in the fourth quarter of fiscal 2011 , we completed the acquisition of substantially all of the assets of vertex , for approximately $ 27.2 million . in addition to the manufacture of sodium hypochlorite bleaches , vertex distributes and provides terminal services for bulk liquid inorganic chemicals , and contract and private label packaging for household chemicals . we believe the acquisition strengthens our market position in the midwest . operating results of vertex are included in our consolidated results of operations from the date of acquisition in this annual report on form 10-k as part of our industrial segment . see note 2 to the consolidated financial statements for further information . in fiscal 2010 , we completed two new facilities to expand our ability to service our customers and facilitate growth within our industrial group . our facility in centralia , illinois began operations in july 2009 and primarily serves our food-grade and agriculture products businesses . we also opened a facility in minneapolis , minnesota , to handle bulk chemicals sold to pharmaceutical manufacturers . we opened one new branch for our water treatment group in fiscal 2012 and two new branches in fiscal 2011 and expect to continue to invest in existing and new branches to expand our water treatment group 's geographic coverage . the cost of these branch expansions is not expected to be material . in addition , we have selectively added route sales personnel to certain existing water treatment group branch offices to spur growth within our existing geographic coverage area . in february 2009 , we agreed to sell our inventory and entered into a marketing agreement regarding the business of our pharmaceutical segment , which provided pharmaceutical chemicals to retail pharmacies and small-scale pharmaceutical manufacturers . the transaction closed in may 2009 and we have no significant obligations to fulfill under the agreement . the results of the pharmaceutical segment have been reported as discontinued operations in our consolidated financial statements for all periods presented in this annual report on form 10-k. our financial performance in fiscal 2012 was highlighted by : sales from continuing operations of $ 343.8 million , a 15.5 % increase from fiscal 2011 ; gross profit from continuing operations of $ 65.9 million or 19.2 % of sales , a $ 4.0 million increase in gross profit dollars from fiscal 2011 ; 16 net cash provided by operating activities of $ 33.7 million ; and cash and cash equivalents and investments available for sale were $ 45.9 million as of the end of fiscal 2012. we seek to maintain relatively constant gross profit dollars on each of our products as the cost of our raw materials increase or decrease . since we expect that we will continue to experience fluctuations in our raw material costs and resulting prices in the future , we believe that gross profit dollars is the best measure of our profitability from the sale of our products . if we maintain relatively stable gross profit dollars on each of our products , our reported gross profit percentage will decrease when the cost of the product increases and will increase when the cost of the product decreases . we use the last in , first out ( lifo ) method of valuing the vast majority of hawkins ' inventory , which causes the most recent product costs to be recognized in our income statement . the valuation of lifo inventory for interim periods is based on our estimates of fiscal year-end inventory levels and costs . the lifo inventory valuation method and the resulting cost of sales are consistent with our business practices of pricing to current commodity chemical raw material prices . our lifo reserve increased by $ 1.6 million in fiscal 2012 primarily due to volumes and mix of commodity chemicals in inventory at the end of the year . the increased reserve decreased our reported gross profit for the year . our lifo reserve increased by $ 3.9 million in fiscal 2011 due to rising costs and higher inventory volumes on hand at year-end maintained to meet customer requirements during an anticipated flood . this increase in the reserve decreased our reported gross profit in fiscal 2011. results of operations the following table sets forth certain items from our statement of income as a percentage of sales from period to period : replace_table_token_5_th fiscal 2012 compared to fiscal 2011 sales sales increased $ 46.2 million , or 15.5 % , to $ 343.8 million for fiscal 2012 , as compared to sales of $ 297.6 million for fiscal 2011. vertex , which we acquired during the fourth quarter of 2011 , contributed $ 32.9 million of the increase in sales for fiscal 2012. we also experienced increased sales as a result of higher selling prices due to increased commodity chemical prices . sales of bulk chemicals , including caustic soda , were approximately 23 % of sales compared to approximately 20 % in the previous year . the increase in the bulk 17 chemical sales percentage for fiscal 2012 was primarily attributable to a full year of vertex sales volumes compared to a partial year of sales volumes in fiscal 2011. industrial segment . industrial segment sales increased $ 42.7 million , or 20.5 % , to $ 251.4 million for fiscal 2012. vertex contributed $ 32.9 million of the increase in sales for fiscal 2012. we experienced higher selling prices due to increased commodity chemical prices . water treatment segment . story_separator_special_tag gross profit gross profit was $ 61.9 million , or 20.8 % of sales , for fiscal 2011 , as compared to $ 64.4 million , or 25.1 % of sales , for fiscal 2010. the lifo method of valuing inventory negatively impacted