more specifically , mattel plans to expand its innovation through ( i ) entrance into the active-play lifestyle category , ( ii ) the global roll-out of mattel 's latest franchise , ever after high , and ( iii ) new products , packaging , and 27 marketing campaigns for its existing key brands . mattel will focus on optimizing its marketing and promotional spend across its brands , customers , and regions to take advantage of its scale across its entire business . mattel also seeks to leverage the strength of its brands , countries , and customers , which include growing its girls portfolio , continuing to invest in emerging and developing markets , and improving execution in both its e-commerce and brick and mortar channels . results of operations 2013 compared to 2012 consolidated results net sales for 2013 were $ 6.48 billion , a 1 % increase , as compared to $ 6.42 billion in 2012 , with an unfavorable impact from changes in currency exchange rates of 1 percentage point . net income for 2013 was $ 903.9 million , or $ 2.58 per diluted share , as compared to net income of $ 776.5 million , or $ 2.22 per diluted share , in 2012. as compared to 2012 , net income for 2013 was positively impacted by lower other selling and administrative expenses due to a 2012 litigation charge of $ 137.8 million , arising out of the litigation between mattel and mga entertainment , inc. ( the litigation charge ) , and higher gross margins . in 2012 , the litigation charge reduced net income by $ 87.1 million , or $ 0.25 per share . the following table provides a summary of mattel 's consolidated results for 2013 and 2012 ( in millions , except percentage and basis point information ) : replace_table_token_6_th sales net sales for 2013 were $ 6.48 billion , a 1 % increase , as compared to $ 6.42 billion in 2012 , with an unfavorable impact from changes in currency exchange rates of 1 percentage point . 28 the following table provides a summary of mattel 's consolidated gross sales by brand for 2013 and 2012 : replace_table_token_7_th gross sales were $ 7.12 billion in 2013 , up $ 65.2 million or 1 % , as compared to $ 7.05 billion in 2012 , with no impact from changes in currency exchange rates . the increase in gross sales was due to higher sales of other girls products , partially offset by lower sales of core fisher-price products . of the 25 % increase in other girls gross sales , 20 % was due to higher sales of monster high products , and 5 % was due to the initial launch of the ever after high product line . the 9 % decrease in core fisher-price gross sales reflected product innovation not being strong enough to drive growth , along with lower effectiveness of in-store , commercial , and promotional activities . cost of sales cost of sales as a percentage of net sales was 46.4 % in 2013 , as compared to 46.9 % in 2012. cost of sales was flat at $ 3.01 billion in 2013 and 2012 , as compared to a 1 % increase in net sales . within cost of sales , product and other costs decreased by $ 16.8 million , or 1 % , from $ 2.44 billion in 2012 to $ 2.42 billion in 2013 ; royalty expenses increased $ 6.7 million , or 3 % , from $ 240.2 million in 2012 to $ 246.9 million in 2013 ; and freight and logistics expenses increased by $ 4.4 million , or 1 % , from $ 332.9 million in 2012 to $ 337.3 million in 2013. gross profit gross profit as a percentage of net sales increased to 53.6 % in 2013 from 53.1 % in 2012. the increase in gross profit as a percentage of net sales was primarily due to savings from operational excellence 3.0 programs , favorable product mix , and price increases offset by higher input costs , partially offset by unfavorable changes in foreign currency exchange rates . advertising and promotion expenses advertising and promotion expenses primarily consist of : ( i ) media costs , which primarily include the media , planning , and buying fees for television , print , and online advertisements , ( ii ) non-media costs , which primarily include commercial and website production , merchandising , and promotional costs , ( iii ) retail advertising costs , which primarily include consumer direct catalogs , newspaper inserts , fliers , and mailers and 29 ( iv ) generic advertising costs , which primarily include trade show costs . advertising and promotion expenses as a percentage of net sales increased to 11.6 % in 2013 from 11.2 % in 2012 , primarily as a result of lower than expected fourth quarter sales and higher non-media and generic advertising spending . other selling and administrative expenses other selling and administrative expenses were $ 1.56 billion in 2013 , or 24.1 % of net sales , as compared to $ 1.67 billion in 2012 , or 26.0 % of net sales . the decrease in other selling and administrative expenses was primarily due to the litigation charge of $ 137.8 million in 2012 and lower incentive compensation expense of approximately $ 43 million , partially offset by higher other employee-related expenses and investments in strategic initiatives of approximately $ 78 million and