in addition , during the fourth quarter of 2020 , the company experienced an impact to gross margin from freight surcharges related to increased digital penetration across the retail industry resulting from the covid-19 pandemic . additionally , social distancing measures or changes in consumer spending behaviors due to covid-19 may continue to impact store traffic which could result in a loss of sales and profit . as our stores reopened , we implemented numerous social distancing and safety measures which remain in place . these include providing personal protective equipment to our associates , implementing a more rigorous cleaning process , 22 including enhanced cleaning of high touch surfaces throughout the day , installing protective barriers at all registers , and requiring associates and customers to wear face coverings while inside our stores . to encourage social distancing , we installed social distancing signage and markers throughout the store , closed our fitting rooms , widened aisles by removing in-aisle fixtures , relocated amazon returns to a separate area of the store , and are limiting occupancy in stores as appropriate . we also implemented a new process for handling merchandise returns , reduced store operating hours , and are providing dedicated shopping hours for at-risk individuals . the chart below details costs that we believe are directly attributable to covid-19 : ( dollars in millions ) twelve months ended description classification january 30 , 2021 inventory write-downs cost of merchandise sold $ 187 net compensation and benefits selling , general , and administrative 73 other costs selling , general , and administrative 55 asset write-offs and other impairments , store closing , and other costs 53 total $ 368 in response to covid-19 , we took the following actions to preserve financial liquidity and flexibility during fiscal 2020 : managed inventory receipts meaningfully lower , significantly reduced expenses across all areas of the business including marketing , technology , operations , and payroll , reduced capital expenditures 61 % , suspended share repurchase program , suspended regular quarterly cash dividend beginning in the second quarter of 2020 , replaced and upsized the unsecured $ 1.0 billion revolver with a $ 1.5 billion secured facility , of which all was fully available for utilization as of year-end , issued $ 600 million of 9.5 % notes due 2025 , and completed a sale leaseback for our san bernardino e-commerce fulfillment and distribution center which generated net proceeds of $ 193 million after fees and resulted in a $ 127 million gain . we can not estimate with certainty the length or severity of this pandemic , or the extent to which the disruption may materially impact our consolidated financial statements . for fiscal 2020 , covid-19 had a material adverse effect on our business , financial condition , and results of operations . see `` results of operations `` and `` liquidity and capital resources `` for additional details about our financial results . our vision and strategy as part of our continued efforts to stay ahead in the rapidly changing retail environment , we introduced a new strategic framework in october 2020. the company 's new vision is to be “ the most trusted retailer of choice for the active and casual lifestyle . ” this new strategy is designed to create long-term shareholder value and has four key focus areas : driving top line growth , expanding operating margin , maintaining disciplined capital management , and sustaining an agile , accountable , and inclusive culture . 23 driving top line growth our initiatives include expanding kohl 's active and outdoor business to at least 30 % of net sales , reigniting growth in the women 's business , building a sizable beauty business , driving category productivity and inventory turn , and capturing market share from the retail industry disruption . we have already taken significant steps in these areas , including forming a new major long-term strategic partnership with sephora , the largest prestige beauty retailer in the world , where sephora will become kohl 's exclusive beauty partner . we plan for this partnership to bring the “ sephora at kohl 's ” experience to 200 stores and online beginning in fall 2021 , and to at least 850 locations by 2023. we expect this strategic partnership to drive incremental customer traffic , significantly grow the company 's beauty business , and positively impact sales across other categories . our loyalty and value efforts include simplifying the value delivered to our customers and maintaining our industry-leading loyalty program , which includes kohl 's rewards and the kohl 's card . we will also continue to offer a compelling and differentiated omnichannel experience through modernized stores and an enhanced digital platform . expanding operating margin we have established a goal of expanding the company 's operating margin with a multi-year plan of achieving 7 % to 8 % . to achieve that goal , we are focused on driving both gross margin improvement and selling , general , and administrative expense leverage . our gross margin initiatives include disciplined inventory management and increased inventory turn , optimized pricing and promotion strategies , efficient sourcing , and a transformed end-to-end supply chain . our initiatives to drive selling , general , and administrative expense efficiency are focused on store expenses , marketing , technology , and