please refer to note 17 , `` segments `` to the notes to consolidated financial statements included elsewhere in this annual report on form 10-k for more information regarding the results for both the acute care and non-acute care segments . in the third quarter of 2012 , we entered into an agreement with our distributor in the united kingdom to purchase 15 % of its outstanding equity for approximately $ 0.9 million in cash to accelerate the adoption of medication and supply automation in the united kingdom . in connection with the investment , we have the right , under certain circumstances , to appoint a member to this company 's board of directors as well as certain other voting rights . as a result of these and other factors , we are accounting for this investment using the equity method . our proportionate equity share of the income of this distributor recognized in our financial statements for the year ended december 31 , 2012 was immaterial . we are working to develop relationships with major providers of hospital information management systems with the goal of enhancing the interoperability of our products with their systems . we believe that enhanced interoperability will help reduce implementation costs , time , and maintenance for shared clients , while providing new clinical workflows designed to enhance efficiency and patient safety . our revenue increased by 27.9 % to $ 314.0 million in the twelve month period ended december 31 , 2012 from $ 245.5 million for the year ended december 31 , 2011 . of the $ 68.5 million increase in revenues from 2011 to 2012 , $ 61.8 million was attributable to an increase in product revenues for 2012 as compared with 2011 , reflecting increased completed installations of 35 our new automation products , increases in lease renewals from existing customers , and revenue derived from our acquisition of mts , during the second quarter of 2012 , which comprises the predominant portion of our non-acute care segment . service revenues increased by $ 6.7 million in 2012 as compared with 2011 , primarily due to growth in the installed customer base . for the year ended december 31 , 2012 , our acute care segment contributed $ 197.4 million and $ 62.8 million in product and service revenue , respectively . this compares to product and service revenue of $ 185.9 million and $ 59.7 million for the acute care segment in 2011. for the year ended december 31 , 2012 , the non-acute care segment contributed $ 50.3 million and $ 3.6 million in product and service revenue , respectively . non-acute care revenues were not significant for the year ended december 31 , 2011 and , accordingly , have been included in the acute care segment for that period . we believe that demand for our products in future periods will be based on : our expectation that the overall market demand for healthcare services will increase as the population grows , life expectancies continue to increase , the quality of healthcare services increases and the availability of healthcare services increases ; our expectation that the environment of increased patient safety awareness , increased regulatory control and increased need for workflow efficiency through the adoption of technology in the healthcare industry will make our solutions a priority in the capital budgets of healthcare facilities ; our continued ability to differentiate ourselves through a strategy intended to provide the best customer experience in the healthcare industry ; and our delivery of industry-leading products with differentiated product features that are designed to appeal to nurses , pharmacists , supply chain managers , chief information officers and hospital management . our product backlog , consisting of orders accepted but not yet installed , increased $ 21 million , to $ 155 million at december 31 , 2012 from $ 134 million as of december 31 , 2011 . this backlog is primarily attributable to our acute care segment . we expect to operate through 2013 with our backlog within our objective of the next six to nine months , but we believe there will be variation from time to time . we expect non-acute care product backlog to be minimal . our key business strategies include : further penetrating the existing market for our products through sustaining technological leadership in our products by : consistently innovating our product and service offerings ; and maintaining our flexibility in customer product design and in the installation process . increasing penetration of the international market by : bringing new products and technologies to market that are specific to international markets ; building direct sales , distribution or other capabilities when and where it is appropriate ; partnering with companies that have sales , distribution , or other capabilities that we do not possess in non-u.s. geographies ; and increasing customer awareness of safety issues in the administration of medications . expanding our product offering through acquisitions and partnerships . our healthcare customers expect a high degree of partnership involvement from their technology suppliers . we provide extensive installation planning and consulting as part of every product sale . our customers ' medication control