we are making progress resolving many of these issues as we begin to take advantage of the system 's capabilities . the new erp system is designed to provide us with the ability to access reliable , transparent , real-time data , allowing us to meet the technology requirements of state-of-the-art distribution and packaging centers . in november 2011 , we entered into a lease for a new , state-of-the art packaging and distribution center in mccook , illinois . this new facility will consolidate operations currently performed in our illinois locations . the new facility is designed to specifically meet our distribution needs and will incorporate upgraded technology and increased space . we anticipate the combined operations will streamline our distribution logistics and reduce our cost structure . the facility 's close proximity to a major freight hub will provide us more time to process orders and expand our next-day delivery capabilities . in conjunction with closing the des plaines facility , we plan to relocate our corporate headquarters to a location approximately three miles from our current location . we anticipate these moves will be completed in the second half of 2012. our new erp system is also allowing us to make progress on our sales channel transformation initiatives . we have been investing in the design and development of a new ecommerce website , which we expect to introduce to our customers in the first half of 2012. with the launch of our new website , our customers will have access to an integrated sales channel , allowing them to research products and prices and to place orders on a 24/7 basis . this improvement should help us capture a portion of our customers ' unplanned purchases . also , during 2011 , we amended our existing $ 55.0 million dollar credit facility , extending the term until october , 2016 and improving pricing . we also amended financial covenants , giving us the flexibility to better implement our strategic initiatives and further invest in our business . during 2011 , we continued to distribute a quarterly cash dividend of $ 0.12 per share , representing a dividend yield of 3.1 % based on our december 31 , 2011 stock price . we ended the year with $ 2.1 million of cash and no outstanding borrowings . we believe our existing cash-on-hand and our untapped credit facility provide us with the capital resources to make the necessary investments to continue the transformation of our business and allow us to pursue future growth opportunities . 18 summary of financial performance replace_table_token_7_th 19 results of operations for 2011 as compared to 2010 net sales and gross profit sales and gross profit results for the years ended december 31 , 2011 and 2010 were as follows : replace_table_token_8_th net sales for 2011 decreased 0.6 % to $ 315.0 million from $ 316.8 million in 2010 on one less selling day . excluding the canadian exchange rate impact , net sales decreased 1.0 % for the year . mro net sales decreased $ 2.7 million or 0.9 % in 2011 to $ 300.4 million from $ 303.1 million in 2010. the decrease was largely due to certain challenges we encountered following the launch of our erp system which caused delays in our supply chain and fulfillment processes leading to a build-up of backorders and lost sales in the second half of the year . for the year , average mro daily sales were $ 1.197 million in 2011 compared to $ 1.203 million in 2010. in the first half of 2011 , prior to the erp launch our average mro daily sales were $ 1.259 million , up 7.5 % over 2010 levels . immediately after the launch in august , we saw average mro daily sales drop as we encountered the issues described above . as we have worked to resolve these challenges , average daily sales have begun to recover as shown in the table below . ( all amounts for 2011 ) : replace_table_token_9_th oem net sales increased $ 0.9 million or 6.7 % in 2011 to $ 14.6 million from $ 13.6 million in 2010. overall gross profit decreased 7.7 % in 2011 to $ 179.8 million from $ 194.8 million in 2010. as a percent of sales , gross profit margin decreased to 57.1 % in 2011 compared to 61.5 % in 2010. mro gross profit decreased 8.1 % in 2011 to $ 176.9 million from $ 192.5 million in 2010. as a percent of net sales , mro gross profit margin decreased to 58.9 % in 2011 from 63.5 % in 2010. this decline was driven by four main factors : ( 1 ) increased vendor costs were not passed along to our customers as we held pricing constant to facilitate our erp implementation ; ( 2 ) outbound freight 20 costs increased as we shipped more single line orders to support our customers following the erp conversion ; ( 3 ) increased labor costs associated with the packaging of inventory ; and ( 4 ) a strategic decision to pursue larger customers with lower margins , which is expected to increase retention and allow for dollar margin expansion over time . we also encountered a deterioration of mro gross margins subsequent to our erp conversion . mro gross margins for the first , second , third and fourth quarters of 2011 were 62.2 % , 59.1 % , 58.4 % and 55.3 % , respectively . story_separator_special_tag such amounts are adjusted , as appropriate , to reflect changes in enacted tax rates expected to be in effect when the temporary differences reverse . a valuation allowance is established to offset any deferred tax assets if , based upon the available evidence , it is more likely than not that some or all of the deferred tax assets will not be realized . the determination of the amount of a valuation allowance to be provided on recorded deferred tax assets involves estimates regarding ( 1 ) the timing and amount of the reversal of taxable temporary differences , ( 2 ) expected future taxable income , ( 3 ) the impact of tax planning strategies and ( 4 ) the ability to carry back deferred tax assets to offset prior taxable income . in assessing the need for a valuation allowance , we consider all available positive and negative evidence , including past operating results , projections of future taxable income and the feasibility of ongoing