the estimate is based on the historical level of purchases , adjusted for any factors expected to affect the current year purchase levels . the estimated year-end rebate is adjusted quarterly based on actual purchase levels , as necessary . the preferred retailer program is generally short term in nature and the actual costs of the program are known as of the end of the year and paid to customers shortly after year-end . in addition to the preferred retailer program , the company from time to time offers additional sales program incentive offerings which are also generally short term in nature . historically the company 's actual costs related to its preferred retailer program and other sales programs have not been materially different than its estimates . revenues from gift cards are deferred and recognized when the cards are redeemed . in addition , the company recognizes revenue from unredeemed gift cards when the likelihood of redemption becomes remote and under circumstances that comply with any applicable state escheatment laws . the company 's gift cards have no expiration . to determine when redemption is remote , the company analyzes an aging of unredeemed cards ( based on the date the card was last used or the activation date if the card has never been used ) and compares that information with historical redemption trends . the company does not believe there is a 22 reasonable likelihood that there will be a material change in the future estimates or assumptions used to determine the timing of recognition of gift card revenues . the deferred revenue associated with outstanding gift cards remained flat at $ 1.1 million at december 31 , 2015 and 2014. allowance for doubtful accounts the company maintains an allowance for estimated losses resulting from the failure of its customers to make required payments . an estimate of uncollectible amounts is made by management based upon historical bad debts , current customer receivable balances , age of customer receivable balances , the customer 's financial condition and current economic trends , all of which are subject to change . if the actual uncollected amounts significantly exceed the estimated allowance , the company 's operating results would be significantly adversely affected . assuming there had been a 10 % increase in uncollectible accounts over the 2015 recorded estimated allowance for doubtful accounts , pre-tax income for the year ended december 31 , 2015 would have decreased by approximately $ 0.6 million . inventories inventories are valued at the lower of cost or fair market value . cost is determined using the first-in , first-out ( fifo ) method . the inventory balance , which includes material , labor and manufacturing overhead costs , is recorded net of an estimated allowance for obsolete or unmarketable inventory . the estimated allowance for obsolete or unmarketable inventory is based upon current inventory levels , sales trends and historical experience as well as management 's understanding of market conditions and forecasts of future product demand , all of which are subject to change . the calculation of the company 's allowance for obsolete or unmarketable inventory requires management to make assumptions and to apply judgment regarding inventory aging , forecasted consumer demand and pricing , regulatory ( usga and r & a ) rule changes , the promotional environment and technological obsolescence . the company does not believe there is a reasonable likelihood that there will be a material change in the future estimates or assumptions used to calculate the allowance . however , if estimates regarding consumer demand are inaccurate or changes in technology affect demand for certain products in an unforeseen manner , the company may need to increase its inventory allowance , which could significantly adversely affect the company 's operating results . assuming there had been a 10 % increase in obsolete or unmarketable inventory over the 2015 recorded estimated allowance for obsolete or unmarketable inventory , pre-tax income for the year ended december 31 , 2015 would have decreased by approximately $ 1.6 million . long-lived assets , goodwill and non-amortizing intangible assets in the normal course of business , the company acquires tangible and intangible assets . the company periodically evaluates the recoverability of the carrying amount of its long-lived assets , including property , plant and equipment and amortizing intangible assets , and investments whenever events or changes in circumstances indicate that the carrying amount of the asset may not be fully recoverable or exceeds its fair value . the company evaluates the recoverability of its goodwill and non-amortizing intangible assets at least annually or more frequently whenever indicators are present that the carrying amounts of these assets may not be fully recoverable . determining whether an impairment has occurred typically requires various estimates and assumptions , including determining the amount of undiscounted cash flows directly related to the potentially impaired asset , the useful life over which cash flows will occur , the timing of the impairment test , and the asset 's residual value , if any . to determine fair value , the