we are investing heavily in research and development to expand and improve our software offerings , with research and development costs representing 19 % , 19 % , and 18 % of revenue during 2016 , 2015 , and 2014. in evaluating the financial condition and operating performance of our business , management focuses on the following key performance factors : replace_table_token_6_th 27 ( 1 ) reflects the impacts of the early adoption of asu 2016-09. see note 2 significant accounting policiesnew accounting pronouncements included in the notes to consolidated financial statements in item 8 of this annual report on form 10-k for additional information related to this adoption . ( 2 ) see the table below for the composition of recurring revenue . recurring revenue increased to 53 % of total revenue in 2016 compared to 50 % in 2015. our business may continue to shift towards the recurring revenue streams of term and cloud licenses . as a result of this shift , gross profit , operating income , net income , and earnings per share may grow slower than historical trends due to more license revenue being recognized over longer periods . replace_table_token_7_th another key performance factor as we shift towards recurring revenue is license and cloud backlog . it is computed by adding deferred license and cloud revenue recorded on the balance sheet ( see note 11 deferred revenue in the notes to consolidated financial statements ) and client license and cloud contractual commitments , which are not on our balance sheet because we have not yet invoiced our clients , nor have we recognized the associated revenues ( see the table of future cash receipts in liquidity and capital resourcescash provided by operating activities ) . license and cloud backlog may vary in any given period depending on the amount and timing of when the arrangements are executed , as well as the mix between perpetual , term , and cloud license arrangements , which may depend on our clients ' deployment preferences . replace_table_token_8_th ( 1 ) excludes future revenue from committed maintenance and service arrangements . to grow our business , we intend to : lead the platform market for business applications for customer engagement and operational excellence ; 28 continue to grow market share by developing and delivering robust applications for marketing , sales , service , and operations that can work together seamlessly with maximum differentiation and minimal customization ; execute new-market growth initiatives , further expanding coverage within the global 3000 ; and build out our digital platform and continue to invest in awareness marketing to support the way today 's clients want to buy . whether or not we are successful depends , in part , on our ability to : successfully execute our marketing and sales strategies ; appropriately manage our expenses as we grow our organization ; develop new products or product enhancements ; and successfully incorporate acquired technologies into our applications and unified pega platform . we also regularly evaluate acquisitions or investment opportunities in complementary businesses , services and technologies , and intellectual property rights in an effort to expand and enhance our product offerings . on april 11 , 2016 , we acquired openspan , inc. ( openspan ) , a privately held software provider of robotic process automation and workforce analytics software for $ 48.8 million in cash , net of $ 1.8 million in cash acquired . subsequent to the acquisition we unified the pega robotic automation with our pega platform for case and business process management and our portfolio of crm applications . we believe this will enable clients to intelligently optimize how work gets done across the enterprise and more effectively automate tasks , streamline processes , increase employee productivity , and ultimately deliver better customer experiences . results of operations replace_table_token_9_th revenue software license revenue replace_table_token_10_th the mix between perpetual and term license arrangements executed in a particular period varies based on client needs . a change in the mix may cause our revenues to vary materially from period to period . a higher proportion of term license arrangements executed would result in more license revenue being recognized over longer periods . additionally , some of our perpetual license arrangements include extended payment terms or additional rights of use , which also result in the recognition of revenue over longer periods . the aggregate value of new license agreements executed also fluctuates quarter to quarter . 29 term license revenue as a percentage of total license revenue increased during 2016 compared to 2015. if this trend continues , it will result in slower license revenue growth as we continue to build license backlog . 2016 compared to 2015 the decrease in perpetual license revenue was primarily due to the lower average value of perpetual license arrangements executed during 2016 compared to 2015 and the acceleration of the recognition of $ 4.6 million in revenue in the fourth quarter of 2015 from an existing license arrangement which was being recognized ratably . the aggregate value of revenue expected to be recognized and payments due in future periods under noncancellable perpetual licenses periods was $ 31.7 million as of december 31 , 2016 compared to $ 33.5 million as of december 31 , 2015. see the table of future cash receipts in liquidity and capital resourcescash provided by operating activities . the increase in term license revenue was primarily due to a term license arrangement greater than $ 10 million for which the license fee for the three year license term was paid and recognized in full in the first quarter of 2016 as well as the increase in term license arrangements executed during 2016 and 2015 , reflecting the shift towards recurring