% of net sales , compared with 32.3 % in the prior year . merchandise margins were 24 basis points lower than last year , partially offset by reduced store occupancy expense as a percentage of net sales . selling and administrative expense for fiscal 2012 increased 1.6 % to $ 276.8 million , or 29.4 % of net sales , compared to $ 272.4 million , or 30.2 % of net sales , for fiscal 2011. the increase was primarily attributable to higher store-related expense , excluding occupancy , as a result of new store openings and increased employee benefit costs . operating income for fiscal 2012 increased 35.5 % to $ 26.0 million , or 2.8 % of net sales , compared to $ 19.2 million , or 2.1 % of net sales , for fiscal 2011. the higher operating income primarily reflects higher net sales , partially offset by the impact of 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_9_th ( 1 ) fiscal 2012 , 2011 and 2010 each included 52 weeks . 26 ( 2 ) in 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 . ( 5 ) in fiscal 2012 , we recorded a pre-tax charge related to store closing costs of $ 1.2 million . this charge was included in selling and administrative expense , and reduced net income in fiscal 2012 by $ 0.8 million , or $ 0.03 per diluted share . ( 6 ) in fiscal 2012 and 2011 , we recorded pre-tax non-cash impairment charges of $ 0.2 million and $ 2.1 million , respectively , related to certain underperforming stores . these impairment charges are included in selling and administrative expense , and reduced net income in fiscal 2012 and 2011 by $ 0.1 million , or $ 0.01 per diluted share , and $ 1.5 million , or $ 0.07 per diluted share , respectively . ( 7 ) same store sales for a period reflect net sales from stores operated throughout that period as well as the full corresponding prior year period . fiscal 2012 compared to fiscal 2011 net sales . net sales increased by $ 38.4 million , or 4.3 % , to $ 940.5 million for fiscal 2012 from $ 902.1 million for fiscal 2011. the change in net sales was primarily attributable to the following : same store sales increased 2.5 % for fiscal 2012 versus fiscal 2011. we believe our higher same store sales largely reflected favorable customer response to changes in our merchandise offering and new marketing initiatives , despite lower sales of winter merchandise as a result of unseasonably warm winter weather in the first quarter of fiscal 2012. same store sales for a period reflect net sales from stores that operated throughout the period as well as the full corresponding prior year period . added sales from new stores reflected the opening of 27 new stores since january 2 , 2011 , partially offset by a reduction in closed store sales . net sales for fiscal 2012 continued to be impacted by the economic recession . while we experienced decreased customer transactions in our retail stores in fiscal 2012 when compared with fiscal 2011 , the average sale per transaction increased primarily as a result of changes in our sales mix and merchandise offering . store count at the end of fiscal 2012 was 414 versus 406 at the end of fiscal 2011. we opened 14 new stores , three of which were relocations , and closed six stores , two of which were relocations , in fiscal 2012. for fiscal 2013 , we expect to open approximately 15 to 20 new stores , including three relocations , and to close approximately three relocated stores . gross profit . gross profit increased by $ 11.2 million to $ 302.8 million in fiscal 2012 from $ 291.6 million in fiscal 2011. gross profit as a percentage of net sales in fiscal 2012 was 32.2 % compared with 32.3 % during the prior year . the change in gross profit was primarily attributable to the following : net sales increased by $ 38.4 million in fiscal 2012 compared to the prior year . merchandise margins , which exclude buying , occupancy and distribution costs , decreased for fiscal 2012 by 24 basis points versus fiscal 2011 , primarily reflecting a sales mix shift away from higher margin winter product categories in the first quarter of fiscal 2012 , combined with product cost inflation . store occupancy costs for fiscal 2012 increased by $ 2.6 million year over year due primarily to the increase in store count . story_separator_special_tag 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_12_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 . 33 the following table provides information about our revolving credit borrowings as of and for the periods indicated : replace_table_token_13_th future capital requirements . we had cash and cash equivalents on hand of $ 7.6 million at december 30 , 2012. we expect capital expenditures for fiscal 2013 , excluding non-cash acquisitions , to range from approximately $ 18.0 million to $ 22.0 million , primarily to fund the opening of new stores , store-related remodeling , distribution center equipment and computer hardware and software purchases . for fiscal 2013 , we expect to open approximately 15 to 20 new stores , including three relocations , and to close approximately three relocated stores . 