as a result of this specific allegation , the uprr has informed the company that they currently intend to remove approximately 115,000 ties from track , which are a subset of ties subject to the july 12 , 2011 claim . we are reviewing this claim and , while our review is not complete , we continue to believe that these ties do not have a material deviation from our contractual specifications . we expect that the testing required to address this product specification issue will be completed sometime during the latter part of the second quarter of 2012 ; however , we expect that we will continue to work collaboratively with the uprr to address their overall product claim for some time to come . on january 11 , 2012 , cxt received a subpoena from the united states department of transportation inspector general ( “ ig ” ) requesting records related to its manufacture of concrete railroad ties in grand island , nebraska . we believe that this subpoena relates to the same set of circumstances giving rise to the uprr product claim . cxt and the company intend to cooperate fully with the ig . we can not predict what impact , if any , this investigation will have on the uprr 's product claim . based on the non-specific nature of the uprr 's assertion and our current inability to verify the claims , we are unable to determine a range of reasonably possible outcomes regarding this potential exposure matter . as a result , no accruals were made as a result of this claim as the impact , if any , can not be reasonably estimated at this time . no assurances can be given regarding the ultimate outcome of this matter . the ultimate resolution of this matter could have a material , adverse impact on our financial statements , results of operations , liquidity and capital resources . portec acquisition included in our 2011 rail products segment are the results of operations for our portec subsidiary . we acquired portec on december 15 , 2010 for approximately $ 113.3 million in cash . portec reported net sales of $ 106.1 million , gross profit of $ 36.0 million , total expenses of $ 25.3 million and net income of $ 8.6 million for the year ended december 31 , 2011. the 2010 acquisition period consisted of approximately two weeks from the acquisition date through december 31 , 2010. therefore , the results of operations portion of management 's discussion and analysis of financial condition and results of operations will not include a substantive comparison of the portec results . portec contributed $ 4.8 million in net sales , $ 0.6 million in gross profit and a net loss of $ ( 0.2 ) million in the two week period from the acquisition date through december 31 , 2010. other matters we recorded incremental warranty charges of approximately $ 1.8 million during the 2011 fourth quarter , a portion of which was related to a product issue with a transit authority and the remainder for concrete ties based on historical claim experience . no charges have been recorded related specifically for the uprr product claim dated july 12 , 2011. these charges were recorded within cost of goods sold and reported through our rail products segment . during 2011 , we provided the lessor of our houston , tx property with written notice of our termination of the lease in its entirety effective april 30 , 2012. as a result of this termination , we recognized $ 577,000 of previously deferred gain . at december 31 , 2011 , approximately $ 457,000 of unrecognized deferred gain is being amortized over the remaining life of the lease . general l.b . foster company is a leading manufacturer , fabricator and distributor of products and services for the rail , construction , energy and utility markets . the company is comprised of three business segments : rail products , construction products and tubular products . 22 rail products the rail products segment is composed of several manufacturing and distribution businesses that provide a variety of products for railroads , transit authorities , industrial companies and mining applications throughout north america and the united kingdom . rail products has sales offices throughout the united states , canada and the united kingdom and frequently bids on rail projects where it can offer products manufactured by the company or sourced from numerous suppliers . these products may be provided as a package to rail lines , transit authorities and construction contractors which reduces the customer 's procurement efforts and provides value added , just in time delivery . the rail products segment designs and manufactures bonded insulated rail joints , cuts and drills rail and manufactures concrete cross ties and turnout ties . the company has concrete tie manufacturing facilities in spokane , wa and tucson , az . the company also has two facilities that design , test and fabricate rail products in atlanta , ga and niles , oh . through our portec subsidiary , we engineer , manufacture and assemble friction management products , railway wayside data collection and management systems and engineer and sell securement systems and related