when an injury occurs and is reported to us , our respective independent tpa or our internal claims management personnel analyze the details of the injury and develop a case reserve , which becomes the estimate of the cost of the claim based on similar injuries and their professional judgment . we then record or accrue an expense and a corresponding liability based upon our estimate of the ultimate claim cost . as cash payments are made by our tpa against specific case reserves , the accrued liability is reduced by the corresponding payment amount . the tpa and our in-house claims administrators also review existing injury claims on an on-going basis and adjust the case reserves as new or additional information for each claim becomes available . our reserve includes a provision for both future anticipated increases in costs ( adverse loss development ) of the claims reserves for open claims and for claims incurred but not reported related to prior and current periods ( together ibnr ) . this provision of the reserve is based upon an actuarial estimate provided by our independent actuary . we believe our operational policies and internal claims reporting system help to limit the occurrence of unreported incurred claims . selling , general and administrative expenses represent both branch office and corporate-level operating expenses . branch operating expenses consist primarily of branch office staff payroll and personnel related costs , advertising , rent , office supplies , professional and legal fees and branch incentive compensation . corporate-level operating expenses consist primarily of executive and office staff payroll and personnel related costs , professional and legal fees , travel , occupancy costs , information systems costs and executive and corporate staff incentive compensation . depreciation and amortization represents depreciation of property and equipment and amortization of intangible assets consisting of the amortization of software costs , covenants not to compete , and if material , customer related intangibles . property and equipment are depreciated using the straight-line method over their estimated useful lives , which generally range from two to 39 years . intangible assets are amortized using the straight-line method over their estimated useful lives , which range from two to ten years . critical accounting policies we have identified the following policies as critical to our business and the understanding of our results of operations . for a detailed discussion of the application of these and other accounting policies , see note 1 to the audited consolidated financial statements included in item 15 of this report . note that the preparation of this annual report on form 10-k requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements , and the reported amounts of revenue and expenses during the reporting period . management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . - 28 - self-insured workers ' compensation reserves . we are self-insured for workers ' compensation coverage in a majority of our employee work sites in oregon , california , maryland , delaware and colorado and for staffing services and management employees only in washington . additionally , effective march 1 , 2010 , our employees working in arizona were eligible for coverage through ecole . the estimated liability for unsettled workers ' compensation claims represents our best estimate , which includes an evaluation of information provided by our internal claims adjusters and our third-party claims administrators , coupled with management 's use of an independent actuary . these elements serve as the basis for our overall estimate for workers ' compensation claims liabilities , which include more specifically the following components : case reserve estimates for reported losses , plus additional amounts for estimated future development of reported claims and incurred but not reported claims ( together ibnr ) . our estimates also include amounts for unallocated loss adjustment expenses , including legal costs . these estimates are continually reviewed and adjustments to liabilities are reflected in current operating results as they become known . we believe that the amounts recorded for our estimated liabilities , which are based upon facts and other trends associated with the company 's historical universe of claims data , are reasonable and objective . nevertheless , it is possible that adjustments to such estimates may be required in future periods if the development of claim costs varies materially from our estimates and such adjustments , if necessary , could be material to results of operations . safety incentives liability . our accrued safety incentives represent cash incentives paid to certain peo client companies for maintaining safe-work practices in order to minimize workplace injuries . the incentive is based on a percentage of annual payroll and is paid annually to customers who meet predetermined workers ' compensation claims cost objectives . safety incentive payments are made only after closure of all workers ' compensation claims incurred