product sales resulting from fixed-price construction contracts are generated from multiple-element arrangements that require separate units of accounting and estimates regarding the fair value of individual elements . the company has determined that its multiple-element arrangements that qualify as separate units of accounting are ( 1 ) product sales and ( 2 ) installation services . there is objective and reliable evidence of fair value for both the product sales and installation services , 9 and allocation of arrangement consideration for each of these units is based on their relative fair values . each of these elements represents individual units of accounting , as the delivered item has value to a customer on a stand-alone basis . the company 's products are regularly sold on a stand-alone basis to customers which provides vendor-specific objective evidence of fair value . the fair value of installation services is separately calculated using expected costs of installation services . many times the value of installation services is calculated using price quotations from subcontractors to the company , who perform installation services on a stand-alone basis . assuming all other criteria for revenue recognition have been met , we recognize revenue for product sales at the date of shipment . product sales resulting from purchase orders involve a purchase order received by us from our dealers or our stocking distributor . this category includes product sales for standard products , as well as products which require some customization . these sales are recognized under the terms of the purchase order which generally are freight on board ( fob ) shipping point and do not include rights of return . accordingly , these sales are recognized at the time of shipment . allowance for doubtful accounts evaluation of the allowance for doubtful accounts involves management judgments and estimates . we evaluate the collectability of our trade accounts receivable based on a number of factors . in circumstances where management is aware of a customer 's inability to meet its financial obligations to us , or a project dispute makes it unlikely that all of the receivable owed by a customer will be collected , a specific reserve for bad debts is estimated and recorded to reduce the recognized receivable to the estimated amount we believe will ultimately be collected . in addition to specific customer identification of potential bad debts , a general reserve for bad debts is estimated and recorded based on our recent past loss history and an overall assessment of past due trade accounts receivable amounts outstanding . inventories the majority of inventories are valued at the lower of cost or market under the last-in , first-out ( lifo ) method . the lifo method allocates the most recent costs to cost of products sold , and , therefore , recognizes into operating results fluctuations in raw materials and other inventory costs more quickly than other methods . inventories at our international subsidiaries are measured on the first-in , first-out ( fifo ) method . pension benefits we sponsor pension plans covering all employees who met eligibility requirements as of april 30 , 2005. in february 2005 , our pension plans were amended as of april 30 , 2005. no further benefits have been , or will be , earned under the plans subsequent to the amendment date , and no additional participants have been , or will be , added to the plans . several statistical and other factors , which attempt to anticipate future events , are used in calculating the expense and liability related to the pension plans . these factors include assumptions about the discount rate used to calculate and determine benefit obligations and expected return on plan assets within certain guidelines . the actuarial assumptions used by us may differ materially from actual results due to changing market and economic conditions , higher or lower withdrawal rates , or longer or shorter life spans of participants . these differences may significantly affect the amount of pension income or expense recorded by us in future periods . results of operations sales for fiscal year 2011 were $ 100.0 million , an increase of 1 % from fiscal year 2010 sales of $ 99.1 million . domestic operations sales for fiscal year 2011 were $ 84.1 million , a decrease of 4 % from the prior year . sales in the domestic marketplace reflect lower sales of small and mid-sized projects due to the economic slowdown . international operations sales for fiscal year 2011 were $ 15.9 million , an increase of 38 % from the prior year , as the international marketplace continued to recover from the economic slowdown . sales for fiscal year 2010 were $ 99.1 million , a decrease of 4.7 % from fiscal year 2009 sales of $ 104.0 million . domestic operations sales for the year were $ 87.6 million , a decrease of 3.0 % from the prior year . the sales decline resulted from lower sales of small and mid-sized projects , as customers deferred placing these orders due to the recession , and lower sales from international operations . international operations sales for the year were $ 11.5 million , a decrease of 16.0 % from the prior year . the international laboratory furniture marketplace was hit particularly hard by the economic slowdown , but appeared to show signs of recovery late in the year as quotation activity increased . our order backlog was $ 65.7 million at april 30 , 2011 , as compared to $ 68.9 million at april 30 , 2010 , and $ 62.7 million at april 30 , 2009. gross profit represented 19.3 % , 21.6 % , and 20.6 % of sales in fiscal years 2011 , 2010 , and 2009 , respectively . story_separator_special_tag