimated percentage change in sales of all restaurants that have been open and in the company system one year or more . company restaurant profit ( “ restaurant profit ” ) is defined as company sales less expenses incurred directly by our company-owned restaurants in generating company sales . company restaurant margin as a percentage of sales is defined as restaurant profit divided by company sales . within the company sales and restaurant profit analysis , store portfolio actions represent the net impact of new unit openings , acquisitions , refranchising and store closures , and other primarily represents the impact of same-store sales as well as the impact of changes in costs such as inflation/deflation . 58 2016 form 10-k in addition to the results provided in accordance with gaap throughout this md & a , the company provides non-gaap measurements which present operating profit before special items , diluted earnings ( loss ) per common share before special items , effective tax rate before special items and adjusted ebitda . included in special items are r eversal of ( provision for ) losses associated with sales of aircraft , incremental restaurant-level impairment upon separation , c hange s in fair value of financial instruments and impact of the redemption of the little sheep noncontrolling interest . the company excludes impact from special items for the purpose of evaluating performance internally . special items are not included in any of our segment results . these non-gaap measures are not intended to replace the presentation of our financial results in accordance with gaap . rather , the company believes that the presentation of these non-gaap measures provides additional information to investors to facilitate the comparison of past and present results , excluding those items that the company does not believe are indicative of our ongoing operations due to their nature . results of operations summary all comparisons within this summary are versus the same period a year ago and exclude the impact of special items . all system sales growth , same-store sales growth and operating profit comparisons exclude the impact of foreign currency . refer to item 1. business for a discussion on the seasonality of our operations . in 2014 , the company 's sales and profits were significantly impacted by adverse publicity surrounding improper food handling practices by a former supplier . specifically , on july 20 , 2014 , an undercover report was televised in china depicting improper food handling practices by supplier shanghai husi , a division of osi , which is a large , global supplier to many in the restaurant industry . this triggered extensive news coverage in china that shook consumer confidence and impacted brand usage . immediately following the incident , we experienced a significant , negative impact to sales and profits at both kfc and pizza hut casual dining . for further information about the potential impact of food safety risks on our business , see “ item 1a . risk factors—risks related to our business and industry—food safety and food-borne illness concerns may have an adverse effect on our reputation and business . story_separator_special_tag consolidated and combined cash flows net cash provided by operating activities was $ 864 million in 2016 as compared to $ 910 million in 2015. the decrease was primarily driven by increased inventory procurement and timing of payments for inventory , and a related increase in accounts receivable driven by amounts due from franchisees and unconsolidated affiliates as the company adopted a central procurement model in august 2016 , and an increase in vat credit asset associated with the benefit from the retail tax structure reform , partially offset by higher operating profit . in 2015 , net cash provided by operating activities was $ 910 million as compared to $ 775 million in 2014. the increase was primarily due to the timing of payments for inventory , lower tax payments and higher operating profit . story_separator_special_tag cellpadding= `` 0 `` cellspacing= `` 0 `` style= `` border-collapse : collapse ; width:100 % ; `` > ( b ) purchase obligations include agreements to purchase goods or services that are enforceable and legally binding on us and that specify all significant terms , including : fixed or minimum quantities to be purchased ; fixed , minimum or variable price provisions ; and the approximate timing of the transaction . we have excluded agreements that are cancelable without penalty . purchase obligations relate primarily to supply agreements . we have not included in the contractual obligations table approximately $ 31 million of liabilities for unrecognized tax benefits relating to various tax positions we have taken . these liabilities may increase or decrease over time as a result of tax examinations , and given the status of the examinations , we can not reliably estimate the period of any cash settlement with the respective taxing authorities . these liabilities exclude amounts that are temporary in nature and for which we anticipate that over time there will be no net cash outflow . off-balance sheet arrangements see the unconsolidated affiliates guarantees sections of note 19 for discussion of our off-balance sheet arrangements . 72 2016 form 10-k recently adopted accounting pronouncements and new accounting pronouncements not yet adopted in may 2014 , the financial accounting standards board ( “ fasb ” ) issued asu no . 2014-09 , revenue from contracts with customers ( topic 606 ) ( asu 2014-09 ) , to provide principles within a single framework for revenue recognition of transactions involving contracts with customers across all industries . in july 2015 , the fasb approved a one-year deferral of the effective date of the new revenue standard . asu 2014-09 is now effective for the company in our first quarter of fiscal 2018 with early adoption permitted in the first quarter of 2017. the standard allows for either a full retrospective or modified retrospective transition method . in march and april 2016 , the fasb issued the following amendments to clarify the implementation guidance : asu no . 2016-08 , revenue from contracts with customers ( topic 606 ) : principal versus agent considerations ( reporting revenue gross versus net ) and asu no . 2016-10 revenue from contracts with customers ( topic 606 ) : identifying performance obligations and licensing . we do not believe these standards will impact our recognition of revenue from company-owned restaurants or our recognition of continuing fees from franchisees , which are based on a percentage of franchise sales . however , the initial fees from franchisees , which are currently recognized as revenue when we have performed substantially all initial services required by the franchise agreement , generally upon the opening of a store , will be recognized over the term of the franchise agreement because the franchise rights will be accounted for as rights to access our symbolic intellectual property . our initial fees , including renewal fees , of $ 6 million were recognized as revenue during the year ended december 31 , 2016. in addition , we are continuing to evaluate the impact the adoption of these standards will have on the recognition and presentation of other revenue transactions with unconsolidated affiliates and franchisees . in july 2015 , the fasb issued asu no . 2015-11 , inventory ( topic 330 ) ( asu 2015-11 ) , which requires inventory within the scope of the standard to be measured at the lower of cost and net realizable value . net realizable value is defined as the estimated selling prices in the ordinary course of business , less reasonably predictable costs of completion , disposal , and transportation . asu 2015-10 is effective for the company in our first quarter of fiscal 2017 with early adoption permitted . we do not expect the adoption of this standard to have a material impact on our consolidated and combined financial statements . in february 2016 , the fasb issued asu no . 2016-02 , leases ( topic 842 ) ( asu 2016-02 ) , which increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements . asu 2016-02 is effective for the company in our first quarter of fiscal 2019 with early adoption permitted . the standard must be adopted using a modified retrospective transition approach for leases existing at , or entered into after , the beginning of the earliest comparative period presented in the financial statements . we expect that this standard will have a material effect on our financial statements . while we are continuing to assess the effect of adoption , we currently believe the most significant changes relate to the recognition of right-of-use ( “ rou ” ) assets and lease liabilities on our balance sheet for operating leases of the land and or building of our restaurants and office space . at december 31 , 2016 , we operated more than 6,000 restaurants , leasing the underlying land and or building , with our commitments expiring within 20 years from the inception

