we have participated with other companies to explore potential terms and structure of such opportunities and we expect that we will continue to evaluate these opportunities . 20 business trends selected financial results for the past three fiscal years are summarized below : replace_table_token_6_th ( 1 ) see the section non-gaap financial measures below for further discussion of these financial measures . ( 2 ) includes specialty and titanium alloys , stainless steel and powder materials our sales are across a diversified list of end-use markets . during fiscal year 2013 , we changed the manner in which sales are classified by end-use market so that we could better evaluate our sales results from period to period . in order to make the discussion of sales by end-use market more meaningful , we have reclassified the fiscal years 2012 and 2011 sales by end-use market to the fiscal year 2013 presentation . the table below summarizes our estimated sales by market over the past three fiscal years . replace_table_token_7_th 21 the table below shows our net sales by major product class for the past three fiscal years : replace_table_token_8_th impact of raw material prices and product mix we value most of our inventory utilizing the last-in , first-out ( lifo ) inventory costing methodology . under the lifo inventory costing method , changes in the cost of raw materials and production activities are recognized in cost of sales in the current period even though these materials may have been acquired at potentially significantly different values due to the length of time from the acquisition of the raw materials to the sale of the processed finished goods to the customers . in a period of rising raw material costs , the lifo inventory valuation normally results in higher costs of sales . conversely , in a period of decreasing raw material costs , the lifo inventory valuation normally results in lower costs of sales . the volatility of the costs of raw materials has impacted our operations over the past several years . we , and others in our industry , generally have been able to pass cost increases on major raw materials through to our customers using surcharges that are structured to recover increases in raw material costs . generally , the formula used to calculate a surcharge is based on published prices of the respective raw materials for the previous month which correlates to the prices we pay for our raw material purchases . however , a portion of our surcharges to customers may be calculated using a different surcharge formula or may be based on the raw material prices at the time of order , which creates a lag between surcharge revenue and corresponding raw material costs recognized in costs of sales . the surcharge mechanism protects our net income on such sales except for the lag effect discussed above . however , surcharges have had a dilutive effect on our gross margin and operating margin percentages as described later in this report . 22 approximately 25 percent of our net sales are sales to customers under firm price sales arrangements . firm price sales arrangements involve a risk of profit margin fluctuations , particularly when raw material prices are volatile . in order to reduce the risk of fluctuating profit margins on these sales , we enter into commodity forward contracts to purchase certain critical raw materials necessary to produce the related products sold . firm price sales arrangements generally include certain annual purchasing commitments and consumption schedules agreed to by the customers at selling prices based on raw material prices at the time the arrangements are established . if a customer fails to meet the volume commitments ( or the consumption schedule deviates from the agreed-upon terms of the firm price sales arrangements ) , the company may need to absorb the gains or losses associated with the commodity forward contracts on a temporary basis . gains or losses associated with commodity forward contracts are reclassified to earnings/loss when earnings are impacted by the hedged transaction . because we value most of our inventory under the lifo costing methodology , changes in the cost of raw materials and production activities are recognized in cost of sales in the current period attempting to match the most recently incurred costs with revenues . gains or losses on the commodity forward contracts are reclassified from other comprehensive income together with the actual purchase price of the underlying commodities when the underlying commodities are purchased and recorded in inventory . to the extent that the total purchase price of the commodities , inclusive of the gains or losses on the commodity forward contracts , are higher or lower relative to the beginning of year costs , our costs of goods sold reflect such amounts . accordingly , the gains and or losses associated with commodity forward contracts may not impact the same period that the firm price sales arrangements revenue is recognized , and comparisons of gross profit from period to period may be impacted . these firm price sales arrangements are expected to continue as we look to strengthen our long-term customer relationships by expanding , renewing and in certain cases extending to a longer term , our customer long-term arrangements . we produce hundreds of grades of materials , with a wide range of pricing and profit levels depending on the grade . in addition , our product mix within a period is subject to the fluctuating order patterns of our customers as well as decisions we may make on participation in certain products based on available capacity including the impacts of capacity commitments we may have under existing customer agreements . while we expect to see positive contribution from a more favorable product mix in our margin performance over time , the impact by period may fluctuate , and period-to-period comparisons may vary . story_separator_special_tag 30 performance engineered products segment net sales for fiscal year 2013 for the performance engineered products ( pep ) segment increased 4 percent to $ 378.8 million as compared with $ 365.7 million for fiscal year 2012. excluding surcharge revenues , net sales increased 4 percent on 5 percent lower shipment volumes . the results reflects continued softness in demand and net sales offset by the inclusion of the specialty steel supply business acquired in connection with the latrobe acquisition for a full year . operating income for the pep segment for fiscal year 2013 was $ 36.5 million , or 9.6 percent of net sales , as compared with $ 44.1 million , or 12.1 percent of net sales for fiscal year 2012. the results largely reflect the inclusion of specialty steel supply ( sss ) more than offset by some weakening of demand in the titanium distributor channel including medical , continued softness in our european powder tool steel business and higher costs on the amega west business associated with investments in future growth . results of operations  fiscal year 2012 compared to fiscal year 2011 for fiscal year 2012 , we reported net income of $ 121.2 million , or $ 2.53 per diluted share , compared with income of $ 71.0 million , or $ 1.59 per diluted share , a year earlier . our fiscal year 2012 results reflect a trend of improving revenues and profit throughout the fiscal year . net sales net sales for fiscal year 2012 were $ 2,028.7 million , which was a 21 percent increase from fiscal year 2011. excluding surcharge revenues , sales were 27 percent higher than fiscal year 2011 on 9 percent higher volume . geographically , sales outside the united states increased 30 percent from fiscal year 2011 to $ 664.5 million . international sales as a percentage of our total net sales , represented 33 percent and 31 percent for fiscal year 2012 and fiscal year 2011 , respectively . sales by end-use markets we sell to customers across diversified end-use markets . the following table includes comparative information for our estimated net sales , which includes surcharge revenues , by principal end-use markets which we believe is helpful supplemental information in analyzing the performance of the business from period to period : replace_table_token_20_th 31 the following table includes comparative information for our estimated net sales by the same principal end-use markets , but excluding surcharge revenues : replace_table_token_21_th sales to the aerospace and defense market increased 29 percent from fiscal year 2011 to $ 901.2 million . excluding surcharge revenue , such sales increased 31 percent on 43 percent higher shipment volume . the aerospace and defense results reflect strength in all areas as build rates remain high and mix shifts to larger planes and new platforms that favor higher use of our products as well as the addition of the latrobe business during fiscal year 2012. industrial and consumer market sales decreased 2 percent from fiscal year 2011 to $ 478.1 million . adjusted for surcharge revenue , such sales increased approximately 7 percent while volumes decreased 9 percent . the results reflect the continued impact of mix management and pricing actions . the percentage of volume in differentiated product applications with strategically important customers continues to increase as a result of these actions . sales to the energy market of $ 287.0 million reflected a 47 percent increase from fiscal year 2011. excluding surcharge revenue , such sales increased 58 percent on 35 percent higher shipment volume . the sales results reflect the growth led by oil and gas which continues to benefit from the amega west acquisition which is leading to share gains and international expansion . directional rig activity remains high with increased offshore drilling and movement of rigs from gas to oil . sales to the medical market increased 16 percent to $ 141.1 million from fiscal year 2011. adjusted for surcharge revenue , such sales increased 20 percent , while volumes increased 7 percent . the