therefore , these operations are classified as discontinued operations for all periods . refer to note 4 to the consolidated financial statements for more information regarding these transactions . 25 critical accounting policies and estimates the company 's accounting policies are more fully described in note 2 to the consolidated financial statements . as disclosed in note 1 to the consolidated financial statements , the preparation of financial statements in conformity with accounting principles generally accepted in the united states requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes . future events and their effects can not be determined with absolute certainty . therefore , the determination of estimates requires the exercise of judgment . actual results inevitably will differ from those estimates , and these differences may be material to the financial statements . the company believes the following key accounting policies affect its more significant judgments and estimates used in the preparation of its consolidated financial statements and are critical to its business operations and the understanding of its results of operations . revenue recognition . effective january 1 , 2006 , the company made a voluntary preferential change in its revenue recognition policies regarding semester-based tuition for its campus-based universities . the universities now recognize tuition revenue ratably on a weekly straight-line basis over each academic session instead of the previously used monthly straight-line basis . this change was made to improve transparency and the correlation between the company 's enrollments , revenues , and actual academic calendars . refer to note 2 to the consolidated financial statements for further discussion . tuition revenue is reported net of scholarships and other discounts . all other revenue is recognized as earned over the appropriate service period , including the company 's online business . dormitory revenues are recognized over the occupancy period . textbook sales and the related cost of the textbooks are recognized at the beginning of each academic quarter with respect to students who are attending courses in which textbooks are charged separately from tuition . approximately 92 % of the company 's revenues represent tuition charges and approximately 5 % of revenues represent bookstore sales and student fees where separately distinguishable . for each student , billings issued or payments received in excess of tuition earned are recorded as deferred revenue . refunds to students have been immaterial and generally limited to amounts paid for which educational services have not been rendered . since the company does not recognize revenues until the services have been rendered , these refunds are typically charged to the deferred revenue account . the amount of tuition earned depends on the fee per semester or per credit hour of the courses , the number of program courses a student takes during each period of enrollment , and the total number of students enrolled in each program . each of these factors is known at the time tuition revenues are calculated and is not subject to estimation . if the company adds additional fees related to educational services , the fees are assessed separately for proper revenue recognition treatment . revenue from the sale of educational products , approximately 3 % of the company 's revenues , is generally recognized when shipped and collectibility is reasonably assured . minority share ownership purchase arrangements the company 's acquisition strategy when acquiring a target company is to initially acquire a majority ownership of the target company with the ultimate goal of acquiring the remaining minority ownership of the target company sometime afterward . concurrent with the initial acquisition , the company typically enters into a series of put and call arrangements with the minority partner of the target company , which will eventually enable the company to purchase the remaining ownership interest of the acquired target company . the company has used four types of minority ownership purchase arrangements to acquire the minority ownership of the target company including : minority put , similar exchange , combination exchange , and fixed purchase price obligation ( see note 2 to the consolidated financial statements ) . these arrangements require management to make certain estimates with regard to the final amount the company will eventually pay in order to acquire the remaining ownership in the company . in the minority put , similar exchange , and combination exchange arrangements , the final settlement value is usually based on a multiple of future non-gaap earnings . the company uses the present value of the current period non-gaap earnings as an estimate for the final value that will eventually be paid to settle the arrangement . these values are then adjusted annually to reflect changes in the target company 's non-gaap earnings as well as the additional passage of time to maturity for the arrangement . to the extent the current non-gaap earnings are different than the future period non-gaap earnings , the value of these obligations can change significantly which will have an impact on the company 's financial position and reported results of operations . accounts and notes receivable . the company routinely makes estimates of the collectibility of its accounts and notes receivable . the company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its students and other parties to make required payments . the company estimates the amount of the required allowance by reviewing the status of past-due receivables and analyzing historical bad debt trends . if the financial condition of students were to deteriorate , resulting in an impairment of their ability to make required payments for tuition , additional allowances may be required . the company has implemented pilot tuition financing programs at its chilean universities where there is a limited lending and collections history . 