our residential market is expected to be relatively flat as high levels of unemployment and uncertainty surrounding foreclosures are likely to continue to slow the recovery . we plan to continue to work on productivity initiatives , including improved sourcing , product redesign and lean projects focused on factory efficiency . we anticipate cost increases from commodities , pension , healthcare and other inflationary costs . the pricing environment is expected to remain competitive in 2011 and achieving 17 parity with commodity costs is expected to be a challenge . we plan to continue to invest in people and resources to support our growth initiatives . overall we expect to expand operating margin by approximately 50 basis points in 2011 compared to 2010. additionally , we expect our 2011 tax rate to increase by approximately 50 basis points due to a higher mix of domestic income . in 2011 , we anticipate generating free cash flow approximately equal to net income . finally , with our strong financial position , we expect to continue to pursue additional acquisitions . results of operations our operations are classified into two 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 . these markets , in order of magnitude of net sales to the company , are non-residential construction ( approximately 40 % ) , industrial ( approximately 25 % ) , utility ( approximately 25 % ) and residential construction ( approximately 10 % ) . in 2010 , market conditions were mixed . non-residential construction declined due to lower levels of activity and a lack of available financing for projects . the industrial market improved slightly due to higher factory utilization . the utility market improved due to higher electricity consumption which increased mro demand within the distribution segment . the residential market also improved slightly due to the tax credits stimulus at the beginning of 2010. summary of consolidated results ( in millions , except per share data ) replace_table_token_6_th 2010 compared to 2009 net sales net sales for the year ended 2010 were $ 2.5 billion , an increase of 8 % over the year ended 2009. this increase was due to the burndy acquisition , favorable currency translation and higher organic volume . the burndy acquisition added approximately six percentage points to net sales in 2010 compared to 2009 while currency translation and volume increased net sales by one percentage point each in 2010 compared with 2009. gross profit the gross profit margin for 2010 increased to 32.6 % compared to 30.8 % in 2009. the increase was primarily due to productivity improvements , including improved factory utilization , and the favorable impact of the burndy acquisition partially offset by unfavorable price realization and higher commodity costs . 18 selling & administrative expenses ( s & a ) s & a expenses increased 7 % compared to 2009 primarily due to the full year impact of the burndy acquisition partially offset by savings from streamlining actions . as a percentage of net sales , s & a expenses were 18.1 % in 2010 compared to 18.3 % in 2009 as cost increases were in line with volume growth . operating income operating income increased 25 % primarily due to higher net sales and gross profit partially offset by higher selling and administrative costs . operating margin of 14.5 % in 2010 increased 200 basis points compared to 12.5 % in 2009 as a result of productivity improvements and improved product mix , including burndy , partially offset by unfavorable price realization , higher commodity costs and other inflationary increases . total other expense , net in 2010 , total other expense , net increased by $ 14.3 million primarily due to the costs associated with the early extinguishment of debt and higher net interest expense partially offset by lower net foreign currency transaction losses . costs associated with the debt extinguishment were $ 14.7 million in 2010. interest expense increased by $ 0.2 million compared to 2009 due to higher average long term debt in 2010 compared to 2009 due to the timing of the completion of debt refinancing in november 2010. income taxes the effective tax rate in 2010 was 31.7 % compared to 30.7 % in 2009. the increased tax rate for 2010 reflects the absence of an out-of-period adjustment related to certain deferred tax accounts of $ 4.9 million in 2009 partially offset by the favorable impact of foreign and state income taxes in 2010 when compared to 2009. additional information related to our effective tax rate is included in note 12  income taxes in the notes to the consolidated financial statements . net income attributable to hubbell and earnings per diluted share net income attributable to hubbell and earnings per diluted share in 2010 increased 21 % and 14 % , respectively , compared to 2009 as a result of higher net sales and operating income partially offset by costs for the early extinguishment of debt and a higher effective tax rate . the impact of the early extinguishment of debt charge was $ 0.15 on earnings per diluted share . in addition , earnings per diluted share reflects an increase in average shares outstanding in 2010 compared to 2009 partially due to the full year impact of shares issued in the fourth quarter of 2009. segment results electrical segment replace_table_token_7_th net sales in the electrical segment increased 10 % in 2010 compared with 2009. the burndy acquisition and currency translation added nine and one percentage points , respectively , to net sales in 2010 compared to 2009. within the segment , electrical systems products net sales increased 21 % in 2010 