net of the impact of the spread , adjusted ebitda at ecrc was $ 143.8 million in 2012 compared to $ 128.0 million in 2011. net loss was $ 16.2 million , or $ 0.50 per diluted share in 2012 compared to net income of $ 90.9 million , or $ 2.81 per diluted share in 2011. earnings per share were negatively impacted by certain items aggregating approximately $ 0.30 per diluted share in 2012 and $ 0.31 per diluted share in 2011. in addition , the impact in the change of our deferred tax asset valuation allowance increased our diluted loss per share by $ 0.95 in 2012 and increased our diluted earnings per share by $ 0.54 in 2011. cash provided by operating activities increased $ 81.6 million to $ 146.3 million in 2012 compared to $ 64.8 million in 2011. results of operations factors affecting our results of operations raw materials and product mix . our results of operations are directly affected by the cost of raw materials . we use butadiene , styrene , and isoprene as our primary raw materials in manufacturing our products . on a fifo basis , these monomers together represented approximately $ 732.9 million , $ 658.9 million and $ 515.9 million or 61.5 % , 58.8 % and 55.6 % of our total cost of goods sold for the years ended december 31 , 2012 , 2011and 2010 , respectively . since the cost of our three primary raw materials comprise a significant amount of our total cost of goods sold , our selling prices for our products and therefore our total sales revenue is impacted by movements in our raw material costs , as well as the cost of other inputs . in addition , product mix can have an impact on our overall unit selling prices , since we provide an extensive product offering and therefore experience a wide range of unit selling prices . the cost of these monomers has generally correlated with changes in energy prices , supply and demand factors , and prices for natural and synthetic rubber . average butadiene purchase prices were lower during 2012 compared to 2011. average isoprene and styrene purchase prices were higher in 2012 compared to 2011 , with a more significant increase in isoprene prices . average butadiene , isoprene and styrene purchase prices were higher in 2011 compared to 2010 . 41 index to financial statements we use the fifo basis of accounting for inventory and cost of goods sold , and therefore gross profit . in periods of raw material price volatility , reported results under fifo will differ from what the results would have been if cost of goods sold were based on ecrc . specifically , in periods of rising raw material costs , reported gross profit will be higher under fifo than under ecrc . conversely , in periods of declining raw material costs , reported gross profit will be lower under fifo than under ecrc . in recognition of the fact that the cost of raw materials affects our results of operations and the comparability of our results of operations we provide the spread between fifo and ecrc . in 2012 , reported results under fifo were lower than results would have been on an ecrc basis by $ 30.5 million ; in 2011 , reported results under fifo were higher than results would have been on an ecrc basis by $ 66.3 million ; in 2010 , reported results under fifo were higher than results would have been on an ecrc basis by $ 12.1 million ; we currently anticipate that our gross profit will reflect a negative spread between fifo and ecrc of less than $ 3.0 million in the first quarter of 2013. this expectation is based on numerous complex and interrelated assumptions with respect to monomer costs , and ending inventory levels in the first quarter and the actual results may be significantly different based on first quarter results . international operations and currency fluctuations . we operate a geographically diverse business , serving customers in over 60 countries from five manufacturing facilities on four continents . although we sell and manufacture our products in many countries , our sales and production costs are mainly denominated in u.s. dollars , euro , japanese yen and brazilian real . from time to time , we use hedging strategies to reduce our exposure to currency fluctuations . we generated our sales revenue from customers located in the following regions : replace_table_token_13_th our financial results are subject to gains and losses on currency translations , which occur when the financial statements of foreign operations are translated into u.s. dollars . the financial statements of operations outside the united states where the local currency is considered to be the functional currency are translated into u.s. dollars using the exchange rate at each balance sheet date for assets and liabilities and the average exchange rate for each period for revenue , expenses , gains and losses , and cash flows . the effect of translating the balance sheet into u.s. dollars is