drive profitable long-term growth the “ drive profitable long-term growth ” objective of operation north star is focused on a series of initiatives to grow our net sales , including : strengthen our home offerings ( “ home ” ) , which spans our furniture , seasonal , and soft home merchandise categories , as a destination for jennifer ; grow store traffic through various traffic driver initiatives ; continue responsible investment in our “ store of the future ” growth platform and other store presentation initiatives ; grow our store count , which increased in 2019 for the first time since 2012 ; and grow our e-commerce sales , including buy online pick up in store ( “ bopis ” ) activities . fund the journey the “ fund the journey ” objective of operation north star is focused on a series of initiatives to reduce costs so we can invest those savings in the growth areas of our business . those initiatives include : restructure our field and corporate headquarters teams to streamline our leadership structure , reduce overhead costs , and align our resources with operating north star objectives ; restructure our store management structure to better serve jennifer and optimize overall payroll hours ; and analyze our purchasing habits and vendor agreements for retail merchandise and other goods and services to ensure we are maximizing our buying power and making cost-effective decisions . additionally , we continue to evolve our supply chain capabilities and we have established several enablement workstreams to ensure we have the technology and processes in place to achieve our “ drive profitable long-term growth ” and “ fund the journey ” objectives . create long-term shareholder value the “ create long-term shareholder value ” objective is the culmination of our “ drive profitable long-term growth ” and “ fund the journey ” objectives . if we effectively execute the first two objectives of operation north star , we believe that we will deliver value to our shareholders through earnings growth over time . 21 merchandising we focus our merchandising strategy on being the authority on price and value to jennifer in all of our merchandise categories and by providing a merchandise assortment that surprises and delights her . under operation north star , our merchandising strategy is also focused on strengthening our home offerings . home is an area where we believe jennifer gives us the right to play and where we believe we can play to win . strengthening home begins with growth of our own brands , particularly the broyhill ® brand , an iconic brand that we acquired in 2018. we launched the broyhill ® brand of product offerings in late 2019 with initial product offerings in our furniture , seasonal , soft home , and hard home merchandise categories . available both in-store and online , we believe the broyhill ® assortment strengthens our home assortment with a high-quality product offering at a value-based price that jennifer finds attractive . we plan to launch an expanded assortment of broyhill ® products in 2020. we believe our merchandising strategies for furniture , seasonal , and soft home position us to surprise and delight jennifer with our home offerings : our furniture category primarily focuses on being a destination for our core customer 's home furnishing needs , such as upholstery , mattresses , case goods , and ready-to-assemble . in furniture , we believe our competitive advantage is attributable to our sourcing relationships , our in-store availability , and everyday value offerings . a significant majority of our offerings in this category consist of replenishable products sold under our own brands or sourced from recognized brand-name manufacturers . our long-standing relationships with certain brand-name manufacturers , most notably in our mattresses and upholstery departments , allow us to work directly with them to create product offerings specifically for us , which enables us to provide a high-quality product at a competitive price . additionally , we believe our “ buy today , take home today ” practice of carrying in-stock inventory of our core furniture offerings , which allows jennifer to take home her purchase at the end of her shopping experience , positively differentiates us from our competition . we encourage jennifer to shop and buy our products online anytime and anywhere , and we invite her into our stores to touch and feel the quality and comfort of our products . we believe that offering a focused assortment , which is displayed in furniture vignettes , provides jennifer a solution for decorating her home when combined with our home décor offerings . supplementing our merchandising and presentation strategies , we provide multiple third-party financing options for our customers who may be more challenged for approval in traditional credit channels . our financing partners are solely responsible for the credit approval decisions and carry the financial risk . our seasonal category strengthens home with our patio furniture , gazebos , and christmas trim departments . we believe we have a competitive advantage in this category by offering trend-right products with a strong value proposition in our own brands . we have a large selection of samples assembled and displayed throughout the seasonal section of our store and have packaged the box stock so that it is very easy for jennifer to purchase and take home . much of this merchandise is sourced on an import basis , which allows us to maintain our competitive pricing . additionally , our seasonal category offers a mix of departments and products that complement her outdoor experience and holiday decorating desires . we continue to work with our vendors to expand the product assortment in our seasonal category to respond to jennifer 's evolving wants and needs . our soft home category complements our furniture and seasonal categories in making our stores a destination for a broader range of home needs . story_separator_special_tag by the decreased net sales and negative comps in our food , hard home , and electronics , toys , & accessories merchandise categories : our food category experienced decreased net sales and negative comps driven by competitive pressures on our staple food offerings and the impact of our store of the future conversions , which places our food merchandise at the back of the store . the decrease in net sales and comps in the electronics , toys , & accessories category was due to an intentionally narrowed assortment , specifically in our electronics department , as part of the reduction in the allocation of square footage to this category due to our store of the future conversions . 