net sales for 2002 increased 9.9 % from the 2001 level , due principally to the combined effects of a 5.4 % gain in total unit tire volume , a 2.7 % increase in the average tire sales price and greater service revenues in company-operated retail tire outlets . in comparison , unit tire shipments for the u.s. replacement tire industry as a whole declined approximately 0.3 % during 2002 ( based on preliminary data ) . the percentage of total company sales attributable to tires was 85 % in 2002 compared to 86 % in 2001. net sales by the company 's retail segment increased 14.8 % compared to the 2001 level , including a 7.7 % increase in unit tire volume , a 2.6 % increase in the average retail tire sales price and the previously-mentioned increase in service revenues . sales by the retail segment were favorably affected by an increase in the number of company-operated and franchised stores in the company 's retail systems . at the end of 2002 , the company had a total of 758 stores in its two retail systems compared to 686 stores at december 31 , 2001. net sales by the wholesale segment increased 6.1 % over the 2001 level , due principally to a 4.4 % increase in unit tire sales and a 2.4 % increase in average tire sales prices . gross profit as a percentage of net sales increased from 26.3 % in 2001 to 27.2 % in 2002. the improved overall gross profit percentage was largely due to the increased contribution from the retail segment . in addition , the company 's increased overall unit volume led to greater purchasing leverage with suppliers and a resulting improvement in net purchase prices . gross margin percentages on sales by the company 's retail segment increased to 42.5 % in 2002 from 41.7 % in 2001 , while wholesale margins were 14.1 % in 2002 compared to 14.0 % in 2001. distribution expenses as a percentage of net sales decreased from 5.0 % in 2001 to 4.8 % in 2002. increases in total sales helped to leverage the company 's warehousing and product delivery costs , since many of them , such as rent , do not vary in relation to sales . selling , administrative and retail store expenses increased $ 27.7 million in 2002 compared to 2001 , due principally to a greater number of company-operated retail stores . expenses for such retail stores include payroll , operating and service-related costs , in addition to certain other selling and administrative expenses . expenses in 2001 included amortization of goodwill and trademarks of $ 2.8 million . no amortization of such assets was recorded in 2002 , under the provisions of statement of financial accounting standards no . 142 ( sfas no . 142 ) , which was adopted by the company on january 1 , 2002 ( see note 1 to the consolidated financial statements . ) expenses in 2001 also included $ 720,000 related to the writeoff of a prepaid pension asset . excluding the impact of the amortization and pension charge in the prior year and the expenses associated with the new stores , selling , administrative and retail store expenses increased only 4.5 % in 2002 compared to the 2001 level , while net sales ( excluding the new stores ) increased 5.7 % . -10- net interest expense decreased $ 2.5 million in 2002 compared to 2001 level , due principally to the combined effects of lower overall borrowing rates and lower average borrowings . the company 's average borrowing rate in 2002 was approximately 16 % lower than in 2001 , which was a reflection of lower market interest rates as well as efforts by the company to better manage receivables , inventories and other key components of working capital and thereby minimize interest rate spreads under its borrowing agreements . average borrowings declined 12 % from the 2001 level , principally as a result of cash generated from operations and the above-mentioned management efforts which allowed the company to reduce its debt to banks and other lenders . net interest expense in 2001 included interest income of $ 606,000 related to refunds on amended tax returns filed in prior years . net other income in 2002 was $ 557,000 less than in 2001 , due primarily to a decline in interest and service charge income from customers as well as a decrease in the company 's equity in operating results from joint ventures . the company 's effective tax rate was 37.3 % in 2002 compared to 39.9 % in 2001. the lower effective rate in 2002 was due to reduced provisions for state income taxes as well as the impact of sfas no . 142 , since the majority of goodwill amortized in prior years was not deductible for tax purposes . earnings per diluted share were $ 1.25 in 2002 and $ 0.98 in 2001. earnings per diluted share in 2001 included a charge of $ 0.02 as a result of the previously-noted writeoff of a prepaid pension asset and a credit of $ 0.02 related to interest on prior year amended tax returns , in addition to the approximate $ 0.12 charge related to the amortization of goodwill and certain other intangible assets prior to the adoption of sfas no . 