we continue to focus on our four key initiatives designed to allow us to drive profitable growth and to maximize value for shareholders , and thus better position ourselves to operate successfully in the current and future business environment . these four initiatives are : improving the consolidated operating margin . we continue to aggressively manage our cost structure and drive operating efficiencies which are expected to generate improving operating margins . we have already implemented significant actions to reduce costs during the last two years to manage challenging industry-wide preclinical market conditions . these actions have favorably impacted our margins in 2011. in the fourth quarter of 2011 , we implemented a headcount reduction of approximately 2 % , primarily in the preclinical services ( pcs ) business . this action is expected to generate annual savings of approximately $ 7.5 million beginning in 2012. improving free cash flow generation . we believe we have adequate capacity to support revenue growth in both business segments without significant additional investment for expansion . improved operating margins , elimination of operating losses with the sale of our phase i clinical business in 2011 and the closure of our pcs china facility in 2011 , and minimal requirements for capital expansion , should contribute to strong cash flow generation . we expect capital expenditures to be approximately $ 50 million in 2012 . 29 disciplined investment in growth businesses . we continue to maintain a disciplined focus on deployment of capital , investing in those areas of our existing business which will generate the greatest sales growth and profitability , such as genetically engineered models and services ( gems ) , discovery services ( ds ) , in vitro products and biopharmaceutical services . returning value to shareholders . we are repurchasing our stock with the intent to drive immediate shareholder value and earnings per share accretion . during 2011 , we repurchased 8.4 million shares . our weighted average shares outstanding for 2011 has decreased to 51.3 million shares from 62.6 million shares for 2010. as of december 31 , 2011 , we had $ 116.3 million remaining on our $ 750.0 million stock repurchase authorization . total net sales in 2011 were $ 1,142.6 million , an increase of 0.8 % from $ 1,133.4 million in 2010. the sales increase was due primarily to increased sales for rms partially offset by lower pcs sales . the effect of foreign currency translation had a positive impact on sales of 2.2 % . due to the timing of our fiscal year end , we periodically recognize a `` 53rd week `` in a fiscal year . the 53 rd week in 2011 contributed approximately 1.0 % to reported 2011 sales . our gross margin increased to 35.2 % of net sales in 2011 compared to 33.9 % of net sales in 2010 , due primarily to cost savings actions and the impact of increased rms sales . our operating income was $ 174.3 million for 2011 compared to an operating loss of $ 298.5 million for 2010. income from continuing operations , net of tax , was $ 115.5 million for 2011 compared to an operating loss of $ 334.1 million for 2010. the increase in operating income was primarily due to prior year items which include a goodwill impairment , asset impairments and the $ 30.0 million acquisition termination fee . for 2011 , diluted earnings per share attributable to common shareowners was $ 2.14 compared to a diluted loss per share of $ 5.38 in 2010. our capital expenditures totaled $ 49.1 million for 2011 , compared to $ 42.9 million for 2010. our planned capital expenditures in 2012 are approximately $ 50.0 million . net income attributable to common shareowners was $ 109.6 million in 2011 , compared to a net loss of $ 336.7 million in 2010. we report two segments : research models and services ( rms ) and preclinical services ( pcs ) , which reflects the manner in which our operating units are managed . our rms segment , which represented 61.7 % of net sales in 2011 , includes three categories : production of research models , research model services , and other products . research model services include four business units : genetically engineered models and services ( gems ) , research animal diagnostics ( rads ) , discovery services ( ds ) , and insourcing solutions ( is ) . other products includes our in vitro business and avian vaccine services . net sales for the rms segment increased 5.8 % compared to 2010 , primarily driven by higher sales of other products and research model services . the effect of foreign currency translation has a positive impact on sales of 2.7 % . we experienced increases in both the rms gross margin , to 42.1 % from 41.7 % , and operating margin to 29.2 % from 27.7 % last year , due mainly to the impact of