sales into the other markets category decreased over fiscal 2013 and 2014. the industries in this category focus on upgrading overall quality , improving product performance through increased efficiency , prolonging product life and lowering long-term costs . companies in these industries are looking to achieve these goals through the use of `` advanced materials `` which supports the increased use of high-performance alloys in an expanding number of applications . in addition to supporting and expanding the traditional businesses of oil and gas , flue-gas desulphurization in china , automotive and heat treating , the company expects increased levels of activity overall in non-traditional markets such as fuel cells and silicon feed-stock production applications . summary of capital spending the company is nearing completion of a $ 61.0 million investment at two of its u.s. manufacturing facilities . this includes a $ 37.0 million investment to expand by an estimated 60 % the tubular production capacity of specialty titanium and high-performance nickel alloy tubular products at the arcadia , louisiana facility . in addition , the company made an investment of $ 24.0 million to expand by an estimated 20 % its flat products capacity to produce specialty high-performance alloy flat products at the kokomo , indiana facility . both of these projects are in the commissioning stage and are expected to be released for production by the end of the first quarter of fiscal 2015. these capital investments in arcadia and kokomo are expected to improve the company 's ability to service its customers ' increasing demand for specialty products and also continue to improve product quality , improve operating efficiencies and enhance working capital management for all of the company 's products produced at these locations . the company is also implementing a global information technology system . this upgrade is expected to provide the company with an integrated global system , enhanced analysis capability and improved capabilities in capacity planning , inventory management and customer service . to date , the company has spent $ 10.7 million on the project and expects to spend approximately $ 1.8 million in fiscal 2015 for a total of approximately $ 12.5 million . the system is currently in use at the european service centers and has been implemented in the u.s. for general ledger , accounts payable and purchasing . the company 's domestic service center operations , u.s. shipping , order entry , accounts receivable and credit/collections is being implemented in the first quarter of fiscal 2015. the systems upgrade for the main manufacturing operating system is expected to be implemented during the second and third quarters of fiscal 2015. the company 's evaluation of its global service center and distribution continues . the evaluation has included an analysis of the equipment required , the number and geographic locations of these service centers , the services provided and the cost structure , with the objective of enhancing the distribution organization and service center capabilities . the company has entered into a definitive agreement to purchase the assets and operations of leveltek processing , llc located in laporte , indiana . these assets include coil processing capability with stretch leveling and cut-to-length capability . this transaction is expected to close in the second quarter of fiscal 2015. capital spending in fiscal 2014 was $ 39.7 million , and the forecast for capital spending in fiscal 2015 is approximately $ 22.0 million , excluding the above-mentioned acquisition of the leveltek assets . the $ 22.0 million of planned capital spending includes $ 5.0 million to complete the above-mentioned manufacturing expansions as well as the global it system . the remaining $ 17.0 million of planned 37 spending is earmarked for continued upgrades throughout our manufacturing facilities , and this level of spending is considered a maintenance level of spending . gross profit margin trend performance the following tables show net revenue , gross profit margin and gross profit margin percentage for fiscal 2013 and fiscal 2014. replace_table_token_11_th replace_table_token_12_th the gross margin in the fourth quarter of fiscal 2014 was $ 18.9 million or 15.8 % of net revenues , a sequential increase of $ 4.8 million from the $ 14.1 million or 11.1 % of net revenues in the third quarter of fiscal 2014. the margin compression that occurred over the course of fiscal 2013 and the first part of 2014 was primarily related to lower average selling prices resulting from price competition in the marketplace , lower volumes , and the impact of declining raw material prices in prior periods , resulting in higher-cost inventory charged to cost of sales . the margin compression was most pronounced in the first and second quarters of fiscal 2014 , but the pressure on margins began to lessen in the third and fourth quarters of fiscal 2014 due to strengthening of pricing along with an increase in volumes processed through the kokomo mill , which