14 results of operations the following table sets forth , for the years indicated , the percentage of revenues represented by the items as shown in the company 's consolidated statements of operations : replace_table_token_5_th 2011 compared to 2010 net sales increased 5.4 % to $ 127.2 million for the year ended december 31 , 2011 , from net sales of $ 120.8 million in the same period of 2010. the $ 6.4 million increase in sales was largely attributable to increased sales into the aerospace and defense industries of approximately $ 3.1 million fueled by a new contract for the us marines to supply backpack components ( component products segment ) as well as demand for interior trim parts from the automotive industry of approximately $ 1.8 million ( component products segment ) . gross profit as a percentage of sales ( gross margin ) decreased slightly to 28.5 % for the year ended december 31 , 2011 , from 28.7 % in 2010. the slight decrease in gross margin is primarily attributable to costs of approximately $ 350,000 incurred as a result of the closure of the company 's manufacturing facility in alabama as well as approximately $ 300,000 incurred in additional health insurance claims ( overhead ) partially offset by manufacturing efficiencies achieved in the company 's plants ( as a percentage of sales material and direct labor collectively decreased by 0.2 % in 2011 ) . selling , general , and administrative expenses ( sg & a ) increased 5.6 % to $ 21.4 million for the year ended december 31 , 2011 , from $ 20.2 million in 2010. as a percentage of sales , sg & a was 16.8 % for both the years ended december 31 , 2011 , and 2010. the $ 1.2 million increase in sg & a for the year ended december 31 , 2011 , is primarily due to an increase in professional fees of approximately $ 400,000 associated with the development of enhanced internal operating and information systems and a re-branding and marketing project , approximately $ 400,000 in additional administrative salaries , wages and benefits and approximately $ 200,000 in additional health insurance claims . interest expense net of interest income decreased to approximately $ 27,000 for the year ended december 31 , 2011 , from net interest expense of approximately $ 116,000 in 2010. the decrease in interest expense is primarily attributable to higher interest earned on excess cash balances , as well as lower interest paid on declining term debt balances . the gain on sale of assets of approximately $ 834,000 was derived primarily from the sale of real estate in alabama by udt . of this $ 834,000 gain , approximately $ 428,000 relates to non-controlling interests that have been deducted to determine net income attributable to ufp technologies , inc. , and $ 250,000 represents a one-time fee paid to the company for managing the transaction . 15 the company recorded income tax expense as a percentage of income before income tax expense excluding net income attributable to non-controlling interests , of 31.3 % and 34.8 % for the year ended december 31 , 2011 , and 2010 , respectively . the decrease in the effective tax rate for the year ended december 31 , 2011 , is primarily attributable to the reversal in 2011 of approximately $ 385,000 in reserves previously established for uncertain tax benefits due to a favorable outcome on a concluded federal internal revenue service audit and the statute of limitations expiring on certain other federal income tax filings as well as increased deductions associated with domestic manufacturing . the non-controlling interest in udt is not subject to corporate income tax . the company has deferred tax assets on its books associated with net operating losses generated in previous years . the company has considered both positive and negative available evidence in its determination that the deferred tax assets are more likely than not to be realized , and has not recorded a tax valuation allowance at december 31 , 2011. the company will continue to assess whether the deferred tax assets will be realizable and , when appropriate , will record a valuation allowance against these assets . the amount of the net deferred tax asset considered realizable , however , could be reduced in the near term , if estimates of future taxable income during the carry-forward period are reduced . 2010 compared to 2009 net sales increased 21.7 % to $ 120.8 million for the year ended december 31 , 2010 , from net sales of $ 99.2 million in the same period of 2009 , driven primarily by the 2009 acquisitions of foamade , enm , and ami ( all within the component products segment ) . without sales from these acquisitions for the portion of 2010 in which they were not owned in 2009 , sales would have increased 10.0 % to $ 109.1 million . the increase in sales excluding these acquisitions was largely due to increased demand for interior trim parts from the automotive industry of approximately $ 6.6 million ( component products segment ) , as well as an increase in sales in the packaging segment of approximately $ 2.3 million , due largely to the impact of the improved economy on demand for our customers ' parts . gross profit as a percentage of sales ( gross margin ) increased to 28.7 % for the year ended december 31 , 2010 , from 26.9 % in 2009. the increase in gross margin is primarily attributable