systems are mission critical to their success and our customers require these systems to be functional at all times . to help assure the maximum availability of our systems , our customers typically purchase maintenance and support contracts in one , two or five year increments . our long-term liabilities include long-term deferred service revenue of $ 19.9 million as of december 31 , 2012 , and $ 19.0 million as of december 31 , 2011 . our deferred service revenue will be amortized to service revenue as the service contracts are executed . in 2012 , our overall cash flow decreased $ 129.4 million . story_separator_special_tag in addition , the provisions of asc 350-20 , require that an entity assign its recorded goodwill to each of its reporting units and test each reporting unit 's goodwill for impairment at least annually or earlier in circumstances whereby certain events might trigger a decrease in the carrying value of goodwill . we complete our annual goodwill impairment assessment as of the first day of our fourth quarter . in 39 accordance with asc 350-20 , we have the option to assess qualitative factors to determine whether it is more likely than not ( that is , a likelihood of more than 50 % ) that the fair value of a reporting unit is less than its carrying amount , including goodwill , or bypass the qualitative assessment and proceed directly to performing the goodwill impairment test . we have elected to perform a qualitative assessment to determine whether it more likely than not that the fair value of each reporting unit is less than its carrying amount . for both our reporting units , the acute care and non-acute care segments , we considered the following qualitative factors when assessing if goodwill had been impaired for the year ended december 31 , 2012 : macroeconomic conditions such as a deterioration in general economic conditions , limitations on accessing capital , fluctuations in foreign exchange rates or other developments in equity and credit markets ; industry and market considerations such as a deterioration in the environment in which we operate , an increased competitive environment , a decline in market-dependent multiples or metrics ( consider in both absolute terms and relative to peers ) , a change in the market for our products or services , or a regulatory or political development ; cost factors such as increases in raw materials , labor , or other costs that have a negative effect on earnings and cash flows ; overall financial performance such as negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods ; other relevant entity-specific events such as changes in management , key personnel , strategy , or customers ; contemplation of bankruptcy or litigation ; and events affecting a reporting unit such as a change in the composition or carrying amount of its net assets , a more-likely-than-not expectation of selling or disposing all , or a portion , of a reporting unit , the testing for recoverability of a significant asset group within a reporting unit or recognition of a goodwill impairment loss in the financial statements of a subsidiary that is a component of a reporting unit . upon completion of our qualitative assessment conducted in the fourth quarter of 2012 , we concluded that it was more likely than not the fair values of both the acute care and non-acute care segments exceeded their carrying values including the respective amounts of goodwill . in addition , we did not note any other indicators of goodwill impairment as of december 31 , 2012 . we continually monitor events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable . we review long-lived assets and certain purchased intangibles for impairment whenever events or changes in circumstances indicate that we will not be able to recover the asset 's carrying amount . recoverability of an asset is measured by comparing its carrying amount to the expected future undiscounted cash flows expected to result from the use and eventual disposition of that asset , excluding future interest costs that would be recognized as an expense when incurred . any impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair market value . significant management judgment is required in : identifying a triggering event that arises from a change in circumstances ; forecasting future operating results ; and estimating the proceeds from the disposition of long-lived or intangible assets . in future periods , material impairment charges could be necessary should different conditions prevail or different judgments be made . significant management judgment is also required for initial recognition and measurement of goodwill and other intangibles assets resulting from business combinations pursuant asc 805 , business combinations . management must assess the extent to which identified other intangibles assets are properly includable ( and with the appropriate fair value ) or properly excludable , by applying the recognition criteria . this judgment affects not only the other intangible assets but the remainder calculation of goodwill . the assessment of useful life for each acquired intangible asset impacts future financial position and operating performance through amortization expense . inventory . inventories are stated at the lower of cost ( utilizing standard costs ) , applying the first-in , first-out method , or market . we routinely assess our on-hand inventory for timely identification and measurement of obsolete , slow-moving or otherwise impaired inventory . we write down inventory for estimated obsolescence , excess or unmarketable quantities equal to the difference between the cost of the inventory and its estimated market value based on assumptions about 40 future demand and market conditions . if actual future demand or market conditions are less favorable than we projected , additional inventory write-downs may be required . valuation of share-based awards . we account for share-based compensation in accordance with asc 718 , stock compensation . we estimate the fair value of our employee stock awards at the date of grant using certain subjective assumptions , such as expected volatility , which is based on a combination of historical and market-based implied volatility , and the expected term of the awards , which is based on our historical experience of employee stock option exercises , including forfeitures . the valuation assumptions we use in estimating the fair value of employee share-based awards may change in future periods . we recognize the fair

net cash provided by operating activities . net cash provided by operating activities increased by $ 8.2 million in 2012 to $ 39.5 million from $ 31.2 million in 2011. the major drivers increasing operating cash flow were $ 5.8 million higher net income and a reduction of inventory of $ 12.0 million , as well as increases in accrued compensation of $ 4.7 million , deferred gross profit of $ 4.1 million and accounts payable of $ 4.0 million , between 2012 and 2011. partially offsetting these increases in sources of operating cash flows were a net increase of $ 6.4 million in prepaid expenses and the increase of $ 5.2 million in sales type leases . net cash used in investing activities . net cash used in investing activities increased by $ 155.6 million in 2012 to $ 168.7 million from $ 13.1 million in 2011. this increase was primarily driven by $ 158.3 million of cash paid to complete the 2012 acquisition of mts in the second quarter of 2012. net cash used in financing activities . net cash used in financing activities decreased by $ 1.6 million in 2012 to $ 0.2 million net cash used compared to net cash used by financing activities of $ 1.8 million in 2011. stock repurchases decreased by $ 0.2 million to $ 12.4 million in 2012 from $ 12.6 million in 2011. in 2012 cash generated from shares issued under stock option and employee stock purchase plans increased by $ 2.2 million to $ 8.9 million from $ 6.8 million in 2011 , offset by a decrease of $ 0.7 million in excess tax benefits from employee stock plans to $ 3.2 million in 2012 from $ 3.9 million in 2011 . 2011 compared to 2010 net cash provided by operating activities . net cash provided by operating activities increased by $ 10.6 million in 2011 to $ 31.2 million from $ 20.6 million in 2010. the major drivers increasing operating cash flow were higher net income of $ 5.5 million higher net income and $ 7.2 million greater cash from accounts receivable .


 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.
     ```net cash provided by operating activities . net cash provided by operating activities increased by $ 8.2 million in 2012 to $ 39.5 million from $ 31.2 million in 2011. the major drivers increasing operating cash flow were $ 5.8 million higher net income and a reduction of inventory of $ 12.0 million , as well as increases in accrued compensation of $ 4.7 million , deferred gross profit of $ 4.1 million and accounts payable of $ 4.0 million , between 2012 and 2011. partially offsetting these increases in sources of operating cash flows were a net increase of $ 6.4 million in prepaid expenses and the increase of $ 5.2 million in sales type leases . net cash used in investing activities . net cash used in investing activities increased by $ 155.6 million in 2012 to $ 168.7 million from $ 13.1 million in 2011. this increase was primarily driven by $ 158.3 million of cash paid to complete the 2012 acquisition of mts in the second quarter of 2012. net cash used in financing activities . net cash used in financing activities decreased by $ 1.6 million in 2012 to $ 0.2 million net cash used compared to net cash used by financing activities of $ 1.8 million in 2011. stock repurchases decreased by $ 0.2 million to $ 12.4 million in 2012 from $ 12.6 million in 2011. in 2012 cash generated from shares issued under stock option and employee stock purchase plans increased by $ 2.2 million to $ 8.9 million from $ 6.8 million in 2011 , offset by a decrease of $ 0.7 million in excess tax benefits from employee stock plans to $ 3.2 million in 2012 from $ 3.9 million in 2011 . 2011 compared to 2010 net cash provided by operating activities . net cash provided by operating activities increased by $ 10.6 million in 2011 to $ 31.2 million from $ 20.6 million in 2010. the major drivers increasing operating cash flow were higher net income of $ 5.5 million higher net income and $ 7.2 million greater cash from accounts receivable .