has resulted in improved absorption of fixed costs . gross margin recovery is expected to continue over the course of fiscal 2015 as pricing continues to strengthen and volumes continue to improve . volumes , competition and pricing business conditions appear to be improving . the company 's backlog increased 32.8 % during fiscal 2014. throughout the first quarter and a portion of the second quarter , the company experienced reduced demand and reduced selling prices due to the market price of nickel and increased price competition in the marketplace , particularly in commodity-type alloys . the intense competitive environment required the company to aggressively price orders across all markets , which unfavorably impacted the company 's gross profit margin and net income in those quarters . in addition , sales volumes below mill capacities in the industry reduced mill-direct lead times . the decline in mill-direct lead times , in turn , resulted in downward pressure on prices for service center transactional business , which typically commands a higher price due to faster product availability . story_separator_special_tag million pounds and $ 18.5 million of net revenues , which was not repeated in fiscal 2013. the other markets are project-oriented in general , and it is uncertain whether a similar project will repeat itself in the future . other revenue . other revenue was $ 10.6 million in fiscal 2013 , a decrease of 25.9 % from $ 14.3 million in fiscal 2012. the decrease in other revenue is primarily attributable to approximately $ 2.6 million of reduced conversion sales . cost of sales . cost of sales was $ 409.1 million , or 84.7 % of net revenues , in fiscal 2013 compared to $ 458.7 million , or 79.1 % of net revenues , in fiscal 2012. cost of sales in fiscal 2013 decreased by $ 49.6 million as compared to fiscal 2012 primarily due to lower volume . when volume decreases , the cost of sales as percentage of net revenues increases due to reduced absorption of manufacturing costs . gross profit . as a result of the above factors , gross margin was $ 73.6 million for fiscal 2013 , a decrease of $ 47.2 million from $ 120.8 million in fiscal 2012. gross margin as a percentage of net revenue decreased to 15.3 % in fiscal 2013 as compared to 20.9 % in fiscal 2012. items impacting the gross margin percentage compression include pricing competition , which we estimate impacted gross profit margin percentage by 3.1 points . the remaining 2.5 percentage point compression is the result of other factors , including higher-cost inventory in cost of sales relative to lower raw material market prices that drive the sales price and unfavorable absorption of fixed costs . selling , general and administrative expense . selling , general and administrative expense was $ 38.2 million for fiscal 2013 , a decrease of $ 2.5 million , or 6.1 % , from $ 40.7 million in fiscal 2012. selling , general and administrative expense reductions were primarily due to reduced costs for incentive compensation programs . selling , general and administrative expenses as a percentage of net revenues increased to 7.9 % for fiscal 2013 , compared to 7.0 % for fiscal 2012 due to decreased revenues . research and technical expense . research and technical expense was $ 3.5 million , or 0.7 % of revenue , for fiscal 2013 , an increase of $ 0.2 million , or 6.7 % , from $ 3.3 million , or 0.6 % of net revenues , in fiscal 2012. operating income . as a result of the above factors , operating income in fiscal 2013 was $ 32.0 million , compared to operating income of $ 77.0 million in fiscal 2012. income taxes . income tax expense was $ 10.4 million in fiscal 2013 , a decrease of $ 16.4 million from an expense of $ 26.8 million in fiscal 2012 , due primarily to lower pretax income generated in fiscal 2013. the effective tax rate for fiscal 2013 was 32.6 % , compared to 34.8 % in fiscal 2012. during fiscal 2013 , the 46 company 's effective tax rate was lower , primarily due to an increased proportion of taxable earnings in foreign jurisdictions with a lower tax rate and the reversal of certain tax reserves no longer required . net income . as a result of the above factors , net income in fiscal 2013 , was $ 21.6 million , a decrease of $ 28.6 million from net income of $ 50.2 million in fiscal 2012. story_separator_special_tag user-specified tagged table > replace_table_token_19_th ( 1 ) as of september 30 , 2014 , the revolver balance was zero , therefore no interest is due . however , the company is obligated to the bank for unused line fees and quarterly management fees . ( 2 ) the company has a funding obligation to contribute $ 67,752 to the domestic pension plan . these payments will be tax deductible . all benefit payments under the domestic pension plan will come from the plan and not the company . ( 3 ) represents expected other postretirement benefits based upon anticipated timing of payments . inflation or deflation while neither inflation nor deflation has had , nor does the company expect them to have , a material impact on operating results , there can be no assurance that the company 's business will not be affected by inflation or deflation in the future . historically , the company has had the ability to pass on to customers both increases in consumable costs and material costs because of the value-added contribution the material makes to the final product . raw material comprises the most significant portion of the product costs . nickel , cobalt and molybdenum , the primary raw materials used to manufacture the company 's products , all have experienced significant fluctuations in price . in the future , the company may not be able to successfully offset rapid increases in the price of nickel or other raw materials . in the event of raw material price declines , the company 's customers may delay order placement , resulting in lower volumes . in the event that raw material price increases occur that the company is unable to pass on to its customers , its cash flows or results of operations could be materially adversely affected . critical accounting policies and estimates overview management 's discussion and analysis of financial condition and results of operations discusses the company 's consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states of america . the preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . on an on-going basis

liquidity and capital resources comparative cash flow analysis during fiscal 2014 , the company 's primary sources of cash were cash on-hand and cash from operations , as detailed below . at september 30 , 2014 , the company had cash and cash equivalents of $ 45.9 million compared to cash and cash equivalents of $ 68.3 million at september 30 , 2013. as of september 30 , 2014 , the company had cash and cash equivalents of $ 9.1 million that was held by foreign subsidiaries in various currencies . all of this amount is readily convertible to u.s. dollars . net cash provided by operating activities was $ 26.9 million in fiscal 2014 compared to $ 73.4 million in fiscal 2013. net income of $ 3.8 million in fiscal 2014 was $ 17.8 million lower than the $ 21.6 million reported in fiscal 2013. cash used from higher inventories was $ 22.3 million as compared to fiscal 2013 cash generated of $ 31.5 million , a change of $ 53.8 million . additionally , cash generated from lower accounts receivable was $ 9.9 million compared to cash generated by accounts receivable of $ 18.6 million in fiscal 2013 , a change of $ 8.7 million . cash generated from accounts payable and accrued expenses of $ 15.7 million compared to cash used in accounts payable and accrued expenses of $ 12.2 million in fiscal 2013 , a change of $ 27.9 million . additionally , the cash used in accrued pension and postretirement benefits of $ 6.1 million was $ 14.1 million less than the cash used in accrued pension and postretirement benefits in fiscal 2013 of $ 20.2 million . this reduction of $ 14.1 million is primarily a result of the company 's evaluation of its alternatives for cash deployment in fiscal 2014. given the business conditions in fiscal 2014 , the company elected to minimize funding for a majority of the fiscal year because it had met its funding requirements for that time .


 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 comparative cash flow analysis during fiscal 2014 , the company 's primary sources of cash were cash on-hand and cash from operations , as detailed below . at september 30 , 2014 , the company had cash and cash equivalents of $ 45.9 million compared to cash and cash equivalents of $ 68.3 million at september 30 , 2013. as of september 30 , 2014 , the company had cash and cash equivalents of $ 9.1 million that was held by foreign subsidiaries in various currencies . all of this amount is readily convertible to u.s. dollars . net cash provided by operating activities was $ 26.9 million in fiscal 2014 compared to $ 73.4 million in fiscal 2013. net income of $ 3.8 million in fiscal 2014 was $ 17.8 million lower than the $ 21.6 million reported in fiscal 2013. cash used from higher inventories was $ 22.3 million as compared to fiscal 2013 cash generated of $ 31.5 million , a change of $ 53.8 million . additionally , cash generated from lower accounts receivable was $ 9.9 million compared to cash generated by accounts receivable of $ 18.6 million in fiscal 2013 , a change of $ 8.7 million . cash generated from accounts payable and accrued expenses of $ 15.7 million compared to cash used in accounts payable and accrued expenses of $ 12.2 million in fiscal 2013 , a change of $ 27.9 million . additionally , the cash used in accrued pension and postretirement benefits of $ 6.1 million was $ 14.1 million less than the cash used in accrued pension and postretirement benefits in fiscal 2013 of $ 20.2 million . this reduction of $ 14.1 million is primarily a result of the company 's evaluation of its alternatives for cash deployment in fiscal 2014. given the business conditions in fiscal 2014 , the company elected to minimize funding for a majority of the fiscal year because it had met its funding requirements for that time .