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 and 2012. in the first quarter of fiscal 2013 , our board of directors declared a quarterly cash dividend of $ 0.10 per share of outstanding common stock , for an annual rate of $ 0.40 per share , which will be paid on march 22 , 2013 to stockholders of record as of march 8 , 2013. as of december 30 , 2012 , a total of $ 9.6 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 flows 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 flows 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 . off-balance sheet arrangements and contractual obligations . our material off-balance sheet arrangements are operating lease obligations and letters of credit . we excluded these items from the balance sheet in accordance with accounting principles generally accepted in the united states of america ( gaap ) . a summary of our operating lease obligations and letter of credit commitments by fiscal year is included in the table below . additional information regarding our operating leases is available in item 2 , properties and

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 flows from operations and borrowings from our revolving credit facility . we believe our cash and cash equivalents on hand , future cash flows 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 2012 with $ 7.6 million of cash and cash equivalents compared with $ 4.9 million in fiscal 2011. after increasing our long-term debt by $ 15.2 million , or 31.4 % , during fiscal 2011 , we decreased our long- 29 term debt by $ 16.0 million , or 25.2 % , during fiscal 2012 to $ 47.5 million from $ 63.5 million at the end of fiscal 2011. the following table summarizes our cash flows from operating , investing and financing activities for each of the past three fiscal years : replace_table_token_10_th the seasonality of our business historically provides greater cash flows from operations during the holiday and winter selling season . typically , we use operating cash flows 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 flows from operations at the end of our fiscal year .


 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 flows from operations and borrowings from our revolving credit facility . we believe our cash and cash equivalents on hand , future cash flows 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 2012 with $ 7.6 million of cash and cash equivalents compared with $ 4.9 million in fiscal 2011. after increasing our long-term debt by $ 15.2 million , or 31.4 % , during fiscal 2011 , we decreased our long- 29 term debt by $ 16.0 million , or 25.2 % , during fiscal 2012 to $ 47.5 million from $ 63.5 million at the end of fiscal 2011. the following table summarizes our cash flows from operating , investing and financing activities for each of the past three fiscal years : replace_table_token_10_th the seasonality of our business historically provides greater cash flows from operations during the holiday and winter selling season . typically , we use operating cash flows 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 flows from operations at the end of our fiscal year .
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 Suspicious Activity Report : % of net sales , compared with 32.3 % in the prior year . merchandise margins were 24 basis points lower than last year , partially offset by reduced store occupancy expense as a percentage of net sales . selling and administrative expense for fiscal 2012 increased 1.6 % to $ 276.8 million , or 29.4 % of net sales , compared to $ 272.4 million , or 30.2 % of net sales , for fiscal 2011. the increase was primarily attributable to higher store-related expense , excluding occupancy , as a result of new store openings and increased employee benefit costs . operating income for fiscal 2012 increased 35.5 % to $ 26.0 million , or 2.8 % of net sales , compared to $ 19.2 million , or 2.1 % of net sales , for fiscal 2011. the higher operating income primarily reflects higher net sales , partially offset by the impact of 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_9_th ( 1 ) fiscal 2012 , 2011 and 2010 each included 52 weeks . 