overall , home center sales in 2012 decreased from their 2011 level and were comparable to their 2010 level , due to the loss of a customer , although 2012 sales to the home depot increased from 2010. sales to the home depot exceeded 10 % of the company 's consolidated net sales in the years ended december 31 , 2012 , 2011 and 2010 ( see item 27 1a  risk factors and note 14 to the company 's consolidated financial statements ) . net sales also increased in 2012 from 2010 in the european and asia/pacific segments , with above average increases in the asia/pacific segment . net sales increases in north america and europe segments were partly due to the acquisitions of : · certain assets of cgmi , formerly called socom s.a. , a french company ( socom ) , in 2010 : · the assets of fox industries , inc. ( fox industries ) , a maryland company , in december 2011 : · the assets of automatic stamping , llc , and automatic stamping auxiliary services , llc , both north carolina limited liability companies ( collectively automatic stamping ) , in december 2011 ; and · s & p clever reinforcement ag and s & p clever international ag , both companies incorporated under the laws of switzerland ( collectively s & p clever ) , in january 2012 . · gross profit margin decreased from 44.0 % in 2010 to 43.1 % in 2012 , with wood construction products representing 85 % of total sales in 2012 , down from 89 % of total sales in 2010. the overall 2012 gross profit margin was negatively affected by increased sales of concrete construction products , which have lower profit margins and higher material costs as compared to wood construction products . the gross profit margin differential between wood construction products and concrete construction products narrowed from 23 % in 2010 to 17 % in 2012 . · operating expenses increased to $ 221.8 million , 33.7 % of sales , in 2012 from $ 165.7 million , 29.9 % of sales in 2010 , primarily due to acquisitions , which increased the number of employees since 2010 , research and development expenses and depreciation and amortization expenses . retailers and distributors have consolidated over time , both providing opportunities for growth and exposing simpson strong-tie to potential over-dependence with the increasing size and importance of individual customers . the loss of any of the larger home centers and distributors as customers would have a material adverse effect on sst , unless and until either such customers are replaced or sst makes the necessary adjustments ( if possible ) to compensate for the loss of business . results of operations the following table sets forth , for the years indicated , the percentage of net sales of specified items in the company 's consolidated statements of operations . replace_table_token_4_th 28 comparison of the years ended december 31 , 2012 and 2011 the following table illustrates the change in the company 's continuing operations from 2011 to 2012 , and the increases or decreases for each category by segment . ( in thousands ) replace_table_token_5_th net sales the following table represents net sales by segment for the years ended december 31 , 2011 and 2012 : ( in thousands ) replace_table_token_6_th the following table represents segment net sales as percentages of total net sales for the years ended december 31 , 2011 and 2012 : replace_table_token_7_th · the 10.1 % increase in north american segment net sales accounted for 89.6 % of the overall increase and resulted from increased sales volume and the acquisitions of fox industries and automatic stamping while average prices for the year were flat . · the 3.6 % increase in european segment net sales accounted for 8.0 % of the overall company increase and resulted from the acquisition of s & p clever and a slight price increase partly offset by reduced sales volumes due to difficult economic conditions , and unfavorable currency translations of approximately $ 5.8 million . · net sales in the asia/pacific segment , although relatively small , have increased as the company continued expanding its presence in the region . asia/pacific net sales were not materially affected by currency translations . 29 gross profit the following table represents gross profit by segment for the years ended december 31 , 2011 and 2012 : ( in thousands ) replace_table_token_8_th the following table represents gross profit percentage by segment for the years ended december 31 , 2011 and 2012 : replace_table_token_9_th · wood construction products represented 85 % of total sales in 2012 , down from 89 % of total sales in 2011 . · the overall 2012 gross profit margins were negatively affected by increased sales of concrete construction products , which have lower profit margins . · the gross profit margin differential between wood construction products and concrete construction products increased from 15 % in 2011 to 17 % in 2012 . · the north american segment accounted for 92.7 % of the overall increase in gross profit with wood construction products representing 87 % of total north american segment 's net sales in 2012 , down from 89 % in 2011. the decreased gross profit margin was due primarily to higher material costs as a percentage of net sales , increased concrete construction product sales , which have a lower gross profit margin than wood construction product sales , and greater price competition . · wood construction product sales represented 80 % of the european segment 's net sales in 2012 down from 92 % in 2011. the decreased gross profit margin was primarily due to charges resulting from the decision to discontinue manufacturing heavy-duty mechanical anchors made at the company 's facility in ireland and selling those products in europe . story_separator_special_tag if actual costs of sales returns , incentives and discounts were to significantly exceed the recorded estimated allowance , the company 's sales would be adversely affected . business