overall volume growth is consistent with expected long term industry growth rates . the higher growth is attributable to customer shifts to tighter specification medical grade alloys which creates increased demand for carpenter premium products . transportation market sales increased 5 percent from the fiscal year 2011 to $ 142.2 million . excluding surcharge revenue , such sales increased 9 percent on 5 percent lower shipment volume . revenue growth far exceeded volume growth which reflects carpenter 's focus on higher value material solutions to increase fuel efficiency and lightweight vehicles . sales to the distribution market increased 104 percent to $ 79.1 million from fiscal year 2011. the increase is primarily attributable to the addition of latrobe distribution business which globally sources and distributes corrosion resistant steels , tool steels and powder metals for a wide range of industries . 32 sales by product class the following table includes comparative information for our net sales by major product class : replace_table_token_22_th the following table includes comparative information for our net sales by the same major product class , but excluding surcharge revenues : replace_table_token_23_th sales of special alloys products increased 12 percent in fiscal year 2012 as compared with a year ago to $ 931.4 million . excluding surcharge revenue , sales increased 14 percent on a 6 percent increase in shipment volume . the sales results principally reflect the increased demand in our higher value alloys used in the aerospace and energy markets as wells as the positive impacts of our mix management initiatives . sales of stainless steels increased 13 percent as compared with fiscal year 2011. excluding surcharge revenues , such sales increased by 24 percent on a 1 percent lower shipment volume . the results reflect the benefits of strengthening product mix and pricing actions in the energy , medical , industrial , automotive and consumer markets . sales of titanium products increased 16 percent as

liquidity and capital resources during the fiscal year 2013 our cash from operations was $ 215.2 million as compared with $ 160.3 million in fiscal year 2012. our free cash flow , which we define under non-gaap financial measures below , was negative $ 159.3 million as compared to negative $ 58.8 million for the same period a year ago . the decrease in free cash flow in fiscal year 2013 as compared with the prior year principally reflects the strong net income more than offset by higher capital spending , largely related to the athens , alabama facility construction , pension contributions and increased working capital levels . 37 purchases of property , plant and equipment and software were $ 336.9 million for fiscal year 2013 as compared with $ 171.9 million for the prior year . the increase in fiscal year 2013 purchases of property , plant and equipment principally reflects the spending associated with our premium products greenfield expansion project in athens , alabama . dividends for the fiscal year 2013 were $ 38.3 million , as compared with $ 33.7 million in the prior year , and were paid at the same quarterly rate of $ 0.18 per share of common stock in both periods . for fiscal years 2013 , 2012 and 2011 , interest cost totaled $ 27.8 million , $ 25.0 million , and $ 17.6 million , respectively , of which $ 6.8 million , $ 1.2 million , and $ 0.5 million , respectively , was capitalized as part of the cost of plant , equipment and software .


 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 during the fiscal year 2013 our cash from operations was $ 215.2 million as compared with $ 160.3 million in fiscal year 2012. our free cash flow , which we define under non-gaap financial measures below , was negative $ 159.3 million as compared to negative $ 58.8 million for the same period a year ago . the decrease in free cash flow in fiscal year 2013 as compared with the prior year principally reflects the strong net income more than offset by higher capital spending , largely related to the athens , alabama facility construction , pension contributions and increased working capital levels . 37 purchases of property , plant and equipment and software were $ 336.9 million for fiscal year 2013 as compared with $ 171.9 million for the prior year . the increase in fiscal year 2013 purchases of property , plant and equipment principally reflects the spending associated with our premium products greenfield expansion project in athens , alabama . dividends for the fiscal year 2013 were $ 38.3 million , as compared with $ 33.7 million in the prior year , and were paid at the same quarterly rate of $ 0.18 per share of common stock in both periods . for fiscal years 2013 , 2012 and 2011 , interest cost totaled $ 27.8 million , $ 25.0 million , and $ 17.6 million , respectively , of which $ 6.8 million , $ 1.2 million , and $ 0.5 million , respectively , was capitalized as part of the cost of plant , equipment and software .