products . the rail distribution business provides our customers with access to a variety of products including stick rail , continuous welded rail , specialty trackwork , power rail and various rail accessories . this is a highly competitive business that , once specifications are met , depends heavily on pricing . the company maintains relationships with several rail manufacturers but procures the majority of the rail it distributes from one supplier . rail accessories are sourced from a wide variety of suppliers . construction products the construction products segment is composed of the following business units : piling , fabricated products , and precast concrete buildings . story_separator_special_tag this similar adjustment for lifo reserve requirements had a positive impact for the prior year period . 28 the addition of portec resulted in increased selling and administrative expenses of approximately $ 4.9 million . exclusive of the impact of portec , selling and administrative expenses in the 2011 period increased approximately $ 0.2 million due mainly to approximately $ 1.4 million in testing expenses for material scientists and prestressed concrete experts related to the uprr product warranty claim . as a result of the acquisition of portec , amortization expense increased by approximately $ 0.4 million and we recognized increased transactional foreign exchange losses for the three months ended december 31 , 2011 primarily related to fluctuations in the exchange rates between the canadian dollar and the united states dollar . also , we recognized more previously deferred gains associated with the early termination of a lease for our threaded products facility in houston , tx . finally , having a positive impact in the 2010 fourth quarter was the recognition of a $ 1.4 million pre-tax gain associated with the remeasurement of our holding of portec equity securities prior to our december 15 , 2010 acquisition . the effective income tax rate in the fourth quarter of 2011 was 36.0 % compared to 41.2 % in the prior year quarter . the decrease was primarily due to lower statutory tax rates related to the foreign operations acquired in the portec business combination . results of operations – segment analysis rail products replace_table_token_10_th fourth quarter 2011 compared to fourth quarter 2010 exclusive of the impact of portec ( $ 23.1 million ) , our rail products segment 2011 sales decreased approximately $ 10.6 million from the 2010 fourth quarter . while our operational tie plants both experienced concrete tie volume increases in the current quarter , they did not overcome the loss of sales from the closure of our grand island , ne facility . additionally , our rail distribution business experienced a reduction in volumes sold , primarily from our decision to deemphasize the relay rail business . the 2010 quarter also included a large new rail project which was completed prior to the 2011 quarter . portec delivered approximately $ 10.2 million in gross profit increases , while foster rail gross profit decreased by $ 1.0 million . exclusive of the impact of portec , our rail products gross profit margin would have increased approximately 70 basis points as compared to the 2010 quarter . our transit products division drove this 2011 increase due mainly to product mix compared to the prior year quarter . additionally , while our rail distribution business had reduced volumes , offsetting this were price increases which delivered gross profit margin expansion over the prior year period . mitigating these favorable improvements were the adverse cost of sales charges recorded by cxt . mainly related to our now closed grand island , ne facility , this division recorded additional concrete tie warranty charges of approximately $ 1.8 million in the 2011 quarter , a portion of which was related to a product issue with a transit authority and the remainder for concrete ties based on historical claim experience . no charges have been recorded related specifically for the uprr product claim described previously . 29 construction products replace_table_token_11_th fourth quarter 2011 compared to fourth quarter 2010 our construction products backlog has been approximately 30-35 % lower over the last few quarters . additionally , new orders in the 2011 fourth quarter have decreased approximately 26.2 % from the 2010 period . these cumulative effects have resulted in negative impacts on sales and gross profit in the current quarter . the 2011 fourth quarter sales were negatively impacted by lower piling volumes and , to a lesser extent , lower concrete buildings volumes . the loss of federal stimulus spending led to more normalized sales of concrete buildings , a decrease of approximately 48 % over the 2010 quarter . product mix within our piling division had an unfavorable impact on the prior year quarter , but drove the overall increase in gross profit margin for the segment in 2011. this margin increase , albeit over decreased volumes , fully offset margin declines in our concrete buildings division due to increased unfavorable manufacturing variances resulting from reduced sales volumes . tubular products replace_table_token_12_th fourth quarter 2011 compared to fourth quarter 2010 the improvement in the 2011 quarter was driven by our coated pipe division . increased sales volumes allowed us to leverage plant and other operating efficiencies in the 2011 quarter . our threaded products division sales and gross profit were flat with the prior year period , however gross profit margin was negatively impacted by expenses associated with moving the threading operation from houston , tx to magnolia , tx . 