throughout fiscal 2013 , we maintained a level of overhead in our business to support higher sales expected in future periods . we obtained orders from a number of new customers and additional operating locations for existing customers during the second half of fiscal 2013 which resulted in higher overhead costs due to the upfront investment required to establish new programs . most programs become more profitable after they ramp up and we expect that trend to continue . selling and administrative ( `` s & a `` ) expense is presented excluding restatement and related expenses discussed below . s & a expense increased $ 0.2 million , and represents 9.6 % of sales in the fourth quarter of fiscal 2013 , compared to 9.7 % of sales in the same quarter of the prior fiscal year . the increase in s & a expense for the fourth quarter of fiscal 2013 was primarily increased wage and related expenses . the net increase in wage and related expenses was due to increased medical insurance costs partially offset by decreases resulting from changes in the company 's organizational structure made during the second quarter of the current fiscal year . during the fourth quarter of fiscal 2013 , we recorded impairment charges of $ 14.2 million relating to our scb reporting unit . $ 11.8 million of the impairment charge relates to goodwill and $ 2.4 million relates to a customer relationship intangible asset . the impairment analysis and resulting charges are due to slower than anticipated growth and poor operating performance at scb , as well as market uncertainties and strategic changes made by the company as more particularly discussed in note 6  intangible assets and note 7  goodwill to the consolidated financial statements included in this form 10-k. while the strategic change to direct future military & aerospace revenue growth to our albuquerque reporting unit contributed to an impairment for our scb reporting unit , it is intended to improve overall profitability for the consolidated company . although uncertainties in the military & aerospace market sector will likely continue , the majority of our military & aerospace customers participate in complex , advanced technology programs including unmanned vehicles , space defense and space exploration , which we expect to be continued over the long term . restatement and related expenses of $ 0.6 million in the fourth quarter of fiscal 2013 represent third party legal and accounting fees directly attributable to the restatement as well as other matters arising from the restatement including those more fully described in note 17-litigation to the accompanying consolidated financial statements . we anticipate elevated levels of legal expenses due to the restatement and other matters ( including the now formal sec investigation and consolidated shareholder class action ) for the foreseeable future . interest expense increased $ 0.2 million compared to the same quarter of the prior fiscal year . iec 's average outstanding debt balances increased to $ 35.3 million for the fourth quarter of fiscal 2013 from $ 28.4 million for the same quarter of the prior fiscal year . average borrowings in the fourth quarter of fiscal 2013 were higher than the fourth quarter of the prior fiscal year primarily due to increased borrowings on the revolver to fund operations . the weighted average interest rate on iec 's debt , excluding the impact of the interest rate swap , was 0.05 % higher than in the fourth quarter of the prior fiscal year . interest expense in the fourth quarter of fiscal 2013 was also impacted by covenant waiver fees . detailed information regarding our borrowings , including a summary of modifications in the fourth amended and restated credit facility agreement , is provided in note 8 - credit facilities to the consolidated financial statements included in this form 10-k. the benefit from income taxes was $ 5.0 million for the fourth quarter of fiscal 2013 as compared to provision for income taxes of $ 0.7 million for the fourth quarter of the prior fiscal year . the decrease is the result of a decrease in pretax loss in fiscal 2013 and a higher effective tax rate . our effective tax rate for the fourth quarter of fiscal 2013 is 36.6 % compared to 31 % in fiscal 2012. our federal statutory rate of 34 % was increased by the benefit from state income tax as well as increases in state tax credits , partially offset by an adjustment to deferred tax assets resulting from an irs audit . with respect to tax payments , in the near term iec expects to be sheltered by sizable net operating loss ( “ nol ” ) carryforwards for federal and new york state income tax purposes . at the end of fiscal 2013 , the carryforwards amounted to approximately $ 16.2 million and $ 26.1 million for federal and new york state , respectively . the carryforwards expire in varying amounts between 2021 and 2025 unless utilized prior to these dates . 