we use third-party vendors and company-owned outlet stores to dispose of marked-out-of-stock merchandise . the primary drivers of the costs of individual goods are raw materials , labor in the countries where our merchandise is sourced , and logistics costs associated with transporting our merchandise . selling , general , and administrative expenses . selling , general , and administrative expenses include all operating costs not included in cost of goods sold , buying and occupancy costs , with the exception of costs such as advisory fees incurred prior to our ipo , proceeds received from insurance claims , and gain/loss on disposal of assets , which are included in other operating expense , net . these costs include payroll and other expenses related to operations at our corporate home office , store expenses other than occupancy , and marketing expenses , which primarily include production , mailing , and print advertising costs . with the exception of store payroll and marketing , these expenses generally do not vary proportionally with net sales . as a result , selling , general , and administrative expenses as a percentage of net sales is usually higher in lower volume quarters and lower in higher volume quarters . other operating expense , net . other operating expense , net includes advisory fees incurred prior to our ipo , excess proceeds received from the settlement of insurance claims , and gain/loss on disposal of assets . results of operations the table below sets forth the various line items in the consolidated statements of income and comprehensive income as a percentage of net sales for the last three years . replace_table_token_8_th fiscal year comparisons net sales replace_table_token_9_th 26 net sales increased by approximately $ 74.7 million , or 4 % , and included approximately $ 27.0 million related to the fifty-third week in 2012. comparable sales were flat for 2012 compared to 2011 . for 2012 , comparable sales were calculated based upon the fifty-three week period ended february 2 , 2013 compared to the fifty-three week period ended february 4 , 2012. the flat comparable sales resulted from decreases in both transactions and average dollar sales , offset by growth in e-commerce sales . we attribute the decrease in transactions to lower traffic in our stores and a lesser acceptance of product in certain women 's categories during the second and third quarters . non-comparable sales increased $ 35.8 million , equally driven by new store openings and remodels . net sales increased $ 167.5 million from $ 1.9 billion in 2010 to $ 2.1 billion in 2011 , a 9 % increase . comparable sales increased by $ 109.0 million , or 6 % , in 2011 compared to 2010 . the comparable sales growth was driven by growth in average dollar sales during the period as well as the continued growth in e-commerce sales . non-comparable sales increased $ 58.5 million primarily driven by new store openings . other revenue was $ 21.5 million in 2011 , an increase of $ 4.0 million , compared to other revenue of $ 17.5 million in 2010 , primarily as a result of more shipping and handling revenue related to e-commerce merchandise sales growth . gross profit the following table shows cost of sales and gross profit in dollars for the stated periods : replace_table_token_10_th the 180 basis point decrease in gross margin , or gross profit as a percentage of net sales , in 2012 compared to 2011 was comprised of a 140 basis point deterioration in merchandise margin and a 40 basis point increase in buying and occupancy costs . the decrease in merchandise margin was primarily driven by higher product costs and increased promotional activity in the latter part of the second quarter and into the fall season . the increase in buying and occupancy costs is primarily driven by increased rent , including the impact of $ 7.8 million of pre-opening rent expense for the 2 flagship stores under construction . from 2010 to 2011 , we had an 80 basis point improvement in gross margin , or gross profit as a percentage of net sales . the improvement was comprised of 40 basis points of merchandise margin expansion and 40 basis points of buying and occupancy leverage . the merchandise margin expansion was primarily driven by average unit retail increases in certain categories , partially offset by average unit cost increases and higher cancellation charges resulting from our strategic positioning of fabric ahead of anticipated cost increases , along with improvements in the execution of our go-to-market strategy . selling , general , and administrative expenses the following table shows selling , general , and administrative expenses in dollars for the stated periods : year ended 2012 2011 2010 ( in thousands ) selling , general , and administrative expenses $ 491,599 $ 483,823 $ 461,073 the $ 7.8 million increase in selling , general , and administrative expenses in 2012 compared to 2011 was driven by a $ 4.7 million increase in information technology expenses to support international expansion and e-commerce growth , a $ 2.8 million increase in payroll primarily related to additional headcount at our home office to support our international expansion and