on an ongoing basis , our management evaluates its estimates , including those related to revenue recognition , long-lived assets , insurance and legal matters , share-based payments and income taxes . we base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from those estimates . changes in our accounting policies and estimates could materially impact our results of operations and financial condition for any particular period . we believe that our most critical accounting policies and estimates are : revenue recognition . we earn revenues through our network of u.s. company-owned and franchised stores , dough manufacturing and supply chain centers and international operations . retail sales from franchised stores are reported to us by our franchisees and are not included in our revenues . retail sales from company-owned stores and royalty revenues resulting from the retail sales from franchised stores are recognized as revenues when the items are delivered to or carried out by customers . retail sales are generally reported , and the related royalties paid to us based on a percentage of retail sales , as specified in the related standard franchise agreement ( generally 5.5 % of u.s. franchise retail sales and were on average , 2.9 % of international franchise retail sales in 2020 ) . u.s. and international franchise fee revenue primarily relates to per-transaction technology fees that are recognized as the related sales occur . we also generate revenues from u.s. franchise advertising contributions to dnaf , our consolidated not-for-profit advertising fund ( generally 6.0 % of u.s. franchise retail sales ) . although these revenues are restricted to be used only for advertising and promotional activities to benefit franchised stores , we have determined there are not performance obligations associated with the franchise advertising contributions received by dnaf that are separate from our u.s. royalty payment stream and as a result , these franchise contributions and the related expenses are presented gross in the consolidated statements of income . revenues from company-owned stores and revenues from franchised stores ( including u.s. franchise royalties and fees and u.s. franchise advertising revenues ) can fluctuate from time-to-time as a result of store count and sales level changes . sales of food from our supply chain centers are recognized as revenues upon delivery of the food to franchisees , while sales of equipment and supplies are generally recognized as revenues upon shipment of the related products to franchisees . long-lived assets . we record long-lived assets , including property , plant and equipment and capitalized software , at cost . for acquisitions of franchise operations , we estimate the fair values of the assets and liabilities acquired based on physical inspection of assets , historical experience and other information available to us regarding the acquisition . we depreciate and amortize long-lived assets using useful lives determined by us based on historical experience and other information available to us . we evaluate the potential impairment of long-lived assets at least annually or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable . our evaluation is based on various analyses , including the projection of undiscounted cash flows . for company-owned stores , we perform related impairment tests on an operating market basis , which we have determined to be the lowest level for which identifiable cash flows are largely independent of other cash flows . if the carrying amount of a long-lived asset exceeds the amount of the expected future undiscounted cash flows of that asset , we estimate the fair value of the asset . if the carrying amount of the asset exceeds the estimated fair value of the asset , an impairment loss is recognized , and the asset is written down to its estimated fair value . we have not made any significant changes in the methodology used to project the future market cash flows of company-owned stores during the years presented . same store sales fluctuations and the rates at which operating costs will fluctuate in the future are key factors in evaluating recoverability of the related assets . if our same store sales significantly decline or if operating costs increase and we are unable to recover these costs , the carrying value of our company-owned stores , by market , may be unrecoverable and we may be required to recognize an impairment charge . insurance and legal matters . we are a party to lawsuits and legal proceedings arising in the ordinary course of business . management closely monitors these legal matters and estimates the probable costs for the resolution of such matters . these estimates are primarily determined by consulting with both internal and external parties handling the matters and are based upon an analysis of potential results , assuming a combination of litigation and settlement strategies . legal judgments can be volatile and difficult to predict . accordingly , if our estimates relating to legal matters proved inaccurate for any reason , we may be required to increase or decrease the related expense in future periods . we had accruals for legal matters of approximately $ 1.3 million and $ 1.8 million at january 3 , 2021 december 29 , 2019 , respectively . 