17 the following items highlight certain of the company 's more significant strategic accomplishments in 2011 : in october 2011 , the company completed the acquisition of drives llc ( drives ) for $ 92 million . drives is a leading manufacturer of highly engineered drive-chains , roller-chains and conveyor augers for the agricultural and industrial applications . based in fulton , illinois , drives employs 430 associates and had trailing 12-month sales through september 2011 of approximately $ 100 million . sales and ebit for the timken drives business is reported in the company 's mobile industries and process industries segments based on customer application . in august 2011 , the company and the university of akron announced an open-innovation agreement to accelerate technology . the two organizations plan to combine their expertise in materials and surface engineering technologies at newly established laboratories in the university of akron 's college of engineering . in july 2011 , the company and stark state college broke ground on a jointly developed 18,000 square foot wind energy research and development center in canton , ohio , on the stark state college campus . this new center will be focused on advanced development of bearing systems for wind turbines and other ultra-large applications . in july 2011 , the company acquired the assets of philadelphia gear corp. ( philadelphia gear ) , a leading provider of high-performance gear drives and components with a strong focus on value-added aftermarket capabilities in the industrial and military marine sectors , for $ 200 million . based in king of prussia , pennsylvania , with approximately 220 associates , philadelphia gear had trailing 12-month sales through june 2011 of approximately $ 100 million . the timken gears and services business is included in the process industries segment . in 2011 , the company launched initiatives to enhance productivity and increase output at two of its canton , ohio steel facilities . these changes will effectively create new capacity at both of these steel facilities to support growing demand for finished bar products and billets for tubing product which serve customers in the global industrial , oil and gas , and mobile markets . these initiatives include an investment of approximately $ 35 million for an in-line forge press at the company 's faircrest steel plant . in august 2011 , the company announced that it is evaluating an investment of approximately $ 225 million at its faircrest steel plant . the potential investment would be expected to increase capacity , expand product range and strengthen the competitiveness of timken 's specialty alloy steel bars business . a ladle refiner and a new large-bloom continuous caster would be key components of this investment and would likely target production in 2014. the company entered into preliminary discussions with suppliers and government agencies , and opened early negotiations with united steelworkers of america local 1123 ( union ) , which represents operative associates in canton , ohio , under a collective bargaining agreement scheduled to expire in 2013. the company and representatives of the union have tentatively agreed on a five-year contract to replace the existing labor agreement . a ratification vote has been scheduled for february 21 , 2012 . 18 results of operations 2011 compared to 2010 overview : replace_table_token_7_th the company reported net sales for 2011 of $ 5.2 billion , compared to $ 4.1 billion in 2010 , a 27.5 % increase . the increase in sales was primarily due to higher volume across all business segments except for the aerospace and defense segment , higher surcharges , pricing , the impact of acquisitions and the effect of currency rate changes . in 2011 , net income per diluted share was $ 4.59 , compared to net income per diluted share of $ 2.81 in 2010. the company 's net income for 2011 reflects continued improvement in the end market sectors served by the mobile industries , process industries and steel segments . in addition , net income for 2011 reflects higher surcharges and pricing and the impact of acquisitions , partially offset by higher raw material and logistics costs and selling , general and administrative expenses . the income from discontinued operations recognized in 2010 was the result of favorable working capital adjustments from the sale of the company 's needle roller bearings ( nrb ) operations , completed in december 2009. outlook the company expects higher sales in the range of approximately 5 % to 8 % in 2012 compared to 2011 , primarily driven by higher volumes across the process industries , aerospace and defense and steel business segments , as well as favorable pricing and the full-year impact of acquisitions completed in 2011 , partially offset by the effect of currency-rate changes . the company expects to leverage sales growth from these segments to drive improved operating performance . however , the strengthening margins will be partially offset by lower utilization of manufacturing capacity , higher raw material costs and slightly higher selling , general and administrative expenses to support the higher sales . from a