customers we serve a broad suite of customers , with our largest customer representing approximately 7 % of our sales . many are companies whose names are widely recognized . they include most producers of residential furniture and bedding , auto and office seating manufacturers , and a variety of other companies . major factors that impact our business many factors impact our business , but those that generally have the greatest impact are market demand , raw material cost trends , and competition . market demand market demand ( including product mix ) is impacted by several economic factors , with consumer confidence being most significant . other important factors include disposable income levels , employment levels , housing turnover , and interest rates . all of these factors influence consumer spending on durable goods , and therefore affect demand for our components and products . some of these factors also influence business spending on facilities and equipment , which impacts approximately one-quarter of our sales . we continue to retain more production capacity than we currently utilize , and with our meaningful operating leverage , earnings should further benefit as market demand continues to improve . for each additional $ 100 million of sales from incremental unit volume produced utilizing this spare capacity , we expect to generate approximately $ 25 million to $ 35 million of additional pre-tax earnings . raw material costs in many of our businesses , we enjoy a cost advantage from being vertically integrated into steel wire and rod . this is a benefit that our competitors do not have . we also experience favorable purchasing leverage from buying large quantities of raw materials . still , our costs can vary significantly as market prices for raw materials ( many of which are commodities ) fluctuate . we typically have short-term commitments from our suppliers ; accordingly , our raw material costs generally move with the market . our ability to recover higher costs ( through selling price increases ) is crucial . when we experience significant increases in raw material costs , we typically implement price increases to recover the higher costs . conversely , when costs decrease significantly , we generally pass those lower costs through to our customers . the timing of our price increases or decreases is important ; we typically experience a lag in recovering higher costs , so we also expect to realize a lag as costs decline . 26 part ii steel is our principal raw material . at various times in past years we have experienced significant cost fluctuations in this commodity . in most cases , the major changes ( both increases and decreases ) were passed through to customers with selling price adjustments . as we begin 2015 , market prices for steel scrap in the u.s. are decreasing . this is leading to downward pricing pressure on steel rod and other types of steel materials . we expect , in certain cases , to pass the lower costs through to our customers . however , our margins could experience some short-term pressure if steel deflation causes us to reduce our selling prices before we consume our higher cost inventories . as a producer of steel rod , we are also impacted by changes in metal margins ( the difference between the cost of steel scrap and the market price for steel rod ) . metal margins within the steel industry have been volatile during certain periods in recent years . in late 2013 and early 2014 , metal margins decreased significantly as market conditions did not allow full recovery of higher scrap costs . an antidumping and countervailing duty case filed in january 2014 by major u.s. steel wire rod producers was concluded in december 2014 , resulting in the implementation of duties on imports of chinese steel wire rod . the antidumping duties range from 106 % to 110 % and the countervailing duties range from 178 % to 193 % . both remain in effect through december 2019. our other raw materials include woven and non-woven fabrics , foam scrap , and chemicals . we have experienced changes in the cost of these materials in recent years , and in most years , have been able to pass them through to our customers . when we raise our prices to recover higher raw material costs , this sometimes causes customers to modify their product designs and replace higher cost components with lower cost components . we must continue to find ways to assist our customers in improving the functionality and reducing the cost of their products , while providing higher margin and profit contribution for our operations . competition many of our markets are highly competitive , with the number of competitors varying by product line . in general , our competitors tend to be smaller , private companies . many of our competitors , both domestic and foreign , compete primarily on the basis of price . our success has stemmed from the ability to remain price competitive , while delivering better product quality , innovation , and customer service . we continue to face pressure from foreign competitors as some of our customers source a portion of their components and finished products offshore . in addition to lower labor rates , foreign competitors benefit ( at times ) from lower raw material costs . they may also benefit from currency factors and more lenient regulatory climates . we typically remain price competitive , even versus many foreign manufacturers , as a result of our highly efficient operations , low labor content , vertical integration in steel and wire , logistics and distribution efficiencies , and large scale purchasing of raw materials and commodities . however , we have also reacted to foreign competition in certain cases by selectively adjusting prices , and by developing new proprietary products that help our customers reduce total costs . story_separator_special_tag the decrease in trade sales of steel rod during 2013 was offset by an increase in intra-segment rod sales , and the rod mill continued to operate at full capacity . 34 part ii earnings from continuing operations decreased as a result of non-cash impairment and other charges related to the goodwill and other intangible assets of our cvp business , and the non-recurrence of a significant tax benefit from 2012. operationally , the earnings benefit from modest unit volume growth and acquisitions was largely offset by an increase in steel costs late in the year that resulted in higher lifo expense . the other items detailed in the table above also contributed to the change in earnings . 2013 earnings from continuing operations also benefited $ 8 million ( $ 5 million after tax ) from gains on asset sales . these gains are primarily comprised of a $ 3 million gain related to a hurricane insurance claim , and $ 3 million for several different properties associated with the closing of various operations in prior years . lifo impact all of our segments use the first-in , first-out ( fifo ) method for valuing inventory . in our consolidated financials , an adjustment is made at the corporate level ( i.e . , outside the segments ) to convert about 50 % of our inventories to the last-in , first-out ( lifo ) method . these are primarily our domestic , steel-related inventories . in 2012 , lower commodity costs led to a lifo benefit of $ 13 million . steel inflation in late 2013 resulted in a significant change in our full-year lifo estimates ( interim expectations for a full-year lifo benefit of $ 12 million changed instead to a full year expense of $ 4 million as steel costs increased late in the year ) and a concentration of lifo expense in the fourth quarter . for further discussion of inventories , see note a to the consolidated financial statements on page 74. interest and income taxes net interest expense in 2013 was flat with 2012. the 2013 worldwide effective income tax rate on our continuing operations was 22 % , compared to 19 % for 2012. in both years the tax rate reflects necessary tax reserve reductions and other tax benefits that lowered the overall rate . the 2013 tax rate includes $ 17 million of favorable adjustments primarily related to the impact of mexico tax law changes , the settlement of certain foreign and state tax audits , and a non-taxable bargain purchase gain . the impact of these items on the tax rate was magnified by our fourth quarter cvp impairment . in 2012 , the tax rate benefited from the release of a $ 38 million valuation allowance on certain canadian deferred tax assets , partially offset by the accrual of $ 11 million of china withholding taxes . 35 part ii segment results ( continuing operations ) in the following section we discuss 2013 sales and ebit from continuing operations for each of our segments . we provide additional detail about segment results and a reconciliation of segment ebit to consolidated ebit in note f to the consolidated financial statements on page 84. reported amounts for 2012 have been retrospectively adjusted to reflect only continuing operations . for further information about discontinued operations , see note b to the consolidated financial statements on page 77. replace_table_token_9_th ( 1 ) this is the change in sales not attributable to acquisitions or divestitures . these are sales that come from the same plants and facilities that we owned one year earlier . ( 2 ) segment margins are calculated on total sales . overall company margin is calculated on external sales . residential furnishings residential furnishings sales increased 3 % in 2013 from unit volume growth in certain product categories and raw material-related price increases in carpet underlay . volume grew primarily in european spring , seating components , sofa sleepers , and carpet underlay . these gains were partially offset by lower adjustable bed volume . within our u.s. spring business , we experienced unit volume growth in boxsprings and comfortcore ® ( which is our pocketed coil innerspring ) , however total domestic innerspring units decreased modestly . furniture hardware unit volume also decreased for the full year . ebit and ebit margins increased in 2013 , primarily due to higher sales , cost improvements , and favorable product mix in u.s. spring . 