during the customer 's contract period . the liability is estimated and accrued each month based upon the expected payout as determined by historical incentive payment trends . the safety incentive expense is netted against peo revenues on our statements of operations . allowance for doubtful accounts . we are required to make estimates of the collectibility of accounts receivables . management analyzes historical bad debts , customer concentrations , customer creditworthiness , current economic trends and changes in the customers ' payment tendencies when evaluating the adequacy of the allowance for doubtful accounts . story_separator_special_tag primarily related to claims incurred during 2005 to 2009. the additional workers ' compensation expense was primarily due to significant claim development of these claim years caused by the prolonged recession and the slowdown in claim closure rates coupled with higher legal expenses . the increase in payroll taxes and benefits , as a percentage of revenues , from 35.4 % for 2010 to 39.1 % for 2011 , was principally due to higher statutory state unemployment tax rates in various states in which the company operates in 2011 as compared to 2010 and to a relative shift in business mix to peo services , as to which payroll taxes and benefits are presented at gross cost while the related direct payroll costs are netted against peo services revenue . the decrease in direct payroll costs , as a percentage of revenues , from 34.9 % for 2010 to 30.0 % for 2011 reflects the moderate shift in the overall mix of services from staffing services to peo services in the company 's customer base and the effect of each customer 's unique mark-up percent . sg & a expenses for 2011 amounted to approximately $ 38.2 million , an increase of $ 2.7 million or 7.7 % over 2010. the increase in dollars over 2010 was primarily attributable to - 35 - higher profit sharing , management payroll and travel due to an increased level of business activity . sg & a expenses , as a percentage of revenues , decreased from 13.0 % in 2010 to 12.1 % in 2011. other income for 2011 was $ 11.2 million compared to other income of $ 2.0 million for 2010. the increase in other income for 2011 was primarily attributable to the $ 10.0 million of life insurance proceeds . our effective income tax rate for 2011 was 5.5 % , as compared to 25.9 % for 2010. the provision for income taxes included a favorable benefit from the effect of the non-taxable $ 10.0 million life insurance proceeds , a $ 451,000 california income tax refund , and employment tax credits . fluctuations in quarterly operating results we have historically experienced significant fluctuations in our quarterly operating results and expect such fluctuations to continue in the future . our operating results may fluctuate due to a number of factors such as a seasonality , wage limits on statutory payroll taxes , claims experience for workers ' compensation , demand for our services and competition and the effect of acquisitions . payroll taxes , as a component of cost of revenues , generally decline throughout a calendar year as the applicable statutory wage bases for federal and state unemployment taxes and social security taxes are exceeded on a per employee basis . our revenue levels may be higher in the third quarter due to the effect of increased business activity of our customers ' businesses in the agriculture , food processing and forest products-related industries . in addition , revenues in the fourth quarter may be affected by many customers ' practice of operating on holiday-shortened schedules . workers ' compensation expense varies with both the frequency and severity of workplace injury claims reported during a quarter and the estimated future costs of such claims . in addition , adverse loss development of prior period claims during a subsequent quarter may also contribute to the volatility in the company 's estimated worker 's compensation expense . story_separator_special_tag size= `` 1 `` > funded debt : ebitda of no more than 2.25:1 through september 30 , 2013 ; 1.75:1 through september 30 , 2014 ; 1.5:1 through september 30 , 2015 ; and 1.25:1 thereafter , measured quarterly on a rolling four-quarter basis beginning december 31 , 2012 ; ratio of restricted and unrestricted cash and marketable securities to workers ' compensation and safety incentive liabilities of at least 1.0:1.0 , measured quarterly ; and prohibition on incurring additional indebtedness without the prior approval of the bank , other than up to $ 200,000 per year in purchase money financing . the agreement also contains customary events of default . if an event of default under the agreement occurs and is continuing , the bank may declare any outstanding obligations under the agreement to be immediately due and payable . the company was in compliance with all applicable financial covenants at december 31 , 2012. additionally , as disclosed in note 7 to the consolidated financial statements in this report , effective november 1 , 2012 the company entered into a term loan with the bank for approximately $ 5.5 million secured by the