included as a component of accumulated other comprehensive loss . any appreciation of the functional currencies against the u.s. dollar will increase the u.s. dollar equivalent of amounts of revenue , expenses , gains and losses , and cash flows , and any depreciation of the functional currencies will decrease the u.s. dollar amounts reported . our results of operations are also subject to currency transaction risk . we incur currency transaction risk when we enter into either a purchase or sale transaction using a currency other than the local currency of the transacting entity . story_separator_special_tag we review the allowance for doubtful accounts quarterly . account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote . we do not have any off-balance sheet credit exposure related to our customers . inventories . our inventory is principally comprised of finished goods inventory . inventories are stated at the lower of cost or market as primarily determined on a first-in , first-out basis . we evaluate the carrying cost of our inventory on a quarterly basis for this purpose . if the cost of the inventories exceeds their market value , provisions are made for the difference between the cost and the market value . property , plant and equipment . property , plant and equipment are recorded at cost . major renewals and improvements that extend the useful lives of equipment are capitalized . repair and maintenance costs are expensed as incurred . disposals are removed at carrying cost less accumulated depreciation with any resulting gain or loss reflected in earnings . we capitalize interest costs which are incurred as part of the cost of constructing major facilities and equipment . approximately $ 2.6 million , $ 2.3 million and $ 0.5 million of interest cost were capitalized in 2012 , 2011 and 2010 , respectively . depreciation is recognized using the straight-line method over the following estimated useful lives : machinery and equipment 20 years building and land improvements 20 years manufacturing control equipment 10 years office equipment 5 years research equipment and facilities 5 years vehicles 5 years computer hardware/information systems 3 years long-lived assets . in accordance with impairment or disposal of long-lived assets subsections of fasb asc subtopic 360-10 , property , plant , and equipmentoverall , ( fasb statement no . 144 , accounting for the impairment or disposal of long-lived assets ) , long-lived assets , such as property , plant , and equipment , and purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . if circumstances require a long-lived asset or asset group be tested for possible impairment , we first compare undiscounted cash flows expected to be generated by that asset or asset group to its carrying value . if the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis , impairment is recognized to the extent that the carrying value exceeds its fair value . fair value is determined through various valuation techniques including discounted cash flow models , quoted market values and third-party independent appraisals , as considered necessary . 48 index to financial statements asset retirement obligations ( aro ) . our aro consists of estimated costs of dismantlement , removal , site reclamation and similar activities associated with our facilities . we recognize the fair value of a liability for an aro in the period in which we have an existing legal obligation associated with the retirement of our facilities and the obligation can reasonably be estimated . the associated asset retirement cost is capitalized as part of the carrying cost of the asset . the recognition of an aro requires that management make numerous estimates , assumptions and judgments regarding such factors as the existence of a legal obligation for an aro ; estimated probabilities , amounts and timing of settlements ; the credit-adjusted risk-free rate to be used ; discount rate and inflation rates . in periods subsequent to initial measurement of the aro , we recognize changes in the liability resulting from the accretion of the liability to its non-discounted amount and revisions to either the timing or the amount of the original estimate of undiscounted cash flows . revisions also result in increases or decreases in the carrying cost of these assets . increases in the aro liability due to accretion is charged to depreciation and amortization expense . the related capitalized cost , including revisions thereto , is charged to depreciation and amortization expense . our aro totaled $ 9.8 million at december 31 , 2012 and $ 9.0 million at december 31 , 2011. see note 12 commitments and contingencies ( subsection ( c ) ) to the consolidated financial statements . contingencies . we are routinely involved in litigation , claims and disputes incidental to our business . professional judgment is