consistent with industry practices , we require payment from most customers within 30 days of the invoice date . we have an estimation procedure , based on historical data , current economic conditions and recent changes in the aging of the receivables , which we use to record reserves throughout the year . in the last five years , write-offs against our allowance for doubtful accounts have averaged $ 0.1 million per year . a 20 % change in our estimate at december 31 , 2011 would have resulted in a change in income before income taxes of less than $ 0.1 million . 15 reserve for returns and allowances we estimate the gross profit impact of returns and allowances for previously recorded sales . this reserve is calculated on historical and statistical returns and allowances data and adjusted as trends in the variables change . a 20 % change in our estimate at december 31 , 2011 would have resulted in a change in income before income taxes of $ 0.1 million . inventories inventories are valued at the lower of cost , using the average cost method , or market . we continually monitor our inventory levels at each of our distribution centers . our reserve for inventory obsolescence is based on the age of the inventory , movements of our inventory over the prior twelve months and the experience of our purchasing and sales departments in estimating demand for the product in the succeeding year . our inventories are generally not susceptible to technological obsolescence . a 20 % change in our estimate at december 31 , 2011 would have resulted in a change in income before income taxes of $ 0.6 million . intangible assets the company 's intangible assets , excluding goodwill , represent purchased trade names , customer relationships , and non-compete agreements . trade names are not being amortized and are treated as indefinite lived assets . trade names are tested for recoverability on an annual basis in october of each year . this test was performed in october 2011 and no impairment was deemed necessary . the company assigns useful lives to its intangible assets based on the periods over which it expects the assets to contribute directly or indirectly to the future cash flows of the company . customer relationships are amortized over 6 or 7 year useful lives and non-compete agreements are amortized over a 1 year useful life . if events or circumstances were to indicate that any of the company 's definite-lived intangible assets might be impaired , the company would assess recoverability based on the estimated undiscounted future cash flows to be generated from the applicable intangible asset . vendor rebates many of our arrangements with our vendors entitle us to receive a rebate of a specified amount when we achieve any of a number of measures , generally related to the volume of purchases from the vendor . we account for such rebates as a reduction of the prices of the vendor 's products and therefore as a reduction of inventory until we sell the product , at which time such rebates reduce cost of sales . throughout the year , we estimate the amount of the rebates earned based on purchases to date relative to the total purchase levels expected to be achieved during the rebate period . we continually revise these estimates to reflect rebates expected to be earned based on actual purchase levels and forecasted purchase volumes for the remainder of the rebate period . a 20 % change in our estimate of total rebates earned during 2011 would have resulted in a change in income before income taxes of $ 1.5 million for the year ended december 31 , 2011. goodwill goodwill represents the excess of the amount we paid to acquire businesses over the estimated fair value of tangible assets and identifiable intangible assets acquired , less liabilities assumed . at december 31 , 2011 , our goodwill balance was $ 25.1 million , representing 14.0 % of our total assets . we test goodwill for impairment annually , or more frequently if indications of possible impairment exist , by applying a fair value-based test . our goodwill impairment test is performed annually in october . based on our 2011 goodwill impairment test , we believe the goodwill on our balance sheet is not impaired . if circumstances change or events occur to indicate that our fair market value has fallen below book value , we will compare the estimated fair value of the goodwill to its carrying value . if the carrying value of goodwill exceeds the estimated fair value of goodwill , we will recognize the difference as an impairment loss in operating income . the company is anticipating significant growth in the recently acquired businesses and if this growth is not achieved , a goodwill impairment may result . sales we generate most of our sales by providing wire and cable and related hardware to our customers , as well as billing for freight charges . we recognize revenue upon shipment of our products to customers from our distribution centers or directly from our suppliers . sales incentives earned by customers are accrued in the same month as the shipment is invoiced and are accounted for as a reduction in sales . 