the international distribution segment markets aidc , pos and barcode , communications , and security products through its scan source latin america sales unit ; pos and aidc products through its scan source europe sales unit , and communication products through its scan source communications sales unit in europe . the company was incorporated in south carolina in december 1992 and is headquartered in greenville , south carolina . the company serves north america from a single , centrally located distribution center located in southaven , mississippi , near the fedex hub . the single warehouse and strong management information system form the cornerstone of the company 's cost-driven operational strategy . this strategy has been expanded to latin america and europe . the company 's objective is to increase profitability in the technologies we distribute . in doing so , our management team faces numerous challenges that require attention and resources . first , certain business units and geographies are experiencing increased competition for the products we distribute . this could affect both our market share and pricing of our products as management may change strategy in order to effectively compete . the company continues making investments in latin america and certain businesses within europe by temporarily accepting lower than normal returns in the business in an effort to gain market share and customers . changing economic conditions in countries in which we market our products may also require attention from our management team . furthermore , the company is implementing a standardized enterprise resource planning ( erp ) system that is intended to be used throughout the world and provide operational efficiencies . the company is expecting to begin transition of the new erp system in certain business units in fiscal year 2012 and continue to transition other business units into 2013. finally , the company continues to evaluate strategic acquisitions to enhance our technological or geographic portfolio . management is currently working to integrate our most recent acquisition , cdc . 18 index to financial statements on november 30 , 2009 , the company acquired substantially all of the assets and certain liabilities of algol europe , gmbh ( algol ) , a value added distributor specializing in convergence communication solutions . algol , headquartered in cologne , germany , was renamed scan source communications gmbh and joined scan source communications uk as part of scan source communications europe . on april 15 , 2011 , the company purchased all of the shares of cdc brasil , s.a. , formerly called cdc brasil distribuidora ltda . cdc is the leading pos and barcoding distributor in brazil . the share purchase transaction was completed on april 15 , 2011. cdc , headquartered in curitiba , brazil , is now a part of the scan source latin america operating unit . the business valuation for the company is incomplete as of the date of this filing . as such , the value assigned to identifiable intangible assets , the liability for the contingent consideration transferred to the sellers and goodwill are subject to change within the measurement period set forth in asc 805. the company distributes products for many of our key vendors in all of our geographic markets ; however certain vendors only allow distribution to specific geographies . the company 's key vendors in its worldwide pos and barcoding sales units include bematech , cisco , datalogic , datamax-o'neil , elo , epson , honeywell , ibm , intermec , lxe , motorola , ncr , and zebra technologies . the company 's key vendors in its worldwide communications sales units , including catalyst telecom , include aruba , avaya , audiocodes , dialogic , extreme networks , juniper networks , plantronics , polycom and shoretel . the company 's key vendors in its security sales units include alvarion , axis , bosch , cisco , datacard , dsc , fargo , hid , march networks , panasonic , pelco , ruckus wireless , sony , united technologies fire and security and zebra card . cost control/profitability the company 's operating income growth is driven not only by gross profits but by a disciplined control of operating expenses . the company 's operations feature a scalable information system , streamlined management , and centralized distribution , enabling it to achieve the economies of scale necessary for cost-effective order fulfillment . from its inception , the company has managed its general and administrative expenses by maintaining strong cost controls . however , in order to continue to grow its markets , the company has invested in new initiatives including investments in new geographic markets of europe and latin america , increased marketing efforts to recruit resellers , enhancements of employee benefit plans to retain employees , and strategic acquisitions in both the north american and international distribution segments . evaluating financial condition and operating performance the company 's management places a significant emphasis on operating income and return on invested capital ( roic ) in evaluating and monitoring the company 's financial condition and operating performance . management uses roic , a non-gaap