revenues from the iads segment were $ 1.2 million for the year ended december 31 , 2012. there were no revenues from the iads segment for the year ended december 31 , 2011. the $ 11.4 million increase in the content services segment is principally attributable to higher revenues from e-book related services that we performed for one of our significant clients . we experienced sequential declines in revenue from this client in the last three quarters of 2012. our top two clients generated $ 35 million or 41 % and $ 22.2 million or 30 % of our total revenues in the fiscal years ended december 31 , 2012 and 2011 , respectively . another client accounted for less than 10 % of our total revenues for the year ended december 31 , 2012 , but for 14 % of our total revenues for the year ended december 31 , 2011. no other client accounted for 10 % or more of revenues during these periods . further , in the years ended december 31 , 2012 and 2011 , revenues from non-u.s. clients accounted for 24 % and 30 % , respectively , of our total revenues . direct operating costs direct operating costs were approximately $ 57.4 million and $ 50.2 million for years ended december 31 , 2012 and 2011 , respectively , an increase of $ 7.2 million or approximately 14 % . direct operating costs for the content services segment were $ 53.3 million and $ 49.6 million for the years ended december 31 , 2012 and 2011 , respectively , an increase of $ 3.7 million or approximately 7 % . direct operating costs for the iads segment were approximately $ 4.1 million and $ 0.6 million for the respective periods , net of intersegment profits . 25 the increase in direct operating costs for the content services segment was principally attributable to an increase in production headcount and other operating costs in support of increased revenues . the increase in direct operating costs was partially offset by a decrease in direct labor costs achieved primarily from productivity gains . the productivity gains were principally the result of increased efficiency , improvements in our processes and innovation in our technology . the increase in direct operating costs for the iads segment represents production costs for initial engagements , increase in production labor costs to perform pilot engagements and facility overhead costs for our new delivery center in asia . direct operating costs as a percentage of total revenues declined to 66 % for the year ended december 31 , 2012 compared to 68 % for the year ended december 31 , 2011. direct operating costs for the content services segment as a percentage of content services segment revenues were approximately 62 % for the year ended december 31 , 2012 , compared to 67 % for the year ended december 31 , 2011. selling and administrative expenses selling and administrative expenses were $ 22.2 million and $ 19.1 million for the years ended december 31 , 2012 and 2011 , respectively , an increase of $ 3.1 million , or approximately 16 % . selling and administrative costs for the content services segment were $ 19.3 million and $ 17.5 million in these respective periods . selling and administrative expenses for the iads segment for the respective periods were $ 2.9 million and $ 1.6 million , net of intersegment profits . the increase in selling and administrative expenses for the content services segment for the year ended december 31 , 2012 is principally attributable to compensation costs of new hires , wage increases and an increase in other miscellaneous administrative costs . during the year ended december 31 , 2011 , we recorded approximately $ 0.5 million from the recovery of bad debts from a previously fully reserved account receivable . selling and administrative expenses for the content services segment , as a percentage of content services segment revenues , declined to 23 % for the year ended december 31 , 2012 , from 24 % for the year ended 2011 , and this was primarily as a result of higher revenues . the $ 1.3 million increase in selling and administrative expenses for the iads segment is primarily attributable to compensation costs of new personnel hired for sales and marketing and increases in other administrative costs . impairment charge docgenix provided services to three clients in 2012 and we expect to continue to provide services to some of these clients in 2013. the existing docgenix product and service offering did not gain traction in the market place beyond its initial clients . in order to reach a broader market we will need to revise our approach from that represented by the existing product and service . as a result in the fourth quarter of 2012 , we evaluated the carrying value of the fixed assets of our docgenix subsidiary compared to its fair value and concluded that the carrying value exceeds its fair value . this resulted in an impairment charge of $ 0.5 million . restructuring costs in the second half of 2012 , we restructured our operations , and recorded a one-time charge of approximately $ 0.2 million ( $ 0.1 million in direct operating costs and $ 0.1 million in selling , general and administrative costs ) representing severance and other personnel-related expenses . we expect cost savings of approximately $ 3.0 million per year from this restructuring activity . 