as described further below , over the last year , we have shifted our licensing model , and as of january 31 , 2020 , a substantial majority of our license revenues consist of revenues from term licenses , and to a much lesser extent , perpetual licenses , under which we generally recognize the license fee portion of these arrangements upfront . as a result , the timing of when we enter into large term and perpetual licenses may lead to fluctuations in our revenues and operating results because our expenses are largely fixed in the short-term . splunk cloud delivers the core capabilities of splunk enterprise as a scalable , reliable cloud service . we typically base our splunk cloud annual subscription fees on either the volume of data indexed per day including a fixed amount of data storage , or purchased infrastructure and data storage our customers require . we recognize the revenues associated with our cloud services ratably over the associated subscription term . splunk enterprise security ( “ es ” ) addresses emerging security threats and security information and event management ( “ siem ” ) use cases through monitoring , alerts and analytics . splunk it service intelligence ( “ itsi ” ) is a machine learning powered monitoring and analytics solution that correlates nearly any kind of data across it and the business to provide monitoring and troubleshooting support and predict problems before they have an impact . splunk phantom automates and orchestrates incident response workflows to take immediate action the moment an incident is detected . victorops is a cloud-based collaborative incident response system that delivers context-rich alerts , reducing the time required to react to and address incidents . signalfx is a cloud-based service that provides real-time monitoring and metrics for cloud infrastructure , microservices and applications observability , as well as application performance management ( “ apm ” ) for organizations . during fiscal 2020 , we rapidly shifted our revenue mix from sales of perpetual licenses to sales of term licenses and cloud subscriptions , and we have substantially completed our transition to a renewable model as of january 31 , 2020. as part of this transition , we discontinued offering new perpetual licenses effective november 1 , 2019. we have also shifted from generally invoicing our multi-year term license contracts upfront to invoicing on an annual basis . accordingly , we have seen the timing of our cash collections extend over a longer period of time than it has been historically , and expect this to negatively impact operating cash flows through at least fiscal 2022. we also expect our business model transition to impact the timing of our recognition of revenue , as well as impact our operating margins as cloud services become a larger percentage of our sales . we use total annual recurring revenue ( “ total arr ” ) and subscription annual recurring revenue ( “ subscription arr ” ) to identify the annual recurring value of customer contracts at the end of a reporting period . total arr represents the annualized revenue run-rate of active term license , maintenance , and subscription contracts at the end of a reporting period . subscription arr represents the annualized revenue run-rate of active subscription contracts at the end of a reporting period . total arr was $ 1.68 billion and subscription arr was $ 442.0 million as of january 31 , 2020 . we intend to continue investing for long-term growth . we have invested and intend to continue to invest heavily in product development to deliver additional features and performance enhancements , deployment models and solutions that can address new end markets . for example , during fiscal 2020 , we released new versions of existing offerings such as splunk itsi and splunk es and introduced splunk data fabric search ( “ dfs ” ) and splunk data stream processor ( “ dsp ” ) . we also introduced splunk business flow , a process mining solution that enables process improvement and business operations professionals to discover , investigate , and check conformance of any business process . we expect to continue to aggressively expand our sales and marketing organizations to market and sell our software both in the united states and internationally . we have utilized and expect to continue to utilize acquisitions to contribute to our long-term growth objectives . during fiscal 2020 , we completed the acquisitions of signalfx , inc. ( “ signalfx ” ) , a developer of real-time monitoring and metrics for 44 cloud infrastructure , microservices and applications , cloud native labs , inc. ( “ omnition ” ) , which develops a platform for distributed tracing and application monitoring and streamlio , inc. , which specializes in designing and operating streaming data solutions . refer to note 6 of our accompanying notes to consolidated financial statements included elsewhere in this annual report on form 10-k for further information . our goal is to make our software the platform for delivering real-time business insights from data . the key elements of our growth strategy are to : extend our technological capabilities . continue to expand our direct and indirect sales organization , including our partner relationships , to increase our sales capacity and enable greater market presence . further penetrate our existing customer base and drive enterprise-wide adoption . enhance our value proposition through a focus on solutions which address core and expanded use cases . grow our user communities and partner ecosystem to increase awareness of our brand , target new use cases , drive operational leverage and deliver more targeted , higher value solutions . continue to deliver a rich developer environment to enable rapid development of enterprise applications that leverage data and the splunk platform . story_separator_special_tag we expect that sales and marketing expenses will continue to increase , in absolute dollars , as we continue to hire additional personnel and invest in marketing programs . general and administrative . general and administrative expenses primarily consist of personnel and facility-related costs for our executive , finance , legal , human resources and administrative personnel ; our legal , accounting and other professional services fees ; and other corporate expenses . we anticipate continuing to incur additional expenses due to growing our operations , including higher legal , corporate insurance and accounting expenses . interest and other income ( expense ) , net interest and other income ( expense ) , net consists primarily of interest expense related to our convertible senior notes , foreign exchange gains and losses , interest income on our investments and cash and cash equivalents balances and changes in the fair value of forward exchange contracts . income tax provision ( benefit ) the income tax provision ( benefit ) consists of federal , state and foreign income taxes . we recognize deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts using enacted tax rates in effect for the year in which we expect the differences to reverse . to the extent that we believe any amounts are not more-likely-than-not to be realized , we record a valuation allowance to reduce the deferred income tax assets . because of our history of u.s. net operating losses , we have established a full valuation allowance against potential future benefits for u.s. deferred tax assets , including loss carryforwards and research and development and other tax credits . we regularly assess the need for the valuation allowance on our deferred tax assets , and to the extent that we determine that an adjustment is needed , such adjustment will be recorded in the period that the determination is made . critical accounting policies and estimates we prepare our consolidated financial statements in accordance with generally accepted accounting principles in the united states ( “ u.s . gaap ” ) . the preparation of consolidated financial statements also requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues , costs and expenses and related disclosures . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances . actual results could differ significantly from the estimates made by our management . to the extent that there are differences between our estimates and actual results , our future financial statement presentation , financial condition , results of operations and cash flows will be affected . we believe that the assumptions and estimates associated with revenue recognition , deferred sales commissions and business combinations have the greatest potential impact on our consolidated financial statements . therefore , we consider these to be our critical accounting policies and estimates . accordingly , we believe these are the most critical to fully understand and evaluate our financial condition and results of operations . revenue recognition 51 our contracts with customers often contain multiple performance obligations . for these contracts , we account for individual performance obligations separately if they are distinct . we apply significant judgment in identifying and accounting for each performance obligation , as a result of evaluating the terms and conditions in contracts . the transaction price is allocated to the separate performance obligations on a relative standalone selling price ( “ ssp ” ) basis . we determine the ssp based on an observable standalone selling price when it is available , as well as other factors , including the price charged to customers , our discounting practices , and our overall pricing objectives , while maximizing observable inputs . in situations where pricing is highly variable , we estimate the ssp using the residual approach . deferred sales commissions sales commissions paid to our sales force and the related payroll taxes are considered incremental and recoverable costs of obtaining a contract with a customer . we generally amortize these costs over the remaining contractual term of our customer contracts , consistent with the pattern of revenue recognition of each performance obligation , for contracts in which the commissions paid on the initial and renewal contracts are commensurate . for certain contracts in which the commissions paid on the initial and renewal contracts are not commensurate , we amortize the commissions paid on the initial contract over an expected period of benefit , which we have determined to be approximately five years . we have determined the period of benefit by taking into consideration our customer contracts , the duration of our relationships with our customers and our technology . in capitalizing and amortizing deferred commissions , we have elected to apply a portfolio approach . business combinations we use our best estimates and assumptions to allocate the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values . the excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill . we apply significant judgment in determining the fair value of the intangible assets acquired , which involves the use of significant estimates and assumptions with respect to revenue growth rates , royalty rate and technology migration curve . while we use our best estimates and judgments , our estimates are inherently uncertain and subject to refinement . during the measurement period , which may be up to one year from the acquisition date , we may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed , with the corresponding offset to goodwill . in addition , uncertain tax positions and tax-related valuation allowances are initially established in connection with a business

net cash used in investing activities was $ 708.0 million for the year ended january 31 , 2020 compared to $ 779.3 million for the prior year . the net decrease in cash used in investing activities was primarily due to the following : + decrease of $ 350.2 million in purchases of investments , net of maturities - increase of $ 200.0 million in cash purchase price paid , net of cash acquired , from our acquisitions of streamlio , signalfx and omnition - increase of $ 78.0 million in purchases of property and equipment financing activities fiscal 2020 - 2019 net cash used in financing activities was $ 100.2 million for the year ended january 31 , 2020 compared to net cash provided by financing activities of $ 1.81 billion for the prior year . the net increase in cash used in financing activities was primarily due to the following : - absence of the issuance of $ 2.11 billion in convertible senior notes , net of initial purchase discounts and issuance costs , partially offset by the absence of $ 274.3 million in cash used to purchase capped calls in connection with the issuance of our convertible senior notes from the prior year - increase in taxes paid related to net share settlement of equity awards contractual obligations operating lease commitments and contractual obligations we lease our office spaces under non-cancelable leases . operating lease costs were $ 49.6 million , excluding short-term leases , variable lease costs and sublease income , which were immaterial , during fiscal 2020 . rent expense recognized 62 prior to our adoption of topic 842 was $ 26.2 million and $ 16.8 million during fiscal 2019 and 2018 , respectively .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```net cash used in investing activities was $ 708.0 million for the year ended january 31 , 2020 compared to $ 779.3 million for the prior year . the net decrease in cash used in investing activities was primarily due to the following : + decrease of $ 350.2 million in purchases of investments , net of maturities - increase of $ 200.0 million in cash purchase price paid , net of cash acquired , from our acquisitions of streamlio , signalfx and omnition - increase of $ 78.0 million in purchases of property and equipment financing activities fiscal 2020 - 2019 net cash used in financing activities was $ 100.2 million for the year ended january 31 , 2020 compared to net cash provided by financing activities of $ 1.81 billion for the prior year . the net increase in cash used in financing activities was primarily due to the following : - absence of the issuance of $ 2.11 billion in convertible senior notes , net of initial purchase discounts and issuance costs , partially offset by the absence of $ 274.3 million in cash used to purchase capped calls in connection with the issuance of our convertible senior notes from the prior year - increase in taxes paid related to net share settlement of equity awards contractual obligations operating lease commitments and contractual obligations we lease our office spaces under non-cancelable leases . operating lease costs were $ 49.6 million , excluding short-term leases , variable lease costs and sublease income , which were immaterial , during fiscal 2020 . rent expense recognized 62 prior to our adoption of topic 842 was $ 26.2 million and $ 16.8 million during fiscal 2019 and 2018 , respectively .