measure , to assess its efficiency at allocating the capital under its control to generate returns . roic is computed by the company as net income plus income taxes , interest expense , depreciation and amortization divided by invested capital . invested capital is defined as average equity plus daily average interest bearing debt for the period . the following table summarizes the company 's return on invested capital ratio for the fiscal years ended june 30 , 2011 , 2010 , and 2009 , respectively : replace_table_token_4_th the discussion that follows this overview explains the increase in roic from the comparative periods shown above . story_separator_special_tag the company generates interest income on longer-term interest bearing receivables , and , to a much lesser extent , interest earned on cash and cash-equivalent balances on hand . net foreign exchange gains and losses consist of foreign currency transactional and functional currency re-measurements , offset by net foreign currency exchange contract gains and losses . foreign exchange losses and gains are generated as the result of fluctuations in the value of the euro versus the british pound and the u.s. dollar versus other currencies . during the fiscal years ended june 30 , 2010 and june 30 , 2009 , the company generated a net foreign exchange loss due to the fluctuations of the u.s. dollar against the euro , the british pound , the mexican peso , and the canadian dollar . while the company utilizes foreign exchange contracts and debt in non-functional currencies to hedge foreign currency exposure , our foreign exchange policy prohibits us from entering into speculative transactions . during the quarter ended december 31 , 2008 , the company settled a claim against a former legal service provider resulting in a $ 3.5 million recovery . the settlement was received by the company on december 5 , 2008 and was recorded as other income . 26 index to financial statements provision for income taxes income tax expense was $ 26.9 million and $ 28.0 million for the fiscal years ended june 30 , 2010 and 2009 , respectively , reflecting an effective tax rate of 35.6 % and 37.0 % , respectively . the decrease in the effective tax rate from the prior fiscal year is largely attributable to a favorable mix of income derived from lower tax rate jurisdictions , and reflects the benefit of changes to the international capital structure executed during the fiscal year 2010. net income the following table summarizes the company 's net income for the fiscal year ended june 30th : replace_table_token_21_th net income for the fiscal year ended june 30 , 2010 was $ 48.8 million , a $ 1.1 million increase over the prior fiscal year . the increase in net income is attributable to the changes in operating profit previously discussed . quarterly results the following tables set forth certain unaudited quarterly financial data . the information has been derived from unaudited financial statements that , in the opinion of management , reflect all adjustments . replace_table_token_22_th 27 index to financial statements critical accounting policies and estimates management 's discussion and analysis of financial condition and results of operations are based upon the company 's consolidated financial statements , which have been prepared in conformity with accounting principles generally accepted in the united states of america . the preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . on an ongoing basis management evaluates its estimates , including those related to the allowance for uncollectible accounts receivable , inventory reserves to reduce inventories to the lower of cost or market , and vendor incentives . management bases its estimates on historical experience and on various other assumptions that management believes to be reasonable under the circumstances , the results of which form a basis for making judgments about the carrying value of assets and liabilities that are not readily available from other sources . actual results may differ materially from these estimates under different assumptions or conditions , however , management believes that its estimates , including those for the above-described items are reasonable and that the actual results will not vary significantly from the estimated amounts . for further discussion of our significant accounting policies , refer to note 2 of notes to consolidated financial statements . revenue recognition revenue is recognized once four criteria are met : ( 1 ) the company must have persuasive evidence that an arrangement exists ; ( 2 ) delivery must occur , which happens at the point of shipment ( this includes the transfer of both title and risk of loss , provided that no significant obligations remain ) ; ( 3 ) the price must be fixed and determinable ; and ( 4 ) collectability must be reasonably assured . the company allows its customers to return product for exchange or credit subject to certain limitations . a provision for estimated losses on returns is recorded based on historical experience . service revenue associated with configuration and marketing services is recognized when the work is complete and the four criteria discussed above have been substantially met . the