our customers face challenges in planning , procuring and managing their inventories efficiently due to customer demand fluctuations , product design changes , short product life cycles and component price fluctuations . we employ production management systems to manage their procurement and manufacturing processes in an efficient and cost-effective manner so that , where possible , components arrive on a just-in-time , as-and-when-needed basis . we are a significant purchaser of electronic components and other raw materials , and can capitalize on the economies of scale associated with our relationships with suppliers to negotiate price discounts , obtain components and other raw 29 materials that are in short supply , and return excess components . our expertise in supply chain management and our relationships with suppliers across the supply chain enables us to reduce our customers ' cost of goods sold and inventory exposure . we recognize revenue from the sale of manufactured products built to customer specifications and excess inventory when title and risk of ownership have passed , the price to the buyer is fixed or determinable and collectibility is reasonably assured , which generally is when the goods are shipped . revenue from design , development and engineering services is recognized when the services are performed and collectibility is reasonably certain . such services provided under fixed price contracts are accounted for using the percentage of completion method . we generally assume no significant obligations after product shipment as we typically warrant workmanship only . therefore , our warranty provisions are generally not significant . our cost of sales includes the cost of materials , electronic components and other items that comprise the products we manufacture , the cost of labor and manufacturing overhead and adjustments for excess and obsolete inventory . our procurement of materials for production requires us to commit significant working capital to our operations and to manage the purchasing , receiving , inspection and stocking of materials . although we bear the risk of fluctuations in the cost of materials and excess scrap , we periodically negotiate cost of materials adjustments with our customers . our gross margin for any product depends on the sales price , the proportionate mix of the cost of materials in the product and the cost of labor and manufacturing overhead allocated to the product . we typically have the potential to realize higher gross margins on products where the proportionate level of labor and manufacturing overhead is greater than that of materials . as we gain experience in manufacturing a product , we usually achieve increased efficiencies , which result in lower labor and manufacturing overhead costs for that product and higher gross margins . our operating results are impacted by the level of capacity utilization of manufacturing facilities . operating income margins have generally improved during periods of high production volume and high capacity utilization . during periods of low production volume , we generally have idle capacity and reduced operating income margins . acquisitions on june 3 , 2013 , we acquired all of the outstanding common stock of suntron corporation ( suntron ) , an ems company headquartered in phoenix , arizona ( the suntron acquisition ) for $ 19.3 million in cash subject to a final purchase adjustment in accordance with the acquisition agreement . the suntron acquisition added two manufacturing facilities , tijuana , mexico and phoenix , arizona , and strengthened our capabilities and global reach to better serve our customers in the aerospace and defense industries . on october 2 , 2013 , we acquired all of the outstanding common stock of cts electronics manufacturing solutions , inc. and cts electronics corporation ( thailand ) ltd. , the full-service ems segment of cts corporation ( cts ) , for $ 75 million ( the cts acquisition ) . the acquired business has five locations ( 4 in north america and 1 in asia ) and approximately 1,000 employees . the cts acquisition expanded our portfolio of customers in non-traditional and highly regulated markets and strengthened the depth and scope of our new product express capabilities on the west coast . severe flooding in thailand and suspension of thailand operations our facilities in ayudhaya , thailand were flooded and remained closed from october 13 , 2011 to december 20 , 2011. as a result of the flooding and temporary closing of our facilities , we incurred property losses and flood related costs during 2012 and 2011 which were partially offset by insurance recoveries . during 2013 , thailand flood related items resulted in a gain of $ 41.3 million including $ 41.2 million of insurance proceeds . we will record additional insurance recoveries when the appropriate recognition criteria have been met . the recovery process with our insurance carriers is largely complete and we expect final resolution in the first quarter of 2014. as a result of the flooding , we have been unable to renew or otherwise obtain adequate cost-effective flood insurance to cover assets at our facilities in thailand . we continue to investigate all flood risk-mitigation 30 alternatives in thailand . we maintain insurance on all our properties and operations—including our assets in thailand—for risks and in amounts customary in the industry . such insurance includes general liability , property & casualty , and directors & officers liability coverage . not all losses are insured , and we retain certain risks of loss through deductibles , limits and self-retentions . in the event we were to experience a significant uninsured loss in thailand or elsewhere , it could have a material adverse effect on our business , financial condition and results of operations . summary of 2013 results sales for the years ended december 31 , 2013 and 2012 were $ 2.5 billion in each year . our future sales are dependent on the success of our customers , some of which operate in businesses associated with rapid technological change and consequent product obsolescence . story_separator_special_tag sales to customers in the telecommunication equipment industry for the year ended december 31 , 2013 decreased 9 % to $ 578.4 million from $ 637.9 million in 2012. the decrease in sales is primarily due to lower demand from our customers and timing of program ramps and transitions somewhat offset by the impact of the acquisition of cts . in addition , in 2012 , our telecommunication sector had a strong rebound as a result of the recovery from the thailand flooding . medical devices . sales to customers in the medical devices industry for the year ended december 31 , 2013 increased 15 % to $ 281.7 million from $ 244.1 million in 2012 primarily as a result of new programs and the impact of the acquisitions of suntron and cts . testing and instrumentation products . sales to customers in the testing and instrumentation products industry for the year ended december 31 , 2013 increased 11 % to $ 172.0 million from $ 154.4 million in 2012 as a result of improvement in the semiconductor industry and the impact of the acquisitions of suntron and cts . our future sales are dependent on the success of our customers , some of which operate in businesses associated with rapid technological change and consequent product obsolescence . developments adverse to our major customers or their products , or the failure of a major customer to pay for components or services , could have an adverse effect on us . adverse worldwide economic conditions have impacted our customers . see note 10 to the consolidated financial statements in item 8 of this report . a substantial percentage of our sales have been made to a small number of customers , and the loss of a major customer , if not replaced , would adversely affect us . sales to our ten largest customers represented 53 % and 56 % of our sales in 2013 and 2012 , respectively . in 2013 and 2012 , sales to international business machines corporation represented 17 % and 21 % , respectively , of our sales . sales to this customer decreased to $ 430.2 million in 2013 compared to $ 506.1 million in 2012. the decrease in sales to our largest customer is primarily due to the timing of 36 new program ramps and product transitions as well as market uncertainty in the global economy which has led to lower demand . our international operations are subject to the risks of doing business abroad . see item 1a for factors pertaining to our international sales and fluctuations in the exchange rates of foreign currency and for further discussion of potential adverse effects in operating results associated with the risks of doing business abroad . during 2013 and 2012 , 51 % and 50 % , respectively , of our sales were from our international operations . we had a backlog of approximately $ 1.7 billion at december 31 , 2013 , as compared to the 2012 year-end backlog of $ 1.5 billion . backlog consists of purchase orders received , including , in some instances , forecast requirements released for production under customer contracts . although we expect to fill substantially all of our backlog at december 31 , 2013 during 2014 , we do not have long-term agreements with all of our customers and customer orders can be canceled , changed or delayed by customers . the timely replacement of canceled , changed or delayed orders with orders from new customers can not be assured , nor can there be any assurance that any of our current customers will continue to utilize our services . because of these factors , backlog is not a meaningful indicator of future financial results . gross profit gross profit increased 6 % to $ 186.5 million for 2013 from $ 176.7 million in 2012 due primarily to an increase in sales . our gross profit as a percentage of sales increased to 7.4 % for the year ended december 31 , 2013 from 7.2 % in the same period of 2012 primarily due to changes in the mix of programs and the impact of the acquisitions . we experience fluctuations in gross profit from period to period . different programs contribute different gross profits depending on factors such as the types of services involved , location of production , size of the program , complexity of the product and level of material costs associated with the various products . moreover , new programs can contribute relatively less to our gross profit in their early stages when manufacturing volumes are usually lower , resulting in inefficiencies and unabsorbed