28 for certain periods prior to december 1998 and for periods after december 2001 , we maintain insurance coverage for workers ' compensation , general liability and owned and non-owned auto liabilities . we are generally responsible for up to $ 2.0 million per occurrence under these retention programs for workers ' compensation and general liability , depending on policy year and line of coverage . story_separator_special_tag labor costs increased 1.9 percentage points to 30.9 % in 2020 , due primarily to additional compensation expense for frontline team members during the covid-19 pandemic . these increases were partially offset by reduced labor costs as a percentage of store revenues resulting from the 2019 store sale due to the higher labor rates in the market in which the sold stores operated . 33 supply chain operating margin replace_table_token_11_th supply chain operating margin increased $ 38.5 million , or 16.4 % , in 2020 , primarily driven by higher volumes from increased orders , as well as an estimated $ 6.4 million impact of the 53 rd week . as a percentage of supply chain revenues , the supply chain operating margin increased 0.1 percentage points in 2020 , due primarily to lower delivery costs as a percentage of revenues as a result of leveraging of higher same store sales and lower fuel prices , partially offset by higher food costs . general and administrative expenses general and administrative expenses increased $ 24.3 million , or 6.4 % , in 2020 , driven primarily by higher variable performance-based compensation expense and professional fees , as well as an estimated $ 5.6 million impact of the 53 rd week . these increases were partially offset by lower travel expenses resulting from travel restrictions associated with the covid-19 pandemic . u.s. franchise advertising expenses u.s. franchise advertising expenses increased $ 71.4 million , or 18.3 % , in 2020 , due to higher u.s. franchise advertising revenue , including an estimated $ 10.4 million impact of the 53 rd week . u.s. franchise advertising costs are accrued and expensed when the related u.s. franchise advertising revenues are recognized , as our consolidated not-for-profit advertising fund is obligated to expend such revenues on advertising and these revenues can not be used for general corporate purposes . interest expense , net interest expense , net , increased $ 23.7 million , or 16.1 % , in 2020 driven primarily by higher average debt balances resulting from the 2019 recapitalization and borrowings under the company 's variable funding notes in 2020 , as well as an estimated $ 2.6 million impact of the 53 rd week . our weighted average borrowing rate decreased to 3.9 % in 2020 , from 4.1 % in 2019 , resulting from the lower interest rates on the debt outstanding in 2020 as compared to the same periods in 2019. provision for income taxes provision for income taxes decreased $ 18.1 million , or 22.1 % , in 2020 and the effective tax rate decreased to 11.5 % in 2020 as compared to 17.0 % in 2019 due primarily to higher excess tax benefits on equity-based compensation , which are recorded as a reduction to the income tax provision . excess tax benefits from equity-based compensation were $ 60.4 million in 2020 and were $ 25.7 million in 2019. the increase in excess tax benefits resulted from a significant increase in stock options exercised in 2020 as compared to 2019. the decrease in provision for income taxes was partially offset by higher pre-tax income and , to a lesser extent , an increase in the valuation allowance associated with foreign tax credits and interest deductibility in separately-filed states . we estimate the 53 rd week resulted in an increase of $ 4.0 million on the provision for income taxes . segment income we evaluate the performance of our reportable segments and allocate resources to them based on earnings before interest , taxes , depreciation , amortization and other , referred to as segment income . segment income for each of our reportable segments is summarized in the table below . other segment income primarily includes corporate administrative costs that are not allocable to an operating segment , including labor , computer expenses , professional fees , travel and entertainment , rent , insurance and other corporate administrative costs . replace_table_token_12_th 34 u.s. stores u.s. stores segment income increased $ 73.4 million , or 20.3 % , in 2020 , primarily as a result of the increase in revenues from u.s. franchise royalties and fees of $ 74.7 million discussed above . u.s. franchise revenues do not have a cost of sales component , so changes in these revenues have a disproportionate effect on u.s. stores