entegris derives most of its revenue from the sale of products and services to the semiconductor and related industries . the company 's customers consist primarily of semiconductor manufacturers , semiconductor equipment and materials suppliers as well as thin film transistor-liquid crystal display ( tft-lcd ) and hard disk manufacturers , which are served through direct sales efforts , as well as sales and distribution relationships , in the united states , asia , europe and the middle east . 37 the company offers a diverse product portfolio which includes more than 17,000 standard and customized products that it believes provide the most comprehensive offering of contamination control solutions and microenvironment products and services to maintain the purity and integrity of critical materials used by the semiconductor and other high-technology industries . certain of these products are unit-driven and consumable products that rely on the level of semiconductor manufacturing activity to drive growth , while others are capital-expenditure driven and rely on expansion of manufacturing capacity to drive growth . the company 's unit-driven and consumable products includes membrane-based liquid filters and housings , metal-based gas filters , resin-based gas purifiers , wafer shippers , disk-shipping containers and test assembly and packaging products and consumable graphite and silicon carbide components used in plasma etch , ion implant and chemical vapor deposition processes in semiconductor manufacturing . the company 's capital expense-driven products include components , systems and subsystems that use electro-mechanical , pressure differential and related technologies to permit semiconductor and other electronics manufacturers to monitor and control the flow and condition of process liquids used in these manufacturing processes , and process carriers that protect the integrity of in-process wafers . key operating factors key factors , which management believes have the largest impact on the overall results of operations of entegris , inc. , include : level of sales since a significant portion of the company 's product costs ( except for raw materials , purchased components and direct labor ) are largely fixed in the short-to-medium term , an increase or decrease in sales affects gross profits and overall profitability significantly . also , increases or decreases in sales and operating profitability affect certain costs such as incentive compensation and commissions , which are highly variable in nature . the company 's sales are subject to the effects of industry cyclicality , technological change , substantial competition , pricing pressures and foreign currency fluctuation . variable margin on sales the company 's variable margin on sales is determined by selling prices and the costs of manufacturing and raw materials . this is affected by a number of factors , which include the company 's sales mix , purchase prices of raw material ( especially polymers , stainless steel and purchased components ) , competition , both domestic and international , direct labor costs , and the efficiency of the company 's production operations , among others . fixed cost structure . the company 's operations include a number of large fixed or semi-fixed cost components , which include salaries , indirect labor and benefits , facility costs , lease expense , and depreciation and amortization . it is not possible to vary these costs easily in the short-term as volumes fluctuate . accordingly , increases or decreases in sales volume can have a large effect on the usage and productivity of these cost components , resulting in a large impact on the company 's profitability . overall summary of financial results for the year ended december 31 , 2012 the company 's financial results for 2012 reflected the lower capital spending levels and sluggish production rates in the semiconductor industry that began in the latter half of 2011. total net sales for the year ended december 31 , 2012 were $ 715.9 million , down $ 33.4 million , or 4 % , from sales of $ 749.3 million for the year ended december 31 , 2011. sales in 2012 showed modest quarterly growth from late 2011 levels before declining in the latter half of the year . the sales decrease in 2012 included unfavorable foreign currency translation effects of $ 8.5 million related to the year-over-year weakening of most international currencies versus the u.s. dollar , most notably the euro . excluding this factor , net sales fell approximately 3 % in 2012 when compared to 2011. the year-over-year sales decrease , along with a slightly unfavorable sales mix , accounted for lower gross profits in 2012. these factors , along with lower levels of factory utilization , underlie the gross margin rate for 2012 of 42.9 % compared to 43.5 % a year ago . 38 operating costs , consisting of selling , general and administrative ( sg & a ) and engineering , research and development ( er & d ) costs , increased 5 % for the year ended december 31 , 2012 when compared to the year-ago period . included in sg & a for the year ended december 31 , 2012 was a $ 3.9 million charge associated with a ceo succession and transition plan . the company 's effective tax rate was 31.0 % in 2012 compared to 3.3 % in 2011. tax expense in 2011 included a $ 41.0 million benefit associated with a decrease in the company 's u.s. deferred tax asset valuation allowance , primarily accounting for the year-to-year increase in the effective tax rate . as a result of the aforementioned factors , net income attributable to the company for 2012 was $ 68.8 million , or $ 0.50 per diluted share , compared to net income attributable to the company