an asset impairment charge of approximately $ 14 million . non-operating items interest expense decreased by $ 10.3 million to $ 78.5 million in 2013 , as compared to $ 88.8 million in 2012 , primarily due to lower average interest rates related to long-term borrowings . story_separator_special_tag cost savings programs during 2011 , mattel initiated operational excellence 2.0 , which targeted cumulative cost savings of approximately $ 175 million by the end of 2012. mattel exceeded its operational excellence 2.0 goal by realizing approximately $ 187 million of cumulative gross cost savings throughout the program . the major initiatives within the operational excellence 2.0 program included : a reorganization which resulted in the north america division , additional procurement initiatives designed to fully leverage mattel 's global scale , sku efficiency , and packaging optimization . during 2011 , mattel realized gross cost savings before severance charges and investments of approximately $ 94 million ( or approximately $ 71 million in net cost savings ) . the gross cost savings included approximately $ 53 million of structural cost savings and approximately $ 41 million of legal cost savings . of the gross cost savings realized in 2011 , approximately $ 67 million was reflected within other selling and administrative expenses , approximately $ 15 million within gross profit , and approximately $ 12 million within advertising and promotion expenses . during 2012 , mattel realized gross cost savings before severance charges and investments of approximately $ 93 million ( or approximately $ 77 million in net cost savings ) . the gross cost savings included approximately $ 53 million of structural cost savings and approximately $ 40 million of legal cost savings . of the gross cost savings realized in 2012 , approximately $ 55 million was reflected within other selling and administrative expenses , approximately $ 27 million within gross profit , and approximately $ 11 million within advertising and promotion expenses . 37 beginning in 2013 , mattel initiated the next phase of its cost savings program , operational excellence 3.0 , which targets cumulative gross cost savings of approximately $ 175 million by the end of 2014. the cost savings program is designed to generate sustainable cost savings through the following primary initiatives : manufacturing efficiencies through automation , lean manufacturing principles , design for manufacturing , enterprise quality , and packaging optimization , indirect procurement , and operational efficiencies related to enhanced international clustering and realignment of north america operations . during 2013 , mattel realized gross cost savings before severance charges and investments of approximately $ 60 million ( or approximately $ 39 million in net cost savings ) . of the gross cost savings realized in 2013 , approximately $ 51 million was reflected within gross profit , approximately $ 8 million within other selling and administrative expenses , and approximately $ 1 million within advertising and promotion expenses . income taxes mattel 's effective tax rate on income before income taxes in both 2013 and 2012 was 17.8 % . the 2013 income tax provision included net tax benefits of $ 32.2 million , primarily related to reassessments of prior years ' tax liabilities based on the status of audits and tax filings in various jurisdictions around the world , settlements , and enacted tax law changes . mattel 's effective tax rate on income before income taxes in 2012 was 17.8 % , as compared to 20.8 % in 2011. the 2012 income tax provision included net tax benefits of $ 16.0 million , primarily related to reassessments of prior years ' tax liabilities based on the status of audits and tax filings in various jurisdictions around the world , settlements , and enacted tax law changes . mattel 's effective tax rate on income before income taxes in 2011 was 20.8 % , and the 2011 income tax provision included net tax benefits of $ 6.8 million , primarily related to reassessments of prior years ' tax liabilities based on the status of audits and tax filings in various jurisdictions around the world , settlements , and enacted tax law changes . story_separator_special_tag to stockholders through dividends and share repurchases . 