combinations the company recognizes separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values . goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the assets acquired and the liabilities assumed . while the company uses its best estimates and assumptions as a part of the purchase price allocation process to value assets acquired and liabilities assumed at the acquisition date , the company 's estimates are inherently uncertain and subject to refinement . as a result , during the measurement period , which may be up to one year from the acquisition date , the company records adjustments to the assets acquired and liabilities assumed , with the corresponding offset to goodwill . on the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed , whichever comes first , the company records any subsequent adjustments to its consolidated statements of operations . accounting for business combinations requires the company 's management to make significant estimates and assumptions , especially at the acquisition date with respect to intangible assets . although the company believes that the assumptions and estimates it has made in the past have been reasonable and appropriate , they are based in part on historical experience and information obtained from the management of the acquired companies and are inherently uncertain . examples of critical estimates in valuing certain of the intangible assets that the company has acquired include : · future expected cash flows from customer relationships and acquired unpatented technologies and patents ; · the acquired company 's brand and competitive position and assumptions about the period of time the acquired brand will continue to be used in the combined company 's product portfolio ; and · discount rates . unanticipated events and circumstances may affect the accuracy or validity of such assumptions , estimates or actual results . for a given acquisition , the company may identify pre-acquisition contingencies as of the acquisition date and may extend its review and evaluation of these pre-acquisition contingencies throughout the measurement period ( up to one year from the acquisition date ) to obtain sufficient information to assess whether the company includes these contingencies as a part of the purchase price allocation and , if so , to determine their estimated amounts . if the company determines that a pre-acquisition contingency ( that is not income-tax related ) is probable and estimable as of the acquisition date , the company records its best estimate for such a contingency as a part of the preliminary purchase price allocation . the company often continues to gather information for and evaluate its pre-acquisition contingencies throughout the measurement period . if the company changes the amounts recorded or identifies additional pre-acquisition contingencies during the measurement period , such amounts are included in the purchase price allocation during the measurement period and , subsequently , in the company 's results of operations . 35 in addition , the company estimates uncertain tax positions and tax related valuation allowances assumed in connection with a business combination initially as of the acquisition date . the company reevaluates these items quarterly with any adjustments to its preliminary estimates being recorded to goodwill if the company is within the measurement period . the company continues to collect information to determine estimated values . subsequent to the measurement period or the company 's final determination of the uncertain tax positions estimated value or tax-related valuation allowances , whichever comes first , changes to these uncertain tax positions and tax-related valuation allowances will affect the company 's provision for income taxes in its consolidated statement of operations and could have a material effect on the company 's results of operations and financial position . goodwill impairment testing the company tests goodwill for impairment at the reporting unit level on an annual basis ( in the fourth quarter for the company ) . the company also reviews goodwill for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable . these events or circumstances could include a significant change in the business climate , legal factors , operating performance indicators , competition , or disposition or relocation of a significant portion of a reporting unit . the reporting unit level is generally one level below the operating segment , which is at the country level , except in the united states and australia and except for s & p clever . the company determined that the united states reporting unit includes four components : northwest united states , southwest united states , northeast united states and southeast united states ( collectively the u.s . components ) . the company aggregates the u.s. components into a single reporting unit because management concluded that they are economically similar and that the goodwill is recoverable from the u.s. components working in concert . the u.s. components are economically similar because of a number of factors , including selling similar products to the shared customers and sharing assets and services such as intellectual property , manufacturing assets for certain products , research and development projects , manufacturing processes , management of inventory excesses and shortages and administrative services . these activities are managed centrally at the u.s. components level and costs are allocated among the four u.s. components . the company determined that the australia reporting unit includes three components : australia , new zealand and south africa ( collectively the au components ) . the company aggregates the au components into a single reporting unit because management concluded that they are economically similar and that the goodwill is recoverable from the au components working in concert .

