the act provides for modest sequester relief in fy14 and provides the dod additional stability and flexibility to entertain multi-year contracts . while we monitor the budget process as it relates to programs in which we participate , we can not predict the ultimate impact of future dod budgets , which tend to fluctuate year-by-year and program-by-program . as a result , some of the budget reductions and program cancellations may negatively impact programs in which we participate . in our ground defense market , we anticipate ground vehicle upgrades and modernization programs to continue to be funded over the next five years , although the timing is uncertain following years of rapid growth from the supplemental defense budgets and the ongoing draw down of our forces from overseas operations . additionally , we expect to benefit from increased funding levels on c4isr , electronic warfare , unmanned systems , and communications programs within our aerospace defense market . in our naval defense market , we expect continued funding for the u.s. shipbuilding program , particularly as it relates to production on the cvn-79 ford class aircraft carrier . commercial aerospace approximately 17 % of our revenue is derived from the global commercial aerospace market , including the commercial jet , regional jet , and commercial helicopter markets . our primary focus in this market is oem products and services for commercial jets where we provide a combination of flight control and utility actuation systems , sensors , and other sophisticated electronics , as well as shot and laser peening services , to our primary customers , in boeing and airbus . shot and laser peening are also utilized on highly stressed components of turbine engine fan blades , landing gear , and aircraft structures . the largest driver of our commercial aerospace business is oem parts , which is highly dependent on new aircraft production . industry data supports a solid increase in commercial aircraft deliveries over the next few years , as 2011 marked the first year in a multi-year production up-cycle for the commercial aerospace market . in the current cycle , oem-oriented companies are expected to perform well , due to planned increases in production by boeing and airbus , on both legacy and new aircraft , with record-high backlogs on the latter . in addition , according to the international air transport association ( iata ) , air travel continues to be robust and is likely to reach almost 3.3 billion passenger miles in 2014 , although air freight is likely to remain relatively flat . as such , following a solid performance over the past three years , the commercial aerospace business is expected to continue its growth in 2014. industry experts also expect a modest growth outlook for both regional and business jets . oil and gas approximately 18 % of our revenue is derived from the oil and gas market . we have a diverse offering of products to the oil and gas market , including critical-function valves , valve systems , large process vessels , control electronics , and surface treatment services on highly stressed metal components . late in 2012 , we expanded our offering to service the emerging shale oil and gas market , including hydraulic fracturing ( fracking ) techniques , and are now able to support upstream , midstream and downstream product offerings . we also maintain a significant mro business that has been growing steadily for our pressure-relief valve technologies as refineries opportunistically service or upgrade equipment that has been operating at full capacity in recent years . in 2013 , our oil and gas revenues were diversified between the upstream production , processing and environmental solutions business , our global mro business , and our large capital projects business . 27 the most prevalent driver impacting this market is capital spending by refiners for maintenance , upgrades , capacity expansion , safety improvements , and compliance with environmental regulations , which is experienced by both our domestic and international customers . refiner profitability and global crude oil prices in general will impact their capital spending levels . in 2013 , the oil and gas market continued to be hampered by a reduction in new capital equipment orders due to a lack of capital spending , particularly in international markets , despite a strong rebound in mro activity . crude oil prices , based on west texas intermediate ( wti ) , averaged slightly less than $ 98/bbl in 2013 , reflecting generally moderate economic activity in the u.s. and europe and increasing north american supply . wti crude oil prices are forecasted to average $ 93/bbl in 2014 and $ 90/bbl during 2015 , according to the energy information administration ( eia ) , reflecting higher total crude oil production in 2013 despite ongoing uncertainty in several international markets . eia expects the discount of the wti crude oil price to brent crude oil to average $ 12/bbl in 2014. this increase in the projected wti discount reflects increasing uncertainty of the existing refinery infrastructure 's ability to absorb growing production of light sweet crude oil in north america at current prices . looking ahead , we believe a base level of maintenance capital spending will result in continued mro demand . furthermore , as global economies continue to rebound , we anticipate a modest turnaround in our large capital projects business . this includes our complete coker deheading system , which enables safer coke drum operation during the refining process . we also will look to capitalize on opportunities in the emerging shale oil and gas market , where we supply energy production and processing equipment and environmental solutions . longer term , as global dependence on natural resources persists , oil exploration deepens , and