26 income taxes for the year ended december 31 , 2012 , our u.s. entity recorded a benefit from income tax on account of losses incurred by our u.s. entity . with respect to our foreign subsidiaries , we recorded a provision for income taxes in accordance with the local tax regulations . story_separator_special_tag at present , we do not enter into any hedging instruments to mitigate foreign exchange risk on such assets , however , we may do so in the future . future liquidity and capital resource requirements we have a $ 15.0 million line of credit pursuant to which we may borrow up to 80 % of eligible accounts receivable . borrowings under the credit line bear interest at the bank 's alternate base rate plus 0.5 % or libor plus 2.5 % . the line , which expires in june 2013 , is collateralized by our accounts receivable . we have no outstanding obligations under this credit line as of december 31 , 2012. we believe that our existing cash and cash equivalents , short-term and long-term investments , funds generated from our operating activities and funds available under our credit facility will provide sufficient sources of liquidity to satisfy our financial needs for the next twelve months . however , if circumstances change , we may need to raise debt or additional equity capital in the future . we have historically funded our foreign expenditures from our u.s. corporate headquarters on an as-needed basis . in the second quarter of 2012 , we filed a shelf registration statement on form s-3 , which will give us the ability to offer from time to time up to an aggregate of $ 70 million of securities , which may consist of common stock , preferred stock , debt securities , warrants , or units consisting of any of the foregoing . the registration is intended to give us flexibility should financing opportunities arise . contractual obligations the table below summarizes our contractual obligations ( in thousands ) at december 31 , 2012 , and the effect that those obligations are expected to have on our liquidity and cash flows in future periods . 32 replace_table_token_6_th future expected obligations under our pension benefit plans have not been included in the contractual cash obligations table above . inflation , seasonality and prevailing economic conditions our most significant costs are the salaries and related benefits of our employees in asia . we are exposed to higher inflation in wage rates in the countries in which we operate . we generally perform work for our clients under project-specific contracts , requirements-based contracts or long-term contracts . we must adequately anticipate wage increases , particularly on our fixed-price contracts . there can be no assurance that we will be able to recover cost increases through increases in the prices that we charge for our services to our clients . our quarterly operating results are subject to certain fluctuations . we experience fluctuations in our revenue and earnings as we replace and begin new projects , which may have some normal start-up delays , or we may be unable to replace a project entirely . these and other factors may contribute to fluctuations in our operating results from quarter to quarter . in addition , as some of our asian facilities are closed during holidays in the fourth quarter , we typically incur higher wages , due to overtime , that reduce our margins . critical accounting policies and estimates basis of presentation and use of estimates our discussion and analysis of our results of operations , liquidity and capital resources are based on our consolidated financial statements which have been prepared in conformity with accounting principles generally accepted in the united states of america . the preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and disclosures of contingent assets and liabilities . on an ongoing basis , we evaluate our estimates and judgments , including those related to revenue recognition , allowance for doubtful accounts and billing adjustments , long-lived assets , goodwill , valuation of deferred tax assets , value of securities underlying stock-based compensation , litigation accruals , pension benefits , valuation of derivative instruments and estimated accruals for various tax exposures . we base our estimates on historical and anticipated results and trends and on various other assumptions that we believe are reasonable under the circumstances , including assumptions as to future events . these estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . by their nature , estimates are subject to an inherent degree of uncertainty . actual results may differ from our estimates and could have a significant adverse effect on our consolidated results of operations and financial position . we believe the following critical accounting policies affect our more significant estimates and judgments in the preparation of our consolidated financial statements . 