of $ 123.8 million , or $ 0.91 per diluted share , in 2011. during 2012 , the company 's operating activities provided cash flow of $ 115.2 million . story_separator_special_tag gross profit gross profit for 2012 decreased by $ 18.5 million , to $ 307.4 million , a decrease of 6 % from $ 325.9 million for 2011. the gross margin rate for 2012 was 42.9 % versus 43.5 % for 2011. the year-over-year sales decrease accounted for the company 's lower gross profit in 2012. the reduction in gross profit related to a slightly unfavorable sales mix was offset by improved levels of factory utilization , primarily at the company 's microenvironments segment , and higher royalty revenue . selling , general and administrative expenses selling , general and administrative ( sg & a ) expenses for 2012 increased $ 6.6 million , or 5 % , to $ 147.4 million from $ 140.8 million in 2011. sg & a expenses , as a percent of net sales , increased to 20.6 % from 18.8 % a year earlier , reflecting both the decrease in net sales and increase in sg & a expenditure levels . the increase in sg & a expenses includes a $ 3.9 million charge associated with compensation to which the company 's former chief executive officer was entitled in connection with a succession and transition plan , a $ 1.4 million increase in consultants ' fees , and a $ 1.3 million increase in the provision for bad debts . other employee costs , which make up about two-thirds of sg & a expenses , were flat as lower accruals for incentive compensation were offset by increases in other employee cost categories , most notably benefit costs . the increase in sg & a costs was partially offset by favorable foreign currency translation effects of $ 1.4 million . included in the twelve-month period ended december 31 , 2011 was a $ 0.7 million gain associated with the pension curtailment of the company 's japan defined benefit pension plan . refer to note 13 to the company 's consolidated financial statements for further discussion . 43 engineering , research and development expenses engineering , research and development ( er & d ) expenses related to the support of current product lines and the development of new products and manufacturing technologies increased by $ 3.0 million , or 6 % , to $ 50.9 million in 2012 compared to $ 48.0 million in 2011. er & d expenses as a percent of net sales were 7.1 % compared to 6.4 % a year ago , reflecting both the increase in er & d expenditure levels and decrease in net sales . the increase in er & d expense mainly reflects higher employee costs ( $ 0.6 million ) and a general increase in overall er & d expense levels related to the support of current product lines and the development of new products and manufacturing technologies . moving into 2013 , the company intends to invest in its core membrane and coatings technologies to continue to create differentiated and high-value , unit-driven products for the most advanced and demanding semiconductor applications . in addition , the company is committed to the er & d spending and capital investment needed to sustain its initiative in 450 mm wafer handling as that technology is adopted over the next several years . amortization of intangible assets amortization of intangible assets was $ 9.6 million in 2012 compared to $ 10.2 million for 2011. the decline reflects the absence of amortization expense for certain acquired developed technology and trade name assets that became fully amortized in 2011 or 2012. other income , net other income was $ 0.2 million in 2012 compared to other income of $ 1.7 million in 2011. in 2012 , other income includes a $ 1.5 million gain recorded in the second quarter related to the remeasurement of the previously held 50 % equity investment in a taiwan joint venture entity in which the company acquired a 100 % interest in april 2012. the other income was partially offset by $ 1.4 million of foreign currency transaction losses related to the remeasurement of yen-denominated assets and liabilities held by the company . in 2011 , other income primarily relates to a $ 1.5 million gain recorded in connection with the sale of an equity investment . income tax expense the company recorded income tax expense of $ 30.9 million in 2012 compared to an income tax expense of $ 4.2 million in 2011. the company 's effective tax rate was 31.0 % in 2012 , compared to 3.3 % in 2011. in 2012 , the company 's effective tax rate was lower than the u.s. statutory rate of 35 % primarily due to lower rates in various foreign jurisdictions compared to the u.s. statutory rate . in 2011 , the company 's effective tax rate was lower than the u.s. statutory rate of 35 % due mainly to the $ 41.0 million reduction of tax expense related to the decrease in the company 's deferred tax asset valuation allowance . management concluded it is more likely than not that the company would realize the u.s. net deferred tax assets and thereby released the valuation allowance on most of its u.s. deferred tax assets . the $ 41.0 million of benefit to tax expense comprises $ 19.8 million from the u.s. utilization of deferred tax assets during the year , $ 0.2 million from the utilization of foreign deferred tax assets and $ 21.0 million attributed to the release of the valuation allowance at december 31 , 2011. equity in net income of affiliates the company recorded equity in the net income of affiliates of $ 3 thousand in 2012 compared to equity in the net income of affiliates of $ 0.5 million in 2011. during 2012 , the company acquired the remaining 50 % of entegris precision technologies corporation ( ept ) in taiwan , an entity in which it had previously owned a 50 % equity interest accounted for under the equity method .