company also distributes third-party service contracts , typically for product maintenance and support . since the company acts as an agent on behalf of most of these service contracts sold , revenue is recognized net of cost at the time of sale . however , the company distributes some self-branded warranty programs and engages a third party ( generally the original equipment manufacturer ) to cover the fulfillment of any obligations arising from these contracts . these revenues and associated third party costs are amortized over the life of contract and presented in net sales and cost of goods sold , respectively . service revenue associated with configuration , marketing , service contracts and other services has represented less than 2 % of consolidated net sales for fiscal years 2011 , 2010 and 2009. during the fiscal years ended june 30 , 2011 , 2010 , and 2009 , the company has not engaged in any sales transactions involving multiple element arrangements . had any arrangements with multiple deliverables occurred , the company would follow the guidance set forth in asc 605. allowances for trade and notes receivable the company maintains an allowance for uncollectible accounts receivable for estimated losses resulting from customers ' failure to make payments on accounts receivable

liquidity and capital resources our primary sources of liquidity are cash flow from operations , borrowings under the revolving credit facility , secured and unsecured borrowings , and borrowings under the subsidiary 's line of credit . cash and cash equivalent balance totaled $ 28.7 million at june 30 , 2011 , compared to $ 34.6 million at june 30 , 2010 , of which $ 10.9 million and $ 7.4 million were held outside of the united states as of june 30 , 2011 and 2010 , respectively . cash balances are generated and used in many locations throughout the world . management 's intent is to permanently reinvest these funds in our businesses outside the united states to continue to fund growth in our international operations . furthermore , our current plans do not require repatriation of funds from our international operations to fund its operations in the united states . if these funds were needed in the operations of the united states , we would be required to record and pay significant income taxes to the united states to repatriate these funds . see footnote 12  income taxes in the notes to the consolidated financial statements for further discussion . 29 index to financial statements during fiscal 2010 , the company made strategic decisions to increase purchasing activity beyond our immediate needs , in light of known product constraints in multiple vendors ' supply chains and to strategically position our inventory levels to accommodate anticipated customer orders as the global macroeconomic environment was improving . as a result , the company shifted its working capital position from an atypically large cash position in fiscal 2009 to inventory , accounts receivable and trade payables in fiscal 2010. during 2011 , the company continued to experience increased demand and accounts receivable continued to increase . as such , inventory levels were expanded to meet higher demand levels and utilize favorable vendor pricing programs .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources our primary sources of liquidity are cash flow from operations , borrowings under the revolving credit facility , secured and unsecured borrowings , and borrowings under the subsidiary 's line of credit . cash and cash equivalent balance totaled $ 28.7 million at june 30 , 2011 , compared to $ 34.6 million at june 30 , 2010 , of which $ 10.9 million and $ 7.4 million were held outside of the united states as of june 30 , 2011 and 2010 , respectively . cash balances are generated and used in many locations throughout the world . management 's intent is to permanently reinvest these funds in our businesses outside the united states to continue to fund growth in our international operations . furthermore , our current plans do not require repatriation of funds from our international operations to fund its operations in the united states . if these funds were needed in the operations of the united states , we would be required to record and pay significant income taxes to the united states to repatriate these funds . see footnote 12  income taxes in the notes to the consolidated financial statements for further discussion . 29 index to financial statements during fiscal 2010 , the company made strategic decisions to increase purchasing activity beyond our immediate needs , in light of known product constraints in multiple vendors ' supply chains and to strategically position our inventory levels to accommodate anticipated customer orders as the global macroeconomic environment was improving . as a result , the company shifted its working capital position from an atypically large cash position in fiscal 2009 to inventory , accounts receivable and trade payables in fiscal 2010. during 2011 , the company continued to experience increased demand and accounts receivable continued to increase . as such , inventory levels were expanded to meet higher demand levels and utilize favorable vendor pricing programs .
