these sections should be read in conjunction with the more detailed discussion and analysis of our consolidated financial condition and results of operations in this item 7 , our “ risk factors ” section included in item 1a of part i , and our consolidated financial statements and notes thereto included in item 8 of part ii of this report . business and market environment at juniper networks , we design , develop , and sell products and services that together provide our customers with a high-performance network infrastructure built on simplicity , security , openness , and scale . we serve the high-performance networking requirements of global service providers , enterprises , governments , and research and public sector organizations that view the network as critical to their success . our core competencies in hardware systems , silicon design , network architecture , and our open cross-network software platform are helping customers achieve superior performance , greater choice and flexibility , while reducing overall total cost of ownership . we do business in three geographic regions : americas , emea , and apac . beginning in the first quarter of 2012 , we aligned our organizational structure to focus on our platform and software strategy , which resulted in two business segments organized principally by product families : psd and ssd . our psd segment primarily offers scalable routing and switching products that are used in service provider , enterprise , and public sector networks to control and direct network traffic between data centers , core , edge , aggregation , campus , wans , branch , and consumer and business devices . our ssd segment offers software solutions focused on network security and network services applications for both service providers and enterprise customers . both segments offer worldwide services , including technical support and professional services , as well as educational and training programs to our customers . 32 we remain focused on a common vision for the new network and we believe that the organizational structure we have in place will effectively drive our innovative portfolio and support our customers ' next-generation network requirements . together , our high-performance product and service offerings help our customers to convert legacy networks that provide commoditized services into more valuable assets that provide differentiation , value , increased performance , reliability , and security to end-users . we remain dedicated to uncovering new ideas and innovations that will serve the exponentially increasing demands of the networked world , and we will endeavor to continue to build solutions that center on simplification , automation , and open innovation . during 2012 , we saw moderate growth in some of our primary markets . we continued to experience an uncertain global macroeconomic environment in which our customers exercised care and conservatism in their investment prioritization and project deployments . we expect that our customers will continue to remain cautious with their capital spending in the near term . we also continued to experience declining product gross margins and pricing pressures from our competitors . we believe our product gross margins may continue to decline in the future , offset by operational improvements and cost efficiencies . nevertheless , we are focused on executing our strategy to address the market trends of mobile internet and cloud computing and we continue to see positive long-term fundamentals for high-performance networking . we continue to invest in innovation and strengthening our product portfolio , which resulted in new product offerings during 2012 , including a smaller version of our qfabric solutions , the latest qfx3000-m qfabric system , t4000 core routers , ptx series packet transport switches . additionally , we experienced new customer wins contributing to the growth in the ex series , mx series , and srx series . we launched the new acx series router with support for both ethernet access/aggregation and mpls , which extends network intelligence closer to the subscriber and features an open , standards-based management system with software development kit ( `` sdk `` ) -enabled programmability to enable rapid third-party innovation . we also announced new products and features in our simply connected portfolio , including srx series services gateways and wla series wireless lan access points , which simplify and secure mobile device access to enterprise networks . furthermore , we acquired mykonos web security software , in february 2012 to complement our network security applications portfolio . additionally , we announced innovative products to enable service providers to rapidly deliver and expand new consumer and business services . these products include our mx2020 and mx2010 3d universal edge routers and new junosv app engine , which enable service providers to transform the network edge into a platform for rapid service deployment . we also launched the junos content encore with mx application services modular line card , which enables the delivery of premium content services over broadband connections