corporate expenses . maintaining disciplined capital management we are committed to prudent balance sheet management with the long-term objective of sustaining kohl 's investment grade credit rating . the company has a long history of strong cash flow generation , investing in the business , and returning significant capital to shareholders—all of which will remain important in the future . sustaining an agile , accountable , and inclusive culture fostering a diverse , equitable , and inclusive environment for kohl 's associates , customers , and suppliers is an important focus of ours . story_separator_special_tag we do not have any arrangements or relationships with entities that are not consolidated into the financial statements that are reasonably likely to materially affect our financial condition , liquidity , results of operations , or capital resources . 35 critical accounting policies and estimates the preparation of financial statements in conformity with accounting principles generally accepted in the united states requires us to make estimates and assumptions that affect reported amounts . management has discussed the development , selection , and disclosure of these estimates and assumptions with the audit committee of our board of directors . retail inventory method and inventory valuation merchandise inventories are valued at the lower of cost or market using the retail inventory method ( “ rim ” ) . under rim , the valuation of inventory at cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the retail value of inventory . rim is an averaging method that has been widely used in the retail industry due to its practicality . the use of rim will result in inventory being valued at the lower of cost or market since permanent markdowns are taken as a reduction of the retail value of inventories . a reserve is recorded if the future estimated selling price is less than cost . rim inherently requires management judgment and estimates , such as the amount and timing of permanent markdowns to clear unproductive or slow-moving inventory , which may impact the ending inventory valuation as well as gross margin . factors considered in the determination of permanent markdowns include current and anticipated demand , customer preferences , age of the merchandise , fashion trends , and weather conditions . inventory shrinkage is estimated as a percent of sales for the period between the last physical inventory count and the balance sheet date . shrink is the difference between the recorded amount of inventory and the physical inventory . we perform an annual physical inventory count at the majority of our stores , e-commerce fulfillment centers , and distribution centers . the shrinkage rate from the most recent physical inventory , in combination with current events and historical experience , is used as the standard for the shrinkage accrual rate for the next inventory cycle . historically , our actual physical inventory count results have shown our estimates to be reliable . vendor allowances we frequently receive allowances from our vendors for markdowns that we have taken in order to sell the vendor 's merchandise and or to support gross margins earned on those sales . this markdown support generally relates to sold inventory or permanent markdowns and , accordingly , is reflected as a reduction to cost of merchandise sold . markdown support related to merchandise that has not yet been sold is recorded in inventory . we also receive support from vendors for marketing and other costs that we have incurred to sell the vendors ' merchandise . to the extent the reimbursements are for specific , incremental , and identifiable costs incurred to sell the vendor 's products and do not exceed the costs incurred , they are recognized as a reduction of selling , general , and administrative expenses . if these criteria are not met , the support is recorded in inventory and reflected as a reduction of costs of merchandise sold when the related merchandise is sold . insurance reserve estimates we are primarily self-insured for costs related to workers ' compensation , general liability , and employee-related health care benefits . we use a third-party actuary to estimate the liabilities associated with these risks . the actuary considers historical claims experience , demographic and severity factors , health care trends , and actuarial assumptions to estimate the liabilities associated with these risks . historically , our actuarial estimates have not been materially different from actual results . 36 impairment of long-lived assets we review our long-lived assets for impairment when events or changes in circumstances , such as decisions to close a store or significant cash flow losses , indicate the carrying value of the asset may not be recoverable . all long-lived assets are reviewed for impairment at least annually . if our evaluations , which are performed on an undiscounted cash flow basis , indicate that the carrying amount of the asset may not be recoverable , the potential impairment is measured as the excess of carrying value over the fair value of the impaired asset . identifying impaired assets and quantifying the related impairment loss , if any , requires significant estimates by management . the most significant of these estimates is the cash flow expected to result from the use and eventual disposition of the asset . when determining the stream of projected future cash flows associated with an individual