we incurred $ 3.2 million of similar costs in fiscal 2010. our business we are one of the world 's leading manufacturers of firearms . we manufacture a wide array of handguns , modern sporting rifles , hunting rifles , black powder firearms , handcuffs , and firearm-related products and accessories for sale to a wide variety of customers , including gun enthusiasts , collectors , hunters , sportsmen , 38 competitive shooters , individuals desiring home and personal protection , law enforcement and security agencies and officers , and military agencies in the united states and throughout the world . we are one of the largest manufacturers of handguns and handcuffs in the united states , the largest u.s. exporter of handguns , and a participant in the modern sporting and hunting rifle markets . we are also a leading turnkey provider of perimeter security solutions to protect and control access to key military , government , and corporate facilities . we manufacture our firearm products at our facilities in springfield , massachusetts ; houlton , maine ; and rochester , new hampshire . we manufacture and assemble our perimeter security products at our facilities in franklin , tennessee . in addition , we pursue opportunities to license our name and trademarks to third parties for use in association with their products and services . we plan to increase our product offerings to leverage the nearly 160 year old smith & wesson brand and capitalize on the goodwill developed through our historic american tradition by expanding consumer awareness of products we produce or license in the safety , security , protection , and sport markets . key performance indicators we evaluate the performance of our business based upon operating profit , which includes net sales , cost of products and services sold , selling and administrative expenses , and certain components of other income and expense . we also use adjusted ebitdas ( earnings before interest , taxes , depreciation , amortization , and stock-based compensation expense , excluding large non-recurring items ) , which is a non-gaap financial metric , to evaluate our performance . we evaluate our various firearm products by such measurements as cost per unit produced , units produced per day , and incoming orders per day . we evaluate our security solutions products by revenue invoiced , gross margin per project , and incoming orders per month . key industry data handguns have been subject to legislative actions in the past , and the market has reacted to these actions . there was a substantial increase in sales in the early 1990s during the period leading up to and shortly after the enactment of the brady bill . in the period from 1992 through 1994 , the u.s. handgun market increased by over 50 % , as consumers purchased handguns because of the fear of prohibition of handgun ownership . the market levels then returned to pre-1992 levels and grew at normal industry growth rates until late in calendar 2008 , when the market increased in what appears to be fears surrounding crime and terrorism , an economic downturn , and a change in the white house administration . like the increase in 1992 , this increase in the market was temporary in nature and the market returned to more normal levels in fiscal 2010. within the u.s. handgun market , we estimate that approximately 81 % of the market is pistols and 19 % is revolvers . we also estimate that we have an 18 % share of the u.s. consumer market for handguns . this compares with approximately 10 % in the period just before we acquired smith & wesson corp. in 2001 and approximately 16 % during the 1990s . 39 results of operations net product and services sales the following table sets forth certain information regarding net product and services sales for the fiscal years ended april 30 , 2011 , 2010 , and 2009 ( dollars in thousands ) : replace_table_token_2_th fiscal 2011 net product and services sales compared with fiscal 2010 net product and services sales for fiscal 2011 decreased as ordering returned to more normal levels compared with the strong consumer demand that occurred after the november 2008 presidential election . revolver sales increased 3.0 % over the prior fiscal year because of the significant demand for our bodyguard 38 revolver , offset by reduced volume in our aluminum frame products to the consumer market and significantly reduced international shipments , which resulted from substantial changes we made in our foreign sales personnel and foreign representatives , modifications we made in our foreign sales processes , and our determination not to sell our products in certain foreign countries . price repositioning and the costs of a rebate program on small frame revolvers negatively impacted sales dollars while helping to spur unit sales . pistol sales were 6.8 % higher than in the prior fiscal year driven by the introduction of our bodyguard 380 concealed carry pistol . sales of metal pistols were lower compared with