16 cost of sales cost of sales consists primarily of the average cost of the wire and cable and related hardware that we sell . we also incur shipping and handling costs in the normal course of business . cost of sales also reflects cash discounts for prompt payment to vendors and vendor rebates generally related to annual purchase targets , as well as inventory obsolescence charges . operating expenses operating expenses include all expenses , excluding freight , incurred to receive , sell and ship product and administer the operations of the company . salaries and commissions . story_separator_special_tag we believe that we will have adequate availability of capital to fund our present operations , meet our commitments on our existing debt , continue the stock repurchase program , continue to fund our dividend payments , and fund anticipated growth over the next twelve months , including expansion in existing and targeted market areas . we continually seek potential acquisitions and from time to time hold discussions with acquisition candidates . if further suitable acquisition opportunities or working capital needs arise that would require additional financing , we believe that our financial position and earnings history provide a solid base for obtaining additional financing resources at competitive rates and terms . additionally , based on market conditions , we may decide to issue additional shares of common or preferred stock to raise funds . 22 loan and security agreement on september 30 , 2011 , we entered into a third amended and restated loan and security agreement ( the “ 2011 loan agreement ” ) with certain lenders and bank of america , n.a . , as agent . the 2011 loan agreement provides for a $ 100 million revolving credit facility and expires on september 30 , 2016. availability under the 2011 loan agreement is limited to a borrowing base equal to 85 % of the value of eligible accounts receivable , plus 65 % of the value of eligible inventory , less certain reserves . the 2011 loan agreement is secured by a lien on substantially all our property , other than real estate . portions of the loan under the 2011 loan agreement may be converted to libor loans in minimum amounts of $ 1.0 million and integral multiples of $ 0.1 million . libor loans bear interest at the british bankers association libor rate plus 125 to 200 basis points based on availability , and loans not converted to libor loans bear interest at a fluctuating rate equal to the greatest of the agent 's prime rate , the federal funds rate plus 50 basis points , or 30-day libor plus 150 basis points . additionally , we are obligated to pay an unused facility fee on the unused portion of the loan commitment . unused commitment fees are 25 or 30 basis points , depending on the amount of the unused commitment . covenants in the 2011 loan agreement require us to maintain certain minimum financial ratios and availability levels . repaid amounts can be re-borrowed subject to the borrowing base . as of december 31 , 2011 , we were in compliance with all financial covenants . contractual obligations the following table describes our cash commitments to settle contractual obligations as of december 31 , 2011. replace_table_token_12_th ( 1 ) these obligations reflect purchase orders outstanding with manufacturers as of december 31 , 2011. we believe that some of these obligations may be cancellable upon negotiation with our vendors , but we are treating these as non-cancellable for this disclosure due to the absence of an express cancellation right . capital expenditures we made capital expenditures of $ 1.3 million in the year ended december 31 , 2011 and $ 0.5 million in each of the years ended december 31 , 2010 and 2009. off-balance sheet arrangements we have no off-balance sheet arrangements , other than operating leases . share repurchase program in 2007 , the board of directors approved a stock repurchase program , where the company is authorized to purchase up to $ 75 million of its outstanding shares of common stock , depending on market conditions , trading activity , business conditions and other factors . the program was scheduled to expire on december 31 , 2009 but was initially extended through december 31 , 2011 and on november 4 , 2011 was further extended through december 31 , 2012. shares of stock purchased under the program are currently being held as treasury stock and may be issued upon the exercise of options , as restricted stock , to fund acquisitions , or for other uses as authorized by the board of directors . there were no shares repurchased during 2011 and 2010 under the stock repurchase program . 