net sales for fiscal 2011 increased 0.6 % to $ 902.1 million compared to fiscal 2010. the increase in net sales was primarily attributable to revenue from new stores , partially offset by decreased same store sales of 1.2 % . net income for fiscal 2011 decreased 43.2 % to $ 11.7 million , or $ 0.53 per diluted share , compared to $ 20.6 million , or $ 0.94 per diluted share , for fiscal 2010. the decrease was driven primarily by lower merchandise margins and higher selling and administrative expense , which included a pre-tax impairment charge of $ 2.1 million , partially offset by lower income tax expense . gross profit for fiscal 2011 represented 32.3 % of net sales , compared with 33.2 % in the prior year . merchandise margins were 74 basis points lower than last year , while store occupancy expense was higher , reflecting new store openings . selling and administrative expense for fiscal 2011 increased 3.4 % to $ 272.4 million , or 30.2 % of net sales , compared to $ 263.5 million , or 29.4 % of net sales , for fiscal 2010. the increase was primarily attributable to higher store-related expense , excluding occupancy , as a result of new store openings , combined with higher advertising expense . selling and administrative expense also reflected a pre-tax impairment charge of $ 2.1 million during fiscal 2011. operating income for fiscal 2011 declined 44.0 % to $ 19.2 million , or 2.1 % of net sales , compared to $ 34.2 million , or 3.8 % of net sales , for fiscal 2010. the lower operating income primarily reflects lower merchandise margins and higher selling and administrative expense . results of operations the following table sets forth selected items from our consolidated statements of operations by dollar and as a percentage of our net sales for the periods indicated : replace_table_token_8_th ( 1 ) fiscal 2011 and 2010 each included 52 weeks . fiscal 2009 included 53 weeks . ( 2 ) in the fourth quarter of fiscal 2010 , we recorded a net pre-tax charge of $ 2.3 million reflecting a legal settlement accrual , of which $ 0.8 million was classified as a reduction to net sales and $ 1.5 million was classified as selling and administrative expense . this charge reduced net income in fiscal 2010 by $ 1.5 million , or $ 0.07 per diluted share . ( 3 ) cost of sales includes the cost of merchandise , net of discounts or allowances earned , freight , inventory reserves , buying , distribution center costs and store occupancy costs . store occupancy costs include rent , amortization of leasehold improvements , common area maintenance , property taxes and insurance . ( 4 ) selling and administrative expense includes store-related expense , other than store occupancy costs , as well as advertising , depreciation and amortization , expense associated with operating our corporate headquarters and impairment charges , if any . 25 ( 5 ) in fiscal 2011 , we recorded a pre-tax non-cash impairment charge of $ 2.1 million related to certain underperforming stores . this impairment charge was included in selling and administrative expense , and reduced net income in fiscal 2011 by $ 1.5 million , or $ 0.07 per diluted share . ( 6 ) in the fourth quarter of fiscal 2009 , we recorded a net pre-tax charge of $ 1.0 million , which reflected a legal settlement accrual offset by proceeds received from the settlement of a lawsuit relating to credit card fees . this charge reduced net income in fiscal 2009 by $ 0.6 million , or $ 0.03 per diluted share . ( 7 ) same store sales for a period reflect net sales from stores operated throughout that period as well as the corresponding prior period ; e.g . , two comparable annual reporting periods for annual comparisons . same store sales comparisons for fiscal 2010 versus fiscal 2009 were made on a comparable 52-week basis , while same store sales comparisons for fiscal 2009 versus fiscal 2008 were made on a comparable 53-week basis . ( 8 ) net income for fiscal 2011 , 2010 and 2009 reflected the impact of the economic recession , which weakened consumer demand and negatively impacted our net sales . fiscal 2011 compared to fiscal 2010 net sales . net sales increased by $ 5.3 million , or 0.6 % , to $ 902.1 million for fiscal 2011 from $ 896.8 million for fiscal 2010. the change in net sales was primarily attributable to the following : added sales from new stores reflected the opening of 28 new stores since january 3 , 2010. the revenue from new store sales was partially offset by a reduction in same store and closed store sales . same store sales decreased 1.2 % for fiscal 2011 versus fiscal 2010. same store sales for a period reflect net sales from stores that operated throughout the period as well as the corresponding prior period ; e.g . , comparable yearly reporting periods for yearly comparisons . net sales for fiscal 2011 continued to be impacted by the economic recession , and we experienced decreased customer traffic into our retail stores when compared with fiscal 2010. net sales for fiscal 2010 reflected a net pre-tax charge of $ 0.8 million for a legal settlement accrual that was classified as a reduction of net sales . store count