liquidity and sources of capital the company 's liquidity needs arise principally from working capital requirements , capital expenditures and business acquisitions . during the three years ended december 31 , 2012 , the company relied on internally generated funds to finance these needs . the company 's working capital requirements are seasonal with the highest need typically occurring in the second and third quarters of the year . cash and cash equivalents were $ 175.6 million and $ 213.8 million at december 31 , 2012 and 2011 , respectively . working capital was $ 402.5 million and $ 430.5 million at december 31 , 2012 and 2011 , respectively . as of december 31 , 2012 , the company had borrowings of $ 0.2 million on a revolving line of credit . the company had unused capacity on this and other credit facilities of $ 311.0 million . as of december 31 , 2012 , the company 's investments consisted of only united states treasury securities and money market funds aggregating $ 76.1 million . cash collected by the company 's united states subsidiaries is routinely transferred into cash management accounts which typically do not have restrictions on withdrawals . as of december 31 , 2012 , the company had $ 83.6 million or 47.6 % of its cash and cash equivalents held outside the united states in accounts belonging to several of the company 's foreign operating entities . the majority of this balance is held in foreign currencies and could be subject to additional taxation if it were repatriated to the united states . the company has no plans to repatriate cash and cash equivalents held outside the united states as such funds are expected to be used to fund future international growth and acquisitions . the company 's operating activities provided $ 68.1 million , $ 35.1 million and $ 77.2 million in net cash in 2012 , 2011 and 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.
     ```liquidity and sources of capital the company 's liquidity needs arise principally from working capital requirements , capital expenditures and business acquisitions . during the three years ended december 31 , 2012 , the company relied on internally generated funds to finance these needs . the company 's working capital requirements are seasonal with the highest need typically occurring in the second and third quarters of the year . cash and cash equivalents were $ 175.6 million and $ 213.8 million at december 31 , 2012 and 2011 , respectively . working capital was $ 402.5 million and $ 430.5 million at december 31 , 2012 and 2011 , respectively . as of december 31 , 2012 , the company had borrowings of $ 0.2 million on a revolving line of credit . the company had unused capacity on this and other credit facilities of $ 311.0 million . as of december 31 , 2012 , the company 's investments consisted of only united states treasury securities and money market funds aggregating $ 76.1 million . cash collected by the company 's united states subsidiaries is routinely transferred into cash management accounts which typically do not have restrictions on withdrawals . as of december 31 , 2012 , the company had $ 83.6 million or 47.6 % of its cash and cash equivalents held outside the united states in accounts belonging to several of the company 's foreign operating entities . the majority of this balance is held in foreign currencies and could be subject to additional taxation if it were repatriated to the united states . the company has no plans to repatriate cash and cash equivalents held outside the united states as such funds are expected to be used to fund future international growth and acquisitions . the company 's operating activities provided $ 68.1 million , $ 35.1 million and $ 77.2 million in net cash in 2012 , 2011 and 2010 , respectively .