transport requirements widen , we anticipate additional opportunities will arise for energy products . story_separator_special_tag the increase in pension expense was primarily due to a decrease in the discount rate of our pension benefit obligation . interest expense interest expense increased $ 5 million to $ 26 million in 2012 , primarily due to higher average debt levels and borrowing rates compared to the same period in 2011. effective tax rate our effective tax rates for 2012 and 2011 were 31.8 % , and 28.9 % , respectively . the increase in the effective tax rate in 2012 , as compared to 2011 , is primarily due to a $ 4.1 million research and development tax credit recognized in 2011 that did not recur in the current year period . net earnings net earnings decreased $ 26 million to $ 92 million in 2012 , as compared to the prior year period , primarily due to the impacts of the strike and additional investments on the ap1000 program within our flow control segment , restructuring costs in our surface technologies segment , and higher interest expense and effective tax rates discussed above . 33 comprehensive income pension and postretirement adjustments for 2012 , the $ 16 million pension and postretirement loss in other comprehensive income was mainly due to the actuarial loss resulting from the annual year-end remeasurement . this was driven by a decrease in the cw plan discount rate from 4.5 % to 4.0 % and was partially offset by favorable asset return performance . foreign currency translation adjustments the increase in foreign currency translation adjustments to comprehensive income of $ 44 million , to $ 26 million in comprehensive income , for the twelve months ended december 31 , 2012 is primarily due to an increase in the canadian , british pound , and euro exchange rates during the twelve month period ended december 31 , 2012 as compared to an decrease in the canadian , british pound , and euro exchange rate during the twelve month period ended december 31 , 2011. backlog and new orders backlog decreased 2 % to $ 1,654 million at december 31 , 2012 from $ 1,695 million at december 31 , 2011. new orders decreased $ 48 million in 2012 as compared to the prior year period , primarily due to the timing of funding on certain naval defense programs and lower demand of capital refinery projects and services in the oil and gas market . acquisitions , net of divestitures , contributed $ 86 million of incremental new orders . results by business segment flow control the following tables summarize sales , operating income and margin , and new orders , and certain items impacting comparability within the flow control segment . replace_table_token_11_th ( 1 ) on august 24 , 2012 , workers at emd 's cheswick , pennsylvania facility went on strike . the financial impacts of the strike were an $ 18 million and $ 6 million shift in revenue and operating income , respectively , from 2012 to 2013 , due to the temporary suspension of work and an additional $ 5 million unfavorable impact to operating income as a result of unrecoverable absorption of overhead costs . on september 24 , 2012 , the company ratified an agreement with the union to end the strike . 34 components of sales and operating income growth ( decrease ) : replace_table_token_12_th year ended december 31 , 2013 compared to year ended december 31 , 2012 sales sales increased $ 204 million , or 19 % , to $ 1,300 million , as compared to the prior year period , primarily due to the incremental impact of our cimarron , phönix , and ap services acquisitions , which contributed $ 135 million , $ 53 million , and $ 17 million , of incremental sales , respectively . sales in the defense market increased 6 % due to increased production on the cvn -79 aircraft carrier program , the ramping up of production on the virginia class submarine program , and a new shipboard helicopter handling systems contract . this was partially offset by lower levels of production on the ddg-1000 and ddg-51 destroyer programs , and completion of production on the advanced arresting gear program . sales in the commercial market increased 24 % , primarily due to the incremental impact of our cimarron and phönix acquisitions , which favorably impacted sales in the oil and gas market , as well as our ap services acquisition , which favorably impacted sales in the power generation market . in the power generation market , excluding the impact of our ap services acquisition , higher sales of instrumentation and control products and deliveries of our spent fuel management netco snap-in® product used in existing operating reactors , more than offset competitive pressure from low natural gas prices and fewer plant outages . sales in the oil and gas market were essentially flat , excluding the impact of phönix and cimarron acquisitions , as increased pressure relief valve sales were mostly offset by lower levels of production for international capital refinery products . in the general industrial market , lower sales were primarily due to a previously announced customer loss . operating income operating income increased $ 38 million , or 48 % , to $ 117 million , and operating margin increased 180 basis points to 9.0 % . acquisitions contributed $ 9 million of incremental operating income . excluding the items impacting comparability noted in the first table above and the contributions from acquisitions , operating income was essentially flat as higher compensation costs partially offset improved performance in our oil and gas division as a result of in-sourcing cimarron manufacturing . backlog and new orders backlog decreased $ 29 million to $ 1,059 million as compared to the prior year period . new orders increased $ 256 million to $ 1,234 million , from the prior year period , primarily due to incremental new orders from acquisitions of $ 210 million .

