we operated solely in the united states until fiscal year 2000 , when we opened our first three international offices and began to expand geographically to meet the demand for project consulting services across the world . as of may 31 , 2014 , we served clients from offices in 19 countries , including 23 international offices and 45 offices in the united states . we expect to continue opportunistic domestic and multinational expansion while also investing in complementary professional services lines that we believe will augment our service offerings . we primarily charge our clients on an hourly basis for the professional services of our consultants . we recognize revenue once services have been rendered and invoice the majority of our clients in the united states on a weekly basis . some of our clients served by our international offices are billed on a monthly basis . our clients are contractually obligated to pay us for all hours billed . to a much lesser extent , we also earn revenue if a client hires one of our consultants . this type of contractually non-refundable revenue is recognized at the time our client completes the hiring process and represented 0.5 % of our revenue for each of the years ended may 31 , 2014 , may 25 , 2013 and may 26 , 2012. we periodically review our outstanding accounts receivable balance and determine an estimate of the amount of those receivables we believe may prove uncollectible . our provision for bad debts , if any , is included in our selling , general and administrative expenses . 30 the costs to pay our professional consultants and all related benefit and incentive costs , including provisions for paid time off and other employee benefits , are included in direct cost of services . we pay most of our consultants on an hourly basis for all hours worked on client engagements and , therefore , direct cost of services tends to vary directly with the volume of revenue we earn . we expense the benefits we pay to our consultants as they are earned . these benefits include paid time off and holidays ; a discretionary bonus plan ; subsidized group health , dental and life insurance programs ; a matching 401 ( k ) retirement plan ; the ability to participate in the company 's employee stock purchase plan ( espp ) ; and professional development and career training . in addition , we pay the related costs of employment , including state and federal payroll taxes , workers ' compensation insurance , unemployment insurance and other costs . typically , a consultant must work a threshold number of hours to be eligible for all of the benefits . we recognize direct cost of services when incurred . selling , general and administrative expenses include the payroll and related costs of our internal management as well as general and administrative , marketing and recruiting costs . our sales and marketing efforts are led by our management team who are salaried employees and earn bonuses based on operating results for the company as a whole and within each individual 's geographic market . the company 's fiscal year consists of 52 or 53 weeks , ending on the saturday in may closest to may 31. for fiscal years of 53 weeks , such as fiscal 2014 , the first three quarters consisted of 13 weeks each and the fourth quarter consisted of 14 weeks . fiscal 2013 and 2012 consisted of 52 weeks each . critical accounting policies the following discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with generally accepted accounting principles ( gaap ) in the united states . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . the following represents a summary of our critical accounting policies , defined as those policies that we believe : ( a ) are the most important to the portrayal of our financial condition and results of operations and ( b ) involve inherently uncertain issues that require management 's most difficult , subjective or complex judgments . valuation of long-lived assets  we assess the potential impairment of long-lived tangible and intangible assets periodically or whenever events or changes in circumstances indicate that the carrying value may not be recoverable . our goodwill and certain other intangible assets are not subject to periodic amortization . these assets are considered to have an indefinite life and their carrying values are required to be assessed by us for impairment at least annually . depending on future market values of our stock , our operating performance and other factors , these assessments could potentially result in impairment reductions of these intangible assets in the future and this adjustment may materially affect the company 's future financial results and financial condition . contingent consideration  the company estimates and records the acquisition date fair value of contingent consideration as part of purchase price consideration for acquisitions and each reporting period , the company estimates changes in the fair value of contingent consideration and any change in fair value is recognized in the company 's consolidated statement of operations . if the company has an estimated liability of the fair value of contingent consideration , the computation requires very subjective assumptions