further , as a result of the decrease in electronic materials volumes , precious metals sales decreased 56.7 % from 2011 , or 58.5 % of the overall decrease in sales in 2012. across our segments , changes in product prices and mix accounted for approximately 8 % of sales decline , lower sales volumes reduced sales by approximately 8 % and changes in foreign currency exchange rates reduced sales an additional 2 % . gross profit gross profit decreased 27.7 % in 2012 to $ 297.9 million , compared with $ 412.2 million in 2011. the most significant driver was the performance of the electronic materials segment , which accounted for approximately 80 % of the total decline . weakness in europe also contributed to the reduction in gross profit , particularly in the color and glass performance materials , performance coatings and polymer additives segments . gross profit percentage declined to 16.8 % of net sales from 19.1 % of net sales in 2011. selling , general and administrative expense selling , general and administrative ( sg & a ) expenses were $ 302.7 million in 2012 and $ 335.3 million in 2011 , $ 32.7 million lower in 2012 compared with 2011 ; however , as a percentage of net sales , sg & a expenses increased 1.5 % to 17.1 % in 2012 , compared with 15.6 % in 2011. the most significant driver of the decline in sg & a expenses in 2012 was the change in accounting principle that was elected during the third quarter of 2012 , under which we now recognize actuarial gains and losses on our defined benefit pension and other postretirement benefit plans in the year in which the gains or losses occur . also contributing to the reduction from 2011 were favorable foreign currency exchange impacts , reduced depreciation and amortization expense , and lower stock-based compensation expense driven by certain personnel actions during the year . partially offsetting the favorability were increased severance costs , higher bad debt expense , and increased costs related to an initiative to streamline and standardize business processes and improve management information systems tools . the following represent the components with significant changes between 2012 and 2011 : replace_table_token_5_th nm  not meaningful restructuring and impairment charges replace_table_token_6_th nm  not meaningful 22 restructuring and impairment charges increased significantly in 2012 compared with 2011. the primary driver of the impairment charges taken against goodwill and property , plant and equipment in the current year was the decline in profitability of our solar pastes business and the related impact on the forecast for electronic materials . in addition to the impacts related to electronic materials , we continued to aggressively liquidate our portfolio of real estate related to idled facilities that is classified as held for sale , which drove incremental impairment charges during the year . our idled facilities are principally located in europe , which continued to experience difficult economic conditions . idled assets in france , the netherlands and the u.s. were sold in 2012. the restructuring charges incurred in 2012 primarily related to our performance coatings business in europe and the disposal of the leased corporate aircraft . interest expense interest expense in 2012 did not change significantly from 2011. the components of interest expense are as follows : replace_table_token_7_th income tax expense in 2012 , income tax expense was $ 109.5 million , while in the prior year , we recorded income tax expense of $ 19.3 million . the current year tax expense was driven by a $ 182.7 million charge to increase the valuation allowances to more accurately measure the portion of the deferred tax assets that more likely than not will be realized , a $ 4.1 million charge related to the expiration of certain tax credits , and the tax impact of the goodwill impairment . the prior year expense was also affected by an $ 11.3 million charge to increase the valuation allowances related to deferred tax assets . comparison of the years ended december 31 , 2011 and 2010 for the year ended december 31 , 2011 , ferro net income was $ 5.1 million , compared with net income of $ 15.4 million in 2010. for the year ended december 31 , 2011 , ferro net income attributable to common shareholders was $ 4.2 million , or $ 0.05 per share , reflecting $ 0.2 million of preferred stock dividends , compared with ferro net income attributable to common shareholders of $ 13.2 million , or $ 0.15 per share , reflecting $ 0.7 million of preferred stock dividends , in 2010. net sales replace_table_token_8_th 23 net sales increased by 2.6 % in the year ended december 31 , 2011 , compared with the prior year . changes in product prices and mix , together with changes in foreign currency exchange rates , were the primary drivers of the increased sales . increased sales of precious metals , driven by higher prices for silver , also contributed to the overall sales growth . lower sales volume had a negative effect on sales , particularly in the electronic materials segment . the lower sales volume also was the result of decisions we made in 2010 to exit