segment income . u.s. franchise advertising costs are accrued and expensed when the related u.s. franchise advertising revenues are recognized and have no impact on u.s. stores segment income . the increase in u.s. stores segment income was partially offset by the $ 1.4 million decrease in u.s. company-owned store operating margin discussed above . supply chain supply chain segment income increased $ 38.6 million , or 19.3 % , in 2020 , due primarily to the $ 38.5 million increase in operating margin described above . international franchise international franchise segment income increased $ 10.3 million , or 5.5 % , in 2020 , due primarily to the $ 8.8 million increase in international franchise revenues discussed above . international franchise revenues do not have a cost of sales component , so changes in these revenues have a disproportionate effect on international franchise segment income . lower travel expenses , primarily due to travel restrictions resulting from the covid-19 pandemic , also contributed to the increase in international franchise segment income . other other segment income decreased $ 16.6 million , or 45.1 % , in 2020 , due primarily to higher variable performance-based compensation expense . the decrease in other segment income was partially offset by higher corporate administrative costs allocated to our segments as compared to 2019. the increase in allocated costs in 2020 was due primarily to higher investments in technological initiatives to support technology for our u.s. and international franchise stores . new accounting pronouncements the impact of new accounting pronouncements adopted and the estimated impact of new accounting pronouncements that we will adopt in future years is included

restricted cash as of january 3 , 2021 , we had approximately $ 177.1 million of restricted cash and cash equivalents held for future principal and interest payments and other working capital requirements of our asset-backed securitization structure , $ 39.6 million of restricted cash equivalents held in a three-month interest reserve as required by the related debt agreements and $ 0.8 million of other restricted cash for a total of $ 217.5 million of restricted cash and cash equivalents . as of january 3 , 2021 , we also held $ 115.9 million of advertising fund restricted cash and cash equivalents , which can only be used for activities that promote the domino 's brand . long-term debt 2019 recapitalization on november 19 , 2019 , we completed the 2019 recapitalization in which certain of our subsidiaries issued $ 675.0 million series 2019-1 3.668 % fixed rate senior secured notes , class a-2 with an anticipated term of 10 years ( the “ 2019 fixed rate notes ” ) pursuant to an asset-backed securitization . concurrently , we also issued the 2019 variable funding notes . our previous variable funding note facility was canceled . gross proceeds from the issuance of the 2019 fixed rate notes was $ 675.0 million . additional information related to the 2019 recapitalization transaction is included in note 4 to our consolidated financial statements . the proceeds from the 2019 recapitalization were used to pre-fund a portion of the principal and interest payable on the 2019 fixed rate notes , pay transaction fees and expenses and repurchase and retire shares of our common stock .


 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.
     ```restricted cash as of january 3 , 2021 , we had approximately $ 177.1 million of restricted cash and cash equivalents held for future principal and interest payments and other working capital requirements of our asset-backed securitization structure , $ 39.6 million of restricted cash equivalents held in a three-month interest reserve as required by the related debt agreements and $ 0.8 million of other restricted cash for a total of $ 217.5 million of restricted cash and cash equivalents . as of january 3 , 2021 , we also held $ 115.9 million of advertising fund restricted cash and cash equivalents , which can only be used for activities that promote the domino 's brand . long-term debt 2019 recapitalization on november 19 , 2019 , we completed the 2019 recapitalization in which certain of our subsidiaries issued $ 675.0 million series 2019-1 3.668 % fixed rate senior secured notes , class a-2 with an anticipated term of 10 years ( the “ 2019 fixed rate notes ” ) pursuant to an asset-backed securitization . concurrently , we also issued the 2019 variable funding notes . our previous variable funding note facility was canceled . gross proceeds from the issuance of the 2019 fixed rate notes was $ 675.0 million . additional information related to the 2019 recapitalization transaction is included in note 4 to our consolidated financial statements . the proceeds from the 2019 recapitalization were used to pre-fund a portion of the principal and interest payable on the 2019 fixed rate notes , pay transaction fees and expenses and repurchase and retire shares of our common stock .
