on an on-going basis , we evaluate our estimates and judgments , including those related to revenue recognition , allowances for sales returns and doubtful accounts , inventory valuation , our review for impairment of long-lived assets , intangible assets and goodwill , business combinations , income taxes , stock-based compensation expense and performance-based common stock warrants . actual results may differ from these judgments and estimates , and they may be adjusted as more information becomes available . any adjustment may be significant and may have a material impact on our consolidated financial position or results of operations . an accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made , if different estimates reasonably may have been used , or if changes in the estimate that are reasonably likely to occur may materially impact the financial statements . management believes the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements . in addition to the accounting policies mentioned below , see `` item 8. financial statements and supplementary data — notes to consolidated financial statements — note 2 `` for other significant accounting policies . revenue recognition we recognize revenue on the sale of products when title of the goods has transferred , there is persuasive evidence of an arrangement ( such as a purchase order from the customer ) , the sales price is fixed or determinable and collectability is reasonably assured . a provision is recorded for estimated sales returns and allowances and is deducted from gross sales to arrive at net sales in the period the related revenue is recorded . these estimates are based on historical sales returns and allowances , analysis of credit memo data and other known factors . actual returns and claims in any future period are inherently uncertain and thus may differ from our estimates . if actual or expected future returns and claims are significantly greater or lower than the reserves that we have established , we will record a reduction or increase to net revenues in the period in which we make such a determination . we accrue for discounts and rebates based on historical experience and our expectations regarding future sales to our customers . these accruals are recorded as a reduction to sales in the same period as the related revenues . changes in such accruals may be required if future rebates and incentives differ from our estimates . revenue for the sale of tooling is recognized when the related tooling has been provided , customer acceptance documentation has been obtained , the sales price is fixed or determinable and collectability is reasonably assured . we generate service revenue , which is paid monthly , as a result of providing consumer support programs to some of our customers through our call centers . these service revenues are recognized when services are performed , persuasive evidence of an arrangement exists ( such as when a signed agreement is received from the customer ) , the sales price is fixed or determinable , and collectability is reasonably assured . we license our intellectual property including our patented technologies , trademarks , and database of control codes . when our license fees are paid on a per unit basis we record license revenue when our customers ship a product incorporating our intellectual property , persuasive evidence of an arrangement exists , the sales price is fixed or determinable , and collectability is reasonably assured . when a fixed upfront license fee is received in exchange for the delivery of a particular database of infrared codes that represents the culmination of the earnings process , we record revenues when delivery has occurred , persuasive evidence of an arrangement exists , the sales price is fixed or determinable and collectability is reasonably assured . revenue for term license fees is recognized on a straight-line basis over the effective term of the license when we can not reliably predict in which periods , within the term of the license , the licensee will benefit from the use of our patented inventions . allowance for doubtful accounts we maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make payments for products sold or services rendered . the allowance for doubtful accounts is estimated based on a variety of factors , including credit reviews , historical experience , length of time receivables are past due , current economic trends and changes in customer payment behavior . we also record specific provisions for individual accounts when we become aware of a customer 's inability to meet its financial obligations to us , such as in the case of bankruptcy filings or deterioration in the customer 's operating results or financial position . our historical reserves have been sufficient to cover losses from uncollectible accounts . however , because we can not predict future changes in the financial stability of our customers , actual future losses from uncollectible accounts may differ from our estimates and may have a material effect on our consolidated financial position , results of operations and cash flows . 