strong cash flow generation is critical to the future success of the company , not only to support the general operating needs of the company , but also to fund capital expenditures related to its store network , distribution and administrative facilities , costs associated with continued improvement of information technology tools , costs associated with potential strategic acquisitions that may arise from time to time and shareholder return initiatives , including cash dividends and share repurchases . quality of merchandise offerings  to monitor and maintain acceptance of its merchandise offerings , the company monitors sell-throughs , inventory turns , gross margins and markdown rates on a department and style level . this analysis helps the company manage inventory levels to reduce cash flow requirements and deliver optimal gross margins by improving merchandise flow and establishing appropriate price points to minimize markdowns . store productivity  to assess store-level performance , the company monitors various indicators , including new store productivity , sales per square foot , store operating contribution margin and store cash flow . new store productivity compares the sales increase for all stores not included in the same store sales calculation with the increase in square footage . executive summary net income for the year ended january 28 , 2012 increased 45 % to $ 263.9 million , or $ 2.10 per diluted share , as compared to net income of $ 182.1 million , or $ 1.50 per diluted share , in fiscal 2010. fiscal 2011 net income included a gain on sale of investment of $ 8.7 million , net of tax , or $ 0.07 per diluted share and an increase to net income of $ 1.3 million , net of tax , or $ 0.01 per diluted share , resulting from a partial reversal of litigation settlement costs previously accrued during fiscal 2010. fiscal 2010 net income included expenses relating to future lease payments and asset impairment charges resulting from the closure of 12 underperforming golf galaxy stores 31 of approximately $ 9.8 million , net of tax , or $ 0.08 per diluted share and a litigation settlement charge of approximately $ 6.5 million , net of tax , or $ 0.05 per diluted share . net sales increased 7 % to $ 5,211.8 million in fiscal 2011 from $ 4,871.5 million in fiscal 2010 due primarily to a 2.0 % increase in consolidated same store sales and the growth of our store network . gross profit increased to 30.60 % in fiscal 2011 as a percentage of net sales from 29.75 % in fiscal 2010 due primarily to higher merchandise margins and leverage of fixed occupancy costs . in fiscal 2011 , the company : declared an annual cash dividend of $ 0.50 per share , the first ever such dividend . executed a new credit agreement that increases the company 's borrowing capacity to $ 500 million and allows for a $ 250 million increase in the total capacity , subject to the satisfaction of certain conditions . authorized a one-year share repurchase program of up to $ 200 million of the company 's common stock . pursuant to this program , the company repurchased 30,600 shares of common stock for $ 1.2 million in fiscal 2011. began construction on a fourth distribution center , which we expect will increase the company 's total distribution capacity to approximately 750 stores . results of operations the following table presents for the periods indicated selected items in the consolidated statements of income as a percentage of the company 's net sales , as well as the basis point change in percentage of net sales from the prior year : replace_table_token_8_th ( 1 ) revenue from retail sales is recognized at the point of sale , net of sales tax . revenue from e-commerce sales is recognized upon shipment of merchandise and any service-related revenue is recognized as the services are 32 performed . a provision for anticipated merchandise returns is provided through a reduction of sales and cost of goods sold in the period that the related sales are recorded . revenue from gift cards and returned merchandise credits ( collectively the `` cards `` ) are deferred and recognized upon the redemption of the cards . these cards have no expiration date . income from unredeemed cards is recognized on the consolidated statements of income within selling , general and administrative expenses at the point at which redemption becomes remote . the company performs an evaluation of the aging of the unredeemed cards , based on the elapsed time from the date of original issuance , to determine when redemption becomes remote . ( 2 ) cost of goods sold includes the cost of merchandise , inventory shrinkage and obsolescence , freight , distribution and store occupancy costs . store occupancy costs include rent , common area maintenance charges , real estate and other asset-based taxes , store maintenance , utilities , depreciation , fixture lease expenses and certain insurance expenses . ( 3 ) selling , general and administrative expenses include store and field support payroll and fringe benefits , advertising , bank card charges , information systems , marketing , legal , accounting , other store expenses and all expenses associated with operating the company 