the sales growth in brazil is a result of increasing demand for franklin submersible pumps and motors , customer acceptance of the many product line upgrades that have been implemented over the past two years , and general market conditions . new distribution outlets in chile and colombia contributed to significantly increased sales in these markets compared to 2013. these sales increases were partially offset with lower sales in argentina . water systems sales in the middle east and africa were about 11 percent of consolidated sales and increased by about 2 percent compared to 2013. water systems sales in the middle east and africa were reduced by $ 11.3 million or about 10 13 percent in the year due to foreign currency translation . excluding acquisitions and the impact of foreign currency translation , sales were up about 11 percent compared to 2013. the growth was driven by strong sales of groundwater pumping equipment in turkey . water systems sales in europe were about 8 percent of consolidated sales and grew by about 11 percent compared to the prior year . acquisition related sales during 2014 were about 2 percent in europe . foreign currency translation rate changes decreased sales by about 1 percent compared to sales in 2013. excluding acquisitions and foreign currency translation , european sales grew by about 10 percent during 2014. sales improvements in europe included growth in both groundwater pumping equipment and pioneer products . water systems sales in the asia pacific region were 7 percent of consolidated sales and grew by about 11 percent compared to the prior year . acquisition related sales during 2014 increased sales by about 7 percent in asia pacific . foreign currency translation rate changes decreased sales in 2014 in the asia pacific region by about 2 percent . excluding acquisitions and foreign currency translation sales grew by about 7 percent during 2014. sales in australia grew by about 28 percent led by improved pioneer product sales in the region and aided in part by the launch of the new solar powered water well pumping system . sales in taiwan and southeast asia grew by about 5 percent compared to the prior year , as the company continues to benefit from the improved customer service levels attributable to a new distribution center in singapore . these sales increases were partially offset by smaller declines in sales in japan and china . net sales-fueling systems fueling systems sales which represented 21 percent of consolidated sales were $ 223.2 million in 2014 , an increase of $ 24.1 million or about 12 percent versus 2013. the incremental impact of sales from acquired businesses was $ 0.1 million . foreign currency translation rate changes increased sales $ 0.7 million compared to sales in 2013. the sales change in 2014 , excluding acquisitions and foreign currency translation , was an increase of $ 23.3 million or about 12 percent . this growth was led by sales increases in developing markets , which grew by 15 percent compared to the prior year , as customers outside north america continue to invest in the company 's pressure pumping systems for transferring gasoline from underground tanks . as well , adoption of the company 's electronic fuel management products is increasing among international customers . fueling systems sales in more developed markets ; like the u.s. , canada and europe grew by about 11 percent compared to prior year . cost of sales cost of sales as a percent of net sales for 2014 and 2013 was 67.1 percent and 65.7 percent , respectively . correspondingly , the gross profit margin decreased to 32.9 percent from 34.3 percent , a 140 basis point decline . the gross profit margin change was due primarily to a sales revenue mix shift in the water systems segment , as groundwater pumping system sales have declined and surface pumping equipment system sales have increased , contributing significantly to lower gross profit margins in 2014. direct materials as a percentage of sales was 46.4 percent up 200 basis points compared to 44.4 percent last year . this increase in direct materials was partially offset by lower labor and burden costs . the company 's consolidated gross profit was $ 344.4 million for 2014 , up $ 12.9 million or 4 percent from 2013. selling , general and administrative ( “ sg & a ” ) selling , general , and administrative ( sg & a ) expenses were $ 227.7 million in 2014 and increased by $ 23.7 million or about 12 percent in 2014 compared to last year . in 2014 , increases in sg & a attributable to acquisitions were about $ 6 million or about 3 percent . additional year over year changes in sg & a costs were increases in marketing and selling-related expenses attributable to sales volume and higher research , development , and engineering expenses . restructuring expenses restructuring expenses for 2014 were $ 16.6 million and reduced diluted earnings per share by approximately $ 0.24. restructuring expenses in 2014 included severance costs , equipment relocation expenses , asset write-downs and primarily related to the closure of the wittlich , germany facility and other european manufacturing realignment activities . there were $ 3.7 million of restructuring expenses in 2013. operating income operating income was $ 100.1 million in 2014 , down $ 23.7 million from $ 123.8 million in 2013 . 