outlook for 2013 , we expect our overall net sales to increase by three to five percent compared to 2012 , including two percentage points of growth from the four acquisitions completed in 2012 and the one recently completed in 2013. the non-residential new construction market is expected to remain challenging in 2013 with the second half of the year growth forecasted to be stronger than the first half . within the non-residential construction market , retrofit and relight projects are expected to increase in the six to eight percent range . the utility market is expected to grow in the two to four percent range with modest increases anticipated for maintenance and repair spending on distribution and transmission networks . we also anticipate the investments in transmission related projects will continue at high levels but the growth rate will slow . the industrial market is expected to be flat to slightly higher with modest increases in factory utilization and energy markets partially offset by lower demand for high voltage test equipment . for the residential market , we anticipate continued broad based strengthening in single and multi-family housing starts . we plan to continue to work on productivity initiatives , including improved sourcing , product redesign and lean projects focused on both factory and back office efficiency . we anticipate cost increases from materials , including both commodities and purchased products , healthcare and other inflationary costs . we plan to continue to invest in people and resources to support our growth initiatives . overall we expect to expand operating margin by approximately 40 basis points in 2013 compared to 2012. additionally , we expect our 2013 tax rate to decrease slightly to approximately 31.5 % primarily due to the reinstatement of the research and development tax credit partially offset by a higher mix of domestic income . we expect to increase our earnings in 2013 through higher sales , careful management of pricing relative to material costs and by continuing our productivity programs . in 2013 , we anticipate free cash flow ( defined as cash flows from operations less capital expenditures ) to approximate net income . finally , with our strong financial position , we expect to continue to evaluate and pursue additional acquisitions to add to our portfolio . results of operations our operations are classified into two reportable segments : electrical and power . for a complete description of the company 's segments , see part i , item 1 of this annual report on form 10-k. within these segments , hubbell primarily serves customers in the non-residential and residential construction , industrial and utility markets . the company 's served markets , in order of magnitude of net sales for the company , are primarily non-residential construction , industrial , utility and to a lesser extent , residential construction . in 2012 , market conditions were mixed . overall , the non-residential market was flat . within the non-residential market , increases in private new construction spending were essentially offset by declines in public investment . renovation and relight projects continued to drive demand . the industrial market improved modestly due to stronger demand for harsh and hazardous products and higher factory utilization partially offset by lower demand for high voltage test equipment . the utility market improved due to stronger transmission project spending and a slight increase in maintenance , repair and overhaul ( “ mro ” ) demand . the residential market increased substantially in 2012 primarily due to improvements in both single and multi-family housing starts . hubbell incorporated – form 10-k 14 back to contents summary of consolidated results ( in millions , except per share data ) replace_table_token_5_th 2012 compared to 2011 net sales net sales for the year ended 2012 were $ 3.0 billion , an increase of 6 % over the year ended 2011 primarily due to higher organic volume . volume added four percentage points to net sales in 2012 compared to 2011 while acquisitions and price realization increased net sales by two and one percentage points , respectively . foreign currency translation decreased net sales by one percentage point . cost of goods sold as a percentage of net sales , cost of goods sold decreased to 66.8 % for 2012 compared to 67.8 % in 2011. the decrease was primarily due to price realization , productivity improvements and slightly lower material costs . lower costs for commodities such as copper , steel and aluminum were partially offset by higher costs for resins , chemicals , purchased finished goods and value added components . gross profit the gross profit margin for 2012 increased to 33.2 % compared to 32.2 % in 2011. the increase was primarily due to price realization , productivity improvements and slightly lower material costs . lower costs for commodities such as copper , steel and aluminum were partially offset by higher costs for resins , chemicals , purchased finished goods and