during the year ended december 31 , 2011 , 2010 and 2009 , the company recognized $ 4.5 million , $ 6.7 million and $ 8.3 million ( pre-tax ) of restructuring charges , primarily related to the closure of facilities , capacity reductions and costs associated with involuntary termination of employees in connection with reductions in workforce of certain facilities worldwide . 30 we believe that our global manufacturing presence increases our ability to be responsive to our customers ' needs by providing accelerated time-to-market and time-to-volume production of high quality products . these capabilities enable us to build stronger strategic relationships with our customers and to become a more integral part of their operations . 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 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 and 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 materials 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 . 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 recognized estimated property losses of $ 46.2 million and incurred $ 13.4 million of flood related costs in 2011. we carry property and business interruption insurance that we believe is appropriate and adequate for this situation . our combined limit for real and personal property as well as business interruption insurance is approximately $ 300 million . as such , we have recorded estimated recoveries from insurance for these property losses and flood related costs totaling $ 56.2 million . as of december 31 , 2011 , thailand flood related charges , net of insurance recoveries , were as follows ( in thousands ) : inventory losses $ 39,919 property , plant and equipment losses 6,233 other flood related costs 13,362 59,514 estimated insurance recoveries recorded in prepaid expenses and other assets ( 56,152 ) $ 3,362 31 the ayudhaya , thailand facilities are among our largest , generating approximately 24 % of our revenue in the first nine months of 2011. as a result , the impact on revenue and operations was significant in the fourth quarter of 2011 and will be significant for the next several fiscal quarters . we are managing the situation on an on-going basis and are working to mitigate the impact to us and our customers . we and our customers implemented contingency and recovery plans as a result of the flood to help enable us to meet customer needs . as part of those plans , we restarted production at our korat , thailand facility in november 2011 , and we shifted production from our ayudhaya facilities to our various other sites around the globe . story_separator_special_tag 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 47 % of our sales in 2011 and 2010 , respectively . in 2011 , sales to international business machines corporation represented 14 % of our sales . no one customer represented 10 % or more of our sales in 2010. 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 2011 and 2010 , 51 % and 48 % , respectively , of our sales were from our international operations . we had a backlog of approximately $ 1.6 billion at december 31 , 2011 , as compared to the 2010 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 , 2011 during 2012 , 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 . 36 gross profit gross profit decreased 26 % to $ 138.8 million for 2011 from $ 187.4 million in 2010. the impact on revenue and operations from the flooding in thailand was significant in the fourth quarter of 2011. in addition to the lower sales volume and the resulting under-absorbed manufacturing overhead costs , the decrease in gross profit was also a result of $ 4.4 million of settlement costs associated with the transfer of a major program , new program ramp costs and capacity expansion costs , primarily in asia , incurred in 2011. our gross profit as a percentage of sales decreased to 6.2 % for the year ended december 31 , 2011 from 7.8 % in the same period of 2010 primarily due to lower sales volumes , product mix , new program ramp costs and capacity expansion costs , primarily in asia , which resulted in under-absorbed manufacturing overhead costs , as well as the settlement costs noted above . 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 under-absorbed 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 decreased 3 % to $ 89.7 million in 2011 from $ 92.2 million in 2010 primarily due to reduced stock-based compensation expenses , decreased overhead resulting from cost controls and lower variable compensation expenses , which were partially offset by higher other employee related costs . selling , general and administrative expenses , as a percentage of sales , were 4.0 % and 3.8 % , respectively , for 2011 and 2010. the increase in selling , general and administrative expenses as a percentage of sales is due to the impact of lower sales volumes during 2011. restructuring charges we recognized $ 4.5 million in restructuring charges during 2011 primarily related to the decision to close our dublin , ireland facility . the recognition of the restructuring charges requires that we make certain judgments and estimates regarding the nature , timing and amount of costs associated with planned exit activities . to the extent our actual results in exiting these facilities differ from our estimates and assumptions , we may be required to revise the estimates of future liabilities , requiring the recognition of additional restructuring charges or the reduction of liabilities already recognized . at the end of each reporting period , we evaluate the remaining accrued balances to ensure that no excess accruals are retained and the utilization of the provisions are for their intended purpose in accordance with developed exit plans . see note 16 to the consolidated financial statements in item 8 of this report . thailand flood related charges , net of insurance we recognized $ 3.4 million in thailand flood related charges , net of estimated insurance recoveries during the fourth quarter of 2011. see note 16 to the consolidated financial statements in item 8 of this report . income tax expense ( benefit ) income tax benefit of $ 10.8 million represented a negative effective tax rate of 26.3 % for 2011 , compared with income tax expense of $ 7.3 million at an effective tax rate of 8.3