142. excluding the effects of these items , earnings in 2001 would have been approximately $ 1.10 per diluted share . story_separator_special_tag excluding the effects of these items , earnings were $ 0.98 ( as reported ) in 2001 compared to $ 0.92 per diluted share in 2000. story_separator_special_tag n april 2002 , statement of financial accounting standards no . 145 , rescission of fasb statements no . 4 , 44 , and 64 , amendment of fasb statement no . 13 , and technical corrections. was issued . sfas no . 145 rescinded three previously issued statements and amended sfas no . 13 , accounting for leases. the statement provides reporting standards for debt extinguishments and provides accounting standards for certain lease modifications that have economic effects similar to sale-leaseback transactions . the statement was effective for certain lease transactions occurring after may 15 , 2002 and all other provisions of the statement were effective for financial statements issued on or after may 15 , 2002. adoption of this standard did not have any impact on the company 's financial statements . in june 2002 , statement of financial accounting standards no . 146 , accounting for costs associated with exit or disposal activities was issued , effective for such activities initiated after december 31 , 2002. the statement addresses financial accounting and reporting for costs associated with exit or disposal activities and nullifies emerging issues task force issue no . 94-3. sfas no . 146 requires that a liability for a cost associated with an exit or disposal activity be recognized when the liability is incurred and establishes that fair value is the objective for initial measurement of the liability . the company does not expect the adoption of sfas no . 146 to have a material effect on its financial statements . in december 2002 , statement of financial accounting standards no . 148 , accounting for stock-based compensation-transition and disclosure was issued . sfas no . 148 amends sfas no . 123 , accounting for stock-based compensation ,  and provides alternative methods of transition for a voluntary change to the fair value based method of accounting for stock-based compensation . sfas no . 148 also amends the disclosure requirements of sfas no . 123 to require more prominent and frequent disclosures in financial statements about the effects of stock-based compensation . the company will adopt the disclosure provisions of sfas no . 148 beginning in 2003 and therefore does not expect the statement to have any impact on its financial position or results of operations . in november 2002 , fasb interpretation no . 45 , guarantor 's accounting and disclosure requirements for guarantees , including indirect guarantees of indebtedness of others ,  was issued . fin 45 elaborates on the financial statement disclosures to be made by a guarantor about its obligations under certain guarantees . it also clarifies that a guarantor is required to recognize , at inception of a guarantee , a liability for -14- the fair value of the obligation undertaken in issuing the guarantee . the initial recognition and initial measurement provisions of this interpretation are applicable on a prospective basis to guarantees issued or modified after december 31 , 2002. the disclosure requirements in the interpretation are effective for financial statements of interim or annual periods ending after december 15 , 2002 and the company has included such disclosures in note 11 to the consolidated financial statements . the company does not expect adoption of the liability recognition provisions to have a material impact on its financial position or results of operations . in january 2003 , fasb interpretation no . 46 , consolidation of variable interest entities ,  was issued . this interpretation provides guidance on how to identify a variable interest entity ( vie ) and determine when the assets , liabilities , noncontrolling interests , and results of operations of a vie need to be included in a company 's consolidated financial statements . a company that holds variable interests in an entity must consolidate the entity if the company 's interest in the vie is such that the company will absorb a majority of the vie 's expected losses and or receive a majority of the entity 's expected residual returns , if they occur . fin 46 also requires additional disclosures by primary beneficiaries and other significant variable interest holders . the provisions of this interpretation apply immediately to vie 's created after january 31 , 2003. for vie 's created prior to february 1 , 2003 , the company must apply fin 46 to financial statements for periods beginning july 1 , 2003. the company has certain synthetic lease agreements that may be affected by the provisions of fin 46 , but the company does not expect this interpretation to have a material impact on its financial position or results of operations . forward-looking statements and risks this management 's discussion and analysis of financial condition and results of operations contains