customers for optical communications products include network equipment manufacturers such as alcatel-lucent , ciena , cisco systems , ericsson , fujitsu , hewlett-packard , huawei , ibm , nokia siemens networks , and tellabs . customers for jdsu commercial lasers include amada , asml , beckman coulter , becton dickinson , disco , electro scientific industries , and han 's laser . customers for photovoltaic products include amplifier research , ets-lindgren , nanjing xinning optoelectronics automation and siemens . advanced optical technologies the aot business segment leverages its core technology strengths in optics and materials science to manage light and or color effects for a wide variety of marketsfrom product security to space exploration . aot consists of the authentication solutions group , the custom optics products group , and the flex products group . the authentication solutions group provides multilayer authentication solutions that include overt , covert , forensic , and digital technologies for protection from product and document counterfeiting and tampering . these solutions , many of which leverage aot color-shifting and holographic technologies , safeguard brands in the secure document , transaction card , pharmaceutical , consumer electronics , printing/imaging supplies , licensing , and fast-moving consumer goods industries . the custom optics group produces precise , high-performance , optical thin-film coatings for a variety of applications in government and aerospace , biomedical , display , office automation , entertainment , and other emerging markets . these applications include night-vision goggles , satellite solar covers , medical instrumentation , information displays , office equipment , computer-driven projectors , 3d cinema and gesture recognition . the flex products group includes custom color solutions , a product line of unique solutions for product finishes and a wide variety of decorative packaging . these include innovative , optically-based , light-management solutions that provide product enhancement for brands in the pharmaceutical , automotive , consumer electronics , and fast-moving consumer goods industries . the group 's high-end printing services produce labels for a wide variety of commercial and industrial products , and its color-shifting pigments protect the currencies of more than 90 countries including china , the european union , and the united states . 35 the aot business segment serves customers such as 3m , dolby , kingston , lockheed martin , northrup grumman , pan pacific , and sicpa . leading issuers of transaction cards such as mastercard and american express . also , pharmaceutical companies worldwide use aot business segment solutions to protect their brands . overview net revenue in fiscal 2011 increased 32.3 % , or $ 440.6 million , to $ 1,804.5 million from $ 1,363.9 million in fiscal 2010. net revenue in fiscal 2011 consisted of $ 803.0 million , or approximately 44.5 % of net revenue , from commtest , $ 770.8 million , or approximately 42.7 % of net revenue , from ccop , and $ 230.7 million , or approximately 12.8 % of net revenue , from aot . commtest net revenue excludes $ 11.7 million related to fair value adjustments of acquired deferred revenue . gross margin in fiscal 2011 increased 3.7 percentage points to 43.8 % from 40.1 % in fiscal 2010. the increase in gross margin was primarily related to lower infrastructure costs , benefits from economies of scale resulting from increased sales volumes , favorable product mix in commtest and ccop , and the introduction of new products in commtest and ccop in the last two years , as well as products acquired through the nsd acquisition . r & d expense in fiscal 2011 increased 37.2 % , or $ 65.0 million , to $ 239.9 million from $ 174.9 million in fiscal 2010. the increase is primarily due to additional investment associated with the nsd acquisition and an increased investment in organic r & d projects . as a percentage of revenue , r & d expense slightly increased to 13.3 % from 12.8 % in fiscal 2010. sg & a expense in fiscal 2011 increased 14.2 % , or $ 54.2 million , to $ 437.1 million from $ 382.9 million in fiscal 2010. the increase is primarily a result of higher selling costs due to increased revenue and an increased investment in information technology , together with increases associated with the nsd acquisition . as a percentage of revenue , sg & a expenses decreased to 24.2 % from 28.1 % in fiscal 2010. recently issued accounting pronouncements in june 2011 , the financial accounting standards board ( `` fasb `` ) issued amended guidance on the presentation of comprehensive income . the amended guidance eliminates one of the presentation options provided by current u.s. gaap that is to present the components of other comprehensive income as part of the statement of changes in stockholders ' equity . in addition , it gives an entity the option to present the total of comprehensive income , the components of net income , and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements . this guidance is effective for us in the third quarter of fiscal 2012 , and will be applied retrospectively . we are currently evaluating the disclosure impact of the adoption of this guidance on our consolidated financial statements . in may 2011 , the fasb issued amended guidance on fair value measurement and related disclosures . the new guidance clarified the concepts applicable for fair value measurement and requires new disclosures , with a particular focus on level 3 measurements . this guidance is effective for us in the third quarter of fiscal 2012 , and will be applied prospectively . we do not anticipate a material impact on our consolidated financial statements as a result of the adoption of this amended guidance . story_separator_special_tag circumstances which could trigger a review include , but are not limited to : significant decreases in the market price of the asset ; significant adverse changes in the business climate or legal factors ; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset ; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset ; and current expectation that the asset will more likely than not be sold or disposed of significantly before the end of its estimated useful life . recoverability is assessed based on the carrying amounts of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset , as well as specific appraisals in certain instances . an impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value . income taxes in accordance with the authoritative guidance on accounting for income taxes , we recognize income taxes using an asset and liability approach . this approach requires the recognition of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our consolidated financial statements or tax returns . the measurement of current and deferred taxes is based on provisions of the enacted tax law and the effects of future changes in tax laws or rates are not anticipated . the authoritative guidance provides for recognition of deferred tax assets if the realization of such deferred tax assets is more likely than not to occur . with the exception of certain international jurisdictions , we have determined that at this time it is more likely than not that deferred tax assets 41 attributable to the remaining jurisdictions will not be realized , primarily due to uncertainties related to our ability to utilize our net operating loss carryforwards before they expire . accordingly , we have established a valuation allowance for such deferred tax assets . if there is a change in our ability to realize our deferred tax assets , then our tax provision may decrease in the period in which we determine that realization is more likely than not . the authoritative guidance on accounting for uncertainty in income taxes clarifies the accounting for uncertainty in income taxes recognized in an entity 's financial statements and prescribes the recognition threshold and measurement attributes for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return . additionally , it provides guidance on recognition , classification , and disclosure of tax positions . we are subject to income tax audits by the respective tax authorities in all of the jurisdictions in which we operate . the determination of tax liabilities in each of these jurisdictions requires the interpretation and application of complex and sometimes uncertain tax laws and regulations . we recognize liabilities based on our estimate of whether , and the extent to which , additional tax liabilities are more likely than not . if we ultimately determine that the payment of such a liability is not necessary , then we reverse the liability and recognize a tax benefit during the period in which the determination is made that the liability is no longer necessary . the recognition and measurement of current taxes payable or refundable and deferred tax assets and liabilities requires that we make certain estimates and judgments . changes to these estimates or a change in judgment may have a material impact on our tax provision in a future period . restructuring accrual in accordance with authoritative guidance on accounting for costs associated with exit or disposal activities , generally costs associated with restructuring activities are recognized when they are incurred . however , in the case of leases , the expense is estimated and accrued when the property is vacated . given the significance of , and the timing of the execution of such activities , this process is complex and involves periodic reassessments of estimates made at the time the original decisions were made , including evaluating real estate market conditions for expected vacancy periods and sub-lease rents . a liability for post-employment benefits for workforce reductions related to restructuring activities is recorded when payment is probable , the amount is reasonably estimable , and the obligation relates to rights that have vested or accumulated . we continually evaluate the adequacy of the remaining liabilities under our restructuring initiatives . although we believe that these estimates accurately reflect the costs of our restructuring plans , actual results may differ , thereby requiring us to record additional provisions or reverse a portion of such provisions . pension and other postretirement benefits the funded status of our retirement-related benefit plans is recognized in the consolidated balance sheets . the funded status is measured as the difference between the fair value of plan assets and the benefit obligation at fiscal year end , the measurement date . for defined benefit pension plans , the benefit obligation is the projected benefit obligation ( `` pbo `` ) and for the nonpension postretirement benefit plan the benefit obligation is the accumulated postretirement benefit obligation ( `` apbo `` ) . the pbo represents the actuarial present value of benefits expected to be paid upon retirement . the apbo represents the actuarial present value of postretirement benefits attributed to employee services already rendered . the fair value of plan assets represents the current market value of cumulative company contributions made to an irrevocable trust fund , held for the sole benefit of participants . unfunded or partially funded plans , with the benefit obligation exceeding the fair value of plan assets , are aggregated and recorded as a retirement and

liquidity and capital resources our cash investments are made in accordance with an investment policy approved by the audit committee of our board of directors . in general , our investment policy requires that securities purchased be rated a-1/p-1 , a/a2 or better . securities that are downgraded subsequent to purchase are evaluated and may be sold or held at management 's discretion . no security may have an effective maturity that exceeds 37 months , and the average duration of our holdings may not exceed 18 months . at any time , no more than 5 % of the investment portfolio may be concentrated in a single issuer other than the u.s. government or u.s. agencies . our investments in debt securities and marketable equity securities are primarily classified as available-for-sale investments or trading securities and are recorded at fair value . the cost of securities sold is based on the specific identification method . unrealized gains and losses on available-for-sale investments are reported as a separate component of stockholders ' equity . we did not hold any investments in auction rate securities , mortgage backed securities , collateralized debt obligations , or variable rate demand notes at july 2 , 2011 and virtually all debt securities held were of investment grade ( at least bbb-/baa3 ) . as of july 2 , 2011 , approximately 85 % of our cash , cash equivalents , and short-term investments were held in the u.s. as of july 2 , 2011 , the majority of our cash investments have maturities of 90 days or less and are of high credit quality . during fiscal 2011 , we recognized $ 0.2 million of investment losses and can provide no assurances that the value or the liquidity of our other investments will not also be impacted by adverse conditions in the financial markets . in addition , we maintain cash balances in operating accounts that are with third party financial institutions . these balances in the u.s. may exceed the 58 federal deposit insurance corporation ( `` fdic '' ) insurance limits .


 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 our cash investments are made in accordance with an investment policy approved by the audit committee of our board of directors . in general , our investment policy requires that securities purchased be rated a-1/p-1 , a/a2 or better . securities that are downgraded subsequent to purchase are evaluated and may be sold or held at management 's discretion . no security may have an effective maturity that exceeds 37 months , and the average duration of our holdings may not exceed 18 months . at any time , no more than 5 % of the investment portfolio may be concentrated in a single issuer other than the u.s. government or u.s. agencies . our investments in debt securities and marketable equity securities are primarily classified as available-for-sale investments or trading securities and are recorded at fair value . the cost of securities sold is based on the specific identification method . unrealized gains and losses on available-for-sale investments are reported as a separate component of stockholders ' equity . we did not hold any investments in auction rate securities , mortgage backed securities , collateralized debt obligations , or variable rate demand notes at july 2 , 2011 and virtually all debt securities held were of investment grade ( at least bbb-/baa3 ) . as of july 2 , 2011 , approximately 85 % of our cash , cash equivalents , and short-term investments were held in the u.s. as of july 2 , 2011 , the majority of our cash investments have maturities of 90 days or less and are of high credit quality . during fiscal 2011 , we recognized $ 0.2 million of investment losses and can provide no assurances that the value or the liquidity of our other investments will not also be impacted by adverse conditions in the financial markets . in addition , we maintain cash balances in operating accounts that are with third party financial institutions . these balances in the u.s. may exceed the 58 federal deposit insurance corporation ( `` fdic '' ) insurance limits .