the prior fiscal year primarily due to reduced international shipments , while sales of sigma were down as demand shifted to concealed carry in the domestic marketplace . walther product sales declined 12.7 % from the prior fiscal year because of increased competition in small frame and concealed carry products . sales of modern sporting rifles , the product line most impacted by the reduction in consumer demand , declined by 37.5 % from the prior fiscal year . however , sales within this product line were favorably impacted in the fourth quarter of fiscal 2011 by the introduction of our new sport model . premium product sales increased 11.2 % over the prior fiscal year , primarily because of the continued success of our pro series handguns and the introduction of our matched set of engraved bodyguard revolver and pistol . story_separator_special_tag fiscal 2010 income/ ( loss ) from operations compared with fiscal 2009 excluding the impact of the impairment charge recorded in fiscal 2009 discussed above , income from operations for our firearm division of $ 40,074,000 was $ 15,198,000 , or 61.1 % , higher than operating income of $ 24,876,000 for fiscal 2009 , predominantly due to increased products and services sold and improved margins , which more than offset the impact of fcpa costs on operating expenses . other income/ ( expense ) the following table sets forth certain information regarding other income/ ( expense ) for the fiscal years ended april 30 , 2011 , 2010 , and 2009 ( dollars in thousands ) : replace_table_token_7_th for fiscal 2011 and 2010 , other income/ ( expense ) included $ 3,060,000 and $ 9,587,000 , respectively , of income associated with the revaluation of 4,080,000 shares of our common stock related to our july 2009 acquisition of swss ( see note 2 to our consolidated financial statements contained elsewhere in this report ) . excluding this income , the remaining other income/ ( expense ) represented , among other things , unrealized gains and losses on foreign exchange contracts . 45 interest expense the following table sets forth certain information regarding interest expense for the fiscal years ended april 30 , 2011 , 2010 , and 2009 ( dollars in thousands ) : replace_table_token_8_th interest expense increased for fiscal 2011 compared with fiscal 2010 due to the early retirement of $ 50.0 million of our senior convertible notes , which resulted in a $ 476,000 write-off of debt refinancing costs . this debt was exchanged for $ 50.0 million of our 9.5 % senior notes , resulting in higher interest expense , primarily in the fourth quarter of fiscal 2011. the exchange of the senior convertible notes for the higher coupon 9.5 % senior notes was made because of the impending december 2011 date on which holders of the senior convertible notes could require us to repurchase their senior convertible notes as well as to remove the dilutive effects of the senior convertible notes . interest expense decreased for fiscal 2010 as a result of the repayment of $ 4,814,000 of long-term debt in december 2009 and overall increased cash balances throughout the fiscal year . income tax expense the following table sets forth certain information regarding income tax expense for the fiscal years ended april 30 , 2011 , 2010 , 2009 ( dollars in thousands ) : replace_table_token_9_th our income tax expense for fiscal 2011 included the effect of changes in temporary differences between book value and tax bases of assets and liabilities and net operating loss carryforwards . these amounts are reflected in the balance of our net deferred tax assets , which totaled $ 8,764,000 , after valuation allowance , as of april 30 , 2011. we had federal net operating loss carryforwards amounting to $ 1,601,000 as of april 30 , 2011. we obtained $ 8,215,000 in additional loss carryforwards through our acquisition of swss on july 20 , 2009 , the majority of which was utilized in fiscal 2010. the net operating loss carryforwards at april 30 , 2011 expire through fiscal year 2021. internal revenue code section 382 limits our utilization of these losses to approximately $ 403,000 in fiscal 2012 and $ 108,000 per subsequent year . it is possible that future substantial changes in our ownership could occur that could result in a reduction in some or all of our loss carryforwards pursuant to internal revenue code section 382. if such an ownership change were to occur , there would be an annual limitation on the remaining tax loss carryforwards that could be utilized . adjustments to reserves and book versus tax difference on amortization of intangible assets increased the overall net deferred tax asset to $ 8,764,000 as of april 30 , 2011. there was $ 10,938,000 of state net operating loss carryforwards as of april 30 , 2011. there was $ 4,591,000 of state net operating loss carryforwards as of april 30 , 2010. there was $ 1,739,000 and $ 1,218,000 of state tax credit carryforwards as of april 30 , 2011 and 2010 , respectively . as of