net sales for fiscal 2019 in the emea segment increased $ 28.4 million , or 10.1 % , as compared to fiscal 2018 . the increase in net sales was the result of a $ 20.2 million increase in production ramps of new products for existing customers , a $ 4.2 million increase in production ramps for new customers and overall net increased customer end-market demand . the increase was partially offset by a $ 6.2 million reduction due to a disengagement with a customer . our net sales by market sector for the indicated fiscal years were as follows ( in millions ) : replace_table_token_5_th healthcare/life sciences . net sales for fiscal 2019 in the healthcare/life sciences sector increased $ 180.1 million , or 17.3 % , as compared to fiscal 2018 . the increase was driven by overall net increased customer end-market demand , a $ 32.7 million increase in production ramps of new products for existing customers and a $ 26.9 million increase in production ramps for new customers . industrial/commercial . net sales for fiscal 2019 in the industrial/commercial sector increased $ 63.5 million , or 6.9 % , as compared to fiscal 2018 . the increase was driven by a $ 64.8 million increase in production ramps of new products for existing customers and a $ 33.2 million increase in production ramps for new customers . the increase was partially offset by a $ 7.3 million decrease due to end-of-life products , a $ 4.2 million decrease due to a disengagement with a customer and overall net decreased customer end-market demand . aerospace/defense . net sales for fiscal 2019 in the aerospace/defense sector increased $ 143.5 million , or 32.2 % , as compared to fiscal 2018 . the increase was driven by a $ 120.2 million increase in production ramps of new products for existing customers , a $ 9.9 million increase in production ramps for new customers and overall net increased customer end-market demand . communications . net sales for fiscal 2019 in the communications sector decreased $ 96.2 million , or 20.4 % , as compared to fiscal 2018 . the decrease was driven by a $ 37.3 million reduction due to disengagements with customers , a $ 15.3 million decrease due to end-of-life products and overall net decreased customer end-market demand . the decrease was partially offset by an $ 18.1 million increase in production ramps of new products for existing customers and a $ 4.5 million increase in production ramps for new customers . 24 as a percentage of consolidated net sales , net sales attributable to customers representing 10 % or more of consolidated net sales as well as the percentage of net sales attributable to our ten largest customers for the indicated fiscal years were as follows : replace_table_token_6_th cost of sales . cost of sales for fiscal 2019 increased $ 256.7 million , or 9.8 % , as compared to fiscal 2018 . cost of sales is comprised primarily of material and component costs , labor costs and overhead . in fiscal 2019 and 2018 , approximately 89 % of the total cost of sales was variable in nature and fluctuated with sales volumes . of these amounts , approximately 86 % and 88 % of these costs in fiscal 2019 and 2018 , respectively , were related to material and component costs . as compared to fiscal 2018 , the increase in cost of sales in fiscal 2019 was primarily driven by the increase in net sales and increased fixed costs to support program ramps . partially offsetting the increase was a positive shift in customer mix and the $ 13.5 million one-time employee bonus ( the `` one-time employee bonus `` ) that was paid during fiscal 2018 , of which $ 12.6 million impacted cost of sales in that period . gross profit . gross profit for fiscal 2019 increased $ 34.2 million , or 13.3 % , as compared to fiscal 2018 . gross margin of 9.2 % increased by 20 basis points as compared to fiscal 2018. the primary driver of the increases in gross profit and gross margin as compared to fiscal 2018 was the increase in net sales , a positive shift in customer mix and the one-time employee bonus that was paid during fiscal 2018. operating income . operating income for fiscal 2019 increased $ 23.8 million , or 20.1 % , as compared to fiscal 2018 as a result of the increase in gross profit as well as the non-recurrence of the one-time employee bonus that was paid during fiscal 2018 , as noted above . this was partially offset by an $ 8.8 million increase in selling and administrative expenses , driven by a $ 4.9 million increase in compensation expense , and $ 1.7 million of restructuring costs . operating margin of 4.5 % increased 40 basis points compared to fiscal 2018 primarily due to the increase in gross margin as a result of the factors discussed above . a discussion of operating income by reportable segment is presented below ( in millions ) : replace_table_token_7_th amer . operating income increased $ 19.2 million in fiscal 2019 as compared to fiscal 2018 , primarily as a result of the increase in net sales and a positive shift in customer mix , partially offset by increased fixed costs to support new program ramps . apac . operating income decreased $ 5.7 million in fiscal 2019 as compared to fiscal 2018 , primarily as a result of a negative shift in customer mix and increased fixed costs to support new program ramps , partially offset by the increase in net sales . emea . operating income increased $ 3.0 million in fiscal 2019 as compared to fiscal 2018 primarily as a result of the increase in net sales and a positive shift in customer mix , partially offset by increased fixed costs to support new program ramps . story_separator_special_tag 2 ) as of september 28 , 2019 , capital lease obligations consists of capital lease payments and interest as well as the non-cash financing obligation related to the failed sale-leasebacks in guadalajara , mexico ; see note 4 , `` debt , capital lease obligations and other financing , `` in notes to consolidated financial statements for further information . 