27 inventories our finished good , component part , and raw material inventories are valued at the lower of cost or market value . cost is determined using the first-in , first-out method . we write-down our inventory for the estimated difference between cost and estimated market value based upon our best estimates of future demand and market conditions . we carry inventory in amounts necessary to satisfy our customers ' inventory requirements on a timely basis . we continually monitor our inventory status to control inventory levels and write-down any excess or obsolete inventories on hand . story_separator_special_tag this change was driven primarily by foreign currency gains associated with fluctuations in the chinese yuan renminbi exchange rate versus the u.s. dollar . income tax expense . income tax expense was $ 4.8 million in 2016 compared to $ 6.8 million in 2015 . our effective tax rate was consistent at 19.1 % in 2016 compared to 18.9 % in 2015 . year ended december 31 , 2015 compared to year ended december 31 , 2014 ( `` 2014 `` ) net sales . net sales for 2015 were $ 602.8 million , an increase of 7.2 % compared to $ 562.3 million in 2014. net sales by our business and consumer lines were as follows : replace_table_token_8_th net sales in our business lines ( subscription broadcasting , oem , and computing companies ) were 91.4 % of net sales in 2015 compared to 90.2 % in 2014. net sales in our business lines in 2015 increased by 8.7 % to $ 551.0 million from $ 507.1 million in 2014 driven primarily by strong demand and increased market share with north american subscription broadcasters as more customers transition from lower end platforms to higher end platforms . partially offsetting this improvement was a decrease in net sales to consumer electronics companies in asia . net sales in our consumer lines ( one for all ® retail and private label ) were 8.6 % of net sales in 2015 compared to 9.8 % in 2014. net sales in our consumer lines in 2015 decreased by 6.2 % to $ 51.8 million from $ 55.2 million in 2014. this decrease was driven primarily by the weakening of the euro and the british pound compared to the u.s. dollar , which negatively impacted sales in 2015 by $ 5.3 million . this unfavorable currency impact was partially offset by increased sales in the european market . gross profit . gross profit in 2015 was $ 166.7 million compared to $ 166.9 million in 2014. gross profit as a percent of sales decreased to 27.7 % in 2015 from 29.7 % in 2014. the gross margin percentage was unfavorably impacted by an increase in sales to certain large customers that yield a lower gross margin rate than our company average , labor inflation in china where our four manufacturing facilities are located , and a decrease in royalty revenue associated with the tv and mobile device markets . the impact of these unfavorable items was partially offset by the weakening of the chinese yuan renminbi relative to the u.s. dollar . research and development expenses . r & d expenses increased 6.9 % to $ 18.1 million in 2015 from $ 17.0 million in 2014 as a result of our research and development efforts in existing categories as well as new categories such as the home security channel . selling , general and administrative expenses . sg & a expenses increased 3.7 % to $ 112.7 million in 2015 from $ 108.6 million in 2014. this increase was attributable primarily to an unfavorable court order in a patent litigation lawsuit of $ 4.6 million in the third quarter of 2015 as well as increased payroll costs driven by additional headcount to support product development efforts and annual merit increases . sg & a expenses also increased due to increased delivery expenses as a result of the additional sales to north american subscription broadcasting customers in 2015 and the rerouting of certain shipments in the first quarter of 2015 due to temporary port congestion in los angeles , california . these increases were partially offset by the weakening of the euro and brazilian real and a decrease in incentive compensation costs . interest income ( expense ) , net . net interest income was $ 63 thousand in 2015 compared to net interest income of $ 11 thousand in 2014 . 