spectrum brands manufactures and markets alkaline , zinc carbon and hearing aid batteries , herbicides , insecticides and repellents and specialty pet supplies . spectrum brands also designs and markets rechargeable batteries , battery-powered lighting products , electric shavers and accessories , grooming products and hair care appliances . in addition , spectrum brands designs , markets and distributes a broad range of branded small appliances and personal care products . spectrum brands ' operations utilize manufacturing and product development facilities located in the united states , europe , latin america and asia . substantially , all of spectrum brands ' rechargeable batteries and chargers , shaving and grooming products , small household appliances , personal care products and portable lighting products are manufactured by third-party suppliers , primarily located in asia . spectrum brands sells products in approximately 140 countries through a variety of trade channels , including retailers , wholesalers and distributors , hearing aid professionals , industrial distributors and original equipment manufacturers ( oems ) and enjoys strong name recognition in these markets under the rayovac , varta and remington brands , each of which has been in existence for more than 80 years , and under the tetra , 8-in-1 , dingo , nature 's miracle , spectracide , cutter , hot shot , black & decker , george foreman , russell hobbs , farberware , black flag , furminator and various other brands . on october 8 , 2012 , spectrum brands entered into an agreement with stanley black & decker , inc. ( stanley black and decker ) to acquire the residential hardware and home improvement business ( the hhi business ) currently operated by stanley black & decker and certain of its subsidiaries for $ 1.4 billion , consisting of ( i ) the equity interests of certain subsidiaries of stanley black & decker engaged in the hhi business and ( ii ) certain assets of stanley black & decker used or held for use in connection with the hhi business ( the hardware acquisition ) . the hardware acquisition will also include the purchase of shares and assets of certain subsidiaries of stanley black & decker involved in the hhi business . furthermore , the hardware acquisition will also include the purchase of certain assets of tong lung metal industry co. ltd. , a taiwan corporation ( tlm taiwan ) , which is involved in the production of residential locksets ( the tlm residential business ) . the spectrum value model is at the heart of spectrum brands ' operating approach . this model emphasizes providing value to the consumer with products that work as well as or better than competitive products for a lower cost , while also delivering higher retailer margins . efforts are concentrated on winning at point of sale and on creating and maintaining a low-cost , efficient operating structure . spectrum brands ' operating performance is influenced by a number of factors including : general economic conditions ; foreign exchange fluctuations ; trends in consumer markets ; consumer confidence and preferences ; overall product line mix , including pricing and gross margin , which vary by product line and geographic market ; pricing of certain raw materials and commodities ; energy and fuel prices ; and general competitive positioning , especially as impacted by competitors ' advertising and promotional activities and pricing strategies . 94 insurance segment through fgl , we are a provider of annuity and life insurance products to the middle and upper-middle income markets in the united states . based in baltimore , maryland , fgl operates in the united states through its subsidiaries fidelity & guaranty life insurance company ( fgl insurance ) and fidelity & guaranty life insurance company of new york ( fgl ny insurance ) . fgl 's principal products are deferred annuities ( including fixed indexed annuity ( fia ) contracts , immediate annuities , and life insurance products , which are sold through a network of approximately 200 independent marketing organizations ( imos ) representing approximately 19,000 independent agents and managing general agents . as of september 30 , 2012 , fgl had over 713,000 policyholders nationwide and distributes its products throughout the united states . fgl 's most important imos are referred to as power partners. fgl 's power partners are currently comprised of 23 annuity imos and 14 life insurance imos . during fiscal 2012 , these power partners accounted for approximately 83 % of fgl 's sales volume . fgl believes that its relationships with these imos are strong . the average tenure of the top ten power partners is approximately 7 years . under accounting principles generally accepted in the united states of america ( us gaap ) , premium collections for fias and fixed rate annuities and immediate annuities without life contingency are reported as deposit liabilities ( i.e . , contractholder funds ) instead of as revenues . similarly , cash payments