33 allowance for doubtful accounts we establish credit terms for new clients based upon management 's review of their credit information and project terms , and perform ongoing credit evaluations of our clients , adjusting credit terms when management believes appropriate , based upon payment history and an assessment of their current credit worthiness . we record an allowance for doubtful accounts for estimated losses resulting from the inability of our clients to make required payments . we determine this allowance by considering a number of factors , including the length of time trade accounts receivable are past due , our previous loss history , our estimate of the client 's current ability to pay its obligation to us , and the condition of the general economy and the industry as a whole . while credit losses have generally been within expectations and the provisions established , we can not guarantee that credit loss rates in the future will be consistent with those experienced in the past . in addition , we would have credit exposure if the financial condition of one of our major clients were to deteriorate . in the event that the financial condition of our clients were to deteriorate ,

liquidity and capital resources selected measures of liquidity and capital resources , expressed in thousands , are as follows : replace_table_token_5_th at december 31 , 2012 we had cash and cash equivalents of $ 25.4 million , of which $ 15.1 million was held by our foreign subsidiaries , and short term investments of $ 3.1 million which was entirely held by our operating foreign subsidiaries located in asia . a significant portion of the amounts held outside of the unites states could be repatriated to the united states , but under current law , would be subject to unites states federal income taxes , less applicable foreign tax credit . however , our intent is to permanently reinvest these funds outside the unites states . we have used , and plan to use , our existing cash for ( i ) expansion of existing operations ; ( ii ) general corporate purposes , including working capital ; ( iii ) possible business acquisitions ; and ( iv ) continuing investments in iads . as of december 31 , 2012 , we had no third party debt and had working capital of approximately $ 32.8 million compared to working capital of approximately $ 28.1 million at december 31 , 2011. we do not anticipate any near-term liquidity issues . cash balances are held in bank deposits at leading u.s. and foreign commercial banks . 30 net cash provided by ( used in ) operating activities cash provided by our operating activities in 2012 was $ 17.8 million , resulting from net income of $ 5.7 million , adjustments for non-cash items of $ 5.3 million , and $ 6.8 million provided for working capital . adjustments for non-cash items principally consisted of $ 3.9 million for depreciation and amortization , stock compensation expense of $ 1.0 million and an impairment charge of approximately $ 0.5 million relating to the iads segment .


 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 selected measures of liquidity and capital resources , expressed in thousands , are as follows : replace_table_token_5_th at december 31 , 2012 we had cash and cash equivalents of $ 25.4 million , of which $ 15.1 million was held by our foreign subsidiaries , and short term investments of $ 3.1 million which was entirely held by our operating foreign subsidiaries located in asia . a significant portion of the amounts held outside of the unites states could be repatriated to the united states , but under current law , would be subject to unites states federal income taxes , less applicable foreign tax credit . however , our intent is to permanently reinvest these funds outside the unites states . we have used , and plan to use , our existing cash for ( i ) expansion of existing operations ; ( ii ) general corporate purposes , including working capital ; ( iii ) possible business acquisitions ; and ( iv ) continuing investments in iads . as of december 31 , 2012 , we had no third party debt and had working capital of approximately $ 32.8 million compared to working capital of approximately $ 28.1 million at december 31 , 2011. we do not anticipate any near-term liquidity issues . cash balances are held in bank deposits at leading u.s. and foreign commercial banks . 30 net cash provided by ( used in ) operating activities cash provided by our operating activities in 2012 was $ 17.8 million , resulting from net income of $ 5.7 million , adjustments for non-cash items of $ 5.3 million , and $ 6.8 million provided for working capital . adjustments for non-cash items principally consisted of $ 3.9 million for depreciation and amortization , stock compensation expense of $ 1.0 million and an impairment charge of approximately $ 0.5 million relating to the iads segment .