to be made of future operating results , discount rates and probabilities assigned to various potential operating result scenarios . future revisions to these assumptions could materially change the estimate of the fair value of contingent consideration and therefore materially affect the company 's future financial results and financial condition . story_separator_special_tag the leverage of s , g & a expenses was improved to 29.5 % in the fourth quarter of fiscal 2014 compared to 31.3 % in the third quarter . this was attributable to the improved revenue in the fourth quarter , as well as leverage on certain fixed expenses , such as rent , in the fourth quarter . a downturn or softening in global economic conditions and the impact of the summer holiday period could put resulting pressure on revenue in the first quarter of fiscal 2015 , and may limit our ability to leverage direct cost of services and s , g & a expenses . amortization and depreciation expense . amortization of intangible assets was flat at $ 1.7 million in both fiscal 2014 and fiscal 2013. no intangibles were fully amortized during fiscal 2014. based upon identified intangible assets recorded at may 31 , 2014 , the company anticipates amortization expense related to identified intangible assets to approximate $ 914,000 during the fiscal year ending may 30 , 2015 ; the amount may fluctuate depending upon foreign currency translation rates in effect during the year . during the 2015 fiscal year , several intangible assets will be fully amortized . depreciation expense decreased from $ 4.6 million for the year ended may 25 , 2013 to $ 3.6 million for the year ended may 31 , 2014. depreciation decreased as a number of assets were fully depreciated during fiscal 2013 and fiscal 2014. interest income . interest income declined to $ 168,000 in fiscal 2014 compared to $ 175,000 in fiscal 2013. the decrease in interest income is the result of lower cash balances available for investment in fiscal 2014. the company has invested available cash in certificates of deposit , money market investments and commercial paper that have been classified as cash equivalents due to the short maturities of these investments . as of may 31 , 2014 , the company had $ 34.0 million of investments in commercial paper and certificates of deposit with remaining maturity dates between three months and one year from the balance sheet date classified as short-term investments and considered held-to-maturity securities . income taxes . the provision for income taxes decreased from $ 19.4 million ( effective rate of 48.6 % ) for the year ended may 25 , 2013 to $ 18.3 million ( effective rate of 47.9 % ) for the year ended may 31 , 2014. the effective tax rate decreased primarily as a result of expiring statutes of limitations in the company 's fin 48 reserves . in addition , the provision for taxes in each of fiscal 2014 and fiscal 2013 resulted from taxes on income from operations in the united states and certain other foreign jurisdictions , a lower benefit for losses in certain foreign jurisdictions with tax rates lower than the united states statutory rates , and no benefit for losses in jurisdictions in which a valuation allowance on operating loss carryforwards had previously been established . the effective tax rate in both fiscal years disproportionally magnifies the effect of the components of the tax rate that differ from the standard federal rate , including non-deductible permanent differences and incentive stock options ( isos ) . based upon current economic circumstances , management will continue to monitor the need to record additional valuation allowances in the future , primarily related to certain foreign jurisdictions . realization of the currently reserved foreign deferred tax assets is dependent upon generating sufficient future taxable income in those foreign territories . periodically , the company reviews the components of both book and taxable income to analyze the adequacy of the tax provision . there can be no assurance that the company 's effective tax rate will remain constant in the future because of the lower benefit from the united states statutory rate for losses in certain foreign jurisdictions , the limitation on the benefit for losses in jurisdictions in which a valuation allowance for operating loss carryforwards has previously been established , and the unpredictability of timing and the amount of eligible disqualifying iso exercises . the company can not recognize a tax benefit for certain iso grants unless and until the holder exercises his or her option and then sells the shares within a certain period of time . in addition , the company can only recognize a potential tax benefit for employees ' acquisition and subsequent sale of shares purchased through the espp if the sale occurs within a certain defined period . as a result , the company 's provision for income taxes is likely to fluctuate from these factors for the foreseeable future . further , those tax benefits associated with iso grants fully vested at the date of adoption of the current accounting rules governing stock awards will be recognized as additions to paid-in capital when and if those options are exercised and not as a reduction to the company 's tax provision . the company recognized a benefit of approximately $ 2.1 million and $ 2.3 million related to stock-based compensation for nonqualified stock options expensed and for eligible disqualifying iso exercises during fiscal 2014 and 2013 , respectively . the proportion of expense related to non-qualified stock option grants ( for which the company may recognize a tax benefit in the same quarter as the related compensation expense in most instances ) is significant as compared to expense related to isos ( including espps ) . however , the timing and amount of eligible disqualifying iso exercises can not be predicted . the company predominantly grants nonqualified stock options to employees in the united states . 