while the impact of sequestration is yet to be determined , automatic across-the-board budget cuts would approximately double the amount of the ten-year $ 487 billion top line reduction already reflected in the defense funding over a ten-year period , with a $ 52 billion reduction occurring in the government 's fiscal year 2013. the resulting automatic across-the-board budget cuts in sequestration would have significant consequences to our business and industry . there would be disruption of ongoing programs and initiatives , facilities closures and personnel reductions that would severely impact advanced manufacturing operations and engineering expertise , and accelerate the loss of skills and knowledge , directly undermining a key provision of the new security strategy , which is to preserve the industrial base . the administration 's spending priorities were released on february 13 , 2012 with the submission of the president 's budget request for fiscal year 2013. the government 's 2013 fiscal year runs from october 2012 to september 2013. every year , congress must approve or revise the proposals contained in the president 's annual budget request through enactment of appropriations bills and other policy legislation , which then require final presidential approval . the outcome of the federal budget process has a direct effect on our business . department of defense business the passage of the budget act signaled the end of ten years of growth in the dod base budget and imposed specific caps on security and non-security spending beginning in fiscal year 2013. the fiscal year 2013 request of $ 525 billion for the dod base budget is the first to reflect the reduced spending levels imposed by the budget act and is consistent with its caps on discretionary spending . the fiscal year 2013 request represents a decline of about 1 % below the fiscal year 2012 dod baseline appropriated level of $ 531 billion . preliminary insights into national security funding priorities for fiscal year 2013 and beyond were revealed on january 26 , 2012 by secretary of defense leon panetta , which were consistent with the fiscal year 2013 budget request . specifically , the defense spending proposal estimates dod base budgets that are essentially flat in real terms from fiscal year 2013 through fiscal year 2017. in prior years , the administration has requested and congress has provided funds for u.s. military operations in afghanistan and iraq , and other unforeseeable contingency or peacekeeping operations , through a separate overseas contingency operations ( oco ) funding outside of the base dod budget . the oco funding for fiscal year 2012 totaled $ 115 billion , and the administration has requested $ 88 billion for fiscal year 2013. this significant reduction reflects the completion of u.s. military operations in iraq in 2011. our net sales historically have not been significantly dependent on overseas contingency or supplemental funding requests , and therefore , we continue to focus our attention on the dod 's base budget for support and funding of our programs . in december 2011 , congress passed an omnibus appropriations act for fiscal year 2012 to finance all u.s. government activities through september 30 , 2012 , the end of its fiscal year . this full year method of financing eliminated much of the uncertainty and inefficiency in procurement of products and services that characterized the first quarter of the government 's fiscal year 2012 when the operations of the federal government were financed through a series of continuing resolution temporary funding measures . as we begin 2012 , presidential election year activities will likely mean a shortened session for congress that will have to address the annual spending bills but also broader and more contentious policy issues associated with sequestration and tax policy . given the complexity and sensitivity of these issues , congress may resort to returning for a lame duck session after the november 2012 elections in order to deal with these more contentious issues . the fiscal year 2013 budget proposal reflects the administration 's new national security strategy and is consistent with the lower spending levels imposed by the budget act . despite the reduced defense spending levels in the president 's fiscal year 2013 budget proposal , we believe our broad mix of programs and capabilities continue to position us favorably to support the current and future needs of the dod and our programs are well supported in the fiscal year 2013 budget request . this view was strongly supported by the secretary of defense 's initial public release of elements of the fiscal year 2013 defense budget request on january 26 , 2012. for example , the budget supports continuation of all three variants of the f-35 and still maintains the same ultimate inventory objective of 2,443 aircraft for the u.s. government as last year , although ramp up of production will be slowed due to budgetary constraints in the near term to allow for more testing and to minimize design changes impacting production aircraft . additionally , the secretary 's preliminary release specifically cited continued support for systems where we are the prime contractor or a major subcontractor such as the global positioning satellite program , the advanced extremely high frequency system , the space-based infrared system , phased adaptive approach missile defense system , ddg-51 aegis destroyer , and continued operation of the u-2 manned isr aircraft . 