value added components . selling & administrative expenses ( “ s & a ” ) s & a expenses increased 8 % compared to 2011 due to the impact of the businesses acquired and higher costs for wages , pensions and benefits . as a percentage of net sales , s & a expenses increased to 17.7 % in 2012 compared to 17.4 % in 2011. operating income operating income increased 11 % to $ 471.8 million primarily due to higher net sales and gross profit partially offset by higher selling and administrative costs . operating margin of 15.5 % in 2012 increased 70 basis points compared to 14.8 % in 2011 as a result of productivity improvements , price realization , higher volume and lower material costs partially offset by other inflationary and spending increases , including pension and benefit related expenses . story_separator_special_tag as of december 31 , 2012 , we used a discount rate of 4.2 % for our u.s. pension plans compared to a discount rate of 4.4 % used in 2011. a similar methodology was utilized for our canadian pension plan resulting in a discount rate of 4.1 % . for our uk plan the discount rate was derived using a yield curve approach . the curve is fitted to the yields on aa bonds in the barclays capital sterling aggregate corporate index and uses sample plan cash flow data as a proxy to plan specific liability cash flows . the derived discount rate is the single discount rate equivalent to discounting these liability cash flows at the term-dependent spot rates of aa corporate bonds . this methodology resulted in a december 31 , 2012 discount rate for the uk plan of 4.5 % . an increase of one percentage point in the discount rate would lower 2013 pretax pension expense by approximately $ 9.1 million . a discount rate decline of one percentage point would increase 2013 pretax pension expense by approximately $ 9.5 million . other post employment benefits ( “ opeb ” ) the company also has a number of health care and life insurance benefit plans covering eligible employees who reached retirement age while working for the company . these benefits have been discontinued for substantially all future retirees . these plans are not funded and , therefore , no assumed rate of return on assets is required . in 2012 , we changed the methodology used to derive the yield curve for our post employment benefit plan obligations to a method similar to the one used for our pension plans . this approach more accurately reflects the settlement value of these plan obligations . as of december 31 , 2012 , the company used a discount rate of 4.2 % to determine the projected benefit obligation compared to a discount rate of 4.4 % used in 2011. in accordance with the accounting guidance for retirement benefits , we recorded a credit , net of tax , of approximately $ 0.7 million in 2012 and a charge , net of tax , of approximately $ 1.8 million in 2011 related to opeb . these amounts were recorded to accumulated other comprehensive loss , within hubbell shareholders ' equity . off-balance sheet arrangements off-balance sheet arrangements are defined as any transaction , agreement or other contractual arrangement to which an entity that is not included in our consolidated results is a party , under which we , whether or not a party to the arrangement , have , or in the future may have : ( 1 ) an obligation under a direct or indirect guarantee or similar arrangement , ( 2 ) a retained or contingent interest in assets or ( 3 ) an obligation or liability , including a contingent obligation or liability , to the extent that it is not fully reflected in the financial statements . we do not have any off-balance sheet arrangements as defined above which have or are likely to have a material effect on our financial condition , results of operations or cash flows . hubbell incorporated – form 10-k 19 back to contents contractual obligations a summary of our contractual obligations and commitments at december 31 , 2012 is as follows ( in millions ) : payments due by period total 2013 2014-2015 2016-2017 2018 and thereafter debt obligations ( a ) $ 600.0 $ - $ - $ - $ 600.0 expected interest payments 204.1 28.7 57.5 57.5 60.4 operating lease obligations 49.8 12.3 16.3 7.4 13.8 retirement and other benefits ( b ) 177.8 7.2 14.4 14.8 141.4 purchase obligations 212.7 210.8 1.9 - - income tax payments 8.7 8.7 obligations under customer incentive programs 34.7 34.7 - - - total $ 1,287.8 $ 302.4 $ 90.1 $ 79.7 $ 815.6 ( a ) amounts exclude unamortized discount . ( b ) amounts above reflect projected funding related to the company 's non-qualified defined benefit plans . projected funding obligations of the company 's qualified defined benefit pension plans are excluded from the table as there are several significant factors , such as the future market value of plan assets and projected investment return rates , which could cause actual funding to differ materially from projected funding . our purchase obligations include amounts committed under legally enforceable contracts or purchase orders for goods and services with