manufacturing overhead costs . in addition , a number of our new and higher volume programs remain subject to competitive constraints that could exert downward pressure on our margins . during periods of low production volume , we generally have idle capacity and reduced gross profit . selling , general and administrative expenses selling , general and administrative expenses increased to $ 99.3 million in 2013 from $ 90.0 million in 2012. selling , general and administrative expenses , as a percentage of sales , were 4.0 % and 3.6 % , respectively , for 2013 and 2012. the increase in selling , general and administrative expenses is primarily associated with the suntron and cts acquisitions . restructuring charges and integration and acquisition-related costs we recognized $ 9.3 million in restructuring charges and integration and acquisition-related costs during 2013 primarily related to the closure of our brazil and singapore facilities and the acquisitions of suntron and cts . we expect these 2013 restructuring activities to result in annualized cost savings of approximately $ 4 million . the majority of these annual cost savings related to the restructuring activities is expected to be reflected as a reduction in cost of revenue and to a lesser extent as a reduction in selling , general and administrative expenses . the recognition of

liquidity and capital resources we have historically financed our growth and operations through funds generated from operations and proceeds from the sale and maturity of our investments . cash and cash equivalents totaled $ 345.6 million at december 31 , 2013 and $ 384.6 million at december 31 , 2012 , of which $ 307.3 million at december 31 , 2013 and $ 261.2 million at december 31 , 2012 was held outside the u.s. in various foreign subsidiaries . substantially all of the amounts held outside of the u.s. are intended to be permanently reinvested in foreign operations . under current tax laws and regulations , if cash and cash equivalents held outside the u.s. were to be distributed to the u.s. in the form of dividends or otherwise , we would be subject to additional u.s. income taxes and foreign withholding taxes . cash provided by operating activities was $ 99.1 million for the year ended december 31 , 2013 , which included $ 41.2 million of thailand flood insurance recoveries . the cash provided by operations during 2013 consisted primarily of $ 111.2 million of net income adjusted for $ 40.9 million of depreciation and amortization , offset by a $ 56.6 million increase in accounts receivable . working capital was $ 944.5 million at december 31 , 2013 and $ 883.7 million at december 31 , 2012. we are continuing the practice of purchasing components only after customer orders or forecasts are received , which mitigates , but does not eliminate , the risk of loss on inventories . supplies of electronic components and other materials used in operations are subject to industry-wide shortages . in certain instances , suppliers may allocate 40 available quantities to us . if shortages of these components and other material supplies used in operations occur , vendors may not ship the quantities we need for production and we may be forced to delay shipments , which would increase backorders and therefore impact cash flows .


 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 we have historically financed our growth and operations through funds generated from operations and proceeds from the sale and maturity of our investments . cash and cash equivalents totaled $ 345.6 million at december 31 , 2013 and $ 384.6 million at december 31 , 2012 , of which $ 307.3 million at december 31 , 2013 and $ 261.2 million at december 31 , 2012 was held outside the u.s. in various foreign subsidiaries . substantially all of the amounts held outside of the u.s. are intended to be permanently reinvested in foreign operations . under current tax laws and regulations , if cash and cash equivalents held outside the u.s. were to be distributed to the u.s. in the form of dividends or otherwise , we would be subject to additional u.s. income taxes and foreign withholding taxes . cash provided by operating activities was $ 99.1 million for the year ended december 31 , 2013 , which included $ 41.2 million of thailand flood insurance recoveries . the cash provided by operations during 2013 consisted primarily of $ 111.2 million of net income adjusted for $ 40.9 million of depreciation and amortization , offset by a $ 56.6 million increase in accounts receivable . working capital was $ 944.5 million at december 31 , 2013 and $ 883.7 million at december 31 , 2012. we are continuing the practice of purchasing components only after customer orders or forecasts are received , which mitigates , but does not eliminate , the risk of loss on inventories . supplies of electronic components and other materials used in operations are subject to industry-wide shortages . in certain instances , suppliers may allocate 40 available quantities to us . if shortages of these components and other material supplies used in operations occur , vendors may not ship the quantities we need for production and we may be forced to delay shipments , which would increase backorders and therefore impact cash flows .