32 other income ( expense ) , net . net other expense was $ 7 thousand in 2015 compared to net other expense of $ 0.8 million in 2014. this change was driven primarily by a decrease in foreign currency losses associated with fluctuations in foreign currency exchange rates related to the euro , chinese yuan renminbi and british pound . income tax expense . income tax expense was $ 6.8 million in 2015 compared to $ 7.9 million in 2014 , and our effective tax rate was 18.9 % in 2015 compared to 19.6 % in 2014. the decrease in our effective tax rate was due primarily to the recording of $ 0.5 million in tax refunds in 2015 related to tax incentives in china for the years 2012 through 2014. liquidity and capital resources story_separator_special_tag style= `` line-height:120 % ; font-size:10pt ; `` > ( 1 ) purchase obligations consist of contractual payments to purchase tooling and other fixed assets . ( 2 ) contingent consideration consists of contingent payments related to our purchase of the net assets of ecolink . liquidity historically , we have utilized cash provided from operations as our primary source of liquidity , as internally generated cash flows have been sufficient to support our business operations , capital expenditures and discretionary share repurchases . more recently we have utilized our revolving line of credit to fund an increased level of share repurchases and our acquisition of the net assets of ecolink . we anticipate that we will continue to utilize both cash flows from operations and our revolving line of credit to support ongoing business operations , capital expenditures and future discretionary share repurchases . our working capital needs have typically been greatest during the third and fourth quarters when accounts receivable and inventories increase in connection with the fourth quarter holiday selling season . in addition , inventory levels typically increase in anticipation of factory closures in observance of chinese new year . we believe our current cash balances , anticipated cash flow to be generated from operations and available borrowing resources will be sufficient

sources and uses of cash replace_table_token_9_th replace_table_token_10_th net cash provided by operating activities increased $ 23.4 million in 2016 when compared to 2015 , primarily due to the net impact of changes in working capital needs associated with accounts receivable , inventories and accounts payable . with respect to accounts receivable , although net sales increased by 8.1 % in 2016 compared to 2015 , accounts receivable only increased by 2.3 % due to the timing of sales in the current year period . additionally , we experienced a greater growth in accounts receivable in 2015 as a result of us extending longer payment terms to certain significant customers . at december 31 , 2016 , days sales outstanding was 70 days compared to 68 days at december 31 , 2015. cash outflows associated with inventories were greater in 2015 compared to 2016 primarily due to preparation in 2015 for the manufacturing transition of certain products from our southern china factory to our other three factories located in china . the decrease in cash inflows associated with accounts payable were largely driven by the decrease in cash outflows associated with inventories . net cash provided by operating activities decreased $ 37.4 million in 2015 when compared to 2014 , primarily due to the net impact of changes in working capital needs associated with inventories , accounts receivable and accounts payable .


 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.
     ```sources and uses of cash replace_table_token_9_th replace_table_token_10_th net cash provided by operating activities increased $ 23.4 million in 2016 when compared to 2015 , primarily due to the net impact of changes in working capital needs associated with accounts receivable , inventories and accounts payable . with respect to accounts receivable , although net sales increased by 8.1 % in 2016 compared to 2015 , accounts receivable only increased by 2.3 % due to the timing of sales in the current year period . additionally , we experienced a greater growth in accounts receivable in 2015 as a result of us extending longer payment terms to certain significant customers . at december 31 , 2016 , days sales outstanding was 70 days compared to 68 days at december 31 , 2015. cash outflows associated with inventories were greater in 2015 compared to 2016 primarily due to preparation in 2015 for the manufacturing transition of certain products from our southern china factory to our other three factories located in china . the decrease in cash inflows associated with accounts payable were largely driven by the decrease in cash outflows associated with inventories . net cash provided by operating activities decreased $ 37.4 million in 2015 when compared to 2014 , primarily due to the net impact of changes in working capital needs associated with inventories , accounts receivable and accounts payable .