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 Suspicious Activity Report : overall , home center sales in 2012 decreased from their 2011 level and were comparable to their 2010 level , due to the loss of a customer , although 2012 sales to the home depot increased from 2010. sales to the home depot exceeded 10 % of the company 's consolidated net sales in the years ended december 31 , 2012 , 2011 and 2010 ( see item 27 1a  risk factors and note 14 to the company 's consolidated financial statements ) . net sales also increased in 2012 from 2010 in the european and asia/pacific segments , with above average increases in the asia/pacific segment . net sales increases in north america and europe segments were partly due to the acquisitions of : · certain assets of cgmi , formerly called socom s.a. , a french company ( socom ) , in 2010 : · the assets of fox industries , inc. ( fox industries ) , a maryland company , in december 2011 : · the assets of automatic stamping , llc , and automatic stamping auxiliary services , llc , both north carolina limited liability companies ( collectively automatic stamping ) , in december 2011 ; and · s & p clever reinforcement ag and s & p clever international ag , both companies incorporated under the laws of switzerland ( collectively s & p clever ) , in january 2012 . · gross profit margin decreased from 44.0 % in 2010 to 43.1 % in 2012 , with wood construction products representing 85 % of total sales in 2012 , down from 89 % of total sales in 2010. the overall 2012 gross profit margin was negatively affected by increased sales of concrete construction products , which have lower profit margins and higher material costs as compared to wood construction products . the gross profit margin differential between wood construction products and concrete construction products narrowed from 23 % in 2010 to 17 % in 2012 . · operating expenses increased to $ 221.8 million , 33.7 % of sales , in 2012 from $ 165.7 million , 29.9 % of sales in 2010 , primarily due to acquisitions , which increased the number of employees since 2010 , research and development expenses and depreciation and amortization expenses . retailers and distributors have consolidated over time , both providing opportunities for growth and exposing simpson strong-tie to potential over-dependence with the increasing size and importance of individual customers . the loss of any of the larger home centers and distributors as customers would have a material adverse effect on sst , unless and until either such customers are replaced or sst makes the necessary adjustments ( if possible ) to compensate for the loss of business . results of operations the following table sets forth , for the years indicated , the percentage of net sales of specified items in the company 's consolidated statements of operations . replace_table_token_4_th 28 comparison of the years ended december 31 , 2012 and 2011 the following table illustrates the change in the company 's continuing operations from 2011 to 2012 , and the increases or decreases for each category by segment . ( in thousands ) replace_table_token_5_th net sales the following table represents net sales by segment for the years ended december 31 , 2011 and 2012 : ( in thousands ) replace_table_token_6_th the following table represents segment net sales as percentages of total net sales for the years ended december 31 , 2011 and 2012 : replace_table_token_7_th · the 10.1 % increase in north american segment net sales accounted for 89.6 % of the overall increase and resulted from increased sales volume and the acquisitions of fox industries and automatic stamping while average prices for the year were flat . · the 3.6 % increase in european segment net sales accounted for 8.0 % of the overall company increase and resulted from the acquisition of s & p clever and a slight price increase partly offset by reduced sales volumes due to difficult economic conditions , and unfavorable currency translations of approximately $ 5.8 million . · net sales in the asia/pacific segment , although relatively small , have increased as the company continued expanding its presence in the region . asia/pacific net sales were not materially affected by currency translations . 29 gross profit the following table represents gross profit by segment for the years ended december 31 , 2011 and 2012 : ( in thousands ) replace_table_token_8_th the following table represents gross profit percentage by segment for the years ended december 31 , 2011 and 2012 : replace_table_token_9_th · wood construction products represented 85 % of total sales in 2012 , down from 89 % of total sales in 2011 . · the overall 2012 gross profit margins were negatively affected by increased sales of concrete construction products , which have lower profit margins . · the gross profit margin differential between wood construction products and concrete construction products increased from 15 % in 2011 to 17 % in 2012 . · the north american segment accounted for 92.7 % of the overall increase in gross profit with wood construction products representing 87 % of total north american segment 's net sales in 2012 , down from 89 % in 2011. the decreased gross profit margin was due primarily to higher material costs as a percentage of net sales , increased concrete construction product sales , which have a lower gross profit margin than wood construction product sales , and greater price competition . · wood construction product sales represented 80 % of the european segment 's net sales in 2012 down from 92 % in 2011. the decreased gross profit margin was primarily due to charges resulting from the decision to discontinue manufacturing heavy-duty mechanical anchors made at the company 's facility in ireland and selling those products in europe . story_separator_special_tag if actual costs of sales returns , incentives and discounts were to significantly exceed the recorded estimated allowance , the company 's sales would be adversely