required to classify the likelihood of these contingencies occurring . a contingency is categorized as probable , reasonably possible , or remote . a contingency is classified as probable if the future event or events are likely to occur . for the probable contingencies , a loss is accrued and disclosed as of the date of the financial statements if it is both probable that an asset has been impaired or a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated . a reasonably possible contingency occurs if the chance of the future event or events happening is more than remote but less than likely ( reasonably possible but not probable ) . we disclose the loss contingencies in the footnotes to the financial statements but do not recognize any liability . a remote contingency is one where the chance of the future event or events occurring is slight . we neither accrue for nor disclose the liability in the notes to the financial statements . share-based compensation . share-based compensation cost is measured at the grant date based on the fair value of the award . we recognize these costs using the straight-line method over the requisite service period . the kraton performance polymers , inc. 2009 equity incentive plan ( the equity plan ) allows for the grant to key employees , independent contractors , and eligible non-employee directors of incentive stock options , non-qualified stock options ( which together with

loss on extinguishment of debt in connection with the refinancing of our indebtedness in the first quarter of 2011 , we incurred a $ 3.0 million loss on the extinguishment of debt . interest expense , net interest expense , net decreased $ 0.6 million or 1.9 % to $ 29.3 million for the year ended december 31 , 2012 from $ 29.9 million for the year ended december 31 , 2011. the decrease was primarily due to charges aggregating $ 5.2 million associated with the debt refinancing in the first quarter of 2011 , partially offset by increased average debt balances . income tax expense our income tax expense was $ 19.3 million and $ 0.6 million for the years ended december 31 , 2012 and 2011 , respectively . our effective tax rate was 619.8 % and 0.6 % for the years ended december 31 , 2012 and 2011 , respectively . our effective tax rates differed from the u.s. corporate statutory tax rate of 35.0 % , primarily due to the mix of pre-tax income earned in foreign jurisdictions and our limited ability to utilize net operating loss carryforwards in certain jurisdictions , primarily in the united states . 44 index to financial statements we record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized . as of december 31 , 2012 and 2011 , a valuation allowance of $ 90.4 million and $ 54.2 million , respectively , has been provided for net operating loss carryforwards and other deferred tax assets . we increased our valuation allowance by $ 36.2 million in 2012 , of which $ 30.7 million represents current period net operating losses and a reversal of the benefit recorded for prior net operating losses and $ 5.5 million represents changes in other comprehensive income ( loss ) .


 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.
     ```loss on extinguishment of debt in connection with the refinancing of our indebtedness in the first quarter of 2011 , we incurred a $ 3.0 million loss on the extinguishment of debt . interest expense , net interest expense , net decreased $ 0.6 million or 1.9 % to $ 29.3 million for the year ended december 31 , 2012 from $ 29.9 million for the year ended december 31 , 2011. the decrease was primarily due to charges aggregating $ 5.2 million associated with the debt refinancing in the first quarter of 2011 , partially offset by increased average debt balances . income tax expense our income tax expense was $ 19.3 million and $ 0.6 million for the years ended december 31 , 2012 and 2011 , respectively . our effective tax rate was 619.8 % and 0.6 % for the years ended december 31 , 2012 and 2011 , respectively . our effective tax rates differed from the u.s. corporate statutory tax rate of 35.0 % , primarily due to the mix of pre-tax income earned in foreign jurisdictions and our limited ability to utilize net operating loss carryforwards in certain jurisdictions , primarily in the united states . 44 index to financial statements we record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized . as of december 31 , 2012 and 2011 , a valuation allowance of $ 90.4 million and $ 54.2 million , respectively , has been provided for net operating loss carryforwards and other deferred tax assets . we increased our valuation allowance by $ 36.2 million in 2012 , of which $ 30.7 million represents current period net operating losses and a reversal of the benefit recorded for prior net operating losses and $ 5.5 million represents changes in other comprehensive income ( loss ) .