36 part ii commercial fixturing & components sales in commercial fixturing & components decreased 2 % in 2013 due to lower demand in the office seating market which negatively impacted our work furniture business . ebit and ebit margins decreased in 2013 , primarily from lower sales , unfavorable product mix , and weak performance by our chinese joint venture operation . industrial materials sales in the segment decreased 3 % in 2013 , with revenue from acquisitions more than offset by lower trade sales from our rod mill and steel-related price deflation . the decrease in trade sales of steel rod during the year was more than offset by an increase in intra-segment rod sales , and the rod mill continued to operate at full capacity . a change in the mix of rod sales from trade to intra-segment is generally positive to earnings since that change tends to also shift the production mix to higher-value high carbon rods . ebit and ebit margins improved versus 2012 , primarily due to the absence of acquisition-related costs at western pneumatic tube and earnings from acquisitions . these gains were partially offset by lower metal margins in steel rod in the second half of 2013. we expanded our aerospace products business unit in 2013 with the acquisition of two companies . the first was a u.k.-based business acquired in may that extended our capability in aerospace tube fabrication . we recorded $ 6 million of goodwill related to

liquidity and capitalization our operations provide most of the cash we require , and debt may also be used to fund a portion of our needs . cash from operations was once again strong in 2014. for over 25 years , our operations have provided more than enough cash to fund both capital expenditures and dividend payments . we expect this to again be the case in 2015. capital expenditures increased in 2014 , driven in part by investments to support strong growth in automotive and u.s. spring . we also completed five acquisitions , the largest of which included the three tempur sealy innerspring facilities , and bought back 5.4 million shares of our stock during the year . we ended 2014 with net debt to net capital at 31.5 % , within our long-standing targeted range of 30-40 % . the calculation of net debt as a percent of net capital is presented on page 44. in november 2014 , we issued $ 300 million of 3.8 % notes and repaid $ 180 million of 4.65 % notes that matured . we ended the year with all of our $ 600 million commercial paper program available . cash from operations cash from operations is our primary source of funds . earnings and changes in working capital levels are the two broad factors that generally have the greatest impact on our cash from operations . cash from operations decreased in 2014 from a combination of factors . net earnings declined primarily due to a goodwill impairment charge ( which was a non-cash item ) and increased litigation accruals . this decrease in earnings was partially offset by a net reduction in working capital that resulted from the increased litigation accruals ( a significant portion of which was not paid in 2014 ) , partially offset by higher accounts receivable associated with increased sales volume late in the year . 38 part ii we continue to closely monitor our working capital levels , and ended 2014 with adjusted working capital at 7.9 % of annualized sales from continuing operations 1 . the table below shows this non-gaap calculation .


 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 capitalization our operations provide most of the cash we require , and debt may also be used to fund a portion of our needs . cash from operations was once again strong in 2014. for over 25 years , our operations have provided more than enough cash to fund both capital expenditures and dividend payments . we expect this to again be the case in 2015. capital expenditures increased in 2014 , driven in part by investments to support strong growth in automotive and u.s. spring . we also completed five acquisitions , the largest of which included the three tempur sealy innerspring facilities , and bought back 5.4 million shares of our stock during the year . we ended 2014 with net debt to net capital at 31.5 % , within our long-standing targeted range of 30-40 % . the calculation of net debt as a percent of net capital is presented on page 44. in november 2014 , we issued $ 300 million of 3.8 % notes and repaid $ 180 million of 4.65 % notes that matured . we ended the year with all of our $ 600 million commercial paper program available . cash from operations cash from operations is our primary source of funds . earnings and changes in working capital levels are the two broad factors that generally have the greatest impact on our cash from operations . cash from operations decreased in 2014 from a combination of factors . net earnings declined primarily due to a goodwill impairment charge ( which was a non-cash item ) and increased litigation accruals . this decrease in earnings was partially offset by a net reduction in working capital that resulted from the increased litigation accruals ( a significant portion of which was not paid in 2014 ) , partially offset by higher accounts receivable associated with increased sales volume late in the year . 38 part ii we continue to closely monitor our working capital levels , and ended 2014 with adjusted working capital at 7.9 % of annualized sales from continuing operations 1 . the table below shows this non-gaap calculation .
