foreign currency translation rate changes decreased sales $ 6.3 million , or about 5 percent , compared to sales in 2012. excluding foreign currency translation , sales in latin america grew by about 9 percent during 2013. most of the sales growth in latin america occurred in brazil , and most of the growth in brazil came from continued growth in demand for the line of 4 inch groundwater pumps and motors that the company launched in brazil two years ago . in total , sales in brazil grew organically by 21 percent excluding foreign exchange . water systems sales in the middle east and africa were about 12 percent of consolidated sales and increased by about 3 percent compared to 2012. water systems sales in the middle east and africa were reduced by $ 7.2 million or about 6 percent in the year due to foreign currency translation . excluding acquisitions and the impact of foreign currency translation , sales were up about 9 percent compared to 2012. sales in the gulf region increased by about 17 percent as the governments in both saudi arabia and the uae are supporting investments in groundwater based irrigation projects . sales in turkey increased by about 10 percent as growing demand for the value line of impo branded groundwater pumps and motors , produced in the company 's 15 turkish factory , accounted for much of the growth during 2013. sales in local currency were up in south africa and zambia in 2013 offsetting lower sales in botswana . water systems sales in europe were about 8 percent of consolidated sales and grew by about 6 percent compared to the prior year . acquisition related sales during 2013 were about $ 1 million in europe , or about 1 percent . foreign currency translation rate changes had no impact on sales compared to sales in 2012. excluding acquisitions and foreign currency translation , european sales grew by about 5 percent during 2013 led by growing demand for the company 's pioneer branded mobile dewatering equipment . water systems sales in the asia pacific region were 6 percent of consolidated sales and grew by about 2 percent compared to the prior year . acquisition related sales during 2013 increased sales by about 1 percent in asia . foreign currency translation rate changes decreased sales in 2013 in the asia pacific region by about 3 percent . excluding acquisitions and foreign currency translation , sales grew by about 4 percent during 2013. the year-on-year sales increased 22 percent in southeast asia and china , with strong sales in singapore , thailand , philippines , and indonesia . this growth more than offset a modest decline in sales in the more mature asian markets including japan , korea , and australia . net sales-fueling systems fueling systems sales which represented 21 percent of consolidated sales were $ 199.1 million in 2013 , an increase of $ 22.8 million or about 13 percent versus 2012. the incremental impact of sales from acquired businesses was $ 11.1 million or about 6 percent . foreign currency translation rate changes increased sales $ 1.3 million , or about 1 percent , compared to sales in 2012. the sales change in 2013 , excluding acquisitions and foreign currency translation , was an increase of $ 10.4 million or about 6 percent . fueling systems revenue growth was primarily in developing regions where there is an ongoing need for investment in new filling station infrastructure to support the growing number of passenger vehicles on the road . developing regions represented 30 percent of the company 's fueling systems sales and grew by about 26 percent . solid sales gains were achieved in fuel containment product lines across most developing regions and for fuel dispensing product lines in china . fueling systems sales in more developed markets , like the u.s. , canada , and europe grew by about 8 percent driven primarily by the flexing acquisition . cost of sales cost of sales as a percent of net sales for 2013 and 2012 was 65.7 percent and 66.2 percent , respectively . correspondingly , the gross profit margin increased to 34.3 percent from 33.8 percent , a 50 basis point improvement . the gross profit margin improvement was due to leveraging fixed costs on higher sales , lower labor and burden costs , partially offset by higher freight costs . direct materials as a percentage of sales was unchanged compared to last year . the company 's consolidated gross profit was $ 331.5 million for 2013 , up $ 29.8 million from 2012. selling , general and administrative ( “ sg & a ” ) selling , general , and administrative ( sg & a ) expenses were $ 204.0 million in 2013 and increased by $ 15.5 million or about 8 percent in 2013 compared to last year . in 2013 , increases in sg & a attributable to acquisitions were about $ 9 million . additional year over year changes in sg & a costs were increases in marketing and selling-related expenses attributable to sales volume and higher research , development , and engineering expenses . restructuring expenses restructuring expenses for 2013 were $ 3.7 million and reduced diluted earnings per share by approximately $ 0.05. restructuring expenses in 2013 included asset write-downs , severance costs and expenses related to relocation to the new corporate headquarters and engineering center in fort wayne , indiana . there were $ 0.2 million of restructuring expenses in 2012. operating income operating income was $ 123.8 million in 2013 , up $ 10.8 million from $ 113.0 million in 2012 . 