to the company 's ability to leverage sales growth against the fixed component of cost of sales ( overhead ) , partially offset by lower-than-average margins from the increased salesof automotive trim parts ( component products segment ) . story_separator_special_tag overhead as a percentage of sales decreased by 2.2 % while material and direct labor collectively increased by 0.4 % . selling , general , and administrative expenses ( sg & a ) increased 9.2 % to $ 20.2 million for the year ended december 31 , 2010 , from $ 18.5 million in 2009. as a percentage of sales , sg & a was 16.8 % and 18.7 % , respectively , for the years ended december 31 , 2010 , and 2009. the increase in sg & a for the year ended december 31 , 2010 , is primarily due to increased sg & a associated with newly acquired companies of approximately $ 1.2 million ( component products segment ) and increased variable-based compensation of approximately $ 500,000 ( primarily component products segment ) . the decrease in sg & a as a percentage of sales is primarily a result of the fixed-cost components of sg & a being measured against higher sales . interest expense net of interest income decreased to approximately $ 116,000 for the year ended december 31 , 2010 , from interest expense of approximately $ 233,000 in 2009. the decrease in interest expense is primarily attributable to higher interest earned on excess cash balances , as well as lower interest paid on declining term debt balances . the company recorded income tax expense as a percentage of pre-tax income of 34.8 % and 32.0 % for the year ended december 31 , 2010 and 2009 , respectively . the increase in effective tax rate for 2010 is primarily due to the non-taxable gains recorded on the acquisitions of foamade , enm , and ami in 2009. the company has deferred tax assets on its books associated with net operating losses generated in previous years . the company has considered both positive and negative available evidence in its determination that the deferred tax assets will be realized , and has not recorded a tax valuation allowance at december 31 , 2010. the company will continue to assess whether the deferred tax assets will be realizable and , when appropriate , will record a valuation allowance against these assets . the amount of the net deferred tax asset considered realizable , however , could be reduced in the near term , if estimates of future taxable income during the carry-forward period are reduced . 16 story_separator_special_tag style= `` font-size:10.0pt ; `` > the company recognizes revenue at the time of shipment when title and risk of loss have passed to the customer , persuasive evidence of an arrangement exists , performance of its obligation is complete , its price to the buyer is fixed or determinable , and the company is reasonably assured of collection . if a loss is anticipated on any contract , a provision for the entire loss is made immediately . determination of these criteria , in some cases , requires management 's judgment . should changes in conditions cause management to determine that these criteria are not met for certain future transactions , revenue for any reporting period could be adversely affected . intangible assets intangible assets include patents and other intangible assets . intangible assets with an indefinite life are not amortized . intangible assets with a definite life are amortized on a straight-line basis , with estimated useful lives ranging from eight to 14 years . indefinite-lived intangible assets are tested for impairment annually , and will be tested for impairment between annual tests if an event occurs or circumstances change that would indicate that the carrying amount may be impaired . intangible assets with a definite life are tested for impairment whenever events or circumstances indicate that their carrying amounts may not be recoverable . goodwill goodwill is tested for impairment annually , and will be tested for impairment between annual tests if an event occurs or circumstances change that would indicate that the carrying amount may be impaired . impairment testing for goodwill is done at a reporting unit level . reporting units are one level below the business segment level , but can be combined when reporting units within the same segment have similar economic characteristics . the company 's reporting units include its component products segment , packaging segment ( excluding its molded fiber operation ) , and its molded fiber operation . an impairment loss generally would be recognized when the carrying amount of the reporting unit 's net assets exceeds the estimated fair value of the reporting 18 unit . the company assessed qualitative factors as of december 31 , 2011 , and determined that it was more likely than not that the fair value of both reporting units exceeded their respective carrying amounts . factors considered for each reporting unit included financial performance , forecasts and trends , market cap , regulatory and environmental issues , foreign currency , market analysis , recent transactions , macro-economic conditions , industry and market considerations , raw material costs , management stability , and the degree by which the fair value of each reporting unit exceeded its carrying value in 2010 ( approximately $ 37 million or 161 % and $ 7 million or 190 % for the component products and molded fiber reporting units , respectively ) . as a result , no goodwill impairment test was performed in 2011. based upon tests performed in 2010 and 2009 , there was no goodwill impairment as of december 31 , 2010 , and 2009. accounts receivable the company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments . these allowances for doubtful accounts are determined by reviewing specific accounts the company has deemed are at risk of being uncollectible and other credit risks associated with groups of customers . if the financial condition of the company 's customers were to deteriorate or economic conditions were to deteriorate , resulting in an impairment of their