gross profit by $ 3.9 million for fiscal 2011 due to increased raw material costs and higher volumes of inventory at year end maintained to meet customer requirements during an anticipated flood . in the prior year , lifo positively impacted gross profit by $ 12.6 million due to decreases in certain raw material costs during that period . industrial segment . gross profit for the industrial segment was $ 36.9 million , or 17.7 % of sales , for fiscal 2011 , as compared to $ 37.3 million , or 21.3 % of sales , for fiscal 2010. competitive pricing pressures and increased operational overhead costs contributed to the lower gross profit levels in the industrial segment . this group incurred $ 0.3 million of overhead costs associated with flood control efforts in the fourth quarter of fiscal 2011. these reductions in gross profit were partially offset by higher sales of higher margin manufactured and specialty chemical products . the lifo method of valuing inventory negatively impacted gross profit in this segment by $ 2.9 million in fiscal 2011 , as compared to positively impacting gross profit by $ 10.2 million in fiscal 2010. water treatment segment . gross profit for the water treatment segment was $ 25.0 million , or 28.1 % of sales , for fiscal 2011 , as compared to $ 27.2 million , or 33.0 % of sales , for fiscal 2010. the decrease in gross profit dollars was primarily due to competitive pricing pressures and increased operational overhead costs , partially offset by increased sales . additionally , the lifo method of valuing inventory negatively impacted gross profit in this segment by $ 1.1 million in fiscal 2011 , as compared to positively impacting gross profit by $ 2.4 million in fiscal 2010 . 19 selling , general and administrative expenses selling , general and administrative ( sg & a ) expenses increased $ 4.3 million to $ 29.9 million , or 10.1 % of sales , for fiscal 2011 , as compared to $ 25.6 million , or 10.0 % of sales , for fiscal 2010. we incurred approximately $ 1.0 million in additional expense as a result of the death of john hawkins , our former chief executive officer , through payments due under his retention bonus agreement and the accelerated vesting of his previously granted performance-based restricted stock units and stock options . other items driving the increased expenses include acquisition costs of approximately $ 0.7 million relating to the vertex acquisition in addition to higher equity incentive plan costs and litigation defense costs . operating income operating income was $ 32.0 million , or 10.7 % of sales , for fiscal 2011 , as compared to $ 38.8 million , or 15.1 % of sales , for fiscal 2010. the decrease in operating income was the result of reduced gross profits and increased sg & a expenses . both reporting segments saw a decline in their gross profit dollars due to competitive pricing pressures and higher operational overhead costs . both segments were also negatively impacted by the lifo method of valuing inventory in fiscal 2011. investment income investment income was $ 0.3 million for fiscal 2011 and fiscal 2010. provision for income taxes our effective income tax rate was 37.1 % for fiscal 2011 compared to 39.3 % for fiscal 2010. the lower effective tax rate for fiscal 2011 was primarily due to increased permanent tax differences , lower taxable income levels and somewhat lower effective state tax rates . story_separator_special_tag future cash flows requires us to make significant estimates regarding future revenues and expenses , projected capital expenditures , changes in working capital and the appropriate discount rate . the projections also take into account several factors including current and estimated economic trends and outlook , costs of raw materials , consideration of our market capitalization in comparison to the estimated fair values of our reporting units determined using discounted cash flow analyses and other factors which are beyond our control . we completed step one of our annual goodwill impairment evaluation during the fourth quarter of fiscal 2012 and determined that our reporting units ' fair value substantially exceeded their carrying value . accordingly , step two of the impairment analysis was not required . we also completed an impairment test of infinite-life intangible assets during the fourth quarter , in which the fair value exceeded the carrying amount . additionally , no impairment charges were required for fiscal 2011 or 2010. impairment of long-lived assets  we review the recoverability of long-lived assets to be held and used , such as property , plant and equipment and intangible assets subject to amortization , when events or changes in circumstances occur that indicate the carrying value of the asset or asset group may not be recoverable , such as prolonged industry downturn or significant reductions in projected future cash flows . the assessment of possible impairment is based on our ability to recover the carrying value of the asset or asset group from the expected future pre-tax cash flows ( undiscounted ) of the related operations . if these cash flows are less than the carrying value of such asset or asset group , an impairment is recognized equal to the amount by which the carrying value exceeds the fair value of the long-lived assets . the measurement of impairment requires us to estimate future cash flows and the fair value of long-lived assets . significant judgments and assumptions are required in the forecast of future operating results used in the preparation of the estimated future cash flows . we periodically review the appropriateness of the estimated useful lives of our long-lived assets .