revenue streams . story_separator_special_tag accordingly , these are the policies we believe are the most critical to aid in fully understanding and evaluating our consolidated financial condition and results of operations . if actual results differ significantly from management 's estimates and projections , there could be a material effect on our financial statements . revenue recognition our revenue is derived primarily from software licenses , maintenance fees related to our software licenses , and consulting services . our license arrangements , whether involving a perpetual license or a term license , generally also contain multiple other elements , including consulting services , training , and software maintenance services . see note 2 , significant accounting policies ( a ) revenue recognition ,  in the notes to consolidated financial statements included in item 8 of this annual report on form 10-k for our full revenue recognition accounting policy . software revenue recognition requires judgment , including whether a software arrangement includes multiple elements , and if so , whether vsoe of fair value exists for those elements . the amount of consideration allocated to undelivered elements is based on the vsoe of fair value for those elements and is recognized as those elements are delivered . any remaining portion of the total arrangement fee is allocated to the software licensethe first element delivered . revenue is recognized for each element when all of the revenue recognition criteria have been met . changes in the mix of the elements in a software arrangement , the ability to identify vsoe for those elements , the fair value of the respective elements , and changes to a product 's estimated life cycle could materially impact the amount of earned and unearned revenue . goodwill and intangible assets impairment our goodwill and intangible assets result from our business acquisitions . goodwill and intangible assets with indefinite useful lives are not amortized , but are tested for impairment at least annually or as circumstances indicate their value may no longer be recoverable . we do not carry any intangible assets with indefinite useful lives other than goodwill . we perform our annual goodwill impairment as of november 30th of each fiscal year . to assess if goodwill is impaired , we first perform a qualitative assessment to determine whether further 39 impairment testing is necessary . if , as a result of the qualitative assessment , we consider it more-likely-than-not that the fair value of our reporting unit is less than its carrying amount , we perform a quantitative impairment test in a two-step process . for the first step , we screen for impairment , and if any possible impairment exists , we undertake a second step of measuring such impairment by performing discounted cash flow analysis . this analysis is based on cash flow assumptions that are consistent with the plans and estimates being used to manage our business . in the first step , we review the carrying amount of our reporting unit compared to the fair value of the reporting unit . an excess carrying value over fair value would indicate that goodwill may be impaired . if we determined that goodwill may be impaired , then we would compare the implied fair value to the carrying value of the goodwill . we periodically re-evaluate our business and have determined that we have one operating segment and one reporting unit . if our assumptions change in the future , we may be required to record impairment charges to reduce the carrying value of our goodwill . changes in the valuation of goodwill could materially impact our operating results and financial position . we evaluate our intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable . in evaluating potential impairment of these assets , we specifically consider whether any indicators of impairment are present , including , but not limited to : whether there has been a significant adverse change in the business climate that affects the value of an asset ; whether there has been a significant change in the extent or manner in which an asset is used ; and whether there is an expectation that the asset will be sold or disposed of before the end of its originally estimated useful life . if indicators of impairment are present , we compare the estimated undiscounted cash flows that the specific asset is expected to generate to its carrying value . the key assumptions of the cash flow model involve significant subjectivity . if such assets are considered to be impaired , the impairment recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value . as of december 31 , 2016 , we had $ 73.2 million of goodwill and $ 44.2 million of acquired intangible assets . if our estimates or the related assumptions change in the future , we may be required to record impairment charges to reduce the carrying value of these assets . changes in the valuation of long-lived assets could materially impact our operating results and financial position . to date , there have been no impairments of goodwill or intangible assets . accounting for income taxes significant judgment is required in determining our provision for income taxes and income tax assets and liabilities , including evaluating uncertainties in the application of accounting principles and complex tax laws . changes in tax laws or our interpretation of tax laws and the resolution of any tax audits could significantly impact our financial statements . we regularly assess the need for a valuation allowance against our deferred tax assets . future realization of our deferred tax assets ultimately depends on the existence of sufficient taxable income within the available carryback or carryforward periods . we record a valuation allowance to reduce our deferred tax assets to an amount we believe is more likely than not to be realized .

