within our foundry services group , net sales are driven by customers ' decisions on which manufacturing services provider to use for a particular product . most of our foundry services group customers are fabless , while some are idm customers . a customer will often have more than one supplier of manufacturing services . in any given period , our net sales depend heavily upon the end-market demand for the goods in which the products we manufacture for customers are used , the inventory levels maintained by our customers and in some cases , allocation of demand for manufacturing services among selected qualified suppliers . within our standard products group , net sales are driven by design wins in which we are selected by an electronics original equipment manufacturer ( oem ) or other potential customer to supply its demand for a particular product . a customer will often have more than one supplier designed in to multi-source components for a particular product line . once we have design wins and the products enter into mass production , we often specify the pricing of a particular product for a set period of time , with periodic discussions and renegotiations of pricing with our customers . in any given period , our net sales depend heavily upon the end-market demand for the goods in which our products are used , the inventory levels maintained by our customers and in some cases , allocation of demand for components for a particular product among selected qualified suppliers . in contrast to completely fabless semiconductor companies , our internal manufacturing capacity provides us with greater control over manufacturing costs and the ability to implement process and production improvements for our internally manufactured products , which can favorably impact gross profit margins . our internal manufacturing capacity also allows for better control over delivery schedules , improved consistency over product quality and reliability and improved ability to protect intellectual property from misappropriation on these products . however , having internal manufacturing capacity exposes us to the risk of under-utilization of manufacturing capacity that results in lower gross profit margins , particularly during downturns in the semiconductor industry . our products and services require investments in capital equipment . analog and mixed-signal manufacturing facilities and processes are typically distinguished by the design and process implementation expertise rather than the use of the most advanced equipment . many of these processes also tend to migrate more slowly to smaller geometries due to technological barriers and increased costs . for example , some of our products use high-voltage technology that requires larger geometries and that may not migrate to smaller geometries for several years , if at all . as a result , our manufacturing base and strategy do not require substantial investment in leading edge process equipment for those products , allowing us to utilize our facilities and equipment over an extended period of time with moderate required capital investments . in addition , we are less likely to experience significant industry overcapacity , which can cause product prices to decline significantly . in general , we seek to invest in manufacturing capacity that can be used for multiple high-value applications over an 43 extended period of time . in addition , we outsource manufacturing of those products which do require advanced technology and 12-inch wafer capacity , such as organic light emitting diodes ( oled ) . we believe this balanced capital investment strategy enables us to optimize our capital investments and facilitates more diversified product and service offerings . since 2007 , we have designed and manufactured oled display driver ics in our internal manufacturing facilities . as we expanded our design capabilities to products that require lower geometries unavailable at our existing manufacturing facilities , we began outsourcing manufacturing of certain oled display driver ics to an external 12-inch foundry from the second half of 2015. this additional source of manufacturing is an increasingly important part of our supply chain management . by outsourcing manufacturing of advanced oled products to external 12-inch foundries , we are able to dynamically adapt to the changing customer requirements and address growing markets without substantial capital investments by us . both at the internal 8-inch manufacturing facilities and external 12-inch foundries , we apply our unique oled process patents as well as other intellectual property , proprietary process design kits and custom design-flow methodologies . our success going forward will depend upon our ability to adapt to future challenges such as the emergence of new competitors for our products and services or the consolidation of current competitors . additionally , we must innovate to remain ahead of , or at least rapidly adapt to , technological breakthroughs that may lead to a significant change in the technology necessary to deliver our products and services . we believe that our established relationships and close collaboration with leading customers enhance our awareness of new