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 Suspicious Activity Report : on an on-going basis , we evaluate our estimates and judgments , including those related to revenue recognition , allowances for sales returns and doubtful accounts , inventory valuation , our review for impairment of long-lived assets , intangible assets and goodwill , business combinations , income taxes , stock-based compensation expense and performance-based common stock warrants . actual results may differ from these judgments and estimates , and they may be adjusted as more information becomes available . any adjustment may be significant and may have a material impact on our consolidated financial position or results of operations . an accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made , if different estimates reasonably may have been used , or if changes in the estimate that are reasonably likely to occur may materially impact the financial statements . management believes the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements . in addition to the accounting policies mentioned below , see `` item 8. financial statements and supplementary data — notes to consolidated financial statements — note 2 `` for other significant accounting policies . revenue recognition we recognize revenue on the sale of products when title of the goods has transferred , there is persuasive evidence of an arrangement ( such as a purchase order from the customer ) , the sales price is fixed or determinable and collectability is reasonably assured . a provision is recorded for estimated sales returns and allowances and is deducted from gross sales to arrive at net sales in the period the related revenue is recorded . these estimates are based on historical sales returns and allowances , analysis of credit memo data and other known factors . actual returns and claims in any future period are inherently uncertain and thus may differ from our estimates . if actual or expected future returns and claims are significantly greater or lower than the reserves that we have established , we will record a reduction or increase to net revenues in the period in which we make such a determination . we accrue for discounts and rebates based on historical experience and our expectations regarding future sales to our customers . these accruals are recorded as a reduction to sales in the same period as the related revenues . changes in such accruals may be required if future rebates and incentives differ from our estimates . revenue for the sale of tooling is recognized when the related tooling has been provided , customer acceptance documentation has been obtained , the sales price is fixed or determinable and collectability is reasonably assured . we generate service revenue , which is paid monthly , as a result of providing consumer support programs to some of our customers through our call centers . these service revenues are recognized when services are performed , persuasive evidence of an arrangement exists ( such as when a signed agreement is received from the customer ) , the sales price is fixed or determinable , and collectability is reasonably assured . we license our intellectual property including our patented technologies , trademarks , and database of control codes . when our license fees are paid on a per unit basis we record license revenue when our customers ship a product incorporating our intellectual property , persuasive evidence of an arrangement exists , the sales price is fixed or determinable , and collectability is reasonably assured . when a fixed upfront license fee is received in exchange for the delivery of a particular database of infrared codes that represents the culmination of the earnings process , we record revenues when delivery has occurred , persuasive evidence of an arrangement exists , the sales price is fixed or determinable and collectability is reasonably assured . revenue for term license fees is recognized on a straight-line basis over the effective term of the license when we can not reliably predict in which periods , within the term of the license , the licensee will benefit from the use of our patented inventions . allowance for doubtful accounts we maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make payments for products sold or services rendered . the allowance for doubtful accounts is estimated based on a variety of factors , including credit reviews , historical experience , length of time receivables are past due , current economic trends and changes in customer payment behavior . we also record specific provisions for individual accounts when we become aware of a customer 's inability to meet its financial obligations to us , such as in the case of bankruptcy filings or deterioration in the customer 's operating results or financial position . our historical reserves have been sufficient to cover losses from uncollectible accounts . however , because we can not predict future changes in the financial stability of our customers , actual future losses from uncollectible accounts may differ from our estimates and may have a material effect on our consolidated financial position , results of operations and cash flows . 