the decrease in gross profit margin for fiscal year 2011 was primarily due to increased competitive pricing in the marketplace and higher costs for 10 steel and epoxy resin raw materials . the increase in gross profit margin in fiscal year 2010 from fiscal year 2009 was primarily due to savings from alternative sources of raw materials and components , cost improvements , and increased manufacturing efficiencies in the first half of the year associated with higher production volumes . operating expenses were $ 16.1 million , $ 15.6 million , and $ 14.3 million in fiscal years 2011 , 2010 , and 2009 , respectively , and 16.1 % , 15.7 % , and 13.7 % of sales , respectively . the increase in operating expenses in fiscal year 2011 as compared to fiscal year 2010 resulted primarily from an increase in operating expenses of $ 433,000 for expanded international operations , an increase of $ 189,000 in sales and marketing expenses , an increase of $ 129,000 in depreciation expense , and an increase of $ 104,000 in stock option expense . these increases were partially offset by a decrease in pension expense of $ 251,000 and a decrease in bad debt expense of $ 101,000. the increase in operating expenses for fiscal year 2010 as compared to fiscal year 2009 resulted primarily from an increase of $ 1.0 million in pension expense , an increase of $ 219,000 in sales and marketing expenses , and an increase of $ 98,000 in depreciation expense . the impact of these items was partially offset by a decrease of $ 596,000 in compensation earned under performance incentive plans . other income was $ 4,000 and $ 1,000 in fiscal years 2011 and 2010 , respectively . other expense was $ 28,000 in fiscal year 2009. interest expense was $ 199,000 , $ 157,000 , and $ 280,000 in fiscal years 2011 , 2010 , and 2009 , respectively . the increase in interest expense for fiscal year 2011 was due to higher levels of bank borrowings . the decrease in interest expense for fiscal year 2010 from fiscal year 2009 was primarily from lower levels of bank borrowings . income tax expense of $ 864,000 , or 29.2 % of pretax earnings , was recorded for fiscal year 2011. income tax expense of $ 1,921,000 , or 33.9 % of pretax earnings , was recorded for fiscal year 2010. income tax expense of $ 2,264,000 , or 33.4 % of pretax earnings , was recorded in fiscal year 2009. the effective tax rate for each of these years is lower than the statutory rate due to the favorable impact of tax rates for the company 's international subsidiaries and the impact of state and federal tax credits . the lower effective tax rate for fiscal year 2011 also reflects the fact that a greater portion of pretax earnings were attributable to international subsidiaries which have lower rates . net earnings attributable to the noncontrolling interest related to our two subsidiaries that are not 100 % owned by the company were $ 248,000 , $ 178,000 , and $ 265,000 , for fiscal years 2011 , 2010 , and 2009 , respectively . the changes in the net earnings attributable to the noncontrolling interest for each year were due to changes in the levels of net income of the subsidiaries . net earnings in fiscal year 2011 were $ 1,850,000 , or $ 0.72 per diluted share . net earnings in fiscal year 2010 were $ 3,572,000 , or $ 1.39 per diluted share . net earnings in fiscal year 2009 were $ 4,247,000 , or $ 1.66 per diluted share . story_separator_special_tag impact on the company 's consolidated financial position or results of operations . in october 2009 , the fasb issued asu 2009-13 , revenue recognition ( topic 605 )  multiple-deliverable revenue arrangements  a consensus of the fasb emerging issues task force. it updates the existing multiple-element revenue arrangements guidance currently included under fasb asc 605-25 , revenue recognition , multiple-element arrangements. the revised guidance primarily provides two significant changes : ( i ) eliminates the need for objective and reliable evidence of fair value for the undelivered element in order for a delivered item to be treated as a separate unit of accounting , and ( ii ) eliminates the residual method to allocate the arrangement consideration . in addition , the guidance expands the disclosure requirements for revenue recognition . asu 2009-13 is effective for fiscal years beginning on or after june 15 , 2010. the company adopted this standard effective may 1 , 2011. the company does not expect the adoption of this standard to have a significant impact on the company 's consolidated financial position or results of operations . in january 2010 , the fasb issued asu 2010-06 , fair value measurements and disclosures ( topic 820 )  improving disclosures about fair value measurements. this update requires the following new disclosures : ( i ) the amounts of significant transfer in and out of level 1 and level 2 fair value measurements and a description of the reasons for the transfer ; and ( ii ) a reconciliation for fair value measurements using significant unobservable inputs ( level 3 ) , including separate information about purchases , sales , issuance , and settlements . the update also clarifies existing requirements about fair value measurement disclosures and disclosures about inputs and valuation techniques . the new disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods , beginning after december 15 , 2009 , except for the reconciliation of level 3 activity , which is effective for fiscal years beginning after december 15 , 2010. the company adopted this guidance effective may 1 , 2010. the adoption of this standard did not have a significant impact on the company 's consolidated financial position or results of operations .