19 years ended september 30 , 2013 and 2012 a summary of selected income statement amounts for the fiscal years ended follows : replace_table_token_5_th as more fully described in note 2  restatement of consolidated financial statements to the consolidated financial statements included in this form 10-k , the company has restated its financial statements for the three month period and year ended september 30 , 2012. a summary of sales , according to the market sector within which iec 's customers operate , follows : replace_table_token_6_th revenue decreased compared to the prior fiscal year by $ 4.0 million or 2.8 % . revenue decreases in the industrial , medical and communications & other market sectors were partially offset by increased revenue in the military & aerospace market sector of $ 9.0 million . revenue for the industrial market sector decreased $ 7.3 million primarily due to decreases in demand from two customers . story_separator_special_tag in preparing financial statements , management is required to ( i ) determine the manner in which accounting principles are applied and ( ii ) make estimates and assumptions that affect the reported amounts of assets , liabilities , revenue and expenses . a discussion of the company 's critical accounting policies follows . revenue recognition : under fasb asc 605-10 ( revenue recognition ) , revenue from sales is recognized when ( i ) goods are shipped or title and risk of ownership have passed , ( ii ) the price to the buyer is fixed or determinable , and ( iii ) realization is reasonably assured . service revenues are generally recognized as services are rendered or , in the case of material management contracts , in proportion to materials procured to date . provisions for discounts and rebates to customers , estimated returns and allowances and other adjustments are recorded in the period the related sales are recognized . doubtful accounts : fasb asc 310-10-35 ( receivables ) requires us to establish an allowance for doubtful accounts when it is probable that losses have been incurred in the collection of accounts receivable and the amount of loss can reasonably be estimated . if losses are probable and estimable , they are to be accrued even though the particular customer accounts on which losses will be incurred can not yet be identified . inventory reserves : fasb asc 330-10-35 ( inventory ) requires us to reduce the carrying value of inventory when there is evidence that the utility of goods will be less than cost , whether due to physical deterioration , obsolescence , changes in price levels or other causes . inventory balances are generally reduced to the lower of cost or market value by establishing offsetting balance sheet reserves . intangible assets : fasb asc 805-20 ( business combinations ) requires corporate acquirers to recognize , separately from goodwill , intangible assets that meet either a separability or contractual-legal criterion . establishing the initial value for such intangible assets typically involves estimating cash flows to be derived from the assets and discounting the cash flows back to the acquisition date . significant judgment is required in estimating future cash flows , selecting discount rates and determining useful lives over which to amortize the assets . in connection with recent corporate acquisitions , iec has established intangible assets for customer relationships , a property-tax abatement , and a non-compete agreement . during the fourth quarter of fiscal 2013 , we recorded an impairment charge of $ 2.4 million related to scb 's customer relationships . the impairment analysis and resulting charge is further discussed in note 6  intangible assets to the consolidated financial statements included in this form 10-k. goodwill : goodwill represents the excess of cost over fair value of net assets acquired in a corporate acquisition . under asc 350 , goodwill is not amortized but is required to be reviewed for impairment at least annually or when events or circumstances indicate that carrying value may exceed fair value . the review process entails comparing the overall fair value of the unit to which goodwill relates to carrying value . if fair value exceeds carrying value , no goodwill write-down is required . if fair value of the unit is less than carrying value , a valuation of the unit 's individual assets and liabilities is required to determine whether or not goodwill is impaired . quantitative evaluations of goodwill may be avoided if qualitative assessments indicate a greater-than-50 percent likelihood that fair value of the corresponding unit exceeds its carrying value . during the fourth quarter of fiscal 2013 , we recorded an impairment charge of $ 11.8 million related to scb 's goodwill . the impairment analysis and resulting charge is further discussed in note 7  goodwill to the consolidated financial statements included in this form 10-k. derivative financial instruments : we actively monitor exposure to interest rate risk and from time to time use derivative financial instruments to manage the impact of this risk . we use derivatives only for