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 Suspicious Activity Report : as described further below , over the last year , we have shifted our licensing model , and as of january 31 , 2020 , a substantial majority of our license revenues consist of revenues from term licenses , and to a much lesser extent , perpetual licenses , under which we generally recognize the license fee portion of these arrangements upfront . as a result , the timing of when we enter into large term and perpetual licenses may lead to fluctuations in our revenues and operating results because our expenses are largely fixed in the short-term . splunk cloud delivers the core capabilities of splunk enterprise as a scalable , reliable cloud service . we typically base our splunk cloud annual subscription fees on either the volume of data indexed per day including a fixed amount of data storage , or purchased infrastructure and data storage our customers require . we recognize the revenues associated with our cloud services ratably over the associated subscription term . splunk enterprise security ( “ es ” ) addresses emerging security threats and security information and event management ( “ siem ” ) use cases through monitoring , alerts and analytics . splunk it service intelligence ( “ itsi ” ) is a machine learning powered monitoring and analytics solution that correlates nearly any kind of data across it and the business to provide monitoring and troubleshooting support and predict problems before they have an impact . splunk phantom automates and orchestrates incident response workflows to take immediate action the moment an incident is detected . victorops is a cloud-based collaborative incident response system that delivers context-rich alerts , reducing the time required to react to and address incidents . signalfx is a cloud-based service that provides real-time monitoring and metrics for cloud infrastructure , microservices and applications observability , as well as application performance management ( “ apm ” ) for organizations . during fiscal 2020 , we rapidly shifted our revenue mix from sales of perpetual licenses to sales of term licenses and cloud subscriptions , and we have substantially completed our transition to a renewable model as of january 31 , 2020. as part of this transition , we discontinued offering new perpetual licenses effective november 1 , 2019. we have also shifted from generally invoicing our multi-year term license contracts upfront to invoicing on an annual basis . accordingly , we have seen the timing of our cash collections extend over a longer period of time than it has been historically , and expect this to negatively impact operating cash flows through at least fiscal 2022. we also expect our business model transition to impact the timing of our recognition of revenue , as well as impact our operating margins as cloud services become a larger percentage of our sales . we use total annual recurring revenue ( “ total arr ” ) and subscription annual recurring revenue ( “ subscription arr ” ) to identify the annual recurring value of customer contracts at the end of a reporting period . total arr represents the annualized revenue run-rate of active term license , maintenance , and subscription contracts at the end of a reporting period . subscription arr represents the annualized revenue run-rate of active subscription contracts at the end of a reporting period . total arr was $ 1.68 billion and subscription arr was $ 442.0 million as of january 31 , 2020 . we intend to continue investing for long-term growth . we have invested and intend to continue to invest heavily in product development to deliver additional features and performance enhancements , deployment models and solutions that can address new end markets . for example , during fiscal 2020 , we released new versions of existing offerings such as splunk itsi and splunk es and introduced splunk data fabric search ( “ dfs ” ) and splunk data stream processor ( “ dsp ” ) . we also introduced splunk business flow , a process mining solution that enables process improvement and business operations professionals to discover , investigate , and check conformance of any business process . we expect to continue to aggressively expand our sales and marketing organizations to market and sell our software both in the united states and internationally . we have utilized and expect to continue to utilize acquisitions to contribute to our long-term growth objectives . during fiscal 2020 , we completed the acquisitions of signalfx , inc. ( “ signalfx ” ) , a developer of real-time monitoring and metrics for 44 cloud infrastructure , microservices and applications , cloud native labs , inc. ( “ omnition ” ) , which develops a platform for distributed tracing and application monitoring and streamlio , inc. , which specializes in designing and operating streaming data solutions . refer to note 6 of our accompanying notes to consolidated financial statements included elsewhere in this annual report on form 10-k for further information . our goal is to make our software the platform for delivering real-time business insights from data . the key elements of our growth strategy are to : extend our technological capabilities . continue to expand our direct and indirect sales organization , including our partner relationships , to increase our sales capacity and enable greater market presence . further penetrate our existing customer base and drive enterprise-wide adoption . enhance our value proposition through a focus on solutions which address core and expanded use cases . grow our user communities and partner ecosystem to increase awareness of our brand , target new use cases , drive operational leverage and deliver more targeted , higher value solutions . continue to deliver a rich developer environment to enable rapid development of enterprise applications that leverage data and the splunk platform . story_separator_special_tag we expect that sales and marketing expenses will continue to increase , in absolute dollars , as we continue to hire additional personnel and invest in marketing programs . general and administrative . general and administrative expenses primarily consist of personnel and facility-related costs for our executive , finance , legal , human resources and administrative personnel ; our legal , accounting and other professional services fees ; and other corporate expenses . we anticipate continuing to incur additional expenses due to growing our operations , including higher legal , corporate insurance and accounting expenses . interest and other income ( expense ) , net interest and other income ( expense ) , net consists primarily of interest expense related to our convertible senior notes , foreign exchange gains and losses , interest income on our investments and cash and cash equivalents balances and changes in the fair value of forward exchange contracts . income tax provision ( benefit ) the income tax provision ( benefit ) consists of federal , state and foreign income taxes . we recognize deferred tax assets and liabilities for the expected tax consequences of temporary differences between the tax basis of assets and liabilities and their reported amounts using enacted tax rates in effect for the year in which we expect the differences to reverse . to the extent that we believe any amounts are not more-likely-than-not to be realized , we record a valuation allowance to reduce the deferred income tax assets . because of our history of u.s. net operating losses , we have established a full valuation allowance against potential future benefits for u.s. deferred tax assets , including loss carryforwards and research and development and other tax credits . we regularly assess the need for the valuation allowance on our deferred tax assets , and to the extent that we determine that an adjustment is needed , such adjustment will be recorded in the period that the determination is made . critical accounting policies and estimates we prepare our consolidated financial statements in accordance with generally accepted accounting principles in the united states ( “ u.s . gaap ” ) . the preparation of consolidated financial statements also requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues , costs and expenses and related disclosures . we base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances . actual results could differ significantly from the estimates made by our management . to the extent that there are differences between our estimates and actual results , our future financial statement presentation , financial condition , results of operations and cash flows will be affected . we believe that the assumptions and estimates associated with revenue recognition , deferred sales commissions and business combinations have the greatest potential impact on our consolidated financial statements . therefore , we consider these to be our critical accounting policies and estimates . accordingly , we believe these are the most critical to fully understand and evaluate our financial condition and results of operations . revenue recognition 51 our contracts with customers often contain multiple performance obligations . for these contracts , we account for individual performance obligations separately if they are distinct . we apply significant judgment in identifying and accounting for each performance obligation , as a result of evaluating the terms and conditions in contracts . the transaction price is allocated to the separate performance obligations on a relative standalone selling price ( “ ssp ” ) basis . we determine the ssp based on an observable standalone selling price when it is available , as well as other factors , including the price charged to customers , our discounting practices , and our overall pricing objectives , while maximizing observable inputs . in situations where pricing is highly variable , we estimate the ssp using the residual approach . deferred sales commissions sales commissions paid to our sales force and the related payroll taxes are considered incremental and recoverable costs of obtaining a contract with a customer . we generally amortize these costs over the remaining contractual term of our customer contracts , consistent with the pattern of revenue recognition of each performance obligation , for contracts in which the commissions paid on the initial and renewal contracts are commensurate . for certain contracts in which the commissions paid on the initial and renewal contracts are not commensurate , we amortize the commissions paid on the initial contract over an expected period of benefit , which we have determined to be approximately five years . we have determined the period of benefit by taking into consideration our customer contracts , the duration of our relationships with our customers and our technology . in capitalizing and amortizing deferred commissions , we have elected to apply a portfolio approach . business combinations we use our best estimates and assumptions to allocate the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values . the excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill . we apply significant judgment in determining the fair value of the intangible assets acquired , which involves the use of significant estimates and assumptions with respect to revenue growth rates , royalty rate and technology migration curve . while we use our best estimates and judgments , our estimates are inherently uncertain and subject to refinement . during the measurement period , which may be up to one year from the acquisition date , we may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed , with the corresponding offset to goodwill . in addition , uncertain tax positions and tax-related valuation allowances are initially established in connection with a business