23 financial derivatives we have no financial derivatives . market risk management we are exposed to market risks arising from changes in market prices , including movements in interest rates and commodity prices . interest rate risk borrowings under our 2011 loan agreement bear interest at variable interest rates and therefore are sensitive to changes in the general level of interest rates . at december 31 , 2011 , the weighted average interest rate on our $ 48.0 million of variable interest debt was approximately 2.29 % . while our variable rate debt obligations expose us to the risk of rising interest rates , management does not believe that the potential exposure is material to our overall financial performance or results of operations . based on december 31 , 2011 borrowing levels , a 1.0 % increase or decrease in the applicable interest rates would have a $ 0.5 million effect on our annual interest expense . commodity risk we are subject to periodic fluctuations in copper prices , as our products have varying levels of copper content in their construction . in addition , varying steel prices also impact certain products we purchase . profitability is influenced by these fluctuations as prices change between the time we buy and sell our products . foreign currency exchange rate risk our products are purchased and invoiced in u.s. dollars . accordingly , we do not believe we are exposed to foreign exchange rate risk . climate risk our operations are subject to inclement weather conditions including hurricanes , earthquakes and abnormal weather events . our previous experience from these events has had a minimal effect on our operations and results . factors affecting future results this annual report on form 10-k contains statements that may be considered forward-looking . these statements can

liquidity and capital resources our primary capital needs are for working capital obligations , capital expenditures , dividend payments and other general corporate purposes , including acquisitions and the stock repurchase program . our primary sources of working capital are cash from operations supplemented by bank borrowings . liquidity is defined as the ability to generate adequate amounts of cash to meet the current need for cash . we assess our liquidity in terms of our ability to generate cash to fund our operating activities . significant factors which could affect liquidity include the following : · the adequacy of available bank lines of credit ; · the ability to attract long-term capital with satisfactory terms ; · cash flows generated from operating activities ; · capital expenditures ; · payment of dividends ; · acquisitions ; and · additional stock repurchases 21 comparison of years ended december 31 , 2011 and 2010 our net cash provided by operating activities was $ 14.3 million in 2011 compared to $ 19.3 million in 2010. our net income increased by $ 11.1 million or 128.3 % to $ 19.7 in 2011 million from $ 8.6 million in 2010. changes in our operating assets and liabilities resulted in cash used in operating activities of $ 8.8 million in 2011. trade accounts payable decreased $ 9.9 million primarily due to payment in early 2011 of $ 4.9 million of vendor invoices under dispute at december 31 , 2010 and a plannedslow down of inventory purchases for our legacy business in december 2011. inventory increased $ 2.8 million as a result of the acquired businesses .


 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 our primary capital needs are for working capital obligations , capital expenditures , dividend payments and other general corporate purposes , including acquisitions and the stock repurchase program . our primary sources of working capital are cash from operations supplemented by bank borrowings . liquidity is defined as the ability to generate adequate amounts of cash to meet the current need for cash . we assess our liquidity in terms of our ability to generate cash to fund our operating activities . significant factors which could affect liquidity include the following : · the adequacy of available bank lines of credit ; · the ability to attract long-term capital with satisfactory terms ; · cash flows generated from operating activities ; · capital expenditures ; · payment of dividends ; · acquisitions ; and · additional stock repurchases 21 comparison of years ended december 31 , 2011 and 2010 our net cash provided by operating activities was $ 14.3 million in 2011 compared to $ 19.3 million in 2010. our net income increased by $ 11.1 million or 128.3 % to $ 19.7 in 2011 million from $ 8.6 million in 2010. changes in our operating assets and liabilities resulted in cash used in operating activities of $ 8.8 million in 2011. trade accounts payable decreased $ 9.9 million primarily due to payment in early 2011 of $ 4.9 million of vendor invoices under dispute at december 31 , 2010 and a plannedslow down of inventory purchases for our legacy business in december 2011. inventory increased $ 2.8 million as a result of the acquired businesses .