39 over the long term , assuming cash flows from operating activities remain strong , mattel plans to use its free cash flows to invest in strategic acquisitions and to return funds to stockholders through cash dividends and share repurchases . mattel 's share repurchase program has no expiration date and repurchases will take place from time to time , depending on market conditions . the ability to successfully implement the capital deployment plan is directly dependent on mattel 's ability to generate strong cash flows from operating activities . there is no assurance that mattel will continue to generate strong cash flows from operating activities or achieve its targeted goals for investing activities . operating activities cash flows from operating activities were $ 698.4 million during 2013 , as compared to $ 1.28 billion during 2012 and $ 664.7 million during 2011. the decrease in cash flows from operating activities in 2013 from 2012 was primarily due to higher working capital usage , including payment of the litigation charge of approximately $ 138 million , partially offset by higher net income . the increase in cash flows from operating activities in 2012 from 2011 was primarily due to reductions in working capital usage . investing activities cash flows used for investing activities were $ 242.1 million during 2013 , as compared to $ 900.2 million during 2012 and $ 174.5 million during 2011. the decrease in cash flows used for investing activities in 2013 from 2012 was primarily due to the acquisition of hit entertainment in 2012 , partially offset by higher purchases of tools , dies , and molds and other property , plant , and equipment . the increase in cash flows used for investing activities in 2012 from 2011 was primarily due to the acquisition of hit entertainment in 2012 and higher purchases of other property , plant , and equipment . financing activities cash flows used for financing activities were $ 740.0 million during 2013 , as compared to $ 410.9 million during 2012 and $ 397.3 million during 2011. the increase

liquidity and capital resources mattel 's primary sources of liquidity are its cash and equivalents balances , access to short-term borrowing facilities , including its $ 1.60 billion domestic unsecured committed revolving credit facility ( credit facility ) , and issuances of long-term debt securities . cash flows from operating activities could be negatively impacted by decreased demand for mattel 's products , which could result from factors such as adverse economic conditions and changes in public and consumer preferences , or by increased costs associated with manufacturing and distribution of products or shortages in raw materials or component parts . additionally , mattel 's ability to issue long-term debt and obtain seasonal financing could be adversely affected by factors such as global economic crises and tight credit environments , an inability to meet its debt covenant requirements , which include maintaining consolidated debt-to-earnings before interest , taxes , depreciation , and amortization ( ebitda ) and interest coverage ratios , or a deterioration of mattel 's credit ratings . mattel 's ability to conduct its operations could be negatively impacted should these or other adverse conditions affect its primary sources of liquidity . of mattel 's $ 1.04 billion in cash and equivalents as of december 31 , 2013 , approximately $ 895 million is held by foreign subsidiaries . mattel may need to accrue and pay additional income taxes if some or all of the undistributed earnings of foreign subsidiaries were repatriated . mattel does not intend nor foresee a need to repatriate undistributed earnings of foreign subsidiaries . mattel has several liquidity options to fund its domestic operations and obligations , including investing and financing activities such as dividends , share repurchases , and debt service .


 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 mattel 's primary sources of liquidity are its cash and equivalents balances , access to short-term borrowing facilities , including its $ 1.60 billion domestic unsecured committed revolving credit facility ( credit facility ) , and issuances of long-term debt securities . cash flows from operating activities could be negatively impacted by decreased demand for mattel 's products , which could result from factors such as adverse economic conditions and changes in public and consumer preferences , or by increased costs associated with manufacturing and distribution of products or shortages in raw materials or component parts . additionally , mattel 's ability to issue long-term debt and obtain seasonal financing could be adversely affected by factors such as global economic crises and tight credit environments , an inability to meet its debt covenant requirements , which include maintaining consolidated debt-to-earnings before interest , taxes , depreciation , and amortization ( ebitda ) and interest coverage ratios , or a deterioration of mattel 's credit ratings . mattel 's ability to conduct its operations could be negatively impacted should these or other adverse conditions affect its primary sources of liquidity . of mattel 's $ 1.04 billion in cash and equivalents as of december 31 , 2013 , approximately $ 895 million is held by foreign subsidiaries . mattel may need to accrue and pay additional income taxes if some or all of the undistributed earnings of foreign subsidiaries were repatriated . mattel does not intend nor foresee a need to repatriate undistributed earnings of foreign subsidiaries . mattel has several liquidity options to fund its domestic operations and obligations , including investing and financing activities such as dividends , share repurchases , and debt service .
