in the markets in which we operate ; natural disasters , war , civil unrest , terrorism , fire , floods , tornadoes , earthquakes , hurricanes , or other matters beyond the company 's control ; the risks associated with international operations , including currency risks ; and other factors , risks , and uncertainties referenced in the company 's filings with the securities and exchange commission , including the risk factors set forth in this document all forward-looking statements speak only as of the date of this report . except as required by law , we undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect any events or circumstances after the date of this report or to reflect the occurrence of unanticipated events . all subsequent written and oral forward-looking statements attributable to us or any person acting on the company 's behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section and in our risk factors set forth in part i , item 1a of this form 10-k and in other reports filed with the sec by the company . 35 the following discussion of the financial condition and results of income ( loss ) of altra holdings , inc. and its subsidiaries should be read together with the selected historical financial data , and the consolidated financial statements of altra holdings , inc. and its subsidiaries and related notes included elsewhere in this form 10-k. the following discussion includes forward-looking statements . for a discussion of important factors that could cause actual results to differ materially from the results referred to in the forward-looking statements , see forward-looking statements and risk factors . unless the context requires otherwise , the terms altra holdings ,  the company ,  we ,  us and our refer to altra holdings , inc. and its subsidiaries , except where the context otherwise requires or indicates . general we are a leading global designer , producer and marketer of a wide range of mpt and motion control products with a presence in over 70 countries . our global sales and marketing network includes over 1,000 direct oem customers and over 3,000 distributor outlets . our product portfolio includes industrial clutches and brakes , enclosed gear drives , open gearing , couplings , engineered bearing assemblies , linear components and other related products . our products serve a wide variety of end markets including energy , general industrial , material handling , mining , transportation and turf and garden . we primarily sell our products to a wide range of oems and through long-standing relationships with industrial distributors such as motion industries , applied industrial technologies , kaman industrial technologies and w.w. grainger . while the power transmission industry has undergone some consolidation , we estimate that in 2010 the top five broad-based mpt companies represented approximately 20 % of the u.s. power transmission market . the remainder of the power transmission industry remains fragmented with many small and family-owned companies that cater to a specific market niche often due to their narrow product offerings . we believe that consolidation in our industry will continue because of the increasing demand for global distribution channels , broader product mixes and better brand recognition to compete in this industry . business outlook our future financial performance depends , in large part , on conditions in the markets that we serve and on the u.s. and global economies in general . during 2010 , we began to see an overall strengthening of the u.s. and global economies . this has manifested itself in continued strength from our early-cycle markets and demand from certain of our late-cycle business is beginning to make a meaningful impact on our sales as long-lead time items are beginning to ship . in response to the challenging economic conditions of 2009 , we took swift and aggressive actions to reduce our expenses and maximize cash flow . our cost-reduction initiatives were centered on three areas : workforce cutbacks , reduced work schedules , plant consolidations and procurement and other cost reductions . throughout 2010 , we demonstrated the significant operating leverage that we had gained as a result of our cost reduction efforts and productivity initiatives . as a result , we reinstated our company contributions to our 401 ( k ) plan starting in july 2010 , lifted the hiring freeze , and resumed normal production schedules . during 2010 , we incurred an additional $ 2.7 million of restructuring costs related to plant consolidation efforts primarily at our south beloit and twickenham facilities . during 2010 , we made significant progress on our growth strategy and we plan to build on this success in 2011. our strategy focuses on capitalizing on growth opportunities in new and existing markets , increasing our presence in key underpenetrated geographic regions , entering new high-growth markets and pursuing strategic acquisitions . in addition , we forecast higher profitability in 2011 as we plan to invest in higher growth emerging markets , continue to take advantage of operating leverage in our business model , and as our sales continue to grow as a result of improving demand trends in our end-markets . critical accounting policies the methods , estimates and