36 the company has maintained a position of being indefinitely reinvested in its foreign subsidiaries ' earnings by not expecting to remit foreign earnings in the foreseeable future . being indefinitely reinvested does not require a deferred tax liability to be recognized on the foreign earnings . management 's indefinite reinvestment position

liquidity and capital resources our primary source of liquidity is cash provided by our operations and , historically , to a lesser extent , stock option exercises . we have generated positive cash flows annually from operations since inception , and we continued to do so during the year ended may 31 , 2014. our ability to continue to increase positive cash flow from operations in the future will be , at least in part , dependent on improvement in global economic conditions . at may 31 , 2014 , the company had operating leases , primarily for office premises , and purchase obligations , primarily for property and equipment , expiring at various dates through august 2024. at may 31 , 2014 , the company had no capital leases . the following table summarizes our future minimum rental commitments under operating leases and our other known contractual obligations as of may 31 , 2014 : replace_table_token_13_th the company has a $ 3.0 million unsecured revolving credit facility with bank of america ( the credit agreement ) . the credit agreement allows the company to choose the interest rate applicable to advances . the interest rate options are bank of america 's prime rate and a london inter-bank offered rate plus 2.25 % . interest , if any , is payable monthly . the credit agreement expires november 30 , 2014. as of may 31 , 2014 , the company had approximately $ 1.5 million available under the terms of the credit agreement , as bank of america has issued approximately $ 1.5 million of outstanding letters of credit in favor of third parties related to operating leases . as of may 31 , 2014 , the company was in compliance with all covenants included in the credit agreement . operating activities provided $ 32.0 million in cash in fiscal 2014 compared to $ 35.0 million in fiscal 2013. cash provided by operations in fiscal 2014 resulted from net income of $ 19.9 million and net favorable non-cash reconciling adjustments of $ 14.0 million ( principally depreciation and amortization and stock-based compensation expense ) .


 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 our primary source of liquidity is cash provided by our operations and , historically , to a lesser extent , stock option exercises . we have generated positive cash flows annually from operations since inception , and we continued to do so during the year ended may 31 , 2014. our ability to continue to increase positive cash flow from operations in the future will be , at least in part , dependent on improvement in global economic conditions . at may 31 , 2014 , the company had operating leases , primarily for office premises , and purchase obligations , primarily for property and equipment , expiring at various dates through august 2024. at may 31 , 2014 , the company had no capital leases . the following table summarizes our future minimum rental commitments under operating leases and our other known contractual obligations as of may 31 , 2014 : replace_table_token_13_th the company has a $ 3.0 million unsecured revolving credit facility with bank of america ( the credit agreement ) . the credit agreement allows the company to choose the interest rate applicable to advances . the interest rate options are bank of america 's prime rate and a london inter-bank offered rate plus 2.25 % . interest , if any , is payable monthly . the credit agreement expires november 30 , 2014. as of may 31 , 2014 , the company had approximately $ 1.5 million available under the terms of the credit agreement , as bank of america has issued approximately $ 1.5 million of outstanding letters of credit in favor of third parties related to operating leases . as of may 31 , 2014 , the company was in compliance with all covenants included in the credit agreement . operating activities provided $ 32.0 million in cash in fiscal 2014 compared to $ 35.0 million in fiscal 2013. cash provided by operations in fiscal 2014 resulted from net income of $ 19.9 million and net favorable non-cash reconciling adjustments of $ 14.0 million ( principally depreciation and amortization and stock-based compensation expense ) .