debt issuances on february 26 , 2013 , the corporation issued $ 400 million of senior notes ( the `` 2013 notes '' ) . the 2013 notes consist of $ 225 million of 3.70 % senior notes that mature on february 26 , 2023 , $ 100 million of 3.85 % senior notes that mature on february 26 , 2025 , and $ 75 million of 4.05 % senior notes that mature on february 26 , 2028. an additional $ 100 million of 4.11 % senior notes were issued on september 26 , 2013 that mature on september 26 , 2028. the 2013 notes are senior unsecured obligations , equal in right of payment to the corporation 's existing senior indebtedness . the corporation , at its option , can prepay at any time all or any part of the 2013 notes , subject to a make-whole payment in accordance with the terms of the note purchase agreement . in connection with the issuance of the 2013 notes , the corporation paid customary fees that have been deferred and are being amortized over the term of the 2013 notes . under the terms of the note purchase agreement , the corporation is required to maintain certain financial ratios , the most restrictive of which is a debt to capitalization limit of 60 % . the debt to capitalization ratio is calculated using the same formula for all of the corporation 's debt agreements and is a measure of the corporation 's indebtedness ( as defined per the notes purchase agreement and credit agreement ) to capitalization , where capitalization equals debt plus equity . the corporation had the ability to borrow additional debt of $ 1.3 billion without violating our debt to capitalization covenant . the 2013 notes also contain a cross default provision with respect to the corporation 's other senior indebtedness . in september 2013 , we repaid the $ 125 million 2003 senior notes that had matured .


 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.
     ```debt issuances on february 26 , 2013 , the corporation issued $ 400 million of senior notes ( the `` 2013 notes '' ) . the 2013 notes consist of $ 225 million of 3.70 % senior notes that mature on february 26 , 2023 , $ 100 million of 3.85 % senior notes that mature on february 26 , 2025 , and $ 75 million of 4.05 % senior notes that mature on february 26 , 2028. an additional $ 100 million of 4.11 % senior notes were issued on september 26 , 2013 that mature on september 26 , 2028. the 2013 notes are senior unsecured obligations , equal in right of payment to the corporation 's existing senior indebtedness . the corporation , at its option , can prepay at any time all or any part of the 2013 notes , subject to a make-whole payment in accordance with the terms of the note purchase agreement . in connection with the issuance of the 2013 notes , the corporation paid customary fees that have been deferred and are being amortized over the term of the 2013 notes . under the terms of the note purchase agreement , the corporation is required to maintain certain financial ratios , the most restrictive of which is a debt to capitalization limit of 60 % . the debt to capitalization ratio is calculated using the same formula for all of the corporation 's debt agreements and is a measure of the corporation 's indebtedness ( as defined per the notes purchase agreement and credit agreement ) to capitalization , where capitalization equals debt plus equity . the corporation had the ability to borrow additional debt of $ 1.3 billion without violating our debt to capitalization covenant . the 2013 notes also contain a cross default provision with respect to the corporation 's other senior indebtedness . in september 2013 , we repaid the $ 125 million 2003 senior notes that had matured .