at the end of fiscal 2011 was 406 versus 398 at the end of fiscal 2010. we opened 11 new stores and two relocations in fiscal 2011 , and closed three stores in fiscal 2011 as part of relocations that began in fiscal 2010. for fiscal 2012 , we expect to open approximately ten new stores and relocate approximately seven stores . story_separator_special_tag we may declare or pay cash dividends or repurchase stock only if , among other things , no default or event of default then exists or would arise from such dividend or repurchase of stock and , after giving effect to such dividend or repurchase , certain availability and or fixed charge coverage ratio requirements are satisfied . the credit agreement contains customary events of default , including , without limitation , failure to pay when due principal amounts with respect to the credit facility , failure to pay any interest or other amounts under the credit facility for five days after becoming due , failure to comply with certain agreements or covenants contained in the credit agreement , failure to satisfy certain judgments against us , failure to pay when due ( or any other default which does or may lead to the acceleration of ) certain other material indebtedness in principal amount in excess of $ 5.0 million , and certain insolvency and bankruptcy events . on october 31 , 2011 , we entered into a first amendment to credit agreement and amended certain provisions of our credit agreement . after the amendment , the applicable interest rate on our borrowings will be a function of the daily average , over the preceding fiscal quarter , of the excess of the credit facility over amounts borrowed ( such amount being referred to as the average daily excess availability ) . those loans designated as libo rate loans shall bear interest at a rate equal to the then applicable libo rate plus an applicable margin as shown in the table below . those loans designated as base rate loans shall bear interest at a rate equal to the applicable margin for base rate loans ( as shown below ) plus the highest of ( a ) the federal funds rate , as in effect from time to time , plus one-half of one percent ( 0.50 % ) , ( b ) the libo rate , as adjusted to account for statutory reserves , plus one percent ( 1.00 % ) , or ( c ) the rate of interest in effect for such day as publicly announced from time to time by wells fargo as its prime rate. the applicable margin for all loans will be as set forth below as a function of average daily excess availability for the preceding fiscal quarter . replace_table_token_11_th the amendment reduced the commitment fee assessed on the unused portion of the credit facility to 0.375 % per annum . the amendment also extended the maturity date of the credit agreement from october 18 , 2014 to october 31 , 2016 and modified the provisions for restricting certain payments and investments . 31 the following table provides information about our revolving credit borrowings as of and for the periods indicated : replace_table_token_12_th future capital requirements . we had cash and cash equivalents on hand of $ 4.9 million at january 1 , 2012. we expect capital expenditures for fiscal 2012 , excluding non-cash acquisitions , to range from approximately $ 15.0 million to $ 18.0 million , primarily to fund the opening of new stores , store-related remodeling , distribution center equipment and computer hardware and software purchases . for fiscal 2012 , we expect to open approximately ten new stores and relocate approximately seven stores . of the seven stores expected to be relocated in fiscal 2012 , we anticipate closing approximately four stores this year and the remaining three stores in fiscal 2013. quarterly dividend payments of $ 0.05 per share of outstanding common stock , for an annual rate of $ 0.20 per share , were paid in fiscal 2010. in the first quarter of fiscal 2011 , our board of directors increased our quarterly cash dividend to $ 0.075 per share of outstanding common stock , for an annual rate of $ 0.30 per share , which was paid in fiscal 2011. in the first quarter of fiscal 2012 , our board of directors declared a quarterly cash dividend of $ 0.075 per share of outstanding common stock , which will be paid on march 22 , 2012 to stockholders of record as of march 8 , 2012. as of february 23 , 2012 , a total of $ 12.1 million remained available for share repurchases under our share repurchase program . we consider several factors in determining when and if we make share repurchases including , among other things , our alternative cash requirements , existing business conditions and the market price of our stock . we believe we will be able to fund our cash requirements , for at least the next twelve months , from cash and cash equivalents on hand , operating cash flows and borrowings from our revolving credit facility . however , our ability to satisfy our cash requirements depends upon our future performance , which in turn is subject to general economic conditions and regional risks , and to financial , business and other factors affecting our operations , including factors beyond our control . there is no assurance that we will be able to generate sufficient cash flow or that we will be able to maintain our ability to borrow under our revolving credit facility . if we are unable to generate sufficient cash flow from operations to meet our obligations and commitments , or if we are unable to maintain our ability to borrow sufficient amounts under our credit agreement , we will be required to refinance or restructure our indebtedness or raise additional debt or equity capital . additionally , we may be required to sell material assets or operations , suspend or reduce dividend payments or delay or forego expansion opportunities . we might not be able to implement successful alternative strategies on satisfactory terms , if at all . 