judgments we use in applying our critical accounting policies have a significant impact on the results we report in our financial statements . we evaluate our estimates and judgments on an on-going basis . our estimates are based upon historical experience and assumptions that we 36 believe are reasonable under the circumstances . our experience and assumptions form the basis for our judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may vary from what our management anticipates and different assumptions or estimates about the future could change our reported results . story_separator_special_tag the increase in the tax rate was primarily driven by the increase in taxable earnings in 2010 as we recovered from the impact of the recession in 2009. the tax rate was partially reduced due to the release of a non-u.s valuation allowance in the third quarter of 2010. year ended december 31 , 2009 compared with year ended december 31 , 2008 replace_table_token_13_th net sales the decrease in sales was almost exclusively due to overall economic decline which has impacted all of our end markets and industries . all of our operating segments saw double digit decreases in sales during 2009. during the fourth quarter of 2009 , we began to see modest increases in our order rates , mainly related to our distribution customers . if the 2009 foreign exchange rates had remained constant when compared to 2008 , sales would have decreased $ 163.6 million or 25.8 % . replace_table_token_14_th gross profit . the decrease in gross profit was due to the significant decrease in sales . we took aggressive actions , including workforce and payroll reductions , facility consolidations and procurement savings to reduce our expenses and maximize near-term profitability . if the 2009 foreign exchange rates had remained constant when compared to 2008 , gross profit would have decreased $ 56.2 million or 30.2 % . our gearings and belted drives operating segment 's gross profit as a percentage of sales decreased 5.3 % in 2009 when compared to 2008. gearings and belted drives sells into early cycle markets and began to see a large decrease in sales in november 2008. the decrease in sales volume impacted the gearings and belted drives operating segment for almost all of 2009 and impacted that operating segment 's profitability . our two operating segments that sell into late cycle markets , global couplings and heavy duty clutch brake , did not see a decrease in gross profit percentages in 2009 when compared to 2008. these two operating segments were not impacted by the global economic downturn until the middle of 2009 . 42 replace_table_token_15_th selling , general and administrative expenses . the decrease in sg & a was due to our cost reduction efforts which began in the fourth quarter of 2008. our cost reduction efforts were focused on headcount reductions and the elimination of non-critical expenses which decreased our overall sg & a costs . as a result of decreased sales volume , we have seen a reduction in outside sales representative commission costs . in addition , during the year , we required certain u.s. personnel to take furloughs . also , we suspended the company 's 401 ( k ) match and company contributions and also temporarily reduced wages for the executive management and fees for board of director members . however , due to the significant decrease in sales , sg & a as a percent of sales increased despite our cost reduction efforts . replace_table_token_16_th research and development expenses r & d expenses represented approximately 1 % of sales in both periods . replace_table_token_17_th interest expense . net interest expense increased primarily due to the redemption of our 9 % senior secured notes for which we incurred a $ 5.3 million prepayment premium compared to $ 1.1 million in 2008. in addition , we wrote off all unamortized deferred financing costs and original issue discount of $ 5.8 million in 2009 compared to $ 2.8 million in 2008. these amounts were offset by lower interest expense due to lower average outstanding borrowings in 2009 as compared to previous periods for a more detailed description of the redemption of the 9 % senior secured notes and the pay down of the 11.25 % senior notes , please see note 9 to our consolidated financial statements in this form 10-k. goodwill impairment . in 2008 , we performed our annual impairment review of goodwill and identified a goodwill impairment of $ 31.8 million . we did not identify a goodwill impairment during our annual impairment review in 2009. replace_table_token_18_th other non-operating ( income ) expense . the $ 1.0 million of other expense in 2009 is primarily related to $ 1.1 million of foreign exchange losses recorded during 2009 , mainly due to the u.s. dollar weakening when compared to the british pound sterling and euro . in 2008 , the company recorded $ 5.0 million of foreign exchange gains due to the significant strengthening of the u.s. dollar when compared to the british pound sterling , euro and canadian dollar . during 2008 , we recorded rental income of $ 0.6 million for facility rentals under lease agreements which were part of the sale of tb wood 's electronics 43 division and have a term of two years , with annual extensions thereafter at the lessee 's , or the company 's