liquidity and capital resources the company funds its operating expenses , capital requirements , and growth plan through internally-generated cash . as of december 31 , 2011 , and 2010 , working capital was approximately $ 48.6 million and $ 38.3 million , respectively . the increase in working capital is primarily attributable to an increase in cash of approximately $ 7.7 million due to cash generated from operations and increased inventories of approximately $ 1.7 million due largely to the build-up of finished goods associated with a project for the us marines . cash provided from operations was approximately $ 11.7 million and $ 11.8 million in 2011 and 2010 , respectively . the primary reasons for the slight decrease in cash generated from operations in 2011 were ( i ) an increase in inventory in 2011 of approximately $ 1.7 million compared to an increase in inventory in 2010 of approximately $ 400,000 due largely to an increase in inventory associated with a military program , ( ii ) a decrease in accrued taxes and other expenses of approximately $ 440,000 in 2011 compared to an increase in 2010 of approximately $ 1.4 million due mostly to higher income tax payments made in 2011 , partially offset by ( iii ) an increase in profits in 2011 of approximately $ 1.4 million . net cash used in investing activities in 2011 was approximately $ 2.5 million and was used primarily for the acquisition of new manufacturing equipment of approximately $ 3.7 million , partially offset by cash provided from the sale of real estate of approximately $ 1.2 million . on january 29 , 2009 , the company amended and extended its credit facility with bank of america , na . the facility is comprised of : ( i ) a revolving credit facility of $ 17 million ; ( ii ) a term loan of $ 2.1 million with a seven-year straight-line amortization ; ( iii ) a term loan of $ 1.8


 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 funds its operating expenses , capital requirements , and growth plan through internally-generated cash . as of december 31 , 2011 , and 2010 , working capital was approximately $ 48.6 million and $ 38.3 million , respectively . the increase in working capital is primarily attributable to an increase in cash of approximately $ 7.7 million due to cash generated from operations and increased inventories of approximately $ 1.7 million due largely to the build-up of finished goods associated with a project for the us marines . cash provided from operations was approximately $ 11.7 million and $ 11.8 million in 2011 and 2010 , respectively . the primary reasons for the slight decrease in cash generated from operations in 2011 were ( i ) an increase in inventory in 2011 of approximately $ 1.7 million compared to an increase in inventory in 2010 of approximately $ 400,000 due largely to an increase in inventory associated with a military program , ( ii ) a decrease in accrued taxes and other expenses of approximately $ 440,000 in 2011 compared to an increase in 2010 of approximately $ 1.4 million due mostly to higher income tax payments made in 2011 , partially offset by ( iii ) an increase in profits in 2011 of approximately $ 1.4 million . net cash used in investing activities in 2011 was approximately $ 2.5 million and was used primarily for the acquisition of new manufacturing equipment of approximately $ 3.7 million , partially offset by cash provided from the sale of real estate of approximately $ 1.2 million . on january 29 , 2009 , the company amended and extended its credit facility with bank of america , na . the facility is comprised of : ( i ) a revolving credit facility of $ 17 million ; ( ii ) a term loan of $ 2.1 million with a seven-year straight-line amortization ; ( iii ) a term loan of $ 1.8
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 Suspicious Activity Report : 14 results of operations the following table sets forth , for the years indicated , the percentage of revenues represented by the items as shown in the company 's consolidated statements of operations : replace_table_token_5_th 2011 compared to 2010 net sales increased 5.4 % to $ 127.2 million for the year ended december 31 , 2011 , from net sales of $ 120.8 million in the same period of 2010. the $ 6.4 million increase in sales was largely attributable to increased sales into the aerospace and defense industries of approximately $ 3.1 million fueled by a new contract for the us marines to supply backpack components ( component products segment ) as well as demand for interior trim parts from the automotive industry of approximately $ 1.8 