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 Suspicious Activity Report : consistent with industry practices , we require payment from most customers within 30 days of the invoice date . we have an estimation procedure , based on historical data , current economic conditions and recent changes in the aging of the receivables , which we use to record reserves throughout the year . in the last five years , write-offs against our allowance for doubtful accounts have averaged $ 0.1 million per year . a 20 % change in our estimate at december 31 , 2011 would have resulted in a change in income before income taxes of less than $ 0.1 million . 15 reserve for returns and allowances we estimate the gross profit impact of returns and allowances for previously recorded sales . this reserve is calculated on historical and statistical returns and allowances data and adjusted as trends in the variables change . a 20 % change in our estimate at december 31 , 2011 would have resulted in a change in income before income taxes of $ 0.1 million . inventories inventories are valued at the lower of cost , using the average cost method , or market . we continually monitor our inventory levels at each of our distribution centers . our reserve for inventory obsolescence is based on the age of the inventory , movements of our inventory over the prior twelve months and the experience of our purchasing and sales departments in estimating demand for the product in the succeeding year . our inventories are generally not susceptible to technological obsolescence . a 20 % change in our estimate at december 31 , 2011 would have resulted in a change in income before income taxes of $ 0.6 million . intangible assets the company 's intangible assets , excluding goodwill , represent purchased trade names , customer relationships , and non-compete agreements . trade names are not being amortized and are treated as indefinite lived assets . trade names are tested for recoverability on an annual basis in october of each year . this test was performed in october 2011 and no impairment was deemed necessary . the company assigns useful lives to its intangible assets based on the periods over which it expects the assets to contribute directly or indirectly to the future cash flows of the company . customer relationships are amortized over 6 or 7 year useful lives and non-compete agreements are amortized over a 1 year useful life . if events or circumstances were to indicate that any of the company 's definite-lived intangible assets might be impaired , the company would assess recoverability based on the estimated undiscounted future cash flows to be generated from the applicable intangible asset . vendor rebates many of our arrangements with our vendors entitle us to receive a rebate of a specified amount when we achieve any of a number of measures , generally related to the volume of purchases from the vendor . we account for such rebates as a reduction of the prices of the vendor 's products and therefore as a reduction of inventory until we sell the product , at which time such rebates reduce cost of sales . throughout the year , we estimate the amount of the rebates earned based on purchases to date relative to the total purchase levels expected to be achieved during the rebate period . we continually revise these estimates to reflect rebates expected to be earned based on actual purchase levels and forecasted purchase volumes for the remainder of the rebate period . a 20 % change in our estimate of total rebates earned during 2011 would have resulted in a change in income before income taxes of $ 1.5 million for the year ended december 31 , 2011. goodwill goodwill represents the excess of the amount we paid to acquire businesses over the estimated fair value of tangible assets and identifiable intangible assets acquired , less liabilities assumed . at december 31 , 2011 , our goodwill balance was $ 25.1 million , representing 14.0 % of our total assets . we test goodwill for impairment annually , or more frequently if indications of possible impairment exist , by applying a fair value-based test . our goodwill impairment test is performed annually in october . based on our 2011 goodwill impairment test , we believe the goodwill on our balance sheet is not impaired . if circumstances change or events occur to indicate that our fair market value has fallen below book value , we will compare the estimated fair value of the goodwill to its carrying value . if the carrying value of goodwill exceeds the estimated fair value of goodwill , we will recognize the difference as an impairment loss in operating income . the company is anticipating significant growth in the recently acquired businesses and if this growth is not achieved , a goodwill impairment may result . sales we generate most of our sales by providing wire and cable and related hardware to our customers , as well as billing for freight charges . we recognize revenue upon shipment of our products to customers from our distribution centers or directly from our suppliers . sales incentives earned by customers are accrued in the same month as the shipment is invoiced and are accounted for as a reduction in sales . 