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 Suspicious Activity Report : more specifically , mattel plans to expand its innovation through ( i ) entrance into the active-play lifestyle category , ( ii ) the global roll-out of mattel 's latest franchise , ever after high , and ( iii ) new products , packaging , and 27 marketing campaigns for its existing key brands . mattel will focus on optimizing its marketing and promotional spend across its brands , customers , and regions to take advantage of its scale across its entire business . mattel also seeks to leverage the strength of its brands , countries , and customers , which include growing its girls portfolio , continuing to invest in emerging and developing markets , and improving execution in both its e-commerce and brick and mortar channels . results of operations 2013 compared to 2012 consolidated results net sales for 2013 were $ 6.48 billion , a 1 % increase , as compared to $ 6.42 billion in 2012 , with an unfavorable impact from changes in currency exchange rates of 1 percentage point . net income for 2013 was $ 903.9 million , or $ 2.58 per diluted share , as compared to net income of $ 776.5 million , or $ 2.22 per diluted share , in 2012. as compared to 2012 , net income for 2013 was positively impacted by lower other selling and administrative expenses due to a 2012 litigation charge of $ 137.8 million , arising out of the litigation between mattel and mga entertainment , inc. ( the litigation charge ) , and higher gross margins . in 2012 , the litigation charge reduced net income by $ 87.1 million , or $ 0.25 per share . the following table provides a summary of mattel 's consolidated results for 2013 and 2012 ( in millions , except percentage and basis point information ) : replace_table_token_6_th sales net sales for 2013 were $ 6.48 billion , a 1 % increase , as compared to $ 6.42 billion in 2012 , with an unfavorable impact from changes in currency exchange rates of 1 percentage point . 28 the following table provides a summary of mattel 's consolidated gross sales by brand for 2013 and 2012 : replace_table_token_7_th gross sales were $ 7.12 billion in 2013 , up $ 65.2 million or 1 % , as compared to $ 7.05 billion in 2012 , with no impact from changes in currency exchange rates . the increase in gross sales was due to higher sales of other girls products , partially offset by lower sales of core fisher-price products . of the 25 % increase in other girls gross sales , 20 % was due to higher sales of monster high products , and 5 % was due to the initial launch of the ever after high product line . the 9 % decrease in core fisher-price gross sales reflected product innovation not being strong enough to drive growth , along with lower effectiveness of in-store , commercial , and promotional activities . cost of sales cost of sales as a percentage of net sales was 46.4 % in 2013 , as compared to 46.9 % in 2012. cost of sales was flat at $ 3.01 billion in 2013 and 2012 , as compared to a 1 % increase in net sales . within cost of sales , product and other costs decreased by $ 16.8 million , or 1 % , from $ 2.44 billion in 2012 to $ 2.42 billion in 2013 ; royalty expenses increased $ 6.7 million , or 3 % , from $ 240.2 million in 2012 to $ 246.9 million in 2013 ; and freight and logistics expenses increased by $ 4.4 million , or 1 % , from $ 332.9 million in 2012 to $ 337.3 million in 2013. gross profit gross profit as a percentage of net sales increased to 53.6 % in 2013 from 53.1 % in 2012. the increase in gross profit as a percentage of net sales was primarily due to savings from operational excellence 3.0 programs , favorable product mix , and price increases offset by higher input costs , partially offset by unfavorable changes in foreign currency exchange rates . advertising and promotion expenses advertising and promotion expenses primarily consist of : ( i ) media costs , which primarily include the media , planning , and buying fees for television , print , and online advertisements , ( ii ) non-media costs , which primarily include commercial and website production , merchandising , and promotional costs , ( iii ) retail advertising costs , which primarily include consumer direct catalogs , newspaper inserts , fliers , and mailers and 29 ( iv ) generic advertising costs , which primarily include trade show costs . advertising and promotion expenses as a percentage of net sales increased to 11.6 % in 2013 from 11.2 % in 2012 , primarily as a result of lower than expected fourth quarter sales and higher non-media and generic advertising spending . other selling and administrative expenses other selling and administrative expenses were $ 1.56 billion in 2013 , or 24.1 % of net sales , as compared to $ 1.67 billion in 2012 , or 26.0 % of net sales . the decrease in other selling and administrative expenses was primarily due to the litigation charge of $ 137.8 million in 2012 and lower incentive compensation expense of approximately $ 43 million , partially offset by higher other employee-related expenses and investments in strategic initiatives of approximately $ 78 million and an asset impairment charge of approximately $ 14 million . non-operating items interest expense decreased by $ 10.3 million to $ 78.5 million in 2013 , as compared to $ 88.8 million in 2012 , primarily due to lower average interest rates related to long-term borrowings . story_separator_special_tag cost savings programs during 2011 , mattel initiated operational excellence 2.0 , which targeted cumulative cost savings of approximately $ 175 million by the end of 2012. mattel exceeded its operational excellence 2.0 goal by realizing approximately $ 187 million of cumulative gross cost savings throughout the program . the