on an on-going basis , we evaluate our estimates and judgments , including those related to revenue recognition , allowances for sales returns and doubtful accounts , warranties , inventory valuation , our review for impairment of long-lived assets , intangible assets and goodwill , income taxes and stock-based compensation expense . actual results may differ from these judgments and estimates , and they may be adjusted as more information becomes available . any adjustment may be significant and may have a material impact on our consolidated financial position or results of operations . 25 an accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made , if different estimates reasonably may have been used , or if changes in the estimate that are reasonably likely to occur may materially impact the financial statements . management believes the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements . in addition to the accounting policies mentioned below , see `` item 8. financial statements and supplementary data — notes to consolidated financial statements — note 2 `` for other significant accounting policies . revenue recognition we recognize revenue on the sale of products when title of the goods has transferred , there is persuasive evidence of an arrangement ( such as a purchase order from the customer ) , the sales price is fixed or determinable and collectability is reasonably assured . a provision is recorded for estimated sales returns and allowances and is deducted from gross sales to arrive at net sales in the period the related revenue is recorded . these estimates are based on historical sales returns and allowances , analysis of credit memo data and other known factors . actual returns and claims in any future period are inherently uncertain and thus may differ from our estimates . if actual or expected future returns and claims are significantly greater or lower than the reserves that we have established , we will record a reduction or increase to net revenues in the period in which we make such a determination . we accrue for discounts and rebates based on historical experience and our expectations regarding future sales to our customers . these accruals are recorded as a reduction to sales in the same period as the related revenues . changes in such accruals may be required if future rebates and incentives differ from our estimates . revenue for the sale of tooling is recognized when the related tooling has been provided , customer acceptance documentation has been obtained , the sales price is fixed or determinable and collectability is reasonably assured . we generate service revenue , which is paid monthly , as a result of providing consumer support programs to some of our customers through our call centers . these service revenues are recognized when services are performed , persuasive evidence of an arrangement exists ( such as when a signed agreement is received from the customer ) , the sales price is fixed or determinable , and collectability is reasonably assured . we license our intellectual property including our patented technologies , trademarks , and database of infrared codes . when our license fees are paid on a per unit basis we record license revenue when our customers ship a product incorporating our intellectual property , persuasive evidence of an arrangement exists , the sales price is fixed or determinable , and collectability is reasonably assured . when a fixed upfront license fee is received in exchange for the delivery of a particular database of infrared codes that represents the culmination of the earnings process , we record revenues when delivery has occurred , persuasive evidence of an arrangement exists , the sales price is fixed or determinable and collectability is reasonably assured . revenue for term license fees is recognized on a straight-line basis over the effective term of the license when we can not reliably predict in which periods , within the term of the license , the licensee will benefit from the use of our patented inventions . allowance for doubtful accounts we maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make payments for products sold or services rendered . the allowance for doubtful accounts is estimated based on a variety of factors , including credit reviews , historical experience , length of time receivables are past due , current economic trends and changes in customer payment behavior . we also record specific provisions for individual accounts when we become aware of a customer 's inability to meet its financial obligations to us , such as in the case of bankruptcy filings or deterioration in the customer 's operating results or financial position . our historical reserves have been sufficient to cover losses from uncollectible accounts . however , because we can not predict future changes in the financial stability of our customers , actual future losses from uncollectible accounts may differ from our estimates and may have a material effect on our consolidated financial position , results of operations and cash flows . warranty we warrant our products against defects in materials and workmanship arising during normal use . we service warranty claims directly through our customer service department or contracted third-party warranty repair facilities . our warranty periods range up to three years . we estimate and recognize product warranty costs , which are included in cost of sales , as we sell the related products . warranty costs are forecasted based on the best available information , primarily historical claims experience and the expected cost per claim . the costs we have incurred to service warranty claims have been minimal . however , actual claim costs may differ from the amounts estimated . story_separator_special_tag gross profit in 2012 was $ 133.4 million compared to $ 130.1 million in 2011. gross profit as a percent of sales increased to 28.8 % in 2012 from 27.8 % in 2011. this improvement was primarily due to an increase in units produced internally versus units produced by third-party manufacturers . gross profit in 2012 was also positively affected by us entering into a licensing agreement with a customer in the gaming industry , as well as the signing of a long-term , confidential settlement and license agreement with logitech . compared to 2011 , this favorability was partially offset by pricing pressure from customers . research and development expenses . r & d expenses increased 15.4 % to $ 14.2 million in 2012 from $ 12.3 million in 2011. the increase was due to additional labor dedicated to general r & d activities in an effort to continue to develop new products and technologies . selling , general and administrative expenses . sg & a expenses increased 2.0 % to $ 93.1 million in 2012 from $ 91.2 million in 2011. this increase was driven primarily by increased incentive compensation costs as well as increased legal expenses as a result of litigation costs related to protecting our intellectual property . partially offsetting these expense increases was a favorable currency effect due primarily to the euro weakening compared to the u.s. dollar . 