liquidity and capital resources our principal sources of liquidity have historically been funds generated from operating activities , supplemented as needed by borrowings under our revolving credit facility . additionally , certain machinery and equipment are financed by non-cancelable operating leases or capital leases . we believe that these sources of funds will be sufficient to support ongoing business requirements , including capital expenditures , through fiscal year 2012. at april 30 , 2011 , we had advances of $ 6.6 million outstanding under our unsecured $ 14 million revolving credit facility . the credit facility matures in july 2012. see note 3 of the notes to consolidated financial statements included in item 8 of this annual report for additional information concerning our credit facility . the following table summarizes the cash payment obligations for our lease arrangements and long-term loan as of april 30 , 2011 : payments due by period ( $ in thousands ) replace_table_token_3_th 11 most of our leases are for machinery and equipment and provide us with renewal and purchase options and certain early cancellation rights . we do not have any off balance sheet arrangements at april 30 , 2011. operating activities provided cash of $ 1.3 million in fiscal year 2011 , primarily from operating earnings and an increase in accounts payable , partially offset by increases in accounts receivable and inventory . operating activities provided cash of $ 4.5 million in fiscal year 2010 , primarily from operating earnings and an increase in accounts payable and other accrued expenses , partially offset by increases in accounts receivable and inventory . operating activities provided cash of $ 2.1 million in fiscal year 2009 , primarily from operating earnings and a decrease in prepaid income taxes , partially offset by increases in accounts receivable and inventory . the majority of the april 30 , 2011 accounts receivable balances are expected to be collected during the first quarter of fiscal year 2012 , with the exception of retention amounts on fixed-price contracts which are collected when the entire construction project is completed and all retention funds are paid by the owner .


 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 principal sources of liquidity have historically been funds generated from operating activities , supplemented as needed by borrowings under our revolving credit facility . additionally , certain machinery and equipment are financed by non-cancelable operating leases or capital leases . we believe that these sources of funds will be sufficient to support ongoing business requirements , including capital expenditures , through fiscal year 2012. at april 30 , 2011 , we had advances of $ 6.6 million outstanding under our unsecured $ 14 million revolving credit facility . the credit facility matures in july 2012. see note 3 of the notes to consolidated financial statements included in item 8 of this annual report for additional information concerning our credit facility . the following table summarizes the cash payment obligations for our lease arrangements and long-term loan as of april 30 , 2011 : payments due by period ( $ in thousands ) replace_table_token_3_th 11 most of our leases are for machinery and equipment and provide us with renewal and purchase options and certain early cancellation rights . we do not have any off balance sheet arrangements at april 30 , 2011. operating activities provided cash of $ 1.3 million in fiscal year 2011 , primarily from operating earnings and an increase in accounts payable , partially offset by increases in accounts receivable and inventory . operating activities provided cash of $ 4.5 million in fiscal year 2010 , primarily from operating earnings and an increase in accounts payable and other accrued expenses , partially offset by increases in accounts receivable and inventory . operating activities provided cash of $ 2.1 million in fiscal year 2009 , primarily from operating earnings and a decrease in prepaid income taxes , partially offset by increases in accounts receivable and inventory . the majority of the april 30 , 2011 accounts receivable balances are expected to be collected during the first quarter of fiscal year 2012 , with the exception of retention amounts on fixed-price contracts which are collected when the entire construction project is completed and all retention funds are paid by the owner .