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 Suspicious Activity Report : the act provides for modest sequester relief in fy14 and provides the dod additional stability and flexibility to entertain multi-year contracts . while we monitor the budget process as it relates to programs in which we participate , we can not predict the ultimate impact of future dod budgets , which tend to fluctuate year-by-year and program-by-program . as a result , some of the budget reductions and program cancellations may negatively impact programs in which we participate . in our ground defense market , we anticipate ground vehicle upgrades and modernization programs to continue to be funded over the next five years , although the timing is uncertain following years of rapid growth from the supplemental defense budgets and the ongoing draw down of our forces from overseas operations . additionally , we expect to benefit from increased funding levels on c4isr , electronic warfare , unmanned systems , and communications programs within our aerospace defense market . in our naval defense market , we expect continued funding for the u.s. shipbuilding program , particularly as it relates to production on the cvn-79 ford class aircraft carrier . commercial aerospace approximately 17 % of our revenue is derived from the global commercial aerospace market , including the commercial jet , regional jet , and commercial helicopter markets . our primary focus in this market is oem products and services for commercial jets where we provide a combination of flight control and utility actuation systems , sensors , and other sophisticated electronics , as well as shot and laser peening services , to our primary customers , in boeing and airbus . shot and laser peening are also utilized on highly stressed components of turbine engine fan blades , landing gear , and aircraft structures . the largest driver of our commercial aerospace business is oem parts , which is highly dependent on new aircraft production . industry data supports a solid increase in commercial aircraft deliveries over the next few years , as 2011 marked the first year in a multi-year production up-cycle for the commercial aerospace market . in the current cycle , oem-oriented companies are expected to perform well , due to planned increases in production by boeing and airbus , on both legacy and new aircraft , with record-high backlogs on the latter . in addition , according to the international air transport association ( iata ) , air travel continues to be robust and is likely to reach almost 3.3 billion passenger miles in 2014 , although air freight is likely to remain relatively flat . as such , following a solid performance over the past three years , the commercial aerospace business is expected to continue its growth in 2014. industry experts also expect a modest growth outlook for both regional and business jets . oil and gas approximately 18 % of our revenue is derived from the oil and gas market . we have a diverse offering of products to the oil and gas market , including critical-function valves , valve systems , large process vessels , control electronics , and surface treatment services on highly stressed metal components . late in 2012 , we expanded our offering to service the emerging shale oil and gas market , including hydraulic fracturing ( fracking ) techniques , and are now able to support upstream , midstream and downstream product offerings . we also maintain a significant mro business that has been growing steadily for our pressure-relief valve technologies as refineries opportunistically service or upgrade equipment that has been operating at full capacity in recent years . in 2013 , our oil and gas revenues were diversified between the upstream production , processing and environmental solutions business , our global mro business , and our large capital projects business . 27 the most prevalent driver impacting this market is capital spending by refiners for maintenance , upgrades , capacity expansion , safety improvements , and compliance with environmental regulations , which is experienced by both our domestic and international customers . refiner profitability and global crude oil prices in general will impact their capital spending levels . in 2013 , the oil and gas market continued to be hampered by a reduction in new capital equipment orders due to a lack of capital spending , particularly in international markets , despite a strong rebound in mro activity . crude oil prices , based on west texas intermediate ( wti ) , averaged slightly less than $ 98/bbl in 2013 , reflecting generally moderate economic activity in the u.s. and europe and increasing north american supply . wti crude oil prices are forecasted to average $ 93/bbl in 2014 and $ 90/bbl during 2015 , according to the energy information administration ( eia ) , reflecting higher total crude oil production in 2013 despite ongoing uncertainty in several international markets . eia expects the discount of the wti crude oil price to brent crude oil to average $ 12/bbl in 2014. this increase in the projected wti discount reflects increasing uncertainty of the existing refinery infrastructure 's ability to absorb growing production of light sweet crude oil in north america at current prices . looking ahead , we believe a base level of maintenance capital spending will result in continued mro demand . furthermore , as global economies continue to rebound , we anticipate a modest turnaround in our large capital projects business . this includes our complete coker deheading system , which enables safer coke drum operation during the refining process . we also will look to capitalize on opportunities in the emerging shale oil and gas market , where we supply energy production and processing equipment and environmental solutions . longer term , as global dependence on natural resources