april 30 , 2011 , valuation allowances of $ 26,000 , $ 445,000 , and $ 705,000 were provided on our deferred tax assets for a federal capital loss carryforward , state net operating losses , and state tax credits , respectively , that we do not anticipate using prior to their expiration . as of april 30 , 2010 , valuation losses of $ 26,000 and $ 650,000 were provided on our deferred tax assets for a federal capital loss carryforward and state tax credits , respectively . the increase in the valuation allowance on our deferred tax assets for state net operating losses and credits related mainly to our operations in franklin , tennessee . no other valuation allowance was provided on our deferred federal income tax assets as of april 30 , 2011 or 2010 , as we believe that it is more likely than not that all such assets will be realized . in order to utilize the unreserved portion of our net operating loss carryforwards , the minimum level of annual taxable income that we would have achieve must equal or exceed the amount of federal net operating carryforwards for fiscal years 2012 through 2021. we believe that achievement of that level of taxable income is more likely than 46 not based on historical performance and future projections , including new product offerings , pricing decisions , marketing efforts , and expected spending levels . net income/ ( loss ) the following table sets forth certain information regarding net income/ ( loss ) and the related per share data for the fiscal years ended april 30 , 2011 , 2010 , and 2009 ( dollars in thousands , except per share data )

liquidity and capital resources our principal cash requirements are to finance the growth of our operations , including acquisitions , and to service our existing debt . capital expenditures for new products , capacity expansion , and process improvements represent important cash needs . 47 the following table sets forth certain cash flow information for the fiscal years ended april 30 , 2011 , 2010 , and 2009 ( dollars in thousands ) : replace_table_token_11_th operating activities represent the principal source of our cash flow . cash flow from operating activities increased significantly in fiscal 2011 over fiscal 2010 levels in spite of the reduction in profitability due to a $ 7,327,000 reduction in accounts receivable , a $ 10,861,000 increase in accounts payable , and a $ 8,892,000 increase in accrued taxes other than income . accounts receivable declined compared with the prior fiscal year , primarily as a result of timing of fourth quarter sales . accounts payable were high at the end of fiscal 2011 , primarily due to significant capital spending incurred late in the fourth quarter to meet the requirements of the massachusetts economic development incentive program that granted us up to $ 4,400,000 in refundable tax credits for capital spending on qualified property that exceeded $ 11.0 million . accrued taxes other than income increased as a result of a change in federal excise tax deposit requirements from bi-weekly to quarterly , allowing our first calendar quarterly payment to be made on may 2 , 2011 , after the end of our fiscal year . in addition , in fiscal 2010 , income tax payments were significantly higher as a result of our higher taxable income .


 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 principal cash requirements are to finance the growth of our operations , including acquisitions , and to service our existing debt . capital expenditures for new products , capacity expansion , and process improvements represent important cash needs . 47 the following table sets forth certain cash flow information for the fiscal years ended april 30 , 2011 , 2010 , and 2009 ( dollars in thousands ) : replace_table_token_11_th operating activities represent the principal source of our cash flow . cash flow from operating activities increased significantly in fiscal 2011 over fiscal 2010 levels in spite of the reduction in profitability due to a $ 7,327,000 reduction in accounts receivable , a $ 10,861,000 increase in accounts payable , and a $ 8,892,000 increase in accrued taxes other than income . accounts receivable declined compared with the prior fiscal year , primarily as a result of timing of fourth quarter sales . accounts payable were high at the end of fiscal 2011 , primarily due to significant capital spending incurred late in the fourth quarter to meet the requirements of the massachusetts economic development incentive program that granted us up to $ 4,400,000 in refundable tax credits for capital spending on qualified property that exceeded $ 11.0 million . accrued taxes other than income increased as a result of a change in federal excise tax deposit requirements from bi-weekly to quarterly , allowing our first calendar quarterly payment to be made on may 2 , 2011 , after the end of our fiscal year . in addition , in fiscal 2010 , income tax payments were significantly higher as a result of our higher taxable income .