26 ( 2 ) in 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 . ( 5 ) in fiscal 2012 , we recorded a pre-tax charge related to store closing costs of $ 1.2 million . this charge was included in selling and administrative expense , and reduced net income in fiscal 2012 by $ 0.8 million , or $ 0.03 per diluted share . ( 6 ) in fiscal 2012 and 2011 , we recorded pre-tax non-cash impairment charges of $ 0.2 million and $ 2.1 million , respectively , related to certain underperforming stores . these impairment charges are included in selling and administrative expense , and reduced net income in fiscal 2012 and 2011 by $ 0.1 million , or $ 0.01 per diluted share , and $ 1.5 million , or $ 0.07 per diluted share , respectively . ( 7 ) same store sales for a period reflect net sales from stores operated throughout that period as well as the full corresponding prior year period . fiscal 2012 compared to fiscal 2011 net sales . net sales increased by $ 38.4 million , or 4.3 % , to $ 940.5 million for fiscal 2012 from $ 902.1 million for fiscal 2011. the change in net sales was primarily attributable to the following : same store sales increased 2.5 % for fiscal 2012 versus fiscal 2011. we believe our higher same store sales largely reflected favorable customer response to changes in our merchandise offering and new marketing initiatives , despite lower sales of winter merchandise as a result of unseasonably warm winter weather in the first quarter of fiscal 2012. same store sales for a period reflect net sales from stores that operated throughout the period as well as the full corresponding prior year period . added sales from new stores reflected the opening of 27 new stores since january 2 , 2011 , partially offset by a reduction in closed store sales . net sales for fiscal 2012 continued to be impacted by the economic recession . while we experienced decreased customer transactions in our retail stores in fiscal 2012 when compared with fiscal 2011 , the average sale per transaction increased primarily as a result of changes in our sales mix and merchandise offering . store count at the end of fiscal 2012 was 414 versus 406 at the end of fiscal 2011. we opened 14 new stores , three of which were relocations , and closed six stores , two of which were relocations , in fiscal 2012. for fiscal 2013 , we expect to open approximately 15 to 20 new stores , including three relocations , and to close approximately three relocated stores . gross profit . gross profit increased by $ 11.2 million to $ 302.8 million in fiscal 2012 from $ 291.6 million in fiscal 2011. gross profit as a percentage of net sales in fiscal 2012 was 32.2 % compared with 32.3 % during the prior year . the change in gross profit was primarily attributable to the following : net sales increased by $ 38.4 million in fiscal 2012 compared to the prior year . merchandise margins , which exclude buying , occupancy and distribution costs , decreased for fiscal 2012 by 24 basis points versus fiscal 2011 , primarily reflecting a sales mix shift away from higher margin winter product categories in the first quarter of fiscal 2012 , combined with product cost inflation . store occupancy costs for fiscal 2012 increased by $ 2.6 million year over year due primarily to the increase in store count . story_separator_special_tag 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_12_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 . 33 the following table provides information about our revolving credit borrowings as of and for the periods indicated : replace_table_token_13_th future capital requirements . we had cash and cash equivalents on hand of $ 7.6 million at december 30 , 2012. we expect capital expenditures for fiscal 2013 , excluding non-cash acquisitions , to range from approximately $ 18.0 million to $ 22.0 million , primarily to fund the opening of new stores , store-related remodeling , distribution center equipment and computer hardware and software purchases . for fiscal 2013 , we expect to open approximately 15 to 20 new stores , including three relocations , and to close approximately three relocated stores . 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 and 2012. in the first quarter of fiscal 2013 , our board of directors declared a quarterly cash dividend of $ 0.10 per share of outstanding common stock , for an annual rate of $ 0.40 per share , which will be paid on march 22 , 2013 to stockholders of record as of march 8 , 2013. as of december 30 , 2012 , a total of $ 9.6 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 flows 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 flows 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 . off-balance sheet arrangements and contractual obligations . our material off-balance sheet arrangements are operating lease obligations and letters of credit . we excluded these items from the balance sheet in accordance with accounting principles generally accepted in the united states of america ( gaap ) . a summary of our operating lease obligations and letter of credit commitments by fiscal year is included in the table below . additional information regarding our operating leases is available in item 2 , properties and