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 Suspicious Activity Report : net of the impact of the spread , adjusted ebitda at ecrc was $ 143.8 million in 2012 compared to $ 128.0 million in 2011. net loss was $ 16.2 million , or $ 0.50 per diluted share in 2012 compared to net income of $ 90.9 million , or $ 2.81 per diluted share in 2011. earnings per share were negatively impacted by certain items aggregating approximately $ 0.30 per diluted share in 2012 and $ 0.31 per diluted share in 2011. in addition , the impact in the change of our deferred tax asset valuation allowance increased our diluted loss per share by $ 0.95 in 2012 and increased our diluted earnings per share by $ 0.54 in 2011. cash provided by operating activities increased $ 81.6 million to $ 146.3 million in 2012 compared to $ 64.8 million in 2011. results of operations factors affecting our results of operations raw materials and product mix . our results of operations are directly affected by the cost of raw materials . we use butadiene , styrene , and isoprene as our primary raw materials in manufacturing our products . on a fifo basis , these monomers together represented approximately $ 732.9 million , $ 658.9 million and $ 515.9 million or 61.5 % , 58.8 % and 55.6 % of our total cost of goods sold for the years ended december 31 , 2012 , 2011and 2010 , respectively . since the cost of our three primary raw materials comprise a significant amount of our total cost of goods sold , our selling prices for our products and therefore our total sales revenue is impacted by movements in our raw material costs , as well as the cost of other inputs . in addition , product mix can have an impact on our overall unit selling prices , since we provide an extensive product offering and therefore experience a wide range of unit selling prices . the cost of these monomers has generally correlated with changes in energy prices , supply and demand factors , and prices for natural and synthetic rubber . average butadiene purchase prices were lower during 2012 compared to 2011. average isoprene and styrene purchase prices were higher in 2012 compared to 2011 , with a more significant increase in isoprene prices . average butadiene , isoprene and styrene purchase prices were higher in 2011 compared to 2010 . 41 index to financial statements we use the fifo basis of accounting for inventory and cost of goods sold , and therefore gross profit . in periods of raw material price volatility , reported results under fifo will differ from what the results would have been if cost of goods sold were based on ecrc . specifically , in periods of rising raw material costs , reported gross profit will be higher under fifo than under ecrc . conversely , in periods of declining raw material costs , reported gross profit will be lower under fifo than under ecrc . in recognition of the fact that the cost of raw materials affects our results of operations and the comparability of our results of operations we provide the spread between fifo and ecrc . in 2012 , reported results under fifo were lower than results would have been on an ecrc basis by $ 30.5 million ; in 2011 , reported results under fifo were higher than results would have been on an ecrc basis by $ 66.3 million ; in 2010 , reported results under fifo were higher than results would have been on an ecrc basis by $ 12.1 million ; we currently anticipate that our gross profit will reflect a negative spread between fifo and ecrc of less than $ 3.0 million in the first quarter of 2013. this expectation is based on numerous complex and interrelated assumptions with respect to monomer costs , and ending inventory levels in the first quarter and the actual results may be significantly different based on first quarter results . international operations and currency fluctuations . we operate a geographically diverse business , serving customers in over 60 countries from five manufacturing facilities on four continents . although we sell and manufacture our products in many countries , our sales and production costs are mainly denominated in u.s. dollars , euro , japanese yen and brazilian real . from time to time , we use hedging strategies to reduce our exposure to currency fluctuations . we generated our sales revenue from customers located in the following regions : replace_table_token_13_th our financial results are subject to gains and losses on currency translations , which occur when the financial statements of foreign operations are translated into u.s. dollars . the financial statements of operations outside the united states where the local currency is considered to be the functional currency are translated into u.s. dollars using the exchange rate at each balance sheet date for assets and liabilities and the average exchange rate for each period for revenue , expenses , gains and losses , and cash flows . the effect of translating the balance sheet into u.s. dollars is included as a component of accumulated other comprehensive loss . any appreciation of the functional currencies against the u.s. dollar will increase the u.s. dollar equivalent of amounts of revenue , expenses , gains and losses , and cash flows , and any depreciation of the functional currencies will decrease the u.s. dollar amounts reported . our results of operations are also subject to currency transaction risk . we incur currency transaction risk when we enter into either a purchase or sale transaction using a currency other than the local currency of the transacting entity . story_separator_special_tag we review the allowance for doubtful accounts quarterly . account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote . we do not have any off-balance sheet credit exposure related to our customers . inventories . our inventory is principally comprised of finished goods inventory . inventories are stated at the lower of cost or market as primarily determined on a first-in , first-out basis . we evaluate the carrying cost of our inventory on a quarterly basis for this purpose . if the cost of the inventories exceeds their market value , provisions are made for the difference between the cost and the market value . property , plant and equipment . property , plant and equipment are recorded at cost . major renewals and improvements that extend the useful lives of equipment are capitalized . repair and maintenance costs are expensed as incurred . disposals are removed at carrying cost less accumulated depreciation with any resulting gain or loss reflected in earnings . we capitalize interest costs which are incurred as part of the cost of constructing major facilities and equipment . approximately $ 2.6 million , $ 2.3 million and $ 0.5 million of interest cost were capitalized in 2012 , 2011 and 2010 , respectively . depreciation is recognized using the straight-line method over the following estimated useful lives : machinery and equipment 20 years building and land improvements 20 years manufacturing control equipment 10 years office equipment 5 years research equipment and facilities 5 years vehicles 5 years computer hardware/information systems 3 years long-lived assets . in accordance with impairment or disposal of long-lived assets subsections of fasb asc subtopic 360-10 , property , plant , and equipmentoverall , ( fasb statement no . 144 , accounting for the impairment or disposal of long-lived assets ) , long-lived assets , such as property , plant , and equipment , and purchased intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . if circumstances require a long-lived asset or asset group be tested for possible impairment , we first compare undiscounted cash flows expected to be generated by that asset or asset group to its carrying value . if the carrying value of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis , impairment is recognized to the extent that the carrying value exceeds its fair value . fair value is determined through various valuation techniques including discounted cash flow models , quoted market values and third-party independent appraisals , as considered necessary . 48 index to financial statements asset retirement obligations ( aro ) . our aro consists of estimated costs of dismantlement , removal , site reclamation and similar activities associated with our facilities . we recognize the fair value of a liability for an aro in the period in which we have an existing legal obligation associated with the retirement of our facilities and the obligation can reasonably be estimated . the associated asset retirement cost is capitalized as part of the carrying cost of the asset . the recognition of an aro requires that management make numerous estimates , assumptions and judgments regarding such factors as the existence of a legal obligation for an aro ; estimated probabilities , amounts and timing of settlements ; the credit-adjusted risk-free rate to be used ; discount rate and inflation rates . in periods subsequent to initial measurement of the aro , we recognize changes in the liability resulting from the accretion of the liability to its non-discounted amount and revisions to either the timing or the amount of the original estimate of undiscounted cash flows . revisions also result in increases or decreases in the carrying cost of these assets . increases in the aro liability due to accretion is charged to depreciation and amortization expense . the related capitalized cost , including revisions thereto , is charged to depreciation and amortization expense . our aro totaled $ 9.8 million at december 31 , 2012 and $ 9.0 million at december 31 , 2011. see note 12 commitments and contingencies ( subsection ( c ) ) to the consolidated financial statements . contingencies . we are routinely involved in litigation , claims and disputes incidental to our business . professional judgment is required to classify the likelihood of these contingencies occurring . a contingency is categorized as probable , reasonably possible , or remote . a contingency is classified as probable if the future event or events are likely to occur . for the probable contingencies , a loss is accrued and disclosed as of the date of the financial statements if it is both probable that an asset has been impaired or a liability has been incurred at the date of the financial statements and the amount of loss can be reasonably estimated . a reasonably possible contingency occurs if the chance of the future event or events happening is more than remote but less than likely ( reasonably possible but not probable ) . we disclose the loss contingencies in the footnotes to the financial statements but do not recognize any liability . a remote contingency is one where the chance of the future event or events occurring is slight . we neither accrue for nor disclose the liability in the notes to the financial statements . share-based compensation . share-based compensation cost is measured at the grant date based on the fair value of the award . we recognize these costs using the straight-line method over the requisite service period . the kraton performance polymers , inc. 2009 equity incentive plan ( the equity plan ) allows for the grant to key employees , independent contractors , and eligible non-employee directors of incentive stock options , non-qualified stock options ( which together with