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 Suspicious Activity Report : we have participated with other companies to explore potential terms and structure of such opportunities and we expect that we will continue to evaluate these opportunities . 20 business trends selected financial results for the past three fiscal years are summarized below : replace_table_token_6_th ( 1 ) see the section non-gaap financial measures below for further discussion of these financial measures . ( 2 ) includes specialty and titanium alloys , stainless steel and powder materials our sales are across a diversified list of end-use markets . during fiscal year 2013 , we changed the manner in which sales are classified by end-use market so that we could better evaluate our sales results from period to period . in order to make the discussion of sales by end-use market more meaningful , we have reclassified the fiscal years 2012 and 2011 sales by end-use market to the fiscal year 2013 presentation . the table below summarizes our estimated sales by market over the past three fiscal years . replace_table_token_7_th 21 the table below shows our net sales by major product class for the past three fiscal years : replace_table_token_8_th impact of raw material prices and product mix we value most of our inventory utilizing the last-in , first-out ( lifo ) inventory costing methodology . under the lifo inventory costing method , changes in the cost of raw materials and production activities are recognized in cost of sales in the current period even though these materials may have been acquired at potentially significantly different values due to the length of time from the acquisition of the raw materials to the sale of the processed finished goods to the customers . in a period of rising raw material costs , the lifo inventory valuation normally results in higher costs of sales . conversely , in a period of decreasing raw material costs , the lifo inventory valuation normally results in lower costs of sales . the volatility of the costs of raw materials has impacted our operations over the past several years . we , and others in our industry , generally have been able to pass cost increases on major raw materials through to our customers using surcharges that are structured to recover increases in raw material costs . generally , the formula used to calculate a surcharge is based on published prices of the respective raw materials for the previous month which correlates to the prices we pay for our raw material purchases . however , a portion of our surcharges to customers may be calculated using a different surcharge formula or may be based on the raw material prices at the time of order , which creates a lag between surcharge revenue and corresponding raw material costs recognized in costs of sales . the surcharge mechanism protects our net income on such sales except for the lag effect discussed above . however , surcharges have had a dilutive effect on our gross margin and operating margin percentages as described later in this report . 22 approximately 25 percent of our net sales are sales to customers under firm price sales arrangements . firm price sales arrangements involve a risk of profit margin fluctuations , particularly when raw material prices are volatile . in order to reduce the risk of fluctuating profit margins on these sales , we enter into commodity forward contracts to purchase certain critical raw materials necessary to produce the related products sold . firm price sales arrangements generally include certain annual purchasing commitments and consumption schedules agreed to by the customers at selling prices based on raw material prices at the time the arrangements are established . if a customer fails to meet the volume commitments ( or the consumption schedule deviates from the agreed-upon terms of the firm price sales arrangements ) , the company may need to absorb the gains or losses associated with the commodity forward contracts on a temporary basis . gains or losses associated with commodity forward contracts are reclassified to earnings/loss when earnings are impacted by the hedged transaction . because we value most of our inventory under the lifo costing methodology , changes in the cost of raw materials and production activities are recognized in cost of sales in the current period attempting to match the most recently incurred costs with revenues . gains or losses on the commodity forward contracts are reclassified from other comprehensive income together with the actual purchase price of the underlying commodities when the underlying commodities are purchased and recorded in inventory . to the extent that the total purchase price of the commodities , inclusive of the gains or losses on the commodity forward contracts , are higher or lower relative to the beginning of year costs , our costs of goods sold reflect such amounts . accordingly , the gains and or losses associated with commodity forward contracts may not impact the same period that the firm price sales arrangements revenue is recognized , and comparisons of gross profit from period to period may be impacted . these firm price sales arrangements are expected to continue as we look to strengthen our long-term customer relationships by expanding , renewing and in certain cases extending to a longer term , our customer long-term arrangements . we produce hundreds of grades of materials , with a wide range of pricing and profit levels depending on the grade . in addition , our product mix within a period is subject to the fluctuating order patterns of our customers as well as decisions we may make on participation in certain products based on available capacity including the impacts of capacity commitments we may have under existing customer agreements . while we expect to see positive contribution from a more favorable product mix in our margin performance over time , the impact by period may fluctuate , and period-to-period comparisons may vary . story_separator_special_tag 30 performance engineered