26 hard home experienced decreased net sales and negative comps as a result of gradual space reduction , as we convert stores to our store of the future concept , and the exit from our greeting card offering during the second quarter of 2019. gross margin gross margin dollars decreased $ 7.2 million , or 0.3 % , to $ 2,114.7 million in 2019 , compared to $ 2,121.9 million in 2018 . the decrease in gross margin dollars was primarily due to a lower gross margin rate , which decreased gross margin dollars by approximately $ 41.7 million , partially offset by an increase in net sales , which increased gross margin dollars by approximately $ 34.5 million . gross margin as a percentage of net sales , or gross margin rate , decreased 80 basis points to 39.7 % in 2019 compared to 40.5 % in 2018 . the gross margin rate decrease was due to a $ 6.0 million impairment of inventory in our greeting cards department , which we chose to exit in the first quarter of 2019 , a higher markdown rate from increased promotional activities , particularly in the fourth quarter of 2019 , and a higher shrink rate compared to 2018. the decrease in gross margin rate was partially offset by a higher initial mark-up compared to 2018. selling and administrative expenses selling and administrative expenses were $ 1,823.4 million in 2019 , compared to $ 1,778.4 million in 2018 . the increase of $ 45.0 million , or 2.5 % , was primarily due to $ 38.3 million in costs associated with our transformational restructuring initiative , “ operation north star , ” that we announced in the first quarter of 2019 , store-related occupancy costs of $ 23.9 million , $ 12.7 million in accrued bonus expense , $ 11.3 million in distribution and transportation expense , $ 7.3 million in estimated costs associated with employee wage and hour claims brought against us in the state of california , and an increase in advertising expense of $ 2.5 million , partially offset by store-related payroll of $ 10.9 million , share-based compensation expense of $ 9.1 million , store repairs and maintenance costs of $ 8.3 million , the 2018 impact of both the retirement of our former chief executive officer of $ 7.0 million and the $ 3.5 million in charges incurred related to the settlement of shareholder and derivative litigation matters filed in 2012 , and decreases in self-insurance costs of $ 3.7 million . the costs associated with our transformational restructuring initiative consisted of consulting expenses and employee separation costs in our corporate headquarters and our store organization incurred during 2019. store-related occupancy costs increased in 2019 primarily due to the impact of the adoption of a new lease accounting standard in conjunction with our store of the future remodel program , the impact of rent associated with leases acquired in 2018 through bankruptcy proceedings in locations that generated rent expense beginning in the first quarter of 2019 , but did not open until the second and third quarters of 2019 , normal rent increases for lease renewals , and the impact of right-of-use asset impairments on a few early store closings . the increase in accrued bonus expense was driven by stronger performance in 2019 relative to our quarterly and annual operating plans as compared to our performance in 2018 relative to our quarterly and annual operating plans . distribution and transportation expense was higher than 2018 due to occupancy and pre-opening costs associated with our new california distribution center , as well as higher transportation rates . the increase in advertising cost was primarily a result of higher spend on video media advertising and social media marketing . the decrease in store-related payroll was primarily due to the strategic reorganization of our store workforce at the end of the second quarter of 2019 , which optimized our store management structure to better serve our customers and resulted in a lower average wage rate and a reduction in total payroll hours . our share-based compensation expense decreased as a result of lower attainment of the long-term target on our 2017 performance share units ( “ psus ” ) expensed in 2019 , relative to the attainment of the 2016 psus expensed in 2018. our share-based compensation expense also decreased due to the lower average grant date fair value on awards expensed in 2019 compared to those recorded in 2018. the lower expense in store repairs and maintenance was driven by improved expense management . the decrease in our self-insurance costs resulted from favorable actuarial trends realized in 2019 , partially offset by a decrease in the discount rate for our self-insurance reserves . as a percentage of net sales , selling and administrative expenses increased by 30 basis points to 34.3 % in 2019 compared to 34.0 % in 2018 . our future selling and administrative expense as a percentage of net sales depends on many factors , including our level of net sales , and our ability to implement additional efficiencies , principally in our store and distribution center operations . depreciation expense depreciation expense increased $ 10.0 million to $ 135.0 million in 2019 compared

capital resources and liquidity on august 31 , 2018 , we entered into the 2018 credit agreement which provides for a $ 700 million five -year unsecured credit facility . the 2018 credit agreement expires on august 31 , 2023. borrowings under the 2018 credit agreement are available for general corporate purposes and working capital . the 2018 credit agreement includes a $ 30 million swing loan sublimit , a $ 75 million letter of credit sublimit , a $ 75 million sublimit for loans to foreign borrowers , and a $ 200 million optional currency sublimit . the interest rates , pricing and fees under the 2018 credit agreement fluctuate based on our debt rating . the 2018 credit agreement allows us to select our interest rate for each borrowing from multiple interest rate options . the interest rate options are generally derived from the prime rate or libor . we may prepay revolving loans made under the 2018 credit agreement . the 2018 credit agreement contains financial and other covenants , including , but not limited to , limitations on indebtedness , liens and investments , as well as the maintenance of two financial ratios – a leverage ratio and a fixed charge coverage ratio . additionally , we are subject to cross-default provisions associated with the synthetic lease . a violation of any of the covenants could result in a default under the 2018 credit agreement that would permit the lenders to restrict our ability to further access the 2018 credit agreement for loans and letters of credit and require the immediate repayment of any outstanding loans under the 2018 credit agreement . at february 1 , 2020 , we were in compliance with the covenants of the 2018 credit agreement . we use the 2018 credit agreement , as necessary , to provide funds for ongoing and seasonal working capital , capital expenditures , dividends , share repurchase programs , and other expenditures .