compared to 2009 due to the burndy acquisition , higher volume and favorable story_separator_special_tag assumptions the following assumptions were used to determine projected pension and other benefit obligations at the measurement date and the net periodic benefit costs for the year : replace_table_token_13_th at the end of each year , we estimate the expected long-term rate of return on pension plan assets based on the strategic asset allocation for our plans . in making this determination , we utilize expected rates of return for each asset class based upon current market conditions and expected risk premiums for each asset class . a one percentage point change in the expected long-term rate of return on pension fund assets would have an impact of approximately 26 $ 6.2 million on 2011 pretax pension expense . the expected long-term rate of return is applied to the fair market value of pension fund assets to produce the expected return on fund assets that is included in pension expense . the difference between this expected return and the actual return on plan assets was recognized at december 31 , 2010 for balance sheet purposes , but continues to be deferred for expense purposes . the net deferral of past asset gains ( losses ) ultimately affects future pension expense through the amortization of gains ( losses ) with an offsetting adjustment to hubbell shareholders ' equity through accumulated other comprehensive loss . at the end of each year , we determine the discount rate to be used to calculate the present value of pension plan liabilities . the discount rate is an estimate of the current interest rate at which the pension plans ' liabilities could effectively be settled . in estimating this rate , we look to rates of return on high-quality , fixed-income investments with maturities that closely match the expected funding period of our pension liability . the discount rate of 5.40 % which we used to determine the projected benefit obligation for our u.s. pension plans at december 31 , 2010 was determined using the citigroup pension discount curve applied to our expected annual future pension benefit payments . a similar methodology was utilized for our international pension plans resulting in a discount rate of 5.30 % and 5.00 % , respectively , for our uk and canadian plans . an increase of one percentage point in the discount rate would lower 2011 pretax pension expense by approximately $ 6.4 million . a discount rate decline of one percentage point would increase pretax pension expense by approximately $ 8.2 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 . the discount rate of 5.40 % used to determine the projected benefit obligation at december 31 , 2010 was based upon the citigroup pension discount curve as applied to our projected annual benefit payments . in 2010 and 2009 in accordance with the accounting guidance for retirement benefits we recorded ( charges ) credits to accumulated other comprehensive loss within hubbell shareholders ' equity , net of tax , of $ 2.8 million and $ 0.5 million , respectively , related to opeb . 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 . 27 contractual obligations a summary of our contractual obligations and commitments at december 31 , 2010 is as follows ( in millions ) : replace_table_token_14_th 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 , 2010 , we have $ 25.2 million of uncertain tax positions included in long-term liabilities in our consolidated balance sheet . we are unable to make a reasonable estimate regarding 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 our most critical in fully understanding and

debt to capital net debt , defined as total debt less cash and investments , is a non-gaap measure that may not be comparable to definitions used by other companies . we consider net debt to be a useful measure of our financial leverage for evaluating the company 's ability to meet its funding needs . replace_table_token_12_th the company 's short-term debt consisted of a 4.0 million brazilian real line of credit with hsbc bank which is used to fund its brazilian operations . at december 31 , 2010 , 3.0 million brazilian real are outstanding ( equivalent to $ 1.8 million ) . this line of credit expires in march 2011 and is not subject to any annual commitment fees . the company did not have any short-term debt outstanding at december 31 , 2009. at december 31 , 2010 and 2009 , the company had $ 595.9 million and $ 497.2 million , respectively , of senior notes reflected as long-term debt in the consolidated balance sheet . in november 2010 , the company completed a public debt offering for $ 300 million of long-term , senior , unsecured notes maturing in november 2022 ( the 2022 notes ) and bearing interest at a fixed rate of 3.625 % . the company received $ 294.8 in proceeds from the offering , net of discounts and debt issuance costs . the discount and issuance costs were deferred and are being amortized to interest expense over the term of the 2022 notes . interest on the 2022 notes will be paid semi-annually in may and november , commencing in may 2011. in connection with the issuance of the 2022 notes , the company entered into a forward starting swap to hedge its exposure to fluctuations in treasury rates , which resulted in a loss of $ 1.6 million during the fourth quarter of 2010 when the company closed out this position . this amount has been recorded , net of tax , in accumulated other comprehensive loss and will be amortized to interest expense over the life of the 2022 notes .


 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.