affected . business combinations the company recognizes separately from goodwill the assets acquired and the liabilities assumed at their acquisition date fair values . goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the assets acquired and the liabilities assumed . while the company uses its best estimates and assumptions as a part of the purchase price allocation process to value assets acquired and liabilities assumed at the acquisition date , the company 's estimates are inherently uncertain and subject to refinement . as a result , during the measurement period , which may be up to one year from the acquisition date , the company records adjustments to the assets acquired and liabilities assumed , with the corresponding offset to goodwill . on the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed , whichever comes first , the company records any subsequent adjustments to its consolidated statements of operations . accounting for business combinations requires the company 's management to make significant estimates and assumptions , especially at the acquisition date with respect to intangible assets . although the company believes that the assumptions and estimates it has made in the past have been reasonable and appropriate , they are based in part on historical experience and information obtained from the management of the acquired companies and are inherently uncertain . examples of critical estimates in valuing certain of the intangible assets that the company has acquired include : · future expected cash flows from customer relationships and acquired unpatented technologies and patents ; · the acquired company 's brand and competitive position and assumptions about the period of time the acquired brand will continue to be used in the combined company 's product portfolio ; and · discount rates . unanticipated events and circumstances may affect the accuracy or validity of such assumptions , estimates or actual results . for a given acquisition , the company may identify pre-acquisition contingencies as of the acquisition date and may extend its review and evaluation of these pre-acquisition contingencies throughout the measurement period ( up to one year from the acquisition date ) to obtain sufficient information to assess whether the company includes these contingencies as a part of the purchase price allocation and , if so , to determine their estimated amounts . if the company determines that a pre-acquisition contingency ( that is not income-tax related ) is probable and estimable as of the acquisition date , the company records its best estimate for such a contingency as a part of the preliminary purchase price allocation . the company often continues to gather information for and evaluate its pre-acquisition contingencies throughout the measurement period . if the company changes the amounts recorded or identifies additional pre-acquisition contingencies during the measurement period , such amounts are included in the purchase price allocation during the measurement period and , subsequently , in the company 's results of operations . 35 in addition , the company estimates uncertain tax positions and tax related valuation allowances assumed in connection with a business combination initially as of the acquisition date . the company reevaluates these items quarterly with any adjustments to its preliminary estimates being recorded to goodwill if the company is within the measurement period . the company continues to collect information to determine estimated values . subsequent to the measurement period or the company 's final determination of the uncertain tax positions estimated value or tax-related valuation allowances , whichever comes first , changes to these uncertain tax positions and tax-related valuation allowances will affect the company 's provision for income taxes in its consolidated statement of operations and could have a material effect on the company 's results of operations and financial position . goodwill impairment testing the company tests goodwill for impairment at the reporting unit level on an annual basis ( in the fourth quarter for the company ) . the company also reviews goodwill for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable . these events or circumstances could include a significant change in the business climate , legal factors , operating performance indicators , competition , or disposition or relocation of a significant portion of a reporting unit . the reporting unit level is generally one level below the operating segment , which is at the country level , except in the united states and australia and except for s & p clever . the company determined that the united states reporting unit includes four components : northwest united states , southwest united states , northeast united states and southeast united states ( collectively the u.s . components ) . the company aggregates the u.s. components into a single reporting unit because management concluded that they are economically similar and that the goodwill is recoverable from the u.s. components working in concert . the u.s. components are economically similar because of a number of factors , including selling similar products to the shared customers and sharing assets and services such as intellectual property , manufacturing assets for certain products , research and development projects , manufacturing processes , management of inventory excesses and shortages and administrative services . these activities are managed centrally at the u.s. components level and costs are allocated among the four u.s. components . the company determined that the australia reporting unit includes three components : australia , new zealand and south africa ( collectively the au components ) . the company aggregates the au components into a single reporting unit because management concluded that they are economically similar and that the goodwill is recoverable from the au components working in concert .