14 replace_table_token_8_th there were specific items in 2014 and 2013 that impacted operating income that were not operational in nature . in 2014 they were as follows : there were $ 16.6 million of restructuring charges . restructuring expenses in 2014 were $ 14.7 million in severance cost , $ 1.7 million expenses related to equipment transfers , freight and other relocation costs and $ 0.2 million in asset write-offs primarily related to the transfer of production activities from germany to the czech republic and other continued manufacturing realignments . $ 3.2 story_separator_special_tag these initiatives include the startup of a pump rental business in the united kingdom , opening four new distribution centers in developing regions , sales and marketing costs for the new artificial lift product line and the rollout of the franklin control systems high horsepower drive and control products through the u.s. water systems distribution channel . operating income-fueling systems fueling systems operating income after non-gaap adjustments was $ 42.3 million in 2013 compared to $ 37.0 million after non-gaap adjustments in 2012 , an increase of 14 percent . the 2013 operating income margin after non-gaap adjustments was 21.2 percent and increased by 20 basis points compared to the 21.0 percent of net sales in 2012. this increased profitability was the result of operating leverage . operating income-other operating income-other is composed primarily of unallocated general and administrative expenses . general and administrative expenses were higher due to increases related to information technology expenditures for software , telephone and other erp integration costs as well as higher performance based and stock based compensation expenses . interest expense interest expense for 2013 and 2012 was $ 10.6 million and $ 10.2 million , respectively . other income or expense other income or expense was a gain of $ 1.7 million in 2013 and a gain of $ 14.9 million in 2012. included in other income or 21 expense in 2013 was interest income of $ 1.8 million , primarily derived from the investment of cash balances in short-term securities . included in other income in 2012 was a one-time gain on the pioneer transaction worth $ 12.2 million . the gain on the original investment the company held in pioneer arose as a the result of a new enterprise valuation of the pioneer entity compared to the book value of franklin electric 's equity investment in pioneer . also included in other income in 2013 was income from equity investments of $ 0.6 million and interest income of $ 2.3 million , primarily derived from the investment of cash balances in short-term securities . foreign exchange foreign currency-based transactions produced a loss for 2013 of $ 3.3 million , primarily due to the turkish lira , the euro , south african rand , brazilian real and canadian dollar relative to the u.s. dollar , none of which individually were significant . foreign currency-based transactions produced a loss for 2012 of $ 1.7 million , primarily due to the mexican peso , the euro , south african rand , brazilian real and czech koruna relative to the u.s. dollar , none of which individually were significant income taxes the provision for income taxes in 2013 and 2012 was $ 28.9 million and $ 32.2 million , respectively . the tax rate for 2013 was 25.9 percent and 2012 was 27.8 percent . the projected tax rate may differ from the statutory rate primarily due to the indefinite reinvestment of foreign earnings taxed at rates below the u.s. statutory rate as well as recognition of foreign tax credits . the company has the ability to indefinitely reinvest these foreign earnings based on the earnings and cash projections of its other operations as well as cash on hand and available credit . net income net income for 2013 was $ 82.7 million compared to 2012 net income of $ 83.7 million . net income attributable to franklin electric co. , inc. for 2013 was $ 82.0 million , or $ 1.68 per diluted share , compared to 2012 net income attributable to franklin electric co. , inc. of $ 82.9 million or $ 1.73 per diluted share . net income attributable to franklin electric co. , inc. after non-gaap adjustments for 2013 was $ 82.9 million , or $ 1.72 per diluted share , compared to 2012 net income attributable to franklin electric co. , inc. after non-gaap adjustments of $ 74.7 million or $ 1.57 per diluted share . there were specific items in 2013 and 2012 that impacted net income attributable to franklin electric co. , inc. that were not operational in nature . the company refers to these items as “ non-gaap adjustments ” for purposes of presenting the non-gaap financial measures of net income attributable to franklin electric co. , inc. and adjusted eps . the company believes this information helps investors understand underlying trends in the company 's business more easily . the differences between these non-gaap financial measures and the most comparable gaap measures are reconciled in the following tables : 22 replace_table_token_15_th replace_table_token_16_th story_separator_special_tag style= `` text-align : center ; `` > 24 consideration of $ 5.6 million to impo . in addition to the project bonds , the company refinanced the impo debt for $ 14.2 million and borrowed from and repaid on the revolver $ 17.0 million . in addition , the company completed the repurchase of 88,200 shares of the