```    
 Suspicious Activity Report : customers for optical communications products include network equipment manufacturers such as alcatel-lucent , ciena , cisco systems , ericsson , fujitsu , hewlett-packard , huawei , ibm , nokia siemens networks , and tellabs . customers for jdsu commercial lasers include amada , asml , beckman coulter , becton dickinson , disco , electro scientific industries , and han 's laser . customers for photovoltaic products include amplifier research , ets-lindgren , nanjing xinning optoelectronics automation and siemens . advanced optical technologies the aot business segment leverages its core technology strengths in optics and materials science to manage light and or color effects for a wide variety of marketsfrom product security to space exploration . aot consists of the authentication solutions group , the custom optics products group , and the flex products group . the authentication solutions group provides multilayer authentication solutions that include overt , covert , forensic , and digital technologies for protection from product and document counterfeiting and tampering . these solutions , many of which leverage aot color-shifting and holographic technologies , safeguard brands in the secure document , transaction card , pharmaceutical , consumer electronics , printing/imaging supplies , licensing , and fast-moving consumer goods industries . the custom optics group produces precise , high-performance , optical thin-film coatings for a variety of applications in government and aerospace , biomedical , display , office automation , entertainment , and other emerging markets . these applications include night-vision goggles , satellite solar covers , medical instrumentation , information displays , office equipment , computer-driven projectors , 3d cinema and gesture recognition . the flex products group includes custom color solutions , a product line of unique solutions for product finishes and a wide variety of decorative packaging . these include innovative , optically-based , light-management solutions that provide product enhancement for brands in the pharmaceutical , automotive , consumer electronics , and fast-moving consumer goods industries . the group 's high-end printing services produce labels for a wide variety of commercial and industrial products , and its color-shifting pigments protect the currencies of more than 90 countries including china , the european union , and the united states . 35 the aot business segment serves customers such as 3m , dolby , kingston , lockheed martin , northrup grumman , pan pacific , and sicpa . leading issuers of transaction cards such as mastercard and american express . also , pharmaceutical companies worldwide use aot business segment solutions to protect their brands . overview net revenue in fiscal 2011 increased 32.3 % , or $ 440.6 million , to $ 1,804.5 million from $ 1,363.9 million in fiscal 2010. net revenue in fiscal 2011 consisted of $ 803.0 million , or approximately 44.5 % of net revenue , from commtest , $ 770.8 million , or approximately 42.7 % of net revenue , from ccop , and $ 230.7 million , or approximately 12.8 % of net revenue , from aot . commtest net revenue excludes $ 11.7 million related to fair value adjustments of acquired deferred revenue . gross margin in fiscal 2011 increased 3.7 percentage points to 43.8 % from 40.1 % in fiscal 2010. the increase in gross margin was primarily related to lower infrastructure costs , benefits from economies of scale resulting from increased sales volumes , favorable product mix in commtest and ccop , and the introduction of new products in commtest and ccop in the last two years , as well as products acquired through the nsd acquisition . r & d expense in fiscal 2011 increased 37.2 % , or $ 65.0 million , to $ 239.9 million from $ 174.9 million in fiscal 2010. the increase is primarily due to additional investment associated with the nsd acquisition and an increased investment in organic r & d projects . as a percentage of revenue , r & d expense slightly increased to 13.3 % from 12.8 % in fiscal 2010. sg & a expense in fiscal 2011 increased 14.2 % , or $ 54.2 million , to $ 437.1 million from $ 382.9 million in fiscal 2010. the increase is primarily a result of higher selling costs due to increased revenue and an increased investment in information technology , together with increases associated with the nsd acquisition . as a percentage of revenue , sg & a expenses decreased to 24.2 % from 28.1 % in fiscal 2010. recently issued accounting pronouncements in june 2011 , the financial accounting standards board ( `` fasb `` ) issued amended guidance on the presentation of comprehensive income . the amended guidance eliminates one of the presentation options provided by current u.s. gaap that is to present the components of other comprehensive income as part of the statement of changes in stockholders ' equity . in addition , it gives an entity the option to present the total of comprehensive income , the components of net income , and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements . this guidance is effective for us in the third quarter of fiscal 2012 , and will be applied retrospectively . we are currently evaluating the disclosure impact of the adoption of this guidance on our consolidated financial statements . in may 2011 , the fasb issued amended guidance on fair value measurement and related disclosures . the new guidance clarified the concepts applicable for fair value measurement and requires new disclosures , with a particular focus on level 3 measurements . this guidance is effective for us in the third quarter of fiscal 2012 , and will be applied prospectively . we do not anticipate a material impact on our consolidated financial statements