company uses its internal cash flow estimates discounted at an appropriate rate , quoted market prices , royalty rates when available and independent appraisals as appropriate . any required impairment loss is measured as the amount by which the carrying amount of the asset exceeds its fair value and is recorded as a reduction in the carrying value of the asset and a charge to earnings . the company uses its best judgment based on current facts and circumstances related to its business when making these estimates . however , if actual results are not consistent with the company 's estimates and assumptions used in calculating future cash flows and asset fair values , the company may be exposed to losses that could be material . story_separator_special_tag the company 's second-quarter sales are significantly affected by the amount of reorder business of the products sold during the first quarter . the company 's third-quarter sales are generally dependent on reorder business but are generally less than the second quarter as many retailers begin decreasing their inventory levels in anticipation of the end of the golf season . the company 's fourth-quarter sales are generally less than the other quarters due to the end of the golf season in many of the company 's key markets . however , fourth-quarter sales can be affected from time to time by the early launch of product introductions related to the new golf season of the subsequent year . this seasonality , and therefore quarter-to-quarter fluctuations , can be affected by many factors , including the timing of new product introductions as well as weather conditions . in general , because of this seasonality , a majority of the company 's sales and most , if not all , of its profitability occurs during the first half of the year . foreign currency . a significant portion of the company 's business is conducted outside of the united states in currencies other than the u.s. dollar . as a result , changes in foreign currency rates can have a significant effect on the company 's financial results . the company enters into foreign currency forward contracts to mitigate the effects of changes in foreign currency rates . while these foreign currency forward contracts can mitigate the effects of changes in foreign currency rates , they do not eliminate those effects , which can be significant . these effects include ( i ) the translation of results denominated in foreign currency into u.s. dollars for reporting purposes , ( ii ) the mark-to-market adjustments of certain intercompany balance sheet accounts denominated in foreign currencies and ( iii ) the mark-to-market adjustments on the company 's foreign currency forward contracts . in general , the company 's overall financial results are affected positively by a weaker u.s. dollar and are affected negatively by a stronger u.s. dollar as compared to the foreign currencies in which the company conducts its business . during 2015 , the company 's reported net sales in regions outside the united states were negatively affected by the translation of foreign currency sales into u.s. dollars based on 2015 exchange rates . if 2014 exchange rates were applied to 2015 reported sales in regions outside the united states and all other factors were held constant , net sales in such regions would have been $ 53.2 million higher than the net sales reported in 2015. additionally , in general , the u.s. dollar has strengthened against the foreign currencies in which the company conducts its business , primarily the japanese yen . if this trend persists or if the u.s. dollar further strengthens against these currencies , it could significantly adversely impact the company 's future results of operations . executive summary despite significant headwinds from unfavorable foreign currency exchange rates in 2015 , the company 's operational performance , market share and brand momentum continued to improve . the success of the company 's 2015 golf club product line contributed to the company achieving the number one dollar market share position in the united states in total golf clubs ( per golf datatech ) . in addition to improved operational performance , the company also strengthened its balance sheet through the retirement of its outstanding convertible debt in 2015. the company 's net sales in 2015 decreased 5 % to $ 843.8 million compared to $ 886.9 million in 2014. as mentioned above , foreign currency exchange rates had a significant adverse effect on the company 's net sales , which negatively impacted net sales by $ 53.2 million in 2015. on a constant currency basis , net sales for 2015 would have increased by 1 % compared to 2014. the sales growth in 2015 was tempered by a planned strategic shift in product launch timing , which adversely affected first quarter net sales , and softer than expected market conditions in the company 's international markets , particularly in asia . the company 's gross profit as a percentage of net sales increased by 200 basis points , to 42.4 % in 2015 compared to 2014. on a constant currency basis , gross margin would have increased by 510 basis points to 45.5 % compared to the gross margin reported in 2014. this increase was primarily due to more favorable product pricing and mix of higher margin products , fewer closeouts , a decrease in promotional activities and cost savings from improved manufacturing efficiencies . this was partially offset by the negative impact of changes in foreign currency exchange rates compared to 2014. operating expenses increased by $ 3.5 million in 2015 compared to 2014 , primarily due to an increase in stock compensation expense as a result of an increase in the company 's stock price period over period . on a constant currency basis , operating expenses would have increased by $ 14.5 million in 2015 compared to 2014 . 