defined terms as to price , quantity , delivery and termination liability . these obligations primarily consist of inventory purchases made in the normal course of business to meet operational requirements , consulting arrangements and commitments for equipment purchases . as of december 31 , 2012 , we have $ 13.5 million of uncertain tax positions included in long-term liabilities in our consolidated balance sheet . we are unable to make a reasonable estimate regarding the timing of settlement of these uncertain tax positions and , as a result , they have been excluded from the table . see note 12 — income taxes in the notes to consolidated financial statements . critical accounting estimates note 1 — significant accounting policies of the notes to consolidated financial statements describes the significant accounting policies used in the preparation of our financial statements . use of estimates we are required to make assumptions and estimates and apply judgments in the preparation of our financial statements that affect the reported amounts of assets and liabilities , revenues and expenses and related disclosures . we base our assumptions , estimates and judgments on historical experience , current trends and other factors deemed relevant by management . we continually review these estimates and their underlying assumptions to ensure they are appropriate for the circumstances . changes in estimates and assumptions used by us could have a material impact on our financial results . we believe that the following estimates are among the most critical in

cash flow replace_table_token_10_th 2012 compared to 2011 cash provided by operating activities for the year ended 2012 increased compared to 2011 primarily due to higher net income partially offset by higher working capital usage . cash used for changes in working capital was $ 45.3 million in 2012 compared to $ 21.5 million of cash used in 2011. this higher level of working capital usage in 2012 was due to a deterioration in working capital days , primarily inventory and to a lesser extent accounts receivable , partially offset by an improvement in accounts payable . investing activities used cash of $ 116.1 million in 2012 compared to cash used of $ 86.5 million in 2011. the increase was primarily due to the increased spending on acquisitions in 2012 as compared to 2011 , partially offset by higher net proceeds from sales of available-for-sale securities . financing activities used cash of $ 161.7 million in 2012 compared to cash used of $ 198.3 million in 2011. the decrease in cash used is due to a lower level of common share repurchases partially offset by higher dividend payments in 2012 as compared to 2011. in 2012 , the company made five dividend payments as compared to four dividend payments made in 2011 . 2011 compared to 2010 cash provided by operating activities for the year ended 2011 increased compared to 2010. this increase was primarily a result of higher net income and lower working capital usage . cash used for changes in working capital was $ 21.5 million in 2011 compared to $ 38.9 million of cash used in 2010. this lower level of working capital usage in 2011 was due to an improvement in working capital days , primarily accounts payable and to a lesser extent inventory .


 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 replace_table_token_10_th 2012 compared to 2011 cash provided by operating activities for the year ended 2012 increased compared to 2011 primarily due to higher net income partially offset by higher working capital usage . cash used for changes in working capital was $ 45.3 million in 2012 compared to $ 21.5 million of cash used in 2011. this higher level of working capital usage in 2012 was due to a deterioration in working capital days , primarily inventory and to a lesser extent accounts receivable , partially offset by an improvement in accounts payable . investing activities used cash of $ 116.1 million in 2012 compared to cash used of $ 86.5 million in 2011. the increase was primarily due to the increased spending on acquisitions in 2012 as compared to 2011 , partially offset by higher net proceeds from sales of available-for-sale securities . financing activities used cash of $ 161.7 million in 2012 compared to cash used of $ 198.3 million in 2011. the decrease in cash used is due to a lower level of common share repurchases partially offset by higher dividend payments in 2012 as compared to 2011. in 2012 , the company made five dividend payments as compared to four dividend payments made in 2011 . 2011 compared to 2010 cash provided by operating activities for the year ended 2011 increased compared to 2010. this increase was primarily a result of higher net income and lower working capital usage . cash used for changes in working capital was $ 21.5 million in 2011 compared to $ 38.9 million of cash used in 2010. this lower level of working capital usage in 2011 was due to an improvement in working capital days , primarily accounts payable and to a lesser extent inventory .