's corporate headquarters . selling , general and administrative expenses for fiscal 2010 include expenses relating to future lease obligations and asset impairment charges resulting from the closure of 12 underperforming golf galaxy stores as well as a litigation settlement charge . fiscal 2011 includes an expense reduction relating to the partial reversal of previously accrued litigation settlement costs . ( 4 ) merger and integration costs primarily include duplicative administrative costs and management , advertising and severance expenses associated with the conversions from chick 's sporting goods ( `` chick 's `` ) stores to dick 's stores . story_separator_special_tag critical accounting policies are those that the company believes are both most important to the portrayal of the company 's financial condition and results of operations , and require the company 's most difficult , subjective or complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . judgments and uncertainties affecting the application of those policies may result in materially different amounts being reported under different conditions or using different assumptions . the company considers the following policies to be the most critical in understanding the judgments that are involved in preparing its consolidated financial statements . inventory valuation the company values inventory using the lower of weighted average cost or market method . market price is generally based on the current selling price of the merchandise . the company regularly reviews inventories to determine if the carrying value of the inventory exceeds market value and the company records a reserve to reduce the carrying value to its market price , as necessary . historically , the company has rarely experienced significant occurrences of obsolescence or slow moving inventory . however , future changes , such as customer merchandise preference , unseasonable weather patterns , economic conditions or business trends could cause the company 's inventory to be exposed to obsolescence or slow moving merchandise . shrink expense is accrued as a percentage of merchandise sales based on historical shrink trends . the company performs physical inventories at the stores and distribution centers throughout the year . the reserve for shrink represents an estimate for shrink for each of the company 's locations since the last physical inventory date through the reporting date . estimates by location and in the aggregate are impacted by internal and external factors and may vary significantly from actual results . vendor allowances vendor allowances include allowances , rebates and cooperative advertising funds received from vendors . these funds are determined for each fiscal year and the majority are based on various quantitative contract terms . amounts expected to be received from vendors relating to the purchase of merchandise inventories are treated as a reduction of inventory and reduce cost of goods sold as the merchandise is 40 sold . amounts that represent a reimbursement of costs incurred , such as advertising , are recorded as a reduction to the related expense in the period that the related expense is incurred . the company records an estimate of earned allowances based on the latest projected purchase volumes and advertising forecasts . on an annual basis at the end of the year , the company confirms earned allowances with vendors to ensure the amounts are recorded in accordance with the terms of the contract . business combinations in accounting for business combinations , we allocate the purchase price of an acquired business to its identifiable assets and liabilities based on estimated fair values and the excess of the purchase price over the amount allocated to the assets and liabilities , if any , is recorded as goodwill . the determination of fair value involves the use of estimates and assumptions which we believe provides a reasonable basis for determining fair value . we may engage outside appraisal firms to assist in the fair value determination of inventory , identifiable intangible assets such as trade names , and any other significant assets or liabilities . goodwill and intangible assets goodwill , indefinite-lived and other finite-lived intangible assets are tested for impairment on an annual basis . additional impairment assessments may be performed on an interim basis if the company deems it necessary . our evaluation for impairment requires accounting judgments and financial estimates in determining the fair value of the reporting unit . if these judgments or estimates change in the future , we may be required to record impairment charges for these assets . the goodwill impairment test is a two-step impairment test . in the first step , the company compares the fair value of each reporting unit to its carrying value . the company determines the fair value of its reporting units using a combination of a discounted cash flow and a market value approach . the company 's estimates may differ from actual results due to , among other things , economic conditions , changes to its business models , or changes in operating performance . significant differences