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 $ 283.9 million at december 31 , 2011 and $ 346.3 million at december 31 , 2010 , of which $ 195.9 million at december 31 , 2011 and $ 241.6 million at december 31 , 2010 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 indefinitely 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 $ 54.8 million in 2011. the cash provided by operations during 2011 consisted primarily of net income of $ 52.0 million adjusted for $ 35.5 million of depreciation and amortization , $ 46.5 million of asset impairments , a $ 27.7 million decrease in accounts receivable , a $ 12.1 decrease in prepaid expense and other assets and a $ 28.4 million increase in accounts payable offset by a $ 56.2 million insurance receivable , a $ 72.7 million increase in inventories and $ 18.0 million of deferred income taxes . working capital was $ 849.0 million at december 31 , 2011 and $ 891.6 million at december 31 , 2010. 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 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 $ 283.9 million at december 31 , 2011 and $ 346.3 million at december 31 , 2010 , of which $ 195.9 million at december 31 , 2011 and $ 241.6 million at december 31 , 2010 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 indefinitely 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 $ 54.8 million in 2011. the cash provided by operations during 2011 consisted primarily of net income of $ 52.0 million adjusted for $ 35.5 million of depreciation and amortization , $ 46.5 million of asset impairments , a $ 27.7 million decrease in accounts receivable , a $ 12.1 decrease in prepaid expense and other assets and a $ 28.4 million increase in accounts payable offset by a $ 56.2 million insurance receivable , a $ 72.7 million increase in inventories and $ 18.0 million of deferred income taxes . working capital was $ 849.0 million at december 31 , 2011 and $ 891.6 million at december 31 , 2010. 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 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 : during the year ended december 31 , 2011 , 2010 and 2009 , the company recognized $ 4.5 million , $ 6.7 million and $ 8.3 million ( pre-tax ) of restructuring charges , primarily related to the closure of facilities , capacity reductions and costs associated with involuntary termination of employees in connection with reductions in workforce of certain facilities worldwide . 30 we believe that our global manufacturing presence increases our ability to be responsive to our customers ' needs by providing accelerated time-to-market and time-to-volume production of high quality products . these capabilities enable us to build stronger strategic relationships with our customers and to become a more integral part of their operations . 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 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 and 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 materials 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 . 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 recognized estimated property losses of $ 46.2 million and incurred $ 13.4 million of flood related costs in 2011. we carry property and business interruption insurance that we believe is appropriate and adequate for this situation . our combined limit for real and personal property as well as business interruption insurance is approximately $ 300 million . as such , we have recorded estimated recoveries from insurance for these property losses and flood related costs totaling $ 56.2 million . as of december 31 , 2011 , thailand flood related charges , net of insurance recoveries , were as follows ( in thousands ) : inventory losses $ 39,919 property , plant and equipment losses 6,233 other flood related costs 13,362 59,514 estimated insurance recoveries recorded in prepaid expenses and other assets ( 56,152 ) $ 3,362 31 the ayudhaya , thailand facilities are among our largest , generating approximately 24 % of our revenue in the first nine months of 2011. as a result , the impact on revenue and operations was significant in the fourth quarter of 2011 and will be significant for the next several fiscal quarters . we are managing the situation on an on-going basis and are working to mitigate the impact to us and our customers . we and our customers implemented contingency and recovery plans as a result of the flood to help enable us to meet customer needs . as part of those plans , we restarted production at our korat , thailand facility in november 2011 , and we shifted production from our ayudhaya facilities to our various other sites around the globe . story_separator_special_tag 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 47 % of our sales in 2011 and 2010 , respectively . in 2011 , sales to international business machines corporation represented 14 % of our sales . no one customer represented 10 % or more of our sales in 2010. 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 2011 and 2010 , 51 % and 48 % , respectively , of our sales were from our international operations . we had a backlog of approximately $ 1.6 billion at december 31 , 2011 , as compared to the 2010 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 , 2011 during 2012 , 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 . 36 gross profit gross profit decreased 26 % to $ 138.8 million for 2011 from $ 187.4 million in 2010. the impact on revenue and operations from the flooding in thailand was significant in the fourth quarter of 2011. in addition to the lower sales volume and the resulting under-absorbed manufacturing overhead costs , the decrease in gross profit was also a result of $ 4.4 million of settlement costs associated with the transfer of a major program , new program ramp costs and capacity expansion costs , primarily in asia , incurred in 2011. our gross profit as a percentage of sales decreased to 6.2 % for the year ended december 31 , 2011 from 7.8 % in the same period of 2010 primarily due to lower sales volumes , product mix , new program ramp costs and capacity expansion costs , primarily in asia , which resulted in under-absorbed manufacturing overhead costs , as well as the settlement costs noted above . 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 under-absorbed 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 decreased 3 % to $ 89.7 million in 2011 from $ 92.2 million in 2010 primarily due to reduced stock-based compensation expenses , decreased overhead resulting from cost controls and lower variable compensation expenses , which were partially offset by higher other employee related costs . selling , general and administrative expenses , as a percentage of sales , were 4.0 % and 3.8 % , respectively , for 2011 and 2010. the increase in selling , general and administrative expenses as a percentage of sales is due to the impact of lower sales volumes during 2011. restructuring charges we recognized $ 4.5 million in restructuring charges during 2011 primarily related to the decision to close our dublin , ireland facility . the recognition of the restructuring charges requires that we make certain judgments and estimates regarding the nature , timing and amount of costs associated with planned exit activities . to the extent our actual results in exiting these facilities differ from our estimates and assumptions , we may be required to revise the estimates of future liabilities , requiring the recognition of additional restructuring charges or the reduction of liabilities already recognized . at the end of each reporting period , we evaluate the remaining accrued balances to ensure that no excess accruals are retained and the utilization of the provisions are for their intended purpose in accordance with developed exit plans . see note 16 to the consolidated financial statements in item 8 of this report . thailand flood related charges , net of insurance we recognized $ 3.4 million in thailand flood related charges , net of estimated insurance recoveries during the fourth quarter of 2011. see note 16 to the consolidated financial statements in item 8 of this report . income tax expense ( benefit ) income tax benefit of $ 10.8 million represented a negative effective tax rate of 26.3 % for 2011 , compared with income tax expense of $ 7.3 million at an effective tax rate of 8.3