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 Suspicious Activity Report : on an ongoing basis , our management evaluates its estimates , including those related to revenue recognition , long-lived assets , insurance and legal matters , share-based payments and income taxes . we base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from those estimates . changes in our accounting policies and estimates could materially impact our results of operations and financial condition for any particular period . we believe that our most critical accounting policies and estimates are : revenue recognition . we earn revenues through our network of u.s. company-owned and franchised stores , dough manufacturing and supply chain centers and international operations . retail sales from franchised stores are reported to us by our franchisees and are not included in our revenues . retail sales from company-owned stores and royalty revenues resulting from the retail sales from franchised stores are recognized as revenues when the items are delivered to or carried out by customers . retail sales are generally reported , and the related royalties paid to us based on a percentage of retail sales , as specified in the related standard franchise agreement ( generally 5.5 % of u.s. franchise retail sales and were on average , 2.9 % of international franchise retail sales in 2020 ) . u.s. and international franchise fee revenue primarily relates to per-transaction technology fees that are recognized as the related sales occur . we also generate revenues from u.s. franchise advertising contributions to dnaf , our consolidated not-for-profit advertising fund ( generally 6.0 % of u.s. franchise retail sales ) . although these revenues are restricted to be used only for advertising and promotional activities to benefit franchised stores , we have determined there are not performance obligations associated with the franchise advertising contributions received by dnaf that are separate from our u.s. royalty payment stream and as a result , these franchise contributions and the related expenses are presented gross in the consolidated statements of income . revenues from company-owned stores and revenues from franchised stores ( including u.s. franchise royalties and fees and u.s. franchise advertising revenues ) can fluctuate from time-to-time as a result of store count and sales level changes . sales of food from our supply chain centers are recognized as revenues upon delivery of the food to franchisees , while sales of equipment and supplies are generally recognized as revenues upon shipment of the related products to franchisees . long-lived assets . we record long-lived assets , including property , plant and equipment and capitalized software , at cost . for acquisitions of franchise operations , we estimate the fair values of the assets and liabilities acquired based on physical inspection of assets , historical experience and other information available to us regarding the acquisition . we depreciate and amortize long-lived assets using useful lives determined by us based on historical experience and other information available to us . we evaluate the potential impairment of long-lived assets at least annually or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable . our evaluation is based on various analyses , including the projection of undiscounted cash flows . for company-owned stores , we perform related impairment tests on an operating market basis , which we have determined to be the lowest level for which identifiable cash flows are largely independent of other cash flows . if the carrying amount of a long-lived asset exceeds the amount of the expected future undiscounted cash flows of that asset , we estimate the fair value of the asset . if the carrying amount of the asset exceeds the estimated fair value of the asset , an impairment loss is recognized , and the asset is written down to its estimated fair value . we have not made any significant changes in the methodology used to project the future market cash flows of company-owned stores during the years presented . same store sales fluctuations and the rates at which operating costs will fluctuate in the future are key factors in evaluating recoverability of the related assets . if our same store sales significantly decline or if operating costs increase and we are unable to recover these costs , the carrying value of our company-owned stores , by market , may be unrecoverable and we may be required to recognize an impairment charge . insurance and legal matters . we are a party to lawsuits and legal proceedings arising in the ordinary course of business . management closely monitors these legal matters and estimates the probable costs for the resolution of such matters . these estimates are primarily determined by consulting with both internal and external parties handling the matters and are based upon an analysis of potential results , assuming a combination of litigation and settlement strategies . legal judgments can be volatile and difficult to predict . accordingly , if our estimates relating to legal matters proved inaccurate for any reason , we may be required to increase or decrease the related expense in future periods . we had accruals for legal matters of approximately $ 1.3 million and $ 1.8 million at january 3 , 2021 december 29 , 2019 , respectively . 28 for certain periods prior to december 1998 and for periods after december 2001 , we maintain insurance coverage for workers ' compensation , general liability and owned and non-owned auto liabilities . we are generally responsible for up to $ 2.0 million per occurrence under these retention programs for workers ' compensation and general liability , depending on policy year and line of coverage . story_separator_special_tag labor costs increased 1.9 percentage points to 30.9 % in 2020 , due primarily to additional compensation expense for frontline team members during the covid-19 pandemic . these increases were partially offset by reduced labor costs as a percentage of store revenues resulting from the 2019 store sale due to the higher labor rates in the market in which the sold stores operated . 