30 year-to-date results of operations replace_table_token_13_th the year 2011 compared to the year 2010 – company analysis diluted earnings per share for 2011 were $ 2.22 which compares favorably to diluted earnings per share of $ 1.98 for 2010. gross profit increased due to the inclusion of portec 's results for the full year in 2011 , partially offset by significantly reduced gross profits at our concrete buildings division and also to the charges taken related to our grand island concrete tie manufacturing facility . 31 approximately $ 22.1 million of the increase in selling and administrative expenses relates to portec . exclusive of the impact of portec , selling and administrative expenses in the 2011 period increased approximately $ 3.0 million due primarily to higher outside services expenses ( $ 2.0 million ) and higher salaries ( $ 1.0 million ) . we recognized approximately $ 1.4 million for testing expenses associated with the uprr product warranty claim , $ 1.5 million in portec integration costs and $ 0.5 million associated with other outside service providers in 2011. these increased expenses offset the elimination of the approximately $ 2.4 million

cash flow from investing activities the final cash payment of $ 9.0 million associated with our acquisition of portec was paid in january 2011. we incurred capital expenditures of $ 11.9 million in 2011 primarily for a new threading facility in magnolia , tx , a new facility for our kelsan friction management business in vancouver , british columbia , canada , plant and yard upgrades and information technology infrastructure . also , we contributed an additional $ 0.8 million to our joint venture under the amended agreement . we expect to generate cash flows from operations in 2012 in excess of capital expenditures , scheduled debt service payments , share repurchases and dividends . investing activities used $ 87.6 million during 2010 primarily from our acquisitions of portec and idsi , net of portec cash acquired . capital expenditures totaled $ 6.2 million . also , we contributed an additional $ 0.8 million to our joint venture . these uses were partially offset by the receipt of $ 10.2 million in proceeds related to the united states department of justice required divestiture of the portec rail joint business . investing activities used $ 5.4 million during 2009 primarily from capital expenditures totaling $ 6.1 million . also , our capital contributions to our newly formed corporate joint venture used $ 1.4 million in 2009. these uses were partially offset by $ 2.1 million in proceeds provided by the sale of a portion of our investment in marketable securities . capital spending during 2009 was primarily for the acquisition of land and construction of a building that will be leased to our joint venture .


 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.
     ```cash flow from investing activities the final cash payment of $ 9.0 million associated with our acquisition of portec was paid in january 2011. we incurred capital expenditures of $ 11.9 million in 2011 primarily for a new threading facility in magnolia , tx , a new facility for our kelsan friction management business in vancouver , british columbia , canada , plant and yard upgrades and information technology infrastructure . also , we contributed an additional $ 0.8 million to our joint venture under the amended agreement . we expect to generate cash flows from operations in 2012 in excess of capital expenditures , scheduled debt service payments , share repurchases and dividends . investing activities used $ 87.6 million during 2010 primarily from our acquisitions of portec and idsi , net of portec cash acquired . capital expenditures totaled $ 6.2 million . also , we contributed an additional $ 0.8 million to our joint venture . these uses were partially offset by the receipt of $ 10.2 million in proceeds related to the united states department of justice required divestiture of the portec rail joint business . investing activities used $ 5.4 million during 2009 primarily from capital expenditures totaling $ 6.1 million . also , our capital contributions to our newly formed corporate joint venture used $ 1.4 million in 2009. these uses were partially offset by $ 2.1 million in proceeds provided by the sale of a portion of our investment in marketable securities . capital spending during 2009 was primarily for the acquisition of land and construction of a building that will be leased to our joint venture .