certain markets served by the color and glass performance materials and electronic materials segments . for the year , changes in product prices and mix accounted for approximately 10 % of sales growth , and changes in foreign currency exchange rates contributed an additional 2 % to higher sales . lower sales volume reduced sales by approximately 9 % . higher precious metal prices contributed approximately 1 % to the overall sales increase during the year , including effects from changes in volume and prices of the precious metals . gross profit gross profit declined during 2011 primarily as a result of reduced sales volume of conductive pastes used in solar cell applications . story_separator_special_tag cash flows from operating activities decreased $ 145.6 million from 2010 to 2011. cash flows declined $ 68.0 million from decreases in accrued expenses , primarily from the payment of 2010 year-end incentive compensation . the return of precious metal deposits provided $ 28.1 million in 2011 and $ 84.3 million in 2010 due to additional credit lines not requiring collateral . adjustments to reconcile net income to cash provided by operating activities include noncash losses on extinguishment of debt , depreciation and amortization , and deferred income taxes , as well as payments toward retirement benefits greater than the expenses recognized . the net positive effects of adjustments for these items declined by $ 27.8 million from 2010 to 2011. partially offsetting these decreases was an improvement of $ 10.3 million in net income as a result of reduced restructuring and impairment charges , reduced losses on extinguishment of debt and lower interest expense . investing activities . capital expenditures decreased $ 14.0 million from 2011 to 2012 and increased $ 28.0 million from 2010 to 2011. in 2010 , we continued capital spending on manufacturing rationalization programs , but we made a concerted effort to defer or scale back new projects in order to conserve cash during a period of reduced customer demand associated with the global economic downturn . in 2011 , our capital spending increased to support a higher level of business activity and also included certain deferred projects . in 2012 , we again deferred or scaled back new projects in response to another period of reduced customer demand . in 2012 , we received proceeds of $ 3.0 million from the sale of assets , primarily property , plant and equipment in toccoa , georgia ; uden , netherlands ; and limoges , france . in 2011 , we received proceeds of $ 6.4 million from the sale of assets , primarily property , plant and equipment in australia and our former corporate headquarters in cleveland , ohio . in 2010 , we received proceeds of $ 11.4 million from the sale of assets and businesses , primarily property , plant and equipment in the netherlands and our business operations in precious metal preparations in asia . financing activities . in 2011 , we entered into several international programs to sell with recourse trade accounts receivable to financial institutions . advances under these programs are accounted for as borrowings 31 secured by the receivables . we also redeemed in cash all outstanding series a preferred stock for $ 9.4 million . in 2010 , we entered into a $ 350.0 million multi-currency senior revolving credit facility , maturing in 2015. we also issued $ 250.0 million of 7.875 % senior notes in a high yield bond offering , repurchased $ 136.7 million of our 6.50 % convertible senior notes through a tender offer and subsequent market purchases , and repaid all outstanding term loans totaling $ 231.4 million and our revolving credit line of a net $ 1.7 million associated with the 2009 amended and restated credit facility . we had net proceeds from all credit facilities of $ 34.8 million in 2012 and $ 15.6 million in 2011 , for a net increase in 2012 of $ 19.2 million in our rate of borrowing . in 2010 , we had net repayments of $ 144.3 million , for a net increase in 2011 of $ 159.9 million in our rate of borrowing . in 2010 , we paid $ 5.7 million to issue the 7.875 % senior notes and $ 4.1 million to enter into our 2010 credit facility . we have paid no dividends on our common stock since 2009. dividends paid on our preferred stock totaled $ 0.2 million in 2011 and $ 0.7 million in 2010. story_separator_special_tag href= `` https : //www.sec.gov/archives/edgar/data/0000035214/000119312513090626/ # toc `` > financing activities . the purchasers have no recourse to ferro 's other assets for failure of payment of the receivables as a result of the lack of creditworthiness , or financial inability to pay , of the related obligor . in may 2012 , we extended the maturity of this credit facility through may 2013. at december 31 , 2012 , we had borrowed $ 40.0 million under this facility . after reductions for non-qualifying receivables , we had $ 9.0 million of additional borrowings available under the program at december 31 , 2012. at december 31 , 2012 , the interest rate was 0.6 % . international receivable sales programs we have several international programs to sell with recourse trade accounts receivable to financial