certain forward-looking statements within the meaning of section 27a of the securities act of 1933 , as amended , and section 21e of the securities act of 1934 , as amended , including , without limitation , statements containing the words believes ,  expects ,  anticipates ,  estimates and words of similar import . such forward-looking statements relate to expectations for future financial performance , which involve known and unknown risks , uncertainties and other factors . such factors include , but are not limited to : changes in economic and business conditions in the world ; increased competitive activity ; consolidation within and among both competitors , suppliers and customers ; unexpected changes in the replacement tire market ; the company 's inability to attract as many new franchisees or open as many company-operated retail outlets as planned ; changes in the company 's ability to identify and acquire additional companies in the replacement tire industry and the failure to achieve synergies or savings anticipated in such acquisitions ; fluctuations in tire prices charged by manufacturers , including

liquidity and capital resources the company had working capital of $ 166.6 million at december 31 , 2002 , relatively unchanged from $ 167.2 million at the end of 2001. the company 's current ratio was 2.10 at the end of both 2002 and 2001. in january 2001 , the company entered into a borrowing agreement with a group of 11 banks which included an $ 80 million , three-year revolving loan facility and an $ 80 million , five-year term loan . at december 31 , 2002 , $ 35.0 million was borrowed under the bank revolving loan facility and $ 63 million was outstanding under the bank term loan . the company 's long-term debt at the end of 2002 also included $ 34.0 million in senior notes . of the total $ 132.0 million borrowed at december 31 , 2002 under these credit arrangements , $ 53.5 million was classified as current on the company 's balance sheet and the remaining $ 78.5 million was considered noncurrent . the company is subject to certain financial covenants and other restrictions under its agreements with the respective lenders ( see note 4 to the consolidated financial statements ) . the company was in compliance with all of its borrowing covenants as of december 31 , 2002 and for the year then ended . the current revolving loan facility is scheduled to expire in january 2004. the company began discussions with lenders in early 2003 to restructure its borrowing agreements , to provide financial resources to help meet the company 's capital needs as it plans for continued future growth . -12- cash generated by operations , together with the available credit arrangements , enabled the company to fund capital expenditures totaling $ 15.2 million in 2002 , as well as the purchase of the net assets of certain retail tire stores for $ 11.2 million . additionally , the company was able to reduce its total funded debt by a total of $ 19.7 million during 2002 and fund repurchases of common stock totaling $ 3.1 million .


 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 the company had working capital of $ 166.6 million at december 31 , 2002 , relatively unchanged from $ 167.2 million at the end of 2001. the company 's current ratio was 2.10 at the end of both 2002 and 2001. in january 2001 , the company entered into a borrowing agreement with a group of 11 banks which included an $ 80 million , three-year revolving loan facility and an $ 80 million , five-year term loan . at december 31 , 2002 , $ 35.0 million was borrowed under the bank revolving loan facility and $ 63 million was outstanding under the bank term loan . the company 's long-term debt at the end of 2002 also included $ 34.0 million in senior notes . of the total $ 132.0 million borrowed at december 31 , 2002 under these credit arrangements , $ 53.5 million was classified as current on the company 's balance sheet and the remaining $ 78.5 million was considered noncurrent . the company is subject to certain financial covenants and other restrictions under its agreements with the respective lenders ( see note 4 to the consolidated financial statements ) . the company was in compliance with all of its borrowing covenants as of december 31 , 2002 and for the year then ended . the current revolving loan facility is scheduled to expire in january 2004. the company began discussions with lenders in early 2003 to restructure its borrowing agreements , to provide financial resources to help meet the company 's capital needs as it plans for continued future growth . -12- cash generated by operations , together with the available credit arrangements , enabled the company to fund capital expenditures totaling $ 15.2 million in 2002 , as well as the purchase of the net assets of certain retail tire stores for $ 11.2 million . additionally , the company was able to reduce its total funded debt by a total of $ 19.7 million during 2002 and fund repurchases of common stock totaling $ 3.1 million .
