when used in this report , the words may ,  will ,  should ,  would ,  anticipate ,  estimate ,  expect ,  plan ,  believe ,  predict ,  potential ,  intend ,  and similar expressions are intended to identify forward looking statements . forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected . these risks and uncertainties include , but are not limited to , changes in sales or industry trends , changes in economic conditions , competition , retention of senior management and other key personnel , availability of materials or components , ability to make continued product innovations , casualty or work stoppages at our facilities , adverse results of lawsuits against us and currency exchange rates , the availability of financing and other factors describe in item 1a . risk factors. forward looking statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical trends , current conditions , expected future developments and other factors they believe to be appropriate . readers of this report are cautioned not to place undue reliance on these forward looking statements as there can be no assurance that these forward looking statements will prove to be accurate . our actual results could differ materially from those currently anticipated and discussed in the forward-looking statements as a result of risks and uncertainties set forth in this memorandum , including those set forth in item 1a . risk factors. management undertakes no obligation to update any forward looking statements . this cautionary statement is applicable to all forward looking statements contained in this report . overview we are a leading manufacturer of projection screens primarily focused on the premium end of the large screen market . projection screens are our main product line , and we produce three types : ( 1 ) electrically operated screens , which have the ability to retract into a concealed ceiling recess or into a wall-mounted case ; ( 2 ) wall screens , which are normally mounted on an exposed wall surface and may either be manually retractable or attached to a rigid frame ; and ( 3 ) portable screens that can easily be set up and removed . we also manufacture and sell custom engineered rear projection systems and complementary presentation products , including lecterns , easels , audio visual carts , conference cabinets , projector mounts and brackets for larger flat-panel displays . projection screens sales accounted for 85 % of our net sales in 2010 and 2009. improved capabilities , lower costs and greater portability of projectors , together with improved presentation tools , have driven projection screen sales in recent years . projector sales by other companies are a primary driver of the demand for our projection screens . many customers purchase projection screens as part of their installation of a new audio visual system or in connection with an upgrade of their existing audio visual systems . outlook we believe that our primary competitive strengths are the quality and innovation of our products , the breadth of our product line and our excellent customer service . sales for 2011 are difficult to forecast because we do not operate with a significant order backlog . however , we believe that we will continue to develop and market products to compete successfully . 18 distributions ( other than tax related distributions ) to shareholders were stopped in 2009 and are not currently contemplated in 2011. we currently believe that cash generated from operations will be sufficient to cover our operating requirements , although there can be no assurances in this regard . results of operations year ended december 31 , 2010 , compared with year ended january 1 , 2010 net sales . net sales were $ 131.9 million for 2010 , as compared to net sales of $ 130.3 million for 2009 , an increase of $ 1.6 million or 1.2 % . net sales by our united states ( u.s. ) operations increased 2.1 % . in the u.s. , electric screen sales increased $ 1.4 million , wall screen sales decreased $ 0.5 million , portable screens sales increased $ 0.8 million and other products increased $ 0.7 million . overall sales were positively impacted by an improvement in the economy , in the hospitality , business/it and housing markets . portable screen sales were positively impacted by a slight increase in demand from the rental and staging markets within the broader hospitality market . net sales from our european subsidiaries decreased by $ 0.7 million or 3.6 % . the stronger dollar resulted in a decrease of $ 1.0 million in net sales . cost of sales . cost of sales were $ 80.5 million for 2010 , as compared to $ 83.9 million for 2009 , a decrease of $ 3.4 million or 4.0 % . as a percentage of net sales , the cost of sales represented 61.0 % and 64.4 % for 2010 and 2009 , respectively . this constitutes a 3.4 percentage point increase in margin . this overall increase resulted primarily from the decrease in material cost in the u.s. facilities and increased adoption of lean manufacturing techniques . margins at our