26 equity-based compensation . the company has awarded restricted stock and unit awards in which the vesting is based on company performance metrics . story_separator_special_tag for 2006 , the effects of enrollments at varying price points ( product mix ) combined with the 31 impact on revenues of differing academic calendars in 2005 and 2006 in each of our latin american institutions ( timing ) resulted in a $ 1.5 million reduction in revenue compared to 2005. latin america revenue represented 60 % of total revenues for 2006 and 58 % of total revenues for 2005. europe revenue for 2006 increased by $ 38.9 million , or 21 % , to $ 223.8 million compared to 2005. a full year 's operations at cyprus college increased revenues by $ 15.6 million and a 2006 acquisition in the mediterranean region increased revenues by $ 0.8 million . enrollment increases of 6.8 % in schools owned in both years added revenues of $ 12.8 million over 2005. for schools owned in both years , the company increased local currency tuition by a weighted average of 3.8 % , which served to increase revenues by $ 6.5 million . each institution in the segment offers tuitions at various prices based upon degree program . for 2006 , the effects of product mix and timing resulted in a $ 2.9 million increase in revenue compared to 2005. the segment operates in several countries and is subject to the effects of foreign currency exchange rates in each of those countries . for 2006 , the effects of currency translations increased revenues by $ 0.3 million , due to the strengthening of the euro against the u.s. dollar . europe revenue represented 20 % of total revenues for 2006 , and 21 % of total revenues for 2005. laureate online education revenue increased by $ 50.3 million , or 27 % , to $ 234.6 million for 2006 compared to 2005. enrollment increases added revenues of $ 19.6 million . tuition increases accounted for $ 10.1 million of additional revenues , and other factors , primarily a favorable change in degree mix , added $ 20.6 million . laureate online education revenue represented 20 % of total revenues for 2006 , and 21 % of total revenues for 2005. direct costs . total direct costs of revenues increased $ 235.3 million , or 33 % , to $ 951.3 million for 2005 from $ 716.0 million for 2005. direct costs represented 83 % of total revenues in 2006 , and 82 % of total revenues in 2005. latin america direct costs increased by $ 155.1 million to $ 538.2 million , or 78 % of latin america revenue for 2006 year , compared to $ 383.1 million or 76 % of latin america revenue for 2005. acquisitions increased expenses by $ 75.9 million . an increase of $ 70.6 million in expenses reflected higher enrollments and corresponding expanded operating activities compared to 2005. for 2006 , the effects of currency translations increased expenses by $ 8.6 million , primarily due to the strengthening of the chilean peso relative to the u.s. dollar . the increase in direct costs as a percentage of revenues was due primarily to $ 3.6 million of severance incurred as a result of the chilean step acquisition and equity based compensation charges as well as the impact to operating margins of businesses acquired during 2005 , which have lower operating margins than the other institutions in the latin america segment . europe direct costs increased by $ 35.9 million to $ 196.2 million , or 88 % of europe revenue for 2006 , compared to $ 160.3 million , or 87 % of europe revenue for 2005. higher enrollments and expanded operations at the higher education institutions compared to 2005 increased expenses by $ 20.0 million , and the acquisitions increased expenses by $ 14.9 million . for 2006 , the effects of currency translations increased expenses by $ 1.0 million , due to the strengthening of the euro against the u.s. dollar . the increase in direct costs as percentage of revenues was due primarily to additional compensation charges ( including equity based compensation ) . campus-based segments ' overhead expense increased $ 9.3 million , or 57 % , to $ 25.6 million in 2006 compared to $ 16.3 million for 2005. campus based overhead expense represented 3 % of total campus-based revenues in 2006 , and 2 % of total campus-based revenues in 2005. the increase is primarily attributable to the implementation of a long-term cash executive performance incentive program and the increase in performance-based compensation expense as well as increased professional fees , payroll and management travel expenses in support of the growth of the company 's international operations . in addition , there was an increase in equity-based compensation of $ 3.0 , including the impact of expensing of stock options of $ 1.9 million under sfas no . 