million ( component products segment ) . gross profit as a percentage of sales ( gross margin ) decreased slightly to 28.5 % for the year ended december 31 , 2011 , from 28.7 % in 2010. the slight decrease in gross margin is primarily attributable to costs of approximately $ 350,000 incurred as a result of the closure of the company 's manufacturing facility in alabama as well as approximately $ 300,000 incurred in additional health insurance claims ( overhead ) partially offset by manufacturing efficiencies achieved in the company 's plants ( as a percentage of sales material and direct labor collectively decreased by 0.2 % in 2011 ) . selling , general , and administrative expenses ( sg & a ) increased 5.6 % to $ 21.4 million for the year ended december 31 , 2011 , from $ 20.2 million in 2010. as a percentage of sales , sg & a was 16.8 % for both the years ended december 31 , 2011 , and 2010. the $ 1.2 million increase in sg & a for the year ended december 31 , 2011 , is primarily due to an increase in professional fees of approximately $ 400,000 associated with the development of enhanced internal operating and information systems and a re-branding and marketing project , approximately $ 400,000 in additional administrative salaries , wages and benefits and approximately $ 200,000 in additional health insurance claims . interest expense net of interest income decreased to approximately $ 27,000 for the year ended december 31 , 2011 , from net interest expense of approximately $ 116,000 in 2010. the decrease in interest expense is primarily attributable to higher interest earned on excess cash balances , as well as lower interest paid on declining term debt balances . the gain on sale of assets of approximately $ 834,000 was derived primarily from the sale of real estate in alabama by udt . of this $ 834,000 gain , approximately $ 428,000 relates to non-controlling interests that have been deducted to determine net income attributable to ufp technologies , inc. , and $ 250,000 represents a one-time fee paid to the company for managing the transaction . 15 the company recorded income tax expense as a percentage of income before income tax expense excluding net income attributable to non-controlling interests , of 31.3 % and 34.8 % for the year ended december 31 , 2011 , and 2010 , respectively . the decrease in the effective tax rate for the year ended december 31 , 2011 , is primarily attributable to the reversal in 2011 of approximately $ 385,000 in reserves previously established for uncertain tax benefits due to a favorable outcome on a concluded federal internal revenue service audit and the statute of limitations expiring on certain other federal income tax filings as well as increased deductions associated with domestic manufacturing . the non-controlling interest in udt is not subject to corporate income tax . the company has deferred tax assets on its books associated with net operating losses generated in previous years . the company has considered both positive and negative available evidence in its determination that the deferred tax assets are more likely than not to be realized , and has not recorded a tax valuation allowance at december 31 , 2011. the company will continue to assess whether the deferred tax assets will be realizable and , when appropriate , will record a valuation allowance against these assets . the amount of the net deferred tax asset considered realizable , however , could be reduced in the near term , if estimates of future taxable income during the carry-forward period are reduced . 2010 compared to 2009 net sales increased 21.7 % to $ 120.8 million for the year ended december 31 , 2010 , from net sales of $ 99.2 million in the same period of 2009 , driven primarily by the 2009 acquisitions of foamade , enm , and ami ( all within the component products segment ) . without sales from these acquisitions for the portion of 2010 in which they were not owned in 2009 , sales would have increased 10.0 % to $ 109.1 million . the increase in sales excluding these acquisitions was largely due to increased demand for interior trim parts from the automotive industry of approximately $ 6.6 million ( component products segment ) , as well as an increase in sales in the packaging segment of approximately $ 2.3 million , due largely to the impact of the improved economy on demand for our customers ' parts . gross profit as a percentage of sales ( gross margin ) increased to 28.7 % for the year ended december 31 , 2010 , from 26.9 % in 2009. the increase in gross margin is primarily attributable to the company 's ability to leverage sales growth against the fixed component of cost of sales ( overhead ) , partially offset by lower-than-average margins from the increased salesof automotive trim parts ( component products segment ) . story_separator_special_tag overhead as a percentage of sales decreased by 2.2 % while material and direct labor collectively increased by 0.4 % . selling , general , and administrative expenses ( sg & a ) increased 9.2 % to $ 20.2 million for the year ended december 31 , 2010 , from $ 18.5 million in 2009. as a percentage of sales , sg & a was 16.8 % and 18.7 % , respectively , for the years ended december 31 , 2010 , and 2009. the increase in sg & a for the year ended december 31 , 2010 , is primarily