as a result of the adoption of this amended guidance . story_separator_special_tag circumstances which could trigger a review include , but are not limited to : significant decreases in the market price of the asset ; significant adverse changes in the business climate or legal factors ; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset ; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset ; and current expectation that the asset will more likely than not be sold or disposed of significantly before the end of its estimated useful life . recoverability is assessed based on the carrying amounts of the asset and its fair value which is generally determined based on the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset , as well as specific appraisals in certain instances . an impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value . income taxes in accordance with the authoritative guidance on accounting for income taxes , we recognize income taxes using an asset and liability approach . this approach requires the recognition of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our consolidated financial statements or tax returns . the measurement of current and deferred taxes is based on provisions of the enacted tax law and the effects of future changes in tax laws or rates are not anticipated . the authoritative guidance provides for recognition of deferred tax assets if the realization of such deferred tax assets is more likely than not to occur . with the exception of certain international jurisdictions , we have determined that at this time it is more likely than not that deferred tax assets 41 attributable to the remaining jurisdictions will not be realized , primarily due to uncertainties related to our ability to utilize our net operating loss carryforwards before they expire . accordingly , we have established a valuation allowance for such deferred tax assets . if there is a change in our ability to realize our deferred tax assets , then our tax provision may decrease in the period in which we determine that realization is more likely than not . the authoritative guidance on accounting for uncertainty in income taxes clarifies the accounting for uncertainty in income taxes recognized in an entity 's financial statements and prescribes the recognition threshold and measurement attributes for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return . additionally , it provides guidance on recognition , classification , and disclosure of tax positions . we are subject to income tax audits by the respective tax authorities in all of the jurisdictions in which we operate . the determination of tax liabilities in each of these jurisdictions requires the interpretation and application of complex and sometimes uncertain tax laws and regulations . we recognize liabilities based on our estimate of whether , and the extent to which , additional tax liabilities are more likely than not . if we ultimately determine that the payment of such a liability is not necessary , then we reverse the liability and recognize a tax benefit during the period in which the determination is made that the liability is no longer necessary . the recognition and measurement of current taxes payable or refundable and deferred tax assets and liabilities requires that we make certain estimates and judgments . changes to these estimates or a change in judgment may have a material impact on our tax provision in a future period . restructuring accrual in accordance with authoritative guidance on accounting for costs associated with exit or disposal activities , generally costs associated with restructuring activities are recognized when they are incurred . however , in the case of leases , the expense is estimated and accrued when the property is vacated . given the significance of , and the timing of the execution of such activities , this process is complex and involves periodic reassessments of estimates made at the time the original decisions were made , including evaluating real estate market conditions for expected vacancy periods and sub-lease rents . a liability for post-employment benefits for workforce reductions related to restructuring activities is recorded when payment is probable , the amount is reasonably estimable , and the obligation relates to rights that have vested or accumulated . we continually evaluate the adequacy of the remaining liabilities under our restructuring initiatives . although we believe that these estimates accurately reflect the costs of our restructuring plans , actual results may differ , thereby requiring us to record additional provisions or reverse a portion of such provisions . pension and other postretirement benefits the funded status of our retirement-related benefit plans is recognized in the consolidated balance sheets . the funded status is measured as the difference between the fair value of plan assets and the benefit obligation at fiscal year end , the measurement date . for defined benefit pension plans , the benefit obligation is the projected benefit obligation ( `` pbo `` ) and for the nonpension postretirement benefit plan the benefit obligation is the accumulated postretirement benefit obligation ( `` apbo `` ) . the pbo represents the actuarial present value of benefits expected to be paid upon retirement . the apbo represents the actuarial present value of postretirement benefits attributed to employee services already rendered . the fair value of plan assets represents the current market value of cumulative company contributions made to an irrevocable trust fund , held for the sole benefit of participants . unfunded or partially funded plans , with the benefit obligation exceeding the fair value of plan assets , are aggregated and recorded as a retirement and