32 off-balance sheet arrangements and contractual obligations . our material off-balance sheet arrangements are operating lease obligations

liquidity and capital resources our principal liquidity requirements are for working capital , capital expenditures and cash dividends . we fund our liquidity requirements primarily through cash and cash equivalents on hand , cash flow from operations and borrowings from our revolving credit facility . we believe our cash and cash equivalents on hand , future funds from operations and borrowings from our revolving credit facility will be sufficient to fund our cash requirements for at least the next 12 months . there is no assurance , however , that we will be able to generate sufficient cash flows from operations or maintain our ability to borrow under our revolving credit facility . we ended fiscal 2011 with $ 4.9 million of cash and cash equivalents compared with $ 5.6 million in fiscal 2010. after reducing our long-term debt by $ 6.7 million , or 12.1 % , during fiscal 2010 , we increased our long-term debt by $ 15.2 million , or 31.4 % , during fiscal 2011 to $ 63.5 million from $ 48.3 million at the end of fiscal 2010. the following table summarizes our cash flows from operating , investing and financing activities for each of the past three fiscal years : replace_table_token_9_th the seasonality of our business historically provides greater cash flow from operations during the holiday and winter selling season , with fourth fiscal quarter net sales traditionally generating the strongest profits of our fiscal year . typically , we use operating cash flow and borrowings under our revolving credit facility to fund inventory increases in anticipation of the holidays and our inventory levels are at their highest in the months leading up to christmas . as holiday sales significantly reduce inventory levels , this reduction , combined with net income , historically provides us with strong cash flow from operations at the end of our fiscal year . for fiscal 2011 , we strategically increased merchandise inventory levels to add certain new products to stimulate sales and also purchased inventory earlier in the year to mitigate the impact of product cost inflation and potential delivery delays .


 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 liquidity requirements are for working capital , capital expenditures and cash dividends . we fund our liquidity requirements primarily through cash and cash equivalents on hand , cash flow from operations and borrowings from our revolving credit facility . we believe our cash and cash equivalents on hand , future funds from operations and borrowings from our revolving credit facility will be sufficient to fund our cash requirements for at least the next 12 months . there is no assurance , however , that we will be able to generate sufficient cash flows from operations or maintain our ability to borrow under our revolving credit facility . we ended fiscal 2011 with $ 4.9 million of cash and cash equivalents compared with $ 5.6 million in fiscal 2010. after reducing our long-term debt by $ 6.7 million , or 12.1 % , during fiscal 2010 , we increased our long-term debt by $ 15.2 million , or 31.4 % , during fiscal 2011 to $ 63.5 million from $ 48.3 million at the end of fiscal 2010. the following table summarizes our cash flows from operating , investing and financing activities for each of the past three fiscal years : replace_table_token_9_th the seasonality of our business historically provides greater cash flow from operations during the holiday and winter selling season , with fourth fiscal quarter net sales traditionally generating the strongest profits of our fiscal year . typically , we use operating cash flow and borrowings under our revolving credit facility to fund inventory increases in anticipation of the holidays and our inventory levels are at their highest in the months leading up to christmas . as holiday sales significantly reduce inventory levels , this reduction , combined with net income , historically provides us with strong cash flow from operations at the end of our fiscal year . for fiscal 2011 , we strategically increased merchandise inventory levels to add certain new products to stimulate sales and also purchased inventory earlier in the year to mitigate the impact of product cost inflation and potential delivery delays .