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 Suspicious Activity Report : our customers face challenges in planning , procuring and managing their inventories efficiently due to customer demand fluctuations , product design changes , short product life cycles and component price fluctuations . we employ production management systems to manage their procurement and manufacturing processes in an efficient and cost-effective manner so that , where possible , components arrive on a just-in-time , as-and-when-needed basis . we are a significant purchaser of electronic components and other raw materials , and can capitalize on the economies of scale associated with our relationships with suppliers to negotiate price discounts , obtain components and other raw 29 materials that are in short supply , and return excess components . our expertise in supply chain management and our relationships with suppliers across the supply chain enables us to reduce our customers ' cost of goods sold and inventory exposure . we recognize revenue from the sale of manufactured products built to customer specifications and excess inventory when title and risk of ownership have passed , the price to the buyer is fixed or determinable and collectibility is reasonably assured , which generally is when the goods are shipped . revenue from design , development and engineering services is recognized when the services are performed and collectibility is reasonably certain . such services provided under fixed price contracts are accounted for using the percentage of completion method . we generally assume no significant obligations after product shipment as we typically warrant workmanship only . therefore , our warranty provisions are generally not significant . our cost of sales includes the cost of materials , electronic components and other items that comprise the products we manufacture , the cost of labor and manufacturing overhead and adjustments for excess and obsolete inventory . our procurement of materials for production requires us to commit significant working capital to our operations and to manage the purchasing , receiving , inspection and stocking of materials . although we bear the risk of fluctuations in the cost of materials and excess scrap , we periodically negotiate cost of materials adjustments with our customers . our gross margin for any product depends on the sales price , the proportionate mix of the cost of materials in the product and the cost of labor and manufacturing overhead allocated to the product . we typically have the potential to realize higher gross margins on products where the proportionate level of labor and manufacturing overhead is greater than that of materials . as we gain experience in manufacturing a product , we usually achieve increased efficiencies , which result in lower labor and manufacturing overhead costs for that product and higher gross margins . our operating results are impacted by the level of capacity utilization of manufacturing facilities . operating income margins have generally improved during periods of high production volume and high capacity utilization . during periods of low production volume , we generally have idle capacity and reduced operating income margins . acquisitions on june 3 , 2013 , we acquired all of the outstanding common stock of suntron corporation ( suntron ) , an ems company headquartered in phoenix , arizona ( the suntron acquisition ) for $ 19.3 million in cash subject to a final purchase adjustment in accordance with the acquisition agreement . the suntron acquisition added two manufacturing facilities , tijuana , mexico and phoenix , arizona , and strengthened our capabilities and global reach to better serve our customers in the aerospace and defense industries . on october 2 , 2013 , we acquired all of the outstanding common stock of cts electronics manufacturing solutions , inc. and cts electronics corporation ( thailand ) ltd. , the full-service ems segment of cts corporation ( cts ) , for $ 75 million ( the cts acquisition ) . the acquired business has five locations ( 4 in north america and 1 in asia ) and approximately 1,000 employees . the cts acquisition expanded our portfolio of customers in non-traditional and highly regulated markets and strengthened the depth and scope of our new product express capabilities on the west coast . severe flooding in thailand and suspension of thailand operations our facilities in ayudhaya , thailand were flooded and remained closed from october 13 , 2011 to december 20 , 2011. as a result of the flooding and temporary closing of our facilities , we incurred property losses and flood related costs during 2012 and 2011 which were partially offset by insurance recoveries . during 2013 , thailand flood related items resulted in a gain of $ 41.3 million including $ 41.2 million of insurance proceeds . we will record additional insurance recoveries when the appropriate recognition criteria have been met . the recovery process with our insurance carriers is largely complete and we expect final resolution in the first quarter of 2014. as a result of the flooding , we have been unable to renew or otherwise obtain adequate cost-effective flood insurance to cover assets at our facilities in thailand . we continue to investigate all flood risk-mitigation 30 alternatives in thailand . we maintain insurance on all our properties and operations—including our assets in thailand—for risks and in amounts customary in the industry . such insurance includes general liability , property & casualty , and directors & officers liability coverage . not all losses are insured , and we retain certain risks of loss through deductibles , limits and self-retentions . in the event we were to experience a significant uninsured loss in thailand or elsewhere , it could have a material adverse effect on our business , financial condition and results of operations . summary of 2013 results sales for the years ended december 31 , 2013 