cash provided by operating activities the primary driver during 2016 was net income of $ 27 million . the primary drivers during 2015 were net income of $ 36.3 million and a $ 17.7 million increase in deferred revenue primarily resulting from the difference in timing of billings and revenue recognition . the primary drivers during 2014 were net income of $ 33.3 million , a $ 13.4 million increase in accounts payable and accrued expenses primarily due to the timing of income tax payments , and an $ 11.2 million increase in deferred revenue primarily resulting from the difference in timing of billings and revenue recognition for annual maintenance . 36 future cash receipts from committed license and cloud arrangements as of december 31 , 2016 , none of the amounts shown in the table below had been billed and no revenue had been recognized . the timing of future cash receipts may not coincide with the timing of future revenue recognition . replace_table_token_23_th ( 1 ) these amounts are for perpetual licenses with extended payment terms and or additional rights of use . total contractual future cash receipts due from our existing license agreements was approximately $ 356.4 million as of december 31 , 2015 and $ 301.4 million as of december 31 , 2014. cash used in investing activities during 2016 , we acquired openspan for $ 48.8 million , net of cash acquired , and invested $ 19.1 million primarily in internally developed software and leasehold improvements at our corporate headquarters and our office in hyderabad , india , partially offset by proceeds received from the sales of marketable debt securities of $ 62.2 million . during 2015 , we purchased marketable debt securities for $ 75.7 million , partially offset by the proceeds received from sales , maturities and called marketable debt securities of $ 43.9 million .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash provided by operating activities the primary driver during 2016 was net income of $ 27 million . the primary drivers during 2015 were net income of $ 36.3 million and a $ 17.7 million increase in deferred revenue primarily resulting from the difference in timing of billings and revenue recognition . the primary drivers during 2014 were net income of $ 33.3 million , a $ 13.4 million increase in accounts payable and accrued expenses primarily due to the timing of income tax payments , and an $ 11.2 million increase in deferred revenue primarily resulting from the difference in timing of billings and revenue recognition for annual maintenance . 36 future cash receipts from committed license and cloud arrangements as of december 31 , 2016 , none of the amounts shown in the table below had been billed and no revenue had been recognized . the timing of future cash receipts may not coincide with the timing of future revenue recognition . replace_table_token_23_th ( 1 ) these amounts are for perpetual licenses with extended payment terms and or additional rights of use . total contractual future cash receipts due from our existing license agreements was approximately $ 356.4 million as of december 31 , 2015 and $ 301.4 million as of december 31 , 2014. cash used in investing activities during 2016 , we acquired openspan for $ 48.8 million , net of cash acquired , and invested $ 19.1 million primarily in internally developed software and leasehold improvements at our corporate headquarters and our office in hyderabad , india , partially offset by proceeds received from the sales of marketable debt securities of $ 62.2 million . during 2015 , we purchased marketable debt securities for $ 75.7 million , partially offset by the proceeds received from sales , maturities and called marketable debt securities of $ 43.9 million .