16 replace_table_token_7_th there were specific items in 2013 and 2012 that impacted operating income that were not operational in nature . story_separator_special_tag million of acquisition related expenses , primarily professional fees in sg & a , $ 0.4 million for certain legal matters and $ 0.2 million of restructuring charges . 2011 included $ 1.6 million of restructuring charges and $ 0.7 million for certain legal matters . the company refers to these items as “ non-gaap adjustments ” for purposes of presenting the non-gaap financial measures of operating income after non-gaap adjustments and percent operating income to net sales after non-gaap adjustments to net sales ( operating income margin after non-gaap adjustments ) . the company believes this information helps investors understand underlying trends in the company 's business more easily . the differences between these non-gaap financial measures and the most comparable gaap measures are reconciled in the following tables : replace_table_token_13_th operating income-water systems 22 water systems operating income , after non-gaap adjustments , was $ 125.6 million in 2012 , an increase of 18 percent versus 2011. the 2012 operating income margin after non-gaap adjustments was 17.6 percent and increased by 130 basis points compared to 2011. this increased profitability was the result of operating leverage , increases in pricing , and productivity improvements . operating income-fueling systems fueling systems operating income after non-gaap adjustments was $ 37.0 million in 2012 compared to $ 32.1 million after non-gaap adjustments in 2011 , an increase of 15 percent . the 2012 operating income margin after non-gaap adjustments was 21.0 percent and increased by 180 basis points compared to the 19.2 percent of net sales in 2011. this increased profitability was the result of operating leverage , increases in pricing , and productivity improvements . operating income-other operating income-other is composed primarily of unallocated general and administrative expenses . general and administrative expenses were higher due to increases related to information technology expenditures for software , telephone and other erp integration costs as well as to higher performance based and stock based compensation expenses . interest expense interest expense for 2012 and 2011 was $ 10.2 million and $ 10.5 million , respectively . other income or expense other income or expense was a gain of $ 14.9 million in 2012 and a gain of $ 5.7 million in 2011. included in other income in 2012 was a one-time gain on the pioneer transaction worth $ 12.2 million . the gain on the original investment the company held in pioneer arose as a the result of a new enterprise valuation of the pioneer entity compared to the book value of franklin electric 's equity investment in pioneer . also included in other income in 2012 was income from equity investments of $ 0.6 million and interest income of $ 2.3 million , primarily derived from the investment of cash balances in short-term securities . included in other income or expense in 2011 was income from equity investments of $ 2.3 million and interest income of $ 2.6 million , primarily derived from the investment of cash balances in short-term securities . in conjunction with the impo acquisition , the company entered into a forward purchase contract for turkish lira for a portion of the estimated acquisition price . the contract was outstanding as of the end of the first quarter of 2011 and resulted in a pre-tax gain included in other income of approximately $ 0.6 million . foreign exchange foreign currency-based transactions produced a loss for 2012 of $ 1.7 million , primarily due to the mexican peso , the euro , south african rand , brazilian real and czech koruna relative to the u.s. dollar , none of which individually were significant . foreign currency-based transactions produced a loss in 2011 of $ 1.4 million , primarily due to the turkish lira . income taxes the provision for income taxes in 2012 and 2011 was $ 32.2 million and $ 23.4 million , respectively . the tax rate for 2012 was 27.8 percent and 2011 was 26.9 percent . the projected tax rate may differ from the statutory rate primarily due to the indefinite reinvestment of foreign earnings taxed at rates below the u.s. statutory rate as well as recognition of foreign tax credits . the company has the ability to indefinitely reinvest these foreign earnings based on the earnings and cash projections of its other operations as well as cash on hand and available credit . net income net income for 2012 was $ 83.7 million compared to 2011 net income of $ 63.7 million . net income attributable to franklin electric co. , inc. for 2012 was $ 82.9 million , or $ 1.73 per diluted share , compared to 2011 net income attributable to franklin electric co. , inc. of $ 62.9 million or $ 1.33 per diluted share . net income attributable to franklin electric co. , inc. after non-gaap adjustments for 2012 was $ 74.7 