123r . laureate online education direct costs increased by $ 35.0 million to $ 191.3 million , or 82 % of laureate online education revenue for 2006 , compared to $ 156.3 million , or 85 % of laureate online education revenue for 2005. the increase of $ 35.0 million in expenses reflected higher expenses due to increased enrollments and expanded operating activities compared to 2005. the decrease in direct costs as a percentage of revenues reflects increased efficiencies in program delivery as a result of higher enrollment volumes , partially offset by investment in brand development and student recruiting services . general and administrative expenses . general and administrative expenses increased by $ 17.1 million to $ 46.1 million for 2006 , compared to $ 29.0 million for 2005. the increase is primarily attributable to the implementation of a long-term cash executive performance incentive program and the increase in performance-based compensation expense as well as higher payroll , professional fees , and other employee related costs resulting from increased headcount , and travel expenses to support the rapid growth in the company 's global operations . in addition , there was an

liquidity and capital resources the company generates revenue from tuition and other fees charged to students in connection with its various education program offerings . students typically self-finance the costs of their education or seek third-party sponsored financing programs . tuition is generally collected in advance . as a result , working capital is generally a source rather than use of funds . given the favorable cash flow characteristics of the company 's post-secondary education business , laureate anticipates generating sufficient cash flow from operations in the majority of countries where the company operates to satisfy the working capital and financing needs of the company 's organic growth plans for each country . if an educational institution in a country were unable to maintain sufficient liquidity on its own , the company would look to internal cash resources as well as explore reasonable short-term facilities to accommodate any short to medium term shortfalls . accordingly , liquidity is managed locally with oversight provided by corporate staff in baltimore , maryland . the company incurs significant costs at its headquarters location in baltimore , maryland relating to ( 1 ) meeting u.s. and group corporate governance , reporting and compliance requirements , ( 2 ) stewardship and financing of its ownership in investments and subsidiaries , and ( 3 ) development of group synergies among its investments and subsidiaries . cash flow from operations generated by the company 's domestic businesses , included within laureate online education , coupled with incremental borrowing capacity , are expected to be sufficient to meet future domestic working capital , financing and investment needs . the company anticipates that cash flow from operations , available cash and existing credit facilities will be sufficient to meet its recurring operating requirements . the company will require additional liquidity in order to fund the long-term operating strategy of expanding existing locations , opening new campuses and entering new markets . the company continues to examine opportunities in the educational services industry for potential synergistic acquisitions , which will require additional liquidity .


 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 the company generates revenue from tuition and other fees charged to students in connection with its various education program offerings . students typically self-finance the costs of their education or seek third-party sponsored financing programs . tuition is generally collected in advance . as a result , working capital is generally a source rather than use of funds . given the favorable cash flow characteristics of the company 's post-secondary education business , laureate anticipates generating sufficient cash flow from operations in the majority of countries where the company operates to satisfy the working capital and financing needs of the company 's organic growth plans for each country . if an educational institution in a country were unable to maintain sufficient liquidity on its own , the company would look to internal cash resources as well as explore reasonable short-term facilities to accommodate any short to medium term shortfalls . accordingly , liquidity is managed locally with oversight provided by corporate staff in baltimore , maryland . the company incurs significant costs at its headquarters location in baltimore , maryland relating to ( 1 ) meeting u.s. and group corporate governance , reporting and compliance requirements , ( 2 ) stewardship and financing of its ownership in investments and subsidiaries , and ( 3 ) development of group synergies among its investments and subsidiaries . cash flow from operations generated by the company 's domestic businesses , included within laureate online education , coupled with incremental borrowing capacity , are expected to be sufficient to meet future domestic working capital , financing and investment needs . the company anticipates that cash flow from operations , available cash and existing credit facilities will be sufficient to meet its recurring operating requirements . the company will require additional liquidity in order to fund the long-term operating strategy of expanding existing locations , opening new campuses and entering new markets . the company continues to examine opportunities in the educational services industry for potential synergistic acquisitions , which will require additional liquidity .