to policyholders are reported as decreases in the liability for contractholder funds and not as expenses . sources of revenues for products accounted for as deposit liabilities are net investment income , surrender and other charges deducted from contractholder funds , and net recognized gains ( losses ) on investments . components of expenses for products accounted for as deposit liabilities are interest sensitive and index product benefits ( primarily interest credited to account balances or the cost of providing index credits to the policyholder ) , amortization of intangibles including value of business acquired ( voba ) and deferred policy acquisition costs ( dac ) , other operating costs and expenses and income taxes . earnings from products accounted for as deposit liabilities are primarily generated from the excess of net investment income earned over the interest credited or the cost of providing index credits to the policyholder , known as the net investment spread . story_separator_special_tag during the first quarter of fiscal 2012 , fgl executed the second acquisition-related reinsurance amendment with wilton re , in which it ceded the majority of its indexed universal life insurance block of business to wilton re . as a result , the cost of insurance and surrender fees associated with this line of business are now ceded to wilton re thus reducing the total amount retained by fgl in fiscal 2012. operating costs and expenses consumer products and other costs of goods sold/gross profit . gross profit , representing net sales minus cost of goods sold , for fiscal 2012 was $ 1,115 million compared to $ 1,129 million during fiscal 2011 , representing a $ 14 million decrease . our gross profit margin , representing gross profit as a percentage of net sales , for fiscal 2012 decreased to 34.3 % from 35.4 % in fiscal 2011. the decrease in gross profit and gross profit margin for fiscal 2012 was driven by $ 36 million of negative foreign exchange impacts , a $ 17 million increase in commodity prices and higher costs for sourced goods , primarily from asia , a $ 12 million increase in costs due to changes in product mix and a $ 2 million increase in restructuring and related charges . these factors contributing to the decline in gross profit were tempered by increased organic sales which contributed $ 31 million of gross profit and fiscal 2012 acquisitions which contributed $ 23 million of gross profit . selling , general & administrative expenses . selling , general and administrative expenses ( sg & a ) decreased $ 77 million , or 8 % , to $ 870 million in fiscal 2012 from $ 947 million in fiscal 2011. the decrease is primarily due to synergies recognized subsequent to the sb/rh merger of $ 25 million , decreased asset impairment charges of $ 32 million , decreased acquisition and integration charges of $ 29 million , positive foreign exchange impacts of $ 20 million and savings from spectrum brands ' cost reduction initiatives . these decreases were partially offset by a $ 34 million increase in hgi 's general corporate expenses primarily due to the hiring of new personnel , bonus compensation accruals based on the increase in hgi 's net asset value ( compensation nav ) determined in accordance with the criteria established by hgi 's compensation committee ( as discussed further under consolidated below ) and an allocation of overhead costs from harbinger capital partners llc , an affiliate of hgi and the principal stockholders . adjusted ebitda . spectrum brands believes that certain non-us gaap financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods . adjusted earnings before interest , taxes , depreciation and amortization ( adjusted ebitda ) is a metric used by management and frequently used by the financial community . adjusted ebitda provides insight into an organization 's operating trends and facilitates comparisons between peer companies , since interest , taxes , depreciation and amortization can differ greatly between organizations as a result of differing capital structures and tax strategies . adjusted ebitda can also be a useful measure of a company 's ability to service debt and is one of the measures used for determining spectrum brands ' debt covenant compliance . adjusted ebitda excludes certain items that are unusual in nature or not comparable from period to period . while management believes that non-us gaap measurements are useful supplemental information , such adjusted results are not intended to replace the company 's us gaap financial results . adjusted ebitda increased $ 28 million , or 6 % , to $ 485 million for fiscal 2012 from $ 457 million for fiscal 2011. the increase in adjusted ebitda was primarily a result of reductions in sg & a expenses at spectrum 101 brands , attributable to cost synergies and positive foreign exchange impacts , partially offset by the slight decrease in gross profit resulting from commodity prices and increased costs from sourced goods . the table below shows the adjustments made