persists , oil exploration deepens , and transport requirements widen , we anticipate additional opportunities will arise for energy products . story_separator_special_tag the increase in pension expense was primarily due to a decrease in the discount rate of our pension benefit obligation . interest expense interest expense increased $ 5 million to $ 26 million in 2012 , primarily due to higher average debt levels and borrowing rates compared to the same period in 2011. effective tax rate our effective tax rates for 2012 and 2011 were 31.8 % , and 28.9 % , respectively . the increase in the effective tax rate in 2012 , as compared to 2011 , is primarily due to a $ 4.1 million research and development tax credit recognized in 2011 that did not recur in the current year period . net earnings net earnings decreased $ 26 million to $ 92 million in 2012 , as compared to the prior year period , primarily due to the impacts of the strike and additional investments on the ap1000 program within our flow control segment , restructuring costs in our surface technologies segment , and higher interest expense and effective tax rates discussed above . 33 comprehensive income pension and postretirement adjustments for 2012 , the $ 16 million pension and postretirement loss in other comprehensive income was mainly due to the actuarial loss resulting from the annual year-end remeasurement . this was driven by a decrease in the cw plan discount rate from 4.5 % to 4.0 % and was partially offset by favorable asset return performance . foreign currency translation adjustments the increase in foreign currency translation adjustments to comprehensive income of $ 44 million , to $ 26 million in comprehensive income , for the twelve months ended december 31 , 2012 is primarily due to an increase in the canadian , british pound , and euro exchange rates during the twelve month period ended december 31 , 2012 as compared to an decrease in the canadian , british pound , and euro exchange rate during the twelve month period ended december 31 , 2011. backlog and new orders backlog decreased 2 % to $ 1,654 million at december 31 , 2012 from $ 1,695 million at december 31 , 2011. new orders decreased $ 48 million in 2012 as compared to the prior year period , primarily due to the timing of funding on certain naval defense programs and lower demand of capital refinery projects and services in the oil and gas market . acquisitions , net of divestitures , contributed $ 86 million of incremental new orders . results by business segment flow control the following tables summarize sales , operating income and margin , and new orders , and certain items impacting comparability within the flow control segment . replace_table_token_11_th ( 1 ) on august 24 , 2012 , workers at emd 's cheswick , pennsylvania facility went on strike . the financial impacts of the strike were an $ 18 million and $ 6 million shift in revenue and operating income , respectively , from 2012 to 2013 , due to the temporary suspension of work and an additional $ 5 million unfavorable impact to operating income as a result of unrecoverable absorption of overhead costs . on september 24 , 2012 , the company ratified an agreement with the union to end the strike . 34 components of sales and operating income growth ( decrease ) : replace_table_token_12_th year ended december 31 , 2013 compared to year ended december 31 , 2012 sales sales increased $ 204 million , or 19 % , to $ 1,300 million , as compared to the prior year period , primarily due to the incremental impact of our cimarron , phönix , and ap services acquisitions , which contributed $ 135 million , $ 53 million , and $ 17 million , of incremental sales , respectively . sales in the defense market increased 6 % due to increased production on the cvn -79 aircraft carrier program , the ramping up of production on the virginia class submarine program , and a new shipboard helicopter handling systems contract . this was partially offset by lower levels of production on the ddg-1000 and ddg-51 destroyer programs , and completion of production on the advanced arresting gear program . sales in the commercial market increased 24 % , primarily due to the incremental impact of our cimarron and phönix acquisitions , which favorably impacted sales in the oil and gas market , as well as our ap services acquisition , which favorably impacted sales in the power generation market . in the power generation market , excluding the impact of our ap services acquisition , higher sales of instrumentation and control products and deliveries of our spent fuel management netco snap-in® product used in existing operating reactors , more than offset competitive pressure from low natural gas prices and fewer plant outages . sales in the oil and gas market were essentially flat , excluding the impact of phönix and cimarron acquisitions , as increased pressure relief valve sales were mostly offset by lower levels of production for international capital refinery products . in the general industrial market , lower sales were primarily due to a previously announced customer loss . operating income operating income increased $ 38 million , or 48 % , to $ 117 million , and operating margin increased 180 basis points to 9.0 % . acquisitions contributed $ 9 million of incremental operating income . excluding the items impacting comparability noted in the first table above and the contributions from acquisitions , operating income was essentially flat as higher compensation costs partially offset improved performance in our oil and gas division as a result of in-sourcing cimarron manufacturing . backlog and new orders backlog decreased $ 29 million to $ 1,059 million as compared to the prior year period . new orders increased $ 256 million to $ 1,234 million , from the prior year period , primarily due to incremental new orders from acquisitions of $ 210 million .

