however , sales associated with products for elective procedures appear to be influenced by the somewhat lower level of such procedures performed in the late summer . certain of the breg ® bracing products experience greater demand in the fall and winter corresponding with high school and college football schedules and winter sports . in addition , we do not believe our operations will be significantly affected by inflation . however , in the ordinary course of business , we are exposed to the impact of changes in interest rates and foreign currency fluctuations . our objective is to limit the impact of such movements on earnings and cash flows . in order to achieve this objective , we seek to balance non-dollar denominated income and expenditures . during the year , we have used derivative instruments to hedge foreign currency fluctuation exposures . see item 7aquantitative and qualitative disclosures about market risk. 38 critical accounting policies and estimates our discussion of operating results is based upon the consolidated financial statements and accompanying notes to the consolidated financial statements prepared in conformity with us gaap . the preparation of these statements necessarily requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period . these estimates and assumptions form the basis for the carrying values of assets and liabilities . on an ongoing basis , we evaluate these estimates , including those related to contractual allowances , doubtful accounts , inventories , potential intangible assets and goodwill impairment , income taxes , and share-based compensation . we base our estimates on historical experience and various other assumptions . actual results may differ from these estimates . we have reviewed our critical accounting policies with the audit committee of the board of directors . revenue recognition revenue is generally recognized as income in the period in which title passes and the products are delivered . revenues exclude any value added or other local taxes , intercompany sales and trade discounts . shipping and handling costs are included in cost of sales . royalty revenues are recognized when the royalty is earned . for stimulation and certain bracing products that are prescribed by a physician , we recognize revenue when the product is placed on or implanted in and accepted by the patient . for domestic spinal implant and hct/p products , revenues are recognized when the product has been utilized and a confirming purchase order has been received from the hospital . for sales to commercial customers , including hospitals and distributors , revenues are recognized at the time of shipment unless contractual agreements specify that title passes on delivery . revenues for inventory delivered on consignment are recognized as the product is used by the consignee . in 2008 , we entered into an agreement with the musculoskeletal transplant foundation ( mtf ) to develop and commercialize trinity ® evolution  , a stem cell-based regenerative biologic matrix . with the development process completed in 2009 , we and mtf operate under the terms of a separate commercialization agreement . under the terms of this 10-year agreement , mtf sources the tissue , processes it to create the regenerative matrix , packages and delivers it to the customer in accordance with orders received from us . we have exclusive global marketing rights for trinity ® evolution  and receive a marketing fee from mtf based on total sales . this marketing fee is recorded on a net basis within net sales . on january 9 , 2012 we entered into an agreement with mtf to both co-develop and commercialize a new technology for use in bone grafting applications and to expand mtf 's trinity evolution processing capacity . mtf and orthofix also extended the initial term of their existing agreement for an additional five years . we derive a significant amount of revenues in the u.s. from third-party payors , including commercial insurance carriers , health maintenance organizations , preferred provider organizations and governmental payors such as medicare . amounts paid by these third-party payors are generally based on fixed or allowable reimbursement rates . these revenues are recorded at the expected or pre-authorized reimbursement rates , net of any contractual allowances or adjustments . certain billings are subject to review by the third-party payors and may be subject to adjustment . allowance for doubtful accounts and contractual allowances the process for estimating the ultimate collection of accounts receivable involves significant assumptions and judgments . historical collection and payor reimbursement experience is an integral part of the estimation process related to reserves for doubtful accounts and the establishment of contractual allowances . accounts receivable are analyzed on a quarterly basis to assess the adequacy of both reserves for doubtful accounts and contractual allowances . revisions in allowances for doubtful accounts estimates are recorded as an adjustment to bad debt expense within sales and marketing expenses . revisions to contractual allowances are recorded as an adjustment to net sales . in the judgment of management , adequate allowances have been provided for doubtful accounts and contractual allowances . our estimates are periodically tested against actual collection experience . inventory allowances we write down our inventory for inventory excess and obsolescence by an amount equal to the difference between the cost of the inventory and the estimated net realizable value based upon