tax planning strategies . the projections of future taxable income include a number of estimates and assumptions regarding our volume , pricing and costs . additionally , valuation allowances related to deferred tax assets can be impacted by changes to tax laws . significant judgment is required in determining income tax provisions as well as deferred tax asset and liability balances , including the estimation of valuation allowances and the evaluation of tax positions . we recognize the benefit of tax positions when a benefit is more likely than not ( i.e . , greater than 50 % likely ) to be sustained on its technical merits . recognized tax benefits are measured at the largest amount that is more likely than not to be sustained , based on cumulative probability , in final settlement of the position . we recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense . goodwill impairment  goodwill , all of which is included in our mro segment , is tested annually during the fourth quarter , or when events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value . impairment of goodwill is evaluated using a two-step process . first the fair value of the reporting unit is compared with its carrying amount , including goodwill . if the fair value of the reporting unit exceeds its carrying amount , goodwill of the reporting unit is not considered impaired , and thus , the second step of the impairment test is unnecessary . if the carrying amount of the reporting unit exceeds its fair value , the second step of the goodwill impairment test is performed to measure the amount of impairment loss , if any . we estimate the fair value of the mro segment using a market approach , which relies on the market value of companies that are engaged in the same line of business . we also prepare a discounted cash flow ( dcf ) analysis based on our operating plan to determine a range of fair values . the dcf model relies on a number of assumptions that have a significant effect on the resulting fair value calculation and may change in future periods . estimated future cash flows are affected both by future economic conditions outside the control of management and operating results directly related to management 's execution of our business strategy . our dcf model is also affected by our estimate of a discount rate that is consistent with the weighted average cost of capital that we anticipate a potential market participant would use . 27 we then assess the reasonableness of our estimate of the fair value of the mro segment . this is done by applying the same valuation methodology and estimates described above to the entire company and reconciling the resulting estimated fair value of the consolidated company to its market capitalization based on the trading range of the company 's stock near the measurement date . currently , the calculated fair value of the mro segment exceeds its carrying value by $ 38 million and , therefore , is not considered impaired . changes in the assumptions used in our dcf calculation could have a material effect on the fair value estimate and could change our assessment of impairment . a hypothetical 10 % decrease in the estimated future annual cash flows generated by the mro segment would decrease its estimated fair value by approximately $ 9 million . a hypothetical 100 basis point increase in the discount rate would decrease its estimated fair value by approximately $ 15 million . item 7a . q uantitative and qualitative disclosures about market risk . one of our subsidiaries is located and operates in canada using the canadian dollar as its functional currency . operating results are translated into u.s. dollars when consolidated into our financial statements . therefore , we are exposed to market risk relating to the change in the value of the canadian dollar relative to the u.s. dollar . a hypothetical 10 % change in the canadian foreign currency exchange rate would have affected our 2011 net sales by $ 3.0 million and net assets by $ 1.7 million . certain compensation awards have been granted to our directors , officers and key employees that are payable in cash , based upon the market price of our common stock . these awards are re-measured each reporting period and the effect of the change in the share price is reflected in our operating results . a hypothetical 10 % change in the price of our common stock on december 31 , 2011 would have affected our 2011 operating income by $ 0.2 million . a number of our current and past employees have opted to defer a portion of their earned compensation to be paid at a future date . these individuals

liquidity and capital resources cash used in operating activities was $ 22.9 million in 2011 compared to cash provided by operations of $ 11.3 million and $ 10.6 million in 2010 and 2009 , respectively . in 2011 , cash was primarily used to support increased levels of accounts receivable and inventory . the increase in inventory was attributable to erp issues which negatively affected our procurement process and service level to customers . these issues also led to delays in the collection of our receivables . we are making progress resolving these issues and anticipate a return to more normalized receivable and inventory levels during 2012. in 2010 , cash was primarily generated from operating income and proceeds received from the sale of acs and rutland . in 2009 , cash was primarily generated through the streamlining of working capital by reducing excess inventories and increased collection of accounts receivable . cash from operations was net of $ 10.0 million in settlement payments in 2010 and 2009 , respectively . cash used to purchase property , plant and equipment was $ 11.1 million , $ 10.0 million and $ 2.7 million in 2011 , 2010 and 2009 , respectively . purchases included $ 5.9 million and $ 6.5 million for the new erp system in 2011 and 2010 , respectively . our 2011 capital outlays also included $ 1.6 million towards the construction of our new mccook packaging and distribution center and $ 0.8 million related to the redevelopment of our web-site .