option . in addition , we received $ 0.3 million in securities as part of a bankruptcy settlement . replace_table_token_19_th restructuring . during 2007 , we adopted two restructuring programs . the first was intended to improve operational efficiency by reducing headcount , consolidating our operating facilities and relocating manufacturing to lower cost areas ( the 2007 altra plan ) . the second was related to the acquisition of tb wood 's and was intended to reduce duplicative staffing and consolidate facilities ( the tb wood 's plan ) . we recorded approximately $ 2.3 million of restructuring expenses in 2008 for moving and relocation , severance and non-cash asset impairment . there were no costs related to the 2007 altra plan or the tb wood 's plan incurred in 2009. in march 2009 , we adopted a new restructuring plan ( the 2009 altra plan ) to improve the utilization of our manufacturing infrastructure and to realign our business with the current economic conditions . the 2009 altra plan was intended to improve operational efficiency by reducing headcount and consolidating certain facilities . during 2009 , we recorded $ 7.3 million

net cash december 31 , december 31 , 2010 2009 ( in thousands ) cash and cash equivalents $ 72,723 $ 51,497 cash flows for 2010 the primary source of funds for our fiscal year 2010 was cash provided by operating activities of $ 42.8 million . net cash used in investing activities of $ 17.8 million for purchases of property , plant and equipment primarily for investment in manufacturing equipment and our new erp system . net cash used in financing activities of $ 3.4 million for 2010 consisted primarily of payment of debt costs and shares repurchased in lieu of taxes in connection with the vesting of restricted stock awards . we intend to use our remaining existing cash and cash equivalents and cash flow from operations to provide for our working capital needs and to fund potential future acquisitions , debt service , capital expenditures , and pension funding . we believe our future operating cash flows will be sufficient to meet our future operating and capital expenditure cash needs . furthermore , the existing cash balances and the availability of additional borrowings under our revolving credit agreement provide additional potential sources of liquidity should they be required . cash flows for 2009 the primary source of funds for our fiscal year 2009 was cash provided by operating activities of $ 59.4 million . net cash used in investing activities of $ 9.2 million for purchases of property , plant and equipment primarily for investment in manufacturing equipment . net cash used in financing activities of $ 54.0 million for 2009 consisted primarily of $ 242.5 million of payments on the 9 % old senior secured notes , and $ 5.0 million of payments on the 11 1 / 4 % old senior notes , offset by $ 207.3 million of proceeds from the issuance of the 8 1 / 8 % senior secured notes . capital expenditures we made capital expenditures of approximately $ 17.3 million and $ 9.2 million in the years ended december 31 , 2010 and december 31 , 2009 , respectively . these capital expenditures will support on-going business needs .


 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.
     ```net cash december 31 , december 31 , 2010 2009 ( in thousands ) cash and cash equivalents $ 72,723 $ 51,497 cash flows for 2010 the primary source of funds for our fiscal year 2010 was cash provided by operating activities of $ 42.8 million . net cash used in investing activities of $ 17.8 million for purchases of property , plant and equipment primarily for investment in manufacturing equipment and our new erp system . net cash used in financing activities of $ 3.4 million for 2010 consisted primarily of payment of debt costs and shares repurchased in lieu of taxes in connection with the vesting of restricted stock awards . we intend to use our remaining existing cash and cash equivalents and cash flow from operations to provide for our working capital needs and to fund potential future acquisitions , debt service , capital expenditures , and pension funding . we believe our future operating cash flows will be sufficient to meet our future operating and capital expenditure cash needs . furthermore , the existing cash balances and the availability of additional borrowings under our revolving credit agreement provide additional potential sources of liquidity should they be required . cash flows for 2009 the primary source of funds for our fiscal year 2009 was cash provided by operating activities of $ 59.4 million . net cash used in investing activities of $ 9.2 million for purchases of property , plant and equipment primarily for investment in manufacturing equipment . net cash used in financing activities of $ 54.0 million for 2009 consisted primarily of $ 242.5 million of payments on the 9 % old senior secured notes , and $ 5.0 million of payments on the 11 1 / 4 % old senior notes , offset by $ 207.3 million of proceeds from the issuance of the 8 1 / 8 % senior secured notes . capital expenditures we made capital expenditures of approximately $ 17.3 million and $ 9.2 million in the years ended december 31 , 2010 and december 31 , 2009 , respectively . these capital expenditures will support on-going business needs .