cost savings and our fixed cost leverage with increased sales . our pcs segment , which represented 38.3 % of net sales in 2011 , includes services required to take a drug through the development process including discovery support , safety assessment and biopharmaceutical services . sales for this segment decreased 6.3 % from 2010 , driven by slower demand for preclinical services partially offset by favorable foreign currency , which increased sales growth by 1.5 % . we experienced an increase in the pcs gross margin to 24.0 % from 22.8 % in 2010 , due mainly to impairments in 2010 and cost savings in 2011 partially offset by the impact of sales mix and continued pricing pressure . story_separator_special_tag 33 as of december 31 , 2011 , earnings of non-u.s. subsidiaries considered to be indefinitely reinvested totaled $ 106.5 million . no provision for u.s. income taxes has been provided thereon . upon distribution of those earnings in the form of dividends or otherwise , we would be subject to both u.s. federal and state taxes and withholding taxes payable to the various foreign countries . it is our policy to indefinitely reinvest the earnings of our non-u.s. subsidiaries unless they can be repatriated in a manner that generates a tax benefit or an unforeseen cash need arises in the united states and the earnings can be repatriated in a manner that is substantially free of income taxes . it is not practicable to estimate the amount of additional income taxes payable on the earnings that are indefinitely reinvested in foreign operations . we are a worldwide business and operate in various tax jurisdictions where tax laws and tax rates are subject to change given the political and economic climate in these countries . we report and pay income taxes based upon operational results and applicable law . our current and deferred tax provision is based upon enacted tax rates in effect for the current and future periods . any significant fluctuation in tax rates or changes in tax laws and regulations or changes to interpretation of existing tax laws and regulations could cause our estimate of taxes to change resulting in either increases or decreases in our effective tax rate . we recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the tax position . the tax benefits recognized in our financial statements from such positions are measured based upon the largest benefit that has a greater than 50 % likelihood of being realized upon ultimate resolution . due to our size and the number of tax jurisdictions within which we conduct our global business operations , we are subject to income tax audits on a regular basis . as a result , we have tax reserves which are attributable to potential tax obligations around the world . we believe we have sufficiently provided for all audit exposures and assessments . resolutions of these audits or the expiration of the statute of limitations on the assessment of income taxes for any tax year may result in an increase or decrease to our effective tax rate . results of operations the following table summarizes historical results of operations as a percentage of net sales for the periods shown : replace_table_token_5_th 34 segment operations the following tables show the net sales and the percentage contribution of each of our reportable segments for the past three years . they also show cost of products sold and services provided , selling , general and administrative expenses , amortization of goodwill and intangibles and operating income by segment and as percentages of their respective segment net sales . replace_table_token_6_th 35 replace_table_token_7_th in our consolidated statements of income , we provide a breakdown of net sales and cost of sales between net products and services . such information is reported irrespective of the business segment from which the sales were generated . fiscal 2011 compared to fiscal 2010 net sales . net sales for the year ending december 31 , 2011 were $ 1,142.6 million , an increase of $ 9.2 million , or 0.8 % , from $ 1,133 million for the year ending december 25 , 2010 , due primarily to increased sales for rms and favorable foreign currency translation of 2.2 % partially offset by lower pcs sales . research models and services . for the year ending december 31 , 2011 , net sales for our rms segment were $ 705.4 million , an increase of $ 38.4 million , or 5.8 % , from $ 667.0 million for the year ending december 25 , 2010 , due primarily to higher other product sales , which include our avian and in vitro businesses , as well as research model services . the effect of favorable foreign currency translation increased sales by 2.7 % . preclinical services . for the year ending december 31 , 2011 , net sales for our pcs segment were $ 437.2 million , a decrease of $ 29.2 million , or 6.3 % , from $ 466.4 million for the year ending december 25 , 2010. the sales decrease was driven by reduced biopharmaceutical spending , which resulted in lower demand for our services and a shift in study mix , offset by favorable foreign currency translation of 1.5 % . cost of products sold and services provided . cost of products sold and services provided during 2011 was $ 740.4 million , a decrease of $ 8.3 million , or 1.1 % , from $ 748.7 million during 2010. cost of products sold and services provided during the year ending december 31 , 2011 was 64.8 % of net sales , compared to 66.1 % during the year ending december 25 , 2010. research models and services . cost of products sold and services provided for rms during 2011 was $ 408.1 million , an increase of $ 19.5 million , or 5.0 % , compared to $ 388.6 million in 2010. cost of products sold and services provided for the year ending december 31 , 2011 decreased to 57.9 % of net sales compared to 58.3 % of net sales for the year ending december 25 , 2010. the decrease in cost as a percentage of sales was due primarily to the impact of our cost-savings actions partially 36 offset by the large model inventory write-off . preclinical services . cost of services provided for the pcs segment during 2011 was $ 332.3 million , a decrease of $ 27.7 million , compared to $ 360.1 million

liquidity and capital resources the following discussion analyzes liquidity and capital resources by operating , investing and financing activities as presented in our consolidated statements of cash flows . our principal sources of liquidity have been our cash flow from operations , our marketable securities and our revolving line of credit arrangements . on december 25 , 2010 , we had a $ 750 million credit agreement , which had a maturity date of august 26 , 2015 and provided for a $ 230 million term loan , a 133.8 million euro term loan and a $ 350 million revolving credit facility . on february 24 , 2011 , we amended the credit agreement , primarily to provide for an incremental $ 150 million term loan and to modify the leverage ratio used in calculating the interest rate applicable to amounts outstanding . on september 23 , 2011 , we amended and restated the credit agreement primarily to reduce the interest rate margin applicable to the term loans and the revolving loans based on our leverage ratio and extend the maturity date by approximately one year to september 2016. the current credit agreement provides for a $ 299.8 million term loan , a 69.4 million euro term loan and a $ 350 million revolving credit facility . under specified circumstances , we have the ability to increase the term loans and or revolving line of credit by up to $ 250 million in the aggregate . the term loans mature in 20 quarterly installments with the last installment due september 23 , 2016. the $ 350 million revolving facility also matures on september 23 , 2016 and requires no scheduled payment before that date . the book value of our term and revolving loans approximates fair value .


 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 following discussion analyzes liquidity and capital resources by operating , investing and financing activities as presented in our consolidated statements of cash flows . our principal sources of liquidity have been our cash flow from operations , our marketable securities and our revolving line of credit arrangements . on december 25 , 2010 , we had a $ 750 million credit agreement , which had a maturity date of august 26 , 2015 and provided for a $ 230 million term loan , a 133.8 million euro term loan and a $ 350 million revolving credit facility . on february 24 , 2011 , we amended the credit agreement , primarily to provide for an incremental $ 150 million term loan and to modify the leverage ratio used in calculating the interest rate applicable to amounts outstanding . on september 23 , 2011 , we amended and restated the credit agreement primarily to reduce the interest rate margin applicable to the term loans and the revolving loans based on our leverage ratio and extend the maturity date by approximately one year to september 2016. the current credit agreement provides for a $ 299.8 million term loan , a 69.4 million euro term loan and a $ 350 million revolving credit facility . under specified circumstances , we have the ability to increase the term loans and or revolving line of credit by up to $ 250 million in the aggregate . the term loans mature in 20 quarterly installments with the last installment due september 23 , 2016. the $ 350 million revolving facility also matures on september 23 , 2016 and requires no scheduled payment before that date . the book value of our term and revolving loans approximates fair value .