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 Suspicious Activity Report : therefore , these operations are classified as discontinued operations for all periods . refer to note 4 to the consolidated financial statements for more information regarding these transactions . 25 critical accounting policies and estimates the company 's accounting policies are more fully described in note 2 to the consolidated financial statements . as disclosed in note 1 to the consolidated financial statements , the preparation of financial statements in conformity with accounting principles generally accepted in the united states requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes . future events and their effects can not be determined with absolute certainty . therefore , the determination of estimates requires the exercise of judgment . actual results inevitably will differ from those estimates , and these differences may be material to the financial statements . the company believes the following key accounting policies affect its more significant judgments and estimates used in the preparation of its consolidated financial statements and are critical to its business operations and the understanding of its results of operations . revenue recognition . effective january 1 , 2006 , the company made a voluntary preferential change in its revenue recognition policies regarding semester-based tuition for its campus-based universities . the universities now recognize tuition revenue ratably on a weekly straight-line basis over each academic session instead of the previously used monthly straight-line basis . this change was made to improve transparency and the correlation between the company 's enrollments , revenues , and actual academic calendars . refer to note 2 to the consolidated financial statements for further discussion . tuition revenue is reported net of scholarships and other discounts . all other revenue is recognized as earned over the appropriate service period , including the company 's online business . dormitory revenues are recognized over the occupancy period . textbook sales and the related cost of the textbooks are recognized at the beginning of each academic quarter with respect to students who are attending courses in which textbooks are charged separately from tuition . approximately 92 % of the company 's revenues represent tuition charges and approximately 5 % of revenues represent bookstore sales and student fees where separately distinguishable . for each student , billings issued or payments received in excess of tuition earned are recorded as deferred revenue . refunds to students have been immaterial and generally limited to amounts paid for which educational services have not been rendered . since the company does not recognize revenues until the services have been rendered , these refunds are typically charged to the deferred revenue account . the amount of tuition earned depends on the fee per semester or per credit hour of the courses , the number of program courses a student takes during each period of enrollment , and the total number of students enrolled in each program . each of these factors is known at the time tuition revenues are calculated and is not subject to estimation . if the company adds additional fees related to educational services , the fees are assessed separately for proper revenue recognition treatment . revenue from the sale of educational products , approximately 3 % of the company 's revenues , is generally recognized when shipped and collectibility is reasonably assured . minority share ownership purchase arrangements the company 's acquisition strategy when acquiring a target company is to initially acquire a majority ownership of the target company with the ultimate goal of acquiring the remaining minority ownership of the target company sometime afterward . concurrent with the initial acquisition , the company typically enters into a series of put and call arrangements with the minority partner of the target company , which will eventually enable the company to purchase the remaining ownership interest of the acquired target company . the company has used four types of minority ownership purchase arrangements to acquire the minority ownership of the target company including : minority put , similar exchange , combination exchange , and fixed purchase price obligation ( see note 2 to the consolidated financial statements ) . these arrangements require management to make certain estimates with regard to the final amount the company will eventually pay in order to acquire the remaining ownership in the company . in the minority put , similar exchange , and combination exchange arrangements , the final settlement value is usually based on a multiple of future non-gaap earnings . the company uses the present value of the current period non-gaap earnings as an estimate for the final value that will eventually be paid to settle the arrangement . these values are then adjusted annually to reflect changes in the target company 's non-gaap earnings as well as the additional passage of time to maturity for the arrangement . to the extent the current non-gaap earnings are different than the future period non-gaap earnings , the value of these obligations can change significantly which will have an impact on the company 's financial position and reported results of operations . accounts and notes receivable . the company routinely makes estimates of the collectibility of its accounts and notes receivable . the company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its students and other parties to make required payments . the company estimates the amount of the required allowance by reviewing the status of past-due receivables and analyzing historical bad debt trends . if the financial condition of students were to deteriorate , resulting in an impairment of their ability to make required payments for tuition , additional allowances may be required . the company has implemented pilot tuition financing programs at its chilean universities where there is a limited lending and collections history . 