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 Suspicious Activity Report : net sales for 2002 increased 9.9 % from the 2001 level , due principally to the combined effects of a 5.4 % gain in total unit tire volume , a 2.7 % increase in the average tire sales price and greater service revenues in company-operated retail tire outlets . in comparison , unit tire shipments for the u.s. replacement tire industry as a whole declined approximately 0.3 % during 2002 ( based on preliminary data ) . the percentage of total company sales attributable to tires was 85 % in 2002 compared to 86 % in 2001. net sales by the company 's retail segment increased 14.8 % compared to the 2001 level , including a 7.7 % increase in unit tire volume , a 2.6 % increase in the average retail tire sales price and the previously-mentioned increase in service revenues . sales by the retail segment were favorably affected by an increase in the number of company-operated and franchised stores in the company 's retail systems . at the end of 2002 , the company had a total of 758 stores in its two retail systems compared to 686 stores at december 31 , 2001. net sales by the wholesale segment increased 6.1 % over the 2001 level , due principally to a 4.4 % increase in unit tire sales and a 2.4 % increase in average tire sales prices . gross profit as a percentage of net sales increased from 26.3 % in 2001 to 27.2 % in 2002. the improved overall gross profit percentage was largely due to the increased contribution from the retail segment . in addition , the company 's increased overall unit volume led to greater purchasing leverage with suppliers and a resulting improvement in net purchase prices . gross margin percentages on sales by the company 's retail segment increased to 42.5 % in 2002 from 41.7 % in 2001 , while wholesale margins were 14.1 % in 2002 compared to 14.0 % in 2001. distribution expenses as a percentage of net sales decreased from 5.0 % in 2001 to 4.8 % in 2002. increases in total sales helped to leverage the company 's warehousing and product delivery costs , since many of them , such as rent , do not vary in relation to sales . selling , administrative and retail store expenses increased $ 27.7 million in 2002 compared to 2001 , due principally to a greater number of company-operated retail stores . expenses for such retail stores include payroll , operating and service-related costs , in addition to certain other selling and administrative expenses . expenses in 2001 included amortization of goodwill and trademarks of $ 2.8 million . no amortization of such assets was recorded in 2002 , under the provisions of statement of financial accounting standards no . 142 ( sfas no . 142 ) , which was adopted by the company on january 1 , 2002 ( see note 1 to the consolidated financial statements . ) expenses in 2001 also included $ 720,000 related to the writeoff of a prepaid pension asset . excluding the impact of the amortization and pension charge in the prior year and the expenses associated with the new stores , selling , administrative and retail store expenses increased only 4.5 % in 2002 compared to the 2001 level , while net sales ( excluding the new stores ) increased 5.7 % . -10- net interest expense decreased $ 2.5 million in 2002 compared to 2001 level , due principally to the combined effects of lower overall borrowing rates and lower average borrowings . the company 's average borrowing rate in 2002 was approximately 16 % lower than in 2001 , which was a reflection of lower market interest rates as well as efforts by the company to better manage receivables , inventories and other key components of working capital and thereby minimize interest rate spreads under its borrowing agreements . average borrowings declined 12 % from the 2001 level , principally as a result of cash generated from operations and the above-mentioned management efforts which allowed the company to reduce its debt to banks and other lenders . net interest expense in 2001 included interest income of $ 606,000 related to refunds on amended tax returns filed in prior years . net other income in 2002 was $ 557,000 less than in 2001 , due primarily to a decline in interest and service charge income from customers as well as a decrease in the company 's equity in operating results from joint ventures . the company 's effective tax rate was 37.3 % in 2002 compared to 39.9 % in 2001. the lower effective rate in 2002 was due to reduced provisions for state income taxes as well as the impact of sfas no . 142 , since the majority of goodwill amortized in prior years was not deductible for tax purposes . earnings per diluted share were $ 1.25 in 2002 and $ 0.98 in 2001. earnings per diluted share in 2001 included a charge of $ 0.02 as a result of the previously-noted writeoff of a prepaid pension asset and a credit of $ 0.02 related to interest on prior year amended tax returns , in addition to the approximate $ 0.12 charge related to the amortization of goodwill and certain other intangible assets prior to the adoption of sfas no . 142. excluding the effects of these items , earnings in 2001 would have been approximately $ 1.10 per diluted share . story_separator_special_tag excluding the effects of these items , earnings were $ 0.98 ( as reported ) in 2001 compared to $ 0.92 per diluted share in 2000. story_separator_special_tag n april 2002 , statement of financial accounting standards no . 145 , rescission of fasb statements no . 4 , 44 , and 64 , amendment of fasb statement no . 13 , and technical corrections. was issued . sfas no . 145 rescinded three previously issued statements and amended sfas no . 