30 interest income ( expense ) , net . net interest expense was $ 0.2 million in 2012 compared to $ 0.3 million in 2011. the decrease in interest expense was due to lower credit needs during 2012 , primarily as a result of positive operating cash flows which allowed for the paydown of debt associated with the 2010 acquisition of enson assets limited . other income ( expense ) , net . net other expense was $ 1.4 million in 2012 compared to net other expense of $ 1.1 million in 2011. this increase was driven by a higher amount of foreign currency losses in 2012 , driven by fluctuations in the foreign currency rates relating to the argentinian peso , brazilian real , chinese yuan renminbi and euro . income tax expense . income tax expense was $ 8.1 million in 2012 compared to $ 5.3 million in 2011 and our effective tax rate was 32.8 % in 2012 compared to 20.9 % in 2011. the increase in our effective tax rate was due primarily to a $ 3.9 million ( $ 2.6 million net of federal benefit ) valuation allowance that we recorded in 2012 against our deferred tax assets related to california research and experimentation credits . at december 31 , 2012 , we believed it was more likely than not that these deferred tax assets would not be realized . in addition , as the result of a tax law change in china , approximately $ 0.6 million of deferred tax assets were no longer valid resulting in their write-down . liquidity and capital resources story_separator_special_tag style= `` font-family : inherit ; font-size:10pt ; color : # 000000 ; text-decoration : none ; `` > december 31 , 2013 , we had 933,456 shares available for repurchase under the board 's authorizations . contractual obligations the following table summarizes our contractual obligations and the effect these obligations are expected to have on our liquidity and cash flow in future periods . replace_table_token_11_th ( 1 ) purchase obligations consist of contractual payments to purchase tooling assets . liquidity historically , we have utilized cash provided from operations as our primary source of liquidity , as internally generated cash flows have been sufficient to support our business operations , capital expenditures and discretionary share repurchases . our working capital needs have typically been greatest during the third and fourth quarters when accounts receivable and inventories increase in connection with the fourth quarter holiday selling season . we believe our current cash balances and anticipated cash flow to be generated from operations will be sufficient to cover cash outlays expected during 2014 ; however , because our cash is located in various jurisdictions throughout the world , we may at times need to borrow from our revolving line of credit until we are able to transfer cash among our various entities . our liquidity is subject to various risks including the market risks identified in the section entitled `` qualitative and quantitative disclosures about market risk `` in item 7a . replace_table_token_12_th our cash balances are held in numerous locations throughout the world . the majority of our cash is held outside of the united states and may be repatriated to the united states but , under current law , would be subject to united states federal income taxes , less applicable foreign tax credits . repatriation of some foreign balances is restricted by local laws . we have not provided for the united states federal tax liability on these amounts for financial statement purposes as this cash is considered indefinitely reinvested outside of the united states . our intent is to meet our domestic liquidity needs through ongoing cash flows , external borrowings , or both . we utilize a variety of tax planning strategies in an effort to ensure that our worldwide cash is available in the locations in which it is needed . on december 31 , 2013 , we had $ 30.1 million , $ 34.6 million , $ 7.2 million and $ 4.3 million of cash and cash equivalents in the united states , asia , europe , and south america , respectively . we attempt to mitigate our exposure to liquidity , credit and other relevant risks by placing our cash and cash equivalents with financial institutions we believe are high quality . 32 on october 2 , 2012 , we entered into an amended and restated credit agreement ( `` amended credit agreement `` ) with u.s. bank national association ( `` u.s. bank `` ) .

sources and uses of cash replace_table_token_9_th replace_table_token_10_th net cash provided by operating activities decreased $ 12.9 million in 2013 when compared to 2012 , driven largely by increased working capital needs associated with inventory as we increased inventory levels in 2013 to support a higher level of expected sales . in addition , although sales increased by 14.3 % in 2013 compared to 2012 , accounts receivable increased by only 4.8 % as days sales outstanding improved from 69 days for the quarter ended december 31 , 2012 to 63 days for the quarter ended december 31 , 2013. net cash provided by operating activities increased $ 28.7 million in 2012 when compared to 2011 , driven largely by a $ 31.0 million improvement in cash flows associated with inventories . in 2011 , there were two items that resulted in a permanent increase to our inventory levels . first , as a result of labor issues we previously experienced resulting from the chinese new year , as well as the fact that both of our factories located in china shut down for a week during the chinese new year holiday period , we made a conscious effort to increase our inventory levels during the latter half of the year in order to prevent supply issues .


 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.