liquidity standpoint , the company expects to generate cash from operations of approximately $ 515 million , which is a 143 % increase over 2011 , primarily driven by lower working capital increases and lower pension and postretirement contributions . pension and postretirement contributions are expected to be approximately $ 265 million in 2012 compared to $ 416 million in 2011. the company expects to increase capital expenditures to approximately $ 345 million in 2012 compared to $ 205 million in 2011 . story_separator_special_tag the income from discontinued operations recognized in 2010 is the result of favorable working capital adjustments from the sale of the company 's nrb operations , completed in december 2009 , while the loss from discontinued operations was due to the negative impact of the deteriorating global economy on nrb 's business operations . the statements of income sales by segment : replace_table_token_20_th net sales for 2010 increased $ 913.9 million , or 29.1 % , compared to 2009 , primarily due to higher volume of approximately $ 655 million primarily across the mobile industries ' light-vehicle , off-highway and heavy truck market sectors , the process industries ' industrial distribution channel and the steel segment . net sales for 2010 also increased due to higher surcharges of approximately $ 250 million . 25 gross profit : replace_table_token_21_th gross profit margins increased in 2010 compared to 2009 , due to the impact of higher sales volume of approximately $ 280 million , higher steel surcharges of approximately $ 250 million , improved manufacturing utilization of approximately $ 150 million and improved pricing of approximately $ 100 million . these increases were partially offset by higher raw material costs of approximately $ 275 million and related lifo expense of approximately $ 90 million . in 2010 , rationalization expenses of $ 5.5 million included in cost of products sold primarily related to the closure of the manufacturing facility in sao paulo , brazil and the continued rationalization of process industries ' canton , ohio bearing facilities . in 2009 , rationalization expenses of $ 8.2 million included in cost of products sold primarily related to certain mobile industries ' and aerospace and defense manufacturing facilities and the continued rationalization of process industries ' canton , ohio bearing facilities . rationalization expenses in 2010 primarily consisted of relocation and closure costs . rationalization expenses in 2009 primarily included the write-down of inventory , accelerated depreciation on assets and the relocation of equipment . selling , general and administrative expenses : replace_table_token_22_th the increase in selling , general and administrative expenses of $ 91.1 million in 2010 compared to 2009 was primarily due to higher expense related to incentive compensation plans of approximately $ 65 million , with the remainder of the increase relating to higher employee and professional costs . impairment and restructuring charges : replace_table_token_23_th the following discussion explains the major impairment and restructuring charges recorded for the periods presented ; however , it is not intended to reflect a comprehensive discussion of all amounts in the tables above . refer to note 10  impairment and restructuring in the notes to the consolidated financial statements for further details by segment . workforce reductions in 2009 , the company began the realignment of its organization to improve efficiency and reduce costs as a result of the economic downturn that began during the latter part of 2008. the initiative was completed in 2010 and included both selling and administrative cost reductions , as well as manufacturing workforce reductions . during 2010 , the company recorded $ 5.6 million of severance and related benefit costs to eliminate approximately 200 associates . of the $ 5.6 million charge for 2010 , $ 2.0 million related to the aerospace and defense segment , $ 1.6 million related to the process industries segment , $ 1.4 million related to the mobile industries segment and $ 0.6 million related to corporate positions . during 2009 , the company recorded $ 42.9 million of severance and related benefit costs , to eliminate approximately 3,280 manufacturing associates . of the $ 42.9 million charge , $ 26.0 million related to the mobile industries segment , $ 8.5 million related to the process industries segment , $ 3.3 million related to the steel segment , $ 3.1 million related to the aerospace and defense segment and $ 2.0 million related to corporate positions . torrington campus on july 20 , 2009 , the company sold the remaining portion of its torrington , connecticut office complex . in anticipation of the loss that the company expected to record upon completion of the sale of this property , the company recorded an impairment charge of $ 6.4 million during the second quarter of 2009 . 