delinquent receivables are written off based on individual credit evaluations and specific circumstances of the customer . inventory reserves the company establishes a reserve for estimated obsolescence or unmarketable inventory in an amount equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and current market conditions . as of december 31 , 2011 , the company has $ 2,699,000 accrued for inventory obsolescence and market reserves . if actual market conditions are less favorable than those estimated by management , additional inventory reserves may be required . environmental reserves as noted in note 5 to the consolidated financial statements included in item 8 of this form 10-k , the company has accrued $ 640,000 as of december 31 , 2011 , in environmental remediation costs which , in management 's best estimate , are sufficient to satisfy anticipated costs of known remediation requirements as outlined in note 5. expenditures related to costs currently accrued are not discounted to their present values and are expected to be made over the next three to four years . however , as a result of the evolving nature of the environmental regulations , the difficulty in estimating the extent and necessary remediation of environmental contamination , and the availability and application of technology , the estimated costs for future environmental compliance and remediation are subject to uncertainties and it is not possible to predict the amount or timing of future costs of environmental matters which may subsequently be determined . changes in information known to management or in applicable regulations may require the company to record additional remediation reserves . impairment of long-lived assets the company continually reviews the recoverability of the carrying value of long-lived assets . long-lived assets are reviewed for impairment when events or changes in circumstances , also referred to as “ triggering events ” , indicate that the carrying value of a long-lived asset or group of assets ( the “ assets ” ) may no longer be recoverable . triggering events include : a significant decline in the market price of the assets ; a significant adverse change in the operating use or physical condition of the assets ; a significant adverse change in legal factors or in the business climate impacting the assets ' value , including regulatory issues such as environmental actions ; the generation by the assets of historical cash flow losses combined with projected future cash flow losses ; or the expectation that the assets will be sold or disposed of significantly before the end of the useful life of the assets . the company concluded that there were no indications of impairment requiring further testing during the year ended december 31 , 2011 . 15 if the company concluded that , based on its review of current facts and circumstances , there were indications of impairment , testing of the applicable assets would be performed . the recoverability of the assets to be held and used is tested by comparing the carrying amount of the assets at the date of the test to the sum of the estimated future undiscounted cash flows expected to be generated by those assets over the remaining useful life of the assets . in estimating the future undiscounted cash flows , the company uses projections of cash flows directly associated with , and which are expected to arise as a direct result of , the use and eventual disposition of the assets . this approach requires significant judgments including the company 's projected net cash flows , which are derived using the most recent available estimate for the reporting unit containing the assets tested . several key assumptions would include periods of operation , projections of product pricing , production levels , product costs , market supply and demand , and inflation . if it is determined that the carrying amount of the assets are not recoverable , an impairment loss would be calculated equal to the excess of the carrying amount of the assets over their fair value . assets classified as held for sale are recorded at the lower of their carrying amount or fair value less cost to sell . assets to be disposed of other than by sale are classified as held and used until the assets are disposed or use has ceased . goodwill the company has goodwill of $ 1,355,000 recorded as part of its 1996 acquisition of manufacturers soap and chemical company , operating within the chemicals segment , and $ 1,000,000 recorded as part of its 2009 acquisition of ram-fab , inc. , operating within the metals segment . goodwill , which represents the excess of purchase price over fair value of net assets acquired , is tested for impairment at least on an annual basis . the initial step of the goodwill impairment test involves a comparison of the fair value of the reporting unit in which the goodwill is recorded , with its carrying amount . if the reporting unit 's fair value exceeds its carrying value , no impairment loss is recognized and the second step , which is a calculation of the impairment , is not performed . however , if the reporting unit 's carrying value exceeds its fair value , an impairment charge equal to the difference in the carrying value of the goodwill and the implied fair value of the goodwill is recorded . implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination . story_separator_special_tag selling , general and administrative expense increased $ 808,000 or 29 percent in 2011 when compared to 2010 , and increased to eight percent of sales in 2011 compared to seven percent in 2010. for the fourth quarter , selling , general and administrative expense was $ 1,433,000 in 2011 , an increase of $ 809,000 when compared to the same period of 2010. the increase in the reserve for potential uncollectable receivables in december , 2011 , as explained in the prior paragraph , resulted in the entire increase . comparison of 2010 to 2009 – specialty chemicals segment the specialty chemicals segment sales increased 30 percent for the year ended 2010 compared to 2009. gross profit for the year ended 2010 increased 28 percent to $ 6,739,000 , or 16 percent of sales , compared to a gross profit of $ 5,311,000 , or 16 percent of sales , for 2009. operating income increased 46 percent to $ 3,960,000 for the year ended 2010 compared to $ 2,722,000 earned in 2009. sales increased 17 percent to $ 10,066,000 for the fourth quarter of 2010 compared to $ 8,571,000 for the fourth quarter of 2009. gross profit for the fourth quarter of 2010 was $ 1,400,000 or 14 percent of sales , which approximated the fourth quarter of 2009 's total of $ 1,406,000 , or 16 percent of sales . operating income declined one percent to $ 777,000 for the fourth quarter of 2010 compared to $ 783,000 for the fourth quarter of 2009. the sales gain came from increases in the sulfated product line and additives for dust control and agricultural chemicals . contract manufacturing also contributed to the sales growth . the declines in gross profit and operating income for the fourth quarter of 2010 , when compared to the same period in 2009 , were caused primarily by our inability to pass on all of the increases in raw material costs , especially from naturally occurring fats and oils and petroleum derivatives . selling , general and administrative expense increased $ 190,000 or seven percent in 2010 compared to the 2009 amount , and decreased to seven percent of sales in 2010 from eight percent of sales in 2009. the increase resulted primarily from increased selling commissions from the increase in sales in 2010 compared to 2009 plus higher performance based bonuses for the current year . unallocated income and expense reference should be made to note 13 to the consolidated financial statements , included in item 8 of this form 10-k , for the schedule that includes these items . comparison of 2011 to 2010 – corporate corporate expenses for 2011 were $ 2,668,000 or two percent of sales , compared to $ 1,541,000 or one percent of sales , for 2010. this represents an increase of $ 1,127,000 or 73 percent . the most significant contributor to the increase was higher performance based bonuses for select corporate employees which increased $ 622,000 during 2011 compared to 2010. the company also experienced higher stock option compensation costs and consulting fees , partially offset by lower professional fees . during the second quarter of 2011 , the company relocated its corporate office and the company was no longer able to provide administrative services to the spartanburg manufacturing facility which the company sold in 2009. this resulted in the loss of reimbursement for the costs of providing these functions to the buyer of this facility during 2011 along with higher office rent expense . comparison of 2010 to 2009 – corporate corporate expense decreased $ 467,000 , or 23 percent , to $ 1,541,000 , or one percent of sales , for 2010 , compared to $ 2,008,000 , or two percent of sales , in 2009. the decrease resulted primarily from a decrease in environmental expenses that were eliminated by the sale of the spartanburg manufacturing facility at the end of