purposes of managing risk associated with underlying exposures . we do not trade or use instruments with the objective of earning financial gains on the interest rate , nor do we use derivative instruments where we do not have underlying exposures . we manage our hedging position and monitor the credit ratings of counterparties and do not anticipate losses due to counterparty nonperformance . we believe our use of derivative instruments to manage risk is in the company 's best interest . however , our use of derivative financial instruments may result in short-term gains or losses and increased earnings volatility . our derivative instruments are recorded in the consolidated balance sheets at fair value in other assets or other long-term liabilities . impairment of long-lived assets : fasb asc 360-10 ( property , plant and equipment ) and 350-30 ( intangibles ) require the company to test long-lived assets ( pp & e and amortizing intangible assets ) for recoverability whenever events or circumstances indicate that the carrying amount may not be recoverable . if carrying value exceeds undiscounted future cash flows attributable to an asset , it is considered impaired and carrying amount must be reduced to fair value . 24 legal contingencies : when legal proceedings are brought or claims are made against us and the outcome is uncertain , fasb asc 450-10 ( contingencies ) requires that we accrue an estimated loss if it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated . any such accruals are charged to earnings . disclosure of a contingency is required if there is at least a reasonable possibility that a loss will be incurred . in determining whether to accrue or disclose a loss , we evaluate , among other factors , the

capital resources as of september 30 , 2013 outstanding capital expenditure commitments were $ 2.7 million . this includes a commitment to purchase our celmet facility , which was previously leased , for $ 1.3 million . as more fully described in note 8-credit facilities to the consolidated financial statements included in this form 10-k , we entered into a term loan to fund this purchase subsequent to the end of fiscal 2013. the majority of our remaining commitments are for manufacturing equipment including upgrades and replacement of existing equipment . we generally fund capital expenditures with cash flow from operations and our revolving credit facility . 21 summary of cash flows replace_table_token_7_th operating activities cash flows provided by operations , before considering changes in iec 's working capital accounts was $ 4.5 million and $ 16.1 million for the years ended september 30 , 2013 and 2012 , respectively . the decrease was primarily driven by a $ 16.2 million decrease in net income , a $ 8.9 million lower add-back for deferred taxes and a $ 1.1 million decrease in contingent consideration , offset by a $ 14.2 million impairment charge of goodwill and intangible assets taken in fiscal 2013 as well as a $ 0.5 million increase in depreciation and amortization . cash flows used by working capital increased from $ 3.1 million for the year ended september 30 , 2012 to $ 8.9 million for the year ended september 30 , 2013. an increase of accounts receivable of $ 4.9 million and an increase of inventory of $ 4.2 million were the primary cause of change in working capital .


 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.
     ```capital resources as of september 30 , 2013 outstanding capital expenditure commitments were $ 2.7 million . this includes a commitment to purchase our celmet facility , which was previously leased , for $ 1.3 million . as more fully described in note 8-credit facilities to the consolidated financial statements included in this form 10-k , we entered into a term loan to fund this purchase subsequent to the end of fiscal 2013. the majority of our remaining commitments are for manufacturing equipment including upgrades and replacement of existing equipment . we generally fund capital expenditures with cash flow from operations and our revolving credit facility . 21 summary of cash flows replace_table_token_7_th operating activities cash flows provided by operations , before considering changes in iec 's working capital accounts was $ 4.5 million and $ 16.1 million for the years ended september 30 , 2013 and 2012 , respectively . the decrease was primarily driven by a $ 16.2 million decrease in net income , a $ 8.9 million lower add-back for deferred taxes and a $ 1.1 million decrease in contingent consideration , offset by a $ 14.2 million impairment charge of goodwill and intangible assets taken in fiscal 2013 as well as a $ 0.5 million increase in depreciation and amortization . cash flows used by working capital increased from $ 3.1 million for the year ended september 30 , 2012 to $ 8.9 million for the year ended september 30 , 2013. an increase of accounts receivable of $ 4.9 million and an increase of inventory of $ 4.2 million were the primary cause of change in working capital .