16 cost of sales cost of sales consists primarily of the average cost of the wire and cable and related hardware that we sell . we also incur shipping and handling costs in the normal course of business . cost of sales also reflects cash discounts for prompt payment to vendors and vendor rebates generally related to annual purchase targets , as well as inventory obsolescence charges . operating expenses operating expenses include all expenses , excluding freight , incurred to receive , sell and ship product and administer the operations of the company . salaries and commissions . story_separator_special_tag we believe that we will have adequate availability of capital to fund our present operations , meet our commitments on our existing debt , continue the stock repurchase program , continue to fund our dividend payments , and fund anticipated growth over the next twelve months , including expansion in existing and targeted market areas . we continually seek potential acquisitions and from time to time hold discussions with acquisition candidates . if further suitable acquisition opportunities or working capital needs arise that would require additional financing , we believe that our financial position and earnings history provide a solid base for obtaining additional financing resources at competitive rates and terms . additionally , based on market conditions , we may decide to issue additional shares of common or preferred stock to raise funds . 22 loan and security agreement on september 30 , 2011 , we entered into a third amended and restated loan and security agreement ( the “ 2011 loan agreement ” ) with certain lenders and bank of america , n.a . , as agent . the 2011 loan agreement provides for a $ 100 million revolving credit facility and expires on september 30 , 2016. availability under the 2011 loan agreement is limited to a borrowing base equal to 85 % of the value of eligible accounts receivable , plus 65 % of the value of eligible inventory , less certain reserves . the 2011 loan agreement is secured by a lien on substantially all our property , other than real estate . portions of the loan under the 2011 loan agreement may be converted to libor loans in minimum amounts of $ 1.0 million and integral multiples of $ 0.1 million . libor loans bear interest at the british bankers association libor rate plus 125 to 200 basis points based on availability , and loans not converted to libor loans bear interest at a fluctuating rate equal to the greatest of the agent 's prime rate , the federal funds rate plus 50 basis points , or 30-day libor plus 150 basis points . additionally , we are obligated to pay an unused facility fee on the unused portion of the loan commitment . unused commitment fees are 25 or 30 basis points , depending on the amount of the unused commitment . covenants in the 2011 loan agreement require us to maintain certain minimum financial ratios and availability levels . repaid amounts can be re-borrowed subject to the borrowing base . as of december 31 , 2011 , we were in compliance with all financial covenants . contractual obligations the following table describes our cash commitments to settle contractual obligations as of december 31 , 2011. replace_table_token_12_th ( 1 ) these obligations reflect purchase orders outstanding with manufacturers as of december 31 , 2011. we believe that some of these obligations may be cancellable upon negotiation with our vendors , but we are treating these as non-cancellable for this disclosure due to the absence of an express cancellation right . capital expenditures we made capital expenditures of $ 1.3 million in the year ended december 31 , 2011 and $ 0.5 million in each of the years ended december 31 , 2010 and 2009. off-balance sheet arrangements we have no off-balance sheet arrangements , other than operating leases . share repurchase program in 2007 , the board of directors approved a stock repurchase program , where the company is authorized to purchase up to $ 75 million of its outstanding shares of common stock , depending on market conditions , trading activity , business conditions and other factors . the program was scheduled to expire on december 31 , 2009 but was initially extended through december 31 , 2011 and on november 4 , 2011 was further extended through december 31 , 2012. shares of stock purchased under the program are currently being held as treasury stock and may be issued upon the exercise of options , as restricted stock , to fund acquisitions , or for other uses as authorized by the board of directors . there were no shares repurchased during 2011 and 2010 under the stock repurchase program . 23 financial derivatives we have no financial derivatives . market risk management we are exposed to market risks arising from changes in market prices , including movements in interest rates and commodity prices . interest rate risk borrowings under our 2011 loan agreement bear interest at variable interest rates and therefore are sensitive to changes in the general level of interest rates . at december 31 , 2011 , the weighted average interest rate on our $ 48.0 million of variable interest debt was approximately 2.29 % . while our variable rate debt obligations expose us to the risk of rising interest rates , management does not believe that the potential exposure is material to our overall financial performance or results of operations . based on december 31 , 2011 borrowing levels , a 1.0 % increase or decrease in the applicable interest rates would have a $ 0.5 million effect on our annual interest expense . commodity risk we are subject to periodic fluctuations in copper prices , as our products have varying levels of copper content in their construction . in addition , varying steel prices also impact certain products we purchase . profitability is influenced by these fluctuations as prices change between the time we buy and sell our products . foreign currency exchange rate risk our products are purchased and invoiced in u.s. dollars . accordingly , we do not believe we are exposed to foreign exchange rate risk . climate risk our operations are subject to inclement weather conditions including hurricanes , earthquakes and abnormal weather events . our previous experience from these events has had a minimal effect on our operations and results . factors affecting future results this annual report on form 10-k contains statements that may be considered forward-looking . these statements can