e-commerce growth pillars , merit increases , and increased stock compensation expense , and a $ 2.5 million increase in marketing expense , primarily related to e-commerce activities . story_separator_special_tag as discussed in “ results of operations ” , this was primarily the result of higher average dollar sales and the execution of our go-to-market strategy , as well as continued debt reduction . these items were offset by higher taxes in the current year as a result of improved operating results and the change in our tax status during the second quarter of 2010. the increase in cash provided by items included in net income discussed above was more than offset by $ 11.3 million of cash used for working capital increases during 2011 compared to $ 28.5 million of cash provided in 2010 . working capital is subject to cyclical operating needs , the timing of receivable collections and payable and expense payments , and the seasonal fluctuations in our operations . the working capital increase in 2011 was primarily attributable to an increase in inventories and income tax liability . the increase in inventories primarily reflects funding for continued e-commerce growth , new stores , and new category growth , while the increase in income tax liability was driven by our status as a corporation for all of 2011 versus only 9 months in 2010 and timing of tax payments . story_separator_special_tag # 000000 ; padding-left:2px ; padding-top:2px ; padding-bottom:2px ; padding-right:2px ; `` > judgments and uncertainties effect if actual results differ from assumptions gift card breakage we sell gift cards in our retail stores and through our e-commerce website and third parties , which do not expire or lose value over periods of inactivity . we account for gift cards by recognizing a liability at the time a gift card is sold . we recognize income from gift cards when they are redeemed by the customer . in addition , income on unredeemed gift cards is recognized proportionally using a time based attribution method from issuance of the gift card to the time it is can be determined that the likelihood of the gift card being redeemed is remote . the gift card breakage rate is based on historical redemption patterns . our accounting methodology for calculating gift card breakage contains uncertainties because it requires management to make assumptions that future gift card redemptions will follow the pattern of previous redemptions . our estimates for these items are based primarily on historical transaction experience . we have not made any material changes in the accounting methodology used to determine gift card breakage over the past 3 years . we have no reason to believe that there will be a material change in the future estimates or assumptions we use to measure gift card breakage . however , if actual results are not consistent with our estimates or assumptions , we may be exposed to losses or gains that could be material . a 100 basis point change in our gift card breakage rate as of february 2 , 2013 would have affected pre-tax income by approximately $ 0.6 million . 33 description of policy judgments and uncertainties effect if actual results differ from assumptions inventories inventories are principally valued at the lower of cost or market on a weighted-average cost basis . we record a lower of cost or market reserve for our inventories if the cost of specific inventory items on hand exceeds the amount we expect to realize from the ultimate sale or disposal of the inventory . we also record an inventory shrinkage reserve calculated as a percentage of cost of sales for estimated merchandise losses for the period between the last physical inventory count and the balance sheet date . these estimates are based on historical results and can be affected by changes in merchandise mix and or changes in shrinkage trends . our accounting methodology for determining the lower of cost or market reserve contains uncertainties because it requires management to make assumptions and estimates that are based on factors such as merchandise seasonality , historical trends , and estimated inventory levels , including sell-through of remaining units . our accounting methodology for estimating the inventory shrinkage reserve contains uncertainty as it requires management to make the assumption that future shrink results will follow the pattern of previous physical inventory losses . we have not made any material changes in the accounting methodology used to determine the lower of cost or market or shrinkage reserve over the past 3 years . we have no reason to believe that there will be a material change in the future estimates or assumptions we use to measure the lower of cost or market or shrinkage reserve . however , if actual results are not consistent with our estimates or assumptions , we may be exposed to losses or gains that could be material . a 10 % increase or decrease in the lower of cost or market adjustment would impact the inventory balance and pre-tax income by $ 0.8 million as of and for the year ended february 2 , 2013. a 10 % increase or decrease in the inventory shrink reserve balance would impact the reserve balance and pre-tax