u.s. facilities increased 2.9 points due to sourcing lower-cost materials and components internationally , while margins at our european operations increased 1.5 points . selling , general and administrative expenses . story_separator_special_tag during 2009 , we recorded income resulting from the discounts realized in retiring $ 21.7 million of our 9 1 / 2 % senior notes ; in 2008 , we recorded income from the discounts realized in retiring $ 9.3 million of our 9 1 / 2 % senior notes . income taxes . as a subchapter s corporation for united states tax purposes , we are generally not subject to united states federal and state income taxation . rather , our income , gains , losses , deductions and credits flow through to our shareholders and we make distributions to them to meet their tax obligations at an assumed maximum federal and state tax rate ( based on the state with the highest tax rate in which any of our shareholders reside ) . this assumed rate was 40.4 % during 2009 and 2008. the company pays foreign income taxes on the earnings of its european subsidiaries . net income . as a result of the aforementioned factors , net income decreased $ 15.2 million from $ 26.5 million in 2008 to $ 11.3 million in 2009 . 20 story_separator_special_tag the distributions ( other than tax related distributions ) to our stockholders to a monthly rate of $ 0.14 per share or $ 0.7 million in the aggregate in april of 2009 and discontinued making distributions ( other than tax related distributions ) thereafter . 22 inflation we manage our inflation risks by ongoing review of product selling prices and production costs . management does not believe that inflation risks are material to our business , our consolidated financial position , results of operations or cash flows . however , there can be no assurance that future inflation will not have an adverse impact on our operating results and financial condition . environmental we have incurred and in the future will continue to incur expenditures for matters relating to environmental control , remediation , monitoring and compliance . our management believes that compliance with current environmental laws and regulations is not likely to have a material adverse effect on our financial condition , the results of our operations or our liquidity . however , environmental laws and regulations have changed rapidly in recent years and we may become subject to more stringent environmental laws and regulations in the future . critical accounting policies and estimates the preparation of financial statements in accordance with accounting principles generally accepted in the united states of america requires that management make a number of assumptions and estimates that affect the reported amounts of assets , liabilities , revenue and expenses in the consolidated financial statements and accompanying notes . management bases its estimates on historical experience and various other assumptions believed to be reasonable . although these estimates are based on management 's best knowledge of current events and actions that may impact us in the future , actual results may differ from these estimates and assumptions . our critical accounting policies are those that affect our consolidated financial statements materially and involve a significant level of judgment by management . revenue recognition we recognize revenue when we receive an order from a customer , title has transferred to a customer , the sales price is fixed or determinable and the collectability of the sales price is reasonably assured . all amounts billed to customers in a sales transaction related to shipping and handling are recorded as revenue , and costs incurred by us for shipping and handling are recorded as cost of sales . provision for customer sales allowances , returns and warranties are made at the time of shipment . we do not have any post-shipment obligations related to our sales such as installation , training or customer acceptance . allowance for doubtful accounts the financial status of customers is routinely checked and monitored by us when granting credit . we provide an allowance for doubtful accounts based upon historical experience and management 's estimate of amounts to be collected from past due accounts . if circumstances change , for example , due to the occurrence of higher-than-expected defaults or a significant adverse change in a major customer 's ability to meet its financial obligations to us , estimates of recoverability of receivable amounts due could be reduced . 