23 given the administration 's emphasis on affordability and the need to find further efficiencies in the management and operations of dod , the need for more affordable logistics and sustainment , expansive use of information technology and knowledge-based solutions , and vastly improved levels of network and cyber security , all appear to continue to be national priorities . story_separator_special_tag product sales at space systems decreased about $ 460 million in 2010 compared to 2009 primarily due to lower volume on defensive missile systems , activities on the nasa external tank program due to the wind down of the space shuttle program and volume from commercial satellite and launch vehicle activities . there was one commercial satellite delivery in both 2010 and 2009 , and there were no commercial launches in 2010 compared to one commercial launch in 2009 . 27 services sales services sales at electronic systems increased about $ 165 million in 2011 compared to 2010 primarily due to growth on the special operations forces contractor logistics support services ( sof clss ) program partially offset by lower volume on various other logistic and training services programs . services sales at is & gs increased approximately $ 155 million in 2011 compared to 2010 due to activities on a number of smaller contracts . most of our services sales are in the electronic systems and is & gs business segments . services sales at electronic systems increased about $ 645 million in 2010 compared to 2009 primarily due to growth on various logistic and training programs and the start of the sof clss program in the third quarter of 2010. is & gs ' services sales increased about $ 310 million in 2010 compared to 2009 due to activities on the hanford mission support contract and numerous other services contracts at is & gs . cost of sales cost of sales , for both products and services , consist of materials , labor , and subcontracting costs , as well as an allocation of indirect costs ( overhead and general and administrative ) . for each of our contracts , we manage the nature and amount of costs at the contract level , which form the basis for estimating our total costs at completion of the contract . management evaluates performance on our contracts by focusing on net sales and operating profit , and not by type or amount of operating expense . consequently , our discussion of business segment performance focuses on net sales and operating profit , consistent with our approach for managing the business . this approach is consistent with the overall life cycle of our contracts , as management assesses the bidding of each contract by focusing on net sales and operating profit , and monitors performance on our contracts in a similar manner through their completion . we regularly provide customers with reports of our costs as the contract progresses . the cost information in the reports is accumulated in a manner specified by the requirements of each contract . for example , cost data provided to our customer for a product would typically align to the subcomponents of that product ( such as a wing-box on an aircraft ) or for services , the type of work being performed ( such as help-desk support ) . our contracts generally are cost-based , which allows for the recovery of costs in the pricing of our products and services . most of our contracts generally are bid and negotiated with our customers based on the mutual awareness of our estimated costs to provide the product or service . this approach for negotiating contracts with our u.s. government customers generally allows for the recovery of our costs . we also may enter into long-term supply contracts for certain materials or components , to coincide with the production schedule of certain products and to ensure their availability at known unit prices . replace_table_token_7_th due to the nature of poc accounting , changes in our cost of product and services sales are typically accompanied by changes in our net sales . the following discussion of material changes in our consolidated cost of sales should be read in tandem with the preceding discussion of changes in our consolidated net sales and with our discussion of business segments. cost of sales was $ 42.8 billion in 2011 , a $ 912 million or 2 % increase over 2010 cost of sales of $ 41.9 billion . the increase was due to a $ 429 million increase in cost of product sales , a $ 132 million increase in cost of services sales and a $ 435 million increase in other unallocated corporate costs , partially offset by a reduction in severance and other charges of $ 84 million as further discussed in the following sections . cost of sales was $ 41.9 billion in 2010 , a $ 2.2 billion or 5 % increase over 2009 cost of sales of $ 39.7 billion . the increase was due to a $ 896 million increase in cost of product sales , a $ 976 million increase in cost of services sales , a $ 71 million increase in other unallocated corporate costs and an increase for severance and other charges of $ 220 million , as further discussed in the following sections . 