```    
 Suspicious Activity Report : in the markets in which we operate ; natural disasters , war , civil unrest , terrorism , fire , floods , tornadoes , earthquakes , hurricanes , or other matters beyond the company 's control ; the risks associated with international operations , including currency risks ; and other factors , risks , and uncertainties referenced in the company 's filings with the securities and exchange commission , including the risk factors set forth in this document all forward-looking statements speak only as of the date of this report . except as required by law , we undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect any events or circumstances after the date of this report or to reflect the occurrence of unanticipated events . all subsequent written and oral forward-looking statements attributable to us or any person acting on the company 's behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section and in our risk factors set forth in part i , item 1a of this form 10-k and in other reports filed with the sec by the company . 35 the following discussion of the financial condition and results of income ( loss ) of altra holdings , inc. and its subsidiaries should be read together with the selected historical financial data , and the consolidated financial statements of altra holdings , inc. and its subsidiaries and related notes included elsewhere in this form 10-k. the following discussion includes forward-looking statements . for a discussion of important factors that could cause actual results to differ materially from the results referred to in the forward-looking statements , see forward-looking statements and risk factors . unless the context requires otherwise , the terms altra holdings ,  the company ,  we ,  us and our refer to altra holdings , inc. and its subsidiaries , except where the context otherwise requires or indicates . general we are a leading global designer , producer and marketer of a wide range of mpt and motion control products with a presence in over 70 countries . our global sales and marketing network includes over 1,000 direct oem customers and over 3,000 distributor outlets . our product portfolio includes industrial clutches and brakes , enclosed gear drives , open gearing , couplings , engineered bearing assemblies , linear components and other related products . our products serve a wide variety of end markets including energy , general industrial , material handling , mining , transportation and turf and garden . we primarily sell our products to a wide range of oems and through long-standing relationships with industrial distributors such as motion industries , applied industrial technologies , kaman industrial technologies and w.w. grainger . while the power transmission industry has undergone some consolidation , we estimate that in 2010 the top five broad-based mpt companies represented approximately 20 % of the u.s. power transmission market . the remainder of the power transmission industry remains fragmented with many small and family-owned companies that cater to a specific market niche often due to their narrow product offerings . we believe that consolidation in our industry will continue because of the increasing demand for global distribution channels , broader product mixes and better brand recognition to compete in this industry . business outlook our future financial performance depends , in large part , on conditions in the markets that we serve and on the u.s. and global economies in general . during 2010 , we began to see an overall strengthening of the u.s. and global economies . this has manifested itself in continued strength from our early-cycle markets and demand from certain of our late-cycle business is beginning to make a meaningful impact on our sales as long-lead time items are beginning to ship . in response to the challenging economic conditions of 2009 , we took swift and aggressive actions to reduce our expenses and maximize cash flow . our cost-reduction initiatives were centered on three areas : workforce cutbacks , reduced work schedules , plant consolidations and procurement and other cost reductions . throughout 2010 , we demonstrated the significant operating leverage that we had gained as a result of our cost reduction efforts and productivity initiatives . as a result , we reinstated our company contributions to our 401 ( k ) plan starting in july 2010 , lifted the hiring freeze , and resumed normal production schedules . during 2010 , we incurred an additional $ 2.7 million of restructuring costs related to plant consolidation efforts primarily at our south beloit and twickenham facilities . during 2010 , we made significant progress on our growth strategy and we plan to build on this success in 2011. our strategy focuses on capitalizing on growth opportunities in new and existing markets , increasing our presence in key underpenetrated geographic regions , entering new high-growth markets and pursuing strategic acquisitions . in addition , we forecast higher profitability in 2011 as we plan to invest in higher growth emerging markets , continue to take advantage of operating leverage in our business model , and as our sales continue to grow as a result of improving demand trends in our end-markets . critical accounting policies the methods , estimates and judgments we use in applying our critical accounting policies have a significant impact on the results we report in our financial statements . we evaluate our estimates and judgments on an on-going basis . our estimates are based upon historical experience and assumptions that we 36 believe are reasonable under the circumstances . our experience and assumptions form the basis for our judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may vary from what our management anticipates and different assumptions or estimates about the future could change our