product opportunities , market and technology trends and improve our ability to adapt and grow successfully . in our foundry services group , we strive to maintain competitiveness by offering high-value added processes , high-flexibility and excellent service by tailoring existing standard processes to meet customers ' design needs and porting customers ' own process technologies into our fabrication facilities . recent developments public health risks in december 2019 , a strain of coronavirus causing a disease known as covid-19 surfaced in wuhan , china , resulting in significant disruptions among chinese manufacturing and other facilities and travel throughout china . while our manufacturing supply chain resides largely outside china , some of the test and packaging services for our power solutions business line are outsourced to independent subcontractors located in china . story_separator_special_tag we present adjusted net income for a number of reasons , including : we use adjusted net income in communications with our board of directors concerning our consolidated financial performance without the impact of non-cash expenses and the other items as we discussed below since we believe that it is a more consistent measure of our core operating results from period to period ; and we believe that reporting adjusted net income is useful to readers in evaluating our core operating results because it eliminates the effects of non-cash expenses as well as the other items we discuss below , such as foreign currency gains and losses , which are out of our control and can vary significantly from period to period . adjusted net income is not a measure defined in accordance with us gaap and should not be construed as an alternative to income from continuing operations , cash flows from operating activities or net income , as determined in accordance with us gaap . we encourage you to evaluate each adjustment and the reasons we consider them appropriate . other companies in our industry may calculate adjusted net income differently than we do , limiting its usefulness as a comparative measure . in addition , in evaluating adjusted net income , you should be aware that in the future we may incur expenses similar to the adjustments in this presentation . we define adjusted net income for the periods indicated as net income ( loss ) , adjusted to exclude ( i ) restructuring and other charges ( gains ) , net , ( ii ) early termination charges , ( iii ) equity-based compensation expense , ( iv ) foreign currency loss ( gain ) , net , ( v ) derivative valuation loss ( gain ) , net , ( vi ) restatement related expenses ( gain ) , ( vii ) secondary offering expense , ( viii ) loss on early extinguishment of long-term borrowings , net and ( ix ) others . the following table summarizes the adjustments to net income ( loss ) that we make in order to calculate adjusted net income for the periods indicated : replace_table_token_5_th ( a ) for the year ended december 31 , 2019 , this adjustment eliminates the impact of a $ 2.2 million restructuring related charge to our fab employees , and a $ 7.0 million in professional fees and other charges incurred in connection with the strategic evaluation . for the year ended december 31 , 2017 , this adjustment eliminates 49 the $ 16.6 million restructuring gain on sale of a building in connection with the closure of our 6-inch fab and the $ 0.4 million gain on sale of our sensor business . as these expenses meaningfully impacted our operating results and are not expected to represent an ongoing operating expense to us , we believe our operating performance results are more usefully compared if these expenses are excluded . ( b ) this adjustment eliminates the charges related to the reduction of workforce through the headcount reduction plan in the first half of 2017. as these termination related charges are recorded as a result of implementing the company-wide headcount reduction and are not expected to represent ongoing operating expenses to us , we believe our operating performance results are more usefully compared if these expenses are excluded . ( c ) this adjustment eliminates the impact of non-cash equity-based compensation expenses . although we expect to incur non-cash equity-based compensation expenses in the future , these expenses do not generally require cash settlement , and , therefore , are not used by us to assess the profitability of our operations . we believe that analysts and investors will find it helpful to review our operating performance without the effects of these non-cash expenses as supplemental information . ( d ) this adjustment mainly eliminates the impact of non-cash foreign currency translation associated with intercompany debt obligations and foreign currency denominated receivables and payables , as well as the cash impact of foreign currency transaction gains or losses on collection of such receivables and payment of such payables . although we expect to incur foreign currency translation gains or losses in the future , we believe that analysts and investors will find it helpful to review our operating performance without the effects of these primarily non-cash gains or losses , which we can not control . additionally , we believe the isolation of this adjustment provides investors with enhanced comparability to prior and future periods of our operating performance results . ( e ) this adjustment eliminates the impact of gain or loss recognized in income on derivatives . for the year ended december 31 , 2019 , this adjustment represents derivatives value changes excluded from the risk being hedged . for the years ended december 31 , 2018 and 2017 , this adjustment represents hedge ineffectiveness or derivatives value changes excluded from the risk being hedged . we enter into derivative transactions to mitigate foreign exchange risks . as our derivative transactions are limited to a certain portion of our expected cash flows denominated in us dollars , and we do not enter into derivative transactions for trading or speculative purposes , we do not believe that these charges or gains are indicative of our core operating performance . ( f ) this adjustment eliminates expenses in connection with the audit committee 's independent investigation and related restatement and litigation , primarily comprised of legal , audit and consulting fees , and certain other expenses . for the year ended december 31 , 2018 , this adjustment eliminates the reversal of a $ 0.8 million accrual related to certain legal fees incurred in prior periods and reimbursed by insurers in the first quarter of 2018. for the year ended december 31 , 2017 , this adjustment includes the $ 3.0 million civil penalty imposed by the sec and the $

liquidity and capital resources our principal capital requirements are to fund sales and marketing , invest in research and development and capital equipment , to make debt service payments and to fund working capital needs . we calculate working capital as current assets less current liabilities . our principal sources of liquidity are our cash , cash equivalents , our cash flows from operations and our financing activities . our ability to manage cash and cash equivalents may be limited , as our primary cash flows are dictated by the terms of our sales and supply agreements , contractual obligations , debt instruments and legal and regulatory requirements . from time to time , we may sell accounts receivable to third parties under factoring agreements or engage in accounts receivable discounting to facilitate the collection of cash . for a description of our factoring arrangements and accounts receivable discounting , please see item 8. financial statements and supplementary datanotes to consolidated financial statementsnote 3. accounts receivable included elsewhere in this report . in addition , from time to time , we may make payments to our vendors on extended terms with their consent . as of december 31 , 2019 , we do not have any accounts payable on extended terms or payment deferment with our vendors . we currently believe that we will have sufficient cash reserves from cash on hand and expected cash from operations to fund our operations as well as capital expenditures for the next twelve months and the foreseeable future . 65 as of december 31 , 2019 , cash and cash equivalents held by our korean subsidiary were $ 147.8 million , which represents 97 % of our total cash and cash equivalents of $ 151.7 million on a consolidated basis . we , as a holding company resident in the united states , issued our 2021 notes .


 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 our principal capital requirements are to fund sales and marketing , invest in research and development and capital equipment , to make debt service payments and to fund working capital needs . we calculate working capital as current assets less current liabilities . our principal sources of liquidity are our cash , cash equivalents , our cash flows from operations and our financing activities . our ability to manage cash and cash equivalents may be limited , as our primary cash flows are dictated by the terms of our sales and supply agreements , contractual obligations , debt instruments and legal and regulatory requirements . from time to time , we may sell accounts receivable to third parties under factoring agreements or engage in accounts receivable discounting to facilitate the collection of cash . for a description of our factoring arrangements and accounts receivable discounting , please see item 8. financial statements and supplementary datanotes to consolidated financial statementsnote 3. accounts receivable included elsewhere in this report . in addition , from time to time , we may make payments to our vendors on extended terms with their consent . as of december 31 , 2019 , we do not have any accounts payable on extended terms or payment deferment with our vendors . we currently believe that we will have sufficient cash reserves from cash on hand and expected cash from operations to fund our operations as well as capital expenditures for the next twelve months and the foreseeable future . 65 as of december 31 , 2019 , cash and cash equivalents held by our korean subsidiary were $ 147.8 million , which represents 97 % of our total cash and cash equivalents of $ 151.7 million on a consolidated basis . we , as a holding company resident in the united states , issued our 2021 notes .