million , or $ 1.57 per diluted share , compared to 2011 net income attributable to franklin electric co. , inc. after non-gaap adjustments of $ 64.1 million or $ 1.35 per diluted share . there were specific items in 2012 and 2011 that impacted net income attributable to franklin electric co. , inc. that were not operational in nature . the company refers to these items as “ non-gaap adjustments ” for purposes of presenting the non-gaap financial measures of net income attributable to franklin electric co. , inc. and adjusted eps . the company believes this information helps investors understand underlying trends in the company 's business more easily . the differences between these non-gaap financial measures and the most comparable gaap measures are reconciled in the following tables : 23 replace_table_token_14_th replace_table_token_15_th story_separator_special_tag style= `` line-height:120 % ; text-align : left ; font-size:10pt ; `` > finance activities net cash flows from financing activities were $ 11.1 million in 2013 compared to a use of cash of $ 19.3 million in 2012 and a use of cash of $ 15.5 million in 2011. during 2013

capital resources and liquidity overview the company 's primary sources of liquidity are cash on hand , cash flows from operations and long-term debt funds available . on december 31 , 2012 , the company , allen county , indiana , and certain institutional investors entered into a bond purchase and loan agreement . under the agreement , allen county , indiana issued a series of project bonds entitled “ taxable economic development bonds , series 2012 ( franklin electric co. , inc. project ) . ” the aggregate principal amount of the project bonds issued and authenticated was limited to $ 25.0 million . the company then borrowed the proceeds under the project bonds through the issuance of project notes to partially finance the cost of acquisition , construction , installation and equipping of the new global corporate headquarters and engineering center . the project notes ( tax increment financing debt ) bear interest at 3.6 percent per annum . interest and principal balance of the project notes are due and payable by the company directly to the institutional investors in aggregate semi-annual installments commencing on july 10 , 2013 , and concluding on january 10 , 24 2033. the use of the proceeds from the project notes was limited to assist the financing of the new global corporate headquarters and engineering center . the company also has an amended and restated uncommitted note purchase and private shelf agreement ( the “ prudential agreement ” ) in the amount of $ 200.0 million , with $ 150.0 million of notes issued thereunder beginning to mature in 2015. the company has no scheduled principal payments under the prudential agreement until 2015 at which time it amortizes for 5 years at an amount of $ 30.0 million per year . as of december 28 , 2013 , the company had $ 50.0 million borrowing capacity under the prudential agreement . in addition , the company has a committed , unsecured , revolving credit agreement maturing on december 14 , 2016 ( the “ agreement ” ) in the amount of $ 150.0 million .


 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 overview the company 's primary sources of liquidity are cash on hand , cash flows from operations and long-term debt funds available . on december 31 , 2012 , the company , allen county , indiana , and certain institutional investors entered into a bond purchase and loan agreement . under the agreement , allen county , indiana issued a series of project bonds entitled “ taxable economic development bonds , series 2012 ( franklin electric co. , inc. project ) . ” the aggregate principal amount of the project bonds issued and authenticated was limited to $ 25.0 million . the company then borrowed the proceeds under the project bonds through the issuance of project notes to partially finance the cost of acquisition , construction , installation and equipping of the new global corporate headquarters and engineering center . the project notes ( tax increment financing debt ) bear interest at 3.6 percent per annum . interest and principal balance of the project notes are due and payable by the company directly to the institutional investors in aggregate semi-annual installments commencing on july 10 , 2013 , and concluding on january 10 , 24 2033. the use of the proceeds from the project notes was limited to assist the financing of the new global corporate headquarters and engineering center . the company also has an amended and restated uncommitted note purchase and private shelf agreement ( the “ prudential agreement ” ) in the amount of $ 200.0 million , with $ 150.0 million of notes issued thereunder beginning to mature in 2015. the company has no scheduled principal payments under the prudential agreement until 2015 at which time it amortizes for 5 years at an amount of $ 30.0 million per year . as of december 28 , 2013 , the company had $ 50.0 million borrowing capacity under the prudential agreement . in addition , the company has a committed , unsecured , revolving credit agreement maturing on december 14 , 2016 ( the “ agreement ” ) in the amount of $ 150.0 million .