26 mobile industries in march 2007 , the company announced the closure of its manufacturing facility in sao paulo , brazil . the company completed the closure of this manufacturing facility on march 31 , 2010. during 2010 , the company recorded $ 4.4 million of exit costs , $ 1.3 million of severance and related benefit costs and $ 1.1 million of impairment charges associated with the closure of this facility . the exit costs were primarily due to site remediation costs . during 2009 , the company recorded $ 5.2 million of severance and related benefit costs and $ 1.7 million of exit costs associated with the closure of this facility . in 2009 , the company recorded impairment charges of $ 71.7 million for certain fixed assets in the united states , canada , france and china related to several automotive product lines . the company reviewed these assets for impairment during the fourth quarter due to declining sales and as part of the company 's initiative to exit programs where adequate returns could not be obtained through pricing initiatives . incorporating this information into its annual long-term forecasting process , the company determined the undiscounted projected future cash flows for these product lines could not support the carrying value of these asset groups . the company then arrived at fair value by either valuing the assets in use where the assets were still producing product or in exchange where the assets had been idled . in addition to the above charges , the company recorded $ 3.1 million of environmental exit costs in 2010 at the site of its former plant in columbus , ohio . process industries in 2009 , the company

cash flows : replace_table_token_40_th operating activities provided net cash of $ 211.7 million in 2011 compared to $ 312.7 million in 2010. this change was primarily due to higher pension and other postretirement benefit contributions and payments as well as higher cash used by working capital items , partially offset by higher net income . pension and other postretirement benefit contributions and payments were $ 456.0 million in 2011 , compared to $ 337.0 million in 2010. net income attributable to the timken company increased $ 179.5 million in 2011 compared to 2010. the following chart displays the impact of working capital items on cash during 2011 and 2010 : replace_table_token_41_th investing activities used cash of $ 508.0 million in 2011 after using cash of $ 152.9 million in 2010 as a result of an increase in acquisitions of $ 269.5 million and an increase in capital expenditures of $ 89.5 million . the increase in acquisitions related to the purchase of philadelphia gear , which was completed in july 2011 , and the purchase of drives , which was completed in october 2011. the net cash used by financing activities was $ 106.6 million in 2011 after using cash of $ 32.9 million in 2010. the increase in cash used for financing activities was primarily due to a $ 26.6 million reduction in proceeds from stock option exercises , a $ 24.7 million increase in cash dividends paid to shareholders and a $ 14.6 million increase in the company 's repurchases of its common stock in 2011 compared to 2010. the company purchased one million shares of its common stock for an aggregate of $ 43.8 million in 2011 after purchasing one million shares of its common stock for an aggregate of $ 29.2 million in 2010 . 34 liquidity and capital resources total debt was $ 515.1 million and $ 513.7 million at december 31 , 2011 and december 31 , 2010 , 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.
     ```cash flows : replace_table_token_40_th operating activities provided net cash of $ 211.7 million in 2011 compared to $ 312.7 million in 2010. this change was primarily due to higher pension and other postretirement benefit contributions and payments as well as higher cash used by working capital items , partially offset by higher net income . pension and other postretirement benefit contributions and payments were $ 456.0 million in 2011 , compared to $ 337.0 million in 2010. net income attributable to the timken company increased $ 179.5 million in 2011 compared to 2010. the following chart displays the impact of working capital items on cash during 2011 and 2010 : replace_table_token_41_th investing activities used cash of $ 508.0 million in 2011 after using cash of $ 152.9 million in 2010 as a result of an increase in acquisitions of $ 269.5 million and an increase in capital expenditures of $ 89.5 million . the increase in acquisitions related to the purchase of philadelphia gear , which was completed in july 2011 , and the purchase of drives , which was completed in october 2011. the net cash used by financing activities was $ 106.6 million in 2011 after using cash of $ 32.9 million in 2010. the increase in cash used for financing activities was primarily due to a $ 26.6 million reduction in proceeds from stock option exercises , a $ 24.7 million increase in cash dividends paid to shareholders and a $ 14.6 million increase in the company 's repurchases of its common stock in 2011 compared to 2010. the company purchased one million shares of its common stock for an aggregate of $ 43.8 million in 2011 after purchasing one million shares of its common stock for an aggregate of $ 29.2 million in 2010 . 34 liquidity and capital resources total debt was $ 515.1 million and $ 513.7 million at december 31 , 2011 and december 31 , 2010 , respectively .