28 cost of product sales cost of product sales at aeronautics increased by about $ 1.1 billion in 2011 compared to 2010 primarily due to production volume on various programs , including f-35 lrip contracts , and the impact of additional aircraft deliveries . cost of product sales for electronic systems was relatively unchanged between 2011 and 2010. cost of product sales at is & gs decreased about $ 560 million in 2011 compared to 2010 primarily due to the absence of the dris program and lower volume on the jtrs program . cost of product sales decreased at space systems by about $ 120 million in 2011 compared to 2010 primarily due to lower volume on the nasa external tank and orion programs . cost of product sales at aeronautics increased by about $ 1.1 billion in 2010 compared to 2009 primarily due to production activities on various programs , including f-35 lrip contracts , and the impact of aircraft deliveries . cost of product sales

liquidity and cash flows our access to capital resources that provide liquidity has not been materially affected by the changing economic and market conditions over the past few years . we continually monitor changes in such conditions so that we can timely respond to any related developments . we have generated strong operating cash flows which have been the primary source of funding for our operations , debt service and repayments , capital expenditures , share repurchases , dividends , acquisitions , and postretirement benefit plan funding . we have accessed the capital markets on limited occasions , as needed or when opportunistic . we expect our cash from operations to continue to be sufficient to support our operations and anticipated capital expenditures for the foreseeable future . we have financing resources available to fund potential cash outflows that are less predictable or more discretionary , as discussed under capital structure , resources , and other . we have access to the credit markets , if needed , for liquidity or general corporate purposes , including letters of credit to support customer advance payments and for other trade finance purposes such as guaranteeing our performance on particular contracts . cash received from customers , either from the payment of invoices for work performed or for advances in excess of costs incurred , is our primary source of cash . we generally do not begin work on contracts until funding is appropriated by the customer . billing timetables and payment terms on our contracts vary based on a number of factors , including the contract type . we generally bill and collect cash more frequently under cost-reimbursable and time-and-materials contracts , which together represent approximately 55 % of the sales we recorded in 2011 , as we are authorized to bill as the costs are incurred or work is performed . in contrast to cost-reimbursable contracts , for fixed-price contracts , which represented approximately 45 % of the revenues we recorded in 2011 , we generally do not bill until milestones , including deliveries , are achieved .


 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 cash flows our access to capital resources that provide liquidity has not been materially affected by the changing economic and market conditions over the past few years . we continually monitor changes in such conditions so that we can timely respond to any related developments . we have generated strong operating cash flows which have been the primary source of funding for our operations , debt service and repayments , capital expenditures , share repurchases , dividends , acquisitions , and postretirement benefit plan funding . we have accessed the capital markets on limited occasions , as needed or when opportunistic . we expect our cash from operations to continue to be sufficient to support our operations and anticipated capital expenditures for the foreseeable future . we have financing resources available to fund potential cash outflows that are less predictable or more discretionary , as discussed under capital structure , resources , and other . we have access to the credit markets , if needed , for liquidity or general corporate purposes , including letters of credit to support customer advance payments and for other trade finance purposes such as guaranteeing our performance on particular contracts . cash received from customers , either from the payment of invoices for work performed or for advances in excess of costs incurred , is our primary source of cash . we generally do not begin work on contracts until funding is appropriated by the customer . billing timetables and payment terms on our contracts vary based on a number of factors , including the contract type . we generally bill and collect cash more frequently under cost-reimbursable and time-and-materials contracts , which together represent approximately 55 % of the sales we recorded in 2011 , as we are authorized to bill as the costs are incurred or work is performed . in contrast to cost-reimbursable contracts , for fixed-price contracts , which represented approximately 45 % of the revenues we recorded in 2011 , we generally do not bill until milestones , including deliveries , are achieved .