across multiple device types . furthermore , we announced a technology partnership with riverbed technology , inc. ( `` riverbed `` ) that provides us with new capabilities for application delivery control , in exchange for juniper providing wan acceleration technology to riverbed , along with promoting riverbed as its wan optimization provider of choice going forward . throughout 2012 , we focused on improved operational execution , continued innovation , and prudent capital allocation . we continue to believe that the underlying trends driving network investment around the cloud and mobility are intact and remain strong . during 2012 , we also initiated a variety of actions to ensure we are positioned for the future , resulting in a restructuring plan ( the `` 2012 restructuring plan `` ) to bring our cost structure more in line with our desired long-term financial and strategic model . the 2012 restructuring plan consists of workforce reductions , facility consolidations or closures , and supply chain and procurement efficiencies . story_separator_special_tag tpe of selling price is established by evaluating largely interchangeable competitor products or services in stand-alone sales to similarly situated customers . esp is established considering internal factors such as margin objectives , pricing practices and controls , customer segment pricing strategies and product life cycle . consideration is also given to market conditions such as industry pricing strategies and technology life cycles . when determining esp , we apply management judgment to establish margin objectives and pricing strategies and to evaluate market conditions and product life cycles . we do not use tpe as we do not consider our products to be similar or interchangeable to our competitors ' products in standalone sales to similarly situated customers . revenue from maintenance service contracts is deferred and recognized ratably over the contractual support period , which is generally one to three years . we applied esp to the majority of our product revenue and vsoe to our service revenue in 2012 , 2011 , and 2010. share-based compensation . we recognize share-based compensation expense for all share-based payment awards including stock options , rsus , rsas , psas , and purchases under our employee stock purchase plan ( `` espp `` ) based on each award 's fair value on the grant date . we utilize the black-scholes-merton ( “ bsm ” ) option-pricing model in order to determine the fair value of stock options and espp . the bsm model requires various highly subjective assumptions including volatility , expected award life , and risk-free interest rate . the expected volatility is based on the implied volatility of market traded options on our common stock , adjusted for other relevant factors including historical volatility of our common stock over the most recent period commensurate with the estimated expected life of our stock options . the expected life of an award is based on historical experience . we determine the fair value of rsus , rsas and psas based on the closing market price of our common stock on the date of grant . in addition , we use significant judgment in estimating share-based compensation expense for our psas based on the vesting criteria and only recognize expense for the portions in which annual targets have been set . the assumptions used in calculating the fair value of share-based payment awards represent management 's best estimates . these estimates involve inherent uncertainties and the application of management 's judgment . if factors change and different assumptions are used , our share-based compensation expense could be materially different in the future . additionally , we are required to estimate the expected forfeiture rate based on historical experience , as well as judgment , and recognize expense only for those expected-to-vest shares . if our actual forfeiture rate is materially different from our estimate , our recorded share-based compensation expense could be different . income taxes . we are subject to income taxes in the united states and numerous foreign jurisdictions . significant judgment is required in evaluating our uncertain tax positions and determining our provision for income taxes . although we believe our reserves are reasonable , no assurance can be given that the final tax outcome of these matters will not be different from that which is reflected in our historical income tax provisions and accruals . we adjust these reserves in light of changing facts and circumstances , such as the closing of a tax audit or the refinement of an estimate . to the extent that the final tax outcome of these matters is different that the amounts recorded , such differences will affect the provision for income taxes in the period in which such determination is made . significant judgment is also required in determining any valuation allowance recorded against deferred tax assets . in assessing the need for a valuation allowance , we consider all available evidence , including past operating results , estimates of future taxable income , and the feasibility of tax planning strategies . in the event that we change our determination as to the amount of deferred tax assets that can be realized , we will adjust our valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made . 