to the reported operating income of the consumer products segment to calculate its adjusted ebitda : replace_table_token_13_th insurance benefits and other changes in policy reserves . benefits and other changes in policy reserves of $ 777 million and $ 248 million for fiscal 2012 and 2011 , respectively , include the change in the fia embedded derivative liability which includes the market value option liability change and the present value of future credits and guarantee liability change . the market value option liability increased $ 178 million and decreased $ 264 million for fiscal 2012 and 2011 , respectively , primarily due to changes in the equity markets during those periods . the present value of future credits and guarantee liability increased $ 7 million and $ 121 million for fiscal 2012 and 2011 , respectively . the increase in fiscal 2012 was primarily due to lower risk free rates during the year . fair value accounting for derivative instruments and the embedded derivatives in the fia contracts creates differences in the recognition of revenues and expenses from derivative instruments including the embedded derivative liability in our fixed index annuity contracts . the change in fair value of the embedded derivatives will not correspond to the change in fair value of the derivatives ( purchased call options and futures contracts ) because the purchased derivatives cover the next annual index period while the embedded derivative liability covers estimated credits over the expected life of the fia contracts . additionally , there were index credits , interest credits and bonuses of $ 382 million and $ 292 million , annuity payments of $ 242 million and $ 127 million and policy benefits and other reserve movements of $ 32 million and $ 28 million during fiscal 2012 and 2011 , respectively . changes in index

debt financing activities hgi on november 15 , 2010 and june 28 , 2011 , we issued $ 350 million and $ 150 million , respectively , or $ 500 million aggregate principal amount of the 10.625 % notes . the 10.625 % notes were sold only to qualified institutional buyers pursuant to rule 144a under the securities act of 1933 ( securities act ) and to certain persons in offshore transactions in reliance on regulation s , but were subsequently registered under the securities act . the 10.625 % notes were issued at an aggregate price equal to 99.31 % of the principal amount thereof , with a net original issue discount of $ 3.4 million . interest on the 10.625 % notes is payable semi-annually through november 15 , 2015. the 10.625 % notes are collateralized with a first priority lien on substantially all of the assets directly held by us , including stock in our subsidiaries ( with the exception of zap.com corporation , but including spectrum brands , harbinger f & g llc ( hfg ) , hgi funding llc and the securities of other subsidiaries formed since the issuance dates ) and our directly held cash and investment securities . we have the option to redeem the 10.625 % notes prior to may 15 , 2013 at a redemption price equal to 100 % of the principal amount plus a make-whole premium and accrued and unpaid interest to the date of redemption . at any time on or after may 15 , 2013 , we may redeem some or all of the 10.625 % notes at certain fixed redemption prices expressed as percentages of the principal amount , plus accrued and unpaid interest .


 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.
     ```debt financing activities hgi on november 15 , 2010 and june 28 , 2011 , we issued $ 350 million and $ 150 million , respectively , or $ 500 million aggregate principal amount of the 10.625 % notes . the 10.625 % notes were sold only to qualified institutional buyers pursuant to rule 144a under the securities act of 1933 ( securities act ) and to certain persons in offshore transactions in reliance on regulation s , but were subsequently registered under the securities act . the 10.625 % notes were issued at an aggregate price equal to 99.31 % of the principal amount thereof , with a net original issue discount of $ 3.4 million . interest on the 10.625 % notes is payable semi-annually through november 15 , 2015. the 10.625 % notes are collateralized with a first priority lien on substantially all of the assets directly held by us , including stock in our subsidiaries ( with the exception of zap.com corporation , but including spectrum brands , harbinger f & g llc ( hfg ) , hgi funding llc and the securities of other subsidiaries formed since the issuance dates ) and our directly held cash and investment securities . we have the option to redeem the 10.625 % notes prior to may 15 , 2013 at a redemption price equal to 100 % of the principal amount plus a make-whole premium and accrued and unpaid interest to the date of redemption . at any time on or after may 15 , 2013 , we may redeem some or all of the 10.625 % notes at certain fixed redemption prices expressed as percentages of the principal amount , plus accrued and unpaid interest .