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 Suspicious Activity Report : outlook for 2013 , we expect our overall net sales to increase by three to five percent compared to 2012 , including two percentage points of growth from the four acquisitions completed in 2012 and the one recently completed in 2013. the non-residential new construction market is expected to remain challenging in 2013 with the second half of the year growth forecasted to be stronger than the first half . within the non-residential construction market , retrofit and relight projects are expected to increase in the six to eight percent range . the utility market is expected to grow in the two to four percent range with modest increases anticipated for maintenance and repair spending on distribution and transmission networks . we also anticipate the investments in transmission related projects will continue at high levels but the growth rate will slow . the industrial market is expected to be flat to slightly higher with modest increases in factory utilization and energy markets partially offset by lower demand for high voltage test equipment . for the residential market , we anticipate continued broad based strengthening in single and multi-family housing starts . we plan to continue to work on productivity initiatives , including improved sourcing , product redesign and lean projects focused on both factory and back office efficiency . we anticipate cost increases from materials , including both commodities and purchased products , healthcare and other inflationary costs . we plan to continue to invest in people and resources to support our growth initiatives . overall we expect to expand operating margin by approximately 40 basis points in 2013 compared to 2012. additionally , we expect our 2013 tax rate to decrease slightly to approximately 31.5 % primarily due to the reinstatement of the research and development tax credit partially offset by a higher mix of domestic income . we expect to increase our earnings in 2013 through higher sales , careful management of pricing relative to material costs and by continuing our productivity programs . in 2013 , we anticipate free cash flow ( defined as cash flows from operations less capital expenditures ) to approximate net income . finally , with our strong financial position , we expect to continue to evaluate and pursue additional acquisitions to add to our portfolio . results of operations our operations are classified into two reportable segments : electrical and power . for a complete description of the company 's segments , see part i , item 1 of this annual report on form 10-k. within these segments , hubbell primarily serves customers in the non-residential and residential construction , industrial and utility markets . the company 's served markets , in order of magnitude of net sales for the company , are primarily non-residential construction , industrial , utility and to a lesser extent , residential construction . in 2012 , market conditions were mixed . overall , the non-residential market was flat . within the non-residential market , increases in private new construction spending were essentially offset by declines in public investment . renovation and relight projects continued to drive demand . the industrial market improved modestly due to stronger demand for harsh and hazardous products and higher factory utilization partially offset by lower demand for high voltage test equipment . the utility market improved due to stronger transmission project spending and a slight increase in maintenance , repair and overhaul ( “ mro ” ) demand . the residential market increased substantially in 2012 primarily due to improvements in both single and multi-family housing starts . hubbell incorporated – form 10-k 14 back to contents summary of consolidated results ( in millions , except per share data ) replace_table_token_5_th 2012 compared to 2011 net sales net sales for the year ended 2012 were $ 3.0 billion , an increase of 6 % over the year ended 2011 primarily due to higher organic volume . volume added four percentage points to net sales in 2012 compared to 2011 while acquisitions and price realization increased net sales by two and one percentage points , respectively . foreign currency translation decreased net sales by one percentage point . cost of goods sold as a percentage of net sales , cost of goods sold decreased to 66.8 % for 2012 compared to 67.8 % in 2011. the decrease was primarily due to price realization , productivity improvements and slightly lower material costs . lower costs for commodities such as copper , steel and aluminum were partially offset by higher costs for resins , chemicals , purchased finished goods and value added components . gross profit the gross profit margin for 2012 increased to 33.2 % compared to 32.2 % in 2011. the increase was primarily due to price realization , productivity improvements and slightly lower material costs . lower costs for commodities such as copper , steel and aluminum were partially offset by higher costs for resins , chemicals , purchased finished goods and value added components . selling & administrative expenses ( “ s & a ” ) s & a expenses increased 8 % compared to 2011 due to the impact of the businesses acquired and higher costs for wages , pensions and benefits . as a percentage of net sales , s & a expenses increased to 17.7 % in 2012 compared to 17.4 % in 2011. operating income operating income increased 11 % to $ 471.8 million primarily due to higher net sales and gross profit partially offset by higher selling and administrative costs . operating margin of 15.5 % in 2012 increased 70 basis points compared to 14.8 % in 2011 as a result of productivity improvements , price realization , higher volume and lower material costs partially offset by other inflationary and spending increases , including pension and benefit related expenses . story_separator_special_tag as of december 31 , 2012 , we used a discount rate of 4.2 % for our u.s. pension plans compared to a discount rate of 4.4 % used in 2011. a similar methodology was utilized for our canadian pension plan resulting in a discount rate of 4.1 % . for our uk plan the discount rate was derived using a yield curve approach . the curve is fitted to the yields on aa bonds in the barclays capital sterling aggregate corporate index and uses sample plan cash flow data as a proxy to plan specific liability cash flows . the derived discount rate is the single discount rate equivalent to discounting these liability cash flows at the term-dependent spot rates of aa corporate bonds . this methodology resulted in a december 31 , 2012 discount rate for the uk plan of 4.5 % . an increase of one percentage point in the discount rate would lower 2013 pretax pension expense by approximately $ 9.1 million . a discount rate decline of one percentage point would increase 2013 pretax pension expense by approximately $ 9.5 million . other post employment benefits ( “ opeb ” ) the company also has a number of health care and life insurance benefit plans covering eligible employees who reached retirement age while working for the company . these benefits have been discontinued for substantially all future retirees . these plans are not funded and , therefore , no assumed rate of return on assets is required . in 2012 , we changed the methodology used to derive the yield curve for our post employment benefit plan obligations to a method similar to the one used for our pension plans . this approach more accurately reflects the settlement value of these plan obligations . as of december 31 , 2012 , the company used a discount rate of 4.2 % to determine the projected benefit obligation compared to a discount rate of 4.4 % used in 2011. in accordance with the accounting guidance for retirement benefits , we recorded a credit , net of tax , of approximately $ 0.7 million in 2012 and a charge , net of tax , of approximately $ 1.8 million in 2011 related to opeb . these amounts were recorded to accumulated other comprehensive loss , within hubbell shareholders ' equity . off-balance sheet arrangements off-balance sheet arrangements are defined as any transaction , agreement or other contractual arrangement to which an entity that is not included in our consolidated results is a party , under which we , whether or not a party to the arrangement , have , or in the future may have : ( 1 ) an obligation under a direct or indirect guarantee or similar arrangement , ( 2 ) a retained or contingent interest in assets or ( 3 ) an obligation or liability , including a contingent obligation or liability , to the extent that it is not fully reflected in the financial statements . we do not have any off-balance sheet arrangements as defined above which have or are likely to have a material effect on our financial condition , results of operations or cash flows . hubbell incorporated – form 10-k 19 back to contents contractual obligations a summary of our contractual obligations and commitments at december 31 , 2012 is as follows ( in millions ) : payments due by period total 2013 2014-2015 2016-2017 2018 and thereafter debt obligations ( a ) $ 600.0 $ - $ - $ - $ 600.0 expected interest payments 204.1 28.7 57.5 57.5 60.4 operating lease obligations 49.8 12.3 16.3 7.4 13.8 retirement and other benefits ( b ) 177.8 7.2 14.4 14.8 141.4 purchase obligations 212.7 210.8 1.9 - - income tax payments 8.7 8.7 obligations under customer incentive programs 34.7 34.7 - - - total $ 1,287.8 $ 302.4 $ 90.1 $ 79.7 $ 815.6 ( a ) amounts exclude unamortized discount . ( b ) amounts above reflect projected funding related to the company 's non-qualified defined benefit plans . projected funding obligations of the company 's qualified defined benefit pension plans are excluded from the table as there are several significant factors , such as the future market value of plan assets and projected investment return rates , which could cause actual funding to differ materially from projected funding . our purchase obligations include amounts committed under legally enforceable contracts or purchase orders for goods and services with defined terms as to price , quantity , delivery and termination liability . these obligations primarily consist of inventory purchases made in the normal course of business to meet operational requirements , consulting arrangements and commitments for equipment purchases . as of december 31 , 2012 , we have $ 13.5 million of uncertain tax positions included in long-term liabilities in our consolidated balance sheet . we are unable to make a reasonable estimate regarding the timing of settlement of these uncertain tax positions and , as a result , they have been excluded from the table . see note 12 — income taxes in the notes to consolidated financial statements . critical accounting estimates note 1 — significant accounting policies of the notes to consolidated financial statements describes the significant accounting policies used in the preparation of our financial statements . use of estimates we are required to make assumptions and estimates and apply judgments in the preparation of our financial statements that affect the reported amounts of assets and liabilities , revenues and expenses and related disclosures . we base our assumptions , estimates and judgments on historical experience , current trends and other factors deemed relevant by management . we continually review these estimates and their underlying assumptions to ensure they are appropriate for the circumstances . changes in estimates and assumptions used by us could have a material impact on our financial results . we believe that the following estimates are among the most critical in