3 ) as of september 28 , 2019 , purchase obligations consist primarily of purchases of inventory and equipment in the ordinary course of business . 4 ) consists of u.s. federal income taxes on the deemed repatriation of undistributed foreign earnings due to tax reform . refer to `` liquidity and capital resources `` above for further detail . 5 ) as of september 28 , 2019 , other obligations on the balance sheet included deferred compensation obligations to certain of our former and current executive officers , as well as other key employees , and an asset retirement obligation . we have excluded from the above table the impact of approximately $ 2.3 million , as of september 28 , 2019 , related to unrecognized income tax benefits . the company can not make reliable estimates of the future cash flows by period related to these obligations . 6 ) as of september 28 , 2019 , other obligations not on the balance sheet consist of guarantees and a commitment for salary continuation and certain benefits in the event employment of one executive officer of the company is terminated without cause . excluded from the amounts disclosed are certain bonus and incentive compensation amounts , which would be paid on a prorated basis in the year of termination . 7 ) includes future minimum lease payments for two facilities in guadalajara , mexico , leased under 10-year and 15-year base lease agreements , both of which include two 5-year renewal options ; see note 4 , `` debt , capital lease obligations and other financing , `` in notes to consolidated financial statements for further information . 32 disclosure about critical accounting estimates our accounting policies are disclosed in note 1 of notes to consolidated financial statements . during fiscal 2019 , other than changes related to revenue recognition , there were no material changes to these policies . our more critical accounting estimates are described below : revenue recognition : asu 2014-09 , topic 606 , which was adopted at the beginning of fiscal 2019 , resulted in a change to the timing of revenue recognition for a significant portion of the company 's revenue , whereby revenue is now recognized over time as products are produced , as opposed to at a point in time based upon shipping terms . since adopting the standard , revenue is recognized over time for arrangements with customers for which : ( i ) the company 's performance does not create an asset with an alternative use to the company , and ( ii ) the company has an enforceable right to payment , including a reasonable profit margin , for performance completed to date . revenue recognized over time is estimated based on costs incurred to date plus a reasonable profit margin . if either of the two conditions noted above are not met to recognize revenue over time , revenue is recognized following the transfer of control of such products to the customer , which typically occurs upon shipment or delivery depending on the terms of the underlying arrangement . the company recognizes revenue when a contract exists and when , or as , it satisfies a performance obligation by transferring control of a product or service to a customer . contracts are accounted for when they have approval and commitment from both parties , the rights of the parties are identified , payment terms are identified , the contract has commercial substance and collectability of consideration is probable . a performance obligation is a promise in a contract to transfer a distinct good or service to the customer . the company generally enters into a master services arrangement that establishes the framework under which business will be conducted . these arrangements represent the master terms and conditions of the company 's services that apply to individual orders , but they do not commit the customer to work with , or to continue to work with , the company nor do they obligate the customer to any specific volume or pricing of purchases . moreover , these terms can be amended in appropriate situations . customer purchase orders are received for specific quantities with predominantly fixed pricing and delivery requirements . thus , for the majority of our contracts , there is no guarantee of any revenue to the company until a customer submits a purchase order . as a result , the company generally considers its arrangement with a customer to be the combination of the master services arrangement and the purchase order . most of the company 's arrangements with customers create a single performance obligation as the promise to transfer the individual manufactured product or service is capable of being distinct . the company 's performance obligations are satisfied over time as work progresses or at a point in time . a performance obligation is satisfied over time if the company has an enforceable right to payment , including a reasonable profit margin . determining if an enforceable right to payment includes a reasonable profit margin requires judgment and is assessed on a contract by contract basis . if an enforceable right to payment for work-in-process does not exist , revenue is recognized following the transfer of control of such products to the customer , which typically occurs upon shipment or delivery depending on the terms of the underlying contract . for contracts requiring over time revenue recognition , the selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be

cash flows . the following table provides a summary of cash flows for fiscal 2019 and 2018 , excluding the effect of exchange rates on cash and cash equivalents and restricted cash ( in millions ) : replace_table_token_13_th operating activities . cash flows provided by operating activities were $ 115.3 million for fiscal 2019 , as compared to $ 66.8 million for fiscal 2018 . the increase was primarily due to cash flow improvements ( reductions ) of : $ 159.4 million in inventory cash flows driven by inventory management efforts . $ 66.4 million in customer deposit cash flows driven by significant deposits received from three customers . $ ( 150.1 ) million in accounts payables cash flows driven by reduced purchasing in an effort to manage inventory . $ ( 66.0 ) million in accounts receivable cash flows , which resulted primarily from the increase in net sales . $ 14.1 million in other current and noncurrent liabilities cash flows driven by an increase in advance payments from customers . 28 the following table provides a summary of cash cycle days for the periods indicated ( in days ) : replace_table_token_14_th we calculate days in accounts receivable and contract assets as each balance sheet item for the respective quarter divided by annualized sales for the respective quarter by day . we calculate days in inventory , accounts payable , and cash deposits as each balance sheet line item for the respective quarter divided by annualized cost of sales for the respective quarter by day . we calculate annualized cash cycle as the sum of days in accounts receivable , days in contract assets and days in inventory , less days in accounts payable and days in cash deposits . on september 30 , 2018 , the company adopted accounting standards update no . 2014-09 ( “ asu 2014-09 ” ) , revenue recognition ( topic 606 ) . for the three months ended september 28 , 2019 , cash cycle days include contract assets and an associated reduction in inventory . as the guidance was adopted using a modified retrospective approach , no impact to prior periods was required to be recognized .


 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 flows . the following table provides a summary of cash flows for fiscal 2019 and 2018 , excluding the effect of exchange rates on cash and cash equivalents and restricted cash ( in millions ) : replace_table_token_13_th operating activities . cash flows provided by operating activities were $ 115.3 million for fiscal 2019 , as compared to $ 66.8 million for fiscal 2018 . the increase was primarily due to cash flow improvements ( reductions ) of : $ 159.4 million in inventory cash flows driven by inventory management efforts . $ 66.4 million in customer deposit cash flows driven by significant deposits received from three customers . $ ( 150.1 ) million in accounts payables cash flows driven by reduced purchasing in an effort to manage inventory . $ ( 66.0 ) million in accounts receivable cash flows , which resulted primarily from the increase in net sales . $ 14.1 million in other current and noncurrent liabilities cash flows driven by an increase in advance payments from customers . 28 the following table provides a summary of cash cycle days for the periods indicated ( in days ) : replace_table_token_14_th we calculate days in accounts receivable and contract assets as each balance sheet item for the respective quarter divided by annualized sales for the respective quarter by day . we calculate days in inventory , accounts payable , and cash deposits as each balance sheet line item for the respective quarter divided by annualized cost of sales for the respective quarter by day . we calculate annualized cash cycle as the sum of days in accounts receivable , days in contract assets and days in inventory , less days in accounts payable and days in cash deposits . on september 30 , 2018 , the company adopted accounting standards update no . 2014-09 ( “ asu 2014-09 ” ) , revenue recognition ( topic 606 ) . for the three months ended september 28 , 2019 , cash cycle days include contract assets and an associated reduction in inventory . as the guidance was adopted using a modified retrospective approach , no impact to prior periods was required to be recognized .
