the acquisition of the rocketdyne business is conditioned upon , among other things , the receipt of required regulatory approvals and other customary closing conditions . subject to the satisfaction of these conditions , the acquisition is expected to close in the first half of 2013. if the acquisition is not completed , we will be required to pay a termination fee of up to $ 20.0 million in the event that the purchase agreement is terminated in certain circumstances . the rocketdyne business is the largest liquid rocket propulsion designer , developer , and manufacturer in the u.s. for more than 50 years , the rocketdyne business has set the standard in space propulsion design , development and manufacturing . the rocketdyne business has powered nearly all of nasa 's human-rated launch vehicles to date and has recorded more than 1,600 space launches . we believe the rocketdyne business acquisition will provide strategic value for the country , our customers , and our stakeholders . the combined enterprise will be better positioned to compete in a dynamic , highly competitive marketplace , and provide more affordable products for our customers . in addition , this transaction is expected to almost double our net sales and provide additional growth opportunities as we build upon the complementary capabilities of each legacy company . on january 28 , 2013 , we issued $ 460.0 million in aggregate principal amount of our 7 1 / 8 % notes . the 7 1 / 8 % notes were sold to qualified institutional buyers in accordance with rule 144a under the securities act and outside the u.s. in accordance with regulation s under the securities act . we intend to use the net proceeds of the 7 1 / 8 % notes offering to fund , in part , the proposed acquisition of the rocketdyne business , and to pay related fees and expenses . the proceeds from the 7 1 / 8 % notes offering were deposited into escrow pending the consummation of the proposed acquisition . if the acquisition is not consummated on or prior to july 21 , 2013 ( subject to a one-month extension upon satisfaction of certain conditions ) or upon the occurrence of certain other events , the 7 1 / 8 % notes will be subject to a special mandatory redemption at a price equal to 100 % of the issue price of the 7 1 / 8 % notes , plus accrued and unpaid interest , if any , to , but not including the date of the special mandatory redemption . see note 15 in notes to the consolidated financial statements . in connection with the financing of the acquisition , we also intend to borrow the $ 50 million new term loan under our senior credit facility , which is available in a single draw until 360 days after august 16 , 2012 to fund the acquisition ( or to be deposited in an account held by the administrative agent under our senior credit facility in anticipation of the acquisition ) . we expect to incur substantial expenses in connection with the acquisition and the integration of our operations with the rocketdyne business . we incurred $ 11.6 million of expenses related to the proposed acquisition of the rocketdyne business in fiscal 2012. there are a large number of processes , policies , procedures , operations , technologies and systems that must be integrated , including purchasing , accounting and finance , sales , payroll , pricing , marketing , and benefits . while we have assumed that a certain level of expenses will be incurred , there are many factors beyond our control that could affect the total amount or the timing of the integration expenses . moreover , many of the expenses that will be incurred are , by their nature , difficult to estimate . as of november 30 , 2012 , we classified our ldacs program as assets held for sale because we expect that we will be required to divest the ldacs product line in order to finalize the acquisition of the rocketdyne business . the net sales associated with the ldacs program totaled $ 34.3 million in fiscal 2012. see note 13 in notes to the consolidated financial statements . we are operating in an environment that is characterized by both increasing complexity in the global security environment , as well as continuing worldwide economic pressures . a significant component of our strategy in this environment is to focus on delivering excellent performance to our customers , driving improvements and efficiencies across our operations , and creating value through the enhancement and expansion of our business . some of the significant challenges we face are as follows : dependence upon government programs and contracts , future reductions or changes in u.s. government spending in our industry , integration of the possible rocketdyne business acquisition , environmental matters , capital structure , an underfunded pension plan , and implementation of our erp system . some of these matters are discussed in more detail below . 