liquidity and capital resources the company has historically financed its operations and capital requirements through cash flow from its operating activities , long-term loans , lease financing and borrowings under domestic and international short-term lines of credit . in fiscal 2000 and 2009 , the company raised capital via public offerings of its common stock . operating activities net cash flow provided by operating activities totaled $ 115.2 million for the year ended december 31 , 2012. cash generated by the company 's operations included net income of $ 68.8 million , as adjusted for the impact of various non-cash charges , primarily depreciation and amortization of $ 37.6 million and share-based 51 compensation expense of $ 9.9 million . the net impact on cash flow from operations from changes in operating assets reduced cash otherwise generated by the company 's operations . working capital was $ 486.1 million at december 31 , 2012 , which included $ 350.4 million in cash and cash equivalents and short-term investments , an increase from $ 410.4 million as of december 31 , 2011 , which included $ 273.6 million in cash and cash equivalents . accounts receivable decreased by $ 13.2 million during 2012 , or $ 10.6 million net of foreign currency translation adjustments . this decrease reflects the year-over-year decline sales of the company 's products and an improvement in the company 's collections as reflected in its days sales outstanding measure ( dso ) . the company 's dso was 51 days at december 31 , 2012 compared to 60 days at the beginning of the year . inventories at december 31 , 2012 increased by $ 5.2 million from a year earlier , or $ 6.1 million after taking into account the impact of foreign currency translation adjustments and the provision for excess and obsolete inventory . the increase mainly reflects higher levels of finished goods . accounts payable and accrued expenses were $ 9.2 million higher than a year ago , or $ 6.3 million net of foreign currency translation adjustments .


 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 the company has historically financed its operations and capital requirements through cash flow from its operating activities , long-term loans , lease financing and borrowings under domestic and international short-term lines of credit . in fiscal 2000 and 2009 , the company raised capital via public offerings of its common stock . operating activities net cash flow provided by operating activities totaled $ 115.2 million for the year ended december 31 , 2012. cash generated by the company 's operations included net income of $ 68.8 million , as adjusted for the impact of various non-cash charges , primarily depreciation and amortization of $ 37.6 million and share-based 51 compensation expense of $ 9.9 million . the net impact on cash flow from operations from changes in operating assets reduced cash otherwise generated by the company 's operations . working capital was $ 486.1 million at december 31 , 2012 , which included $ 350.4 million in cash and cash equivalents and short-term investments , an increase from $ 410.4 million as of december 31 , 2011 , which included $ 273.6 million in cash and cash equivalents . accounts receivable decreased by $ 13.2 million during 2012 , or $ 10.6 million net of foreign currency translation adjustments . this decrease reflects the year-over-year decline sales of the company 's products and an improvement in the company 's collections as reflected in its days sales outstanding measure ( dso ) . the company 's dso was 51 days at december 31 , 2012 compared to 60 days at the beginning of the year . inventories at december 31 , 2012 increased by $ 5.2 million from a year earlier , or $ 6.1 million after taking into account the impact of foreign currency translation adjustments and the provision for excess and obsolete inventory . the increase mainly reflects higher levels of finished goods . accounts payable and accrued expenses were $ 9.2 million higher than a year ago , or $ 6.3 million net of foreign currency translation adjustments .