27 other income/expense improved to other income of $ 1.5 million in 2015 compared to other expense of $ 0.1 million in 2014 , primarily due to an increase in net foreign currency gains . interest expense decreased to $ 8.7 million in 2015 compared to $ 9.5 million in 2014 due to lower average outstanding borrowings in 2015 , offset by the recognition of non-recurring expenses related to the exchange transactions to retire the company 's convertible debt in 2015. in 2015 , net income decreased by $ 1.4 million ( 9 % ) to $ 14.6 million , and diluted earnings per share decreased by $ 0.03 ( 15 % ) to $ 0.17 compared to 2014 due to the negative impact of foreign currency exchange rates . on a constant currency basis ,

liquidity and capital resources the information set forth in note 3 “ financing arrangements , ” in the notes to consolidated financial statements in this form 10-k , is incorporated herein by this reference . liquidity the company 's principal sources of liquidity consist of its existing cash balances , funds expected to be generated from operations and its credit facilities . the company experienced negative cash flows from operations in 2012 and 2013. during the second half of 2012 , the company implemented significant changes to its business , including among other things , steps designed to increase product sales as well as initiatives designed to reduce the company 's manufacturing costs and operating expenses . as a result of these initiatives , the company 's net sales and gross margin have increased and in 2014 and 2015 , the company generated positive cash flows from operations . based upon the company 's current cash balances , its estimates of funds expected to be generated from operations in 2016 , and current and projected availability under its credit facilities , the company believes that it will be able to finance current and planned operating requirements , capital expenditures , contractual obligations and commercial commitments for at least the next 12 months . the company 's ability to generate sufficient positive cash flows from operations is subject to many risks and uncertainties , including future economic trends and conditions , demand for the company 's products , foreign currency exchange rates , and other risks and uncertainties applicable to the company and its business ( see “ risk factors ” contained in part i , item 1a in this form 10-k ) . while the company 's operational and financial performance has improved significantly since 2012 , no assurance can be given that the company will be able to generate sufficient operating cash flows in the future or maintain or grow its existing cash 35 balances .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources the information set forth in note 3 “ financing arrangements , ” in the notes to consolidated financial statements in this form 10-k , is incorporated herein by this reference . liquidity the company 's principal sources of liquidity consist of its existing cash balances , funds expected to be generated from operations and its credit facilities . the company experienced negative cash flows from operations in 2012 and 2013. during the second half of 2012 , the company implemented significant changes to its business , including among other things , steps designed to increase product sales as well as initiatives designed to reduce the company 's manufacturing costs and operating expenses . as a result of these initiatives , the company 's net sales and gross margin have increased and in 2014 and 2015 , the company generated positive cash flows from operations . based upon the company 's current cash balances , its estimates of funds expected to be generated from operations in 2016 , and current and projected availability under its credit facilities , the company believes that it will be able to finance current and planned operating requirements , capital expenditures , contractual obligations and commercial commitments for at least the next 12 months . the company 's ability to generate sufficient positive cash flows from operations is subject to many risks and uncertainties , including future economic trends and conditions , demand for the company 's products , foreign currency exchange rates , and other risks and uncertainties applicable to the company and its business ( see “ risk factors ” contained in part i , item 1a in this form 10-k ) . while the company 's operational and financial performance has improved significantly since 2012 , no assurance can be given that the company will be able to generate sufficient operating cash flows in the future or maintain or grow its existing cash 35 balances .