```    
 Suspicious Activity Report : foreign currency translation rate changes decreased sales $ 6.3 million , or about 5 percent , compared to sales in 2012. excluding foreign currency translation , sales in latin america grew by about 9 percent during 2013. most of the sales growth in latin america occurred in brazil , and most of the growth in brazil came from continued growth in demand for the line of 4 inch groundwater pumps and motors that the company launched in brazil two years ago . in total , sales in brazil grew organically by 21 percent excluding foreign exchange . water systems sales in the middle east and africa were about 12 percent of consolidated sales and increased by about 3 percent compared to 2012. water systems sales in the middle east and africa were reduced by $ 7.2 million or about 6 percent in the year due to foreign currency translation . excluding acquisitions and the impact of foreign currency translation , sales were up about 9 percent compared to 2012. sales in the gulf region increased by about 17 percent as the governments in both saudi arabia and the uae are supporting investments in groundwater based irrigation projects . sales in turkey increased by about 10 percent as growing demand for the value line of impo branded groundwater pumps and motors , produced in the company 's 15 turkish factory , accounted for much of the growth during 2013. sales in local currency were up in south africa and zambia in 2013 offsetting lower sales in botswana . water systems sales in europe were about 8 percent of consolidated sales and grew by about 6 percent compared to the prior year . acquisition related sales during 2013 were about $ 1 million in europe , or about 1 percent . foreign currency translation rate changes had no impact on sales compared to sales in 2012. excluding acquisitions and foreign currency translation , european sales grew by about 5 percent during 2013 led by growing demand for the company 's pioneer branded mobile dewatering equipment . water systems sales in the asia pacific region were 6 percent of consolidated sales and grew by about 2 percent compared to the prior year . acquisition related sales during 2013 increased sales by about 1 percent in asia . foreign currency translation rate changes decreased sales in 2013 in the asia pacific region by about 3 percent . excluding acquisitions and foreign currency translation , sales grew by about 4 percent during 2013. the year-on-year sales increased 22 percent in southeast asia and china , with strong sales in singapore , thailand , philippines , and indonesia . this growth more than offset a modest decline in sales in the more mature asian markets including japan , korea , and australia . net sales-fueling systems fueling systems sales which represented 21 percent of consolidated sales were $ 199.1 million in 2013 , an increase of $ 22.8 million or about 13 percent versus 2012. the incremental impact of sales from acquired businesses was $ 11.1 million or about 6 percent . foreign currency translation rate changes increased sales $ 1.3 million , or about 1 percent , compared to sales in 2012. the sales change in 2013 , excluding acquisitions and foreign currency translation , was an increase of $ 10.4 million or about 6 percent . fueling systems revenue growth was primarily in developing regions where there is an ongoing need for investment in new filling station infrastructure to support the growing number of passenger vehicles on the road . developing regions represented 30 percent of the company 's fueling systems sales and grew by about 26 percent . solid sales gains were achieved in fuel containment product lines across most developing regions and for fuel dispensing product lines in china . fueling systems sales in more developed markets , like the u.s. , canada , and europe grew by about 8 percent driven primarily by the flexing acquisition . cost of sales cost of sales as a percent of net sales for 2013 and 2012 was 65.7 percent and 66.2 percent , respectively . correspondingly , the gross profit margin increased to 34.3 percent from 33.8 percent , a 50 basis point improvement . the gross profit margin improvement was due to leveraging fixed costs on higher sales , lower labor and burden costs , partially offset by higher freight costs . direct materials as a percentage of sales was unchanged compared to last year . the company 's consolidated gross profit was $ 331.5 million for 2013 , up $ 29.8 million from 2012. selling , general and administrative ( “ sg & a ” ) selling , general , and administrative ( sg & a ) expenses were $ 204.0 million in 2013 and increased by $ 15.5 million or about 8 percent in 2013 compared to last year . in 2013 , increases in sg & a attributable to acquisitions were about $ 9 million . additional year over year changes in sg & a costs were increases in marketing and selling-related expenses attributable to sales volume and higher research , development , and engineering expenses . restructuring expenses restructuring expenses for 2013 were $ 3.7 million and reduced diluted earnings per share by approximately $ 0.05. restructuring expenses in 2013 included asset write-downs , severance costs and expenses related to relocation to the new corporate headquarters and engineering center in fort wayne , indiana . there were $ 0.2 million of restructuring expenses in 2012. operating income operating income was $ 123.8 million in 2013 , up $ 10.8 million from $ 113.0 million in 2012 . 16 replace_table_token_7_th there were specific items in 2013 and 2012 that impacted operating income that were not operational in nature . story_separator_special_tag million of acquisition related expenses , primarily professional fees in sg & a , $ 0.4 million for certain legal matters and $ 0.2 million of restructuring charges . 