26 equity-based compensation . the company has awarded restricted stock and unit awards in which the vesting is based on company performance metrics . story_separator_special_tag for 2006 , the effects of enrollments at varying price points ( product mix ) combined with the 31 impact on revenues of differing academic calendars in 2005 and 2006 in each of our latin american institutions ( timing ) resulted in a $ 1.5 million reduction in revenue compared to 2005. latin america revenue represented 60 % of total revenues for 2006 and 58 % of total revenues for 2005. europe revenue for 2006 increased by $ 38.9 million , or 21 % , to $ 223.8 million compared to 2005. a full year 's operations at cyprus college increased revenues by $ 15.6 million and a 2006 acquisition in the mediterranean region increased revenues by $ 0.8 million . enrollment increases of 6.8 % in schools owned in both years added revenues of $ 12.8 million over 2005. for schools owned in both years , the company increased local currency tuition by a weighted average of 3.8 % , which served to increase revenues by $ 6.5 million . each institution in the segment offers tuitions at various prices based upon degree program . for 2006 , the effects of product mix and timing resulted in a $ 2.9 million increase in revenue compared to 2005. the segment operates in several countries and is subject to the effects of foreign currency exchange rates in each of those countries . for 2006 , the effects of currency translations increased revenues by $ 0.3 million , due to the strengthening of the euro against the u.s. dollar . europe revenue represented 20 % of total revenues for 2006 , and 21 % of total revenues for 2005. laureate online education revenue increased by $ 50.3 million , or 27 % , to $ 234.6 million for 2006 compared to 2005. enrollment increases added revenues of $ 19.6 million . tuition increases accounted for $ 10.1 million of additional revenues , and other factors , primarily a favorable change in degree mix , added $ 20.6 million . laureate online education revenue represented 20 % of total revenues for 2006 , and 21 % of total revenues for 2005. direct costs . total direct costs of revenues increased $ 235.3 million , or 33 % , to $ 951.3 million for 2005 from $ 716.0 million for 2005. direct costs represented 83 % of total revenues in 2006 , and 82 % of total revenues in 2005. latin america direct costs increased by $ 155.1 million to $ 538.2 million , or 78 % of latin america revenue for 2006 year , compared to $ 383.1 million or 76 % of latin america revenue for 2005. acquisitions increased expenses by $ 75.9 million . an increase of $ 70.6 million in expenses reflected higher enrollments and corresponding expanded operating activities compared to 2005. for 2006 , the effects of currency translations increased expenses by $ 8.6 million , primarily due to the strengthening of the chilean peso relative to the u.s. dollar . the increase in direct costs as a percentage of revenues was due primarily to $ 3.6 million of severance incurred as a result of the chilean step acquisition and equity based compensation charges as well as the impact to operating margins of businesses acquired during 2005 , which have lower operating margins than the other institutions in the latin america segment . europe direct costs increased by $ 35.9 million to $ 196.2 million , or 88 % of europe revenue for 2006 , compared to $ 160.3 million , or 87 % of europe revenue for 2005. higher enrollments and expanded operations at the higher education institutions compared to 2005 increased expenses by $ 20.0 million , and the acquisitions increased expenses by $ 14.9 million . for 2006 , the effects of currency translations increased expenses by $ 1.0 million , due to the strengthening of the euro against the u.s. dollar . the increase in direct costs as percentage of revenues was due primarily to additional compensation charges ( including equity based compensation ) . campus-based segments ' overhead expense increased $ 9.3 million , or 57 % , to $ 25.6 million in 2006 compared to $ 16.3 million for 2005. campus based overhead expense represented 3 % of total campus-based revenues in 2006 , and 2 % of total campus-based revenues in 2005. the increase is primarily attributable to the implementation of a long-term cash executive performance incentive program and the increase in performance-based compensation expense as well as increased professional fees , payroll and management travel expenses in support of the growth of the company 's international operations . in addition , there was an increase in equity-based compensation of $ 3.0 , including the impact of expensing of stock options of $ 1.9 million under sfas no . 123r . laureate online education direct costs increased by $ 35.0 million to $ 191.3 million , or 82 % of laureate online education revenue for 2006 , compared to $ 156.3 million , or 85 % of laureate online education revenue for 2005. the increase of $ 35.0 million in expenses reflected higher expenses due to increased enrollments and expanded operating activities compared to 2005. the decrease in direct costs as a percentage of revenues reflects increased efficiencies in program delivery as a result of higher enrollment volumes , partially offset by investment in brand development and student recruiting services . general and administrative expenses . general and administrative expenses increased by $ 17.1 million to $ 46.1 million for 2006 , compared to $ 29.0 million for 2005. the increase is primarily attributable to the implementation of a long-term cash executive performance incentive program and the increase in performance-based compensation expense as well as higher payroll , professional fees , and other employee related costs resulting from increased headcount , and travel expenses to support the rapid growth in the company 's global operations . in addition , there was an