     ```sources and uses of cash replace_table_token_9_th replace_table_token_10_th net cash provided by operating activities decreased $ 12.9 million in 2013 when compared to 2012 , driven largely by increased working capital needs associated with inventory as we increased inventory levels in 2013 to support a higher level of expected sales . in addition , although sales increased by 14.3 % in 2013 compared to 2012 , accounts receivable increased by only 4.8 % as days sales outstanding improved from 69 days for the quarter ended december 31 , 2012 to 63 days for the quarter ended december 31 , 2013. net cash provided by operating activities increased $ 28.7 million in 2012 when compared to 2011 , driven largely by a $ 31.0 million improvement in cash flows associated with inventories . in 2011 , there were two items that resulted in a permanent increase to our inventory levels . first , as a result of labor issues we previously experienced resulting from the chinese new year , as well as the fact that both of our factories located in china shut down for a week during the chinese new year holiday period , we made a conscious effort to increase our inventory levels during the latter half of the year in order to prevent supply issues .
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 Suspicious Activity Report : on an on-going basis , we evaluate our estimates and judgments , including those related to revenue recognition , allowances for sales returns and doubtful accounts , warranties , inventory valuation , our review for impairment of long-lived assets , intangible assets and goodwill , income taxes and stock-based compensation expense . actual results may differ from these judgments and estimates , and they may be adjusted as more information becomes available . any adjustment may be significant and may have a material impact on our consolidated financial position or results of operations . 25 an accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made , if different estimates reasonably may have been used , or if changes in the estimate that are reasonably likely to occur may materially impact the financial statements . management believes the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements . in addition to the accounting policies mentioned below , see `` item 8. financial statements and supplementary data — notes to consolidated financial statements — note 2 `` for other significant accounting policies . revenue recognition we recognize revenue on the sale of products when title of the goods has transferred , there is persuasive evidence of an arrangement ( such as a purchase order from the customer ) , the sales price is fixed or determinable and collectability is reasonably assured . a provision is recorded for estimated sales returns and allowances and is deducted from gross sales to arrive at net sales in the period the related revenue is recorded . these estimates are based on historical sales returns and allowances , analysis of credit memo data and other known factors . actual returns and claims in any future period are inherently uncertain and thus may differ from our estimates . if actual or expected future returns and claims are significantly greater or lower than the reserves that we have established , we will record a reduction or increase to net revenues in the period in which we make such a determination . we accrue for discounts and rebates based on historical experience and our expectations regarding future sales to our customers . these accruals are recorded as a reduction to sales in the same period as the related revenues . changes in such accruals may be required if future rebates and incentives differ from our estimates . revenue for the sale of tooling is recognized when the related tooling has been provided , customer acceptance documentation has been obtained , the sales price is fixed or determinable and collectability is reasonably assured . we generate service revenue , which is paid monthly , as a result of providing consumer support programs to some of our customers through our call centers . these service revenues are recognized when services are performed , persuasive evidence of an arrangement exists ( such as when a signed agreement is received from the customer ) , the sales price is fixed or determinable , and collectability is reasonably assured . we license our intellectual property including our patented technologies , trademarks , and database of infrared codes . when our license fees are paid on a per unit basis we record license revenue when our customers ship a product incorporating our intellectual property , persuasive evidence of an arrangement exists , the sales price is fixed or determinable , and collectability is reasonably assured . when a fixed upfront license fee is received in exchange for the delivery of a particular database of infrared codes that represents the culmination of the earnings process , we record revenues when delivery has occurred , persuasive evidence of an arrangement exists , the sales price is fixed or determinable and collectability is reasonably assured . revenue for term license fees is recognized on a straight-line basis over the effective term of the license when we can not reliably predict in which periods , within the term of the license , the licensee will benefit from the use of our patented inventions . allowance for doubtful accounts we maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make payments for products sold or services rendered . the allowance for doubtful accounts is estimated based on a variety of factors , including credit reviews , historical experience , length of time receivables are past due , current economic trends and changes in customer payment behavior . we also record specific provisions for individual accounts when we become aware of a customer 's inability to meet its financial obligations to us , such as in the case of bankruptcy filings or deterioration in the customer 's operating results or financial position . our historical reserves have been sufficient to cover losses from uncollectible accounts . however , because we can not predict future changes in the financial stability of our customers , actual future losses from uncollectible accounts may differ from our estimates and may have a material effect on our consolidated financial position , results of operations and cash flows . warranty we warrant our products