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 Suspicious Activity Report : customers we serve a broad suite of customers , with our largest customer representing approximately 7 % of our sales . many are companies whose names are widely recognized . they include most producers of residential furniture and bedding , auto and office seating manufacturers , and a variety of other companies . major factors that impact our business many factors impact our business , but those that generally have the greatest impact are market demand , raw material cost trends , and competition . market demand market demand ( including product mix ) is impacted by several economic factors , with consumer confidence being most significant . other important factors include disposable income levels , employment levels , housing turnover , and interest rates . all of these factors influence consumer spending on durable goods , and therefore affect demand for our components and products . some of these factors also influence business spending on facilities and equipment , which impacts approximately one-quarter of our sales . we continue to retain more production capacity than we currently utilize , and with our meaningful operating leverage , earnings should further benefit as market demand continues to improve . for each additional $ 100 million of sales from incremental unit volume produced utilizing this spare capacity , we expect to generate approximately $ 25 million to $ 35 million of additional pre-tax earnings . raw material costs in many of our businesses , we enjoy a cost advantage from being vertically integrated into steel wire and rod . this is a benefit that our competitors do not have . we also experience favorable purchasing leverage from buying large quantities of raw materials . still , our costs can vary significantly as market prices for raw materials ( many of which are commodities ) fluctuate . we typically have short-term commitments from our suppliers ; accordingly , our raw material costs generally move with the market . our ability to recover higher costs ( through selling price increases ) is crucial . when we experience significant increases in raw material costs , we typically implement price increases to recover the higher costs . conversely , when costs decrease significantly , we generally pass those lower costs through to our customers . the timing of our price increases or decreases is important ; we typically experience a lag in recovering higher costs , so we also expect to realize a lag as costs decline . 26 part ii steel is our principal raw material . at various times in past years we have experienced significant cost fluctuations in this commodity . in most cases , the major changes ( both increases and decreases ) were passed through to customers with selling price adjustments . as we begin 2015 , market prices for steel scrap in the u.s. are decreasing . this is leading to downward pricing pressure on steel rod and other types of steel materials . we expect , in certain cases , to pass the lower costs through to our customers . however , our margins could experience some short-term pressure if steel deflation causes us to reduce our selling prices before we consume our higher cost inventories . as a producer of steel rod , we are also impacted by changes in metal margins ( the difference between the cost of steel scrap and the market price for steel rod ) . metal margins within the steel industry have been volatile during certain periods in recent years . in late 2013 and early 2014 , metal margins decreased significantly as market conditions did not allow full recovery of higher scrap costs . an antidumping and countervailing duty case filed in january 2014 by major u.s. steel wire rod producers was concluded in december 2014 , resulting in the implementation of duties on imports of chinese steel wire rod . the antidumping duties range from 106 % to 110 % and the countervailing duties range from 178 % to 193 % . both remain in effect through december 2019. our other raw materials include woven and non-woven fabrics , foam scrap , and chemicals . we have experienced changes in the cost of these materials in recent years , and in most years , have been able to pass them through to our customers . when we raise our prices to recover higher raw material costs , this sometimes causes customers to modify their product designs and replace higher cost components with lower cost components . we must continue to find ways to assist our customers in improving the functionality and reducing the cost of their products , while providing higher margin and profit contribution for our operations . competition many of our markets are highly competitive , with the number of competitors varying by product line . in general , our competitors tend to be smaller , private companies . many of our competitors , both domestic and foreign , compete primarily on the basis of price . our success has stemmed from the ability to remain price competitive , while delivering better product quality , innovation , and customer service . we continue to face pressure from foreign competitors as some of our customers source a portion of their components and finished products offshore . in addition to lower labor rates , foreign competitors benefit ( at times ) from lower raw material costs . they may also benefit from currency factors and more lenient regulatory climates . we typically remain price competitive , even versus many foreign manufacturers , as a result of our highly efficient operations , low labor content , vertical integration in steel and wire , logistics and distribution efficiencies , and large scale purchasing of raw materials and commodities . however , we have also reacted to foreign competition in certain cases by selectively adjusting prices , and by developing new proprietary products that help our customers reduce total costs . story_separator_special_tag the decrease in trade sales of steel rod during 2013 was offset by an increase in intra-segment rod sales , and the rod mill continued to operate at full capacity . 