between these estimates and actual results could result in future impairment charges and could materially affect the company 's future financial results . if the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that reporting unit , goodwill is not impaired and the company is not required to perform further testing . if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit , then the company must perform the second step in order to determine the implied fair value of the reporting unit 's goodwill and compare it to the carrying value of the reporting unit 's goodwill . the activities in the second step include valuing the tangible and intangible assets and liabilities of the impaired reporting unit based on their fair value and determining the fair value of the impaired reporting unit 's goodwill based upon the residual of the aggregate identified tangible and intangible assets and liabilities . intangible assets that have been determined to have indefinite lives are also not subject to amortization and are reviewed at least annually for potential impairment , or more frequently as mentioned above . the fair value of the company 's intangible assets are estimated and compared to their carrying value . the company estimates the fair value of these intangible assets based on an income approach using the relief-from-royalty method . this methodology assumes that , in lieu of ownership , a third party would be willing to pay a royalty in

liquidity and capital resources overview the company 's liquidity and capital needs have generally been met by cash from operating activities and borrowings under a revolving credit facility . net cash provided by operating activities for fiscal 2011 was $ 410.4 million compared to $ 390.0 million for fiscal 2010. during fiscal 2011 and fiscal 2010 , apart from letters of credit , the company did not borrow amounts under its current or prior credit facility . net cash from operating , investing and financing activities are discussed further below . on december 5 , 2011 , the company entered into a five-year credit agreement with wells fargo bank , national association ( the `` credit agreement '' ) which replaced the company 's then existing credit facility that was terminated . the credit agreement provides for a $ 500 million revolving credit facility , including up to $ 100 million in the form of letters of credit and allows the company , subject to the satisfaction of certain conditions , to request an increase of up to $ 250 million in borrowing availability to the extent that existing or new lenders agree to provide such additional revolving commitments . 36 the credit agreement , which matures on december 5 , 2016 , is secured by a first priority security interest in certain property and assets , including receivables , inventory , deposit accounts and other personal property of the company and is guaranteed by the company 's domestic subsidiaries . the interest rates per annum applicable to loans under the credit agreement will be , at the company 's option , equal to a base rate or an adjusted libo rate plus an applicable margin percentage . the applicable margin percentage for base rate loans is 0.20 % to 0.50 % and for adjusted libo rate loans is 1.20 % to 1.50 % , depending on the borrowing availability of the company .


 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 overview the company 's liquidity and capital needs have generally been met by cash from operating activities and borrowings under a revolving credit facility . net cash provided by operating activities for fiscal 2011 was $ 410.4 million compared to $ 390.0 million for fiscal 2010. during fiscal 2011 and fiscal 2010 , apart from letters of credit , the company did not borrow amounts under its current or prior credit facility . net cash from operating , investing and financing activities are discussed further below . on december 5 , 2011 , the company entered into a five-year credit agreement with wells fargo bank , national association ( the `` credit agreement '' ) which replaced the company 's then existing credit facility that was terminated . the credit agreement provides for a $ 500 million revolving credit facility , including up to $ 100 million in the form of letters of credit and allows the company , subject to the satisfaction of certain conditions , to request an increase of up to $ 250 million in borrowing availability to the extent that existing or new lenders agree to provide such additional revolving commitments . 36 the credit agreement , which matures on december 5 , 2016 , is secured by a first priority security interest in certain property and assets , including receivables , inventory , deposit accounts and other personal property of the company and is guaranteed by the company 's domestic subsidiaries . the interest rates per annum applicable to loans under the credit agreement will be , at the company 's option , equal to a base rate or an adjusted libo rate plus an applicable margin percentage . the applicable margin percentage for base rate loans is 0.20 % to 0.50 % and for adjusted libo rate loans is 1.20 % to 1.50 % , depending on the borrowing availability of the company .