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 Suspicious Activity Report : revenues from the iads segment were $ 1.2 million for the year ended december 31 , 2012. there were no revenues from the iads segment for the year ended december 31 , 2011. the $ 11.4 million increase in the content services segment is principally attributable to higher revenues from e-book related services that we performed for one of our significant clients . we experienced sequential declines in revenue from this client in the last three quarters of 2012. our top two clients generated $ 35 million or 41 % and $ 22.2 million or 30 % of our total revenues in the fiscal years ended december 31 , 2012 and 2011 , respectively . another client accounted for less than 10 % of our total revenues for the year ended december 31 , 2012 , but for 14 % of our total revenues for the year ended december 31 , 2011. no other client accounted for 10 % or more of revenues during these periods . further , in the years ended december 31 , 2012 and 2011 , revenues from non-u.s. clients accounted for 24 % and 30 % , respectively , of our total revenues . direct operating costs direct operating costs were approximately $ 57.4 million and $ 50.2 million for years ended december 31 , 2012 and 2011 , respectively , an increase of $ 7.2 million or approximately 14 % . direct operating costs for the content services segment were $ 53.3 million and $ 49.6 million for the years ended december 31 , 2012 and 2011 , respectively , an increase of $ 3.7 million or approximately 7 % . direct operating costs for the iads segment were approximately $ 4.1 million and $ 0.6 million for the respective periods , net of intersegment profits . 25 the increase in direct operating costs for the content services segment was principally attributable to an increase in production headcount and other operating costs in support of increased revenues . the increase in direct operating costs was partially offset by a decrease in direct labor costs achieved primarily from productivity gains . the productivity gains were principally the result of increased efficiency , improvements in our processes and innovation in our technology . the increase in direct operating costs for the iads segment represents production costs for initial engagements , increase in production labor costs to perform pilot engagements and facility overhead costs for our new delivery center in asia . direct operating costs as a percentage of total revenues declined to 66 % for the year ended december 31 , 2012 compared to 68 % for the year ended december 31 , 2011. direct operating costs for the content services segment as a percentage of content services segment revenues were approximately 62 % for the year ended december 31 , 2012 , compared to 67 % for the year ended december 31 , 2011. selling and administrative expenses selling and administrative expenses were $ 22.2 million and $ 19.1 million for the years ended december 31 , 2012 and 2011 , respectively , an increase of $ 3.1 million , or approximately 16 % . selling and administrative costs for the content services segment were $ 19.3 million and $ 17.5 million in these respective periods . selling and administrative expenses for the iads segment for the respective periods were $ 2.9 million and $ 1.6 million , net of intersegment profits . the increase in selling and administrative expenses for the content services segment for the year ended december 31 , 2012 is principally attributable to compensation costs of new hires , wage increases and an increase in other miscellaneous administrative costs . during the year ended december 31 , 2011 , we recorded approximately $ 0.5 million from the recovery of bad debts from a previously fully reserved account receivable . selling and administrative expenses for the content services segment , as a percentage of content services segment revenues , declined to 23 % for the year ended december 31 , 2012 , from 24 % for the year ended 2011 , and this was primarily as a result of higher revenues . the $ 1.3 million increase in selling and administrative expenses for the iads segment is primarily attributable to compensation costs of new personnel hired for sales and marketing and increases in other administrative costs . impairment charge docgenix provided services to three clients in 2012 and we expect to continue to provide services to some of these clients in 2013. the existing docgenix product and service offering did not gain traction in the market place beyond its initial clients . in order to reach a broader market we will need to revise our approach from that represented by the existing product and service . as a result in the fourth quarter of 2012 , we evaluated the carrying value of the fixed assets of our docgenix subsidiary compared to its fair value and concluded that the carrying value exceeds its fair value . this resulted in an impairment charge of $ 0.5 million . restructuring costs in the second half of 2012 , we restructured our operations , and recorded a one-time charge of approximately $ 0.2 million ( $ 0.1 million in direct operating costs and $ 0.1 million in selling , general and administrative costs ) representing severance and other personnel-related expenses . we expect cost savings of approximately $ 3.0 million per year from this restructuring activity . 