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 Suspicious Activity Report : the international distribution segment markets aidc , pos and barcode , communications , and security products through its scan source latin america sales unit ; pos and aidc products through its scan source europe sales unit , and communication products through its scan source communications sales unit in europe . the company was incorporated in south carolina in december 1992 and is headquartered in greenville , south carolina . the company serves north america from a single , centrally located distribution center located in southaven , mississippi , near the fedex hub . the single warehouse and strong management information system form the cornerstone of the company 's cost-driven operational strategy . this strategy has been expanded to latin america and europe . the company 's objective is to increase profitability in the technologies we distribute . in doing so , our management team faces numerous challenges that require attention and resources . first , certain business units and geographies are experiencing increased competition for the products we distribute . this could affect both our market share and pricing of our products as management may change strategy in order to effectively compete . the company continues making investments in latin america and certain businesses within europe by temporarily accepting lower than normal returns in the business in an effort to gain market share and customers . changing economic conditions in countries in which we market our products may also require attention from our management team . furthermore , the company is implementing a standardized enterprise resource planning ( erp ) system that is intended to be used throughout the world and provide operational efficiencies . the company is expecting to begin transition of the new erp system in certain business units in fiscal year 2012 and continue to transition other business units into 2013. finally , the company continues to evaluate strategic acquisitions to enhance our technological or geographic portfolio . management is currently working to integrate our most recent acquisition , cdc . 18 index to financial statements on november 30 , 2009 , the company acquired substantially all of the assets and certain liabilities of algol europe , gmbh ( algol ) , a value added distributor specializing in convergence communication solutions . algol , headquartered in cologne , germany , was renamed scan source communications gmbh and joined scan source communications uk as part of scan source communications europe . on april 15 , 2011 , the company purchased all of the shares of cdc brasil , s.a. , formerly called cdc brasil distribuidora ltda . cdc is the leading pos and barcoding distributor in brazil . the share purchase transaction was completed on april 15 , 2011. cdc , headquartered in curitiba , brazil , is now a part of the scan source latin america operating unit . the business valuation for the company is incomplete as of the date of this filing . as such , the value assigned to identifiable intangible assets , the liability for the contingent consideration transferred to the sellers and goodwill are subject to change within the measurement period set forth in asc 805. the company distributes products for many of our key vendors in all of our geographic markets ; however certain vendors only allow distribution to specific geographies . the company 's key vendors in its worldwide pos and barcoding sales units include bematech , cisco , datalogic , datamax-o'neil , elo , epson , honeywell , ibm , intermec , lxe , motorola , ncr , and zebra technologies . the company 's key vendors in its worldwide communications sales units , including catalyst telecom , include aruba , avaya , audiocodes , dialogic , extreme networks , juniper networks , plantronics , polycom and shoretel . the company 's key vendors in its security sales units include alvarion , axis , bosch , cisco , datacard , dsc , fargo , hid , march networks , panasonic , pelco , ruckus wireless , sony , united technologies fire and security and zebra card . cost control/profitability the company 's operating income growth is driven not only by gross profits but by a disciplined control of operating expenses . the company 's operations feature a scalable information system , streamlined management , and centralized distribution , enabling it to achieve the economies of scale necessary for cost-effective order fulfillment . from its inception , the company has managed its general and administrative expenses by maintaining strong cost controls . however , in order to continue to grow its markets , the company has invested in new initiatives including investments in new geographic markets of europe and latin america , increased marketing efforts to recruit resellers , enhancements of employee benefit plans to retain employees , and strategic acquisitions in both the north american and international distribution segments . evaluating financial condition and operating performance the company 's management places a significant emphasis on operating income and return on invested capital ( roic ) in evaluating and monitoring the company 's financial condition and operating performance . management uses roic , a non-gaap measure , to assess its efficiency at allocating the capital under its control to generate returns . roic is computed by the company as net income plus income taxes , interest expense , depreciation and amortization divided by invested capital . invested capital is defined as average equity plus daily average interest bearing debt for the period . the following table summarizes the company 's return on invested capital ratio for the fiscal years ended june 30 , 2011 , 2010 , and 2009 , respectively : replace_table_token_4_th the discussion that follows this overview explains the increase in roic from the