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 Suspicious Activity Report : strong cash flow generation is critical to the future success of the company , not only to support the general operating needs of the company , but also to fund capital expenditures related to its store network , distribution and administrative facilities , costs associated with continued improvement of information technology tools , costs associated with potential strategic acquisitions that may arise from time to time and shareholder return initiatives , including cash dividends and share repurchases . quality of merchandise offerings  to monitor and maintain acceptance of its merchandise offerings , the company monitors sell-throughs , inventory turns , gross margins and markdown rates on a department and style level . this analysis helps the company manage inventory levels to reduce cash flow requirements and deliver optimal gross margins by improving merchandise flow and establishing appropriate price points to minimize markdowns . store productivity  to assess store-level performance , the company monitors various indicators , including new store productivity , sales per square foot , store operating contribution margin and store cash flow . new store productivity compares the sales increase for all stores not included in the same store sales calculation with the increase in square footage . executive summary net income for the year ended january 28 , 2012 increased 45 % to $ 263.9 million , or $ 2.10 per diluted share , as compared to net income of $ 182.1 million , or $ 1.50 per diluted share , in fiscal 2010. fiscal 2011 net income included a gain on sale of investment of $ 8.7 million , net of tax , or $ 0.07 per diluted share and an increase to net income of $ 1.3 million , net of tax , or $ 0.01 per diluted share , resulting from a partial reversal of litigation settlement costs previously accrued during fiscal 2010. fiscal 2010 net income included expenses relating to future lease payments and asset impairment charges resulting from the closure of 12 underperforming golf galaxy stores 31 of approximately $ 9.8 million , net of tax , or $ 0.08 per diluted share and a litigation settlement charge of approximately $ 6.5 million , net of tax , or $ 0.05 per diluted share . net sales increased 7 % to $ 5,211.8 million in fiscal 2011 from $ 4,871.5 million in fiscal 2010 due primarily to a 2.0 % increase in consolidated same store sales and the growth of our store network . gross profit increased to 30.60 % in fiscal 2011 as a percentage of net sales from 29.75 % in fiscal 2010 due primarily to higher merchandise margins and leverage of fixed occupancy costs . in fiscal 2011 , the company : declared an annual cash dividend of $ 0.50 per share , the first ever such dividend . executed a new credit agreement that increases the company 's borrowing capacity to $ 500 million and allows for a $ 250 million increase in the total capacity , subject to the satisfaction of certain conditions . authorized a one-year share repurchase program of up to $ 200 million of the company 's common stock . pursuant to this program , the company repurchased 30,600 shares of common stock for $ 1.2 million in fiscal 2011. began construction on a fourth distribution center , which we expect will increase the company 's total distribution capacity to approximately 750 stores . results of operations the following table presents for the periods indicated selected items in the consolidated statements of income as a percentage of the company 's net sales , as well as the basis point change in percentage of net sales from the prior year : replace_table_token_8_th ( 1 ) revenue from retail sales is recognized at the point of sale , net of sales tax . revenue from e-commerce sales is recognized upon shipment of merchandise and any service-related revenue is recognized as the services are 32 performed . a provision for anticipated merchandise returns is provided through a reduction of sales and cost of goods sold in the period that the related sales are recorded . revenue from gift cards and returned merchandise credits ( collectively the `` cards `` ) are deferred and recognized upon the redemption of the cards . these cards have no expiration date . income from unredeemed cards is recognized on the consolidated statements of income within selling , general and administrative expenses at the point at which redemption becomes remote . the company performs an evaluation of the aging of the unredeemed cards , based on the elapsed time from the date of original issuance , to determine when redemption becomes remote . ( 2 ) cost of goods sold includes the cost of merchandise , inventory shrinkage and obsolescence , freight , distribution and store occupancy costs . store occupancy costs include rent , common area maintenance charges , real estate and other asset-based taxes , store maintenance , utilities , depreciation , fixture lease expenses and certain insurance expenses . ( 3 ) selling , general and administrative expenses include store and field support payroll and fringe benefits , advertising , bank card charges , information systems , marketing , legal , accounting , other store expenses and all expenses associated with operating the company 's corporate headquarters . selling , general and administrative expenses for fiscal 2010 include expenses relating to future lease obligations and asset impairment charges resulting from the closure of 12 underperforming golf galaxy stores as well as a litigation settlement charge . fiscal 2011 includes an expense reduction relating to the partial reversal of previously accrued litigation settlement costs . ( 4 ) merger and integration costs primarily include duplicative administrative costs and management , advertising and severance expenses associated with the conversions from chick 's sporting goods ( `` chick 's `` ) stores to dick 's stores . story_separator_special_tag critical accounting policies