2011 included $ 1.6 million of restructuring charges and $ 0.7 million for certain legal matters . the company refers to these items as “ non-gaap adjustments ” for purposes of presenting the non-gaap financial measures of operating income after non-gaap adjustments and percent operating income to net sales after non-gaap adjustments to net sales ( operating income margin after non-gaap adjustments ) . the company believes this information helps investors understand underlying trends in the company 's business more easily . the differences between these non-gaap financial measures and the most comparable gaap measures are reconciled in the following tables : replace_table_token_13_th operating income-water systems 22 water systems operating income , after non-gaap adjustments , was $ 125.6 million in 2012 , an increase of 18 percent versus 2011. the 2012 operating income margin after non-gaap adjustments was 17.6 percent and increased by 130 basis points compared to 2011. this increased profitability was the result of operating leverage , increases in pricing , and productivity improvements . operating income-fueling systems fueling systems operating income after non-gaap adjustments was $ 37.0 million in 2012 compared to $ 32.1 million after non-gaap adjustments in 2011 , an increase of 15 percent . the 2012 operating income margin after non-gaap adjustments was 21.0 percent and increased by 180 basis points compared to the 19.2 percent of net sales in 2011. this increased profitability was the result of operating leverage , increases in pricing , and productivity improvements . operating income-other operating income-other is composed primarily of unallocated general and administrative expenses . general and administrative expenses were higher due to increases related to information technology expenditures for software , telephone and other erp integration costs as well as to higher performance based and stock based compensation expenses . interest expense interest expense for 2012 and 2011 was $ 10.2 million and $ 10.5 million , respectively . other income or expense other income or expense was a gain of $ 14.9 million in 2012 and a gain of $ 5.7 million in 2011. included in other income in 2012 was a one-time gain on the pioneer transaction worth $ 12.2 million . the gain on the original investment the company held in pioneer arose as a the result of a new enterprise valuation of the pioneer entity compared to the book value of franklin electric 's equity investment in pioneer . also included in other income in 2012 was income from equity investments of $ 0.6 million and interest income of $ 2.3 million , primarily derived from the investment of cash balances in short-term securities . included in other income or expense in 2011 was income from equity investments of $ 2.3 million and interest income of $ 2.6 million , primarily derived from the investment of cash balances in short-term securities . in conjunction with the impo acquisition , the company entered into a forward purchase contract for turkish lira for a portion of the estimated acquisition price . the contract was outstanding as of the end of the first quarter of 2011 and resulted in a pre-tax gain included in other income of approximately $ 0.6 million . foreign exchange foreign currency-based transactions produced a loss for 2012 of $ 1.7 million , primarily due to the mexican peso , the euro , south african rand , brazilian real and czech koruna relative to the u.s. dollar , none of which individually were significant . foreign currency-based transactions produced a loss in 2011 of $ 1.4 million , primarily due to the turkish lira . income taxes the provision for income taxes in 2012 and 2011 was $ 32.2 million and $ 23.4 million , respectively . the tax rate for 2012 was 27.8 percent and 2011 was 26.9 percent . the projected tax rate may differ from the statutory rate primarily due to the indefinite reinvestment of foreign earnings taxed at rates below the u.s. statutory rate as well as recognition of foreign tax credits . the company has the ability to indefinitely reinvest these foreign earnings based on the earnings and cash projections of its other operations as well as cash on hand and available credit . net income net income for 2012 was $ 83.7 million compared to 2011 net income of $ 63.7 million . net income attributable to franklin electric co. , inc. for 2012 was $ 82.9 million , or $ 1.73 per diluted share , compared to 2011 net income attributable to franklin electric co. , inc. of $ 62.9 million or $ 1.33 per diluted share . net income attributable to franklin electric co. , inc. after non-gaap adjustments for 2012 was $ 74.7 million , or $ 1.57 per diluted share , compared to 2011 net income attributable to franklin electric co. , inc. after non-gaap adjustments of $ 64.1 million or $ 1.35 per diluted share . there were specific items in 2012 and 2011 that impacted net income attributable to franklin electric co. , inc. that were not operational in nature . the company refers to these items as “ non-gaap adjustments ” for purposes of presenting the non-gaap financial measures of net income attributable to franklin electric co. , inc. and adjusted eps . the company believes this information helps investors understand underlying trends in the company 's business more easily . the differences between these non-gaap financial measures and the most comparable gaap measures are reconciled in the following tables : 23 replace_table_token_14_th replace_table_token_15_th story_separator_special_tag style= `` line-height:120 % ; text-align : left ; font-size:10pt ; `` > finance activities net cash flows from financing activities were $ 11.1 million in 2013 compared to a use of cash of $ 19.3 million in 2012 and a use of cash of $ 15.5 million in 2011. during 2013