34 part ii earnings from continuing operations decreased as a result of non-cash impairment and other charges related to the goodwill and other intangible assets of our cvp business , and the non-recurrence of a significant tax benefit from 2012. operationally , the earnings benefit from modest unit volume growth and acquisitions was largely offset by an increase in steel costs late in the year that resulted in higher lifo expense . the other items detailed in the table above also contributed to the change in earnings . 2013 earnings from continuing operations also benefited $ 8 million ( $ 5 million after tax ) from gains on asset sales . these gains are primarily comprised of a $ 3 million gain related to a hurricane insurance claim , and $ 3 million for several different properties associated with the closing of various operations in prior years . lifo impact all of our segments use the first-in , first-out ( fifo ) method for valuing inventory . in our consolidated financials , an adjustment is made at the corporate level ( i.e . , outside the segments ) to convert about 50 % of our inventories to the last-in , first-out ( lifo ) method . these are primarily our domestic , steel-related inventories . in 2012 , lower commodity costs led to a lifo benefit of $ 13 million . steel inflation in late 2013 resulted in a significant change in our full-year lifo estimates ( interim expectations for a full-year lifo benefit of $ 12 million changed instead to a full year expense of $ 4 million as steel costs increased late in the year ) and a concentration of lifo expense in the fourth quarter . for further discussion of inventories , see note a to the consolidated financial statements on page 74. interest and income taxes net interest expense in 2013 was flat with 2012. the 2013 worldwide effective income tax rate on our continuing operations was 22 % , compared to 19 % for 2012. in both years the tax rate reflects necessary tax reserve reductions and other tax benefits that lowered the overall rate . the 2013 tax rate includes $ 17 million of favorable adjustments primarily related to the impact of mexico tax law changes , the settlement of certain foreign and state tax audits , and a non-taxable bargain purchase gain . the impact of these items on the tax rate was magnified by our fourth quarter cvp impairment . in 2012 , the tax rate benefited from the release of a $ 38 million valuation allowance on certain canadian deferred tax assets , partially offset by the accrual of $ 11 million of china withholding taxes . 35 part ii segment results ( continuing operations ) in the following section we discuss 2013 sales and ebit from continuing operations for each of our segments . we provide additional detail about segment results and a reconciliation of segment ebit to consolidated ebit in note f to the consolidated financial statements on page 84. reported amounts for 2012 have been retrospectively adjusted to reflect only continuing operations . for further information about discontinued operations , see note b to the consolidated financial statements on page 77. replace_table_token_9_th ( 1 ) this is the change in sales not attributable to acquisitions or divestitures . these are sales that come from the same plants and facilities that we owned one year earlier . ( 2 ) segment margins are calculated on total sales . overall company margin is calculated on external sales . residential furnishings residential furnishings sales increased 3 % in 2013 from unit volume growth in certain product categories and raw material-related price increases in carpet underlay . volume grew primarily in european spring , seating components , sofa sleepers , and carpet underlay . these gains were partially offset by lower adjustable bed volume . within our u.s. spring business , we experienced unit volume growth in boxsprings and comfortcore ® ( which is our pocketed coil innerspring ) , however total domestic innerspring units decreased modestly . furniture hardware unit volume also decreased for the full year . ebit and ebit margins increased in 2013 , primarily due to higher sales , cost improvements , and favorable product mix in u.s. spring . 36 part ii commercial fixturing & components sales in commercial fixturing & components decreased 2 % in 2013 due to lower demand in the office seating market which negatively impacted our work furniture business . ebit and ebit margins decreased in 2013 , primarily from lower sales , unfavorable product mix , and weak performance by our chinese joint venture operation . industrial materials sales in the segment decreased 3 % in 2013 , with revenue from acquisitions more than offset by lower trade sales from our rod mill and steel-related price deflation . the decrease in trade sales of steel rod during the year was more than offset by an increase in intra-segment rod sales , and the rod mill continued to operate at full capacity . a change in the mix of rod sales from trade to intra-segment is generally positive to earnings since that change tends to also shift the production mix to higher-value high carbon rods . ebit and ebit margins improved versus 2012 , primarily due to the absence of acquisition-related costs at western pneumatic tube and earnings from acquisitions . these gains were partially offset by lower metal margins in steel rod in the second half of 2013. we expanded our aerospace products business unit in 2013 with the acquisition of two companies . the first was a u.k.-based business acquired in may that extended our capability in aerospace tube fabrication . we recorded $ 6 million of goodwill related to