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 Suspicious Activity Report : the estimate is based on the historical level of purchases , adjusted for any factors expected to affect the current year purchase levels . the estimated year-end rebate is adjusted quarterly based on actual purchase levels , as necessary . the preferred retailer program is generally short term in nature and the actual costs of the program are known as of the end of the year and paid to customers shortly after year-end . in addition to the preferred retailer program , the company from time to time offers additional sales program incentive offerings which are also generally short term in nature . historically the company 's actual costs related to its preferred retailer program and other sales programs have not been materially different than its estimates . revenues from gift cards are deferred and recognized when the cards are redeemed . in addition , the company recognizes revenue from unredeemed gift cards when the likelihood of redemption becomes remote and under circumstances that comply with any applicable state escheatment laws . the company 's gift cards have no expiration . to determine when redemption is remote , the company analyzes an aging of unredeemed cards ( based on the date the card was last used or the activation date if the card has never been used ) and compares that information with historical redemption trends . the company does not believe there is a 22 reasonable likelihood that there will be a material change in the future estimates or assumptions used to determine the timing of recognition of gift card revenues . the deferred revenue associated with outstanding gift cards remained flat at $ 1.1 million at december 31 , 2015 and 2014. allowance for doubtful accounts the company maintains an allowance for estimated losses resulting from the failure of its customers to make required payments . an estimate of uncollectible amounts is made by management based upon historical bad debts , current customer receivable balances , age of customer receivable balances , the customer 's financial condition and current economic trends , all of which are subject to change . if the actual uncollected amounts significantly exceed the estimated allowance , the company 's operating results would be significantly adversely affected . assuming there had been a 10 % increase in uncollectible accounts over the 2015 recorded estimated allowance for doubtful accounts , pre-tax income for the year ended december 31 , 2015 would have decreased by approximately $ 0.6 million . inventories inventories are valued at the lower of cost or fair market value . cost is determined using the first-in , first-out ( fifo ) method . the inventory balance , which includes material , labor and manufacturing overhead costs , is recorded net of an estimated allowance for obsolete or unmarketable inventory . the estimated allowance for obsolete or unmarketable inventory is based upon current inventory levels , sales trends and historical experience as well as management 's understanding of market conditions and forecasts of future product demand , all of which are subject to change . the calculation of the company 's allowance for obsolete or unmarketable inventory requires management to make assumptions and to apply judgment regarding inventory aging , forecasted consumer demand and pricing , regulatory ( usga and r & a ) rule changes , the promotional environment and technological obsolescence . the company does not believe there is a reasonable likelihood that there will be a material change in the future estimates or assumptions used to calculate the allowance . however , if estimates regarding consumer demand are inaccurate or changes in technology affect demand for certain products in an unforeseen manner , the company may need to increase its inventory allowance , which could significantly adversely affect the company 's operating results . assuming there had been a 10 % increase in obsolete or unmarketable inventory over the 2015 recorded estimated allowance for obsolete or unmarketable inventory , pre-tax income for the year ended december 31 , 2015 would have decreased by approximately $ 1.6 million . long-lived assets , goodwill and non-amortizing intangible assets in the normal course of business , the company acquires tangible and intangible assets . the company periodically evaluates the recoverability of the carrying amount of its long-lived assets , including property , plant and equipment and amortizing intangible assets , and investments whenever events or changes in circumstances indicate that the carrying amount of the asset may not be fully recoverable or exceeds its fair value . the company evaluates the recoverability of its goodwill and non-amortizing intangible assets at least annually or more frequently whenever indicators are present that the carrying amounts of these assets may not be fully recoverable . determining whether an impairment has occurred typically requires various estimates and assumptions , including determining the amount of undiscounted cash flows directly related to the potentially impaired asset , the useful life over which cash flows will occur , the timing of the impairment test , and the asset 's residual value , if any . to determine fair value , the company uses its internal cash flow estimates discounted at an appropriate rate , quoted market prices , royalty rates when available and independent appraisals as appropriate . any required impairment loss is measured as the amount by which the carrying amount of the asset exceeds its fair value and is recorded as a reduction in the carrying value of the asset and a charge to earnings . the company uses its best judgment based on current facts and circumstances related to its business when making these estimates . however , if actual results are not consistent with the company 's estimates and assumptions used in