assumptions about future demand and market conditions . inventory is analyzed to assess the adequacy of inventory excess and obsolescence provisions . reserves for excess and obsolescence provisions are recorded as adjustments to cost of goods sold . if conditions or assumptions used in determining the market value change , additional inventory adjustments in the future may be necessary . story_separator_special_tag this global business unit uses both direct and distributor sales representatives to sell orthopedics products to hospitals , doctors and other healthcare providers , globally . sports medicine sports medicine designs , manufactures and distributes a portfolio of non-invasive products that allow physicians and clinicians to treat a variety of sports medicine related conditions in order to minimize pain and restore mobility to their patients . sports medicine distributes products through a network of domestic and international distributors , sales representatives and affiliates to hospitals , doctors and other healthcare providers , primarily in the u.s. corporate corporate activities are comprised of the operating expenses of orthofix international n.v. and its u.s. holding company subsidiary , orthofix holdings , inc. , along with activities not necessarily identifiable with the three gbus . 43 segment and market sector revenue the following tables display net sales by business segment and net sales by market sector . we maintain our books and records and account for net sales , costs of sales and expenses by business segment . we provide net sales by market sector for information purposes only . business segments by gbu : replace_table_token_7_th our market sectors are spine that includes implants , biologics , and also stimulation products , orthopedics , and sports medicine . market sectors : replace_table_token_8_th ( 1 ) divested products sales for 2011 include $ 5.8 million related to the vascular business which was divested in march 2010. divested products sales for 2010 and 2009 include $ 8.3 million and $ 18.7 million , respectively , related to the vascular business which was divested in march 2010. this revenue represents amounts recognized in 2010 and 2009 prior to the march 2010 sale date as well as revenue generated in 2010 and 2011 from the transition services supply agreement that commenced upon the sale of the business . in addition , divested products sales for 2010 and 2009 also include $ 5 million and $ 11.8 million , respectively , related to the anesthesia product line . the company exited its anesthesia product line after the expiration of its distribution agreement in the united kingdom during the second quarter of 2010 . 2011 compared to 2010 net sales increased 3 % to $ 579 million in 2011 compared to $ 564.4 million in 2010. the impact of foreign currency increased sales by $ 6.5 million in 2011 when compared to 2010 . 44 sales net sales in our spine market sector decreased to $ 304.2 million in 2011 compared to $ 306.4 million for 2010 , a decrease of 1 % . the decrease in spine 's net sales was primarily the result of a 7 % decrease in sales of our spine stimulation products in 2011 when compared to the 2010 , due to lower industry-wide surgical procedures and organizational changes to our sales force . this sales decrease was partially offset by a 23 % increase in sales of our biologics products and an increase in our implant products of 3 % when compared to 2010. the improvement in hardware products included improved sales in our thorocolumbar devices in 2011 compared to 2010 due to increased sales of our firebird platform products including phoenix mis and deformity correction . net sales in our orthopedics market sector increased to $ 165.9 million in 2011 compared to $ 149.2 million for 2010 , an increase of 11 % . orthopedics 's constant currency net sales increased by 7 % , or $ 10.5 million during 2011 as compared to 2010. this increase was led by fixation products and the increased use of trinity ® evolution in orthopedic applications but was offset by the reduction in stimulation products used in long-bone applications . sales of our fixation products and biologics products increased 21 % and 23 % , respectively , during 2011 when compared to 2010. net sales in our sports medicine market sector increased to $ 103 million in 2011 compared to $ 95.5 million for the same period in the prior year , an increase of 8 % . we had increased billing capacity and revenues of $ 4.7 million resulting from the acquisition of a billing capability in february 2011. net sales of our divested products decreased in 2011 from $ 13.3 million to $ 5.8 million . this revenue represents amounts recognized in 2010 and in 2011 from the vascular business which we divested in march 2010 and the transition services supply agreement that commenced upon the sale of the business . in addition , sales for the year ended december 31 , 2010 also include $ 5 million related to the anesthesia product line . we exited the anesthesia product line after the expiration of our distribution agreement in the united kingdom during the second quarter of 2010. gross profit our gross profit increased 2 % to $ 439.8 million for 2011 compared to $ 432.7 million for 2010. gross profit as a percent of net sales in 2011 was 76.0 % compared to 76.7 % in 2010. this decrease was primarily a result of increased pricing pressures in the u.s. spinal implants and sports medicine markets , an unfavorable product and geographical sales mix and a negative impact of the change in foreign currency rates . sales and marketing expense sales and marketing expense , which includes commissions , certain royalties and the bad debt provision , generally increases and decreases in relation to sales . sales and marketing expense increased $ 2.7 million , or 1 % , to $ 233.6 million in 2011 compared to $ 230.9 million in 2010. as a percent of sales , sales and marketing expense was 40.3 % and 40.9 % for 2011 and 2010 , respectively . in 2011 the reduction in sales and marketing expense as percent of sales was the result of various consolidation and operational efficiency initiatives we have executed on over the past several quarters . general and administrative expense