income by $ 1.7 million as of and for the year ended february 2 , 2013. intangible assets intangible assets with indefinite lives , primarily trade names , are reviewed for impairment annually in the fourth quarter and may be reviewed more frequently if indicators of impairment are present . the impairment review is performed by assessing qualitative factors to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount . our consideration of indefinite lived intangible assets for impairment requires judgments surrounding future operating performance , economic conditions , and business plans , among other factors . there are inherent uncertanties related to our qualitative assessment and , if actual results are not consistent with our estimates or assumptions , we may be exposed to impairment losses that could be material . leasehold improvements leasehold improvements are reviewed for impairment if

net cash used in investing activities investing activities consist primarily of capital expenditures for new and remodeled store construction and fixtures , information technology , and home office and design studio renovations . net cash used in investing activities totaled $ 99.9 million in 2012 compared to $ 77.2 million in 2011 , a $ 22.7 million increase . this increase was primarily driven by capital expenditures , gross of landlord allowances , attributable to new store openings and remodels , totaling $ 76.0 million during 2012 compared to $ 60.7 million during 2011 . the remaining increase related primarily to investments in technology to support our international expansion and e-commerce growth . net cash used in investing activities increased $ 22.4 million to $ 77.2 million in 2011 compared to $ 54.8 million in 2010 . this increase was primarily driven by capital expenditures , gross of landlord allowances , attributable to new store openings , remodels , and store fixtures , totaling $ 60.7 million in 2011 compared to $ 38.9 million in 2010 . in 2013 , we plan to open approximately 16 new stores , including 4 in canada . we expect capital expenditures for 2013 to be approximately $ 110.0 million to $ 115.0 million , primarily driven by these new store openings , including the 2 flagship locations , which require additional expenditures over that of a typical new store opening . these capital expenditures do not include the impact of landlord allowances , which are expected to be approximately $ 10.0 to $ 15.0 million for 2013 . 31 net cash used in financing activities net cash used in financing activities totaled $ 65.6 million during 2012 as compared to $ 170.8 million in 2011 , a decrease of $ 105.2 million . cash used for financing activities was primarily related to the repurchase of $ 65.1 million of our common stock , including broker commissions , in 2012 as part of the repurchase program . the cash used in financing activities in 2011 was primarily related to the $ 119.7 million full prepayment of the term loan and repurchases of $ 49.2 million of senior notes .


 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.
     ```net cash used in investing activities investing activities consist primarily of capital expenditures for new and remodeled store construction and fixtures , information technology , and home office and design studio renovations . net cash used in investing activities totaled $ 99.9 million in 2012 compared to $ 77.2 million in 2011 , a $ 22.7 million increase . this increase was primarily driven by capital expenditures , gross of landlord allowances , attributable to new store openings and remodels , totaling $ 76.0 million during 2012 compared to $ 60.7 million during 2011 . the remaining increase related primarily to investments in technology to support our international expansion and e-commerce growth . net cash used in investing activities increased $ 22.4 million to $ 77.2 million in 2011 compared to $ 54.8 million in 2010 . this increase was primarily driven by capital expenditures , gross of landlord allowances , attributable to new store openings , remodels , and store fixtures , totaling $ 60.7 million in 2011 compared to $ 38.9 million in 2010 . in 2013 , we plan to open approximately 16 new stores , including 4 in canada . we expect capital expenditures for 2013 to be approximately $ 110.0 million to $ 115.0 million , primarily driven by these new store openings , including the 2 flagship locations , which require additional expenditures over that of a typical new store opening . these capital expenditures do not include the impact of landlord allowances , which are expected to be approximately $ 10.0 to $ 15.0 million for 2013 . 31 net cash used in financing activities net cash used in financing activities totaled $ 65.6 million during 2012 as compared to $ 170.8 million in 2011 , a decrease of $ 105.2 million . cash used for financing activities was primarily related to the repurchase of $ 65.1 million of our common stock , including broker commissions , in 2012 as part of the repurchase program . the cash used in financing activities in 2011 was primarily related to the $ 119.7 million full prepayment of the term loan and repurchases of $ 49.2 million of senior notes .