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 Suspicious Activity Report : within our foundry services group , net sales are driven by customers ' decisions on which manufacturing services provider to use for a particular product . most of our foundry services group customers are fabless , while some are idm customers . a customer will often have more than one supplier of manufacturing services . in any given period , our net sales depend heavily upon the end-market demand for the goods in which the products we manufacture for customers are used , the inventory levels maintained by our customers and in some cases , allocation of demand for manufacturing services among selected qualified suppliers . within our standard products group , net sales are driven by design wins in which we are selected by an electronics original equipment manufacturer ( oem ) or other potential customer to supply its demand for a particular product . a customer will often have more than one supplier designed in to multi-source components for a particular product line . once we have design wins and the products enter into mass production , we often specify the pricing of a particular product for a set period of time , with periodic discussions and renegotiations of pricing with our customers . in any given period , our net sales depend heavily upon the end-market demand for the goods in which our products are used , the inventory levels maintained by our customers and in some cases , allocation of demand for components for a particular product among selected qualified suppliers . in contrast to completely fabless semiconductor companies , our internal manufacturing capacity provides us with greater control over manufacturing costs and the ability to implement process and production improvements for our internally manufactured products , which can favorably impact gross profit margins . our internal manufacturing capacity also allows for better control over delivery schedules , improved consistency over product quality and reliability and improved ability to protect intellectual property from misappropriation on these products . however , having internal manufacturing capacity exposes us to the risk of under-utilization of manufacturing capacity that results in lower gross profit margins , particularly during downturns in the semiconductor industry . our products and services require investments in capital equipment . analog and mixed-signal manufacturing facilities and processes are typically distinguished by the design and process implementation expertise rather than the use of the most advanced equipment . many of these processes also tend to migrate more slowly to smaller geometries due to technological barriers and increased costs . for example , some of our products use high-voltage technology that requires larger geometries and that may not migrate to smaller geometries for several years , if at all . as a result , our manufacturing base and strategy do not require substantial investment in leading edge process equipment for those products , allowing us to utilize our facilities and equipment over an extended period of time with moderate required capital investments . in addition , we are less likely to experience significant industry overcapacity , which can cause product prices to decline significantly . in general , we seek to invest in manufacturing capacity that can be used for multiple high-value applications over an 43 extended period of time . in addition , we outsource manufacturing of those products which do require advanced technology and 12-inch wafer capacity , such as organic light emitting diodes ( oled ) . we believe this balanced capital investment strategy enables us to optimize our capital investments and facilitates more diversified product and service offerings . since 2007 , we have designed and manufactured oled display driver ics in our internal manufacturing facilities . as we expanded our design capabilities to products that require lower geometries unavailable at our existing manufacturing facilities , we began outsourcing manufacturing of certain oled display driver ics to an external 12-inch foundry from the second half of 2015. this additional source of manufacturing is an increasingly important part of our supply chain management . by outsourcing manufacturing of advanced oled products to external 12-inch foundries , we are able to dynamically adapt to the changing customer requirements and address growing markets without substantial capital investments by us . both at the internal 8-inch manufacturing facilities and external 12-inch foundries , we apply our unique oled process patents as well as other intellectual property , proprietary process design kits and custom design-flow methodologies . our success going forward will depend upon our ability to adapt to future challenges such as the emergence of new competitors for our products and services or the consolidation of current competitors . additionally , we must innovate to remain ahead of , or at least rapidly adapt to , technological breakthroughs that may lead to a significant change in the technology necessary to deliver our products and services . we believe that our established relationships and close collaboration with leading customers enhance our awareness of new product opportunities , market and technology trends and improve our ability to adapt and grow successfully . in our foundry services group , we strive to maintain competitiveness by offering high-value added processes , high-flexibility and excellent service by tailoring existing standard processes to meet customers ' design needs and porting customers ' own process technologies into our fabrication facilities . recent developments public health risks in december 2019 , a strain of coronavirus causing a disease known as covid-19 surfaced in wuhan , china , resulting in significant disruptions among chinese manufacturing and other facilities and travel throughout china . while our manufacturing supply chain resides