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 Suspicious Activity Report : spectrum brands manufactures and markets alkaline , zinc carbon and hearing aid batteries , herbicides , insecticides and repellents and specialty pet supplies . spectrum brands also designs and markets rechargeable batteries , battery-powered lighting products , electric shavers and accessories , grooming products and hair care appliances . in addition , spectrum brands designs , markets and distributes a broad range of branded small appliances and personal care products . spectrum brands ' operations utilize manufacturing and product development facilities located in the united states , europe , latin america and asia . substantially , all of spectrum brands ' rechargeable batteries and chargers , shaving and grooming products , small household appliances , personal care products and portable lighting products are manufactured by third-party suppliers , primarily located in asia . spectrum brands sells products in approximately 140 countries through a variety of trade channels , including retailers , wholesalers and distributors , hearing aid professionals , industrial distributors and original equipment manufacturers ( oems ) and enjoys strong name recognition in these markets under the rayovac , varta and remington brands , each of which has been in existence for more than 80 years , and under the tetra , 8-in-1 , dingo , nature 's miracle , spectracide , cutter , hot shot , black & decker , george foreman , russell hobbs , farberware , black flag , furminator and various other brands . on october 8 , 2012 , spectrum brands entered into an agreement with stanley black & decker , inc. ( stanley black and decker ) to acquire the residential hardware and home improvement business ( the hhi business ) currently operated by stanley black & decker and certain of its subsidiaries for $ 1.4 billion , consisting of ( i ) the equity interests of certain subsidiaries of stanley black & decker engaged in the hhi business and ( ii ) certain assets of stanley black & decker used or held for use in connection with the hhi business ( the hardware acquisition ) . the hardware acquisition will also include the purchase of shares and assets of certain subsidiaries of stanley black & decker involved in the hhi business . furthermore , the hardware acquisition will also include the purchase of certain assets of tong lung metal industry co. ltd. , a taiwan corporation ( tlm taiwan ) , which is involved in the production of residential locksets ( the tlm residential business ) . the spectrum value model is at the heart of spectrum brands ' operating approach . this model emphasizes providing value to the consumer with products that work as well as or better than competitive products for a lower cost , while also delivering higher retailer margins . efforts are concentrated on winning at point of sale and on creating and maintaining a low-cost , efficient operating structure . spectrum brands ' operating performance is influenced by a number of factors including : general economic conditions ; foreign exchange fluctuations ; trends in consumer markets ; consumer confidence and preferences ; overall product line mix , including pricing and gross margin , which vary by product line and geographic market ; pricing of certain raw materials and commodities ; energy and fuel prices ; and general competitive positioning , especially as impacted by competitors ' advertising and promotional activities and pricing strategies . 94 insurance segment through fgl , we are a provider of annuity and life insurance products to the middle and upper-middle income markets in the united states . based in baltimore , maryland , fgl operates in the united states through its subsidiaries fidelity & guaranty life insurance company ( fgl insurance ) and fidelity & guaranty life insurance company of new york ( fgl ny insurance ) . fgl 's principal products are deferred annuities ( including fixed indexed annuity ( fia ) contracts , immediate annuities , and life insurance products , which are sold through a network of approximately 200 independent marketing organizations ( imos ) representing approximately 19,000 independent agents and managing general agents . as of september 30 , 2012 , fgl had over 713,000 policyholders nationwide and distributes its products throughout the united states . fgl 's most important imos are referred to as power partners. fgl 's power partners are currently comprised of 23 annuity imos and 14 life insurance imos . during fiscal 2012 , these power partners accounted for approximately 83 % of fgl 's sales volume . fgl believes that its relationships with these imos are strong . the average tenure of the top ten power partners is approximately 7 years . under accounting principles generally accepted in the united states of america ( us gaap ) , premium collections for fias and fixed rate annuities and immediate annuities without life contingency are reported as deposit liabilities ( i.e . , contractholder funds ) instead of as revenues . similarly , cash payments to policyholders are reported as decreases in the liability for contractholder funds and not as expenses . sources of revenues for products accounted for as deposit liabilities are net investment income , surrender and other charges deducted from contractholder funds , and net recognized gains ( losses ) on investments . components of expenses for products accounted for as deposit liabilities are interest sensitive and index product benefits ( primarily interest credited to account balances or the cost of providing index credits to the policyholder ) , amortization of intangibles including value of business acquired ( voba ) and deferred policy acquisition costs ( dac ) , other operating costs and expenses and income taxes . earnings from products accounted for as deposit liabilities are primarily generated from the excess of net investment income earned over the interest credited or the cost of providing index credits to