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 Suspicious Activity Report : we incurred $ 3.2 million of similar costs in fiscal 2010. our business we are one of the world 's leading manufacturers of firearms . we manufacture a wide array of handguns , modern sporting rifles , hunting rifles , black powder firearms , handcuffs , and firearm-related products and accessories for sale to a wide variety of customers , including gun enthusiasts , collectors , hunters , sportsmen , 38 competitive shooters , individuals desiring home and personal protection , law enforcement and security agencies and officers , and military agencies in the united states and throughout the world . we are one of the largest manufacturers of handguns and handcuffs in the united states , the largest u.s. exporter of handguns , and a participant in the modern sporting and hunting rifle markets . we are also a leading turnkey provider of perimeter security solutions to protect and control access to key military , government , and corporate facilities . we manufacture our firearm products at our facilities in springfield , massachusetts ; houlton , maine ; and rochester , new hampshire . we manufacture and assemble our perimeter security products at our facilities in franklin , tennessee . in addition , we pursue opportunities to license our name and trademarks to third parties for use in association with their products and services . we plan to increase our product offerings to leverage the nearly 160 year old smith & wesson brand and capitalize on the goodwill developed through our historic american tradition by expanding consumer awareness of products we produce or license in the safety , security , protection , and sport markets . key performance indicators we evaluate the performance of our business based upon operating profit , which includes net sales , cost of products and services sold , selling and administrative expenses , and certain components of other income and expense . we also use adjusted ebitdas ( earnings before interest , taxes , depreciation , amortization , and stock-based compensation expense , excluding large non-recurring items ) , which is a non-gaap financial metric , to evaluate our performance . we evaluate our various firearm products by such measurements as cost per unit produced , units produced per day , and incoming orders per day . we evaluate our security solutions products by revenue invoiced , gross margin per project , and incoming orders per month . key industry data handguns have been subject to legislative actions in the past , and the market has reacted to these actions . there was a substantial increase in sales in the early 1990s during the period leading up to and shortly after the enactment of the brady bill . in the period from 1992 through 1994 , the u.s. handgun market increased by over 50 % , as consumers purchased handguns because of the fear of prohibition of handgun ownership . the market levels then returned to pre-1992 levels and grew at normal industry growth rates until late in calendar 2008 , when the market increased in what appears to be fears surrounding crime and terrorism , an economic downturn , and a change in the white house administration . like the increase in 1992 , this increase in the market was temporary in nature and the market returned to more normal levels in fiscal 2010. within the u.s. handgun market , we estimate that approximately 81 % of the market is pistols and 19 % is revolvers . we also estimate that we have an 18 % share of the u.s. consumer market for handguns . this compares with approximately 10 % in the period just before we acquired smith & wesson corp. in 2001 and approximately 16 % during the 1990s . 39 results of operations net product and services sales the following table sets forth certain information regarding net product and services sales for the fiscal years ended april 30 , 2011 , 2010 , and 2009 ( dollars in thousands ) : replace_table_token_2_th fiscal 2011 net product and services sales compared with fiscal 2010 net product and services sales for fiscal 2011 decreased as ordering returned to more normal levels compared with the strong consumer demand that occurred after the november 2008 presidential election . revolver sales increased 3.0 % over the prior fiscal year because of the significant demand for our bodyguard 38 revolver , offset by reduced volume in our aluminum frame products to the consumer market and significantly reduced international shipments , which resulted from substantial changes we made in our foreign sales personnel and foreign representatives , modifications we made in our foreign sales processes , and our determination not to sell our products in certain foreign countries . price repositioning and the costs of a rebate program on small frame revolvers negatively impacted sales dollars while helping to spur unit sales . pistol sales were 6.8 % higher than in the prior fiscal year driven by the introduction of our bodyguard 380 concealed carry pistol . sales of metal pistols were lower compared with the prior fiscal year primarily due to reduced international shipments , while sales of sigma were down as demand shifted to concealed carry in the domestic marketplace . walther product sales declined 12.7 % from the prior fiscal year because of increased competition in small frame and concealed carry products . sales of modern sporting rifles , the product line most impacted by the reduction in consumer demand , declined by 37.5 % from the prior fiscal year . however , sales within this product line were favorably impacted in the fourth quarter of fiscal 2011 by the introduction of our new sport model . premium product sales increased 11.2 % over the prior fiscal year , primarily because of the continued success of our pro series handguns and the