37 our provision for income taxes is subject to volatility and could be adversely affected by earnings being lower than anticipated in countries that have lower tax rates and higher than anticipated in countries that have higher tax rates ; by changes in the valuation of our deferred tax assets and liabilities ; by expiration of or lapses in the r & d tax credit laws ; by transfer pricing adjustments , including the effect of acquisitions on our intercompany r & d cost-sharing arrangement and legal structure ; by tax effects of nondeductible compensation ; by tax costs related to intercompany realignments ; by changes in accounting principles ; or by changes in tax laws and regulations , including possible u.s. changes to the taxation of earnings of our foreign subsidiaries , the deductibility of expenses attributable to foreign income , or the foreign tax credit rules . significant judgment is required to determine the recognition and measurement attributes prescribed in the accounting guidance for uncertainty in income taxes . the accounting guidance for uncertainty in income taxes applies to all income tax positions , including the potential recovery of previously paid taxes , which if settled unfavorably could adversely affect our provision for income taxes or additional paid-in capital . in addition , we are subject to the continuous examination of our income tax returns by the internal revenue service ( “ irs ” ) and other tax authorities . we regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes . there can be no assurance that the outcomes from these continuous examinations will not have an adverse effect

liquidity and capital resources historically , we have funded our business primarily through our operating activities and the issuance of our common stock , and more recently , the issuance of the notes . the following table shows our capital resources ( in millions , except percentages ) : replace_table_token_15_th the significant components of our working capital are cash and cash equivalents , short-term investments , and accounts receivable , reduced by accounts payable , accrued liabilities , and short-term deferred revenue . working capital decreased by $ 794.3 million in the year ended december 31 , 2012 , primarily due to a higher cash and cash equivalent balance at december 31 , 2011 as a result of the issuance of the notes in march 2011 and a decrease in accounts receivables , offset by decreases in accounts payable and short-term deferred revenue . summary of cash flows as of december 31 , 2012 , our cash and cash equivalents decreased by $ 502.6 million from december 31 , 2011 . this decrease was mainly the result of cash used in our investing and financing activities of $ 596.7 million and $ 548.3 million , respectively , offset by $ 642.4 million generated from operating activities . operating activities net cash provided by operating activities was $ 642.4 million , $ 986.7 million , and $ 812.3 million , for 2012 , 2011 , and 2010 , respectively . cash flows from operations decreased by $ 344.3 million in 2012 , compared to 2011 , primarily due to lower consolidated net income , higher taxes paid , timing of payments to our vendors , and a decrease in deferred revenue , offset by the timing of collections on our outstanding receivables .


 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 historically , we have funded our business primarily through our operating activities and the issuance of our common stock , and more recently , the issuance of the notes . the following table shows our capital resources ( in millions , except percentages ) : replace_table_token_15_th the significant components of our working capital are cash and cash equivalents , short-term investments , and accounts receivable , reduced by accounts payable , accrued liabilities , and short-term deferred revenue . working capital decreased by $ 794.3 million in the year ended december 31 , 2012 , primarily due to a higher cash and cash equivalent balance at december 31 , 2011 as a result of the issuance of the notes in march 2011 and a decrease in accounts receivables , offset by decreases in accounts payable and short-term deferred revenue . summary of cash flows as of december 31 , 2012 , our cash and cash equivalents decreased by $ 502.6 million from december 31 , 2011 . this decrease was mainly the result of cash used in our investing and financing activities of $ 596.7 million and $ 548.3 million , respectively , offset by $ 642.4 million generated from operating activities . operating activities net cash provided by operating activities was $ 642.4 million , $ 986.7 million , and $ 812.3 million , for 2012 , 2011 , and 2010 , respectively . cash flows from operations decreased by $ 344.3 million in 2012 , compared to 2011 , primarily due to lower consolidated net income , higher taxes paid , timing of payments to our vendors , and a decrease in deferred revenue , offset by the timing of collections on our outstanding receivables .