largely outside china , some of the test and packaging services for our power solutions business line are outsourced to independent subcontractors located in china . story_separator_special_tag we present adjusted net income for a number of reasons , including : we use adjusted net income in communications with our board of directors concerning our consolidated financial performance without the impact of non-cash expenses and the other items as we discussed below since we believe that it is a more consistent measure of our core operating results from period to period ; and we believe that reporting adjusted net income is useful to readers in evaluating our core operating results because it eliminates the effects of non-cash expenses as well as the other items we discuss below , such as foreign currency gains and losses , which are out of our control and can vary significantly from period to period . adjusted net income is not a measure defined in accordance with us gaap and should not be construed as an alternative to income from continuing operations , cash flows from operating activities or net income , as determined in accordance with us gaap . we encourage you to evaluate each adjustment and the reasons we consider them appropriate . other companies in our industry may calculate adjusted net income differently than we do , limiting its usefulness as a comparative measure . in addition , in evaluating adjusted net income , you should be aware that in the future we may incur expenses similar to the adjustments in this presentation . we define adjusted net income for the periods indicated as net income ( loss ) , adjusted to exclude ( i ) restructuring and other charges ( gains ) , net , ( ii ) early termination charges , ( iii ) equity-based compensation expense , ( iv ) foreign currency loss ( gain ) , net , ( v ) derivative valuation loss ( gain ) , net , ( vi ) restatement related expenses ( gain ) , ( vii ) secondary offering expense , ( viii ) loss on early extinguishment of long-term borrowings , net and ( ix ) others . the following table summarizes the adjustments to net income ( loss ) that we make in order to calculate adjusted net income for the periods indicated : replace_table_token_5_th ( a ) for the year ended december 31 , 2019 , this adjustment eliminates the impact of a $ 2.2 million restructuring related charge to our fab employees , and a $ 7.0 million in professional fees and other charges incurred in connection with the strategic evaluation . for the year ended december 31 , 2017 , this adjustment eliminates 49 the $ 16.6 million restructuring gain on sale of a building in connection with the closure of our 6-inch fab and the $ 0.4 million gain on sale of our sensor business . as these expenses meaningfully impacted our operating results and are not expected to represent an ongoing operating expense to us , we believe our operating performance results are more usefully compared if these expenses are excluded . ( b ) this adjustment eliminates the charges related to the reduction of workforce through the headcount reduction plan in the first half of 2017. as these termination related charges are recorded as a result of implementing the company-wide headcount reduction and are not expected to represent ongoing operating expenses to us , we believe our operating performance results are more usefully compared if these expenses are excluded . ( c ) this adjustment eliminates the impact of non-cash equity-based compensation expenses . although we expect to incur non-cash equity-based compensation expenses in the future , these expenses do not generally require cash settlement , and , therefore , are not used by us to assess the profitability of our operations . we believe that analysts and investors will find it helpful to review our operating performance without the effects of these non-cash expenses as supplemental information . ( d ) this adjustment mainly eliminates the impact of non-cash foreign currency translation associated with intercompany debt obligations and foreign currency denominated receivables and payables , as well as the cash impact of foreign currency transaction gains or losses on collection of such receivables and payment of such payables . although we expect to incur foreign currency translation gains or losses in the future , we believe that analysts and investors will find it helpful to review our operating performance without the effects of these primarily non-cash gains or losses , which we can not control . additionally , we believe the isolation of this adjustment provides investors with enhanced comparability to prior and future periods of our operating performance results . ( e ) this adjustment eliminates the impact of gain or loss recognized in income on derivatives . for the year ended december 31 , 2019 , this adjustment represents derivatives value changes excluded from the risk being hedged . for the years ended december 31 , 2018 and 2017 , this adjustment represents hedge ineffectiveness or derivatives value changes excluded from the risk being hedged . we enter into derivative transactions to mitigate foreign exchange risks . as our derivative transactions are limited to a certain portion of our expected cash flows denominated in us dollars , and we do not enter into derivative transactions for trading or speculative purposes , we do not believe that these charges or gains are indicative of our core operating performance . ( f ) this adjustment eliminates expenses in connection with the audit committee 's independent investigation and related restatement and litigation , primarily comprised of legal , audit and consulting fees , and certain other expenses . for the year ended december 31 , 2018 , this adjustment eliminates the reversal of a $ 0.8 million accrual related to certain legal fees incurred in prior periods and reimbursed by insurers in the first quarter of 2018. for the year ended december 31 , 2017 , this adjustment includes the $ 3.0 million civil penalty imposed by the sec and the $