reported results . story_separator_special_tag the increase in the tax rate was primarily driven by the increase in taxable earnings in 2010 as we recovered from the impact of the recession in 2009. the tax rate was partially reduced due to the release of a non-u.s valuation allowance in the third quarter of 2010. year ended december 31 , 2009 compared with year ended december 31 , 2008 replace_table_token_13_th net sales the decrease in sales was almost exclusively due to overall economic decline which has impacted all of our end markets and industries . all of our operating segments saw double digit decreases in sales during 2009. during the fourth quarter of 2009 , we began to see modest increases in our order rates , mainly related to our distribution customers . if the 2009 foreign exchange rates had remained constant when compared to 2008 , sales would have decreased $ 163.6 million or 25.8 % . replace_table_token_14_th gross profit . the decrease in gross profit was due to the significant decrease in sales . we took aggressive actions , including workforce and payroll reductions , facility consolidations and procurement savings to reduce our expenses and maximize near-term profitability . if the 2009 foreign exchange rates had remained constant when compared to 2008 , gross profit would have decreased $ 56.2 million or 30.2 % . our gearings and belted drives operating segment 's gross profit as a percentage of sales decreased 5.3 % in 2009 when compared to 2008. gearings and belted drives sells into early cycle markets and began to see a large decrease in sales in november 2008. the decrease in sales volume impacted the gearings and belted drives operating segment for almost all of 2009 and impacted that operating segment 's profitability . our two operating segments that sell into late cycle markets , global couplings and heavy duty clutch brake , did not see a decrease in gross profit percentages in 2009 when compared to 2008. these two operating segments were not impacted by the global economic downturn until the middle of 2009 . 42 replace_table_token_15_th selling , general and administrative expenses . the decrease in sg & a was due to our cost reduction efforts which began in the fourth quarter of 2008. our cost reduction efforts were focused on headcount reductions and the elimination of non-critical expenses which decreased our overall sg & a costs . as a result of decreased sales volume , we have seen a reduction in outside sales representative commission costs . in addition , during the year , we required certain u.s. personnel to take furloughs . also , we suspended the company 's 401 ( k ) match and company contributions and also temporarily reduced wages for the executive management and fees for board of director members . however , due to the significant decrease in sales , sg & a as a percent of sales increased despite our cost reduction efforts . replace_table_token_16_th research and development expenses r & d expenses represented approximately 1 % of sales in both periods . replace_table_token_17_th interest expense . net interest expense increased primarily due to the redemption of our 9 % senior secured notes for which we incurred a $ 5.3 million prepayment premium compared to $ 1.1 million in 2008. in addition , we wrote off all unamortized deferred financing costs and original issue discount of $ 5.8 million in 2009 compared to $ 2.8 million in 2008. these amounts were offset by lower interest expense due to lower average outstanding borrowings in 2009 as compared to previous periods for a more detailed description of the redemption of the 9 % senior secured notes and the pay down of the 11.25 % senior notes , please see note 9 to our consolidated financial statements in this form 10-k. goodwill impairment . in 2008 , we performed our annual impairment review of goodwill and identified a goodwill impairment of $ 31.8 million . we did not identify a goodwill impairment during our annual impairment review in 2009. replace_table_token_18_th other non-operating ( income ) expense . the $ 1.0 million of other expense in 2009 is primarily related to $ 1.1 million of foreign exchange losses recorded during 2009 , mainly due to the u.s. dollar weakening when compared to the british pound sterling and euro . in 2008 , the company recorded $ 5.0 million of foreign exchange gains due to the significant strengthening of the u.s. dollar when compared to the british pound sterling , euro and canadian dollar . during 2008 , we recorded rental income of $ 0.6 million for facility rentals under lease agreements which were part of the sale of tb wood 's electronics 43 division and have a term of two years , with annual extensions thereafter at the lessee 's , or the company 's option . in addition , we received $ 0.3 million in securities as part of a bankruptcy settlement . replace_table_token_19_th restructuring . during 2007 , we adopted two restructuring programs . the first was intended to improve operational efficiency by reducing headcount , consolidating our operating facilities and relocating manufacturing to lower cost areas ( the 2007 altra plan ) . the second was related to the acquisition of tb wood 's and was intended to reduce duplicative staffing and consolidate facilities ( the tb wood 's plan ) . we recorded approximately $ 2.3 million of restructuring expenses in 2008 for moving and relocation , severance and non-cash asset impairment . there were no costs related to the 2007 altra plan or the tb wood 's plan incurred in 2009. in march 2009 , we adopted a new restructuring plan ( the 2009 altra plan ) to improve the utilization of our manufacturing infrastructure and to realign our business with the current economic conditions . the 2009 altra plan was intended to improve operational efficiency by reducing headcount and consolidating certain facilities . during 2009 , we recorded $ 7.3 million