company 's common stock for $ 2.8 million pursuant to the company 's stock repurchase program , and received $ 9.6 million from employees as payment for the exercise price of their stock options and taxes owed upon the exercise of their stock options and release of their restricted awards . dividends in the amount of $ 15.3 million were paid to shareholders . during 2012 , the company completed the repurchase of 400,000 shares of the company 's common stock for $ 10.0 million pursuant to the company 's stock repurchase program . dividends in the amount of $ 13.8 million were paid to shareholders . at least annually the dividend policy is reviewed , and the company attempts to purchase shares annually to offset dilution of equity awards , but market conditions may prompt a perceived more efficient alternate use of cash . the company in recent history has not looked to the public capital markets for financing , and under current circumstances the company does not foresee a need to do so in the near future . aggregate contractual obligations

capital resources and liquidity overview the company 's primary sources of liquidity are cash on hand , cash flows from operations and long-term debt funds available . on december 31 , 2012 , the company , allen county , indiana , and certain institutional investors entered into a bond purchase and loan agreement . under the agreement , allen county , indiana issued a series of project bonds entitled “ taxable economic development bonds , series 2012 ( franklin electric co. , inc. project ) . ” the aggregate principal amount of the project bonds issued and authenticated was limited to $ 25.0 million . interest and principal balance of the project bonds are due and payable by the company directly to the institutional investors in aggregate semi-annual installments commencing on july 10 , 2013 , and concluding on january 10 , 2033. the company also has an amended and restated uncommitted note purchase and private shelf agreement ( the “ prudential agreement ” ) in the amount of $ 200.0 million , with $ 150.0 million of notes issued thereunder . the company has scheduled principal payments beginning in 2015 under the prudential agreement , at which time it amortizes for 5 years at an amount of 23 $ 30.0 million per year . as of january 3 , 2015 , the company had $ 50.0 million borrowing capacity under the prudential agreement . in addition , the company has a committed , unsecured , revolving credit agreement maturing on december 14 , 2016 ( the “ agreement ” ) in the amount of $ 150.0 million . as of january 3 , 2015 , the company had $ 144.9 million borrowing capacity under the agreement as $ 5.1 million in letters of commercial and standby letters of credit were outstanding and undrawn . there were no other outstanding borrowings as of january 3 , 2015 on the agreement . the agreement , the prudential agreement , and the project bonds contain customary affirmative and negative covenants . the affirmative covenants relate to financial statements , notices of material events , conduct of business , inspection of property , maintenance of insurance , compliance with laws , and most favored lender obligations .


 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.
     ```capital resources and liquidity overview the company 's primary sources of liquidity are cash on hand , cash flows from operations and long-term debt funds available . on december 31 , 2012 , the company , allen county , indiana , and certain institutional investors entered into a bond purchase and loan agreement . under the agreement , allen county , indiana issued a series of project bonds entitled “ taxable economic development bonds , series 2012 ( franklin electric co. , inc. project ) . ” the aggregate principal amount of the project bonds issued and authenticated was limited to $ 25.0 million . interest and principal balance of the project bonds are due and payable by the company directly to the institutional investors in aggregate semi-annual installments commencing on july 10 , 2013 , and concluding on january 10 , 2033. the company also has an amended and restated uncommitted note purchase and private shelf agreement ( the “ prudential agreement ” ) in the amount of $ 200.0 million , with $ 150.0 million of notes issued thereunder . the company has scheduled principal payments beginning in 2015 under the prudential agreement , at which time it amortizes for 5 years at an amount of 23 $ 30.0 million per year . as of january 3 , 2015 , the company had $ 50.0 million borrowing capacity under the prudential agreement . in addition , the company has a committed , unsecured , revolving credit agreement maturing on december 14 , 2016 ( the “ agreement ” ) in the amount of $ 150.0 million . as of january 3 , 2015 , the company had $ 144.9 million borrowing capacity under the agreement as $ 5.1 million in letters of commercial and standby letters of credit were outstanding and undrawn . there were no other outstanding borrowings as of january 3 , 2015 on the agreement . the agreement , the prudential agreement , and the project bonds contain customary affirmative and negative covenants . the affirmative covenants relate to financial statements , notices of material events , conduct of business , inspection of property , maintenance of insurance , compliance with laws , and most favored lender obligations .