```    
 Suspicious Activity Report : these sections should be read in conjunction with the more detailed discussion and analysis of our consolidated financial condition and results of operations in this item 7 , our “ risk factors ” section included in item 1a of part i , and our consolidated financial statements and notes thereto included in item 8 of part ii of this report . business and market environment at juniper networks , we design , develop , and sell products and services that together provide our customers with a high-performance network infrastructure built on simplicity , security , openness , and scale . we serve the high-performance networking requirements of global service providers , enterprises , governments , and research and public sector organizations that view the network as critical to their success . our core competencies in hardware systems , silicon design , network architecture , and our open cross-network software platform are helping customers achieve superior performance , greater choice and flexibility , while reducing overall total cost of ownership . we do business in three geographic regions : americas , emea , and apac . beginning in the first quarter of 2012 , we aligned our organizational structure to focus on our platform and software strategy , which resulted in two business segments organized principally by product families : psd and ssd . our psd segment primarily offers scalable routing and switching products that are used in service provider , enterprise , and public sector networks to control and direct network traffic between data centers , core , edge , aggregation , campus , wans , branch , and consumer and business devices . our ssd segment offers software solutions focused on network security and network services applications for both service providers and enterprise customers . both segments offer worldwide services , including technical support and professional services , as well as educational and training programs to our customers . 32 we remain focused on a common vision for the new network and we believe that the organizational structure we have in place will effectively drive our innovative portfolio and support our customers ' next-generation network requirements . together , our high-performance product and service offerings help our customers to convert legacy networks that provide commoditized services into more valuable assets that provide differentiation , value , increased performance , reliability , and security to end-users . we remain dedicated to uncovering new ideas and innovations that will serve the exponentially increasing demands of the networked world , and we will endeavor to continue to build solutions that center on simplification , automation , and open innovation . during 2012 , we saw moderate growth in some of our primary markets . we continued to experience an uncertain global macroeconomic environment in which our customers exercised care and conservatism in their investment prioritization and project deployments . we expect that our customers will continue to remain cautious with their capital spending in the near term . we also continued to experience declining product gross margins and pricing pressures from our competitors . we believe our product gross margins may continue to decline in the future , offset by operational improvements and cost efficiencies . nevertheless , we are focused on executing our strategy to address the market trends of mobile internet and cloud computing and we continue to see positive long-term fundamentals for high-performance networking . we continue to invest in innovation and strengthening our product portfolio , which resulted in new product offerings during 2012 , including a smaller version of our qfabric solutions , the latest qfx3000-m qfabric system , t4000 core routers , ptx series packet transport switches . additionally , we experienced new customer wins contributing to the growth in the ex series , mx series , and srx series . we launched the new acx series router with support for both ethernet access/aggregation and mpls , which extends network intelligence closer to the subscriber and features an open , standards-based management system with software development kit ( `` sdk `` ) -enabled programmability to enable rapid third-party innovation . we also announced new products and features in our simply connected portfolio , including srx series services gateways and wla series wireless lan access points , which simplify and secure mobile device access to enterprise networks . furthermore , we acquired mykonos web security software , in february 2012 to complement our network security applications portfolio . additionally , we announced innovative products to enable service providers to rapidly deliver and expand new consumer and business services . these products include our mx2020 and mx2010 3d universal edge routers and new junosv app engine , which enable service providers to transform the network edge into a platform for rapid service deployment . we also launched the junos content encore with mx application services modular line card , which enables the delivery of premium content services over broadband connections across multiple device types . furthermore , we announced a technology partnership with riverbed technology , inc. ( `` riverbed `` ) that provides us with new capabilities for application delivery control , in exchange for juniper providing wan acceleration technology to riverbed , along with promoting riverbed as its wan optimization provider of choice going forward . throughout 2012 , we focused on improved operational execution , continued innovation , and prudent capital allocation . we continue to believe that the underlying trends driving network investment around the cloud and mobility are intact and remain strong . during 2012 , we also initiated a variety of actions to ensure we are positioned for the future , resulting in a restructuring plan ( the `` 2012 restructuring plan `` ) to bring our cost structure more in line with our desired long-term financial and strategic