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 Suspicious Activity Report : as a result of this specific allegation , the uprr has informed the company that they currently intend to remove approximately 115,000 ties from track , which are a subset of ties subject to the july 12 , 2011 claim . we are reviewing this claim and , while our review is not complete , we continue to believe that these ties do not have a material deviation from our contractual specifications . we expect that the testing required to address this product specification issue will be completed sometime during the latter part of the second quarter of 2012 ; however , we expect that we will continue to work collaboratively with the uprr to address their overall product claim for some time to come . on january 11 , 2012 , cxt received a subpoena from the united states department of transportation inspector general ( “ ig ” ) requesting records related to its manufacture of concrete railroad ties in grand island , nebraska . we believe that this subpoena relates to the same set of circumstances giving rise to the uprr product claim . cxt and the company intend to cooperate fully with the ig . we can not predict what impact , if any , this investigation will have on the uprr 's product claim . based on the non-specific nature of the uprr 's assertion and our current inability to verify the claims , we are unable to determine a range of reasonably possible outcomes regarding this potential exposure matter . as a result , no accruals were made as a result of this claim as the impact , if any , can not be reasonably estimated at this time . no assurances can be given regarding the ultimate outcome of this matter . the ultimate resolution of this matter could have a material , adverse impact on our financial statements , results of operations , liquidity and capital resources . portec acquisition included in our 2011 rail products segment are the results of operations for our portec subsidiary . we acquired portec on december 15 , 2010 for approximately $ 113.3 million in cash . portec reported net sales of $ 106.1 million , gross profit of $ 36.0 million , total expenses of $ 25.3 million and net income of $ 8.6 million for the year ended december 31 , 2011. the 2010 acquisition period consisted of approximately two weeks from the acquisition date through december 31 , 2010. therefore , the results of operations portion of management 's discussion and analysis of financial condition and results of operations will not include a substantive comparison of the portec results . portec contributed $ 4.8 million in net sales , $ 0.6 million in gross profit and a net loss of $ ( 0.2 ) million in the two week period from the acquisition date through december 31 , 2010. other matters we recorded incremental warranty charges of approximately $ 1.8 million during the 2011 fourth quarter , a portion of which was related to a product issue with a transit authority and the remainder for concrete ties based on historical claim experience . no charges have been recorded related specifically for the uprr product claim dated july 12 , 2011. these charges were recorded within cost of goods sold and reported through our rail products segment . during 2011 , we provided the lessor of our houston , tx property with written notice of our termination of the lease in its entirety effective april 30 , 2012. as a result of this termination , we recognized $ 577,000 of previously deferred gain . at december 31 , 2011 , approximately $ 457,000 of unrecognized deferred gain is being amortized over the remaining life of the lease . general l.b . foster company is a leading manufacturer , fabricator and distributor of products and services for the rail , construction , energy and utility markets . the company is comprised of three business segments : rail products , construction products and tubular products . 22 rail products the rail products segment is composed of several manufacturing and distribution businesses that provide a variety of products for railroads , transit authorities , industrial companies and mining applications throughout north america and the united kingdom . rail products has sales offices throughout the united states , canada and the united kingdom and frequently bids on rail projects where it can offer products manufactured by the company or sourced from numerous suppliers . these products may be provided as a package to rail lines , transit authorities and construction contractors which reduces the customer 's procurement efforts and provides value added , just in time delivery . the rail products segment designs and manufactures bonded insulated rail joints , cuts and drills rail and manufactures concrete cross ties and turnout ties . the company has concrete tie manufacturing facilities in spokane , wa and tucson , az . the company also has two facilities that design , test and fabricate rail products in atlanta , ga and niles , oh . through our portec subsidiary , we engineer , manufacture and assemble friction management products , railway wayside data collection and management systems and engineer and sell securement systems and related products . the rail distribution business provides our customers with access to a variety of products including stick rail , continuous welded rail , specialty trackwork , power rail and various rail accessories . this is a highly competitive business that , once specifications are met , depends heavily on pricing . the company maintains relationships with several rail manufacturers but procures the majority of the rail it distributes from one supplier . rail accessories are sourced from a wide variety of suppliers . construction products the construction products segment is composed of the following business units : piling , fabricated products , and precast concrete buildings . story_separator_special_tag this similar adjustment for lifo reserve requirements had a positive impact for the prior year period . 