store , management estimates future store performance including sales , gross margin , and controllable expenses , such as store payroll and occupancy expense . projected cash flows must be estimated for future periods throughout the remaining life of the property , which may be as many as 40 years in the future . the accuracy of these estimates will be impacted by a number of factors including general economic conditions , changes in competitive landscape and our ability to effectively manage the operations of the store . income taxes we regularly evaluate the likelihood of realizing the benefit for income tax positions we have taken in various federal and state filings by considering all relevant facts , circumstances , and information available to us . if we believe it is more likely than not that our position will be sustained , we recognize a benefit at the largest amount which we believe is cumulatively greater than 50 % likely to be realized . unrecognized tax benefits require significant management judgment regarding applicable statutes and their related interpretation , the status of various income tax audits , and our particular facts and circumstances

cash uses cash sources operational needs , including salaries , rent , taxes , and other operating costs capital expenditures inventory share repurchases dividend payments debt reduction cash flow from operations short-term trade credit , in the form of extended payment terms line of credit under our revolving credit facility issuance of debt our working capital and inventory levels typically build throughout the fall , peaking during the november and december holiday selling season . due to covid-19 , typical working capital and inventory patterns did not occur in 2020. the following table includes cash balances and changes : replace_table_token_9_th ( a ) non-gaap financial measure operating activities operating activities generated cash of $ 1.3 billion in 2020 compared to cash of $ 1.7 billion in 2019. the decrease was primarily attributable to the decline in net income resulting from decreased sales due to the temporary nationwide store closures due to covid-19 and changes in other current and long-term assets offset by the decrease in merchandise inventories . operating activities generated cash of $ 1.7 billion in 2019 compared to cash of $ 2.1 billion in 2018. the decrease was primarily attributable to lower net income and changes in accrued and other operating liabilities . investing activities net cash used in investing activities decreased $ 700 million to $ 137 million in 2020. the decrease was due to reductions in capital spending as part of our response to covid-19 as well as the proceeds from the sale of real estate . net cash used in investing activities increased $ 265 million to $ 837 million in 2019. the increase was primarily due to the investments in our sixth e-commerce fulfillment center , store strategies that include new stores and capital improvements to existing stores , and technology investments . 31 the fo llowing chart summarizes capital expenditures by major category : financing activities financing activities generated cash of $ 347 million in 2020 compared to $ 1.0 billion used in 2019. in march 2020 , we fully drew down our $ 1.0 billion senior unsecured revolver .


 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.
     ```cash uses cash sources operational needs , including salaries , rent , taxes , and other operating costs capital expenditures inventory share repurchases dividend payments debt reduction cash flow from operations short-term trade credit , in the form of extended payment terms line of credit under our revolving credit facility issuance of debt our working capital and inventory levels typically build throughout the fall , peaking during the november and december holiday selling season . due to covid-19 , typical working capital and inventory patterns did not occur in 2020. the following table includes cash balances and changes : replace_table_token_9_th ( a ) non-gaap financial measure operating activities operating activities generated cash of $ 1.3 billion in 2020 compared to cash of $ 1.7 billion in 2019. the decrease was primarily attributable to the decline in net income resulting from decreased sales due to the temporary nationwide store closures due to covid-19 and changes in other current and long-term assets offset by the decrease in merchandise inventories . operating activities generated cash of $ 1.7 billion in 2019 compared to cash of $ 2.1 billion in 2018. the decrease was primarily attributable to lower net income and changes in accrued and other operating liabilities . investing activities net cash used in investing activities decreased $ 700 million to $ 137 million in 2020. the decrease was due to reductions in capital spending as part of our response to covid-19 as well as the proceeds from the sale of real estate . net cash used in investing activities increased $ 265 million to $ 837 million in 2019. the increase was primarily due to the investments in our sixth e-commerce fulfillment center , store strategies that include new stores and capital improvements to existing stores , and technology investments . 31 the fo llowing chart summarizes capital expenditures by major category : financing activities financing activities generated cash of $ 347 million in 2020 compared to $ 1.0 billion used in 2019. in march 2020 , we fully drew down our $ 1.0 billion senior unsecured revolver .