13 , accounting for leases. the statement provides reporting standards for debt extinguishments and provides accounting standards for certain lease modifications that have economic effects similar to sale-leaseback transactions . the statement was effective for certain lease transactions occurring after may 15 , 2002 and all other provisions of the statement were effective for financial statements issued on or after may 15 , 2002. adoption of this standard did not have any impact on the company 's financial statements . in june 2002 , statement of financial accounting standards no . 146 , accounting for costs associated with exit or disposal activities was issued , effective for such activities initiated after december 31 , 2002. the statement addresses financial accounting and reporting for costs associated with exit or disposal activities and nullifies emerging issues task force issue no . 94-3. sfas no . 146 requires that a liability for a cost associated with an exit or disposal activity be recognized when the liability is incurred and establishes that fair value is the objective for initial measurement of the liability . the company does not expect the adoption of sfas no . 146 to have a material effect on its financial statements . in december 2002 , statement of financial accounting standards no . 148 , accounting for stock-based compensation-transition and disclosure was issued . sfas no . 148 amends sfas no . 123 , accounting for stock-based compensation ,  and provides alternative methods of transition for a voluntary change to the fair value based method of accounting for stock-based compensation . sfas no . 148 also amends the disclosure requirements of sfas no . 123 to require more prominent and frequent disclosures in financial statements about the effects of stock-based compensation . the company will adopt the disclosure provisions of sfas no . 148 beginning in 2003 and therefore does not expect the statement to have any impact on its financial position or results of operations . in november 2002 , fasb interpretation no . 45 , guarantor 's accounting and disclosure requirements for guarantees , including indirect guarantees of indebtedness of others ,  was issued . fin 45 elaborates on the financial statement disclosures to be made by a guarantor about its obligations under certain guarantees . it also clarifies that a guarantor is required to recognize , at inception of a guarantee , a liability for -14- the fair value of the obligation undertaken in issuing the guarantee . the initial recognition and initial measurement provisions of this interpretation are applicable on a prospective basis to guarantees issued or modified after december 31 , 2002. the disclosure requirements in the interpretation are effective for financial statements of interim or annual periods ending after december 15 , 2002 and the company has included such disclosures in note 11 to the consolidated financial statements . the company does not expect adoption of the liability recognition provisions to have a material impact on its financial position or results of operations . in january 2003 , fasb interpretation no . 46 , consolidation of variable interest entities ,  was issued . this interpretation provides guidance on how to identify a variable interest entity ( vie ) and determine when the assets , liabilities , noncontrolling interests , and results of operations of a vie need to be included in a company 's consolidated financial statements . a company that holds variable interests in an entity must consolidate the entity if the company 's interest in the vie is such that the company will absorb a majority of the vie 's expected losses and or receive a majority of the entity 's expected residual returns , if they occur . fin 46 also requires additional disclosures by primary beneficiaries and other significant variable interest holders . the provisions of this interpretation apply immediately to vie 's created after january 31 , 2003. for vie 's created prior to february 1 , 2003 , the company must apply fin 46 to financial statements for periods beginning july 1 , 2003. the company has certain synthetic lease agreements that may be affected by the provisions of fin 46 , but the company does not expect this interpretation to have a material impact on its financial position or results of operations . forward-looking statements and risks this management 's discussion and analysis of financial condition and results of operations contains certain forward-looking statements within the meaning of section 27a of the securities act of 1933 , as amended , and section 21e of the securities act of 1934 , as amended , including , without limitation , statements containing the words believes ,  expects ,  anticipates ,  estimates and words of similar import . such forward-looking statements relate to expectations for future financial performance , which involve known and unknown risks , uncertainties and other factors . such factors include , but are not limited to : changes in economic and business conditions in the world ; increased competitive activity ; consolidation within and among both competitors , suppliers and customers ; unexpected changes in the replacement tire market ; the company 's inability to attract as many new franchisees or open as many company-operated retail outlets as planned ; changes in the company 's ability to identify and acquire additional companies in the replacement tire industry and the failure to achieve synergies or savings anticipated in such acquisitions ; fluctuations in tire prices charged by manufacturers , including