company 's corporate office building in vancouver , washington . the term loan requires payment of monthly installments of $ 18,375 beginning december 1 , 2012 , bearing interest at the one month libor plus 2.25 % with the unpaid principal balance due november 1 , 2017. the addition of the term loan increases the total credit facility to approximately $ 29.5 million . - 38 - during september 2012 , california senate bill 863 ( sb 863 ) , designed to reform california 's workers ' compensation system , was signed into law . section 3701.9 of section 16 of sb 863 was added to the labor code and includes a provision whereby the california director of self-insurance ( the director ) is required not to issue certificates of consent to self-insure after january 1 , 2013 to any employer engaged in the activities of a professional employer organization , a leasing employer , a temporary services employer or any employer the director determines to be in the business of providing employees to other employers . additionally , a certificate of consent to self-insure that previously had been issued to any employer engaged in these types of activities is required to be revoked by the director not later than january 1 , 2015. if the company , which has a certificate of consent to self-insure in

liquidity and capital resources the company 's cash position of $ 45.7 million at december 31 , 2012 decreased $ 3.8 million compared to december 31 , 2011 , which compares to an increase of $ 18.6 million for the year ended december 31 , 2011. the decrease in cash at december 31 , 2012 , as compared to december 31 , 2011 , was primarily due to the repurchase of the company 's common stock for an amount totaling $ 60.2 million which included the redemption of $ 34.8 million of preferred shares issued during 2012 to finance the repurchase and an increase in accounts receivable of $ 17.4 million , offset in part by net income of $ 13.1 million , a $ 20.7 million increase in workers ' compensation claims liabilities , an increase in accrued payroll , payroll taxes and related benefits of $ 17.2 million and the issuance of net debt totaling $ 10.0 million . net cash provided by operating activities for 2012 amounted to $ 45.7 million , as compared to net cash provided by operating activities of $ 31.4 million for 2011. for 2012 , cash flow was primarily provided by net income of $ 13.1 million , together with increases in workers ' compensation claims liabilities of $ 20.7 million , accrued payroll , payroll taxes and related benefits of $ 17.2 million , safety incentives liabilities of $ 3.5 million , and a decrease in income taxes receivable of $ 4.1 million partially offset by an increase in accounts receivable of $ 17.4 million . - 36 - net cash provided by investing activities totaled $ 2.1 million for 2012 , compared to net cash used in investing activities of $ 4.2 million for 2011. for 2012 , the cash provided by investing activities was primarily provided by proceeds from sales and maturities of marketable securities of $ 39.2 million , offset in part by purchases of $ 33.5 million of marketable securities and by purchases of property and equipment of $ 3.7 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.
     ```liquidity and capital resources the company 's cash position of $ 45.7 million at december 31 , 2012 decreased $ 3.8 million compared to december 31 , 2011 , which compares to an increase of $ 18.6 million for the year ended december 31 , 2011. the decrease in cash at december 31 , 2012 , as compared to december 31 , 2011 , was primarily due to the repurchase of the company 's common stock for an amount totaling $ 60.2 million which included the redemption of $ 34.8 million of preferred shares issued during 2012 to finance the repurchase and an increase in accounts receivable of $ 17.4 million , offset in part by net income of $ 13.1 million , a $ 20.7 million increase in workers ' compensation claims liabilities , an increase in accrued payroll , payroll taxes and related benefits of $ 17.2 million and the issuance of net debt totaling $ 10.0 million . net cash provided by operating activities for 2012 amounted to $ 45.7 million , as compared to net cash provided by operating activities of $ 31.4 million for 2011. for 2012 , cash flow was primarily provided by net income of $ 13.1 million , together with increases in workers ' compensation claims liabilities of $ 20.7 million , accrued payroll , payroll taxes and related benefits of $ 17.2 million , safety incentives liabilities of $ 3.5 million , and a decrease in income taxes receivable of $ 4.1 million partially offset by an increase in accounts receivable of $ 17.4 million . - 36 - net cash provided by investing activities totaled $ 2.1 million for 2012 , compared to net cash used in investing activities of $ 4.2 million for 2011. for 2012 , the cash provided by investing activities was primarily provided by proceeds from sales and maturities of marketable securities of $ 39.2 million , offset in part by purchases of $ 33.5 million of marketable securities and by purchases of property and equipment of $ 3.7 million .