institutions . advances received under these programs are accounted for as borrowings secured by the receivables and included in net cash provided by financing activities . at december 31 , 2012 , the commitments supporting these programs totaled $ 18.5 million , the advances received of $ 6.1 million were secured by $ 9.3 million of accounts receivable , and no additional borrowings were available under the programs . the interest rates under these programs are based on euribor rates plus 1.75 % . at december 31 , 2012 , the weighted-average interest rate was 1.9 % . off balance sheet arrangements consignment and customer arrangements for precious metals . we use precious metals , primarily silver , in the production of some of our products . we obtain most precious metals from financial institutions under consignment agreements ( generally referred to as our precious metals consignment program ) . the financial institutions retain ownership of the precious metals and charge us fees based on the amounts we consign and the period of consignment . these fees were $ 6.5 million for 2012. at december 31 , 2012 , we had on hand precious metals owned by participants in our precious metals consignment program of $ 112.2 million , measured at fair value based on market prices for identical assets and net of credits . we also process precious

capital resources and liquidity major debt instruments that were outstanding during 2012 are described below . 7.875 % senior notes in 2010 , we issued $ 250 million of 7.875 % senior notes due 2018 ( the senior notes ) . we used portions of the proceeds from the offering to repay all of the remaining term loans and revolving borrowings outstanding under a credit facility originally entered into in 2006 and as amended and restated through november 2009 ( the 2009 amended and restated credit facility ) . we also used portions of the proceeds from the offering to repurchase the 6.50 % convertible senior notes that were tendered pursuant to a related tender offer . the senior notes were issued at par and bear interest at a rate of 7.875 % per year , payable semi-annually in arrears on february 15 and august 15 of each year . the senior notes mature on august 15 , 2018 , and are unsecured . the principal amount outstanding was $ 250.0 million at december 31 , 2012. at december 31 , 2012 , we were in compliance with the covenants under the senior notes ' indenture . 6.50 % convertible senior notes in 2008 , ferro issued $ 172.5 million of 6.50 % convertible senior notes due 2013 ( the convertible notes ) . the convertible notes bear interest at a rate of 6.5 % per year , payable semi-annually in arrears on february 15 and august 15 of each year . the convertible notes mature on august 15 , 2013. in 2010 , we purchased $ 136.7 million of the convertible notes through a tender offer or on the open market . in 2011 , we purchased an additional $ 0.7 million of the convertible notes on the open market . in connection with these transactions , we recognized losses on extinguishment of debt of $ 13.1 million in 2010 and less than $ 0.1 million in 2011 , consisting of unamortized debt issuance costs and the difference between the carrying value and the fair value of these notes .


 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 and liquidity major debt instruments that were outstanding during 2012 are described below . 7.875 % senior notes in 2010 , we issued $ 250 million of 7.875 % senior notes due 2018 ( the senior notes ) . we used portions of the proceeds from the offering to repay all of the remaining term loans and revolving borrowings outstanding under a credit facility originally entered into in 2006 and as amended and restated through november 2009 ( the 2009 amended and restated credit facility ) . we also used portions of the proceeds from the offering to repurchase the 6.50 % convertible senior notes that were tendered pursuant to a related tender offer . the senior notes were issued at par and bear interest at a rate of 7.875 % per year , payable semi-annually in arrears on february 15 and august 15 of each year . the senior notes mature on august 15 , 2018 , and are unsecured . the principal amount outstanding was $ 250.0 million at december 31 , 2012. at december 31 , 2012 , we were in compliance with the covenants under the senior notes ' indenture . 6.50 % convertible senior notes in 2008 , ferro issued $ 172.5 million of 6.50 % convertible senior notes due 2013 ( the convertible notes ) . the convertible notes bear interest at a rate of 6.5 % per year , payable semi-annually in arrears on february 15 and august 15 of each year . the convertible notes mature on august 15 , 2013. in 2010 , we purchased $ 136.7 million of the convertible notes through a tender offer or on the open market . in 2011 , we purchased an additional $ 0.7 million of the convertible notes on the open market . in connection with these transactions , we recognized losses on extinguishment of debt of $ 13.1 million in 2010 and less than $ 0.1 million in 2011 , consisting of unamortized debt issuance costs and the difference between the carrying value and the fair value of these notes .