26 income taxes for the year ended december 31 , 2012 , our u.s. entity recorded a benefit from income tax on account of losses incurred by our u.s. entity . with respect to our foreign subsidiaries , we recorded a provision for income taxes in accordance with the local tax regulations . story_separator_special_tag at present , we do not enter into any hedging instruments to mitigate foreign exchange risk on such assets , however , we may do so in the future . future liquidity and capital resource requirements we have a $ 15.0 million line of credit pursuant to which we may borrow up to 80 % of eligible accounts receivable . borrowings under the credit line bear interest at the bank 's alternate base rate plus 0.5 % or libor plus 2.5 % . the line , which expires in june 2013 , is collateralized by our accounts receivable . we have no outstanding obligations under this credit line as of december 31 , 2012. we believe that our existing cash and cash equivalents , short-term and long-term investments , funds generated from our operating activities and funds available under our credit facility will provide sufficient sources of liquidity to satisfy our financial needs for the next twelve months . however , if circumstances change , we may need to raise debt or additional equity capital in the future . we have historically funded our foreign expenditures from our u.s. corporate headquarters on an as-needed basis . in the second quarter of 2012 , we filed a shelf registration statement on form s-3 , which will give us the ability to offer from time to time up to an aggregate of $ 70 million of securities , which may consist of common stock , preferred stock , debt securities , warrants , or units consisting of any of the foregoing . the registration is intended to give us flexibility should financing opportunities arise . contractual obligations the table below summarizes our contractual obligations ( in thousands ) at december 31 , 2012 , and the effect that those obligations are expected to have on our liquidity and cash flows in future periods . 32 replace_table_token_6_th future expected obligations under our pension benefit plans have not been included in the contractual cash obligations table above . inflation , seasonality and prevailing economic conditions our most significant costs are the salaries and related benefits of our employees in asia . we are exposed to higher inflation in wage rates in the countries in which we operate . we generally perform work for our clients under project-specific contracts , requirements-based contracts or long-term contracts . we must adequately anticipate wage increases , particularly on our fixed-price contracts . there can be no assurance that we will be able to recover cost increases through increases in the prices that we charge for our services to our clients . our quarterly operating results are subject to certain fluctuations . we experience fluctuations in our revenue and earnings as we replace and begin new projects , which may have some normal start-up delays , or we may be unable to replace a project entirely . these and other factors may contribute to fluctuations in our operating results from quarter to quarter . in addition , as some of our asian facilities are closed during holidays in the fourth quarter , we typically incur higher wages , due to overtime , that reduce our margins . critical accounting policies and estimates basis of presentation and use of estimates our discussion and analysis of our results of operations , liquidity and capital resources are based on our consolidated financial statements which have been prepared in conformity with accounting principles generally accepted in the united states of america . the preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and disclosures of contingent assets and liabilities . on an ongoing basis , we evaluate our estimates and judgments , including those related to revenue recognition , allowance for doubtful accounts and billing adjustments , long-lived assets , goodwill , valuation of deferred tax assets , value of securities underlying stock-based compensation , litigation accruals , pension benefits , valuation of derivative instruments and estimated accruals for various tax exposures . we base our estimates on historical and anticipated results and trends and on various other assumptions that we believe are reasonable under the circumstances , including assumptions as to future events . these estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . by their nature , estimates are subject to an inherent degree of uncertainty . actual results may differ from our estimates and could have a significant adverse effect on our consolidated results of operations and financial position . we believe the following critical accounting policies affect our more significant estimates and judgments in the preparation of our consolidated financial statements . 33 allowance for doubtful accounts we establish credit terms for new clients based upon management 's review of their credit information and project terms , and perform ongoing credit evaluations of our clients , adjusting credit terms when management believes appropriate , based upon payment history and an assessment of their current credit worthiness . we record an allowance for doubtful accounts for estimated losses resulting from the inability of our clients to make required payments . we determine this allowance by considering a number of factors , including the length of time trade accounts receivable are past due , our previous loss history , our estimate of the client 's current ability to pay its obligation to us , and the condition of the general economy and the industry as a whole . while credit losses have generally been within expectations and the provisions established , we can not guarantee that credit loss rates in the future will be consistent with those experienced in the past . in addition , we would have credit exposure if the financial condition of one of our major clients were to deteriorate . in the event that the financial condition of our clients were to deteriorate ,