36 major customers the principal end user customers of our products and technology are agencies of the u.s. government . since a majority of our sales are , directly or indirectly , to the u.s. government , funding for the purchase of our products and services generally follows trends in u.s. aerospace and defense spending . customers that represented more than 10 % of net sales for the fiscal years presented are as follows : replace_table_token_11_th sales to the u.s. government and its agencies , including sales to our significant customers discussed above , were as follows ( dollars in millions ) : replace_table_token_12_th the standard missile program , which is included in the u.s. government sales , represented 25 % , 24 % , and 26 % of net sales for fiscal 2012 , 2011 , and 2010 , respectively . story_separator_special_tag during fiscal 2010 , we repurchased $ 77.8 million principal amount of our 2 1 / 4 % debentures at various prices ranging from 93.0 % of par to 98.975 % of par , plus accrued and unpaid interest using a portion of the net proceeds of our 4 1 / 16 % debentures issued in december 2009. a summary of our losses on the 2 1 / 4 % debentures repurchased during fiscal 2010 is as follows ( in millions ) : replace_table_token_22_th during fiscal 2010 , we repurchased $ 22.5 million principal amount of our 9 1 / 2 % notes at 102 % of par , plus accrued and unpaid interest using a portion of the net proceeds of our 4 1 / 16 % debentures issued in december 2009. a summary of our losses on the 9 1 / 2 % notes repurchased during fiscal 2010 is as follows ( in millions ) : replace_table_token_23_th interest expense replace_table_token_24_th * primary reason for change . the decrease in interest expense was primarily due to the repurchase of debt in fiscal 2012 and 2011. we repurchased $ 68.4 million of the outstanding 2 1 / 4 % debentures in fiscal 2011 and repurchased $ 75.0 million of the outstanding 9 1 / 2 % notes in fiscal 2012 . 43 * * primary reason for change . the decrease in interest expense was primarily due to lower average debt balances during fiscal 2011 compared to fiscal 2010 periods , including the repurchase of $ 22.5 million and $ 77.8 million of principal on the 9 1 / 2 % notes and 2 1 / 4 % debentures , respectively , in fiscal 2010. interest income replace_table_token_25_th * primary reason for change . the decrease in interest income was primarily due to lower average interest rates and cash balances in fiscal 2012 compared to fiscal 2011 . * * primary reason for change . the decline in interest income was primarily due to lower average interest rates during fiscal 2011 compared fiscal 2010 partially offset by higher average cash balances . income tax provision ( benefit ) replace_table_token_26_th a valuation allowance has been recorded to offset a substantial portion of our net deferred tax assets at november 30 , 2012 and 2011 to reflect the uncertainty of realization ( see discussion below ) . deferred tax assets and liabilities arise due to temporary differences in the basis of our assets and liabilities between financial statement accounting and income tax based accounting . changes in these temporary differences cause an increase or decrease to income taxes payable ; however , our net deferred tax balances do not change due to the valuation allowance on the deferred tax assets . a significant part of our effective tax rate is due to the current period change in these temporary differences which represent future tax income or deductions . the following table shows the reconciling items between the income tax provision ( benefit ) using the federal statutory rate and our reported income tax provision ( benefit ) . replace_table_token_27_th as of november 30 , 2012 and 2011 , the valuation allowance was $ 288.1 million and $ 211.1 million , respectively . a valuation allowance is required when it is more likely than not that all or a portion of deferred tax assets may not be realized . establishment and removal of a valuation allowance requires management to consider all positive and negative evidence and make a judgmental decision regarding the amount of valuation allowance required as of a reporting date . the weight given to the evidence is commensurate with the extent to which it can 44 be objectively verified . the more negative evidence that exists , the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed . additionally , in accordance with accounting standards , the effect of our proposed acquisition of the rocketdyne business has not been considered in the evaluation of the valuation allowance . in this evaluation , management has considered all available evidence , both positive and negative , including the following : our recent history of generating taxable income which has allowed for the utilization of net operating loss credits and tax credit carryfowards ; the existence of a three year cumulative comprehensive loss related to our defined benefit pension plan in the current and recent prior periods ; projections of our future results which reflect uncertainty over our ability to generate taxable income principally due to : ( i ) increased periodic pension expense in fiscal 2013 due to a decline in the discount