liquidity and capital resources cash provided by operating activities in fiscal 2012 was $ 33.7 million compared to $ 28.5 million in fiscal 2011 and $ 38.8 million in fiscal 2010. the increase in cash provided by operating activities in fiscal 2012 from fiscal 2011 was primarily due to increases in net income and depreciation and amortization . higher working capital balances used $ 1.9 million in cash in fiscal 2012 compared to cash used of $ 0.4 million for working capital in fiscal 2011. the net increase in working capital balances in fiscal 2012 was primarily due to increasing commodity chemical costs and the resulting increase in selling prices , which resulted in an increase in trade receivables , lower accounts payable and income tax payable balances due to the timing of payments . due to the nature of our operations , which includes purchases of large quantities of bulk chemicals , the timing of purchases can result in significant changes in working capital investment and the resulting operating cash flow . historically , our cash requirements for working capital increase during the period from april through november as caustic soda inventory levels increase as the majority of barges are received during this period . cash used in financing activities was $ 3.7 million in fiscal 2012 compared to $ 6.9 million in fiscal 2011 and $ 6.6 million in fiscal 2010. the decrease in cash used in financing activities in fiscal 2012 was primarily due to proceeds from the exercise of employee stock options , recognition of excess tax benefits from share-based compensation and proceeds from the issuance of new shares of common stock for the company 's employee stock purchase plan . cash and investments available-for-sale of $ 45.9 million at april 1 , 2012 increased by $ 8.5 million as compared with april 3 , 2011 , primarily due to cash generated from operations , proceeds from the exercise of employee stock options and proceeds from the issuance of new shares of common stock through the company 's employee stock purchase plan , partially offset by capital expenditures and dividend payments .


 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 cash provided by operating activities in fiscal 2012 was $ 33.7 million compared to $ 28.5 million in fiscal 2011 and $ 38.8 million in fiscal 2010. the increase in cash provided by operating activities in fiscal 2012 from fiscal 2011 was primarily due to increases in net income and depreciation and amortization . higher working capital balances used $ 1.9 million in cash in fiscal 2012 compared to cash used of $ 0.4 million for working capital in fiscal 2011. the net increase in working capital balances in fiscal 2012 was primarily due to increasing commodity chemical costs and the resulting increase in selling prices , which resulted in an increase in trade receivables , lower accounts payable and income tax payable balances due to the timing of payments . due to the nature of our operations , which includes purchases of large quantities of bulk chemicals , the timing of purchases can result in significant changes in working capital investment and the resulting operating cash flow . historically , our cash requirements for working capital increase during the period from april through november as caustic soda inventory levels increase as the majority of barges are received during this period . cash used in financing activities was $ 3.7 million in fiscal 2012 compared to $ 6.9 million in fiscal 2011 and $ 6.6 million in fiscal 2010. the decrease in cash used in financing activities in fiscal 2012 was primarily due to proceeds from the exercise of employee stock options , recognition of excess tax benefits from share-based compensation and proceeds from the issuance of new shares of common stock for the company 's employee stock purchase plan . cash and investments available-for-sale of $ 45.9 million at april 1 , 2012 increased by $ 8.5 million as compared with april 3 , 2011 , primarily due to cash generated from operations , proceeds from the exercise of employee stock options and proceeds from the issuance of new shares of common stock through the company 's employee stock purchase plan , partially offset by capital expenditures and dividend payments .