     ```debt to capital net debt , defined as total debt less cash and investments , is a non-gaap measure that may not be comparable to definitions used by other companies . we consider net debt to be a useful measure of our financial leverage for evaluating the company 's ability to meet its funding needs . replace_table_token_12_th the company 's short-term debt consisted of a 4.0 million brazilian real line of credit with hsbc bank which is used to fund its brazilian operations . at december 31 , 2010 , 3.0 million brazilian real are outstanding ( equivalent to $ 1.8 million ) . this line of credit expires in march 2011 and is not subject to any annual commitment fees . the company did not have any short-term debt outstanding at december 31 , 2009. at december 31 , 2010 and 2009 , the company had $ 595.9 million and $ 497.2 million , respectively , of senior notes reflected as long-term debt in the consolidated balance sheet . in november 2010 , the company completed a public debt offering for $ 300 million of long-term , senior , unsecured notes maturing in november 2022 ( the 2022 notes ) and bearing interest at a fixed rate of 3.625 % . the company received $ 294.8 in proceeds from the offering , net of discounts and debt issuance costs . the discount and issuance costs were deferred and are being amortized to interest expense over the term of the 2022 notes . interest on the 2022 notes will be paid semi-annually in may and november , commencing in may 2011. in connection with the issuance of the 2022 notes , the company entered into a forward starting swap to hedge its exposure to fluctuations in treasury rates , which resulted in a loss of $ 1.6 million during the fourth quarter of 2010 when the company closed out this position . this amount has been recorded , net of tax , in accumulated other comprehensive loss and will be amortized to interest expense over the life of the 2022 notes .
```    
 Suspicious Activity Report : our residential market is expected to be relatively flat as high levels of unemployment and uncertainty surrounding foreclosures are likely to continue to slow the recovery . we plan to continue to work on productivity initiatives , including improved sourcing , product redesign and lean projects focused on factory efficiency . we anticipate cost increases from commodities , pension , healthcare and other inflationary costs . the pricing environment is expected to remain competitive in 2011 and achieving 17 parity with commodity costs is expected to be a challenge . we plan to continue to invest in people and resources to support our growth initiatives . overall we expect to expand operating margin by approximately 50 basis points in 2011 compared to 2010. additionally , we expect our 2011 tax rate to increase by approximately 50 basis points due to a higher mix of domestic income . in 2011 , we anticipate generating free cash flow approximately equal to net income . finally , with our strong financial position , we expect to continue to pursue additional acquisitions . results of operations our operations are classified into two 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 . these markets , in order of magnitude of net sales to the company , are non-residential construction ( approximately 40 % ) , industrial ( approximately 25 % ) , utility ( approximately 25 % ) and residential construction ( approximately 10 % ) . in 2010 , market conditions were mixed . non-residential construction declined due to lower levels of activity and a lack of available financing for projects . the industrial market improved slightly due to higher factory utilization . the utility market improved due to higher electricity consumption which increased mro demand within the distribution segment . the residential market also improved slightly due to the tax credits stimulus at the beginning of 2010. summary of consolidated results ( in millions , except per share data ) replace_table_token_6_th 2010 compared to 2009 net sales net sales for the year ended 2010 were $ 2.5 billion , an increase of 8 % over the year ended 2009. this increase was due to the burndy acquisition , favorable currency translation and higher organic volume . the burndy acquisition added approximately six percentage points to net sales in 2010 compared to 2009 while currency translation and volume increased net sales by one percentage point each in 2010 compared with 2009. gross profit the gross profit margin for 2010 increased to 32.6 % compared to 30.8 % in 2009. the increase was primarily due to productivity improvements , including improved factory utilization , and the favorable impact of the burndy acquisition partially offset by unfavorable price realization and higher commodity costs . 18 selling & administrative expenses ( s & a ) s & a expenses increased 7 % compared to 2009 primarily due to the full year impact of the burndy acquisition partially offset by savings from streamlining actions . as a percentage of net sales , s & a expenses were 18.1 % in 2010 compared to 18.3 % in 2009 as cost increases were in line with volume growth . operating income operating income increased 25 % primarily due to higher net sales and gross profit partially offset by higher selling and administrative costs . operating margin of 14.5 % in 2010 increased 200 basis points compared to 12.5 % in 2009 as a result of productivity improvements and improved product mix , including burndy , partially offset by unfavorable price realization , higher commodity costs and other inflationary increases . total other expense , net in 2010 , total other expense , net