rate utilized to value the pension obligation associated with our defined benefit pension plan and ( ii ) the lack of objective , verifiable evidence to predict future aerospace and defense spending associated with the budget control act of 2011 , including which governmental spending accounts may be subject to sequestration , the percentage reduction with respect thereto , and the latitude agencies will have in selecting specific expenditures to cut . as of november 30 , 2012 , the weight of the negative evidence , principally associated with the above uncertainties , outweighed the recent historical positive evidence regarding the likelihood that a substantial portion of the net deferred tax assets was realizable . depending on our ability to continue to generate taxable income and the resolution of the above uncertainties favorably , it is possible that the valuation allowance could be released during fiscal 2013 , which would materially and favorably affect our results of operations in the period of the reversal . management will continue to evaluate the ability to realize our net deferred tax assets and related valuation allowance on a quarterly basis . the american taxpayer relief act of 2012 passed in january 2013 , retroactively reinstated the federal research and development credit . as a result , we expect to

liquidity and capital resources the change in cash and cash equivalents is summarized as follows : replace_table_token_40_th net cash provided by operating activities the $ 86.2 million of cash provided by operating activities in fiscal 2012 was primarily the result of the net loss adjusted for non-cash adjustments which generated $ 64.1 million of cash and an increase of $ 22.3 million in accounts payable which was primarily due to the timing of payments . the $ 76.8 million of cash provided by operating activities in fiscal 2011 was primarily the result of net income adjusted for non-cash adjustments which generated $ 85.6 million of cash partially offset by a net cash usage of $ 14.2 million related to environmental remediation and retirement benefit plans . the $ 148.1 million of cash provided by operating activities in fiscal 2010 was primarily the result of net income adjusted for non-cash adjustments which generated $ 90.1 million of cash and a $ 74.8 million increase in cash provided by working capital ( defined as accounts receivable , inventories , accounts payable , contract advances , income tax related , and other current assets and liabilities ) . the increase in working capital is due to the following : ( i ) an increase in contract advances of $ 44.0 million from prior year ; ( ii ) a decrease in inventories of $ 10.7 million primarily due to an increase in customer progress payments ; and ( iii ) an increase in collections on billed accounts receivables , resulting in a decrease in receivables days outstanding . net cash ( used in ) provided by investing activities during fiscal 2012 , we had capital expenditures of $ 37.2 million of which $ 14.9 million was related to our erp implementation . during fiscal 2011 and 2010 , we had capital expenditures of $ 21.1 million and $ 16.9 million , respectively .


 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 the change in cash and cash equivalents is summarized as follows : replace_table_token_40_th net cash provided by operating activities the $ 86.2 million of cash provided by operating activities in fiscal 2012 was primarily the result of the net loss adjusted for non-cash adjustments which generated $ 64.1 million of cash and an increase of $ 22.3 million in accounts payable which was primarily due to the timing of payments . the $ 76.8 million of cash provided by operating activities in fiscal 2011 was primarily the result of net income adjusted for non-cash adjustments which generated $ 85.6 million of cash partially offset by a net cash usage of $ 14.2 million related to environmental remediation and retirement benefit plans . the $ 148.1 million of cash provided by operating activities in fiscal 2010 was primarily the result of net income adjusted for non-cash adjustments which generated $ 90.1 million of cash and a $ 74.8 million increase in cash provided by working capital ( defined as accounts receivable , inventories , accounts payable , contract advances , income tax related , and other current assets and liabilities ) . the increase in working capital is due to the following : ( i ) an increase in contract advances of $ 44.0 million from prior year ; ( ii ) a decrease in inventories of $ 10.7 million primarily due to an increase in customer progress payments ; and ( iii ) an increase in collections on billed accounts receivables , resulting in a decrease in receivables days outstanding . net cash ( used in ) provided by investing activities during fiscal 2012 , we had capital expenditures of $ 37.2 million of which $ 14.9 million was related to our erp implementation . during fiscal 2011 and 2010 , we had capital expenditures of $ 21.1 million and $ 16.9 million , respectively .