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 Suspicious Activity Report : further , as a result of the decrease in electronic materials volumes , precious metals sales decreased 56.7 % from 2011 , or 58.5 % of the overall decrease in sales in 2012. across our segments , changes in product prices and mix accounted for approximately 8 % of sales decline , lower sales volumes reduced sales by approximately 8 % and changes in foreign currency exchange rates reduced sales an additional 2 % . gross profit gross profit decreased 27.7 % in 2012 to $ 297.9 million , compared with $ 412.2 million in 2011. the most significant driver was the performance of the electronic materials segment , which accounted for approximately 80 % of the total decline . weakness in europe also contributed to the reduction in gross profit , particularly in the color and glass performance materials , performance coatings and polymer additives segments . gross profit percentage declined to 16.8 % of net sales from 19.1 % of net sales in 2011. selling , general and administrative expense selling , general and administrative ( sg & a ) expenses were $ 302.7 million in 2012 and $ 335.3 million in 2011 , $ 32.7 million lower in 2012 compared with 2011 ; however , as a percentage of net sales , sg & a expenses increased 1.5 % to 17.1 % in 2012 , compared with 15.6 % in 2011. the most significant driver of the decline in sg & a expenses in 2012 was the change in accounting principle that was elected during the third quarter of 2012 , under which we now recognize actuarial gains and losses on our defined benefit pension and other postretirement benefit plans in the year in which the gains or losses occur . also contributing to the reduction from 2011 were favorable foreign currency exchange impacts , reduced depreciation and amortization expense , and lower stock-based compensation expense driven by certain personnel actions during the year . partially offsetting the favorability were increased severance costs , higher bad debt expense , and increased costs related to an initiative to streamline and standardize business processes and improve management information systems tools . the following represent the components with significant changes between 2012 and 2011 : replace_table_token_5_th nm  not meaningful restructuring and impairment charges replace_table_token_6_th nm  not meaningful 22 restructuring and impairment charges increased significantly in 2012 compared with 2011. the primary driver of the impairment charges taken against goodwill and property , plant and equipment in the current year was the decline in profitability of our solar pastes business and the related impact on the forecast for electronic materials . in addition to the impacts related to electronic materials , we continued to aggressively liquidate our portfolio of real estate related to idled facilities that is classified as held for sale , which drove incremental impairment charges during the year . our idled facilities are principally located in europe , which continued to experience difficult economic conditions . idled assets in france , the netherlands and the u.s. were sold in 2012. the restructuring charges incurred in 2012 primarily related to our performance coatings business in europe and the disposal of the leased corporate aircraft . interest expense interest expense in 2012 did not change significantly from 2011. the components of interest expense are as follows : replace_table_token_7_th income tax expense in 2012 , income tax expense was $ 109.5 million , while in the prior year , we recorded income tax expense of $ 19.3 million . the current year tax expense was driven by a $ 182.7 million charge to increase the valuation allowances to more accurately measure the portion of the deferred tax assets that more likely than not will be realized , a $ 4.1 million charge related to the expiration of certain tax credits , and the tax impact of the goodwill impairment . the prior year expense was also affected by an $ 11.3 million charge to increase the valuation allowances related to deferred tax assets . comparison of the years ended december 31 , 2011 and 2010 for the year ended december 31 , 2011 , ferro net income was $ 5.1 million , compared with net income of $ 15.4 million in 2010. for the year ended december 31 , 2011 , ferro net income attributable to common shareholders was $ 4.2 million , or $ 0.05 per share , reflecting $ 0.2 million of preferred stock dividends , compared with ferro net income attributable to common shareholders of $ 13.2 million , or $ 0.15 per share , reflecting $ 0.7 million of preferred stock dividends , in 2010. net sales replace_table_token_8_th 23 net sales increased by 2.6 % in the year ended december 31 , 2011 , compared with the prior year . changes in product prices and mix , together with changes in foreign currency exchange rates , were the primary drivers of the increased sales . increased sales of precious metals , driven by higher prices for silver , also contributed to the overall sales growth . lower sales volume had a negative effect on sales , particularly in the electronic materials segment . the lower sales volume also was the result of decisions we made in 2010 to exit certain markets served by the color and glass performance materials and electronic materials segments . for the year , changes in product prices and mix accounted for approximately 10 % of sales growth , and changes in foreign currency exchange rates contributed an additional 2 % to higher sales . lower sales volume reduced sales by approximately 9 % . higher precious metal prices contributed approximately 1 % to the overall sales increase during the year , including effects from changes in volume and prices of the precious metals . gross profit gross profit declined during 2011 primarily as a result of reduced sales volume of