the third quarter of 2009. there was no environmental expense during 2010 , compared to $ 343,000 in 2009. the remainder of the decrease resulted from lower performance based bonuses for 2010. higher bonuses were awarded in 2009 due to the ram-fab acquisition and manufacturing facility dispositions ( see note 16 and note 17 ) . interest expense in 2010 decreased $ 165,000 from 2009 as a result of lower outstanding debt balances 21 during 2010 compared to 2009. other expense for the prior year reflects a $ 150,000 medical settlement with a former employee of the company 's augusta , georgia chemical operation which was closed in 2001. no similar charge occurred in the current year . contractual obligations and other commitments as of december 31 , 2011 , the company 's contractual obligations and other commitments were as follows : ( amounts in thousands ) payment obligations for the year ended total 2012 2013 2014 2015 2016 thereafter obligations : revolving credit facility $ 8,650 $ - $ - $ 8,650 $ - $ - $ - interest payments 385 154 154 77 - - - operating leases 645 153 148 146 144 54 - purchase obligations - - - - - - - deferred compensation ( 1 ) 478 72 71 71 21 21 222 total $ 10,158 $ 379 $ 373 $ 8,944 $ 165 $ 75 $ 222 ( 1 ) for a description of the deferred compensation obligation , see note 6 to the consolidated financial statements included in item 8 of this form 10-k. current conditions and outlook the metals segment 's business is highly dependent on its customers ' capital expenditures which have begun to show some improvement . excess capacity in the pipe manufacturing industry continues to present a difficult operating environment . stainless steel surcharges , which affect the cost of raw materials and selling prices declined in may 2011 through january 2012 but have been increasing for february and march of 2012. these recent increases should generate customer interest to purchase inventory in

liquidity and capital resources cash flows used in operating activities during 2011 and 2010 totaled $ 3,858,000 and $ 6,048,000 , an improvement in cash flows of $ 2,190,000. cash flows in 2011 were generated from net income totaling 16 $ 8,456,000 before depreciation and amortization expense of $ 2,659,000. cash flows were adversely affected by an $ 8,710,000 increase in inventories in 2011 , as year-end balances increased , net of reserves , from $ 34,353,000 at the end of 2010 to $ 43,063,000 at the end of 2011. substantially all of the increase occurred in the metals segment to support higher 2012 sales projections , a sales mix shift to higher cost special alloy products along with the company deciding to begin stocking select special alloy finished goods products to be responsive to projected customer demands . accounts receivable increased by $ 6,609,000 in 2011 , net of reserves , as a result of the higher metals segment sales activity during the fourth quarter of 2011 compared to the same period of 2010 , combined with an increased number of days sales outstanding for fabrication sales . higher priced special alloy inventory purchases made during the fourth quarter of 2011 increased the accounts payable balance at the end of 2011 by $ 2,369,000 when compared to the 2010 year-end balance .


 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 cash flows used in operating activities during 2011 and 2010 totaled $ 3,858,000 and $ 6,048,000 , an improvement in cash flows of $ 2,190,000. cash flows in 2011 were generated from net income totaling 16 $ 8,456,000 before depreciation and amortization expense of $ 2,659,000. cash flows were adversely affected by an $ 8,710,000 increase in inventories in 2011 , as year-end balances increased , net of reserves , from $ 34,353,000 at the end of 2010 to $ 43,063,000 at the end of 2011. substantially all of the increase occurred in the metals segment to support higher 2012 sales projections , a sales mix shift to higher cost special alloy products along with the company deciding to begin stocking select special alloy finished goods products to be responsive to projected customer demands . accounts receivable increased by $ 6,609,000 in 2011 , net of reserves , as a result of the higher metals segment sales activity during the fourth quarter of 2011 compared to the same period of 2010 , combined with an increased number of days sales outstanding for fabrication sales . higher priced special alloy inventory purchases made during the fourth quarter of 2011 increased the accounts payable balance at the end of 2011 by $ 2,369,000 when compared to the 2010 year-end balance .