against defects in materials and workmanship arising during normal use . we service warranty claims directly through our customer service department or contracted third-party warranty repair facilities . our warranty periods range up to three years . we estimate and recognize product warranty costs , which are included in cost of sales , as we sell the related products . warranty costs are forecasted based on the best available information , primarily historical claims experience and the expected cost per claim . the costs we have incurred to service warranty claims have been minimal . however , actual claim costs may differ from the amounts estimated . story_separator_special_tag gross profit in 2012 was $ 133.4 million compared to $ 130.1 million in 2011. gross profit as a percent of sales increased to 28.8 % in 2012 from 27.8 % in 2011. this improvement was primarily due to an increase in units produced internally versus units produced by third-party manufacturers . gross profit in 2012 was also positively affected by us entering into a licensing agreement with a customer in the gaming industry , as well as the signing of a long-term , confidential settlement and license agreement with logitech . compared to 2011 , this favorability was partially offset by pricing pressure from customers . research and development expenses . r & d expenses increased 15.4 % to $ 14.2 million in 2012 from $ 12.3 million in 2011. the increase was due to additional labor dedicated to general r & d activities in an effort to continue to develop new products and technologies . selling , general and administrative expenses . sg & a expenses increased 2.0 % to $ 93.1 million in 2012 from $ 91.2 million in 2011. this increase was driven primarily by increased incentive compensation costs as well as increased legal expenses as a result of litigation costs related to protecting our intellectual property . partially offsetting these expense increases was a favorable currency effect due primarily to the euro weakening compared to the u.s. dollar . 30 interest income ( expense ) , net . net interest expense was $ 0.2 million in 2012 compared to $ 0.3 million in 2011. the decrease in interest expense was due to lower credit needs during 2012 , primarily as a result of positive operating cash flows which allowed for the paydown of debt associated with the 2010 acquisition of enson assets limited . other income ( expense ) , net . net other expense was $ 1.4 million in 2012 compared to net other expense of $ 1.1 million in 2011. this increase was driven by a higher amount of foreign currency losses in 2012 , driven by fluctuations in the foreign currency rates relating to the argentinian peso , brazilian real , chinese yuan renminbi and euro . income tax expense . income tax expense was $ 8.1 million in 2012 compared to $ 5.3 million in 2011 and our effective tax rate was 32.8 % in 2012 compared to 20.9 % in 2011. the increase in our effective tax rate was due primarily to a $ 3.9 million ( $ 2.6 million net of federal benefit ) valuation allowance that we recorded in 2012 against our deferred tax assets related to california research and experimentation credits . at december 31 , 2012 , we believed it was more likely than not that these deferred tax assets would not be realized . in addition , as the result of a tax law change in china , approximately $ 0.6 million of deferred tax assets were no longer valid resulting in their write-down . liquidity and capital resources story_separator_special_tag style= `` font-family : inherit ; font-size:10pt ; color : # 000000 ; text-decoration : none ; `` > december 31 , 2013 , we had 933,456 shares available for repurchase under the board 's authorizations . contractual obligations the following table summarizes our contractual obligations and the effect these obligations are expected to have on our liquidity and cash flow in future periods . replace_table_token_11_th ( 1 ) purchase obligations consist of contractual payments to purchase tooling assets . liquidity historically , we have utilized cash provided from operations as our primary source of liquidity , as internally generated cash flows have been sufficient to support our business operations , capital expenditures and discretionary share repurchases . our working capital needs have typically been greatest during the third and fourth quarters when accounts receivable and inventories increase in connection with the fourth quarter holiday selling season . we believe our current cash balances and anticipated cash flow to be generated from operations will be sufficient to cover cash outlays expected during 2014 ; however , because our cash is located in various jurisdictions throughout the world , we may at times need to borrow from our revolving line of credit until we are able to transfer cash among our various entities . our liquidity is subject to various risks including the market risks identified in the section entitled `` qualitative and quantitative disclosures about market risk `` in item 7a . replace_table_token_12_th our cash balances are held in numerous locations throughout the world . the majority of our cash is held outside of the united states and may be repatriated to the united states but , under current law , would be subject to united states federal income taxes , less applicable foreign tax credits . repatriation of some foreign balances is restricted by local laws . we have not provided for the united states federal tax liability on these amounts for financial statement purposes as this cash is considered indefinitely reinvested outside of the united states . our intent is to meet our domestic liquidity needs through ongoing cash flows , external borrowings , or both . we utilize a variety of tax planning strategies in an effort to ensure that our worldwide cash is available in the locations in which it is needed . on december 31 , 2013 , we had $ 30.1 million , $ 34.6 million , $ 7.2 million and $ 4.3 million of cash and cash equivalents in the united states , asia , europe , and south america , respectively . we attempt to mitigate our exposure to liquidity , credit and other relevant risks by placing our cash and cash equivalents with financial institutions we believe are high quality . 32 on october 2 , 2012 , we entered into an amended and restated credit agreement ( `` amended credit agreement `` ) with u.s. bank national association ( `` u.s. bank `` ) .