due to increased sg & a associated with newly acquired companies of approximately $ 1.2 million ( component products segment ) and increased variable-based compensation of approximately $ 500,000 ( primarily component products segment ) . the decrease in sg & a as a percentage of sales is primarily a result of the fixed-cost components of sg & a being measured against higher sales . interest expense net of interest income decreased to approximately $ 116,000 for the year ended december 31 , 2010 , from interest expense of approximately $ 233,000 in 2009. the decrease in interest expense is primarily attributable to higher interest earned on excess cash balances , as well as lower interest paid on declining term debt balances . the company recorded income tax expense as a percentage of pre-tax income of 34.8 % and 32.0 % for the year ended december 31 , 2010 and 2009 , respectively . the increase in effective tax rate for 2010 is primarily due to the non-taxable gains recorded on the acquisitions of foamade , enm , and ami in 2009. the company has deferred tax assets on its books associated with net operating losses generated in previous years . the company has considered both positive and negative available evidence in its determination that the deferred tax assets will be realized , and has not recorded a tax valuation allowance at december 31 , 2010. the company will continue to assess whether the deferred tax assets will be realizable and , when appropriate , will record a valuation allowance against these assets . the amount of the net deferred tax asset considered realizable , however , could be reduced in the near term , if estimates of future taxable income during the carry-forward period are reduced . 16 story_separator_special_tag style= `` font-size:10.0pt ; `` > the company recognizes revenue at the time of shipment when title and risk of loss have passed to the customer , persuasive evidence of an arrangement exists , performance of its obligation is complete , its price to the buyer is fixed or determinable , and the company is reasonably assured of collection . if a loss is anticipated on any contract , a provision for the entire loss is made immediately . determination of these criteria , in some cases , requires management 's judgment . should changes in conditions cause management to determine that these criteria are not met for certain future transactions , revenue for any reporting period could be adversely affected . intangible assets intangible assets include patents and other intangible assets . intangible assets with an indefinite life are not amortized . intangible assets with a definite life are amortized on a straight-line basis , with estimated useful lives ranging from eight to 14 years . indefinite-lived intangible assets are tested for impairment annually , and will be tested for impairment between annual tests if an event occurs or circumstances change that would indicate that the carrying amount may be impaired . intangible assets with a definite life are tested for impairment whenever events or circumstances indicate that their carrying amounts may not be recoverable . goodwill goodwill is tested for impairment annually , and will be tested for impairment between annual tests if an event occurs or circumstances change that would indicate that the carrying amount may be impaired . impairment testing for goodwill is done at a reporting unit level . reporting units are one level below the business segment level , but can be combined when reporting units within the same segment have similar economic characteristics . the company 's reporting units include its component products segment , packaging segment ( excluding its molded fiber operation ) , and its molded fiber operation . an impairment loss generally would be recognized when the carrying amount of the reporting unit 's net assets exceeds the estimated fair value of the reporting 18 unit . the company assessed qualitative factors as of december 31 , 2011 , and determined that it was more likely than not that the fair value of both reporting units exceeded their respective carrying amounts . factors considered for each reporting unit included financial performance , forecasts and trends , market cap , regulatory and environmental issues , foreign currency , market analysis , recent transactions , macro-economic conditions , industry and market considerations , raw material costs , management stability , and the degree by which the fair value of each reporting unit exceeded its carrying value in 2010 ( approximately $ 37 million or 161 % and $ 7 million or 190 % for the component products and molded fiber reporting units , respectively ) . as a result , no goodwill impairment test was performed in 2011. based upon tests performed in 2010 and 2009 , there was no goodwill impairment as of december 31 , 2010 , and 2009. accounts receivable the company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments . these allowances for doubtful accounts are determined by reviewing specific accounts the company has deemed are at risk of being uncollectible and other credit risks associated with groups of customers . if the financial condition of the company 's customers were to deteriorate or economic conditions were to deteriorate , resulting in an impairment of their