introduction of our matched set of engraved bodyguard revolver and pistol . story_separator_special_tag fiscal 2010 income/ ( loss ) from operations compared with fiscal 2009 excluding the impact of the impairment charge recorded in fiscal 2009 discussed above , income from operations for our firearm division of $ 40,074,000 was $ 15,198,000 , or 61.1 % , higher than operating income of $ 24,876,000 for fiscal 2009 , predominantly due to increased products and services sold and improved margins , which more than offset the impact of fcpa costs on operating expenses . other income/ ( expense ) the following table sets forth certain information regarding other income/ ( expense ) for the fiscal years ended april 30 , 2011 , 2010 , and 2009 ( dollars in thousands ) : replace_table_token_7_th for fiscal 2011 and 2010 , other income/ ( expense ) included $ 3,060,000 and $ 9,587,000 , respectively , of income associated with the revaluation of 4,080,000 shares of our common stock related to our july 2009 acquisition of swss ( see note 2 to our consolidated financial statements contained elsewhere in this report ) . excluding this income , the remaining other income/ ( expense ) represented , among other things , unrealized gains and losses on foreign exchange contracts . 45 interest expense the following table sets forth certain information regarding interest expense for the fiscal years ended april 30 , 2011 , 2010 , and 2009 ( dollars in thousands ) : replace_table_token_8_th interest expense increased for fiscal 2011 compared with fiscal 2010 due to the early retirement of $ 50.0 million of our senior convertible notes , which resulted in a $ 476,000 write-off of debt refinancing costs . this debt was exchanged for $ 50.0 million of our 9.5 % senior notes , resulting in higher interest expense , primarily in the fourth quarter of fiscal 2011. the exchange of the senior convertible notes for the higher coupon 9.5 % senior notes was made because of the impending december 2011 date on which holders of the senior convertible notes could require us to repurchase their senior convertible notes as well as to remove the dilutive effects of the senior convertible notes . interest expense decreased for fiscal 2010 as a result of the repayment of $ 4,814,000 of long-term debt in december 2009 and overall increased cash balances throughout the fiscal year . income tax expense the following table sets forth certain information regarding income tax expense for the fiscal years ended april 30 , 2011 , 2010 , 2009 ( dollars in thousands ) : replace_table_token_9_th our income tax expense for fiscal 2011 included the effect of changes in temporary differences between book value and tax bases of assets and liabilities and net operating loss carryforwards . these amounts are reflected in the balance of our net deferred tax assets , which totaled $ 8,764,000 , after valuation allowance , as of april 30 , 2011. we had federal net operating loss carryforwards amounting to $ 1,601,000 as of april 30 , 2011. we obtained $ 8,215,000 in additional loss carryforwards through our acquisition of swss on july 20 , 2009 , the majority of which was utilized in fiscal 2010. the net operating loss carryforwards at april 30 , 2011 expire through fiscal year 2021. internal revenue code section 382 limits our utilization of these losses to approximately $ 403,000 in fiscal 2012 and $ 108,000 per subsequent year . it is possible that future substantial changes in our ownership could occur that could result in a reduction in some or all of our loss carryforwards pursuant to internal revenue code section 382. if such an ownership change were to occur , there would be an annual limitation on the remaining tax loss carryforwards that could be utilized . adjustments to reserves and book versus tax difference on amortization of intangible assets increased the overall net deferred tax asset to $ 8,764,000 as of april 30 , 2011. there was $ 10,938,000 of state net operating loss carryforwards as of april 30 , 2011. there was $ 4,591,000 of state net operating loss carryforwards as of april 30 , 2010. there was $ 1,739,000 and $ 1,218,000 of state tax credit carryforwards as of april 30 , 2011 and 2010 , respectively . as of april 30 , 2011 , valuation allowances of $ 26,000 , $ 445,000 , and $ 705,000 were provided on our deferred tax assets for a federal capital loss carryforward , state net operating losses , and state tax credits , respectively , that we do not anticipate using prior to their expiration . as of april 30 , 2010 , valuation losses of $ 26,000 and $ 650,000 were provided on our deferred tax assets for a federal capital loss carryforward and state tax credits , respectively . the increase in the valuation allowance on our deferred tax assets for state net operating losses and credits related mainly to our operations in franklin , tennessee . no other valuation allowance was provided on our deferred federal income tax assets as of april 30 , 2011 or 2010 , as we believe that it is more likely than not that all such assets will be realized . in order to utilize the unreserved portion of our net operating loss carryforwards , the minimum level of annual taxable income that we would have achieve must equal or exceed the amount of federal net operating carryforwards for fiscal years 2012 through 2021. we believe that achievement of that level of taxable income is more likely than 46 not based on historical performance and future projections , including new product offerings , pricing decisions , marketing efforts , and expected spending levels . net income/ ( loss ) the following table sets forth certain information regarding net income/ ( loss ) and the related per share data for the fiscal years ended april 30 , 2011 , 2010 , and 2009 ( dollars in thousands , except per share data )