increased by $ 14.3 million primarily due to the costs associated with the early extinguishment of debt and higher net interest expense partially offset by lower net foreign currency transaction losses . costs associated with the debt extinguishment were $ 14.7 million in 2010. interest expense increased by $ 0.2 million compared to 2009 due to higher average long term debt in 2010 compared to 2009 due to the timing of the completion of debt refinancing in november 2010. income taxes the effective tax rate in 2010 was 31.7 % compared to 30.7 % in 2009. the increased tax rate for 2010 reflects the absence of an out-of-period adjustment related to certain deferred tax accounts of $ 4.9 million in 2009 partially offset by the favorable impact of foreign and state income taxes in 2010 when compared to 2009. additional information related to our effective tax rate is included in note 12  income taxes in the notes to the consolidated financial statements . net income attributable to hubbell and earnings per diluted share net income attributable to hubbell and earnings per diluted share in 2010 increased 21 % and 14 % , respectively , compared to 2009 as a result of higher net sales and operating income partially offset by costs for the early extinguishment of debt and a higher effective tax rate . the impact of the early extinguishment of debt charge was $ 0.15 on earnings per diluted share . in addition , earnings per diluted share reflects an increase in average shares outstanding in 2010 compared to 2009 partially due to the full year impact of shares issued in the fourth quarter of 2009. segment results electrical segment replace_table_token_7_th net sales in the electrical segment increased 10 % in 2010 compared with 2009. the burndy acquisition and currency translation added nine and one percentage points , respectively , to net sales in 2010 compared to 2009. within the segment , electrical systems products net sales increased 21 % in 2010 compared to 2009 due to the burndy acquisition , higher volume and favorable story_separator_special_tag assumptions the following assumptions were used to determine projected pension and other benefit obligations at the measurement date and the net periodic benefit costs for the year : replace_table_token_13_th at the end of each year , we estimate the expected long-term rate of return on pension plan assets based on the strategic asset allocation for our plans . in making this determination , we utilize expected rates of return for each asset class based upon current market conditions and expected risk premiums for each asset class . a one percentage point change in the expected long-term rate of return on pension fund assets would have an impact of approximately 26 $ 6.2 million on 2011 pretax pension expense . the expected long-term rate of return is applied to the fair market value of pension fund assets to produce the expected return on fund assets that is included in pension expense . the difference between this expected return and the actual return on plan assets was recognized at december 31 , 2010 for balance sheet purposes , but continues to be deferred for expense purposes . the net deferral of past asset gains ( losses ) ultimately affects future pension expense through the amortization of gains ( losses ) with an offsetting adjustment to hubbell shareholders ' equity through accumulated other comprehensive loss . at the end of each year , we determine the discount rate to be used to calculate the present value of pension plan liabilities . the discount rate is an estimate of the current interest rate at which the pension plans ' liabilities could effectively be settled . in estimating this rate , we look to rates of return on high-quality , fixed-income investments with maturities that closely match the expected funding period of our pension liability . the discount rate of 5.40 % which we used to determine the projected benefit obligation for our u.s. pension plans at december 31 , 2010 was determined using the citigroup pension discount curve applied to our expected annual future pension benefit payments . a similar methodology was utilized for our international pension plans resulting in a discount rate of 5.30 % and 5.00 % , respectively , for our uk and canadian plans . an increase of one percentage point in the discount rate would lower 2011 pretax pension expense by approximately $ 6.4 million . a discount rate decline of one percentage point would increase pretax pension expense by approximately $ 8.2 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 . the discount rate of 5.40 % used to determine the projected benefit obligation at december 31 , 2010 was based upon the citigroup pension discount curve as applied to our projected annual benefit payments . in 2010 and 2009 in accordance with the accounting guidance for retirement benefits we recorded ( charges ) credits to accumulated other comprehensive loss within hubbell shareholders ' equity , net of tax , of $ 2.8 million and $ 0.5 million , respectively , related to opeb . 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 . 27 contractual obligations a summary of our contractual obligations and commitments at december 31 , 2010 is as follows ( in millions ) : replace_table_token_14_th 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 , 2010 , we have $ 25.2 million of uncertain tax positions included in long-term liabilities in our consolidated balance sheet . we are unable to make a reasonable estimate regarding 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 our most critical in fully understanding and