 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 cash used in operating activities was $ 22.9 million in 2011 compared to cash provided by operations of $ 11.3 million and $ 10.6 million in 2010 and 2009 , respectively . in 2011 , cash was primarily used to support increased levels of accounts receivable and inventory . the increase in inventory was attributable to erp issues which negatively affected our procurement process and service level to customers . these issues also led to delays in the collection of our receivables . we are making progress resolving these issues and anticipate a return to more normalized receivable and inventory levels during 2012. in 2010 , cash was primarily generated from operating income and proceeds received from the sale of acs and rutland . in 2009 , cash was primarily generated through the streamlining of working capital by reducing excess inventories and increased collection of accounts receivable . cash from operations was net of $ 10.0 million in settlement payments in 2010 and 2009 , respectively . cash used to purchase property , plant and equipment was $ 11.1 million , $ 10.0 million and $ 2.7 million in 2011 , 2010 and 2009 , respectively . purchases included $ 5.9 million and $ 6.5 million for the new erp system in 2011 and 2010 , respectively . our 2011 capital outlays also included $ 1.6 million towards the construction of our new mccook packaging and distribution center and $ 0.8 million related to the redevelopment of our web-site .
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 Suspicious Activity Report : we are making progress resolving many of these issues as we begin to take advantage of the system 's capabilities . the new erp system is designed to provide us with the ability to access reliable , transparent , real-time data , allowing us to meet the technology requirements of state-of-the-art distribution and packaging centers . in november 2011 , we entered into a lease for a new , state-of-the art packaging and distribution center in mccook , illinois . this new facility will consolidate operations currently performed in our illinois locations . the new facility is designed to specifically meet our distribution needs and will incorporate upgraded technology and increased space . we anticipate the combined operations will streamline our distribution logistics and reduce our cost structure . the facility 's close proximity to a major freight hub will provide us more time to process orders and expand our next-day delivery capabilities . in conjunction with closing the des plaines facility , we plan to relocate our corporate headquarters to a location approximately three miles from our current location . we anticipate these moves will be completed in the second half of 2012. our new erp system is also allowing us to make progress on our sales channel transformation initiatives . we have been investing in the design and development of a new ecommerce website , which we expect to introduce to our customers in the first half of 2012. with the launch of our new website , our customers will have access to an integrated sales channel , allowing them to research products and prices and to place orders on a 24/7 basis . this improvement should help us capture a portion of our customers ' unplanned purchases . also , during 2011 , we amended our existing $ 55.0 million dollar credit facility , extending the term until october , 2016 and improving pricing . we also amended financial covenants , giving us the flexibility to better implement our strategic initiatives and further invest in our business . during 2011 , we continued to distribute a quarterly cash dividend of $ 0.12 per share , representing a dividend yield of 3.1 % based on our december 31 , 2011 stock price . we ended the year with $ 2.1 million of cash and no outstanding borrowings . we believe our existing cash-on-hand and our untapped credit facility provide us with the capital resources to make the necessary investments to continue the transformation of our business and allow us to pursue future growth opportunities . 18 summary of financial performance replace_table_token_7_th 19 results of operations for 2011 as compared to 2010 net sales and gross profit sales and gross profit results for the years ended december 31 , 2011 and 2010 were as follows : replace_table_token_8_th net sales for 2011 decreased 0.6 % to $ 315.0 million from $ 316.8 million in 2010 on one less selling day . excluding the canadian exchange rate impact , net sales decreased 1.0 % for the year . mro net sales decreased $ 2.7 million or 0.9 % in 2011 to $ 300.4 million from $ 303.1 million in 2010. the decrease was largely due to certain challenges we encountered following the launch of our erp system which caused delays in our supply chain and fulfillment processes leading to a build-up of backorders and lost sales in the second half of the year . for the year , average mro daily sales were $ 1.197 million in 2011 compared to $ 1.203 million in 2010. in the first half of 2011 , prior to the erp launch our average mro daily sales were $ 1.259 million , up 7.5 % over 2010 levels . immediately after the launch in august , we saw average mro daily sales drop as we encountered the issues described above . as we have worked to resolve these challenges , average daily sales have begun to recover as shown in the table below . ( all amounts for 2011 ) : replace_table_token_9_th oem net sales increased $ 0.9 million or 6.7 % in 2011 to $ 14.6 million from $ 13.6 million in 2010. overall gross profit decreased 7.7 % in 2011 to $ 179.8 million from $ 194.8 million in 2010. as a percent of sales , gross profit margin decreased to 57.1 % in 2011 compared to 61.5 % in 2010. mro gross profit decreased 8.1 % in 2011 to $ 176.9 million from $ 192.5 million in 2010. as a percent of net sales , mro gross profit margin decreased to 58.9 % in 2011 from 63.5 % in 2010. this decline was driven by four main factors : ( 1 ) increased vendor costs were not passed along to our customers as we held pricing constant to facilitate our erp implementation ; ( 2 ) outbound freight 20 costs increased as