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 Suspicious Activity Report : the acquisition of the rocketdyne business is conditioned upon , among other things , the receipt of required regulatory approvals and other customary closing conditions . subject to the satisfaction of these conditions , the acquisition is expected to close in the first half of 2013. if the acquisition is not completed , we will be required to pay a termination fee of up to $ 20.0 million in the event that the purchase agreement is terminated in certain circumstances . the rocketdyne business is the largest liquid rocket propulsion designer , developer , and manufacturer in the u.s. for more than 50 years , the rocketdyne business has set the standard in space propulsion design , development and manufacturing . the rocketdyne business has powered nearly all of nasa 's human-rated launch vehicles to date and has recorded more than 1,600 space launches . we believe the rocketdyne business acquisition will provide strategic value for the country , our customers , and our stakeholders . the combined enterprise will be better positioned to compete in a dynamic , highly competitive marketplace , and provide more affordable products for our customers . in addition , this transaction is expected to almost double our net sales and provide additional growth opportunities as we build upon the complementary capabilities of each legacy company . on january 28 , 2013 , we issued $ 460.0 million in aggregate principal amount of our 7 1 / 8 % notes . the 7 1 / 8 % notes were sold to qualified institutional buyers in accordance with rule 144a under the securities act and outside the u.s. in accordance with regulation s under the securities act . we intend to use the net proceeds of the 7 1 / 8 % notes offering to fund , in part , the proposed acquisition of the rocketdyne business , and to pay related fees and expenses . the proceeds from the 7 1 / 8 % notes offering were deposited into escrow pending the consummation of the proposed acquisition . if the acquisition is not consummated on or prior to july 21 , 2013 ( subject to a one-month extension upon satisfaction of certain conditions ) or upon the occurrence of certain other events , the 7 1 / 8 % notes will be subject to a special mandatory redemption at a price equal to 100 % of the issue price of the 7 1 / 8 % notes , plus accrued and unpaid interest , if any , to , but not including the date of the special mandatory redemption . see note 15 in notes to the consolidated financial statements . in connection with the financing of the acquisition , we also intend to borrow the $ 50 million new term loan under our senior credit facility , which is available in a single draw until 360 days after august 16 , 2012 to fund the acquisition ( or to be deposited in an account held by the administrative agent under our senior credit facility in anticipation of the acquisition ) . we expect to incur substantial expenses in connection with the acquisition and the integration of our operations with the rocketdyne business . we incurred $ 11.6 million of expenses related to the proposed acquisition of the rocketdyne business in fiscal 2012. there are a large number of processes , policies , procedures , operations , technologies and systems that must be integrated , including purchasing , accounting and finance , sales , payroll , pricing , marketing , and benefits . while we have assumed that a certain level of expenses will be incurred , there are many factors beyond our control that could affect the total amount or the timing of the integration expenses . moreover , many of the expenses that will be incurred are , by their nature , difficult to estimate . as of november 30 , 2012 , we classified our ldacs program as assets held for sale because we expect that we will be required to divest the ldacs product line in order to finalize the acquisition of the rocketdyne business . the net sales associated with the ldacs program totaled $ 34.3 million in fiscal 2012. see note 13 in notes to the consolidated financial statements . we are operating in an environment that is characterized by both increasing complexity in the global security environment , as well as continuing worldwide economic pressures . a significant component of our strategy in this environment is to focus on delivering excellent performance to our customers , driving improvements and efficiencies across our operations , and creating value through the enhancement and expansion of our business . some of the significant challenges we face are as follows : dependence upon government programs and contracts , future reductions or changes in u.s. government spending in our industry , integration of the possible rocketdyne business acquisition , environmental matters , capital structure , an underfunded pension plan , and implementation of our erp system . some of these matters are discussed in more detail below . 