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 Suspicious Activity Report : in the fourth quarter of fiscal 2011 , we completed the acquisition of substantially all of the assets of vertex , for approximately $ 27.2 million . in addition to the manufacture of sodium hypochlorite bleaches , vertex distributes and provides terminal services for bulk liquid inorganic chemicals , and contract and private label packaging for household chemicals . we believe the acquisition strengthens our market position in the midwest . operating results of vertex are included in our consolidated results of operations from the date of acquisition in this annual report on form 10-k as part of our industrial segment . see note 2 to the consolidated financial statements for further information . in fiscal 2010 , we completed two new facilities to expand our ability to service our customers and facilitate growth within our industrial group . our facility in centralia , illinois began operations in july 2009 and primarily serves our food-grade and agriculture products businesses . we also opened a facility in minneapolis , minnesota , to handle bulk chemicals sold to pharmaceutical manufacturers . we opened one new branch for our water treatment group in fiscal 2012 and two new branches in fiscal 2011 and expect to continue to invest in existing and new branches to expand our water treatment group 's geographic coverage . the cost of these branch expansions is not expected to be material . in addition , we have selectively added route sales personnel to certain existing water treatment group branch offices to spur growth within our existing geographic coverage area . in february 2009 , we agreed to sell our inventory and entered into a marketing agreement regarding the business of our pharmaceutical segment , which provided pharmaceutical chemicals to retail pharmacies and small-scale pharmaceutical manufacturers . the transaction closed in may 2009 and we have no significant obligations to fulfill under the agreement . the results of the pharmaceutical segment have been reported as discontinued operations in our consolidated financial statements for all periods presented in this annual report on form 10-k. our financial performance in fiscal 2012 was highlighted by : sales from continuing operations of $ 343.8 million , a 15.5 % increase from fiscal 2011 ; gross profit from continuing operations of $ 65.9 million or 19.2 % of sales , a $ 4.0 million increase in gross profit dollars from fiscal 2011 ; 16 net cash provided by operating activities of $ 33.7 million ; and cash and cash equivalents and investments available for sale were $ 45.9 million as of the end of fiscal 2012. we seek to maintain relatively constant gross profit dollars on each of our products as the cost of our raw materials increase or decrease . since we expect that we will continue to experience fluctuations in our raw material costs and resulting prices in the future , we believe that gross profit dollars is the best measure of our profitability from the sale of our products . if we maintain relatively stable gross profit dollars on each of our products , our reported gross profit percentage will decrease when the cost of the product increases and will increase when the cost of the product decreases . we use the last in , first out ( lifo ) method of valuing the vast majority of hawkins ' inventory , which causes the most recent product costs to be recognized in our income statement . the valuation of lifo inventory for interim periods is based on our estimates of fiscal year-end inventory levels and costs . the lifo inventory valuation method and the resulting cost of sales are consistent with our business practices of pricing to current commodity chemical raw material prices . our lifo reserve increased by $ 1.6 million in fiscal 2012 primarily due to volumes and mix of commodity chemicals in inventory at the end of the year . the increased reserve decreased our reported gross profit for the year . our lifo reserve increased by $ 3.9 million in fiscal 2011 due to rising costs and higher inventory volumes on hand at year-end maintained to meet customer requirements during an anticipated flood . this increase in the reserve decreased our reported gross profit in fiscal 2011. results of operations the following table sets forth certain items from our statement of income as a percentage of sales from period to period : replace_table_token_5_th fiscal 2012 compared to fiscal 2011 sales sales increased $ 46.2 million , or 15.5 % , to $ 343.8 million for fiscal 2012 , as compared to sales of $ 297.6 million for fiscal 2011. vertex , which we acquired during the fourth quarter of 2011 , contributed $ 32.9 million of the increase in sales for fiscal 2012. we also experienced increased sales as a result of higher selling prices due to increased commodity chemical prices . sales of bulk chemicals , including caustic soda , were approximately 23 % of sales compared to approximately 20 % in the previous year . the increase in the bulk 17 chemical sales percentage for fiscal 2012 was primarily attributable to a full year of vertex sales volumes compared to a partial year of sales volumes in fiscal 2011. industrial segment . industrial segment sales increased $ 42.7 million , or 20.5 % , to $ 251.4 million for fiscal 2012. vertex contributed $ 32.9 million of the increase in sales for fiscal 2012. we experienced higher selling prices due to increased commodity chemical prices . water treatment segment . story_separator_special_tag gross profit gross profit was $ 61.9 million , or 20.8 % of sales , for fiscal 2011 , as compared to $ 64.4 million , or 25.1 % of sales , for fiscal 2010. the lifo method