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 Suspicious Activity Report : throughout fiscal 2013 , we maintained a level of overhead in our business to support higher sales expected in future periods . we obtained orders from a number of new customers and additional operating locations for existing customers during the second half of fiscal 2013 which resulted in higher overhead costs due to the upfront investment required to establish new programs . most programs become more profitable after they ramp up and we expect that trend to continue . selling and administrative ( `` s & a `` ) expense is presented excluding restatement and related expenses discussed below . s & a expense increased $ 0.2 million , and represents 9.6 % of sales in the fourth quarter of fiscal 2013 , compared to 9.7 % of sales in the same quarter of the prior fiscal year . the increase in s & a expense for the fourth quarter of fiscal 2013 was primarily increased wage and related expenses . the net increase in wage and related expenses was due to increased medical insurance costs partially offset by decreases resulting from changes in the company 's organizational structure made during the second quarter of the current fiscal year . during the fourth quarter of fiscal 2013 , we recorded impairment charges of $ 14.2 million relating to our scb reporting unit . $ 11.8 million of the impairment charge relates to goodwill and $ 2.4 million relates to a customer relationship intangible asset . the impairment analysis and resulting charges are due to slower than anticipated growth and poor operating performance at scb , as well as market uncertainties and strategic changes made by the company as more particularly discussed in note 6  intangible assets and note 7  goodwill to the consolidated financial statements included in this form 10-k. while the strategic change to direct future military & aerospace revenue growth to our albuquerque reporting unit contributed to an impairment for our scb reporting unit , it is intended to improve overall profitability for the consolidated company . although uncertainties in the military & aerospace market sector will likely continue , the majority of our military & aerospace customers participate in complex , advanced technology programs including unmanned vehicles , space defense and space exploration , which we expect to be continued over the long term . restatement and related expenses of $ 0.6 million in the fourth quarter of fiscal 2013 represent third party legal and accounting fees directly attributable to the restatement as well as other matters arising from the restatement including those more fully described in note 17-litigation to the accompanying consolidated financial statements . we anticipate elevated levels of legal expenses due to the restatement and other matters ( including the now formal sec investigation and consolidated shareholder class action ) for the foreseeable future . interest expense increased $ 0.2 million compared to the same quarter of the prior fiscal year . iec 's average outstanding debt balances increased to $ 35.3 million for the fourth quarter of fiscal 2013 from $ 28.4 million for the same quarter of the prior fiscal year . average borrowings in the fourth quarter of fiscal 2013 were higher than the fourth quarter of the prior fiscal year primarily due to increased borrowings on the revolver to fund operations . the weighted average interest rate on iec 's debt , excluding the impact of the interest rate swap , was 0.05 % higher than in the fourth quarter of the prior fiscal year . interest expense in the fourth quarter of fiscal 2013 was also impacted by covenant waiver fees . detailed information regarding our borrowings , including a summary of modifications in the fourth amended and restated credit facility agreement , is provided in note 8 - credit facilities to the consolidated financial statements included in this form 10-k. the benefit from income taxes was $ 5.0 million for the fourth quarter of fiscal 2013 as compared to provision for income taxes of $ 0.7 million for the fourth quarter of the prior fiscal year . the decrease is the result of a decrease in pretax loss in fiscal 2013 and a higher effective tax rate . our effective tax rate for the fourth quarter of fiscal 2013 is 36.6 % compared to 31 % in fiscal 2012. our federal statutory rate of 34 % was increased by the benefit from state income tax as well as increases in state tax credits , partially offset by an adjustment to deferred tax assets resulting from an irs audit . with respect to tax payments , in the near term iec expects to be sheltered by sizable net operating loss ( “ nol ” ) carryforwards for federal and new york state income tax purposes . at the end of fiscal 2013 , the carryforwards amounted to approximately $ 16.2 million and $ 26.1 million for federal and new york state , respectively . the carryforwards expire in varying amounts between 2021 and 2025 unless utilized prior to these dates . 19 years ended september 30 , 2013 and 2012 a summary of selected income statement amounts for the fiscal years ended follows : replace_table_token_5_th as more fully described in note 2  restatement of consolidated financial statements to the consolidated financial statements included in this form 10-k , the company has restated its financial statements for the three month period and year ended september 30 , 2012. a summary of sales , according to the market sector within which iec 's customers operate , follows : replace_table_token_6_th revenue decreased compared to the prior fiscal year by $ 4.0 million or 2.8 % . revenue decreases in the industrial , medical and communications & other market sectors were partially offset by increased revenue in the military & aerospace market sector of $ 9.0 million . revenue for the industrial market sector decreased $ 7.3 million primarily due to decreases in demand from two customers . story_separator_special_tag in preparing financial statements , management is required to ( i ) determine the manner in which accounting principles are applied and ( ii ) make estimates and assumptions that affect the reported amounts of assets , liabilities , revenue and expenses . a discussion of the company 's critical accounting policies follows . revenue recognition : under fasb asc 605-10 ( revenue recognition ) , revenue from sales is recognized when ( i ) goods are shipped or title and risk of ownership have passed , ( ii ) the price to the buyer is fixed or determinable , and ( iii ) realization is reasonably assured . service revenues are generally recognized as services are rendered or , in the case of material management contracts , in proportion to materials procured to date . provisions for discounts and rebates to customers , estimated returns and allowances and other adjustments are recorded in the period the related sales are recognized . doubtful accounts : fasb asc 310-10-35 ( receivables ) requires us to establish an allowance for doubtful accounts when it is probable that losses have been incurred in the collection of accounts receivable and the amount of loss can reasonably be estimated . if losses are probable and estimable , they are to be accrued even though the particular customer accounts on which losses will be incurred can not yet be identified . inventory reserves : fasb asc 330-10-35 ( inventory ) requires us to reduce the carrying value of inventory when there is evidence that the utility of goods will be less than cost , whether due to physical deterioration , obsolescence , changes in price levels or other causes . inventory balances are generally reduced to the lower of cost or market value by establishing offsetting balance sheet reserves . intangible assets : fasb asc 805-20 ( business combinations ) requires corporate acquirers to recognize , separately from goodwill , intangible assets that meet either a separability or contractual-legal criterion . establishing the initial value for such intangible assets typically involves estimating cash flows to be derived from the assets and discounting the cash flows back to the acquisition date . significant judgment is required in estimating future cash flows , selecting discount rates and determining useful lives over which to amortize the assets . in connection with recent corporate acquisitions , iec has established intangible assets for customer relationships , a property-tax abatement , and a non-compete agreement . during the fourth quarter of fiscal 2013 , we recorded an impairment charge of $ 2.4 million related to scb 's customer relationships . the impairment analysis and resulting charge is further discussed in note 6  intangible assets to the consolidated financial statements included in this form 10-k. goodwill : goodwill represents the excess of cost over fair value of net assets acquired in a corporate acquisition . under asc 350 , goodwill is not amortized but is required to be reviewed for impairment at least annually or when events or circumstances indicate that carrying value may exceed fair value . the review process entails comparing the overall fair value of the unit to which goodwill relates to carrying value . if fair value exceeds carrying value , no goodwill write-down is required . if fair value of the unit is less than carrying value , a valuation of the unit 's individual assets and liabilities is required to determine whether or not goodwill is impaired . quantitative evaluations of goodwill may be avoided if qualitative assessments indicate a greater-than-50 percent likelihood that fair value of the corresponding unit exceeds its carrying value . during the fourth quarter of fiscal 2013 , we recorded an impairment charge of $ 11.8 million related to scb 's goodwill . the impairment analysis and resulting charge is further discussed in note 7  goodwill to the consolidated financial statements included in this form 10-k. derivative financial instruments : we actively monitor exposure to interest rate risk and from time to time use derivative financial instruments to manage the impact of this risk . we use derivatives only for purposes of managing risk associated with underlying exposures . we do not trade or use instruments with the objective of earning financial gains on the interest rate , nor do we use derivative instruments where we do not have underlying exposures . we manage our hedging position and monitor the credit ratings of counterparties and do not anticipate losses due to counterparty nonperformance . we believe our use of derivative instruments to manage risk is in the company 's best interest . however , our use of derivative financial instruments may result in short-term gains or losses and increased earnings volatility . our derivative instruments are recorded in the consolidated balance sheets at fair value in other assets or other long-term liabilities . impairment of long-lived assets : fasb asc 360-10 ( property , plant and equipment ) and 350-30 ( intangibles ) require the company to test long-lived assets ( pp & e and amortizing intangible assets ) for recoverability whenever events or circumstances indicate that the carrying amount may not be recoverable . if carrying value exceeds undiscounted future cash flows attributable to an asset , it is considered impaired and carrying amount must be reduced to fair value . 24 legal contingencies : when legal proceedings are brought or claims are made against us and the outcome is uncertain , fasb asc 450-10 ( contingencies ) requires that we accrue an estimated loss if it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated . any such accruals are charged to earnings . disclosure of a contingency is required if there is at least a reasonable possibility that a loss will be incurred . in determining whether to accrue or disclose a loss , we evaluate , among other factors , the