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 Suspicious Activity Report : the sales growth in brazil is a result of increasing demand for franklin submersible pumps and motors , customer acceptance of the many product line upgrades that have been implemented over the past two years , and general market conditions . new distribution outlets in chile and colombia contributed to significantly increased sales in these markets compared to 2013. these sales increases were partially offset with lower sales in argentina . water systems sales in the middle east and africa were about 11 percent of consolidated sales and increased by about 2 percent compared to 2013. water systems sales in the middle east and africa were reduced by $ 11.3 million or about 10 13 percent in the year due to foreign currency translation . excluding acquisitions and the impact of foreign currency translation , sales were up about 11 percent compared to 2013. the growth was driven by strong sales of groundwater pumping equipment in turkey . water systems sales in europe were about 8 percent of consolidated sales and grew by about 11 percent compared to the prior year . acquisition related sales during 2014 were about 2 percent in europe . foreign currency translation rate changes decreased sales by about 1 percent compared to sales in 2013. excluding acquisitions and foreign currency translation , european sales grew by about 10 percent during 2014. sales improvements in europe included growth in both groundwater pumping equipment and pioneer products . water systems sales in the asia pacific region were 7 percent of consolidated sales and grew by about 11 percent compared to the prior year . acquisition related sales during 2014 increased sales by about 7 percent in asia pacific . foreign currency translation rate changes decreased sales in 2014 in the asia pacific region by about 2 percent . excluding acquisitions and foreign currency translation sales grew by about 7 percent during 2014. sales in australia grew by about 28 percent led by improved pioneer product sales in the region and aided in part by the launch of the new solar powered water well pumping system . sales in taiwan and southeast asia grew by about 5 percent compared to the prior year , as the company continues to benefit from the improved customer service levels attributable to a new distribution center in singapore . these sales increases were partially offset by smaller declines in sales in japan and china . net sales-fueling systems fueling systems sales which represented 21 percent of consolidated sales were $ 223.2 million in 2014 , an increase of $ 24.1 million or about 12 percent versus 2013. the incremental impact of sales from acquired businesses was $ 0.1 million . foreign currency translation rate changes increased sales $ 0.7 million compared to sales in 2013. the sales change in 2014 , excluding acquisitions and foreign currency translation , was an increase of $ 23.3 million or about 12 percent . this growth was led by sales increases in developing markets , which grew by 15 percent compared to the prior year , as customers outside north america continue to invest in the company 's pressure pumping systems for transferring gasoline from underground tanks . as well , adoption of the company 's electronic fuel management products is increasing among international customers . fueling systems sales in more developed markets ; like the u.s. , canada and europe grew by about 11 percent compared to prior year . cost of sales cost of sales as a percent of net sales for 2014 and 2013 was 67.1 percent and 65.7 percent , respectively . correspondingly , the gross profit margin decreased to 32.9 percent from 34.3 percent , a 140 basis point decline . the gross profit margin change was due primarily to a sales revenue mix shift in the water systems segment , as groundwater pumping system sales have declined and surface pumping equipment system sales have increased , contributing significantly to lower gross profit margins in 2014. direct materials as a percentage of sales was 46.4 percent up 200 basis points compared to 44.4 percent last year . this increase in direct materials was partially offset by lower labor and burden costs . the company 's consolidated gross profit was $ 344.4 million for 2014 , up $ 12.9 million or 4 percent from 2013. selling , general and administrative ( “ sg & a ” ) selling , general , and administrative ( sg & a ) expenses were $ 227.7 million in 2014 and increased by $ 23.7 million or about 12 percent in 2014 compared to last year . in 2014 , increases in sg & a attributable to acquisitions were about $ 6 million or about 3 percent . additional year over year changes in sg & a costs were increases in marketing and selling-related expenses attributable to sales volume and higher research , development , and engineering expenses . restructuring expenses restructuring expenses for 2014 were $ 16.6 million and reduced diluted earnings per share by approximately $ 0.24. restructuring expenses in 2014 included severance costs , equipment relocation expenses , asset write-downs and primarily related to the closure of the wittlich , germany facility and other european manufacturing realignment activities . there were $ 3.7 million of restructuring expenses in 2013. operating income operating income was $ 100.1 million in 2014 , down $ 23.7 million from $ 123.8 million in 2013 . 