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 Suspicious Activity Report : net sales for fiscal 2019 in the emea segment increased $ 28.4 million , or 10.1 % , as compared to fiscal 2018 . the increase in net sales was the result of a $ 20.2 million increase in production ramps of new products for existing customers , a $ 4.2 million increase in production ramps for new customers and overall net increased customer end-market demand . the increase was partially offset by a $ 6.2 million reduction due to a disengagement with a customer . our net sales by market sector for the indicated fiscal years were as follows ( in millions ) : replace_table_token_5_th healthcare/life sciences . net sales for fiscal 2019 in the healthcare/life sciences sector increased $ 180.1 million , or 17.3 % , as compared to fiscal 2018 . the increase was driven by overall net increased customer end-market demand , a $ 32.7 million increase in production ramps of new products for existing customers and a $ 26.9 million increase in production ramps for new customers . industrial/commercial . net sales for fiscal 2019 in the industrial/commercial sector increased $ 63.5 million , or 6.9 % , as compared to fiscal 2018 . the increase was driven by a $ 64.8 million increase in production ramps of new products for existing customers and a $ 33.2 million increase in production ramps for new customers . the increase was partially offset by a $ 7.3 million decrease due to end-of-life products , a $ 4.2 million decrease due to a disengagement with a customer and overall net decreased customer end-market demand . aerospace/defense . net sales for fiscal 2019 in the aerospace/defense sector increased $ 143.5 million , or 32.2 % , as compared to fiscal 2018 . the increase was driven by a $ 120.2 million increase in production ramps of new products for existing customers , a $ 9.9 million increase in production ramps for new customers and overall net increased customer end-market demand . communications . net sales for fiscal 2019 in the communications sector decreased $ 96.2 million , or 20.4 % , as compared to fiscal 2018 . the decrease was driven by a $ 37.3 million reduction due to disengagements with customers , a $ 15.3 million decrease due to end-of-life products and overall net decreased customer end-market demand . the decrease was partially offset by an $ 18.1 million increase in production ramps of new products for existing customers and a $ 4.5 million increase in production ramps for new customers . 24 as a percentage of consolidated net sales , net sales attributable to customers representing 10 % or more of consolidated net sales as well as the percentage of net sales attributable to our ten largest customers for the indicated fiscal years were as follows : replace_table_token_6_th cost of sales . cost of sales for fiscal 2019 increased $ 256.7 million , or 9.8 % , as compared to fiscal 2018 . cost of sales is comprised primarily of material and component costs , labor costs and overhead . in fiscal 2019 and 2018 , approximately 89 % of the total cost of sales was variable in nature and fluctuated with sales volumes . of these amounts , approximately 86 % and 88 % of these costs in fiscal 2019 and 2018 , respectively , were related to material and component costs . as compared to fiscal 2018 , the increase in cost of sales in fiscal 2019 was primarily driven by the increase in net sales and increased fixed costs to support program ramps . partially offsetting the increase was a positive shift in customer mix and the $ 13.5 million one-time employee bonus ( the `` one-time employee bonus `` ) that was paid during fiscal 2018 , of which $ 12.6 million impacted cost of sales in that period . gross profit . gross profit for fiscal 2019 increased $ 34.2 million , or 13.3 % , as compared to fiscal 2018 . gross margin of 9.2 % increased by 20 basis points as compared to fiscal 2018. the primary driver of the increases in gross profit and gross margin as compared to fiscal 2018 was the increase in net sales , a positive shift in customer mix and the one-time employee bonus that was paid during fiscal 2018. operating income . operating income for fiscal 2019 increased $ 23.8 million , or 20.1 % , as compared to fiscal 2018 as a result of the increase in gross profit as well as the non-recurrence of the one-time employee bonus that was paid during fiscal 2018 , as noted above . this was partially offset by an $ 8.8 million increase in selling and administrative expenses , driven by a $ 4.9 million increase in compensation expense , and $ 1.7 million of restructuring costs . operating margin of 4.5 % increased 40 basis points compared to fiscal 2018 primarily due to the increase in gross margin as a result of the factors discussed above . a discussion of operating income by reportable segment is presented below ( in millions ) : replace_table_token_7_th amer . operating income increased $ 19.2 million in fiscal 2019 as compared to fiscal 2018 , primarily as a result of the increase in net sales and a positive shift in customer mix , partially offset by increased fixed costs to support new program ramps . apac . operating income decreased $ 5.7 million in fiscal 2019 as compared to fiscal 2018 , primarily as a result of a negative shift in customer mix and increased fixed costs to support new program ramps , partially offset by the increase in net sales . emea . operating income increased $ 3.0 million in fiscal 2019 as compared to fiscal 2018 primarily as a result of the increase in net sales and a positive shift in customer mix , partially offset by increased fixed costs to support new program ramps . story_separator_special_tag 2 ) as of september 28 , 2019 , capital lease obligations consists of capital lease payments and interest as well as the non-cash financing obligation related to the failed sale-leasebacks in guadalajara , mexico ; see note 4 , `` debt , capital lease obligations and other financing , `` in notes to consolidated financial statements for further information . 