36 major customers the principal end user customers of our products and technology are agencies of the u.s. government . since a majority of our sales are , directly or indirectly , to the u.s. government , funding for the purchase of our products and services generally follows trends in u.s. aerospace and defense spending . customers that represented more than 10 % of net sales for the fiscal years presented are as follows : replace_table_token_11_th sales to the u.s. government and its agencies , including sales to our significant customers discussed above , were as follows ( dollars in millions ) : replace_table_token_12_th the standard missile program , which is included in the u.s. government sales , represented 25 % , 24 % , and 26 % of net sales for fiscal 2012 , 2011 , and 2010 , respectively . story_separator_special_tag during fiscal 2010 , we repurchased $ 77.8 million principal amount of our 2 1 / 4 % debentures at various prices ranging from 93.0 % of par to 98.975 % of par , plus accrued and unpaid interest using a portion of the net proceeds of our 4 1 / 16 % debentures issued in december 2009. a summary of our losses on the 2 1 / 4 % debentures repurchased during fiscal 2010 is as follows ( in millions ) : replace_table_token_22_th during fiscal 2010 , we repurchased $ 22.5 million principal amount of our 9 1 / 2 % notes at 102 % of par , plus accrued and unpaid interest using a portion of the net proceeds of our 4 1 / 16 % debentures issued in december 2009. a summary of our losses on the 9 1 / 2 % notes repurchased during fiscal 2010 is as follows ( in millions ) : replace_table_token_23_th interest expense replace_table_token_24_th * primary reason for change . the decrease in interest expense was primarily due to the repurchase of debt in fiscal 2012 and 2011. we repurchased $ 68.4 million of the outstanding 2 1 / 4 % debentures in fiscal 2011 and repurchased $ 75.0 million of the outstanding 9 1 / 2 % notes in fiscal 2012 . 43 * * primary reason for change . the decrease in interest expense was primarily due to lower average debt balances during fiscal 2011 compared to fiscal 2010 periods , including the repurchase of $ 22.5 million and $ 77.8 million of principal on the 9 1 / 2 % notes and 2 1 / 4 % debentures , respectively , in fiscal 2010. interest income replace_table_token_25_th * primary reason for change . the decrease in interest income was primarily due to lower average interest rates and cash balances in fiscal 2012 compared to fiscal 2011 . * * primary reason for change . the decline in interest income was primarily due to lower average interest rates during fiscal 2011 compared fiscal 2010 partially offset by higher average cash balances . income tax provision ( benefit ) replace_table_token_26_th a valuation allowance has been recorded to offset a substantial portion of our net deferred tax assets at november 30 , 2012 and 2011 to reflect the uncertainty of realization ( see discussion below ) . deferred tax assets and liabilities arise due to temporary differences in the basis of our assets and liabilities between financial statement accounting and income tax based accounting . changes in these temporary differences cause an increase or decrease to income taxes payable ; however , our net deferred tax balances do not change due to the valuation allowance on the deferred tax assets . a significant part of our effective tax rate is due to the current period change in these temporary differences which represent future tax income or deductions . the following table shows the reconciling items between the income tax provision ( benefit ) using the federal statutory rate and our reported income tax provision ( benefit ) . replace_table_token_27_th as of november 30 , 2012 and 2011 , the valuation allowance was $ 288.1 million and $ 211.1 million , respectively . a valuation allowance is required when it is more likely than not that all or a portion of deferred tax assets may not be realized . establishment and removal of a valuation allowance requires management to consider all positive and negative evidence and make a judgmental decision regarding the amount of valuation allowance required as of a reporting date . the weight given to the evidence is commensurate with the extent to which it can 44 be objectively verified . the more negative evidence that exists , the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed . additionally , in accordance with accounting standards , the effect of our proposed acquisition of the rocketdyne business has not been considered in the evaluation of the valuation allowance . in this evaluation , management has considered all available evidence , both positive and negative , including the following : our recent history of generating taxable income which has allowed for the utilization of net operating loss credits and tax credit carryfowards ; the existence of a three year cumulative comprehensive loss related to our defined benefit pension plan in the current and recent prior periods ; projections of our future results which reflect uncertainty over our ability to generate taxable income principally due to : ( i ) increased periodic pension expense in fiscal 2013 due to a decline in the discount rate utilized to value the pension obligation associated with our defined benefit pension plan and ( ii ) the lack of objective , verifiable evidence to predict future aerospace and defense spending associated with the budget control act of 2011 , including which governmental spending accounts may be subject to sequestration , the percentage reduction with respect thereto , and the latitude agencies will have in selecting specific expenditures to cut . as of november 30 , 2012 , the weight of the negative evidence , principally associated with the above uncertainties , outweighed the recent historical positive evidence regarding the likelihood that a substantial portion of the net deferred tax assets was realizable . depending on our ability to continue to generate taxable income and the resolution of the above uncertainties favorably , it is possible that the valuation allowance could be released during fiscal 2013 , which would materially and favorably affect our results of operations in the period of the reversal . management will continue to evaluate the ability to realize our net deferred tax assets and related valuation allowance on a quarterly basis . the american taxpayer relief act of 2012 passed in january 2013 , retroactively reinstated the federal research and development credit . as a result , we expect to