23 goodwill goodwill represents the excess of purchase price over the fair value of identifiable net assets acquired . we apply the provisions of financial accounting standards board ( fasb ) accounting standards codification asc 350 intangibles-goodwill and other and management tests goodwill for impairment to determine whether its carrying value exceeds its implied fair value at least annually or more frequently if events or circumstances indicate that the carrying amount of goodwill may be impaired . the company has three reporting units ( da-lite us , procolor s.a.s , and projecta bv ) of which only da-lite us had goodwill as of december 31 , 2010. the company 's annual impairment testing date is the last day of the fiscal year . the goodwill impairment test involves a two-step process . the first step is a comparison of each reporting unit 's fair value to its carrying value . the company estimates fair value based on a combination of the market value approach and income approach using discounted cash flows . these valuations are based on assumptions and estimates including projected future cash flows , discount rates , and determination of appropriate market comparables . the fair value of each reporting unit is estimated using both methods and each method is given equal weighting in arriving at the fair value of the reporting unit . the second step , if needed , requires us to allocate the fair value of the reporting unit derived in the first step to the fair value of the reporting unit 's net assets to calculate the implied value of the goodwill . if the carrying value of the reporting unit 's goodwill is in excess

liquidity and capital resources the company expects to be able to fund its working capital requirements , interest expense , capital expenditures and its distributions to stockholders with cash generated from operations , although there can be no assurances in this regard . the company issued $ 105 million aggregate principle amount of 12 1 / 2 % senior notes during the first quarter of 2010. these notes were issued with an original issue discount at a price of 97.305 % and this debt was recorded at the discounted amount of $ 102.2 million . the discount will be accreted over the life of these notes as interest expense . in march 2010 , the company repurchased $ 43.5 million of the outstanding principal amount of its 9 1 / 2 % senior notes from the open market for an aggregate purchase price of $ 44.5 million . on may 17 , 2010 , the company redeemed the remaining $ 54.5 million of the 9 1 / 2 % senior notes at a purchase price equal to the principal amount . the funds to repurchase these notes were from the $ 102.2 million cash received from of the issuance of the 12 1 / 2 % senior notes along with the borrowings under our bank credit facility . on september 2 , 2010 , the company repurchased $ 10.8 million of the outstanding $ 105.0 million principal amount of its 12 1 / 2 % senior notes from the open market for an aggregate purchase price of $ 11.0 million . the company retired these notes and wrote-off the purchase premium and the deferred financing cost related to the repurchase . the company increased its borrowing under the unsecured revolving credit facility in connection with the repurchase . pursuant to the terms of the 12 1 / 2 % senior notes , the company is required to offer to purchase from all noteholders , on a pro rata basis , an aggregated principal amount of $ 5.9 million of the 12 1 / 2 % senior notes at a purchase price of 103.000 % ( plus accrued interest to the redemption date ) .


 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 expects to be able to fund its working capital requirements , interest expense , capital expenditures and its distributions to stockholders with cash generated from operations , although there can be no assurances in this regard . the company issued $ 105 million aggregate principle amount of 12 1 / 2 % senior notes during the first quarter of 2010. these notes were issued with an original issue discount at a price of 97.305 % and this debt was recorded at the discounted amount of $ 102.2 million . the discount will be accreted over the life of these notes as interest expense . in march 2010 , the company repurchased $ 43.5 million of the outstanding principal amount of its 9 1 / 2 % senior notes from the open market for an aggregate purchase price of $ 44.5 million . on may 17 , 2010 , the company redeemed the remaining $ 54.5 million of the 9 1 / 2 % senior notes at a purchase price equal to the principal amount . the funds to repurchase these notes were from the $ 102.2 million cash received from of the issuance of the 12 1 / 2 % senior notes along with the borrowings under our bank credit facility . on september 2 , 2010 , the company repurchased $ 10.8 million of the outstanding $ 105.0 million principal amount of its 12 1 / 2 % senior notes from the open market for an aggregate purchase price of $ 11.0 million . the company retired these notes and wrote-off the purchase premium and the deferred financing cost related to the repurchase . the company increased its borrowing under the unsecured revolving credit facility in connection with the repurchase . pursuant to the terms of the 12 1 / 2 % senior notes , the company is required to offer to purchase from all noteholders , on a pro rata basis , an aggregated principal amount of $ 5.9 million of the 12 1 / 2 % senior notes at a purchase price of 103.000 % ( plus accrued interest to the redemption date ) .