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 Suspicious Activity Report : we are investing heavily in research and development to expand and improve our software offerings , with research and development costs representing 19 % , 19 % , and 18 % of revenue during 2016 , 2015 , and 2014. in evaluating the financial condition and operating performance of our business , management focuses on the following key performance factors : replace_table_token_6_th 27 ( 1 ) reflects the impacts of the early adoption of asu 2016-09. see note 2 significant accounting policiesnew accounting pronouncements included in the notes to consolidated financial statements in item 8 of this annual report on form 10-k for additional information related to this adoption . ( 2 ) see the table below for the composition of recurring revenue . recurring revenue increased to 53 % of total revenue in 2016 compared to 50 % in 2015. our business may continue to shift towards the recurring revenue streams of term and cloud licenses . as a result of this shift , gross profit , operating income , net income , and earnings per share may grow slower than historical trends due to more license revenue being recognized over longer periods . replace_table_token_7_th another key performance factor as we shift towards recurring revenue is license and cloud backlog . it is computed by adding deferred license and cloud revenue recorded on the balance sheet ( see note 11 deferred revenue in the notes to consolidated financial statements ) and client license and cloud contractual commitments , which are not on our balance sheet because we have not yet invoiced our clients , nor have we recognized the associated revenues ( see the table of future cash receipts in liquidity and capital resourcescash provided by operating activities ) . license and cloud backlog may vary in any given period depending on the amount and timing of when the arrangements are executed , as well as the mix between perpetual , term , and cloud license arrangements , which may depend on our clients ' deployment preferences . replace_table_token_8_th ( 1 ) excludes future revenue from committed maintenance and service arrangements . to grow our business , we intend to : lead the platform market for business applications for customer engagement and operational excellence ; 28 continue to grow market share by developing and delivering robust applications for marketing , sales , service , and operations that can work together seamlessly with maximum differentiation and minimal customization ; execute new-market growth initiatives , further expanding coverage within the global 3000 ; and build out our digital platform and continue to invest in awareness marketing to support the way today 's clients want to buy . whether or not we are successful depends , in part , on our ability to : successfully execute our marketing and sales strategies ; appropriately manage our expenses as we grow our organization ; develop new products or product enhancements ; and successfully incorporate acquired technologies into our applications and unified pega platform . we also regularly evaluate acquisitions or investment opportunities in complementary businesses , services and technologies , and intellectual property rights in an effort to expand and enhance our product offerings . on april 11 , 2016 , we acquired openspan , inc. ( openspan ) , a privately held software provider of robotic process automation and workforce analytics software for $ 48.8 million in cash , net of $ 1.8 million in cash acquired . subsequent to the acquisition we unified the pega robotic automation with our pega platform for case and business process management and our portfolio of crm applications . we believe this will enable clients to intelligently optimize how work gets done across the enterprise and more effectively automate tasks , streamline processes , increase employee productivity , and ultimately deliver better customer experiences . results of operations replace_table_token_9_th revenue software license revenue replace_table_token_10_th the mix between perpetual and term license arrangements executed in a particular period varies based on client needs . a change in the mix may cause our revenues to vary materially from period to period . a higher proportion of term license arrangements executed would result in more license revenue being recognized over longer periods . additionally , some of our perpetual license arrangements include extended payment terms or additional rights of use , which also result in the recognition of revenue over longer periods . the aggregate value of new license agreements executed also fluctuates quarter to quarter . 29 term license revenue as a percentage of total license revenue increased during 2016 compared to 2015. if this trend continues , it will result in slower license revenue growth as we continue to build license backlog . 2016 compared to 2015 the decrease in perpetual license revenue was primarily due to the lower average value of perpetual license arrangements executed during 2016 compared to 2015 and the acceleration of the recognition of $ 4.6 million in revenue in the fourth quarter of 2015 from an existing license arrangement which was being recognized ratably . the aggregate value of revenue expected to be recognized and payments due in future periods under noncancellable perpetual licenses periods was $ 31.7 million as of december 31 , 2016 compared to $ 33.5 million as of december 31 , 2015. see the table of future cash receipts in liquidity and capital resourcescash provided by operating activities . the increase in term license revenue was primarily due to a term license arrangement greater than $ 10 million for which the license fee for the three year license term was paid and recognized in full in the first quarter of 2016 as well as the increase in term license arrangements executed during 2016 and 