and 2012 were $ 2.5 billion in each year . our future sales are dependent on the success of our customers , some of which operate in businesses associated with rapid technological change and consequent product obsolescence . story_separator_special_tag sales to customers in the telecommunication equipment industry for the year ended december 31 , 2013 decreased 9 % to $ 578.4 million from $ 637.9 million in 2012. the decrease in sales is primarily due to lower demand from our customers and timing of program ramps and transitions somewhat offset by the impact of the acquisition of cts . in addition , in 2012 , our telecommunication sector had a strong rebound as a result of the recovery from the thailand flooding . medical devices . sales to customers in the medical devices industry for the year ended december 31 , 2013 increased 15 % to $ 281.7 million from $ 244.1 million in 2012 primarily as a result of new programs and the impact of the acquisitions of suntron and cts . testing and instrumentation products . sales to customers in the testing and instrumentation products industry for the year ended december 31 , 2013 increased 11 % to $ 172.0 million from $ 154.4 million in 2012 as a result of improvement in the semiconductor industry and the impact of the acquisitions of suntron and cts . our future sales are dependent on the success of our customers , some of which operate in businesses associated with rapid technological change and consequent product obsolescence . developments adverse to our major customers or their products , or the failure of a major customer to pay for components or services , could have an adverse effect on us . adverse worldwide economic conditions have impacted our customers . see note 10 to the consolidated financial statements in item 8 of this report . a substantial percentage of our sales have been made to a small number of customers , and the loss of a major customer , if not replaced , would adversely affect us . sales to our ten largest customers represented 53 % and 56 % of our sales in 2013 and 2012 , respectively . in 2013 and 2012 , sales to international business machines corporation represented 17 % and 21 % , respectively , of our sales . sales to this customer decreased to $ 430.2 million in 2013 compared to $ 506.1 million in 2012. the decrease in sales to our largest customer is primarily due to the timing of 36 new program ramps and product transitions as well as market uncertainty in the global economy which has led to lower demand . our international operations are subject to the risks of doing business abroad . see item 1a for factors pertaining to our international sales and fluctuations in the exchange rates of foreign currency and for further discussion of potential adverse effects in operating results associated with the risks of doing business abroad . during 2013 and 2012 , 51 % and 50 % , respectively , of our sales were from our international operations . we had a backlog of approximately $ 1.7 billion at december 31 , 2013 , as compared to the 2012 year-end backlog of $ 1.5 billion . backlog consists of purchase orders received , including , in some instances , forecast requirements released for production under customer contracts . although we expect to fill substantially all of our backlog at december 31 , 2013 during 2014 , we do not have long-term agreements with all of our customers and customer orders can be canceled , changed or delayed by customers . the timely replacement of canceled , changed or delayed orders with orders from new customers can not be assured , nor can there be any assurance that any of our current customers will continue to utilize our services . because of these factors , backlog is not a meaningful indicator of future financial results . gross profit gross profit increased 6 % to $ 186.5 million for 2013 from $ 176.7 million in 2012 due primarily to an increase in sales . our gross profit as a percentage of sales increased to 7.4 % for the year ended december 31 , 2013 from 7.2 % in the same period of 2012 primarily due to changes in the mix of programs and the impact of the acquisitions . we experience fluctuations in gross profit from period to period . different programs contribute different gross profits depending on factors such as the types of services involved , location of production , size of the program , complexity of the product and level of material costs associated with the various products . moreover , new programs can contribute relatively less to our gross profit in their early stages when manufacturing volumes are usually lower , resulting in inefficiencies and unabsorbed manufacturing overhead costs . in addition , a number of our new and higher volume programs remain subject to competitive constraints that could exert downward pressure on our margins . during periods of low production volume , we generally have idle capacity and reduced gross profit . selling , general and administrative expenses selling , general and administrative expenses increased to $ 99.3 million in 2013 from $ 90.0 million in 2012. selling , general and administrative expenses , as a percentage of sales , were 4.0 % and 3.6 % , respectively , for 2013 and 2012. the increase in selling , general and administrative expenses is primarily associated with the suntron and cts acquisitions . restructuring charges and integration and acquisition-related costs we recognized $ 9.3 million in restructuring charges and integration and acquisition-related costs during 2013 primarily related to the closure of our brazil and singapore facilities and the acquisitions of suntron and cts . we expect these 2013 restructuring activities to result in annualized cost savings of approximately $ 4 million . the majority of these annual cost savings related to the restructuring activities is expected to be reflected as a reduction in cost of revenue and to a lesser extent as a reduction in selling , general and administrative expenses . the recognition of