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 Suspicious Activity Report : when used in this report , the words may ,  will ,  should ,  would ,  anticipate ,  estimate ,  expect ,  plan ,  believe ,  predict ,  potential ,  intend ,  and similar expressions are intended to identify forward looking statements . forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected . these risks and uncertainties include , but are not limited to , changes in sales or industry trends , changes in economic conditions , competition , retention of senior management and other key personnel , availability of materials or components , ability to make continued product innovations , casualty or work stoppages at our facilities , adverse results of lawsuits against us and currency exchange rates , the availability of financing and other factors describe in item 1a . risk factors. forward looking statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical trends , current conditions , expected future developments and other factors they believe to be appropriate . readers of this report are cautioned not to place undue reliance on these forward looking statements as there can be no assurance that these forward looking statements will prove to be accurate . our actual results could differ materially from those currently anticipated and discussed in the forward-looking statements as a result of risks and uncertainties set forth in this memorandum , including those set forth in item 1a . risk factors. management undertakes no obligation to update any forward looking statements . this cautionary statement is applicable to all forward looking statements contained in this report . overview we are a leading manufacturer of projection screens primarily focused on the premium end of the large screen market . projection screens are our main product line , and we produce three types : ( 1 ) electrically operated screens , which have the ability to retract into a concealed ceiling recess or into a wall-mounted case ; ( 2 ) wall screens , which are normally mounted on an exposed wall surface and may either be manually retractable or attached to a rigid frame ; and ( 3 ) portable screens that can easily be set up and removed . we also manufacture and sell custom engineered rear projection systems and complementary presentation products , including lecterns , easels , audio visual carts , conference cabinets , projector mounts and brackets for larger flat-panel displays . projection screens sales accounted for 85 % of our net sales in 2010 and 2009. improved capabilities , lower costs and greater portability of projectors , together with improved presentation tools , have driven projection screen sales in recent years . projector sales by other companies are a primary driver of the demand for our projection screens . many customers purchase projection screens as part of their installation of a new audio visual system or in connection with an upgrade of their existing audio visual systems . outlook we believe that our primary competitive strengths are the quality and innovation of our products , the breadth of our product line and our excellent customer service . sales for 2011 are difficult to forecast because we do not operate with a significant order backlog . however , we believe that we will continue to develop and market products to compete successfully . 18 distributions ( other than tax related distributions ) to shareholders were stopped in 2009 and are not currently contemplated in 2011. we currently believe that cash generated from operations will be sufficient to cover our operating requirements , although there can be no assurances in this regard . results of operations year ended december 31 , 2010 , compared with year ended january 1 , 2010 net sales . net sales were $ 131.9 million for 2010 , as compared to net sales of $ 130.3 million for 2009 , an increase of $ 1.6 million or 1.2 % . net sales by our united states ( u.s. ) operations increased 2.1 % . in the u.s. , electric screen sales increased $ 1.4 million , wall screen sales decreased $ 0.5 million , portable screens sales increased $ 0.8 million and other products increased $ 0.7 million . overall sales were positively impacted by an improvement in the economy , in the hospitality , business/it and housing markets . portable screen sales were positively impacted by a slight increase in demand from the rental and staging markets within the broader hospitality market . net sales from our european subsidiaries decreased by $ 0.7 million or 3.6 % . the stronger dollar resulted in a decrease of $ 1.0 million in net sales . cost of sales . cost of sales were $ 80.5 million for 2010 , as compared to $ 83.9 million for 2009 , a decrease of $ 3.4 million or 4.0 % . as a percentage of net sales , the cost of sales represented 61.0 % and 64.4 % for 2010 and 2009 , respectively . this constitutes a 3.4 percentage point increase in margin . this overall increase resulted primarily from the decrease in material cost in the u.s. facilities and increased adoption of lean manufacturing techniques . margins at our u.s. facilities increased 2.9 points due to sourcing lower-cost materials and components internationally , while margins at our european operations increased 1.5 points . selling , general and administrative expenses . story_separator_special_tag during 2009 , we recorded income resulting from the discounts realized in retiring $ 21.7 million of our 9 1 / 2 % senior notes ; in 2008 , we recorded income from the discounts realized in retiring $ 9.3 million of our 9 1 / 2 % senior notes . income taxes . as a subchapter s corporation for united states tax purposes , we are generally not subject to united states federal and state income taxation . rather , our income , gains , losses , deductions and credits flow through to our shareholders and we make distributions to them to meet their tax obligations at an assumed maximum federal and state tax rate ( based on the state with the highest tax rate in which any of our shareholders reside ) . this assumed rate was 40.4 % during 2009 and 2008. the company pays foreign income taxes on the earnings of its european subsidiaries . net income . as a result of the aforementioned factors , net income decreased $ 15.2 million from $ 26.5 million in 2008 to $ 11.3 million in 2009 . 