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 Suspicious Activity Report : in addition , during the fourth quarter of 2020 , the company experienced an impact to gross margin from freight surcharges related to increased digital penetration across the retail industry resulting from the covid-19 pandemic . additionally , social distancing measures or changes in consumer spending behaviors due to covid-19 may continue to impact store traffic which could result in a loss of sales and profit . as our stores reopened , we implemented numerous social distancing and safety measures which remain in place . these include providing personal protective equipment to our associates , implementing a more rigorous cleaning process , 22 including enhanced cleaning of high touch surfaces throughout the day , installing protective barriers at all registers , and requiring associates and customers to wear face coverings while inside our stores . to encourage social distancing , we installed social distancing signage and markers throughout the store , closed our fitting rooms , widened aisles by removing in-aisle fixtures , relocated amazon returns to a separate area of the store , and are limiting occupancy in stores as appropriate . we also implemented a new process for handling merchandise returns , reduced store operating hours , and are providing dedicated shopping hours for at-risk individuals . the chart below details costs that we believe are directly attributable to covid-19 : ( dollars in millions ) twelve months ended description classification january 30 , 2021 inventory write-downs cost of merchandise sold $ 187 net compensation and benefits selling , general , and administrative 73 other costs selling , general , and administrative 55 asset write-offs and other impairments , store closing , and other costs 53 total $ 368 in response to covid-19 , we took the following actions to preserve financial liquidity and flexibility during fiscal 2020 : managed inventory receipts meaningfully lower , significantly reduced expenses across all areas of the business including marketing , technology , operations , and payroll , reduced capital expenditures 61 % , suspended share repurchase program , suspended regular quarterly cash dividend beginning in the second quarter of 2020 , replaced and upsized the unsecured $ 1.0 billion revolver with a $ 1.5 billion secured facility , of which all was fully available for utilization as of year-end , issued $ 600 million of 9.5 % notes due 2025 , and completed a sale leaseback for our san bernardino e-commerce fulfillment and distribution center which generated net proceeds of $ 193 million after fees and resulted in a $ 127 million gain . we can not estimate with certainty the length or severity of this pandemic , or the extent to which the disruption may materially impact our consolidated financial statements . for fiscal 2020 , covid-19 had a material adverse effect on our business , financial condition , and results of operations . see `` results of operations `` and `` liquidity and capital resources `` for additional details about our financial results . our vision and strategy as part of our continued efforts to stay ahead in the rapidly changing retail environment , we introduced a new strategic framework in october 2020. the company 's new vision is to be “ the most trusted retailer of choice for the active and casual lifestyle . ” this new strategy is designed to create long-term shareholder value and has four key focus areas : driving top line growth , expanding operating margin , maintaining disciplined capital management , and sustaining an agile , accountable , and inclusive culture . 23 driving top line growth our initiatives include expanding kohl 's active and outdoor business to at least 30 % of net sales , reigniting growth in the women 's business , building a sizable beauty business , driving category productivity and inventory turn , and capturing market share from the retail industry disruption . we have already taken significant steps in these areas , including forming a new major long-term strategic partnership with sephora , the largest prestige beauty retailer in the world , where sephora will become kohl 's exclusive beauty partner . we plan for this partnership to bring the “ sephora at kohl 's ” experience to 200 stores and online beginning in fall 2021 , and to at least 850 locations by 2023. we expect this strategic partnership to drive incremental customer traffic , significantly grow the company 's beauty business , and positively impact sales across other categories . our loyalty and value efforts include simplifying the value delivered to our customers and maintaining our industry-leading loyalty program , which includes kohl 's rewards and the kohl 's card . we will also continue to offer a compelling and differentiated omnichannel experience through modernized stores and an enhanced digital platform . expanding operating margin we have established a goal of expanding the company 's operating margin with a multi-year plan of achieving 7 % to 8 % . to achieve that goal , we are focused on driving both gross margin improvement and selling , general , and administrative expense leverage . our gross margin initiatives include disciplined inventory management and increased inventory turn , optimized pricing and promotion strategies , efficient sourcing , and a transformed end-to-end supply chain . our initiatives to drive selling , general , and administrative expense efficiency are focused on store expenses , marketing , technology , and corporate expenses . maintaining disciplined capital management we are committed to prudent balance sheet management with the long-term objective of sustaining kohl 's investment grade credit rating . the company has a long history of strong cash flow generation , investing in the business , and returning significant capital to shareholders—all of which will remain important in the future . sustaining an agile , accountable , and inclusive culture fostering a diverse , equitable , and inclusive environment for kohl 's associates , customers , and suppliers is an important focus of ours . story_separator_special_tag we do not have any arrangements or relationships with entities that are not consolidated into the financial statements that are reasonably likely to materially affect our financial condition , liquidity , results of operations , or capital resources . 