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 Suspicious Activity Report : entegris derives most of its revenue from the sale of products and services to the semiconductor and related industries . the company 's customers consist primarily of semiconductor manufacturers , semiconductor equipment and materials suppliers as well as thin film transistor-liquid crystal display ( tft-lcd ) and hard disk manufacturers , which are served through direct sales efforts , as well as sales and distribution relationships , in the united states , asia , europe and the middle east . 37 the company offers a diverse product portfolio which includes more than 17,000 standard and customized products that it believes provide the most comprehensive offering of contamination control solutions and microenvironment products and services to maintain the purity and integrity of critical materials used by the semiconductor and other high-technology industries . certain of these products are unit-driven and consumable products that rely on the level of semiconductor manufacturing activity to drive growth , while others are capital-expenditure driven and rely on expansion of manufacturing capacity to drive growth . the company 's unit-driven and consumable products includes membrane-based liquid filters and housings , metal-based gas filters , resin-based gas purifiers , wafer shippers , disk-shipping containers and test assembly and packaging products and consumable graphite and silicon carbide components used in plasma etch , ion implant and chemical vapor deposition processes in semiconductor manufacturing . the company 's capital expense-driven products include components , systems and subsystems that use electro-mechanical , pressure differential and related technologies to permit semiconductor and other electronics manufacturers to monitor and control the flow and condition of process liquids used in these manufacturing processes , and process carriers that protect the integrity of in-process wafers . key operating factors key factors , which management believes have the largest impact on the overall results of operations of entegris , inc. , include : level of sales since a significant portion of the company 's product costs ( except for raw materials , purchased components and direct labor ) are largely fixed in the short-to-medium term , an increase or decrease in sales affects gross profits and overall profitability significantly . also , increases or decreases in sales and operating profitability affect certain costs such as incentive compensation and commissions , which are highly variable in nature . the company 's sales are subject to the effects of industry cyclicality , technological change , substantial competition , pricing pressures and foreign currency fluctuation . variable margin on sales the company 's variable margin on sales is determined by selling prices and the costs of manufacturing and raw materials . this is affected by a number of factors , which include the company 's sales mix , purchase prices of raw material ( especially polymers , stainless steel and purchased components ) , competition , both domestic and international , direct labor costs , and the efficiency of the company 's production operations , among others . fixed cost structure . the company 's operations include a number of large fixed or semi-fixed cost components , which include salaries , indirect labor and benefits , facility costs , lease expense , and depreciation and amortization . it is not possible to vary these costs easily in the short-term as volumes fluctuate . accordingly , increases or decreases in sales volume can have a large effect on the usage and productivity of these cost components , resulting in a large impact on the company 's profitability . overall summary of financial results for the year ended december 31 , 2012 the company 's financial results for 2012 reflected the lower capital spending levels and sluggish production rates in the semiconductor industry that began in the latter half of 2011. total net sales for the year ended december 31 , 2012 were $ 715.9 million , down $ 33.4 million , or 4 % , from sales of $ 749.3 million for the year ended december 31 , 2011. sales in 2012 showed modest quarterly growth from late 2011 levels before declining in the latter half of the year . the sales decrease in 2012 included unfavorable foreign currency translation effects of $ 8.5 million related to the year-over-year weakening of most international currencies versus the u.s. dollar , most notably the euro . excluding this factor , net sales fell approximately 3 % in 2012 when compared to 2011. the year-over-year sales decrease , along with a slightly unfavorable sales mix , accounted for lower gross profits in 2012. these factors , along with lower levels of factory utilization , underlie the gross margin rate for 2012 of 42.9 % compared to 43.5 % a year ago . 