major initiatives within the operational excellence 2.0 program included : a reorganization which resulted in the north america division , additional procurement initiatives designed to fully leverage mattel 's global scale , sku efficiency , and packaging optimization . during 2011 , mattel realized gross cost savings before severance charges and investments of approximately $ 94 million ( or approximately $ 71 million in net cost savings ) . the gross cost savings included approximately $ 53 million of structural cost savings and approximately $ 41 million of legal cost savings . of the gross cost savings realized in 2011 , approximately $ 67 million was reflected within other selling and administrative expenses , approximately $ 15 million within gross profit , and approximately $ 12 million within advertising and promotion expenses . during 2012 , mattel realized gross cost savings before severance charges and investments of approximately $ 93 million ( or approximately $ 77 million in net cost savings ) . the gross cost savings included approximately $ 53 million of structural cost savings and approximately $ 40 million of legal cost savings . of the gross cost savings realized in 2012 , approximately $ 55 million was reflected within other selling and administrative expenses , approximately $ 27 million within gross profit , and approximately $ 11 million within advertising and promotion expenses . 37 beginning in 2013 , mattel initiated the next phase of its cost savings program , operational excellence 3.0 , which targets cumulative gross cost savings of approximately $ 175 million by the end of 2014. the cost savings program is designed to generate sustainable cost savings through the following primary initiatives : manufacturing efficiencies through automation , lean manufacturing principles , design for manufacturing , enterprise quality , and packaging optimization , indirect procurement , and operational efficiencies related to enhanced international clustering and realignment of north america operations . during 2013 , mattel realized gross cost savings before severance charges and investments of approximately $ 60 million ( or approximately $ 39 million in net cost savings ) . of the gross cost savings realized in 2013 , approximately $ 51 million was reflected within gross profit , approximately $ 8 million within other selling and administrative expenses , and approximately $ 1 million within advertising and promotion expenses . income taxes mattel 's effective tax rate on income before income taxes in both 2013 and 2012 was 17.8 % . the 2013 income tax provision included net tax benefits of $ 32.2 million , primarily related to reassessments of prior years ' tax liabilities based on the status of audits and tax filings in various jurisdictions around the world , settlements , and enacted tax law changes . mattel 's effective tax rate on income before income taxes in 2012 was 17.8 % , as compared to 20.8 % in 2011. the 2012 income tax provision included net tax benefits of $ 16.0 million , primarily related to reassessments of prior years ' tax liabilities based on the status of audits and tax filings in various jurisdictions around the world , settlements , and enacted tax law changes . mattel 's effective tax rate on income before income taxes in 2011 was 20.8 % , and the 2011 income tax provision included net tax benefits of $ 6.8 million , primarily related to reassessments of prior years ' tax liabilities based on the status of audits and tax filings in various jurisdictions around the world , settlements , and enacted tax law changes . story_separator_special_tag to stockholders through dividends and share repurchases . 39 over the long term , assuming cash flows from operating activities remain strong , mattel plans to use its free cash flows to invest in strategic acquisitions and to return funds to stockholders through cash dividends and share repurchases . mattel 's share repurchase program has no expiration date and repurchases will take place from time to time , depending on market conditions . the ability to successfully implement the capital deployment plan is directly dependent on mattel 's ability to generate strong cash flows from operating activities . there is no assurance that mattel will continue to generate strong cash flows from operating activities or achieve its targeted goals for investing activities . operating activities cash flows from operating activities were $ 698.4 million during 2013 , as compared to $ 1.28 billion during 2012 and $ 664.7 million during 2011. the decrease in cash flows from operating activities in 2013 from 2012 was primarily due to higher working capital usage , including payment of the litigation charge of approximately $ 138 million , partially offset by higher net income . the increase in cash flows from operating activities in 2012 from 2011 was primarily due to reductions in working capital usage . investing activities cash flows used for investing activities were $ 242.1 million during 2013 , as compared to $ 900.2 million during 2012 and $ 174.5 million during 2011. the decrease in cash flows used for investing activities in 2013 from 2012 was primarily due to the acquisition of hit entertainment in 2012 , partially offset by higher purchases of tools , dies , and molds and other property , plant , and equipment . the increase in cash flows used for investing activities in 2012 from 2011 was primarily due to the acquisition of hit entertainment in 2012 and higher purchases of other property , plant , and equipment . financing activities cash flows used for financing activities were $ 740.0 million during 2013 , as compared to $ 410.9 million during 2012 and $ 397.3 million during 2011. the increase