```    
 Suspicious Activity Report : 17 the following items highlight certain of the company 's more significant strategic accomplishments in 2011 : in october 2011 , the company completed the acquisition of drives llc ( drives ) for $ 92 million . drives is a leading manufacturer of highly engineered drive-chains , roller-chains and conveyor augers for the agricultural and industrial applications . based in fulton , illinois , drives employs 430 associates and had trailing 12-month sales through september 2011 of approximately $ 100 million . sales and ebit for the timken drives business is reported in the company 's mobile industries and process industries segments based on customer application . in august 2011 , the company and the university of akron announced an open-innovation agreement to accelerate technology . the two organizations plan to combine their expertise in materials and surface engineering technologies at newly established laboratories in the university of akron 's college of engineering . in july 2011 , the company and stark state college broke ground on a jointly developed 18,000 square foot wind energy research and development center in canton , ohio , on the stark state college campus . this new center will be focused on advanced development of bearing systems for wind turbines and other ultra-large applications . in july 2011 , the company acquired the assets of philadelphia gear corp. ( philadelphia gear ) , a leading provider of high-performance gear drives and components with a strong focus on value-added aftermarket capabilities in the industrial and military marine sectors , for $ 200 million . based in king of prussia , pennsylvania , with approximately 220 associates , philadelphia gear had trailing 12-month sales through june 2011 of approximately $ 100 million . the timken gears and services business is included in the process industries segment . in 2011 , the company launched initiatives to enhance productivity and increase output at two of its canton , ohio steel facilities . these changes will effectively create new capacity at both of these steel facilities to support growing demand for finished bar products and billets for tubing product which serve customers in the global industrial , oil and gas , and mobile markets . these initiatives include an investment of approximately $ 35 million for an in-line forge press at the company 's faircrest steel plant . in august 2011 , the company announced that it is evaluating an investment of approximately $ 225 million at its faircrest steel plant . the potential investment would be expected to increase capacity , expand product range and strengthen the competitiveness of timken 's specialty alloy steel bars business . a ladle refiner and a new large-bloom continuous caster would be key components of this investment and would likely target production in 2014. the company entered into preliminary discussions with suppliers and government agencies , and opened early negotiations with united steelworkers of america local 1123 ( union ) , which represents operative associates in canton , ohio , under a collective bargaining agreement scheduled to expire in 2013. the company and representatives of the union have tentatively agreed on a five-year contract to replace the existing labor agreement . a ratification vote has been scheduled for february 21 , 2012 . 18 results of operations 2011 compared to 2010 overview : replace_table_token_7_th the company reported net sales for 2011 of $ 5.2 billion , compared to $ 4.1 billion in 2010 , a 27.5 % increase . the increase in sales was primarily due to higher volume across all business segments except for the aerospace and defense segment , higher surcharges , pricing , the impact of acquisitions and the effect of currency rate changes . in 2011 , net income per diluted share was $ 4.59 , compared to net income per diluted share of $ 2.81 in 2010. the company 's net income for 2011 reflects continued improvement in the end market sectors served by the mobile industries , process industries and steel segments . in addition , net income for 2011 reflects higher surcharges and pricing and the impact of acquisitions , partially offset by higher raw material and logistics costs and selling , general and administrative expenses . the income from discontinued operations recognized in 2010 was the result of favorable working capital adjustments from the sale of the company 's needle roller bearings ( nrb ) operations , completed in december 2009. outlook the company expects higher sales in the range of approximately 5 % to 8 % in 2012 compared to 2011 , primarily driven by higher volumes across the process industries , aerospace and defense and steel business segments , as well as favorable pricing and the full-year impact of acquisitions completed in 2011 , partially offset by the effect of currency-rate changes . the company expects to leverage sales growth from these segments to drive improved operating performance . however , the strengthening margins will be partially offset by lower utilization of manufacturing capacity , higher raw material costs and slightly higher selling , general and administrative expenses to support the higher sales . from a liquidity standpoint , the company expects to generate cash from operations of approximately $ 515 million , which is a 143 % increase over 2011 , primarily driven by lower working capital increases and lower pension and postretirement contributions . pension and postretirement contributions are expected to be approximately $ 265 million in 2012 compared to $ 416 million in 2011. the company expects to increase capital expenditures to approximately $ 345 million in 2012 compared to $ 205 million in 2011 . story_separator_special_tag the income from discontinued operations recognized in 2010 is the result of favorable working capital adjustments from the sale of the company 's nrb operations , completed in december 2009 , while the loss from discontinued operations was due to the negative impact of the deteriorating global economy on nrb 's business operations . the statements of income sales by segment : replace_table_token_20_th net sales for 2010 increased $ 913.9 million , or 29.1 % , compared to 2009 , primarily due to higher volume of approximately $ 655 million primarily across the mobile industries ' light-vehicle , off-highway and heavy truck market sectors , the process industries ' industrial distribution channel and the steel segment . net sales for 2010 also increased due to higher surcharges of approximately $ 250 million . 