14 replace_table_token_8_th there were specific items in 2014 and 2013 that impacted operating income that were not operational in nature . in 2014 they were as follows : there were $ 16.6 million of restructuring charges . restructuring expenses in 2014 were $ 14.7 million in severance cost , $ 1.7 million expenses related to equipment transfers , freight and other relocation costs and $ 0.2 million in asset write-offs primarily related to the transfer of production activities from germany to the czech republic and other continued manufacturing realignments . $ 3.2 story_separator_special_tag these initiatives include the startup of a pump rental business in the united kingdom , opening four new distribution centers in developing regions , sales and marketing costs for the new artificial lift product line and the rollout of the franklin control systems high horsepower drive and control products through the u.s. water systems distribution channel . operating income-fueling systems fueling systems operating income after non-gaap adjustments was $ 42.3 million in 2013 compared to $ 37.0 million after non-gaap adjustments in 2012 , an increase of 14 percent . the 2013 operating income margin after non-gaap adjustments was 21.2 percent and increased by 20 basis points compared to the 21.0 percent of net sales in 2012. this increased profitability was the result of operating leverage . operating income-other operating income-other is composed primarily of unallocated general and administrative expenses . general and administrative expenses were higher due to increases related to information technology expenditures for software , telephone and other erp integration costs as well as higher performance based and stock based compensation expenses . interest expense interest expense for 2013 and 2012 was $ 10.6 million and $ 10.2 million , respectively . other income or expense other income or expense was a gain of $ 1.7 million in 2013 and a gain of $ 14.9 million in 2012. included in other income or 21 expense in 2013 was interest income of $ 1.8 million , primarily derived from the investment of cash balances in short-term securities . included in other income in 2012 was a one-time gain on the pioneer transaction worth $ 12.2 million . the gain on the original investment the company held in pioneer arose as a the result of a new enterprise valuation of the pioneer entity compared to the book value of franklin electric 's equity investment in pioneer . also included in other income in 2013 was income from equity investments of $ 0.6 million and interest income of $ 2.3 million , primarily derived from the investment of cash balances in short-term securities . foreign exchange foreign currency-based transactions produced a loss for 2013 of $ 3.3 million , primarily due to the turkish lira , the euro , south african rand , brazilian real and canadian dollar relative to the u.s. dollar , none of which individually were significant . foreign currency-based transactions produced a loss for 2012 of $ 1.7 million , primarily due to the mexican peso , the euro , south african rand , brazilian real and czech koruna relative to the u.s. dollar , none of which individually were significant income taxes the provision for income taxes in 2013 and 2012 was $ 28.9 million and $ 32.2 million , respectively . the tax rate for 2013 was 25.9 percent and 2012 was 27.8 percent . the projected tax rate may differ from the statutory rate primarily due to the indefinite reinvestment of foreign earnings taxed at rates below the u.s. statutory rate as well as recognition of foreign tax credits . the company has the ability to indefinitely reinvest these foreign earnings based on the earnings and cash projections of its other operations as well as cash on hand and available credit . net income net income for 2013 was $ 82.7 million compared to 2012 net income of $ 83.7 million . net income attributable to franklin electric co. , inc. for 2013 was $ 82.0 million , or $ 1.68 per diluted share , compared to 2012 net income attributable to franklin electric co. , inc. of $ 82.9 million or $ 1.73 per diluted share . net income attributable to franklin electric co. , inc. after non-gaap adjustments for 2013 was $ 82.9 million , or $ 1.72 per diluted share , compared to 2012 net income attributable to franklin electric co. , inc. after non-gaap adjustments of $ 74.7 million or $ 1.57 per diluted share . there were specific items in 2013 and 2012 that impacted net income attributable to franklin electric co. , inc. that were not operational in nature . the company refers to these items as “ non-gaap adjustments ” for purposes of presenting the non-gaap financial measures of net income attributable to franklin electric co. , inc. and adjusted eps . the company believes this information helps investors understand underlying trends in the company 's business more easily . the differences between these non-gaap financial measures and the most comparable gaap measures are reconciled in the following tables : 22 replace_table_token_15_th replace_table_token_16_th story_separator_special_tag style= `` text-align : center ; `` > 24 consideration of $ 5.6 million to impo . in addition to the project bonds , the company refinanced the impo debt for $ 14.2 million and borrowed from and repaid on the revolver $ 17.0 million . in addition , the company completed the repurchase of 88,200 shares of the company 's common stock for $ 2.8 million pursuant to the company 's stock repurchase program , and received $ 9.6 million from employees as payment for the exercise price of their stock options and taxes owed upon the exercise of their stock options and release of their restricted awards . dividends in the amount of $ 15.3 million were paid to shareholders . during 2012 , the company completed the repurchase of 400,000 shares of the company 's common stock for $ 10.0 million pursuant to the company 's stock repurchase program . dividends in the amount of $ 13.8 million were paid to shareholders . at least annually the dividend policy is reviewed , and the company attempts to purchase shares annually to offset dilution of equity awards , but market conditions may prompt a perceived more efficient alternate use of cash . the company in recent history has not looked to the public capital markets for financing , and under current circumstances the company does not foresee a need to do so in the near future . aggregate contractual obligations