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 Suspicious Activity Report : please refer to note 17 , `` segments `` to the notes to consolidated financial statements included elsewhere in this annual report on form 10-k for more information regarding the results for both the acute care and non-acute care segments . in the third quarter of 2012 , we entered into an agreement with our distributor in the united kingdom to purchase 15 % of its outstanding equity for approximately $ 0.9 million in cash to accelerate the adoption of medication and supply automation in the united kingdom . in connection with the investment , we have the right , under certain circumstances , to appoint a member to this company 's board of directors as well as certain other voting rights . as a result of these and other factors , we are accounting for this investment using the equity method . our proportionate equity share of the income of this distributor recognized in our financial statements for the year ended december 31 , 2012 was immaterial . we are working to develop relationships with major providers of hospital information management systems with the goal of enhancing the interoperability of our products with their systems . we believe that enhanced interoperability will help reduce implementation costs , time , and maintenance for shared clients , while providing new clinical workflows designed to enhance efficiency and patient safety . our revenue increased by 27.9 % to $ 314.0 million in the twelve month period ended december 31 , 2012 from $ 245.5 million for the year ended december 31 , 2011 . of the $ 68.5 million increase in revenues from 2011 to 2012 , $ 61.8 million was attributable to an increase in product revenues for 2012 as compared with 2011 , reflecting increased completed installations of 35 our new automation products , increases in lease renewals from existing customers , and revenue derived from our acquisition of mts , during the second quarter of 2012 , which comprises the predominant portion of our non-acute care segment . service revenues increased by $ 6.7 million in 2012 as compared with 2011 , primarily due to growth in the installed customer base . for the year ended december 31 , 2012 , our acute care segment contributed $ 197.4 million and $ 62.8 million in product and service revenue , respectively . this compares to product and service revenue of $ 185.9 million and $ 59.7 million for the acute care segment in 2011. for the year ended december 31 , 2012 , the non-acute care segment contributed $ 50.3 million and $ 3.6 million in product and service revenue , respectively . non-acute care revenues were not significant for the year ended december 31 , 2011 and , accordingly , have been included in the acute care segment for that period . we believe that demand for our products in future periods will be based on : our expectation that the overall market demand for healthcare services will increase as the population grows , life expectancies continue to increase , the quality of healthcare services increases and the availability of healthcare services increases ; our expectation that the environment of increased patient safety awareness , increased regulatory control and increased need for workflow efficiency through the adoption of technology in the healthcare industry will make our solutions a priority in the capital budgets of healthcare facilities ; our continued ability to differentiate ourselves through a strategy intended to provide the best customer experience in the healthcare industry ; and our delivery of industry-leading products with differentiated product features that are designed to appeal to nurses , pharmacists , supply chain managers , chief information officers and hospital management . our product backlog , consisting of orders accepted but not yet installed , increased $ 21 million , to $ 155 million at december 31 , 2012 from $ 134 million as of december 31 , 2011 . this backlog is primarily attributable to our acute care segment . we expect to operate through 2013 with our backlog within our objective of the next six to nine months , but we believe there will be variation from time to time . we expect non-acute care product backlog to be minimal . our key business strategies include : further penetrating the existing market for our products through sustaining technological leadership in our products by : consistently innovating our product and service offerings ; and maintaining our flexibility in customer product design and in the installation process . increasing penetration of the international market by : bringing new products and technologies to market that are specific to international markets ; building direct sales , distribution or other capabilities when and where it is appropriate ; partnering with companies that have sales , distribution , or other capabilities that we do not possess in non-u.s. geographies ; and increasing customer awareness of safety issues in the administration of medications . expanding our product offering through acquisitions and partnerships . our healthcare customers expect a high degree of partnership involvement from their technology suppliers . we provide extensive installation planning and consulting as part of every product sale . our customers ' medication control systems are mission critical to their success and our customers require these systems to be functional at all times . to help assure the maximum availability of our systems , our customers typically purchase maintenance and support contracts in one , two or five year increments . our long-term liabilities include long-term deferred service revenue of $ 19.9 million as of december 31 , 2012 , and $ 19.0 million as of december 31 , 2011 . our deferred service revenue will be amortized to service revenue as the service contracts are executed . in 2012 , our overall cash flow decreased $ 129.4 million . story_separator_special_tag in addition , the provisions of asc 350-20 , require that an entity assign its recorded goodwill to each of its reporting units and test each reporting unit 's goodwill for impairment at least annually or earlier in circumstances whereby certain events might trigger a decrease in the carrying value of goodwill . we complete our annual goodwill impairment assessment as of the first day of our fourth quarter . in 39 accordance with asc 350-20 , we have the option to assess qualitative factors to determine whether it is more likely than not ( that is , a likelihood of more than 50 % ) that the fair value of a reporting unit is less than its carrying amount , including goodwill , or bypass the qualitative assessment and proceed directly to performing the goodwill impairment test . we have elected to perform a qualitative assessment to determine whether it more likely than not that the fair value of each reporting unit is less than its carrying amount . for both our reporting units , the acute care and non-acute care segments , we considered the following qualitative factors when assessing if goodwill had been impaired for the year ended december 31 , 2012 : macroeconomic conditions such as a deterioration in general economic conditions , limitations on accessing capital , fluctuations in foreign exchange rates or other developments in equity and credit markets ; industry and market considerations such as a deterioration in the environment in which we operate , an increased competitive environment , a decline in market-dependent multiples or metrics ( consider in both absolute terms and relative to peers ) , a change in the market for our products or services , or a regulatory or political development ; cost factors such as increases in raw materials , labor , or other costs that have a negative effect on earnings and cash flows ; overall financial performance such as negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods ; other relevant entity-specific events such as changes in management , key personnel , strategy , or customers ; contemplation of bankruptcy or litigation ; and events affecting a reporting unit such as a change in the composition or carrying amount of its net assets , a more-likely-than-not expectation of selling or disposing all , or a portion , of a reporting unit , the testing for recoverability of a significant asset group within a reporting unit or recognition of a goodwill impairment loss in the financial statements of a subsidiary that is a component of a reporting unit . upon completion of our qualitative assessment conducted in the fourth quarter of 2012 , we concluded that it was more likely than not the fair values of both the acute care and non-acute care segments exceeded their carrying values including the respective amounts of goodwill . in addition , we did not note any other indicators of goodwill impairment as of december 31 , 2012 . we continually monitor events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable . we review long-lived assets and certain purchased intangibles for impairment whenever events or changes in circumstances indicate that we will not be able to recover the asset 's carrying amount . recoverability of an asset is measured by comparing its carrying amount to the expected future undiscounted cash flows expected to result from the use and eventual disposition of that asset , excluding future interest costs that would be recognized as an expense when incurred . any impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair market value . significant management judgment is required in : identifying a triggering event that arises from a change in circumstances ; forecasting future operating results ; and estimating the proceeds from the disposition of long-lived or intangible assets . in future periods , material impairment charges could be necessary should different conditions prevail or different judgments be made . significant management judgment is also required for initial recognition and measurement of goodwill and other intangibles assets resulting from business combinations pursuant asc 805 , business combinations . management must assess the extent to which identified other intangibles assets are properly includable ( and with the appropriate fair value ) or properly excludable , by applying the recognition criteria . this judgment affects not only the other intangible assets but the remainder calculation of goodwill . the assessment of useful life for each acquired intangible asset impacts future financial position and operating performance through amortization expense . inventory . inventories are stated at the lower of cost ( utilizing standard costs ) , applying the first-in , first-out method , or market . we routinely assess our on-hand inventory for timely identification and measurement of obsolete , slow-moving or otherwise impaired inventory . we write down inventory for estimated obsolescence , excess or unmarketable quantities equal to the difference between the cost of the inventory and its estimated market value based on assumptions about 40 future demand and market conditions . if actual future demand or market conditions are less favorable than we projected , additional inventory write-downs may be required . valuation of share-based awards . we account for share-based compensation in accordance with asc 718 , stock compensation . we estimate the fair value of our employee stock awards at the date of grant using certain subjective assumptions , such as expected volatility , which is based on a combination of historical and market-based implied volatility , and the expected term of the awards , which is based on our historical experience of employee stock option exercises , including forfeitures . the valuation assumptions we use in estimating the fair value of employee share-based awards may change in future periods . we recognize the fair