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 Suspicious Activity Report : we continue to focus on our four key initiatives designed to allow us to drive profitable growth and to maximize value for shareholders , and thus better position ourselves to operate successfully in the current and future business environment . these four initiatives are : improving the consolidated operating margin . we continue to aggressively manage our cost structure and drive operating efficiencies which are expected to generate improving operating margins . we have already implemented significant actions to reduce costs during the last two years to manage challenging industry-wide preclinical market conditions . these actions have favorably impacted our margins in 2011. in the fourth quarter of 2011 , we implemented a headcount reduction of approximately 2 % , primarily in the preclinical services ( pcs ) business . this action is expected to generate annual savings of approximately $ 7.5 million beginning in 2012. improving free cash flow generation . we believe we have adequate capacity to support revenue growth in both business segments without significant additional investment for expansion . improved operating margins , elimination of operating losses with the sale of our phase i clinical business in 2011 and the closure of our pcs china facility in 2011 , and minimal requirements for capital expansion , should contribute to strong cash flow generation . we expect capital expenditures to be approximately $ 50 million in 2012 . 29 disciplined investment in growth businesses . we continue to maintain a disciplined focus on deployment of capital , investing in those areas of our existing business which will generate the greatest sales growth and profitability , such as genetically engineered models and services ( gems ) , discovery services ( ds ) , in vitro products and biopharmaceutical services . returning value to shareholders . we are repurchasing our stock with the intent to drive immediate shareholder value and earnings per share accretion . during 2011 , we repurchased 8.4 million shares . our weighted average shares outstanding for 2011 has decreased to 51.3 million shares from 62.6 million shares for 2010. as of december 31 , 2011 , we had $ 116.3 million remaining on our $ 750.0 million stock repurchase authorization . total net sales in 2011 were $ 1,142.6 million , an increase of 0.8 % from $ 1,133.4 million in 2010. the sales increase was due primarily to increased sales for rms partially offset by lower pcs sales . the effect of foreign currency translation had a positive impact on sales of 2.2 % . due to the timing of our fiscal year end , we periodically recognize a `` 53rd week `` in a fiscal year . the 53 rd week in 2011 contributed approximately 1.0 % to reported 2011 sales . our gross margin increased to 35.2 % of net sales in 2011 compared to 33.9 % of net sales in 2010 , due primarily to cost savings actions and the impact of increased rms sales . our operating income was $ 174.3 million for 2011 compared to an operating loss of $ 298.5 million for 2010. income from continuing operations , net of tax , was $ 115.5 million for 2011 compared to an operating loss of $ 334.1 million for 2010. the increase in operating income was primarily due to prior year items which include a goodwill impairment , asset impairments and the $ 30.0 million acquisition termination fee . for 2011 , diluted earnings per share attributable to common shareowners was $ 2.14 compared to a diluted loss per share of $ 5.38 in 2010. our capital expenditures totaled $ 49.1 million for 2011 , compared to $ 42.9 million for 2010. our planned capital expenditures in 2012 are approximately $ 50.0 million . net income attributable to common shareowners was $ 109.6 million in 2011 , compared to a net loss of $ 336.7 million in 2010. we report two segments : research models and services ( rms ) and preclinical services ( pcs ) , which reflects the manner in which our operating units are managed . our rms segment , which represented 61.7 % of net sales in 2011 , includes three categories : production of research models , research model services , and other products . research model services include four business units : genetically engineered models and services ( gems ) , research animal diagnostics ( rads ) , discovery services ( ds ) , and insourcing solutions ( is ) . other products includes our in vitro business and avian vaccine services . net sales for the rms segment increased 5.8 % compared to 2010 , primarily driven by higher sales of other products and research model services . the effect of foreign currency translation has a positive impact on sales of 2.7 % . we experienced increases in both the rms gross margin , to 42.1 % from 41.7 % , and operating margin to 29.2 % from 27.7 % last year , due mainly to the impact of cost savings and our fixed cost leverage with increased sales . our pcs segment , which represented 38.3 % of net sales in 2011 , includes services required to take a drug through the development process including discovery support , safety assessment and biopharmaceutical services . sales for this segment decreased 6.3 % from 2010 , driven by slower demand for preclinical services partially offset by favorable foreign currency , which increased sales growth by 1.5 % . we experienced an increase in the pcs gross margin to 24.0 % from 22.8 % in 2010 , due mainly to impairments in 2010 and cost savings in 2011 partially offset by the impact of sales