```    
 Suspicious Activity Report : while the impact of sequestration is yet to be determined , automatic across-the-board budget cuts would approximately double the amount of the ten-year $ 487 billion top line reduction already reflected in the defense funding over a ten-year period , with a $ 52 billion reduction occurring in the government 's fiscal year 2013. the resulting automatic across-the-board budget cuts in sequestration would have significant consequences to our business and industry . there would be disruption of ongoing programs and initiatives , facilities closures and personnel reductions that would severely impact advanced manufacturing operations and engineering expertise , and accelerate the loss of skills and knowledge , directly undermining a key provision of the new security strategy , which is to preserve the industrial base . the administration 's spending priorities were released on february 13 , 2012 with the submission of the president 's budget request for fiscal year 2013. the government 's 2013 fiscal year runs from october 2012 to september 2013. every year , congress must approve or revise the proposals contained in the president 's annual budget request through enactment of appropriations bills and other policy legislation , which then require final presidential approval . the outcome of the federal budget process has a direct effect on our business . department of defense business the passage of the budget act signaled the end of ten years of growth in the dod base budget and imposed specific caps on security and non-security spending beginning in fiscal year 2013. the fiscal year 2013 request of $ 525 billion for the dod base budget is the first to reflect the reduced spending levels imposed by the budget act and is consistent with its caps on discretionary spending . the fiscal year 2013 request represents a decline of about 1 % below the fiscal year 2012 dod baseline appropriated level of $ 531 billion . preliminary insights into national security funding priorities for fiscal year 2013 and beyond were revealed on january 26 , 2012 by secretary of defense leon panetta , which were consistent with the fiscal year 2013 budget request . specifically , the defense spending proposal estimates dod base budgets that are essentially flat in real terms from fiscal year 2013 through fiscal year 2017. in prior years , the administration has requested and congress has provided funds for u.s. military operations in afghanistan and iraq , and other unforeseeable contingency or peacekeeping operations , through a separate overseas contingency operations ( oco ) funding outside of the base dod budget . the oco funding for fiscal year 2012 totaled $ 115 billion , and the administration has requested $ 88 billion for fiscal year 2013. this significant reduction reflects the completion of u.s. military operations in iraq in 2011. our net sales historically have not been significantly dependent on overseas contingency or supplemental funding requests , and therefore , we continue to focus our attention on the dod 's base budget for support and funding of our programs . in december 2011 , congress passed an omnibus appropriations act for fiscal year 2012 to finance all u.s. government activities through september 30 , 2012 , the end of its fiscal year . this full year method of financing eliminated much of the uncertainty and inefficiency in procurement of products and services that characterized the first quarter of the government 's fiscal year 2012 when the operations of the federal government were financed through a series of continuing resolution temporary funding measures . as we begin 2012 , presidential election year activities will likely mean a shortened session for congress that will have to address the annual spending bills but also broader and more contentious policy issues associated with sequestration and tax policy . given the complexity and sensitivity of these issues , congress may resort to returning for a lame duck session after the november 2012 elections in order to deal with these more contentious issues . the fiscal year 2013 budget proposal reflects the administration 's new national security strategy and is consistent with the lower spending levels imposed by the budget act . despite the reduced defense spending levels in the president 's fiscal year 2013 budget proposal , we believe our broad mix of programs and capabilities continue to position us favorably to support the current and future needs of the dod and our programs are well supported in the fiscal year 2013 budget request . this view was strongly supported by the secretary of defense 's initial public release of elements of the fiscal year 2013 defense budget request on january 26 , 2012. for example , the budget supports continuation of all three variants of the f-35 and still maintains the same ultimate inventory objective of 2,443 aircraft for the u.s. government as last year , although ramp up of production will be slowed due to budgetary constraints in the near term to allow for more testing and to minimize design changes impacting production aircraft . additionally , the secretary 's preliminary release specifically cited continued support for systems where we are the prime contractor or a major subcontractor such as the global positioning satellite program , the advanced extremely high frequency system , the space-based infrared system , phased adaptive approach missile defense system , ddg-51 aegis destroyer , and continued operation of the u-2 manned isr aircraft . 