model . the 2012 restructuring plan consists of workforce reductions , facility consolidations or closures , and supply chain and procurement efficiencies . story_separator_special_tag tpe of selling price is established by evaluating largely interchangeable competitor products or services in stand-alone sales to similarly situated customers . esp is established considering internal factors such as margin objectives , pricing practices and controls , customer segment pricing strategies and product life cycle . consideration is also given to market conditions such as industry pricing strategies and technology life cycles . when determining esp , we apply management judgment to establish margin objectives and pricing strategies and to evaluate market conditions and product life cycles . we do not use tpe as we do not consider our products to be similar or interchangeable to our competitors ' products in standalone sales to similarly situated customers . revenue from maintenance service contracts is deferred and recognized ratably over the contractual support period , which is generally one to three years . we applied esp to the majority of our product revenue and vsoe to our service revenue in 2012 , 2011 , and 2010. share-based compensation . we recognize share-based compensation expense for all share-based payment awards including stock options , rsus , rsas , psas , and purchases under our employee stock purchase plan ( `` espp `` ) based on each award 's fair value on the grant date . we utilize the black-scholes-merton ( “ bsm ” ) option-pricing model in order to determine the fair value of stock options and espp . the bsm model requires various highly subjective assumptions including volatility , expected award life , and risk-free interest rate . the expected volatility is based on the implied volatility of market traded options on our common stock , adjusted for other relevant factors including historical volatility of our common stock over the most recent period commensurate with the estimated expected life of our stock options . the expected life of an award is based on historical experience . we determine the fair value of rsus , rsas and psas based on the closing market price of our common stock on the date of grant . in addition , we use significant judgment in estimating share-based compensation expense for our psas based on the vesting criteria and only recognize expense for the portions in which annual targets have been set . the assumptions used in calculating the fair value of share-based payment awards represent management 's best estimates . these estimates involve inherent uncertainties and the application of management 's judgment . if factors change and different assumptions are used , our share-based compensation expense could be materially different in the future . additionally , we are required to estimate the expected forfeiture rate based on historical experience , as well as judgment , and recognize expense only for those expected-to-vest shares . if our actual forfeiture rate is materially different from our estimate , our recorded share-based compensation expense could be different . income taxes . we are subject to income taxes in the united states and numerous foreign jurisdictions . significant judgment is required in evaluating our uncertain tax positions and determining our provision for income taxes . although we believe our reserves are reasonable , no assurance can be given that the final tax outcome of these matters will not be different from that which is reflected in our historical income tax provisions and accruals . we adjust these reserves in light of changing facts and circumstances , such as the closing of a tax audit or the refinement of an estimate . to the extent that the final tax outcome of these matters is different that the amounts recorded , such differences will affect the provision for income taxes in the period in which such determination is made . significant judgment is also required in determining any valuation allowance recorded against deferred tax assets . in assessing the need for a valuation allowance , we consider all available evidence , including past operating results , estimates of future taxable income , and the feasibility of tax planning strategies . in the event that we change our determination as to the amount of deferred tax assets that can be realized , we will adjust our valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made . 37 our provision for income taxes is subject to volatility and could be adversely affected by earnings being lower than anticipated in countries that have lower tax rates and higher than anticipated in countries that have higher tax rates ; by changes in the valuation of our deferred tax assets and liabilities ; by expiration of or lapses in the r & d tax credit laws ; by transfer pricing adjustments , including the effect of acquisitions on our intercompany r & d cost-sharing arrangement and legal structure ; by tax effects of nondeductible compensation ; by tax costs related to intercompany realignments ; by changes in accounting principles ; or by changes in tax laws and regulations , including possible u.s. changes to the taxation of earnings of our foreign subsidiaries , the deductibility of expenses attributable to foreign income , or the foreign tax credit rules . significant judgment is required to determine the recognition and measurement attributes prescribed in the accounting guidance for uncertainty in income taxes . the accounting guidance for uncertainty in income taxes applies to all income tax positions , including the potential recovery of previously paid taxes , which if settled unfavorably could adversely affect our provision for income taxes or additional paid-in capital . in addition , we are subject to the continuous examination of our income tax returns by the internal revenue service ( “ irs ” ) and other tax authorities . we regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes . there can be no assurance that the outcomes from these continuous examinations will not have an adverse effect