are those that the company believes are both most important to the portrayal of the company 's financial condition and results of operations , and require the company 's most difficult , subjective or complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . judgments and uncertainties affecting the application of those policies may result in materially different amounts being reported under different conditions or using different assumptions . the company considers the following policies to be the most critical in understanding the judgments that are involved in preparing its consolidated financial statements . inventory valuation the company values inventory using the lower of weighted average cost or market method . market price is generally based on the current selling price of the merchandise . the company regularly reviews inventories to determine if the carrying value of the inventory exceeds market value and the company records a reserve to reduce the carrying value to its market price , as necessary . historically , the company has rarely experienced significant occurrences of obsolescence or slow moving inventory . however , future changes , such as customer merchandise preference , unseasonable weather patterns , economic conditions or business trends could cause the company 's inventory to be exposed to obsolescence or slow moving merchandise . shrink expense is accrued as a percentage of merchandise sales based on historical shrink trends . the company performs physical inventories at the stores and distribution centers throughout the year . the reserve for shrink represents an estimate for shrink for each of the company 's locations since the last physical inventory date through the reporting date . estimates by location and in the aggregate are impacted by internal and external factors and may vary significantly from actual results . vendor allowances vendor allowances include allowances , rebates and cooperative advertising funds received from vendors . these funds are determined for each fiscal year and the majority are based on various quantitative contract terms . amounts expected to be received from vendors relating to the purchase of merchandise inventories are treated as a reduction of inventory and reduce cost of goods sold as the merchandise is 40 sold . amounts that represent a reimbursement of costs incurred , such as advertising , are recorded as a reduction to the related expense in the period that the related expense is incurred . the company records an estimate of earned allowances based on the latest projected purchase volumes and advertising forecasts . on an annual basis at the end of the year , the company confirms earned allowances with vendors to ensure the amounts are recorded in accordance with the terms of the contract . business combinations in accounting for business combinations , we allocate the purchase price of an acquired business to its identifiable assets and liabilities based on estimated fair values and the excess of the purchase price over the amount allocated to the assets and liabilities , if any , is recorded as goodwill . the determination of fair value involves the use of estimates and assumptions which we believe provides a reasonable basis for determining fair value . we may engage outside appraisal firms to assist in the fair value determination of inventory , identifiable intangible assets such as trade names , and any other significant assets or liabilities . goodwill and intangible assets goodwill , indefinite-lived and other finite-lived intangible assets are tested for impairment on an annual basis . additional impairment assessments may be performed on an interim basis if the company deems it necessary . our evaluation for impairment requires accounting judgments and financial estimates in determining the fair value of the reporting unit . if these judgments or estimates change in the future , we may be required to record impairment charges for these assets . the goodwill impairment test is a two-step impairment test . in the first step , the company compares the fair value of each reporting unit to its carrying value . the company determines the fair value of its reporting units using a combination of a discounted cash flow and a market value approach . the company 's estimates may differ from actual results due to , among other things , economic conditions , changes to its business models , or changes in operating performance . significant differences between these estimates and actual results could result in future impairment charges and could materially affect the company 's future financial results . if the fair value of the reporting unit exceeds the carrying value of the net assets assigned to that reporting unit , goodwill is not impaired and the company is not required to perform further testing . if the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit , then the company must perform the second step in order to determine the implied fair value of the reporting unit 's goodwill and compare it to the carrying value of the reporting unit 's goodwill . the activities in the second step include valuing the tangible and intangible assets and liabilities of the impaired reporting unit based on their fair value and determining the fair value of the impaired reporting unit 's goodwill based upon the residual of the aggregate identified tangible and intangible assets and liabilities . intangible assets that have been determined to have indefinite lives are also not subject to amortization and are reviewed at least annually for potential impairment , or more frequently as mentioned above . the fair value of the company 's intangible assets are estimated and compared to their carrying value . the company estimates the fair value of these intangible assets based on an income approach using the relief-from-royalty method . this methodology assumes that , in lieu of ownership , a third party would be willing to pay a royalty in