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 Suspicious Activity Report : we use third-party vendors and company-owned outlet stores to dispose of marked-out-of-stock merchandise . the primary drivers of the costs of individual goods are raw materials , labor in the countries where our merchandise is sourced , and logistics costs associated with transporting our merchandise . selling , general , and administrative expenses . selling , general , and administrative expenses include all operating costs not included in cost of goods sold , buying and occupancy costs , with the exception of costs such as advisory fees incurred prior to our ipo , proceeds received from insurance claims , and gain/loss on disposal of assets , which are included in other operating expense , net . these costs include payroll and other expenses related to operations at our corporate home office , store expenses other than occupancy , and marketing expenses , which primarily include production , mailing , and print advertising costs . with the exception of store payroll and marketing , these expenses generally do not vary proportionally with net sales . as a result , selling , general , and administrative expenses as a percentage of net sales is usually higher in lower volume quarters and lower in higher volume quarters . other operating expense , net . other operating expense , net includes advisory fees incurred prior to our ipo , excess proceeds received from the settlement of insurance claims , and gain/loss on disposal of assets . results of operations the table below sets forth the various line items in the consolidated statements of income and comprehensive income as a percentage of net sales for the last three years . replace_table_token_8_th fiscal year comparisons net sales replace_table_token_9_th 26 net sales increased by approximately $ 74.7 million , or 4 % , and included approximately $ 27.0 million related to the fifty-third week in 2012. comparable sales were flat for 2012 compared to 2011 . for 2012 , comparable sales were calculated based upon the fifty-three week period ended february 2 , 2013 compared to the fifty-three week period ended february 4 , 2012. the flat comparable sales resulted from decreases in both transactions and average dollar sales , offset by growth in e-commerce sales . we attribute the decrease in transactions to lower traffic in our stores and a lesser acceptance of product in certain women 's categories during the second and third quarters . non-comparable sales increased $ 35.8 million , equally driven by new store openings and remodels . net sales increased $ 167.5 million from $ 1.9 billion in 2010 to $ 2.1 billion in 2011 , a 9 % increase . comparable sales increased by $ 109.0 million , or 6 % , in 2011 compared to 2010 . the comparable sales growth was driven by growth in average dollar sales during the period as well as the continued growth in e-commerce sales . non-comparable sales increased $ 58.5 million primarily driven by new store openings . other revenue was $ 21.5 million in 2011 , an increase of $ 4.0 million , compared to other revenue of $ 17.5 million in 2010 , primarily as a result of more shipping and handling revenue related to e-commerce merchandise sales growth . gross profit the following table shows cost of sales and gross profit in dollars for the stated periods : replace_table_token_10_th the 180 basis point decrease in gross margin , or gross profit as a percentage of net sales , in 2012 compared to 2011 was comprised of a 140 basis point deterioration in merchandise margin and a 40 basis point increase in buying and occupancy costs . the decrease in merchandise margin was primarily driven by higher product costs and increased promotional activity in the latter part of the second quarter and into the fall season . the increase in buying and occupancy costs is primarily driven by increased rent , including the impact of $ 7.8 million of pre-opening rent expense for the 2 flagship stores under construction . from 2010 to 2011 , we had an 80 basis point improvement in gross margin , or gross profit as a percentage of net sales . the improvement was comprised of 40 basis points of merchandise margin expansion and 40 basis points of buying and occupancy leverage . the merchandise margin expansion was primarily driven by average unit retail increases in certain categories , partially offset by average unit cost increases and higher cancellation charges resulting from our strategic positioning of fabric ahead of anticipated cost increases , along with improvements in the execution of our go-to-market strategy . selling , general , and administrative expenses the following table shows selling , general , and administrative expenses in dollars for the stated periods : year ended 2012 2011 2010 ( in thousands ) selling , general , and administrative expenses $ 491,599 $ 483,823 $ 461,073 the $ 7.8 million increase in selling , general , and administrative expenses in 2012 compared to 2011 was driven by a $ 4.7 million increase in information technology expenses to support international expansion and e-commerce growth , a $ 2.8 million increase in payroll primarily related to additional headcount at our home office to support our international expansion and e-commerce growth pillars , merit increases , and increased stock compensation expense , and a $ 2.5 million increase in marketing expense , primarily related to e-commerce activities . story_separator_special_tag as discussed in “ results of operations ” , this was primarily the result of higher average dollar sales and the execution of our go-to-market strategy , as well as continued debt reduction . these items