liquidity and capital resources cash and cash equivalents at december 31 , 2011 were $ 80.3 million , of which $ 47.1 million is subject to certain restrictions under the senior secured credit agreement described below . this compares to cash and cash equivalents of $ 36.5 million at december 31 , 2010 , of which $ 22.9 million was subject to certain restrictions under the senior secured credit agreement described below . net cash provided by operating activities was $ 64.8 million in 2011 compared to $ 42.5 million in 2010 , an increase of $ 22.3 million . net cash provided by operating activities is comprised of net income , non-cash items ( including depreciation and amortization , provision for doubtful accounts , inventory obsolescence , share-based compensation , deferred taxes , and the net gain on sale of vascular operations ) and changes in working capital . net income decreased $ 45.3 million to a net loss of $ 1.1 million in 2011 compared to net income of $ 44.2 million in 2010. non-cash items for 2011 increased $ 19 million to $ 49.7 million compared to $ 30.7 million in 2010 primarily as a result of the net gain on the sale of vascular operations of $ 12 million and an increase in the tax benefit on non-qualified stock options of $ 2.2 million . working capital accounts provided $ 16.1 million of cash in 2011 as compared to consuming $ 32.4 million in 2010. working capital impacts in the 2011 period can be attributed to charges related to u.s. government resolutions of $ 88.5 million partially offset by the change in escrow receivable of $ 30.5 million . overall performance indicators for our two primary working capital accounts , accounts receivable and inventory reflect days sales in receivables of 89 days at december 31 , 2011 compared to 86 days at december 31 , 2010 and inventory turns of 1.5 times at december 31 , 2011 and 2010. net cash used in investing activities was $ 31 million in 2011 compared to $ 2.1 million in 2010. during the first quarter of 2010 , we sold our vascular operations with cash proceeds , net of litigation settlement costs , for $ 24.2


 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 cash and cash equivalents at december 31 , 2011 were $ 80.3 million , of which $ 47.1 million is subject to certain restrictions under the senior secured credit agreement described below . this compares to cash and cash equivalents of $ 36.5 million at december 31 , 2010 , of which $ 22.9 million was subject to certain restrictions under the senior secured credit agreement described below . net cash provided by operating activities was $ 64.8 million in 2011 compared to $ 42.5 million in 2010 , an increase of $ 22.3 million . net cash provided by operating activities is comprised of net income , non-cash items ( including depreciation and amortization , provision for doubtful accounts , inventory obsolescence , share-based compensation , deferred taxes , and the net gain on sale of vascular operations ) and changes in working capital . net income decreased $ 45.3 million to a net loss of $ 1.1 million in 2011 compared to net income of $ 44.2 million in 2010. non-cash items for 2011 increased $ 19 million to $ 49.7 million compared to $ 30.7 million in 2010 primarily as a result of the net gain on the sale of vascular operations of $ 12 million and an increase in the tax benefit on non-qualified stock options of $ 2.2 million . working capital accounts provided $ 16.1 million of cash in 2011 as compared to consuming $ 32.4 million in 2010. working capital impacts in the 2011 period can be attributed to charges related to u.s. government resolutions of $ 88.5 million partially offset by the change in escrow receivable of $ 30.5 million . overall performance indicators for our two primary working capital accounts , accounts receivable and inventory reflect days sales in receivables of 89 days at december 31 , 2011 compared to 86 days at december 31 , 2010 and inventory turns of 1.5 times at december 31 , 2011 and 2010. net cash used in investing activities was $ 31 million in 2011 compared to $ 2.1 million in 2010. during the first quarter of 2010 , we sold our vascular operations with cash proceeds , net of litigation settlement costs , for $ 24.2