of valuing inventory negatively impacted gross profit by $ 3.9 million for fiscal 2011 due to increased raw material costs and higher volumes of inventory at year end maintained to meet customer requirements during an anticipated flood . in the prior year , lifo positively impacted gross profit by $ 12.6 million due to decreases in certain raw material costs during that period . industrial segment . gross profit for the industrial segment was $ 36.9 million , or 17.7 % of sales , for fiscal 2011 , as compared to $ 37.3 million , or 21.3 % of sales , for fiscal 2010. competitive pricing pressures and increased operational overhead costs contributed to the lower gross profit levels in the industrial segment . this group incurred $ 0.3 million of overhead costs associated with flood control efforts in the fourth quarter of fiscal 2011. these reductions in gross profit were partially offset by higher sales of higher margin manufactured and specialty chemical products . the lifo method of valuing inventory negatively impacted gross profit in this segment by $ 2.9 million in fiscal 2011 , as compared to positively impacting gross profit by $ 10.2 million in fiscal 2010. water treatment segment . gross profit for the water treatment segment was $ 25.0 million , or 28.1 % of sales , for fiscal 2011 , as compared to $ 27.2 million , or 33.0 % of sales , for fiscal 2010. the decrease in gross profit dollars was primarily due to competitive pricing pressures and increased operational overhead costs , partially offset by increased sales . additionally , the lifo method of valuing inventory negatively impacted gross profit in this segment by $ 1.1 million in fiscal 2011 , as compared to positively impacting gross profit by $ 2.4 million in fiscal 2010 . 19 selling , general and administrative expenses selling , general and administrative ( sg & a ) expenses increased $ 4.3 million to $ 29.9 million , or 10.1 % of sales , for fiscal 2011 , as compared to $ 25.6 million , or 10.0 % of sales , for fiscal 2010. we incurred approximately $ 1.0 million in additional expense as a result of the death of john hawkins , our former chief executive officer , through payments due under his retention bonus agreement and the accelerated vesting of his previously granted performance-based restricted stock units and stock options . other items driving the increased expenses include acquisition costs of approximately $ 0.7 million relating to the vertex acquisition in addition to higher equity incentive plan costs and litigation defense costs . operating income operating income was $ 32.0 million , or 10.7 % of sales , for fiscal 2011 , as compared to $ 38.8 million , or 15.1 % of sales , for fiscal 2010. the decrease in operating income was the result of reduced gross profits and increased sg & a expenses . both reporting segments saw a decline in their gross profit dollars due to competitive pricing pressures and higher operational overhead costs . both segments were also negatively impacted by the lifo method of valuing inventory in fiscal 2011. investment income investment income was $ 0.3 million for fiscal 2011 and fiscal 2010. provision for income taxes our effective income tax rate was 37.1 % for fiscal 2011 compared to 39.3 % for fiscal 2010. the lower effective tax rate for fiscal 2011 was primarily due to increased permanent tax differences , lower taxable income levels and somewhat lower effective state tax rates . story_separator_special_tag future cash flows requires us to make significant estimates regarding future revenues and expenses , projected capital expenditures , changes in working capital and the appropriate discount rate . the projections also take into account several factors including current and estimated economic trends and outlook , costs of raw materials , consideration of our market capitalization in comparison to the estimated fair values of our reporting units determined using discounted cash flow analyses and other factors which are beyond our control . we completed step one of our annual goodwill impairment evaluation during the fourth quarter of fiscal 2012 and determined that our reporting units ' fair value substantially exceeded their carrying value . accordingly , step two of the impairment analysis was not required . we also completed an impairment test of infinite-life intangible assets during the fourth quarter , in which the fair value exceeded the carrying amount . additionally , no impairment charges were required for fiscal 2011 or 2010. impairment of long-lived assets  we review the recoverability of long-lived assets to be held and used , such as property , plant and equipment and intangible assets subject to amortization , when events or changes in circumstances occur that indicate the carrying value of the asset or asset group may not be recoverable , such as prolonged industry downturn or significant reductions in projected future cash flows . the assessment of possible impairment is based on our ability to recover the carrying value of the asset or asset group from the expected future pre-tax cash flows ( undiscounted ) of the related operations . if these cash flows are less than the carrying value of such asset or asset group , an impairment is recognized equal to the amount by which the carrying value exceeds the fair value of the long-lived assets . the measurement of impairment requires us to estimate future cash flows and the fair value of long-lived assets . significant judgments and assumptions are required in the forecast of future operating results used in the preparation of the estimated future cash flows . we periodically review the appropriateness of the estimated useful lives of our long-lived assets .