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 Suspicious Activity Report : delinquent receivables are written off based on individual credit evaluations and specific circumstances of the customer . inventory reserves the company establishes a reserve for estimated obsolescence or unmarketable inventory in an amount equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and current market conditions . as of december 31 , 2011 , the company has $ 2,699,000 accrued for inventory obsolescence and market reserves . if actual market conditions are less favorable than those estimated by management , additional inventory reserves may be required . environmental reserves as noted in note 5 to the consolidated financial statements included in item 8 of this form 10-k , the company has accrued $ 640,000 as of december 31 , 2011 , in environmental remediation costs which , in management 's best estimate , are sufficient to satisfy anticipated costs of known remediation requirements as outlined in note 5. expenditures related to costs currently accrued are not discounted to their present values and are expected to be made over the next three to four years . however , as a result of the evolving nature of the environmental regulations , the difficulty in estimating the extent and necessary remediation of environmental contamination , and the availability and application of technology , the estimated costs for future environmental compliance and remediation are subject to uncertainties and it is not possible to predict the amount or timing of future costs of environmental matters which may subsequently be determined . changes in information known to management or in applicable regulations may require the company to record additional remediation reserves . impairment of long-lived assets the company continually reviews the recoverability of the carrying value of long-lived assets . long-lived assets are reviewed for impairment when events or changes in circumstances , also referred to as “ triggering events ” , indicate that the carrying value of a long-lived asset or group of assets ( the “ assets ” ) may no longer be recoverable . triggering events include : a significant decline in the market price of the assets ; a significant adverse change in the operating use or physical condition of the assets ; a significant adverse change in legal factors or in the business climate impacting the assets ' value , including regulatory issues such as environmental actions ; the generation by the assets of historical cash flow losses combined with projected future cash flow losses ; or the expectation that the assets will be sold or disposed of significantly before the end of the useful life of the assets . the company concluded that there were no indications of impairment requiring further testing during the year ended december 31 , 2011 . 15 if the company concluded that , based on its review of current facts and circumstances , there were indications of impairment , testing of the applicable assets would be performed . the recoverability of the assets to be held and used is tested by comparing the carrying amount of the assets at the date of the test to the sum of the estimated future undiscounted cash flows expected to be generated by those assets over the remaining useful life of the assets . in estimating the future undiscounted cash flows , the company uses projections of cash flows directly associated with , and which are expected to arise as a direct result of , the use and eventual disposition of the assets . this approach requires significant judgments including the company 's projected net cash flows , which are derived using the most recent available estimate for the reporting unit containing the assets tested . several key assumptions would include periods of operation , projections of product pricing , production levels , product costs , market supply and demand , and inflation . if it is determined that the carrying amount of the assets are not recoverable , an impairment loss would be calculated equal to the excess of the carrying amount of the assets over their fair value . assets classified as held for sale are recorded at the lower of their carrying amount or fair value less cost to sell . assets to be disposed of other than by sale are classified as held and used until the assets are disposed or use has ceased . goodwill the company has goodwill of $ 1,355,000 recorded as part of its 1996 acquisition of manufacturers soap and chemical company , operating within the chemicals segment , and $ 1,000,000 recorded as part of its 2009 acquisition of ram-fab , inc. , operating within the metals segment . goodwill , which represents the excess of purchase price over fair value of net assets acquired , is tested for impairment at least on an annual basis . the initial step of the goodwill impairment test involves a comparison of the fair value of the reporting unit in which the goodwill is recorded , with its carrying amount . if the reporting unit 's fair value exceeds its carrying value , no impairment loss is recognized and the second step , which is a calculation of the impairment , is not performed . however , if the reporting unit 's carrying value exceeds its fair value , an impairment charge equal to the difference in the carrying value of the goodwill and the implied fair value of the goodwill is recorded . implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination . story_separator_special_tag selling , general and administrative expense increased $ 808,000 or 29 percent in 2011 when compared to 2010 , and increased to eight percent of sales in 2011 compared to seven percent in 2010. for the fourth quarter , selling , general and administrative expense was $ 1,433,000 in 2011 , an increase of $ 809,000 when compared to the same period of 2010. the increase in the reserve for potential uncollectable receivables in december , 2011 , as explained in the prior paragraph , resulted in the entire increase . comparison of 2010 to 2009 – specialty chemicals segment the specialty chemicals segment sales increased 30 percent for the year ended 2010 compared to 2009. gross profit for the year ended 2010 increased 28 percent to $ 6,739,000 , or 16 percent of sales , compared to a gross profit of $ 5,311,000 , or 16 percent of sales , for 2009. operating income increased 46 percent to $ 3,960,000 for the year ended 2010 compared to $ 2,722,000 earned in 2009. sales increased 17 percent to $ 10,066,000 for the fourth quarter of 2010 compared to $ 8,571,000 for the fourth quarter of 2009. gross profit for the fourth quarter of 2010 was $ 1,400,000 or 14 percent of sales , which approximated the fourth quarter of 2009 's total of $ 1,406,000 , or 16 percent of sales . operating income declined one percent to $ 777,000 for the fourth quarter of 2010 compared to $ 783,000 for the fourth quarter of 2009. the sales gain came from increases in the sulfated product line and additives for dust control and agricultural chemicals . contract manufacturing also contributed to the sales growth . the declines in gross profit and operating income for the fourth quarter of 2010 , when compared to the same period in 2009 , were caused primarily by our inability to pass on all of the increases in raw material costs , especially from naturally occurring fats and oils and petroleum derivatives . selling , general and administrative expense increased $ 190,000 or seven percent in 2010 compared to the 2009 amount , and decreased to seven percent of sales in 2010 from eight percent of sales in 2009. the increase resulted primarily from increased selling commissions from the increase in sales in 2010 compared to 2009 plus higher performance based bonuses for the current year . unallocated income and expense reference should be made to note 13 to the consolidated financial statements , included in item 8 of this form 10-k , for the schedule that includes these items . comparison of 2011 to 2010 – corporate corporate expenses for 2011 were $ 2,668,000 or two percent of sales , compared to $ 1,541,000 or one percent of sales , for 2010. this represents an increase of $ 1,127,000 or 73 percent . the most significant contributor to the increase was higher performance based bonuses for select corporate employees which increased $ 622,000 during 2011 compared to 2010. the company also experienced higher stock option compensation costs and consulting fees , partially offset by lower professional fees . during the second quarter of 2011 , the company relocated its corporate office and the company was no longer able to provide administrative services to the spartanburg manufacturing facility which the company sold in 2009. this resulted in the loss of reimbursement for the costs of providing these functions to the buyer of this facility during 2011 along with higher office rent expense . comparison of 2010 to 2009 – corporate corporate expense decreased $ 467,000 , or 23 percent , to $ 1,541,000 , or one percent of sales , for 2010 , compared to $ 2,008,000 , or two percent of sales , in 2009. the decrease resulted primarily from a decrease in environmental expenses that were eliminated by the sale of the spartanburg manufacturing facility at the end of the third quarter of 2009. there was no environmental expense during 2010 , compared to $ 343,000 in 2009. the remainder of the decrease resulted from lower performance based bonuses for 2010. higher bonuses were awarded in 2009 due to the ram-fab acquisition and manufacturing facility dispositions ( see note 16 and note 17 ) . interest expense in 2010 decreased $ 165,000 from 2009 as a result of lower outstanding debt balances 21 during 2010 compared to 2009. other expense for the prior year reflects a $ 150,000 medical settlement with a former employee of the company 's augusta , georgia chemical operation which was closed in 2001. no similar charge occurred in the current year . contractual obligations and other commitments as of december 31 , 2011 , the company 's contractual obligations and other commitments were as follows : ( amounts in thousands ) payment obligations for the year ended total 2012 2013 2014 2015 2016 thereafter obligations : revolving credit facility $ 8,650 $ - $ - $ 8,650 $ - $ - $ - interest payments 385 154 154 77 - - - operating leases 645 153 148 146 144 54 - purchase obligations - - - - - - - deferred compensation ( 1 ) 478 72 71 71 21 21 222 total $ 10,158 $ 379 $ 373 $ 8,944 $ 165 $ 75 $ 222 ( 1 ) for a description of the deferred compensation obligation , see note 6 to the consolidated financial statements included in item 8 of this form 10-k. current conditions and outlook the metals segment 's business is highly dependent on its customers ' capital expenditures which have begun to show some improvement . excess capacity in the pipe manufacturing industry continues to present a difficult operating environment . stainless steel surcharges , which affect the cost of raw materials and selling prices declined in may 2011 through january 2012 but have been increasing for february and march of 2012. these recent increases should generate customer interest to purchase inventory in