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 Suspicious Activity Report : when an injury occurs and is reported to us , our respective independent tpa or our internal claims management personnel analyze the details of the injury and develop a case reserve , which becomes the estimate of the cost of the claim based on similar injuries and their professional judgment . we then record or accrue an expense and a corresponding liability based upon our estimate of the ultimate claim cost . as cash payments are made by our tpa against specific case reserves , the accrued liability is reduced by the corresponding payment amount . the tpa and our in-house claims administrators also review existing injury claims on an on-going basis and adjust the case reserves as new or additional information for each claim becomes available . our reserve includes a provision for both future anticipated increases in costs ( adverse loss development ) of the claims reserves for open claims and for claims incurred but not reported related to prior and current periods ( together ibnr ) . this provision of the reserve is based upon an actuarial estimate provided by our independent actuary . we believe our operational policies and internal claims reporting system help to limit the occurrence of unreported incurred claims . selling , general and administrative expenses represent both branch office and corporate-level operating expenses . branch operating expenses consist primarily of branch office staff payroll and personnel related costs , advertising , rent , office supplies , professional and legal fees and branch incentive compensation . corporate-level operating expenses consist primarily of executive and office staff payroll and personnel related costs , professional and legal fees , travel , occupancy costs , information systems costs and executive and corporate staff incentive compensation . depreciation and amortization represents depreciation of property and equipment and amortization of intangible assets consisting of the amortization of software costs , covenants not to compete , and if material , customer related intangibles . property and equipment are depreciated using the straight-line method over their estimated useful lives , which generally range from two to 39 years . intangible assets are amortized using the straight-line method over their estimated useful lives , which range from two to ten years . critical accounting policies we have identified the following policies as critical to our business and the understanding of our results of operations . for a detailed discussion of the application of these and other accounting policies , see note 1 to the audited consolidated financial statements included in item 15 of this report . note that the preparation of this annual report on form 10-k requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements , and the reported amounts of revenue and expenses during the reporting period . management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . - 28 - self-insured workers ' compensation reserves . we are self-insured for workers ' compensation coverage in a majority of our employee work sites in oregon , california , maryland , delaware and colorado and for staffing services and management employees only in washington . additionally , effective march 1 , 2010 , our employees working in arizona were eligible for coverage through ecole . the estimated liability for unsettled workers ' compensation claims represents our best estimate , which includes an evaluation of information provided by our internal claims adjusters and our third-party claims administrators , coupled with management 's use of an independent actuary . these elements serve as the basis for our overall estimate for workers ' compensation claims liabilities , which include more specifically the following components : case reserve estimates for reported losses , plus additional amounts for estimated future development of reported claims and incurred but not reported claims ( together ibnr ) . our estimates also include amounts for unallocated loss adjustment expenses , including legal costs . these estimates are continually reviewed and adjustments to liabilities are reflected in current operating results as they become known . we believe that the amounts recorded for our estimated liabilities , which are based upon facts and other trends associated with the company 's historical universe of claims data , are reasonable and objective . nevertheless , it is possible that adjustments to such estimates may be required in future periods if the development of claim costs varies materially from our estimates and such adjustments , if necessary , could be material to results of operations . safety incentives liability . our accrued safety incentives represent cash incentives paid to certain peo client companies for maintaining safe-work practices in order to minimize workplace injuries . the incentive is based on a percentage of annual payroll and is paid annually to customers who meet predetermined workers ' compensation claims cost objectives . safety incentive payments are made only after closure of all workers ' compensation claims incurred during the customer 's contract period . the liability is estimated and accrued each month based upon the expected payout as determined by historical incentive payment trends . the safety incentive expense is netted against peo revenues on our statements of operations . allowance for doubtful accounts . we are required to make estimates of the collectibility of accounts receivables . management analyzes historical bad debts , customer concentrations , customer creditworthiness , current economic trends and changes in the customers ' payment tendencies when evaluating the adequacy of the allowance for doubtful