28 the addition of portec resulted in increased selling and administrative expenses of approximately $ 4.9 million . exclusive of the impact of portec , selling and administrative expenses in the 2011 period increased approximately $ 0.2 million due mainly to approximately $ 1.4 million in testing expenses for material scientists and prestressed concrete experts related to the uprr product warranty claim . as a result of the acquisition of portec , amortization expense increased by approximately $ 0.4 million and we recognized increased transactional foreign exchange losses for the three months ended december 31 , 2011 primarily related to fluctuations in the exchange rates between the canadian dollar and the united states dollar . also , we recognized more previously deferred gains associated with the early termination of a lease for our threaded products facility in houston , tx . finally , having a positive impact in the 2010 fourth quarter was the recognition of a $ 1.4 million pre-tax gain associated with the remeasurement of our holding of portec equity securities prior to our december 15 , 2010 acquisition . the effective income tax rate in the fourth quarter of 2011 was 36.0 % compared to 41.2 % in the prior year quarter . the decrease was primarily due to lower statutory tax rates related to the foreign operations acquired in the portec business combination . results of operations – segment analysis rail products replace_table_token_10_th fourth quarter 2011 compared to fourth quarter 2010 exclusive of the impact of portec ( $ 23.1 million ) , our rail products segment 2011 sales decreased approximately $ 10.6 million from the 2010 fourth quarter . while our operational tie plants both experienced concrete tie volume increases in the current quarter , they did not overcome the loss of sales from the closure of our grand island , ne facility . additionally , our rail distribution business experienced a reduction in volumes sold , primarily from our decision to deemphasize the relay rail business . the 2010 quarter also included a large new rail project which was completed prior to the 2011 quarter . portec delivered approximately $ 10.2 million in gross profit increases , while foster rail gross profit decreased by $ 1.0 million . exclusive of the impact of portec , our rail products gross profit margin would have increased approximately 70 basis points as compared to the 2010 quarter . our transit products division drove this 2011 increase due mainly to product mix compared to the prior year quarter . additionally , while our rail distribution business had reduced volumes , offsetting this were price increases which delivered gross profit margin expansion over the prior year period . mitigating these favorable improvements were the adverse cost of sales charges recorded by cxt . mainly related to our now closed grand island , ne facility , this division recorded additional concrete tie warranty charges of approximately $ 1.8 million in the 2011 quarter , a portion of which was related to a product issue with a transit authority and the remainder for concrete ties based on historical claim experience . no charges have been recorded related specifically for the uprr product claim described previously . 29 construction products replace_table_token_11_th fourth quarter 2011 compared to fourth quarter 2010 our construction products backlog has been approximately 30-35 % lower over the last few quarters . additionally , new orders in the 2011 fourth quarter have decreased approximately 26.2 % from the 2010 period . these cumulative effects have resulted in negative impacts on sales and gross profit in the current quarter . the 2011 fourth quarter sales were negatively impacted by lower piling volumes and , to a lesser extent , lower concrete buildings volumes . the loss of federal stimulus spending led to more normalized sales of concrete buildings , a decrease of approximately 48 % over the 2010 quarter . product mix within our piling division had an unfavorable impact on the prior year quarter , but drove the overall increase in gross profit margin for the segment in 2011. this margin increase , albeit over decreased volumes , fully offset margin declines in our concrete buildings division due to increased unfavorable manufacturing variances resulting from reduced sales volumes . tubular products replace_table_token_12_th fourth quarter 2011 compared to fourth quarter 2010 the improvement in the 2011 quarter was driven by our coated pipe division . increased sales volumes allowed us to leverage plant and other operating efficiencies in the 2011 quarter . our threaded products division sales and gross profit were flat with the prior year period , however gross profit margin was negatively impacted by expenses associated with moving the threading operation from houston , tx to magnolia , tx . 30 year-to-date results of operations replace_table_token_13_th the year 2011 compared to the year 2010 – company analysis diluted earnings per share for 2011 were $ 2.22 which compares favorably to diluted earnings per share of $ 1.98 for 2010. gross profit increased due to the inclusion of portec 's results for the full year in 2011 , partially offset by significantly reduced gross profits at our concrete buildings division and also to the charges taken related to our grand island concrete tie manufacturing facility . 31 approximately $ 22.1 million of the increase in selling and administrative expenses relates to portec . exclusive of the impact of portec , selling and administrative expenses in the 2011 period increased approximately $ 3.0 million due primarily to higher outside services expenses ( $ 2.0 million ) and higher salaries ( $ 1.0 million ) . we recognized approximately $ 1.4 million for testing expenses associated with the uprr product warranty claim , $ 1.5 million in portec integration costs and $ 0.5 million associated with other outside service providers in 2011. these increased expenses offset the elimination of the approximately $ 2.4 million