23 given the administration 's emphasis on affordability and the need to find further efficiencies in the management and operations of dod , the need for more affordable logistics and sustainment , expansive use of information technology and knowledge-based solutions , and vastly improved levels of network and cyber security , all appear to continue to be national priorities . story_separator_special_tag product sales at space systems decreased about $ 460 million in 2010 compared to 2009 primarily due to lower volume on defensive missile systems , activities on the nasa external tank program due to the wind down of the space shuttle program and volume from commercial satellite and launch vehicle activities . there was one commercial satellite delivery in both 2010 and 2009 , and there were no commercial launches in 2010 compared to one commercial launch in 2009 . 27 services sales services sales at electronic systems increased about $ 165 million in 2011 compared to 2010 primarily due to growth on the special operations forces contractor logistics support services ( sof clss ) program partially offset by lower volume on various other logistic and training services programs . services sales at is & gs increased approximately $ 155 million in 2011 compared to 2010 due to activities on a number of smaller contracts . most of our services sales are in the electronic systems and is & gs business segments . services sales at electronic systems increased about $ 645 million in 2010 compared to 2009 primarily due to growth on various logistic and training programs and the start of the sof clss program in the third quarter of 2010. is & gs ' services sales increased about $ 310 million in 2010 compared to 2009 due to activities on the hanford mission support contract and numerous other services contracts at is & gs . cost of sales cost of sales , for both products and services , consist of materials , labor , and subcontracting costs , as well as an allocation of indirect costs ( overhead and general and administrative ) . for each of our contracts , we manage the nature and amount of costs at the contract level , which form the basis for estimating our total costs at completion of the contract . management evaluates performance on our contracts by focusing on net sales and operating profit , and not by type or amount of operating expense . consequently , our discussion of business segment performance focuses on net sales and operating profit , consistent with our approach for managing the business . this approach is consistent with the overall life cycle of our contracts , as management assesses the bidding of each contract by focusing on net sales and operating profit , and monitors performance on our contracts in a similar manner through their completion . we regularly provide customers with reports of our costs as the contract progresses . the cost information in the reports is accumulated in a manner specified by the requirements of each contract . for example , cost data provided to our customer for a product would typically align to the subcomponents of that product ( such as a wing-box on an aircraft ) or for services , the type of work being performed ( such as help-desk support ) . our contracts generally are cost-based , which allows for the recovery of costs in the pricing of our products and services . most of our contracts generally are bid and negotiated with our customers based on the mutual awareness of our estimated costs to provide the product or service . this approach for negotiating contracts with our u.s. government customers generally allows for the recovery of our costs . we also may enter into long-term supply contracts for certain materials or components , to coincide with the production schedule of certain products and to ensure their availability at known unit prices . replace_table_token_7_th due to the nature of poc accounting , changes in our cost of product and services sales are typically accompanied by changes in our net sales . the following discussion of material changes in our consolidated cost of sales should be read in tandem with the preceding discussion of changes in our consolidated net sales and with our discussion of business segments. cost of sales was $ 42.8 billion in 2011 , a $ 912 million or 2 % increase over 2010 cost of sales of $ 41.9 billion . the increase was due to a $ 429 million increase in cost of product sales , a $ 132 million increase in cost of services sales and a $ 435 million increase in other unallocated corporate costs , partially offset by a reduction in severance and other charges of $ 84 million as further discussed in the following sections . cost of sales was $ 41.9 billion in 2010 , a $ 2.2 billion or 5 % increase over 2009 cost of sales of $ 39.7 billion . the increase was due to a $ 896 million increase in cost of product sales , a $ 976 million increase in cost of services sales , a $ 71 million increase in other unallocated corporate costs and an increase for severance and other charges of $ 220 million , as further discussed in the following sections . 28 cost of product sales cost of product sales at aeronautics increased by about $ 1.1 billion in 2011 compared to 2010 primarily due to production volume on various programs , including f-35 lrip contracts , and the impact of additional aircraft deliveries . cost of product sales for electronic systems was relatively unchanged between 2011 and 2010. cost of product sales at is & gs decreased about $ 560 million in 2011 compared to 2010 primarily due to the absence of the dris program and lower volume on the jtrs program . cost of product sales decreased at space systems by about $ 120 million in 2011 compared to 2010 primarily due to lower volume on the nasa external tank and orion programs . cost of product sales at aeronautics increased by about $ 1.1 billion in 2010 compared to 2009 primarily due to production activities on various programs , including f-35 lrip contracts , and the impact of aircraft deliveries . cost of product sales