accounts . story_separator_special_tag primarily related to claims incurred during 2005 to 2009. the additional workers ' compensation expense was primarily due to significant claim development of these claim years caused by the prolonged recession and the slowdown in claim closure rates coupled with higher legal expenses . the increase in payroll taxes and benefits , as a percentage of revenues , from 35.4 % for 2010 to 39.1 % for 2011 , was principally due to higher statutory state unemployment tax rates in various states in which the company operates in 2011 as compared to 2010 and to a relative shift in business mix to peo services , as to which payroll taxes and benefits are presented at gross cost while the related direct payroll costs are netted against peo services revenue . the decrease in direct payroll costs , as a percentage of revenues , from 34.9 % for 2010 to 30.0 % for 2011 reflects the moderate shift in the overall mix of services from staffing services to peo services in the company 's customer base and the effect of each customer 's unique mark-up percent . sg & a expenses for 2011 amounted to approximately $ 38.2 million , an increase of $ 2.7 million or 7.7 % over 2010. the increase in dollars over 2010 was primarily attributable to - 35 - higher profit sharing , management payroll and travel due to an increased level of business activity . sg & a expenses , as a percentage of revenues , decreased from 13.0 % in 2010 to 12.1 % in 2011. other income for 2011 was $ 11.2 million compared to other income of $ 2.0 million for 2010. the increase in other income for 2011 was primarily attributable to the $ 10.0 million of life insurance proceeds . our effective income tax rate for 2011 was 5.5 % , as compared to 25.9 % for 2010. the provision for income taxes included a favorable benefit from the effect of the non-taxable $ 10.0 million life insurance proceeds , a $ 451,000 california income tax refund , and employment tax credits . fluctuations in quarterly operating results we have historically experienced significant fluctuations in our quarterly operating results and expect such fluctuations to continue in the future . our operating results may fluctuate due to a number of factors such as a seasonality , wage limits on statutory payroll taxes , claims experience for workers ' compensation , demand for our services and competition and the effect of acquisitions . payroll taxes , as a component of cost of revenues , generally decline throughout a calendar year as the applicable statutory wage bases for federal and state unemployment taxes and social security taxes are exceeded on a per employee basis . our revenue levels may be higher in the third quarter due to the effect of increased business activity of our customers ' businesses in the agriculture , food processing and forest products-related industries . in addition , revenues in the fourth quarter may be affected by many customers ' practice of operating on holiday-shortened schedules . workers ' compensation expense varies with both the frequency and severity of workplace injury claims reported during a quarter and the estimated future costs of such claims . in addition , adverse loss development of prior period claims during a subsequent quarter may also contribute to the volatility in the company 's estimated worker 's compensation expense . story_separator_special_tag size= `` 1 `` > funded debt : ebitda of no more than 2.25:1 through september 30 , 2013 ; 1.75:1 through september 30 , 2014 ; 1.5:1 through september 30 , 2015 ; and 1.25:1 thereafter , measured quarterly on a rolling four-quarter basis beginning december 31 , 2012 ; ratio of restricted and unrestricted cash and marketable securities to workers ' compensation and safety incentive liabilities of at least 1.0:1.0 , measured quarterly ; and prohibition on incurring additional indebtedness without the prior approval of the bank , other than up to $ 200,000 per year in purchase money financing . the agreement also contains customary events of default . if an event of default under the agreement occurs and is continuing , the bank may declare any outstanding obligations under the agreement to be immediately due and payable . the company was in compliance with all applicable financial covenants at december 31 , 2012. additionally , as disclosed in note 7 to the consolidated financial statements in this report , effective november 1 , 2012 the company entered into a term loan with the bank for approximately $ 5.5 million secured by the company 's corporate office building in vancouver , washington . the term loan requires payment of monthly installments of $ 18,375 beginning december 1 , 2012 , bearing interest at the one month libor plus 2.25 % with the unpaid principal balance due november 1 , 2017. the addition of the term loan increases the total credit facility to approximately $ 29.5 million . - 38 - during september 2012 , california senate bill 863 ( sb 863 ) , designed to reform california 's workers ' compensation system , was signed into law . section 3701.9 of section 16 of sb 863 was added to the labor code and includes a provision whereby the california director of self-insurance ( the director ) is required not to issue certificates of consent to self-insure after january 1 , 2013 to any employer engaged in the activities of a professional employer organization , a leasing employer , a temporary services employer or any employer the director determines to be in the business of providing employees to other employers . additionally , a certificate of consent to self-insure that previously had been issued to any employer engaged in these types of activities is required to be revoked by the director not later than january 1 , 2015. if the company , which has a certificate of consent to self-insure in