3 ) as of september 28 , 2019 , purchase obligations consist primarily of purchases of inventory and equipment in the ordinary course of business . 4 ) consists of u.s. federal income taxes on the deemed repatriation of undistributed foreign earnings due to tax reform . refer to `` liquidity and capital resources `` above for further detail . 5 ) as of september 28 , 2019 , other obligations on the balance sheet included deferred compensation obligations to certain of our former and current executive officers , as well as other key employees , and an asset retirement obligation . we have excluded from the above table the impact of approximately $ 2.3 million , as of september 28 , 2019 , related to unrecognized income tax benefits . the company can not make reliable estimates of the future cash flows by period related to these obligations . 6 ) as of september 28 , 2019 , other obligations not on the balance sheet consist of guarantees and a commitment for salary continuation and certain benefits in the event employment of one executive officer of the company is terminated without cause . excluded from the amounts disclosed are certain bonus and incentive compensation amounts , which would be paid on a prorated basis in the year of termination . 7 ) includes future minimum lease payments for two facilities in guadalajara , mexico , leased under 10-year and 15-year base lease agreements , both of which include two 5-year renewal options ; see note 4 , `` debt , capital lease obligations and other financing , `` in notes to consolidated financial statements for further information . 32 disclosure about critical accounting estimates our accounting policies are disclosed in note 1 of notes to consolidated financial statements . during fiscal 2019 , other than changes related to revenue recognition , there were no material changes to these policies . our more critical accounting estimates are described below : revenue recognition : asu 2014-09 , topic 606 , which was adopted at the beginning of fiscal 2019 , resulted in a change to the timing of revenue recognition for a significant portion of the company 's revenue , whereby revenue is now recognized over time as products are produced , as opposed to at a point in time based upon shipping terms . since adopting the standard , revenue is recognized over time for arrangements with customers for which : ( i ) the company 's performance does not create an asset with an alternative use to the company , and ( ii ) the company has an enforceable right to payment , including a reasonable profit margin , for performance completed to date . revenue recognized over time is estimated based on costs incurred to date plus a reasonable profit margin . if either of the two conditions noted above are not met to recognize revenue over time , revenue is recognized following the transfer of control of such products to the customer , which typically occurs upon shipment or delivery depending on the terms of the underlying arrangement . the company recognizes revenue when a contract exists and when , or as , it satisfies a performance obligation by transferring control of a product or service to a customer . contracts are accounted for when they have approval and commitment from both parties , the rights of the parties are identified , payment terms are identified , the contract has commercial substance and collectability of consideration is probable . a performance obligation is a promise in a contract to transfer a distinct good or service to the customer . the company generally enters into a master services arrangement that establishes the framework under which business will be conducted . these arrangements represent the master terms and conditions of the company 's services that apply to individual orders , but they do not commit the customer to work with , or to continue to work with , the company nor do they obligate the customer to any specific volume or pricing of purchases . moreover , these terms can be amended in appropriate situations . customer purchase orders are received for specific quantities with predominantly fixed pricing and delivery requirements . thus , for the majority of our contracts , there is no guarantee of any revenue to the company until a customer submits a purchase order . as a result , the company generally considers its arrangement with a customer to be the combination of the master services arrangement and the purchase order . most of the company 's arrangements with customers create a single performance obligation as the promise to transfer the individual manufactured product or service is capable of being distinct . the company 's performance obligations are satisfied over time as work progresses or at a point in time . a performance obligation is satisfied over time if the company has an enforceable right to payment , including a reasonable profit margin . determining if an enforceable right to payment includes a reasonable profit margin requires judgment and is assessed on a contract by contract basis . if an enforceable right to payment for work-in-process does not exist , revenue is recognized following the transfer of control of such products to the customer , which typically occurs upon shipment or delivery depending on the terms of the underlying contract . for contracts requiring over time revenue recognition , the selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be