products segment net sales for fiscal year 2013 for the performance engineered products ( pep ) segment increased 4 percent to $ 378.8 million as compared with $ 365.7 million for fiscal year 2012. excluding surcharge revenues , net sales increased 4 percent on 5 percent lower shipment volumes . the results reflects continued softness in demand and net sales offset by the inclusion of the specialty steel supply business acquired in connection with the latrobe acquisition for a full year . operating income for the pep segment for fiscal year 2013 was $ 36.5 million , or 9.6 percent of net sales , as compared with $ 44.1 million , or 12.1 percent of net sales for fiscal year 2012. the results largely reflect the inclusion of specialty steel supply ( sss ) more than offset by some weakening of demand in the titanium distributor channel including medical , continued softness in our european powder tool steel business and higher costs on the amega west business associated with investments in future growth . results of operations  fiscal year 2012 compared to fiscal year 2011 for fiscal year 2012 , we reported net income of $ 121.2 million , or $ 2.53 per diluted share , compared with income of $ 71.0 million , or $ 1.59 per diluted share , a year earlier . our fiscal year 2012 results reflect a trend of improving revenues and profit throughout the fiscal year . net sales net sales for fiscal year 2012 were $ 2,028.7 million , which was a 21 percent increase from fiscal year 2011. excluding surcharge revenues , sales were 27 percent higher than fiscal year 2011 on 9 percent higher volume . geographically , sales outside the united states increased 30 percent from fiscal year 2011 to $ 664.5 million . international sales as a percentage of our total net sales , represented 33 percent and 31 percent for fiscal year 2012 and fiscal year 2011 , respectively . sales by end-use markets we sell to customers across diversified end-use markets . the following table includes comparative information for our estimated net sales , which includes surcharge revenues , by principal end-use markets which we believe is helpful supplemental information in analyzing the performance of the business from period to period : replace_table_token_20_th 31 the following table includes comparative information for our estimated net sales by the same principal end-use markets , but excluding surcharge revenues : replace_table_token_21_th sales to the aerospace and defense market increased 29 percent from fiscal year 2011 to $ 901.2 million . excluding surcharge revenue , such sales increased 31 percent on 43 percent higher shipment volume . the aerospace and defense results reflect strength in all areas as build rates remain high and mix shifts to larger planes and new platforms that favor higher use of our products as well as the addition of the latrobe business during fiscal year 2012. industrial and consumer market sales decreased 2 percent from fiscal year 2011 to $ 478.1 million . adjusted for surcharge revenue , such sales increased approximately 7 percent while volumes decreased 9 percent . the results reflect the continued impact of mix management and pricing actions . the percentage of volume in differentiated product applications with strategically important customers continues to increase as a result of these actions . sales to the energy market of $ 287.0 million reflected a 47 percent increase from fiscal year 2011. excluding surcharge revenue , such sales increased 58 percent on 35 percent higher shipment volume . the sales results reflect the growth led by oil and gas which continues to benefit from the amega west acquisition which is leading to share gains and international expansion . directional rig activity remains high with increased offshore drilling and movement of rigs from gas to oil . sales to the medical market increased 16 percent to $ 141.1 million from fiscal year 2011. adjusted for surcharge revenue , such sales increased 20 percent , while volumes increased 7 percent . the overall volume growth is consistent with expected long term industry growth rates . the higher growth is attributable to customer shifts to tighter specification medical grade alloys which creates increased demand for carpenter premium products . transportation market sales increased 5 percent from the fiscal year 2011 to $ 142.2 million . excluding surcharge revenue , such sales increased 9 percent on 5 percent lower shipment volume . revenue growth far exceeded volume growth which reflects carpenter 's focus on higher value material solutions to increase fuel efficiency and lightweight vehicles . sales to the distribution market increased 104 percent to $ 79.1 million from fiscal year 2011. the increase is primarily attributable to the addition of latrobe distribution business which globally sources and distributes corrosion resistant steels , tool steels and powder metals for a wide range of industries . 32 sales by product class the following table includes comparative information for our net sales by major product class : replace_table_token_22_th the following table includes comparative information for our net sales by the same major product class , but excluding surcharge revenues : replace_table_token_23_th sales of special alloys products increased 12 percent in fiscal year 2012 as compared with a year ago to $ 931.4 million . excluding surcharge revenue , sales increased 14 percent on a 6 percent increase in shipment volume . the sales results principally reflect the increased demand in our higher value alloys used in the aerospace and energy markets as wells as the positive impacts of our mix management initiatives . sales of stainless steels increased 13 percent as compared with fiscal year 2011. excluding surcharge revenues , such sales increased by 24 percent on a 1 percent lower shipment volume . the results reflect the benefits of strengthening product mix and pricing actions in the energy , medical , industrial , automotive and consumer markets . sales of titanium products increased 16 percent as