conductive pastes used in solar cell applications . story_separator_special_tag cash flows from operating activities decreased $ 145.6 million from 2010 to 2011. cash flows declined $ 68.0 million from decreases in accrued expenses , primarily from the payment of 2010 year-end incentive compensation . the return of precious metal deposits provided $ 28.1 million in 2011 and $ 84.3 million in 2010 due to additional credit lines not requiring collateral . adjustments to reconcile net income to cash provided by operating activities include noncash losses on extinguishment of debt , depreciation and amortization , and deferred income taxes , as well as payments toward retirement benefits greater than the expenses recognized . the net positive effects of adjustments for these items declined by $ 27.8 million from 2010 to 2011. partially offsetting these decreases was an improvement of $ 10.3 million in net income as a result of reduced restructuring and impairment charges , reduced losses on extinguishment of debt and lower interest expense . investing activities . capital expenditures decreased $ 14.0 million from 2011 to 2012 and increased $ 28.0 million from 2010 to 2011. in 2010 , we continued capital spending on manufacturing rationalization programs , but we made a concerted effort to defer or scale back new projects in order to conserve cash during a period of reduced customer demand associated with the global economic downturn . in 2011 , our capital spending increased to support a higher level of business activity and also included certain deferred projects . in 2012 , we again deferred or scaled back new projects in response to another period of reduced customer demand . in 2012 , we received proceeds of $ 3.0 million from the sale of assets , primarily property , plant and equipment in toccoa , georgia ; uden , netherlands ; and limoges , france . in 2011 , we received proceeds of $ 6.4 million from the sale of assets , primarily property , plant and equipment in australia and our former corporate headquarters in cleveland , ohio . in 2010 , we received proceeds of $ 11.4 million from the sale of assets and businesses , primarily property , plant and equipment in the netherlands and our business operations in precious metal preparations in asia . financing activities . in 2011 , we entered into several international programs to sell with recourse trade accounts receivable to financial institutions . advances under these programs are accounted for as borrowings 31 secured by the receivables . we also redeemed in cash all outstanding series a preferred stock for $ 9.4 million . in 2010 , we entered into a $ 350.0 million multi-currency senior revolving credit facility , maturing in 2015. we also issued $ 250.0 million of 7.875 % senior notes in a high yield bond offering , repurchased $ 136.7 million of our 6.50 % convertible senior notes through a tender offer and subsequent market purchases , and repaid all outstanding term loans totaling $ 231.4 million and our revolving credit line of a net $ 1.7 million associated with the 2009 amended and restated credit facility . we had net proceeds from all credit facilities of $ 34.8 million in 2012 and $ 15.6 million in 2011 , for a net increase in 2012 of $ 19.2 million in our rate of borrowing . in 2010 , we had net repayments of $ 144.3 million , for a net increase in 2011 of $ 159.9 million in our rate of borrowing . in 2010 , we paid $ 5.7 million to issue the 7.875 % senior notes and $ 4.1 million to enter into our 2010 credit facility . we have paid no dividends on our common stock since 2009. dividends paid on our preferred stock totaled $ 0.2 million in 2011 and $ 0.7 million in 2010. story_separator_special_tag href= `` https : //www.sec.gov/archives/edgar/data/0000035214/000119312513090626/ # toc `` > financing activities . the purchasers have no recourse to ferro 's other assets for failure of payment of the receivables as a result of the lack of creditworthiness , or financial inability to pay , of the related obligor . in may 2012 , we extended the maturity of this credit facility through may 2013. at december 31 , 2012 , we had borrowed $ 40.0 million under this facility . after reductions for non-qualifying receivables , we had $ 9.0 million of additional borrowings available under the program at december 31 , 2012. at december 31 , 2012 , the interest rate was 0.6 % . international receivable sales programs we have several international programs to sell with recourse trade accounts receivable to financial institutions . advances received under these programs are accounted for as borrowings secured by the receivables and included in net cash provided by financing activities . at december 31 , 2012 , the commitments supporting these programs totaled $ 18.5 million , the advances received of $ 6.1 million were secured by $ 9.3 million of accounts receivable , and no additional borrowings were available under the programs . the interest rates under these programs are based on euribor rates plus 1.75 % . at december 31 , 2012 , the weighted-average interest rate was 1.9 % . off balance sheet arrangements consignment and customer arrangements for precious metals . we use precious metals , primarily silver , in the production of some of our products . we obtain most precious metals from financial institutions under consignment agreements ( generally referred to as our precious metals consignment program ) . the financial institutions retain ownership of the precious metals and charge us fees based on the amounts we consign and the period of consignment . these fees were $ 6.5 million for 2012. at december 31 , 2012 , we had on hand precious metals owned by participants in our precious metals consignment program of $ 112.2 million , measured at fair value based on market prices for identical assets and net of credits . we also process precious