we shipped more single line orders to support our customers following the erp conversion ; ( 3 ) increased labor costs associated with the packaging of inventory ; and ( 4 ) a strategic decision to pursue larger customers with lower margins , which is expected to increase retention and allow for dollar margin expansion over time . we also encountered a deterioration of mro gross margins subsequent to our erp conversion . mro gross margins for the first , second , third and fourth quarters of 2011 were 62.2 % , 59.1 % , 58.4 % and 55.3 % , respectively . story_separator_special_tag such amounts are adjusted , as appropriate , to reflect changes in enacted tax rates expected to be in effect when the temporary differences reverse . a valuation allowance is established to offset any deferred tax assets if , based upon the available evidence , it is more likely than not that some or all of the deferred tax assets will not be realized . the determination of the amount of a valuation allowance to be provided on recorded deferred tax assets involves estimates regarding ( 1 ) the timing and amount of the reversal of taxable temporary differences , ( 2 ) expected future taxable income , ( 3 ) the impact of tax planning strategies and ( 4 ) the ability to carry back deferred tax assets to offset prior taxable income . in assessing the need for a valuation allowance , we consider all available positive and negative evidence , including past operating results , projections of future taxable income and the feasibility of ongoing tax planning strategies . the projections of future taxable income include a number of estimates and assumptions regarding our volume , pricing and costs . additionally , valuation allowances related to deferred tax assets can be impacted by changes to tax laws . significant judgment is required in determining income tax provisions as well as deferred tax asset and liability balances , including the estimation of valuation allowances and the evaluation of tax positions . we recognize the benefit of tax positions when a benefit is more likely than not ( i.e . , greater than 50 % likely ) to be sustained on its technical merits . recognized tax benefits are measured at the largest amount that is more likely than not to be sustained , based on cumulative probability , in final settlement of the position . we recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense . goodwill impairment  goodwill , all of which is included in our mro segment , is tested annually during the fourth quarter , or when events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value . impairment of goodwill is evaluated using a two-step process . first the fair value of the reporting unit is compared with its carrying amount , including goodwill . if the fair value of the reporting unit exceeds its carrying amount , goodwill of the reporting unit is not considered impaired , and thus , the second step of the impairment test is unnecessary . if the carrying amount of the reporting unit exceeds its fair value , the second step of the goodwill impairment test is performed to measure the amount of impairment loss , if any . we estimate the fair value of the mro segment using a market approach , which relies on the market value of companies that are engaged in the same line of business . we also prepare a discounted cash flow ( dcf ) analysis based on our operating plan to determine a range of fair values . the dcf model relies on a number of assumptions that have a significant effect on the resulting fair value calculation and may change in future periods . estimated future cash flows are affected both by future economic conditions outside the control of management and operating results directly related to management 's execution of our business strategy . our dcf model is also affected by our estimate of a discount rate that is consistent with the weighted average cost of capital that we anticipate a potential market participant would use . 27 we then assess the reasonableness of our estimate of the fair value of the mro segment . this is done by applying the same valuation methodology and estimates described above to the entire company and reconciling the resulting estimated fair value of the consolidated company to its market capitalization based on the trading range of the company 's stock near the measurement date . currently , the calculated fair value of the mro segment exceeds its carrying value by $ 38 million and , therefore , is not considered impaired . changes in the assumptions used in our dcf calculation could have a material effect on the fair value estimate and could change our assessment of impairment . a hypothetical 10 % decrease in the estimated future annual cash flows generated by the mro segment would decrease its estimated fair value by approximately $ 9 million . a hypothetical 100 basis point increase in the discount rate would decrease its estimated fair value by approximately $ 15 million . item 7a . q uantitative and qualitative disclosures about market risk . one of our subsidiaries is located and operates in canada using the canadian dollar as its functional currency . operating results are translated into u.s. dollars when consolidated into our financial statements . therefore , we are exposed to market risk relating to the change in the value of the canadian dollar relative to the u.s. dollar . a hypothetical 10 % change in the canadian foreign currency exchange rate would have affected our 2011 net sales by $ 3.0 million and net assets by $ 1.7 million . certain compensation awards have been granted to our directors , officers and key employees that are payable in cash , based upon the market price of our common stock . these awards are re-measured each reporting period and the effect of the change in the share price is reflected in our operating results . a hypothetical 10 % change in the price of our common stock on december 31 , 2011 would have affected our 2011 operating income by $ 0.2 million . a number of our current and past employees have opted to defer a portion of their earned compensation to be paid at a future date . these individuals