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 Suspicious Activity Report : however , sales associated with products for elective procedures appear to be influenced by the somewhat lower level of such procedures performed in the late summer . certain of the breg ® bracing products experience greater demand in the fall and winter corresponding with high school and college football schedules and winter sports . in addition , we do not believe our operations will be significantly affected by inflation . however , in the ordinary course of business , we are exposed to the impact of changes in interest rates and foreign currency fluctuations . our objective is to limit the impact of such movements on earnings and cash flows . in order to achieve this objective , we seek to balance non-dollar denominated income and expenditures . during the year , we have used derivative instruments to hedge foreign currency fluctuation exposures . see item 7aquantitative and qualitative disclosures about market risk. 38 critical accounting policies and estimates our discussion of operating results is based upon the consolidated financial statements and accompanying notes to the consolidated financial statements prepared in conformity with us gaap . the preparation of these statements necessarily requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period . these estimates and assumptions form the basis for the carrying values of assets and liabilities . on an ongoing basis , we evaluate these estimates , including those related to contractual allowances , doubtful accounts , inventories , potential intangible assets and goodwill impairment , income taxes , and share-based compensation . we base our estimates on historical experience and various other assumptions . actual results may differ from these estimates . we have reviewed our critical accounting policies with the audit committee of the board of directors . revenue recognition revenue is generally recognized as income in the period in which title passes and the products are delivered . revenues exclude any value added or other local taxes , intercompany sales and trade discounts . shipping and handling costs are included in cost of sales . royalty revenues are recognized when the royalty is earned . for stimulation and certain bracing products that are prescribed by a physician , we recognize revenue when the product is placed on or implanted in and accepted by the patient . for domestic spinal implant and hct/p products , revenues are recognized when the product has been utilized and a confirming purchase order has been received from the hospital . for sales to commercial customers , including hospitals and distributors , revenues are recognized at the time of shipment unless contractual agreements specify that title passes on delivery . revenues for inventory delivered on consignment are recognized as the product is used by the consignee . in 2008 , we entered into an agreement with the musculoskeletal transplant foundation ( mtf ) to develop and commercialize trinity ® evolution  , a stem cell-based regenerative biologic matrix . with the development process completed in 2009 , we and mtf operate under the terms of a separate commercialization agreement . under the terms of this 10-year agreement , mtf sources the tissue , processes it to create the regenerative matrix , packages and delivers it to the customer in accordance with orders received from us . we have exclusive global marketing rights for trinity ® evolution  and receive a marketing fee from mtf based on total sales . this marketing fee is recorded on a net basis within net sales . on january 9 , 2012 we entered into an agreement with mtf to both co-develop and commercialize a new technology for use in bone grafting applications and to expand mtf 's trinity evolution processing capacity . mtf and orthofix also extended the initial term of their existing agreement for an additional five years . we derive a significant amount of revenues in the u.s. from third-party payors , including commercial insurance carriers , health maintenance organizations , preferred provider organizations and governmental payors such as medicare . amounts paid by these third-party payors are generally based on fixed or allowable reimbursement rates . these revenues are recorded at the expected or pre-authorized reimbursement rates , net of any contractual allowances or adjustments . certain billings are subject to review by the third-party payors and may be subject to adjustment . allowance for doubtful accounts and contractual allowances the process for estimating the ultimate collection of accounts receivable involves significant assumptions and judgments . historical collection and payor reimbursement experience is an integral part of the estimation process related to reserves for doubtful accounts and the establishment of contractual allowances . accounts receivable are analyzed on a quarterly basis to assess the adequacy of both reserves for doubtful accounts and contractual allowances . revisions in allowances for doubtful accounts estimates are recorded as an adjustment to bad debt expense within sales and marketing expenses . revisions to contractual allowances are recorded as an adjustment to net sales . in the judgment of management , adequate allowances have been provided for doubtful accounts and contractual allowances . our estimates are periodically tested against actual collection experience . inventory allowances we write down our inventory for inventory excess and obsolescence by an amount equal to the difference between the cost of the inventory and the estimated net realizable value based upon assumptions about future demand and market conditions . inventory is analyzed to assess the adequacy of inventory excess and obsolescence provisions . reserves for excess and obsolescence provisions are recorded as adjustments to cost of goods sold . if conditions or assumptions used in determining the market value change , additional inventory adjustments in the future may be necessary . story_separator_special_tag this global business unit uses both direct and distributor sales representatives to sell orthopedics products to hospitals , doctors and other healthcare providers , globally . sports medicine sports medicine designs , manufactures and distributes a portfolio of non-invasive products that allow physicians and clinicians to treat a variety of sports medicine related conditions in order to minimize pain and restore mobility to their patients . sports medicine distributes products through a network of domestic and international distributors , sales representatives and affiliates to hospitals , doctors and other healthcare providers , primarily in the u.s. corporate corporate activities are comprised of the operating expenses of orthofix international n.v. and its u.s. holding company subsidiary , orthofix holdings , inc. , along with activities not necessarily identifiable with the three gbus . 