38 operating costs , consisting of selling , general and administrative ( sg & a ) and engineering , research and development ( er & d ) costs , increased 5 % for the year ended december 31 , 2012 when compared to the year-ago period . included in sg & a for the year ended december 31 , 2012 was a $ 3.9 million charge associated with a ceo succession and transition plan . the company 's effective tax rate was 31.0 % in 2012 compared to 3.3 % in 2011. tax expense in 2011 included a $ 41.0 million benefit associated with a decrease in the company 's u.s. deferred tax asset valuation allowance , primarily accounting for the year-to-year increase in the effective tax rate . as a result of the aforementioned factors , net income attributable to the company for 2012 was $ 68.8 million , or $ 0.50 per diluted share , compared to net income attributable to the company of $ 123.8 million , or $ 0.91 per diluted share , in 2011. during 2012 , the company 's operating activities provided cash flow of $ 115.2 million . story_separator_special_tag gross profit gross profit for 2012 decreased by $ 18.5 million , to $ 307.4 million , a decrease of 6 % from $ 325.9 million for 2011. the gross margin rate for 2012 was 42.9 % versus 43.5 % for 2011. the year-over-year sales decrease accounted for the company 's lower gross profit in 2012. the reduction in gross profit related to a slightly unfavorable sales mix was offset by improved levels of factory utilization , primarily at the company 's microenvironments segment , and higher royalty revenue . selling , general and administrative expenses selling , general and administrative ( sg & a ) expenses for 2012 increased $ 6.6 million , or 5 % , to $ 147.4 million from $ 140.8 million in 2011. sg & a expenses , as a percent of net sales , increased to 20.6 % from 18.8 % a year earlier , reflecting both the decrease in net sales and increase in sg & a expenditure levels . the increase in sg & a expenses includes a $ 3.9 million charge associated with compensation to which the company 's former chief executive officer was entitled in connection with a succession and transition plan , a $ 1.4 million increase in consultants ' fees , and a $ 1.3 million increase in the provision for bad debts . other employee costs , which make up about two-thirds of sg & a expenses , were flat as lower accruals for incentive compensation were offset by increases in other employee cost categories , most notably benefit costs . the increase in sg & a costs was partially offset by favorable foreign currency translation effects of $ 1.4 million . included in the twelve-month period ended december 31 , 2011 was a $ 0.7 million gain associated with the pension curtailment of the company 's japan defined benefit pension plan . refer to note 13 to the company 's consolidated financial statements for further discussion . 43 engineering , research and development expenses engineering , research and development ( er & d ) expenses related to the support of current product lines and the development of new products and manufacturing technologies increased by $ 3.0 million , or 6 % , to $ 50.9 million in 2012 compared to $ 48.0 million in 2011. er & d expenses as a percent of net sales were 7.1 % compared to 6.4 % a year ago , reflecting both the increase in er & d expenditure levels and decrease in net sales . the increase in er & d expense mainly reflects higher employee costs ( $ 0.6 million ) and a general increase in overall er & d expense levels related to the support of current product lines and the development of new products and manufacturing technologies . moving into 2013 , the company intends to invest in its core membrane and coatings technologies to continue to create differentiated and high-value , unit-driven products for the most advanced and demanding semiconductor applications . in addition , the company is committed to the er & d spending and capital investment needed to sustain its initiative in 450 mm wafer handling as that technology is adopted over the next several years . amortization of intangible assets amortization of intangible assets was $ 9.6 million in 2012 compared to $ 10.2 million for 2011. the decline reflects the absence of amortization expense for certain acquired developed technology and trade name assets that became fully amortized in 2011 or 2012. other income , net other income was $ 0.2 million in 2012 compared to other income of $ 1.7 million in 2011. in 2012 , other income includes a $ 1.5 million gain recorded in the second quarter related to the remeasurement of the previously held 50 % equity investment in a taiwan joint venture entity in which the company acquired a 100 % interest in april 2012. the other income was partially offset by $ 1.4 million of foreign currency transaction losses related to the remeasurement of yen-denominated assets and liabilities held by the company . in 2011 , other income primarily relates to a $ 1.5 million gain recorded in connection with the sale of an equity investment . income tax expense the company recorded income tax expense of $ 30.9 million in 2012 compared to an income tax expense of $ 4.2 million in 2011. the company 's effective tax rate was 31.0 % in 2012 , compared to 3.3 % in 2011. in 2012 , the company 's effective tax rate was lower than the u.s. statutory rate of 35 % primarily due to lower rates in various foreign jurisdictions compared to the u.s. statutory rate . in 2011 , the company 's effective tax rate was lower than the u.s. statutory rate of 35 % due mainly to the $ 41.0 million reduction of tax expense related to the decrease in the company 's deferred tax asset valuation allowance . management concluded it is more likely than not that the company would realize the u.s. net deferred tax assets and thereby released the valuation allowance on most of its u.s. deferred tax assets . the $ 41.0 million of benefit to tax expense comprises $ 19.8 million from the u.s. utilization of deferred tax assets during the year , $ 0.2 million from the utilization of foreign deferred tax assets and $ 21.0 million attributed to the release of the valuation allowance at december 31 , 2011. equity in net income of affiliates the company recorded equity in the net income of affiliates of $ 3 thousand in 2012 compared to equity in the net income of affiliates of $ 0.5 million in 2011. during 2012 , the company acquired the remaining 50 % of entegris precision technologies corporation ( ept ) in taiwan , an entity in which it had previously owned a 50 % equity interest accounted for under the equity method .