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 Suspicious Activity Report : net sales for fiscal 2011 increased 0.6 % to $ 902.1 million compared to fiscal 2010. the increase in net sales was primarily attributable to revenue from new stores , partially offset by decreased same store sales of 1.2 % . net income for fiscal 2011 decreased 43.2 % to $ 11.7 million , or $ 0.53 per diluted share , compared to $ 20.6 million , or $ 0.94 per diluted share , for fiscal 2010. the decrease was driven primarily by lower merchandise margins and higher selling and administrative expense , which included a pre-tax impairment charge of $ 2.1 million , partially offset by lower income tax expense . gross profit for fiscal 2011 represented 32.3 % of net sales , compared with 33.2 % in the prior year . merchandise margins were 74 basis points lower than last year , while store occupancy expense was higher , reflecting new store openings . selling and administrative expense for fiscal 2011 increased 3.4 % to $ 272.4 million , or 30.2 % of net sales , compared to $ 263.5 million , or 29.4 % of net sales , for fiscal 2010. the increase was primarily attributable to higher store-related expense , excluding occupancy , as a result of new store openings , combined with higher advertising expense . selling and administrative expense also reflected a pre-tax impairment charge of $ 2.1 million during fiscal 2011. operating income for fiscal 2011 declined 44.0 % to $ 19.2 million , or 2.1 % of net sales , compared to $ 34.2 million , or 3.8 % of net sales , for fiscal 2010. the lower operating income primarily reflects lower merchandise margins and higher selling and administrative expense . results of operations the following table sets forth selected items from our consolidated statements of operations by dollar and as a percentage of our net sales for the periods indicated : replace_table_token_8_th ( 1 ) fiscal 2011 and 2010 each included 52 weeks . fiscal 2009 included 53 weeks . ( 2 ) in the fourth quarter of fiscal 2010 , we recorded a net pre-tax charge of $ 2.3 million reflecting a legal settlement accrual , of which $ 0.8 million was classified as a reduction to net sales and $ 1.5 million was classified as selling and administrative expense . this charge reduced net income in fiscal 2010 by $ 1.5 million , or $ 0.07 per diluted share . ( 3 ) cost of sales includes the cost of merchandise , net of discounts or allowances earned , freight , inventory reserves , buying , distribution center costs and store occupancy costs . store occupancy costs include rent , amortization of leasehold improvements , common area maintenance , property taxes and insurance . ( 4 ) selling and administrative expense includes store-related expense , other than store occupancy costs , as well as advertising , depreciation and amortization , expense associated with operating our corporate headquarters and impairment charges , if any . 25 ( 5 ) in fiscal 2011 , we recorded a pre-tax non-cash impairment charge of $ 2.1 million related to certain underperforming stores . this impairment charge was included in selling and administrative expense , and reduced net income in fiscal 2011 by $ 1.5 million , or $ 0.07 per diluted share . ( 6 ) in the fourth quarter of fiscal 2009 , we recorded a net pre-tax charge of $ 1.0 million , which reflected a legal settlement accrual offset by proceeds received from the settlement of a lawsuit relating to credit card fees . this charge reduced net income in fiscal 2009 by $ 0.6 million , or $ 0.03 per diluted share . ( 7 ) same store sales for a period reflect net sales from stores operated throughout that period as well as the corresponding prior period ; e.g . , two comparable annual reporting periods for annual comparisons . same store sales comparisons for fiscal 2010 versus fiscal 2009 were made on a comparable 52-week basis , while same store sales comparisons for fiscal 2009 versus fiscal 2008 were made on a comparable 53-week basis . ( 8 ) net income for fiscal 2011 , 2010 and 2009 reflected the impact of the economic recession , which weakened consumer demand and negatively impacted our net sales . fiscal 2011 compared to fiscal 2010 net sales . net sales increased by $ 5.3 million , or 0.6 % , to $ 902.1 million for fiscal 2011 from $ 896.8 million for fiscal 2010. the change in net sales was primarily attributable to the following : added sales from new stores reflected the opening of 28 new stores since january 3 , 2010. the revenue from new store sales was partially offset by a reduction in same store and closed store sales . same store sales decreased 1.2 % for fiscal 2011 versus fiscal 2010. same store sales for a period reflect net sales from stores that operated throughout the period as well as the corresponding prior period ; e.g . , comparable yearly reporting periods for yearly comparisons . net sales for fiscal 2011 continued to be impacted by the economic recession , and we experienced decreased customer traffic into our retail stores when compared with fiscal 2010. net sales for fiscal 2010 reflected a net pre-tax charge of $ 0.8 million for a legal settlement accrual that was classified as a reduction of net sales . store count at the end of fiscal 2011 was 406 versus 398 at the end of fiscal 2010. we opened 11 new stores and two relocations in fiscal 2011 , and closed three stores in fiscal 2011 as part of relocations that began in fiscal 2010. for fiscal 2012 , we expect to open approximately ten new stores and relocate approximately seven stores . story_separator_special_tag we may declare or pay cash dividends or repurchase