20 story_separator_special_tag the distributions ( other than tax related distributions ) to our stockholders to a monthly rate of $ 0.14 per share or $ 0.7 million in the aggregate in april of 2009 and discontinued making distributions ( other than tax related distributions ) thereafter . 22 inflation we manage our inflation risks by ongoing review of product selling prices and production costs . management does not believe that inflation risks are material to our business , our consolidated financial position , results of operations or cash flows . however , there can be no assurance that future inflation will not have an adverse impact on our operating results and financial condition . environmental we have incurred and in the future will continue to incur expenditures for matters relating to environmental control , remediation , monitoring and compliance . our management believes that compliance with current environmental laws and regulations is not likely to have a material adverse effect on our financial condition , the results of our operations or our liquidity . however , environmental laws and regulations have changed rapidly in recent years and we may become subject to more stringent environmental laws and regulations in the future . critical accounting policies and estimates the preparation of financial statements in accordance with accounting principles generally accepted in the united states of america requires that management make a number of assumptions and estimates that affect the reported amounts of assets , liabilities , revenue and expenses in the consolidated financial statements and accompanying notes . management bases its estimates on historical experience and various other assumptions believed to be reasonable . although these estimates are based on management 's best knowledge of current events and actions that may impact us in the future , actual results may differ from these estimates and assumptions . our critical accounting policies are those that affect our consolidated financial statements materially and involve a significant level of judgment by management . revenue recognition we recognize revenue when we receive an order from a customer , title has transferred to a customer , the sales price is fixed or determinable and the collectability of the sales price is reasonably assured . all amounts billed to customers in a sales transaction related to shipping and handling are recorded as revenue , and costs incurred by us for shipping and handling are recorded as cost of sales . provision for customer sales allowances , returns and warranties are made at the time of shipment . we do not have any post-shipment obligations related to our sales such as installation , training or customer acceptance . allowance for doubtful accounts the financial status of customers is routinely checked and monitored by us when granting credit . we provide an allowance for doubtful accounts based upon historical experience and management 's estimate of amounts to be collected from past due accounts . if circumstances change , for example , due to the occurrence of higher-than-expected defaults or a significant adverse change in a major customer 's ability to meet its financial obligations to us , estimates of recoverability of receivable amounts due could be reduced . 23 goodwill goodwill represents the excess of purchase price over the fair value of identifiable net assets acquired . we apply the provisions of financial accounting standards board ( fasb ) accounting standards codification asc 350 intangibles-goodwill and other and management tests goodwill for impairment to determine whether its carrying value exceeds its implied fair value at least annually or more frequently if events or circumstances indicate that the carrying amount of goodwill may be impaired . the company has three reporting units ( da-lite us , procolor s.a.s , and projecta bv ) of which only da-lite us had goodwill as of december 31 , 2010. the company 's annual impairment testing date is the last day of the fiscal year . the goodwill impairment test involves a two-step process . the first step is a comparison of each reporting unit 's fair value to its carrying value . the company estimates fair value based on a combination of the market value approach and income approach using discounted cash flows . these valuations are based on assumptions and estimates including projected future cash flows , discount rates , and determination of appropriate market comparables . the fair value of each reporting unit is estimated using both methods and each method is given equal weighting in arriving at the fair value of the reporting unit . the second step , if needed , requires us to allocate the fair value of the reporting unit derived in the first step to the fair value of the reporting unit 's net assets to calculate the implied value of the goodwill . if the carrying value of the reporting unit 's goodwill is in excess