the policyholder , known as the net investment spread . story_separator_special_tag during the first quarter of fiscal 2012 , fgl executed the second acquisition-related reinsurance amendment with wilton re , in which it ceded the majority of its indexed universal life insurance block of business to wilton re . as a result , the cost of insurance and surrender fees associated with this line of business are now ceded to wilton re thus reducing the total amount retained by fgl in fiscal 2012. operating costs and expenses consumer products and other costs of goods sold/gross profit . gross profit , representing net sales minus cost of goods sold , for fiscal 2012 was $ 1,115 million compared to $ 1,129 million during fiscal 2011 , representing a $ 14 million decrease . our gross profit margin , representing gross profit as a percentage of net sales , for fiscal 2012 decreased to 34.3 % from 35.4 % in fiscal 2011. the decrease in gross profit and gross profit margin for fiscal 2012 was driven by $ 36 million of negative foreign exchange impacts , a $ 17 million increase in commodity prices and higher costs for sourced goods , primarily from asia , a $ 12 million increase in costs due to changes in product mix and a $ 2 million increase in restructuring and related charges . these factors contributing to the decline in gross profit were tempered by increased organic sales which contributed $ 31 million of gross profit and fiscal 2012 acquisitions which contributed $ 23 million of gross profit . selling , general & administrative expenses . selling , general and administrative expenses ( sg & a ) decreased $ 77 million , or 8 % , to $ 870 million in fiscal 2012 from $ 947 million in fiscal 2011. the decrease is primarily due to synergies recognized subsequent to the sb/rh merger of $ 25 million , decreased asset impairment charges of $ 32 million , decreased acquisition and integration charges of $ 29 million , positive foreign exchange impacts of $ 20 million and savings from spectrum brands ' cost reduction initiatives . these decreases were partially offset by a $ 34 million increase in hgi 's general corporate expenses primarily due to the hiring of new personnel , bonus compensation accruals based on the increase in hgi 's net asset value ( compensation nav ) determined in accordance with the criteria established by hgi 's compensation committee ( as discussed further under consolidated below ) and an allocation of overhead costs from harbinger capital partners llc , an affiliate of hgi and the principal stockholders . adjusted ebitda . spectrum brands believes that certain non-us gaap financial measures may be useful in certain instances to provide additional meaningful comparisons between current results and results in prior operating periods . adjusted earnings before interest , taxes , depreciation and amortization ( adjusted ebitda ) is a metric used by management and frequently used by the financial community . adjusted ebitda provides insight into an organization 's operating trends and facilitates comparisons between peer companies , since interest , taxes , depreciation and amortization can differ greatly between organizations as a result of differing capital structures and tax strategies . adjusted ebitda can also be a useful measure of a company 's ability to service debt and is one of the measures used for determining spectrum brands ' debt covenant compliance . adjusted ebitda excludes certain items that are unusual in nature or not comparable from period to period . while management believes that non-us gaap measurements are useful supplemental information , such adjusted results are not intended to replace the company 's us gaap financial results . adjusted ebitda increased $ 28 million , or 6 % , to $ 485 million for fiscal 2012 from $ 457 million for fiscal 2011. the increase in adjusted ebitda was primarily a result of reductions in sg & a expenses at spectrum 101 brands , attributable to cost synergies and positive foreign exchange impacts , partially offset by the slight decrease in gross profit resulting from commodity prices and increased costs from sourced goods . the table below shows the adjustments made to the reported operating income of the consumer products segment to calculate its adjusted ebitda : replace_table_token_13_th insurance benefits and other changes in policy reserves . benefits and other changes in policy reserves of $ 777 million and $ 248 million for fiscal 2012 and 2011 , respectively , include the change in the fia embedded derivative liability which includes the market value option liability change and the present value of future credits and guarantee liability change . the market value option liability increased $ 178 million and decreased $ 264 million for fiscal 2012 and 2011 , respectively , primarily due to changes in the equity markets during those periods . the present value of future credits and guarantee liability increased $ 7 million and $ 121 million for fiscal 2012 and 2011 , respectively . the increase in fiscal 2012 was primarily due to lower risk free rates during the year . fair value accounting for derivative instruments and the embedded derivatives in the fia contracts creates differences in the recognition of revenues and expenses from derivative instruments including the embedded derivative liability in our fixed index annuity contracts . the change in fair value of the embedded derivatives will not correspond to the change in fair value of the derivatives ( purchased call options and futures contracts ) because the purchased derivatives cover the next annual index period while the embedded derivative liability covers estimated credits over the expected life of the fia contracts . additionally , there were index credits , interest credits and bonuses of $ 382 million and $ 292 million , annuity payments of $ 242 million and $ 127 million and policy benefits and other reserve movements of $ 32 million and $ 28 million during fiscal 2012 and 2011 , respectively . changes in index