stock only if , among other things , no default or event of default then exists or would arise from such dividend or repurchase of stock and , after giving effect to such dividend or repurchase , certain availability and or fixed charge coverage ratio requirements are satisfied . the credit agreement contains customary events of default , including , without limitation , failure to pay when due principal amounts with respect to the credit facility , failure to pay any interest or other amounts under the credit facility for five days after becoming due , failure to comply with certain agreements or covenants contained in the credit agreement , failure to satisfy certain judgments against us , failure to pay when due ( or any other default which does or may lead to the acceleration of ) certain other material indebtedness in principal amount in excess of $ 5.0 million , and certain insolvency and bankruptcy events . on october 31 , 2011 , we entered into a first amendment to credit agreement and amended certain provisions of our credit agreement . after the amendment , the applicable interest rate on our borrowings will be a function of the daily average , over the preceding fiscal quarter , of the excess of the credit facility over amounts borrowed ( such amount being referred to as the average daily excess availability ) . those loans designated as libo rate loans shall bear interest at a rate equal to the then applicable libo rate plus an applicable margin as shown in the table below . those loans designated as base rate loans shall bear interest at a rate equal to the applicable margin for base rate loans ( as shown below ) plus the highest of ( a ) the federal funds rate , as in effect from time to time , plus one-half of one percent ( 0.50 % ) , ( b ) the libo rate , as adjusted to account for statutory reserves , plus one percent ( 1.00 % ) , or ( c ) the rate of interest in effect for such day as publicly announced from time to time by wells fargo as its prime rate. the applicable margin for all loans will be as set forth below as a function of average daily excess availability for the preceding fiscal quarter . replace_table_token_11_th the amendment reduced the commitment fee assessed on the unused portion of the credit facility to 0.375 % per annum . the amendment also extended the maturity date of the credit agreement from october 18 , 2014 to october 31 , 2016 and modified the provisions for restricting certain payments and investments . 31 the following table provides information about our revolving credit borrowings as of and for the periods indicated : replace_table_token_12_th future capital requirements . we had cash and cash equivalents on hand of $ 4.9 million at january 1 , 2012. we expect capital expenditures for fiscal 2012 , excluding non-cash acquisitions , to range from approximately $ 15.0 million to $ 18.0 million , primarily to fund the opening of new stores , store-related remodeling , distribution center equipment and computer hardware and software purchases . for fiscal 2012 , we expect to open approximately ten new stores and relocate approximately seven stores . of the seven stores expected to be relocated in fiscal 2012 , we anticipate closing approximately four stores this year and the remaining three stores in fiscal 2013. quarterly dividend payments of $ 0.05 per share of outstanding common stock , for an annual rate of $ 0.20 per share , were paid in fiscal 2010. in the first quarter of fiscal 2011 , our board of directors increased our quarterly cash dividend to $ 0.075 per share of outstanding common stock , for an annual rate of $ 0.30 per share , which was paid in fiscal 2011. in the first quarter of fiscal 2012 , our board of directors declared a quarterly cash dividend of $ 0.075 per share of outstanding common stock , which will be paid on march 22 , 2012 to stockholders of record as of march 8 , 2012. as of february 23 , 2012 , a total of $ 12.1 million remained available for share repurchases under our share repurchase program . we consider several factors in determining when and if we make share repurchases including , among other things , our alternative cash requirements , existing business conditions and the market price of our stock . we believe we will be able to fund our cash requirements , for at least the next twelve months , from cash and cash equivalents on hand , operating cash flows and borrowings from our revolving credit facility . however , our ability to satisfy our cash requirements depends upon our future performance , which in turn is subject to general economic conditions and regional risks , and to financial , business and other factors affecting our operations , including factors beyond our control . there is no assurance that we will be able to generate sufficient cash flow or that we will be able to maintain our ability to borrow under our revolving credit facility . if we are unable to generate sufficient cash flow from operations to meet our obligations and commitments , or if we are unable to maintain our ability to borrow sufficient amounts under our credit agreement , we will be required to refinance or restructure our indebtedness or raise additional debt or equity capital . additionally , we may be required to sell material assets or operations , suspend or reduce dividend payments or delay or forego expansion opportunities . we might not be able to implement successful alternative strategies on satisfactory terms , if at all . 32 off-balance sheet arrangements and contractual obligations . our material off-balance sheet arrangements are operating lease obligations