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 Suspicious Activity Report : sales into the other markets category decreased over fiscal 2013 and 2014. the industries in this category focus on upgrading overall quality , improving product performance through increased efficiency , prolonging product life and lowering long-term costs . companies in these industries are looking to achieve these goals through the use of `` advanced materials `` which supports the increased use of high-performance alloys in an expanding number of applications . in addition to supporting and expanding the traditional businesses of oil and gas , flue-gas desulphurization in china , automotive and heat treating , the company expects increased levels of activity overall in non-traditional markets such as fuel cells and silicon feed-stock production applications . summary of capital spending the company is nearing completion of a $ 61.0 million investment at two of its u.s. manufacturing facilities . this includes a $ 37.0 million investment to expand by an estimated 60 % the tubular production capacity of specialty titanium and high-performance nickel alloy tubular products at the arcadia , louisiana facility . in addition , the company made an investment of $ 24.0 million to expand by an estimated 20 % its flat products capacity to produce specialty high-performance alloy flat products at the kokomo , indiana facility . both of these projects are in the commissioning stage and are expected to be released for production by the end of the first quarter of fiscal 2015. these capital investments in arcadia and kokomo are expected to improve the company 's ability to service its customers ' increasing demand for specialty products and also continue to improve product quality , improve operating efficiencies and enhance working capital management for all of the company 's products produced at these locations . the company is also implementing a global information technology system . this upgrade is expected to provide the company with an integrated global system , enhanced analysis capability and improved capabilities in capacity planning , inventory management and customer service . to date , the company has spent $ 10.7 million on the project and expects to spend approximately $ 1.8 million in fiscal 2015 for a total of approximately $ 12.5 million . the system is currently in use at the european service centers and has been implemented in the u.s. for general ledger , accounts payable and purchasing . the company 's domestic service center operations , u.s. shipping , order entry , accounts receivable and credit/collections is being implemented in the first quarter of fiscal 2015. the systems upgrade for the main manufacturing operating system is expected to be implemented during the second and third quarters of fiscal 2015. the company 's evaluation of its global service center and distribution continues . the evaluation has included an analysis of the equipment required , the number and geographic locations of these service centers , the services provided and the cost structure , with the objective of enhancing the distribution organization and service center capabilities . the company has entered into a definitive agreement to purchase the assets and operations of leveltek processing , llc located in laporte , indiana . these assets include coil processing capability with stretch leveling and cut-to-length capability . this transaction is expected to close in the second quarter of fiscal 2015. capital spending in fiscal 2014 was $ 39.7 million , and the forecast for capital spending in fiscal 2015 is approximately $ 22.0 million , excluding the above-mentioned acquisition of the leveltek assets . the $ 22.0 million of planned capital spending includes $ 5.0 million to complete the above-mentioned manufacturing expansions as well as the global it system . the remaining $ 17.0 million of planned 37 spending is earmarked for continued upgrades throughout our manufacturing facilities , and this level of spending is considered a maintenance level of spending . gross profit margin trend performance the following tables show net revenue , gross profit margin and gross profit margin percentage for fiscal 2013 and fiscal 2014. replace_table_token_11_th replace_table_token_12_th the gross margin in the fourth quarter of fiscal 2014 was $ 18.9 million or 15.8 % of net revenues , a sequential increase of $ 4.8 million from the $ 14.1 million or 11.1 % of net revenues in the third quarter of fiscal 2014. the margin compression that occurred over the course of fiscal 2013 and the first part of 2014 was primarily related to lower average selling prices resulting from price competition in the marketplace , lower volumes , and the impact of declining raw material prices in prior periods , resulting in higher-cost inventory charged to cost of sales . the margin compression was most pronounced in the first and second quarters of fiscal 2014 , but the pressure on margins began to lessen in the third and fourth quarters of fiscal 2014 due to strengthening of pricing along with an increase in volumes processed through the kokomo mill , which has resulted in improved absorption of fixed costs . gross margin recovery is expected to continue over the course of fiscal 2015 as pricing continues to strengthen and volumes continue to improve . volumes , competition and pricing business conditions appear to be improving . the company 's backlog increased 32.8 % during fiscal 2014. throughout the first quarter and a portion of the second quarter , the company experienced reduced demand and reduced selling prices due to the market price of nickel and increased price competition in the marketplace , particularly in commodity-type alloys . the intense competitive