mix and continued pricing pressure . story_separator_special_tag 33 as of december 31 , 2011 , earnings of non-u.s. subsidiaries considered to be indefinitely reinvested totaled $ 106.5 million . no provision for u.s. income taxes has been provided thereon . upon distribution of those earnings in the form of dividends or otherwise , we would be subject to both u.s. federal and state taxes and withholding taxes payable to the various foreign countries . it is our policy to indefinitely reinvest the earnings of our non-u.s. subsidiaries unless they can be repatriated in a manner that generates a tax benefit or an unforeseen cash need arises in the united states and the earnings can be repatriated in a manner that is substantially free of income taxes . it is not practicable to estimate the amount of additional income taxes payable on the earnings that are indefinitely reinvested in foreign operations . we are a worldwide business and operate in various tax jurisdictions where tax laws and tax rates are subject to change given the political and economic climate in these countries . we report and pay income taxes based upon operational results and applicable law . our current and deferred tax provision is based upon enacted tax rates in effect for the current and future periods . any significant fluctuation in tax rates or changes in tax laws and regulations or changes to interpretation of existing tax laws and regulations could cause our estimate of taxes to change resulting in either increases or decreases in our effective tax rate . we recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the tax position . the tax benefits recognized in our financial statements from such positions are measured based upon the largest benefit that has a greater than 50 % likelihood of being realized upon ultimate resolution . due to our size and the number of tax jurisdictions within which we conduct our global business operations , we are subject to income tax audits on a regular basis . as a result , we have tax reserves which are attributable to potential tax obligations around the world . we believe we have sufficiently provided for all audit exposures and assessments . resolutions of these audits or the expiration of the statute of limitations on the assessment of income taxes for any tax year may result in an increase or decrease to our effective tax rate . results of operations the following table summarizes historical results of operations as a percentage of net sales for the periods shown : replace_table_token_5_th 34 segment operations the following tables show the net sales and the percentage contribution of each of our reportable segments for the past three years . they also show cost of products sold and services provided , selling , general and administrative expenses , amortization of goodwill and intangibles and operating income by segment and as percentages of their respective segment net sales . replace_table_token_6_th 35 replace_table_token_7_th in our consolidated statements of income , we provide a breakdown of net sales and cost of sales between net products and services . such information is reported irrespective of the business segment from which the sales were generated . fiscal 2011 compared to fiscal 2010 net sales . net sales for the year ending december 31 , 2011 were $ 1,142.6 million , an increase of $ 9.2 million , or 0.8 % , from $ 1,133 million for the year ending december 25 , 2010 , due primarily to increased sales for rms and favorable foreign currency translation of 2.2 % partially offset by lower pcs sales . research models and services . for the year ending december 31 , 2011 , net sales for our rms segment were $ 705.4 million , an increase of $ 38.4 million , or 5.8 % , from $ 667.0 million for the year ending december 25 , 2010 , due primarily to higher other product sales , which include our avian and in vitro businesses , as well as research model services . the effect of favorable foreign currency translation increased sales by 2.7 % . preclinical services . for the year ending december 31 , 2011 , net sales for our pcs segment were $ 437.2 million , a decrease of $ 29.2 million , or 6.3 % , from $ 466.4 million for the year ending december 25 , 2010. the sales decrease was driven by reduced biopharmaceutical spending , which resulted in lower demand for our services and a shift in study mix , offset by favorable foreign currency translation of 1.5 % . cost of products sold and services provided . cost of products sold and services provided during 2011 was $ 740.4 million , a decrease of $ 8.3 million , or 1.1 % , from $ 748.7 million during 2010. cost of products sold and services provided during the year ending december 31 , 2011 was 64.8 % of net sales , compared to 66.1 % during the year ending december 25 , 2010. research models and services . cost of products sold and services provided for rms during 2011 was $ 408.1 million , an increase of $ 19.5 million , or 5.0 % , compared to $ 388.6 million in 2010. cost of products sold and services provided for the year ending december 31 , 2011 decreased to 57.9 % of net sales compared to 58.3 % of net sales for the year ending december 25 , 2010. the decrease in cost as a percentage of sales was due primarily to the impact of our cost-savings actions partially 36 offset by the large model inventory write-off . preclinical services . cost of services provided for the pcs segment during 2011 was $ 332.3 million , a decrease of $ 27.7 million , compared to $ 360.1 million