comparative periods shown above . story_separator_special_tag the company generates interest income on longer-term interest bearing receivables , and , to a much lesser extent , interest earned on cash and cash-equivalent balances on hand . net foreign exchange gains and losses consist of foreign currency transactional and functional currency re-measurements , offset by net foreign currency exchange contract gains and losses . foreign exchange losses and gains are generated as the result of fluctuations in the value of the euro versus the british pound and the u.s. dollar versus other currencies . during the fiscal years ended june 30 , 2010 and june 30 , 2009 , the company generated a net foreign exchange loss due to the fluctuations of the u.s. dollar against the euro , the british pound , the mexican peso , and the canadian dollar . while the company utilizes foreign exchange contracts and debt in non-functional currencies to hedge foreign currency exposure , our foreign exchange policy prohibits us from entering into speculative transactions . during the quarter ended december 31 , 2008 , the company settled a claim against a former legal service provider resulting in a $ 3.5 million recovery . the settlement was received by the company on december 5 , 2008 and was recorded as other income . 26 index to financial statements provision for income taxes income tax expense was $ 26.9 million and $ 28.0 million for the fiscal years ended june 30 , 2010 and 2009 , respectively , reflecting an effective tax rate of 35.6 % and 37.0 % , respectively . the decrease in the effective tax rate from the prior fiscal year is largely attributable to a favorable mix of income derived from lower tax rate jurisdictions , and reflects the benefit of changes to the international capital structure executed during the fiscal year 2010. net income the following table summarizes the company 's net income for the fiscal year ended june 30th : replace_table_token_21_th net income for the fiscal year ended june 30 , 2010 was $ 48.8 million , a $ 1.1 million increase over the prior fiscal year . the increase in net income is attributable to the changes in operating profit previously discussed . quarterly results the following tables set forth certain unaudited quarterly financial data . the information has been derived from unaudited financial statements that , in the opinion of management , reflect all adjustments . replace_table_token_22_th 27 index to financial statements critical accounting policies and estimates management 's discussion and analysis of financial condition and results of operations are based upon the company 's consolidated financial statements , which have been prepared in conformity with accounting principles generally accepted in the united states of america . the preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . on an ongoing basis management evaluates its estimates , including those related to the allowance for uncollectible accounts receivable , inventory reserves to reduce inventories to the lower of cost or market , and vendor incentives . management bases its estimates on historical experience and on various other assumptions that management believes to be reasonable under the circumstances , the results of which form a basis for making judgments about the carrying value of assets and liabilities that are not readily available from other sources . actual results may differ materially from these estimates under different assumptions or conditions , however , management believes that its estimates , including those for the above-described items are reasonable and that the actual results will not vary significantly from the estimated amounts . for further discussion of our significant accounting policies , refer to note 2 of notes to consolidated financial statements . revenue recognition revenue is recognized once four criteria are met : ( 1 ) the company must have persuasive evidence that an arrangement exists ; ( 2 ) delivery must occur , which happens at the point of shipment ( this includes the transfer of both title and risk of loss , provided that no significant obligations remain ) ; ( 3 ) the price must be fixed and determinable ; and ( 4 ) collectability must be reasonably assured . the company allows its customers to return product for exchange or credit subject to certain limitations . a provision for estimated losses on returns is recorded based on historical experience . service revenue associated with configuration and marketing services is recognized when the work is complete and the four criteria discussed above have been substantially met . the company also distributes third-party service contracts , typically for product maintenance and support . since the company acts as an agent on behalf of most of these service contracts sold , revenue is recognized net of cost at the time of sale . however , the company distributes some self-branded warranty programs and engages a third party ( generally the original equipment manufacturer ) to cover the fulfillment of any obligations arising from these contracts . these revenues and associated third party costs are amortized over the life of contract and presented in net sales and cost of goods sold , respectively . service revenue associated with configuration , marketing , service contracts and other services has represented less than 2 % of consolidated net sales for fiscal years 2011 , 2010 and 2009. during the fiscal years ended june 30 , 2011 , 2010 , and 2009 , the company has not engaged in any sales transactions involving multiple element arrangements . had any arrangements with multiple deliverables occurred , the company would follow the guidance set forth in asc 605. allowances for trade and notes receivable the company maintains an allowance for uncollectible accounts receivable for estimated losses resulting from customers ' failure to make payments on accounts receivable