2015 , reflecting the shift towards recurring revenue streams . story_separator_special_tag accordingly , these are the policies we believe are the most critical to aid in fully understanding and evaluating our consolidated financial condition and results of operations . if actual results differ significantly from management 's estimates and projections , there could be a material effect on our financial statements . revenue recognition our revenue is derived primarily from software licenses , maintenance fees related to our software licenses , and consulting services . our license arrangements , whether involving a perpetual license or a term license , generally also contain multiple other elements , including consulting services , training , and software maintenance services . see note 2 , significant accounting policies ( a ) revenue recognition ,  in the notes to consolidated financial statements included in item 8 of this annual report on form 10-k for our full revenue recognition accounting policy . software revenue recognition requires judgment , including whether a software arrangement includes multiple elements , and if so , whether vsoe of fair value exists for those elements . the amount of consideration allocated to undelivered elements is based on the vsoe of fair value for those elements and is recognized as those elements are delivered . any remaining portion of the total arrangement fee is allocated to the software licensethe first element delivered . revenue is recognized for each element when all of the revenue recognition criteria have been met . changes in the mix of the elements in a software arrangement , the ability to identify vsoe for those elements , the fair value of the respective elements , and changes to a product 's estimated life cycle could materially impact the amount of earned and unearned revenue . goodwill and intangible assets impairment our goodwill and intangible assets result from our business acquisitions . goodwill and intangible assets with indefinite useful lives are not amortized , but are tested for impairment at least annually or as circumstances indicate their value may no longer be recoverable . we do not carry any intangible assets with indefinite useful lives other than goodwill . we perform our annual goodwill impairment as of november 30th of each fiscal year . to assess if goodwill is impaired , we first perform a qualitative assessment to determine whether further 39 impairment testing is necessary . if , as a result of the qualitative assessment , we consider it more-likely-than-not that the fair value of our reporting unit is less than its carrying amount , we perform a quantitative impairment test in a two-step process . for the first step , we screen for impairment , and if any possible impairment exists , we undertake a second step of measuring such impairment by performing discounted cash flow analysis . this analysis is based on cash flow assumptions that are consistent with the plans and estimates being used to manage our business . in the first step , we review the carrying amount of our reporting unit compared to the fair value of the reporting unit . an excess carrying value over fair value would indicate that goodwill may be impaired . if we determined that goodwill may be impaired , then we would compare the implied fair value to the carrying value of the goodwill . we periodically re-evaluate our business and have determined that we have one operating segment and one reporting unit . if our assumptions change in the future , we may be required to record impairment charges to reduce the carrying value of our goodwill . changes in the valuation of goodwill could materially impact our operating results and financial position . we evaluate our intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable . in evaluating potential impairment of these assets , we specifically consider whether any indicators of impairment are present , including , but not limited to : whether there has been a significant adverse change in the business climate that affects the value of an asset ; whether there has been a significant change in the extent or manner in which an asset is used ; and whether there is an expectation that the asset will be sold or disposed of before the end of its originally estimated useful life . if indicators of impairment are present , we compare the estimated undiscounted cash flows that the specific asset is expected to generate to its carrying value . the key assumptions of the cash flow model involve significant subjectivity . if such assets are considered to be impaired , the impairment recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value . as of december 31 , 2016 , we had $ 73.2 million of goodwill and $ 44.2 million of acquired intangible assets . if our estimates or the related assumptions change in the future , we may be required to record impairment charges to reduce the carrying value of these assets . changes in the valuation of long-lived assets could materially impact our operating results and financial position . to date , there have been no impairments of goodwill or intangible assets . accounting for income taxes significant judgment is required in determining our provision for income taxes and income tax assets and liabilities , including evaluating uncertainties in the application of accounting principles and complex tax laws . changes in tax laws or our interpretation of tax laws and the resolution of any tax audits could significantly impact our financial statements . we regularly assess the need for a valuation allowance against our deferred tax assets . future realization of our deferred tax assets ultimately depends on the existence of sufficient taxable income within the available carryback or carryforward periods . we record a valuation allowance to reduce our deferred tax assets to an amount we believe is more likely than not to be realized .