33 supply chain operating margin replace_table_token_11_th supply chain operating margin increased $ 38.5 million , or 16.4 % , in 2020 , primarily driven by higher volumes from increased orders , as well as an estimated $ 6.4 million impact of the 53 rd week . as a percentage of supply chain revenues , the supply chain operating margin increased 0.1 percentage points in 2020 , due primarily to lower delivery costs as a percentage of revenues as a result of leveraging of higher same store sales and lower fuel prices , partially offset by higher food costs . general and administrative expenses general and administrative expenses increased $ 24.3 million , or 6.4 % , in 2020 , driven primarily by higher variable performance-based compensation expense and professional fees , as well as an estimated $ 5.6 million impact of the 53 rd week . these increases were partially offset by lower travel expenses resulting from travel restrictions associated with the covid-19 pandemic . u.s. franchise advertising expenses u.s. franchise advertising expenses increased $ 71.4 million , or 18.3 % , in 2020 , due to higher u.s. franchise advertising revenue , including an estimated $ 10.4 million impact of the 53 rd week . u.s. franchise advertising costs are accrued and expensed when the related u.s. franchise advertising revenues are recognized , as our consolidated not-for-profit advertising fund is obligated to expend such revenues on advertising and these revenues can not be used for general corporate purposes . interest expense , net interest expense , net , increased $ 23.7 million , or 16.1 % , in 2020 driven primarily by higher average debt balances resulting from the 2019 recapitalization and borrowings under the company 's variable funding notes in 2020 , as well as an estimated $ 2.6 million impact of the 53 rd week . our weighted average borrowing rate decreased to 3.9 % in 2020 , from 4.1 % in 2019 , resulting from the lower interest rates on the debt outstanding in 2020 as compared to the same periods in 2019. provision for income taxes provision for income taxes decreased $ 18.1 million , or 22.1 % , in 2020 and the effective tax rate decreased to 11.5 % in 2020 as compared to 17.0 % in 2019 due primarily to higher excess tax benefits on equity-based compensation , which are recorded as a reduction to the income tax provision . excess tax benefits from equity-based compensation were $ 60.4 million in 2020 and were $ 25.7 million in 2019. the increase in excess tax benefits resulted from a significant increase in stock options exercised in 2020 as compared to 2019. the decrease in provision for income taxes was partially offset by higher pre-tax income and , to a lesser extent , an increase in the valuation allowance associated with foreign tax credits and interest deductibility in separately-filed states . we estimate the 53 rd week resulted in an increase of $ 4.0 million on the provision for income taxes . segment income we evaluate the performance of our reportable segments and allocate resources to them based on earnings before interest , taxes , depreciation , amortization and other , referred to as segment income . segment income for each of our reportable segments is summarized in the table below . other segment income primarily includes corporate administrative costs that are not allocable to an operating segment , including labor , computer expenses , professional fees , travel and entertainment , rent , insurance and other corporate administrative costs . replace_table_token_12_th 34 u.s. stores u.s. stores segment income increased $ 73.4 million , or 20.3 % , in 2020 , primarily as a result of the increase in revenues from u.s. franchise royalties and fees of $ 74.7 million discussed above . u.s. franchise revenues do not have a cost of sales component , so changes in these revenues have a disproportionate effect on u.s. stores segment income . u.s. franchise advertising costs are accrued and expensed when the related u.s. franchise advertising revenues are recognized and have no impact on u.s. stores segment income . the increase in u.s. stores segment income was partially offset by the $ 1.4 million decrease in u.s. company-owned store operating margin discussed above . supply chain supply chain segment income increased $ 38.6 million , or 19.3 % , in 2020 , due primarily to the $ 38.5 million increase in operating margin described above . international franchise international franchise segment income increased $ 10.3 million , or 5.5 % , in 2020 , due primarily to the $ 8.8 million increase in international franchise revenues discussed above . international franchise revenues do not have a cost of sales component , so changes in these revenues have a disproportionate effect on international franchise segment income . lower travel expenses , primarily due to travel restrictions resulting from the covid-19 pandemic , also contributed to the increase in international franchise segment income . other other segment income decreased $ 16.6 million , or 45.1 % , in 2020 , due primarily to higher variable performance-based compensation expense . the decrease in other segment income was partially offset by higher corporate administrative costs allocated to our segments as compared to 2019. the increase in allocated costs in 2020 was due primarily to higher investments in technological initiatives to support technology for our u.s. and international franchise stores . new accounting pronouncements the impact of new accounting pronouncements adopted and the estimated impact of new accounting pronouncements that we will adopt in future years is included