environment required the company to aggressively price orders across all markets , which unfavorably impacted the company 's gross profit margin and net income in those quarters . in addition , sales volumes below mill capacities in the industry reduced mill-direct lead times . the decline in mill-direct lead times , in turn , resulted in downward pressure on prices for service center transactional business , which typically commands a higher price due to faster product availability . story_separator_special_tag million pounds and $ 18.5 million of net revenues , which was not repeated in fiscal 2013. the other markets are project-oriented in general , and it is uncertain whether a similar project will repeat itself in the future . other revenue . other revenue was $ 10.6 million in fiscal 2013 , a decrease of 25.9 % from $ 14.3 million in fiscal 2012. the decrease in other revenue is primarily attributable to approximately $ 2.6 million of reduced conversion sales . cost of sales . cost of sales was $ 409.1 million , or 84.7 % of net revenues , in fiscal 2013 compared to $ 458.7 million , or 79.1 % of net revenues , in fiscal 2012. cost of sales in fiscal 2013 decreased by $ 49.6 million as compared to fiscal 2012 primarily due to lower volume . when volume decreases , the cost of sales as percentage of net revenues increases due to reduced absorption of manufacturing costs . gross profit . as a result of the above factors , gross margin was $ 73.6 million for fiscal 2013 , a decrease of $ 47.2 million from $ 120.8 million in fiscal 2012. gross margin as a percentage of net revenue decreased to 15.3 % in fiscal 2013 as compared to 20.9 % in fiscal 2012. items impacting the gross margin percentage compression include pricing competition , which we estimate impacted gross profit margin percentage by 3.1 points . the remaining 2.5 percentage point compression is the result of other factors , including higher-cost inventory in cost of sales relative to lower raw material market prices that drive the sales price and unfavorable absorption of fixed costs . selling , general and administrative expense . selling , general and administrative expense was $ 38.2 million for fiscal 2013 , a decrease of $ 2.5 million , or 6.1 % , from $ 40.7 million in fiscal 2012. selling , general and administrative expense reductions were primarily due to reduced costs for incentive compensation programs . selling , general and administrative expenses as a percentage of net revenues increased to 7.9 % for fiscal 2013 , compared to 7.0 % for fiscal 2012 due to decreased revenues . research and technical expense . research and technical expense was $ 3.5 million , or 0.7 % of revenue , for fiscal 2013 , an increase of $ 0.2 million , or 6.7 % , from $ 3.3 million , or 0.6 % of net revenues , in fiscal 2012. operating income . as a result of the above factors , operating income in fiscal 2013 was $ 32.0 million , compared to operating income of $ 77.0 million in fiscal 2012. income taxes . income tax expense was $ 10.4 million in fiscal 2013 , a decrease of $ 16.4 million from an expense of $ 26.8 million in fiscal 2012 , due primarily to lower pretax income generated in fiscal 2013. the effective tax rate for fiscal 2013 was 32.6 % , compared to 34.8 % in fiscal 2012. during fiscal 2013 , the 46 company 's effective tax rate was lower , primarily due to an increased proportion of taxable earnings in foreign jurisdictions with a lower tax rate and the reversal of certain tax reserves no longer required . net income . as a result of the above factors , net income in fiscal 2013 , was $ 21.6 million , a decrease of $ 28.6 million from net income of $ 50.2 million in fiscal 2012. story_separator_special_tag user-specified tagged table > replace_table_token_19_th ( 1 ) as of september 30 , 2014 , the revolver balance was zero , therefore no interest is due . however , the company is obligated to the bank for unused line fees and quarterly management fees . ( 2 ) the company has a funding obligation to contribute $ 67,752 to the domestic pension plan . these payments will be tax deductible . all benefit payments under the domestic pension plan will come from the plan and not the company . ( 3 ) represents expected other postretirement benefits based upon anticipated timing of payments . inflation or deflation while neither inflation nor deflation has had , nor does the company expect them to have , a material impact on operating results , there can be no assurance that the company 's business will not be affected by inflation or deflation in the future . historically , the company has had the ability to pass on to customers both increases in consumable costs and material costs because of the value-added contribution the material makes to the final product . raw material comprises the most significant portion of the product costs . nickel , cobalt and molybdenum , the primary raw materials used to manufacture the company 's products , all have experienced significant fluctuations in price . in the future , the company may not be able to successfully offset rapid increases in the price of nickel or other raw materials . in the event of raw material price declines , the company 's customers may delay order placement , resulting in lower volumes . in the event that raw material price increases occur that the company is unable to pass on to its customers , its cash flows or results of operations could be materially adversely affected . critical accounting policies and estimates overview management 's discussion and analysis of financial condition and results of operations discusses the company 's consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states of america . the preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . on an on-going basis