43 segment and market sector revenue the following tables display net sales by business segment and net sales by market sector . we maintain our books and records and account for net sales , costs of sales and expenses by business segment . we provide net sales by market sector for information purposes only . business segments by gbu : replace_table_token_7_th our market sectors are spine that includes implants , biologics , and also stimulation products , orthopedics , and sports medicine . market sectors : replace_table_token_8_th ( 1 ) divested products sales for 2011 include $ 5.8 million related to the vascular business which was divested in march 2010. divested products sales for 2010 and 2009 include $ 8.3 million and $ 18.7 million , respectively , related to the vascular business which was divested in march 2010. this revenue represents amounts recognized in 2010 and 2009 prior to the march 2010 sale date as well as revenue generated in 2010 and 2011 from the transition services supply agreement that commenced upon the sale of the business . in addition , divested products sales for 2010 and 2009 also include $ 5 million and $ 11.8 million , respectively , related to the anesthesia product line . the company exited its anesthesia product line after the expiration of its distribution agreement in the united kingdom during the second quarter of 2010 . 2011 compared to 2010 net sales increased 3 % to $ 579 million in 2011 compared to $ 564.4 million in 2010. the impact of foreign currency increased sales by $ 6.5 million in 2011 when compared to 2010 . 44 sales net sales in our spine market sector decreased to $ 304.2 million in 2011 compared to $ 306.4 million for 2010 , a decrease of 1 % . the decrease in spine 's net sales was primarily the result of a 7 % decrease in sales of our spine stimulation products in 2011 when compared to the 2010 , due to lower industry-wide surgical procedures and organizational changes to our sales force . this sales decrease was partially offset by a 23 % increase in sales of our biologics products and an increase in our implant products of 3 % when compared to 2010. the improvement in hardware products included improved sales in our thorocolumbar devices in 2011 compared to 2010 due to increased sales of our firebird platform products including phoenix mis and deformity correction . net sales in our orthopedics market sector increased to $ 165.9 million in 2011 compared to $ 149.2 million for 2010 , an increase of 11 % . orthopedics 's constant currency net sales increased by 7 % , or $ 10.5 million during 2011 as compared to 2010. this increase was led by fixation products and the increased use of trinity ® evolution in orthopedic applications but was offset by the reduction in stimulation products used in long-bone applications . sales of our fixation products and biologics products increased 21 % and 23 % , respectively , during 2011 when compared to 2010. net sales in our sports medicine market sector increased to $ 103 million in 2011 compared to $ 95.5 million for the same period in the prior year , an increase of 8 % . we had increased billing capacity and revenues of $ 4.7 million resulting from the acquisition of a billing capability in february 2011. net sales of our divested products decreased in 2011 from $ 13.3 million to $ 5.8 million . this revenue represents amounts recognized in 2010 and in 2011 from the vascular business which we divested in march 2010 and the transition services supply agreement that commenced upon the sale of the business . in addition , sales for the year ended december 31 , 2010 also include $ 5 million related to the anesthesia product line . we exited the anesthesia product line after the expiration of our distribution agreement in the united kingdom during the second quarter of 2010. gross profit our gross profit increased 2 % to $ 439.8 million for 2011 compared to $ 432.7 million for 2010. gross profit as a percent of net sales in 2011 was 76.0 % compared to 76.7 % in 2010. this decrease was primarily a result of increased pricing pressures in the u.s. spinal implants and sports medicine markets , an unfavorable product and geographical sales mix and a negative impact of the change in foreign currency rates . sales and marketing expense sales and marketing expense , which includes commissions , certain royalties and the bad debt provision , generally increases and decreases in relation to sales . sales and marketing expense increased $ 2.7 million , or 1 % , to $ 233.6 million in 2011 compared to $ 230.9 million in 2010. as a percent of sales , sales and marketing expense was 40.3 % and 40.9 % for 2011 and 2010 , respectively . in 2011 the reduction in sales and marketing expense as percent of sales was the result of various consolidation and operational efficiency initiatives we have executed on over the past several quarters . general and administrative expense