were offset by higher taxes in the current year as a result of improved operating results and the change in our tax status during the second quarter of 2010. the increase in cash provided by items included in net income discussed above was more than offset by $ 11.3 million of cash used for working capital increases during 2011 compared to $ 28.5 million of cash provided in 2010 . working capital is subject to cyclical operating needs , the timing of receivable collections and payable and expense payments , and the seasonal fluctuations in our operations . the working capital increase in 2011 was primarily attributable to an increase in inventories and income tax liability . the increase in inventories primarily reflects funding for continued e-commerce growth , new stores , and new category growth , while the increase in income tax liability was driven by our status as a corporation for all of 2011 versus only 9 months in 2010 and timing of tax payments . story_separator_special_tag # 000000 ; padding-left:2px ; padding-top:2px ; padding-bottom:2px ; padding-right:2px ; `` > judgments and uncertainties effect if actual results differ from assumptions gift card breakage we sell gift cards in our retail stores and through our e-commerce website and third parties , which do not expire or lose value over periods of inactivity . we account for gift cards by recognizing a liability at the time a gift card is sold . we recognize income from gift cards when they are redeemed by the customer . in addition , income on unredeemed gift cards is recognized proportionally using a time based attribution method from issuance of the gift card to the time it is can be determined that the likelihood of the gift card being redeemed is remote . the gift card breakage rate is based on historical redemption patterns . our accounting methodology for calculating gift card breakage contains uncertainties because it requires management to make assumptions that future gift card redemptions will follow the pattern of previous redemptions . our estimates for these items are based primarily on historical transaction experience . we have not made any material changes in the accounting methodology used to determine gift card breakage over the past 3 years . we have no reason to believe that there will be a material change in the future estimates or assumptions we use to measure gift card breakage . however , if actual results are not consistent with our estimates or assumptions , we may be exposed to losses or gains that could be material . a 100 basis point change in our gift card breakage rate as of february 2 , 2013 would have affected pre-tax income by approximately $ 0.6 million . 33 description of policy judgments and uncertainties effect if actual results differ from assumptions inventories inventories are principally valued at the lower of cost or market on a weighted-average cost basis . we record a lower of cost or market reserve for our inventories if the cost of specific inventory items on hand exceeds the amount we expect to realize from the ultimate sale or disposal of the inventory . we also record an inventory shrinkage reserve calculated as a percentage of cost of sales for estimated merchandise losses for the period between the last physical inventory count and the balance sheet date . these estimates are based on historical results and can be affected by changes in merchandise mix and or changes in shrinkage trends . our accounting methodology for determining the lower of cost or market reserve contains uncertainties because it requires management to make assumptions and estimates that are based on factors such as merchandise seasonality , historical trends , and estimated inventory levels , including sell-through of remaining units . our accounting methodology for estimating the inventory shrinkage reserve contains uncertainty as it requires management to make the assumption that future shrink results will follow the pattern of previous physical inventory losses . we have not made any material changes in the accounting methodology used to determine the lower of cost or market or shrinkage reserve over the past 3 years . we have no reason to believe that there will be a material change in the future estimates or assumptions we use to measure the lower of cost or market or shrinkage reserve . however , if actual results are not consistent with our estimates or assumptions , we may be exposed to losses or gains that could be material . a 10 % increase or decrease in the lower of cost or market adjustment would impact the inventory balance and pre-tax income by $ 0.8 million as of and for the year ended february 2 , 2013. a 10 % increase or decrease in the inventory shrink reserve balance would impact the reserve balance and pre-tax income by $ 1.7 million as of and for the year ended february 2 , 2013. intangible assets intangible assets with indefinite lives , primarily trade names , are reviewed for impairment annually in the fourth quarter and may be reviewed more frequently if indicators of impairment are present . the impairment review is performed by assessing qualitative factors to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount . our consideration of indefinite lived intangible assets for impairment requires judgments surrounding future operating performance , economic conditions , and business plans , among other factors . there are inherent uncertanties related to our qualitative assessment and , if actual results are not consistent with our estimates or assumptions , we may be exposed to impairment losses that could be material . leasehold improvements leasehold improvements are reviewed for impairment if