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 Suspicious Activity Report : we operated solely in the united states until fiscal year 2000 , when we opened our first three international offices and began to expand geographically to meet the demand for project consulting services across the world . as of may 31 , 2014 , we served clients from offices in 19 countries , including 23 international offices and 45 offices in the united states . we expect to continue opportunistic domestic and multinational expansion while also investing in complementary professional services lines that we believe will augment our service offerings . we primarily charge our clients on an hourly basis for the professional services of our consultants . we recognize revenue once services have been rendered and invoice the majority of our clients in the united states on a weekly basis . some of our clients served by our international offices are billed on a monthly basis . our clients are contractually obligated to pay us for all hours billed . to a much lesser extent , we also earn revenue if a client hires one of our consultants . this type of contractually non-refundable revenue is recognized at the time our client completes the hiring process and represented 0.5 % of our revenue for each of the years ended may 31 , 2014 , may 25 , 2013 and may 26 , 2012. we periodically review our outstanding accounts receivable balance and determine an estimate of the amount of those receivables we believe may prove uncollectible . our provision for bad debts , if any , is included in our selling , general and administrative expenses . 30 the costs to pay our professional consultants and all related benefit and incentive costs , including provisions for paid time off and other employee benefits , are included in direct cost of services . we pay most of our consultants on an hourly basis for all hours worked on client engagements and , therefore , direct cost of services tends to vary directly with the volume of revenue we earn . we expense the benefits we pay to our consultants as they are earned . these benefits include paid time off and holidays ; a discretionary bonus plan ; subsidized group health , dental and life insurance programs ; a matching 401 ( k ) retirement plan ; the ability to participate in the company 's employee stock purchase plan ( espp ) ; and professional development and career training . in addition , we pay the related costs of employment , including state and federal payroll taxes , workers ' compensation insurance , unemployment insurance and other costs . typically , a consultant must work a threshold number of hours to be eligible for all of the benefits . we recognize direct cost of services when incurred . selling , general and administrative expenses include the payroll and related costs of our internal management as well as general and administrative , marketing and recruiting costs . our sales and marketing efforts are led by our management team who are salaried employees and earn bonuses based on operating results for the company as a whole and within each individual 's geographic market . the company 's fiscal year consists of 52 or 53 weeks , ending on the saturday in may closest to may 31. for fiscal years of 53 weeks , such as fiscal 2014 , the first three quarters consisted of 13 weeks each and the fourth quarter consisted of 14 weeks . fiscal 2013 and 2012 consisted of 52 weeks each . critical accounting policies the following discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with generally accepted accounting principles ( gaap ) in the united states . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . the following represents a summary of our critical accounting policies , defined as those policies that we believe : ( a ) are the most important to the portrayal of our financial condition and results of operations and ( b ) involve inherently uncertain issues that require management 's most difficult , subjective or complex judgments . valuation of long-lived assets  we assess the potential impairment of long-lived tangible and intangible assets periodically or whenever events or changes in circumstances indicate that the carrying value may not be recoverable . our goodwill and certain other intangible assets are not subject to periodic amortization . these assets are considered to have an indefinite life and their carrying values are required to be assessed by us for impairment at least annually . depending on future market values of our stock , our operating performance and other factors , these assessments could potentially result in impairment reductions of these intangible assets in the future and this adjustment may materially affect the company 's future financial results and financial condition . contingent consideration  the company estimates and records the acquisition date fair value of contingent consideration as part of purchase price consideration for acquisitions and each reporting period , the company estimates changes in the fair value of contingent consideration and any change in fair value is recognized in the company 's consolidated statement of operations . if the company has an estimated liability of the fair value of contingent consideration , the computation requires very subjective assumptions to be made of future operating results , discount rates and probabilities assigned to various potential operating result scenarios . future revisions to these assumptions could materially change the estimate of the fair value of contingent consideration and therefore materially affect the company 's future financial results and financial condition . story_separator_special_tag the leverage of s , g & a expenses was improved to 29.5 % in the fourth quarter of fiscal 2014 compared to 31.3 % in the third quarter . this was attributable to the improved revenue in the fourth quarter , as well as leverage on certain fixed expenses , such as rent , in the fourth quarter . a downturn or softening in global economic conditions and the impact of the summer holiday period could put resulting pressure on revenue in the first quarter of fiscal 2015 , and may limit our ability to leverage direct cost of services and s , g & a expenses . amortization and depreciation expense . amortization of intangible assets was flat at $ 1.7 million in both fiscal 2014 and fiscal 2013. no intangibles were fully amortized during fiscal 2014. based upon identified intangible assets recorded at may 31 , 2014 , the company anticipates amortization expense related to identified intangible assets to approximate $ 914,000 during the fiscal year ending may 30 , 2015 ; the amount may fluctuate depending upon foreign currency translation rates in effect during the year . during the 2015 fiscal year , several intangible assets will be fully amortized . depreciation expense decreased from $ 4.6 million for the year ended may 25 , 2013 to $ 3.6 million for the year ended may 31 , 2014. depreciation decreased as a number of assets were fully depreciated during fiscal 2013 and fiscal 2014. interest income . interest income declined to $ 168,000 in fiscal 2014 compared to $ 175,000 in fiscal 2013. the decrease in interest income is the result of lower cash balances available for investment in fiscal 2014. the company has invested available cash in certificates of deposit , money market investments and commercial paper that have been classified as cash equivalents due to the short maturities of these investments . as of may 31 , 2014 , the company had $ 34.0 million of investments in commercial paper and certificates of deposit with remaining maturity dates between three months and one year from the balance sheet date classified as short-term investments and considered held-to-maturity securities . income taxes . the provision for income taxes decreased from $ 19.4 million ( effective rate of 48.6 % ) for the year ended may 25 , 2013 to $ 18.3 million ( effective rate of 47.9 % ) for the year ended may 31 , 2014. the effective tax rate decreased primarily as a result of expiring statutes of limitations in the company 's fin 48 reserves . in addition , the provision for taxes in each of fiscal 2014 and fiscal 2013 resulted from taxes on income from operations in the united states and certain other foreign jurisdictions , a lower benefit for losses in certain foreign jurisdictions with tax rates lower than the united states statutory rates , and no benefit for losses in jurisdictions in which a valuation allowance on operating loss carryforwards had previously been established . the effective tax rate in both fiscal years disproportionally magnifies the effect of the components of the tax rate that differ from the standard federal rate , including non-deductible permanent differences and incentive stock options ( isos ) . based upon current economic circumstances , management will continue to monitor the need to record additional valuation allowances in the future , primarily related to certain foreign jurisdictions . realization of the currently reserved foreign deferred tax assets is dependent upon generating sufficient future taxable income in those foreign territories . periodically , the company reviews the components of both book and taxable income to analyze the adequacy of the tax provision . there can be no assurance that the company 's effective tax rate will remain constant in the future because of the lower benefit from the united states statutory rate for losses in certain foreign jurisdictions , the limitation on the benefit for losses in jurisdictions in which a valuation allowance for operating loss carryforwards has previously been established , and the unpredictability of timing and the amount of eligible disqualifying iso exercises . the company can not recognize a tax benefit for certain iso grants unless and until the holder exercises his or her option and then sells the shares within a certain period of time . in addition , the company can only recognize a potential tax benefit for employees ' acquisition and subsequent sale of shares purchased through the espp if the sale occurs within a certain defined period . as a result , the company 's provision for income taxes is likely to fluctuate from these factors for the foreseeable future . further , those tax benefits associated with iso grants fully vested at the date of adoption of the current accounting rules governing stock awards will be recognized as additions to paid-in capital when and if those options are exercised and not as a reduction to the company 's tax provision . the company recognized a benefit of approximately $ 2.1 million and $ 2.3 million related to stock-based compensation for nonqualified stock options expensed and for eligible disqualifying iso exercises during fiscal 2014 and 2013 , respectively . the proportion of expense related to non-qualified stock option grants ( for which the company may recognize a tax benefit in the same quarter as the related compensation expense in most instances ) is significant as compared to expense related to isos ( including espps ) . however , the timing and amount of eligible disqualifying iso exercises can not be predicted . the company predominantly grants nonqualified stock options to employees in the united states . 36 the company has maintained a position of being indefinitely reinvested in its foreign subsidiaries ' earnings by not expecting to remit foreign earnings in the foreseeable future . being indefinitely reinvested does not require a deferred tax liability to be recognized on the foreign earnings . management 's indefinite reinvestment position