27 inventories our finished good , component part , and raw material inventories are valued at the lower of cost or market value . cost is determined using the first-in , first-out method . we write-down our inventory for the estimated difference between cost and estimated market value based upon our best estimates of future demand and market conditions . we carry inventory in amounts necessary to satisfy our customers ' inventory requirements on a timely basis . we continually monitor our inventory status to control inventory levels and write-down any excess or obsolete inventories on hand . story_separator_special_tag this change was driven primarily by foreign currency gains associated with fluctuations in the chinese yuan renminbi exchange rate versus the u.s. dollar . income tax expense . income tax expense was $ 4.8 million in 2016 compared to $ 6.8 million in 2015 . our effective tax rate was consistent at 19.1 % in 2016 compared to 18.9 % in 2015 . year ended december 31 , 2015 compared to year ended december 31 , 2014 ( `` 2014 `` ) net sales . net sales for 2015 were $ 602.8 million , an increase of 7.2 % compared to $ 562.3 million in 2014. net sales by our business and consumer lines were as follows : replace_table_token_8_th net sales in our business lines ( subscription broadcasting , oem , and computing companies ) were 91.4 % of net sales in 2015 compared to 90.2 % in 2014. net sales in our business lines in 2015 increased by 8.7 % to $ 551.0 million from $ 507.1 million in 2014 driven primarily by strong demand and increased market share with north american subscription broadcasters as more customers transition from lower end platforms to higher end platforms . partially offsetting this improvement was a decrease in net sales to consumer electronics companies in asia . net sales in our consumer lines ( one for all ® retail and private label ) were 8.6 % of net sales in 2015 compared to 9.8 % in 2014. net sales in our consumer lines in 2015 decreased by 6.2 % to $ 51.8 million from $ 55.2 million in 2014. this decrease was driven primarily by the weakening of the euro and the british pound compared to the u.s. dollar , which negatively impacted sales in 2015 by $ 5.3 million . this unfavorable currency impact was partially offset by increased sales in the european market . gross profit . gross profit in 2015 was $ 166.7 million compared to $ 166.9 million in 2014. gross profit as a percent of sales decreased to 27.7 % in 2015 from 29.7 % in 2014. the gross margin percentage was unfavorably impacted by an increase in sales to certain large customers that yield a lower gross margin rate than our company average , labor inflation in china where our four manufacturing facilities are located , and a decrease in royalty revenue associated with the tv and mobile device markets . the impact of these unfavorable items was partially offset by the weakening of the chinese yuan renminbi relative to the u.s. dollar . research and development expenses . r & d expenses increased 6.9 % to $ 18.1 million in 2015 from $ 17.0 million in 2014 as a result of our research and development efforts in existing categories as well as new categories such as the home security channel . selling , general and administrative expenses . sg & a expenses increased 3.7 % to $ 112.7 million in 2015 from $ 108.6 million in 2014. this increase was attributable primarily to an unfavorable court order in a patent litigation lawsuit of $ 4.6 million in the third quarter of 2015 as well as increased payroll costs driven by additional headcount to support product development efforts and annual merit increases . sg & a expenses also increased due to increased delivery expenses as a result of the additional sales to north american subscription broadcasting customers in 2015 and the rerouting of certain shipments in the first quarter of 2015 due to temporary port congestion in los angeles , california . these increases were partially offset by the weakening of the euro and brazilian real and a decrease in incentive compensation costs . interest income ( expense ) , net . net interest income was $ 63 thousand in 2015 compared to net interest income of $ 11 thousand in 2014 . 32 other income ( expense ) , net . net other expense was $ 7 thousand in 2015 compared to net other expense of $ 0.8 million in 2014. this change was driven primarily by a decrease in foreign currency losses associated with fluctuations in foreign currency exchange rates related to the euro , chinese yuan renminbi and british pound . income tax expense . income tax expense was $ 6.8 million in 2015 compared to $ 7.9 million in 2014 , and our effective tax rate was 18.9 % in 2015 compared to 19.6 % in 2014. the decrease in our effective tax rate was due primarily to the recording of $ 0.5 million in tax refunds in 2015 related to tax incentives in china for the years 2012 through 2014. liquidity and capital resources story_separator_special_tag style= `` line-height:120 % ; font-size:10pt ; `` > ( 1 ) purchase obligations consist of contractual payments to purchase tooling and other fixed assets . ( 2 ) contingent consideration consists of contingent payments related to our purchase of the net assets of ecolink . liquidity historically , we have utilized cash provided from operations as our primary source of liquidity , as internally generated cash flows have been sufficient to support our business operations , capital expenditures and discretionary share repurchases . more recently we have utilized our revolving line of credit to fund an increased level of share repurchases and our acquisition of the net assets of ecolink . we anticipate that we will continue to utilize both cash flows from operations and our revolving line of credit to support ongoing business operations , capital expenditures and future discretionary share repurchases . our working capital needs have typically been greatest during the third and fourth quarters when accounts receivable and inventories increase in connection with the fourth quarter holiday selling season . in addition , inventory levels typically increase in anticipation of factory closures in observance of chinese new year . we believe our current cash balances , anticipated cash flow to be generated from operations and available borrowing resources will be sufficient