calculating future cash flows and asset fair values , the company may be exposed to losses that could be material . story_separator_special_tag the company 's second-quarter sales are significantly affected by the amount of reorder business of the products sold during the first quarter . the company 's third-quarter sales are generally dependent on reorder business but are generally less than the second quarter as many retailers begin decreasing their inventory levels in anticipation of the end of the golf season . the company 's fourth-quarter sales are generally less than the other quarters due to the end of the golf season in many of the company 's key markets . however , fourth-quarter sales can be affected from time to time by the early launch of product introductions related to the new golf season of the subsequent year . this seasonality , and therefore quarter-to-quarter fluctuations , can be affected by many factors , including the timing of new product introductions as well as weather conditions . in general , because of this seasonality , a majority of the company 's sales and most , if not all , of its profitability occurs during the first half of the year . foreign currency . a significant portion of the company 's business is conducted outside of the united states in currencies other than the u.s. dollar . as a result , changes in foreign currency rates can have a significant effect on the company 's financial results . the company enters into foreign currency forward contracts to mitigate the effects of changes in foreign currency rates . while these foreign currency forward contracts can mitigate the effects of changes in foreign currency rates , they do not eliminate those effects , which can be significant . these effects include ( i ) the translation of results denominated in foreign currency into u.s. dollars for reporting purposes , ( ii ) the mark-to-market adjustments of certain intercompany balance sheet accounts denominated in foreign currencies and ( iii ) the mark-to-market adjustments on the company 's foreign currency forward contracts . in general , the company 's overall financial results are affected positively by a weaker u.s. dollar and are affected negatively by a stronger u.s. dollar as compared to the foreign currencies in which the company conducts its business . during 2015 , the company 's reported net sales in regions outside the united states were negatively affected by the translation of foreign currency sales into u.s. dollars based on 2015 exchange rates . if 2014 exchange rates were applied to 2015 reported sales in regions outside the united states and all other factors were held constant , net sales in such regions would have been $ 53.2 million higher than the net sales reported in 2015. additionally , in general , the u.s. dollar has strengthened against the foreign currencies in which the company conducts its business , primarily the japanese yen . if this trend persists or if the u.s. dollar further strengthens against these currencies , it could significantly adversely impact the company 's future results of operations . executive summary despite significant headwinds from unfavorable foreign currency exchange rates in 2015 , the company 's operational performance , market share and brand momentum continued to improve . the success of the company 's 2015 golf club product line contributed to the company achieving the number one dollar market share position in the united states in total golf clubs ( per golf datatech ) . in addition to improved operational performance , the company also strengthened its balance sheet through the retirement of its outstanding convertible debt in 2015. the company 's net sales in 2015 decreased 5 % to $ 843.8 million compared to $ 886.9 million in 2014. as mentioned above , foreign currency exchange rates had a significant adverse effect on the company 's net sales , which negatively impacted net sales by $ 53.2 million in 2015. on a constant currency basis , net sales for 2015 would have increased by 1 % compared to 2014. the sales growth in 2015 was tempered by a planned strategic shift in product launch timing , which adversely affected first quarter net sales , and softer than expected market conditions in the company 's international markets , particularly in asia . the company 's gross profit as a percentage of net sales increased by 200 basis points , to 42.4 % in 2015 compared to 2014. on a constant currency basis , gross margin would have increased by 510 basis points to 45.5 % compared to the gross margin reported in 2014. this increase was primarily due to more favorable product pricing and mix of higher margin products , fewer closeouts , a decrease in promotional activities and cost savings from improved manufacturing efficiencies . this was partially offset by the negative impact of changes in foreign currency exchange rates compared to 2014. operating expenses increased by $ 3.5 million in 2015 compared to 2014 , primarily due to an increase in stock compensation expense as a result of an increase in the company 's stock price period over period . on a constant currency basis , operating expenses would have increased by $ 14.5 million in 2015 compared to 2014 . 27 other income/expense improved to other income of $ 1.5 million in 2015 compared to other expense of $ 0.1 million in 2014 , primarily due to an increase in net foreign currency gains . interest expense decreased to $ 8.7 million in 2015 compared to $ 9.5 million in 2014 due to lower average outstanding borrowings in 2015 , offset by the recognition of non-recurring expenses related to the exchange transactions to retire the company 's convertible debt in 2015. in 2015 , net income decreased by $ 1.4 million ( 9 % ) to $ 14.6 million , and diluted earnings per share decreased by $ 0.03 ( 15 % ) to $ 0.17 compared to 2014 due to the negative impact of foreign currency exchange rates . on a constant currency basis ,