35 critical accounting policies and estimates the preparation of financial statements in conformity with accounting principles generally accepted in the united states requires us to make estimates and assumptions that affect reported amounts . management has discussed the development , selection , and disclosure of these estimates and assumptions with the audit committee of our board of directors . retail inventory method and inventory valuation merchandise inventories are valued at the lower of cost or market using the retail inventory method ( “ rim ” ) . under rim , the valuation of inventory at cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the retail value of inventory . rim is an averaging method that has been widely used in the retail industry due to its practicality . the use of rim will result in inventory being valued at the lower of cost or market since permanent markdowns are taken as a reduction of the retail value of inventories . a reserve is recorded if the future estimated selling price is less than cost . rim inherently requires management judgment and estimates , such as the amount and timing of permanent markdowns to clear unproductive or slow-moving inventory , which may impact the ending inventory valuation as well as gross margin . factors considered in the determination of permanent markdowns include current and anticipated demand , customer preferences , age of the merchandise , fashion trends , and weather conditions . inventory shrinkage is estimated as a percent of sales for the period between the last physical inventory count and the balance sheet date . shrink is the difference between the recorded amount of inventory and the physical inventory . we perform an annual physical inventory count at the majority of our stores , e-commerce fulfillment centers , and distribution centers . the shrinkage rate from the most recent physical inventory , in combination with current events and historical experience , is used as the standard for the shrinkage accrual rate for the next inventory cycle . historically , our actual physical inventory count results have shown our estimates to be reliable . vendor allowances we frequently receive allowances from our vendors for markdowns that we have taken in order to sell the vendor 's merchandise and or to support gross margins earned on those sales . this markdown support generally relates to sold inventory or permanent markdowns and , accordingly , is reflected as a reduction to cost of merchandise sold . markdown support related to merchandise that has not yet been sold is recorded in inventory . we also receive support from vendors for marketing and other costs that we have incurred to sell the vendors ' merchandise . to the extent the reimbursements are for specific , incremental , and identifiable costs incurred to sell the vendor 's products and do not exceed the costs incurred , they are recognized as a reduction of selling , general , and administrative expenses . if these criteria are not met , the support is recorded in inventory and reflected as a reduction of costs of merchandise sold when the related merchandise is sold . insurance reserve estimates we are primarily self-insured for costs related to workers ' compensation , general liability , and employee-related health care benefits . we use a third-party actuary to estimate the liabilities associated with these risks . the actuary considers historical claims experience , demographic and severity factors , health care trends , and actuarial assumptions to estimate the liabilities associated with these risks . historically , our actuarial estimates have not been materially different from actual results . 36 impairment of long-lived assets we review our long-lived assets for impairment when events or changes in circumstances , such as decisions to close a store or significant cash flow losses , indicate the carrying value of the asset may not be recoverable . all long-lived assets are reviewed for impairment at least annually . if our evaluations , which are performed on an undiscounted cash flow basis , indicate that the carrying amount of the asset may not be recoverable , the potential impairment is measured as the excess of carrying value over the fair value of the impaired asset . identifying impaired assets and quantifying the related impairment loss , if any , requires significant estimates by management . the most significant of these estimates is the cash flow expected to result from the use and eventual disposition of the asset . when determining the stream of projected future cash flows associated with an individual store , management estimates future store performance including sales , gross margin , and controllable expenses , such as store payroll and occupancy expense . projected cash flows must be estimated for future periods throughout the remaining life of the property , which may be as many as 40 years in the future . the accuracy of these estimates will be impacted by a number of factors including general economic conditions , changes in competitive landscape and our ability to effectively manage the operations of the store . income taxes we regularly evaluate the likelihood of realizing the benefit for income tax positions we have taken in various federal and state filings by considering all relevant facts , circumstances , and information available to us . if we believe it is more likely than not that our position will be sustained , we recognize a benefit at the largest amount which we believe is cumulatively greater than 50 % likely to be realized . unrecognized tax benefits require significant management judgment regarding applicable statutes and their related interpretation , the status of various income tax audits , and our particular facts and circumstances