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 Suspicious Activity Report : product sales resulting from fixed-price construction contracts are generated from multiple-element arrangements that require separate units of accounting and estimates regarding the fair value of individual elements . the company has determined that its multiple-element arrangements that qualify as separate units of accounting are ( 1 ) product sales and ( 2 ) installation services . there is objective and reliable evidence of fair value for both the product sales and installation services , 9 and allocation of arrangement consideration for each of these units is based on their relative fair values . each of these elements represents individual units of accounting , as the delivered item has value to a customer on a stand-alone basis . the company 's products are regularly sold on a stand-alone basis to customers which provides vendor-specific objective evidence of fair value . the fair value of installation services is separately calculated using expected costs of installation services . many times the value of installation services is calculated using price quotations from subcontractors to the company , who perform installation services on a stand-alone basis . assuming all other criteria for revenue recognition have been met , we recognize revenue for product sales at the date of shipment . product sales resulting from purchase orders involve a purchase order received by us from our dealers or our stocking distributor . this category includes product sales for standard products , as well as products which require some customization . these sales are recognized under the terms of the purchase order which generally are freight on board ( fob ) shipping point and do not include rights of return . accordingly , these sales are recognized at the time of shipment . allowance for doubtful accounts evaluation of the allowance for doubtful accounts involves management judgments and estimates . we evaluate the collectability of our trade accounts receivable based on a number of factors . in circumstances where management is aware of a customer 's inability to meet its financial obligations to us , or a project dispute makes it unlikely that all of the receivable owed by a customer will be collected , a specific reserve for bad debts is estimated and recorded to reduce the recognized receivable to the estimated amount we believe will ultimately be collected . in addition to specific customer identification of potential bad debts , a general reserve for bad debts is estimated and recorded based on our recent past loss history and an overall assessment of past due trade accounts receivable amounts outstanding . inventories the majority of inventories are valued at the lower of cost or market under the last-in , first-out ( lifo ) method . the lifo method allocates the most recent costs to cost of products sold , and , therefore , recognizes into operating results fluctuations in raw materials and other inventory costs more quickly than other methods . inventories at our international subsidiaries are measured on the first-in , first-out ( fifo ) method . pension benefits we sponsor pension plans covering all employees who met eligibility requirements as of april 30 , 2005. in february 2005 , our pension plans were amended as of april 30 , 2005. no further benefits have been , or will be , earned under the plans subsequent to the amendment date , and no additional participants have been , or will be , added to the plans . several statistical and other factors , which attempt to anticipate future events , are used in calculating the expense and liability related to the pension plans . these factors include assumptions about the discount rate used to calculate and determine benefit obligations and expected return on plan assets within certain guidelines . the actuarial assumptions used by us may differ materially from actual results due to changing market and economic conditions , higher or lower withdrawal rates , or longer or shorter life spans of participants . these differences may significantly affect the amount of pension income or expense recorded by us in future periods . results of operations sales for fiscal year 2011 were $ 100.0 million , an increase of 1 % from fiscal year 2010 sales of $ 99.1 million . domestic operations sales for fiscal year 2011 were $ 84.1 million , a decrease of 4 % from the prior year . sales in the domestic marketplace reflect lower sales of small and mid-sized projects due to the economic slowdown . international operations sales for fiscal year 2011 were $ 15.9 million , an increase of 38 % from the prior year , as the international marketplace continued to recover from the economic slowdown . sales for fiscal year 2010 were $ 99.1 million , a decrease of 4.7 % from fiscal year 2009 sales of $ 104.0 million . domestic operations sales for the year were $ 87.6 million , a decrease of 3.0 % from the prior year . the sales decline resulted from lower sales of small and mid-sized projects , as customers deferred placing these orders due to the recession , and lower sales from international operations . international operations sales for the year were $ 11.5 million , a decrease of 16.0 % from the prior year . the international laboratory furniture marketplace was hit particularly hard by the economic slowdown , but appeared to show signs of recovery late in the year as quotation activity increased . our order backlog was $ 65.7 million at april 30 , 2011 , as compared to $ 68.9 million at april 30 , 2010 , and $ 62.7 million at april 30 , 2009. gross profit represented 19.3 % , 21.6 % , and 20.6 % of sales in fiscal years 2011 , 2010 , and 2009 , respectively . story_separator_special_tag the decrease in gross profit margin for fiscal year 2011 was primarily due to increased competitive pricing in the marketplace and higher costs for 10 steel and epoxy resin raw materials . the increase in gross profit margin in fiscal year 2010 from fiscal year 2009 was primarily due to savings from alternative sources of raw materials and components , cost improvements , and increased manufacturing efficiencies in the first half of the year associated with higher production volumes . operating expenses were $ 16.1 million , $ 15.6 million , and $ 14.3 million in fiscal years 2011 , 2010 , and 2009 , respectively , and 16.1 % , 15.7 % , and 13.7 % of sales , respectively . the increase in operating expenses in fiscal year 2011 as compared to fiscal year 2010 resulted primarily from an increase in operating expenses of $ 433,000 for expanded international operations , an increase of $ 189,000 in sales and marketing expenses , an increase of $ 129,000 in depreciation expense , and an increase of $ 104,000 in stock option expense . these increases were partially offset by a decrease in pension expense of $ 251,000 and a decrease in bad debt expense of $ 101,000. the increase in operating expenses for fiscal year 2010 as compared to fiscal year 2009 resulted primarily from an increase of $ 1.0 million in pension expense , an increase of $ 219,000 in sales and marketing expenses , and an increase of $ 98,000 in depreciation expense . the impact of these items was partially offset by a decrease of $ 596,000 in compensation earned under performance incentive plans . other income was $ 4,000 and $ 1,000 in fiscal years 2011 and 2010 , respectively . other expense was $ 28,000 in fiscal year 2009. interest expense was $ 199,000 , $ 157,000 , and $ 280,000 in fiscal years 2011 , 2010 , and 2009 , respectively . the increase in interest expense for fiscal year 2011 was due to higher levels of bank borrowings . the decrease in interest expense for fiscal year 2010 from fiscal year 2009 was primarily from lower levels of bank borrowings . income tax expense of $ 864,000 , or 29.2 % of pretax earnings , was recorded for fiscal year 2011. income tax expense of $ 1,921,000 , or 33.9 % of pretax earnings , was recorded for fiscal year 2010. income tax expense of $ 2,264,000 , or 33.4 % of pretax earnings , was recorded in fiscal year 2009. the effective tax rate for each of these years is lower than the statutory rate due to the favorable impact of tax rates for the company 's international subsidiaries and the impact of state and federal tax credits . the lower effective tax rate for fiscal year 2011 also reflects the fact that a greater portion of pretax earnings were attributable to international subsidiaries which have lower rates . net earnings attributable to the noncontrolling interest related to our two subsidiaries that are not 100 % owned by the company were $ 248,000 , $ 178,000 , and $ 265,000 , for fiscal years 2011 , 2010 , and 2009 , respectively . the changes in the net earnings attributable to the noncontrolling interest for each year were due to changes in the levels of net income of the subsidiaries . net earnings in fiscal year 2011 were $ 1,850,000 , or $ 0.72 per diluted share . net earnings in fiscal year 2010 were $ 3,572,000 , or $ 1.39 per diluted share . net earnings in fiscal year 2009 were $ 4,247,000 , or $ 1.66 per diluted share . story_separator_special_tag impact on the company 's consolidated financial position or results of operations . in october 2009 , the fasb issued asu 2009-13 , revenue recognition ( topic 605 )  multiple-deliverable revenue arrangements  a consensus of the fasb emerging issues task force. it updates the existing multiple-element revenue arrangements guidance currently included under fasb asc 605-25 , revenue recognition , multiple-element arrangements. the revised guidance primarily provides two significant changes : ( i ) eliminates the need for objective and reliable evidence of fair value for the undelivered element in order for a delivered item to be treated as a separate unit of accounting , and ( ii ) eliminates the residual method to allocate the arrangement consideration . in addition , the guidance expands the disclosure requirements for revenue recognition . asu 2009-13 is effective for fiscal years beginning on or after june 15 , 2010. the company adopted this standard effective may 1 , 2011. the company does not expect the adoption of this standard to have a significant impact on the company 's consolidated financial position or results of operations . in january 2010 , the fasb issued asu 2010-06 , fair value measurements and disclosures ( topic 820 )  improving disclosures about fair value measurements. this update requires the following new disclosures : ( i ) the amounts of significant transfer in and out of level 1 and level 2 fair value measurements and a description of the reasons for the transfer ; and ( ii ) a reconciliation for fair value measurements using significant unobservable inputs ( level 3 ) , including separate information about purchases , sales , issuance , and settlements . the update also clarifies existing requirements about fair value measurement disclosures and disclosures about inputs and valuation techniques . the new disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods , beginning after december 15 , 2009 , except for the reconciliation of level 3 activity , which is effective for fiscal years beginning after december 15 , 2010. the company adopted this guidance effective may 1 , 2010. the adoption of this standard did not have a significant impact on the company 's consolidated financial position or results of operations .