25 gross profit : replace_table_token_21_th gross profit margins increased in 2010 compared to 2009 , due to the impact of higher sales volume of approximately $ 280 million , higher steel surcharges of approximately $ 250 million , improved manufacturing utilization of approximately $ 150 million and improved pricing of approximately $ 100 million . these increases were partially offset by higher raw material costs of approximately $ 275 million and related lifo expense of approximately $ 90 million . in 2010 , rationalization expenses of $ 5.5 million included in cost of products sold primarily related to the closure of the manufacturing facility in sao paulo , brazil and the continued rationalization of process industries ' canton , ohio bearing facilities . in 2009 , rationalization expenses of $ 8.2 million included in cost of products sold primarily related to certain mobile industries ' and aerospace and defense manufacturing facilities and the continued rationalization of process industries ' canton , ohio bearing facilities . rationalization expenses in 2010 primarily consisted of relocation and closure costs . rationalization expenses in 2009 primarily included the write-down of inventory , accelerated depreciation on assets and the relocation of equipment . selling , general and administrative expenses : replace_table_token_22_th the increase in selling , general and administrative expenses of $ 91.1 million in 2010 compared to 2009 was primarily due to higher expense related to incentive compensation plans of approximately $ 65 million , with the remainder of the increase relating to higher employee and professional costs . impairment and restructuring charges : replace_table_token_23_th the following discussion explains the major impairment and restructuring charges recorded for the periods presented ; however , it is not intended to reflect a comprehensive discussion of all amounts in the tables above . refer to note 10  impairment and restructuring in the notes to the consolidated financial statements for further details by segment . workforce reductions in 2009 , the company began the realignment of its organization to improve efficiency and reduce costs as a result of the economic downturn that began during the latter part of 2008. the initiative was completed in 2010 and included both selling and administrative cost reductions , as well as manufacturing workforce reductions . during 2010 , the company recorded $ 5.6 million of severance and related benefit costs to eliminate approximately 200 associates . of the $ 5.6 million charge for 2010 , $ 2.0 million related to the aerospace and defense segment , $ 1.6 million related to the process industries segment , $ 1.4 million related to the mobile industries segment and $ 0.6 million related to corporate positions . during 2009 , the company recorded $ 42.9 million of severance and related benefit costs , to eliminate approximately 3,280 manufacturing associates . of the $ 42.9 million charge , $ 26.0 million related to the mobile industries segment , $ 8.5 million related to the process industries segment , $ 3.3 million related to the steel segment , $ 3.1 million related to the aerospace and defense segment and $ 2.0 million related to corporate positions . torrington campus on july 20 , 2009 , the company sold the remaining portion of its torrington , connecticut office complex . in anticipation of the loss that the company expected to record upon completion of the sale of this property , the company recorded an impairment charge of $ 6.4 million during the second quarter of 2009 . 26 mobile industries in march 2007 , the company announced the closure of its manufacturing facility in sao paulo , brazil . the company completed the closure of this manufacturing facility on march 31 , 2010. during 2010 , the company recorded $ 4.4 million of exit costs , $ 1.3 million of severance and related benefit costs and $ 1.1 million of impairment charges associated with the closure of this facility . the exit costs were primarily due to site remediation costs . during 2009 , the company recorded $ 5.2 million of severance and related benefit costs and $ 1.7 million of exit costs associated with the closure of this facility . in 2009 , the company recorded impairment charges of $ 71.7 million for certain fixed assets in the united states , canada , france and china related to several automotive product lines . the company reviewed these assets for impairment during the fourth quarter due to declining sales and as part of the company 's initiative to exit programs where adequate returns could not be obtained through pricing initiatives . incorporating this information into its annual long-term forecasting process , the company determined the undiscounted projected future cash flows for these product lines could not support the carrying value of these asset groups . the company then arrived at fair value by either valuing the assets in use where the assets were still producing product or in exchange where the assets had been idled . in addition to the above charges , the company recorded $ 3.1 million of environmental exit costs in 2010 at the site of its former plant in columbus , ohio . process industries in 2009 , the company