 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.
     ```capital resources and liquidity on august 31 , 2018 , we entered into the 2018 credit agreement which provides for a $ 700 million five -year unsecured credit facility . the 2018 credit agreement expires on august 31 , 2023. borrowings under the 2018 credit agreement are available for general corporate purposes and working capital . the 2018 credit agreement includes a $ 30 million swing loan sublimit , a $ 75 million letter of credit sublimit , a $ 75 million sublimit for loans to foreign borrowers , and a $ 200 million optional currency sublimit . the interest rates , pricing and fees under the 2018 credit agreement fluctuate based on our debt rating . the 2018 credit agreement allows us to select our interest rate for each borrowing from multiple interest rate options . the interest rate options are generally derived from the prime rate or libor . we may prepay revolving loans made under the 2018 credit agreement . the 2018 credit agreement contains financial and other covenants , including , but not limited to , limitations on indebtedness , liens and investments , as well as the maintenance of two financial ratios – a leverage ratio and a fixed charge coverage ratio . additionally , we are subject to cross-default provisions associated with the synthetic lease . a violation of any of the covenants could result in a default under the 2018 credit agreement that would permit the lenders to restrict our ability to further access the 2018 credit agreement for loans and letters of credit and require the immediate repayment of any outstanding loans under the 2018 credit agreement . at february 1 , 2020 , we were in compliance with the covenants of the 2018 credit agreement . we use the 2018 credit agreement , as necessary , to provide funds for ongoing and seasonal working capital , capital expenditures , dividends , share repurchase programs , and other expenditures .
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 Suspicious Activity Report : drive profitable long-term growth the “ drive profitable long-term growth ” objective of operation north star is focused on a series of initiatives to grow our net sales , including : strengthen our home offerings ( “ home ” ) , which spans our furniture , seasonal , and soft home merchandise categories , as a destination for jennifer ; grow store traffic through various traffic driver initiatives ; continue responsible investment in our “ store of the future ” growth platform and other store presentation initiatives ; grow our store count , which increased in 2019 for the first time since 2012 ; and grow our e-commerce sales , including buy online pick up in store ( “ bopis ” ) activities . fund the journey the “ fund the journey ” objective of operation north star is focused on a series of initiatives to reduce costs so we can invest those savings in the growth areas of our business . those initiatives include : restructure our field and corporate headquarters teams to streamline our leadership structure , reduce overhead costs , and align our resources with operating north star objectives ; restructure our store management structure to better serve jennifer and optimize overall payroll hours ; and analyze our purchasing habits and vendor agreements for retail merchandise and other goods and services to ensure we are maximizing our buying power and making cost-effective decisions . additionally , we continue to evolve our supply chain capabilities and we have established several enablement workstreams to ensure we have the technology and processes in place to achieve our “ drive profitable long-term growth ” and “ fund the journey ” objectives . create long-term shareholder value the “ create long-term shareholder value ” objective is the culmination of our “ drive profitable long-term growth ” and “ fund the journey ” objectives . if we effectively execute the first two objectives of operation north star , we believe that we will deliver value to our shareholders through earnings growth over time . 21 merchandising we focus our merchandising strategy on being the authority on price and value to jennifer in all of our merchandise categories and by providing a merchandise assortment that surprises and delights her . under operation north star , our merchandising strategy is also focused on strengthening our home offerings . home is an area where we believe jennifer gives us the right to play and where we believe we can play to win . strengthening home begins with growth of our own brands , particularly the broyhill ® brand , an iconic brand that we acquired in 2018. we launched the broyhill ® brand of product offerings in late 2019 with initial product offerings in our furniture , seasonal , soft home , and hard home merchandise categories . available both in-store and online , we believe the broyhill ® assortment strengthens our home assortment with a high-quality product offering at a value-based price that jennifer finds attractive . we plan to launch an expanded assortment of broyhill ® products in 2020. we believe our merchandising strategies for furniture , seasonal , and soft home position us to surprise and delight jennifer with our home offerings : our furniture category primarily focuses on being a destination for our core customer 's home furnishing needs , such as upholstery , mattresses , case goods , and ready-to-assemble . in furniture , we believe our competitive advantage is attributable to our sourcing relationships , our in-store availability , and everyday value offerings . a significant majority of our offerings in this category consist of replenishable products sold under our own brands or sourced from recognized brand-name manufacturers . our long-standing relationships with certain brand-name manufacturers , most notably in our mattresses and upholstery departments , allow us to work directly with them to create product offerings specifically for us , which enables us to provide a high-quality product at a competitive price . additionally , we believe our “ buy today , take home today ” practice of carrying in-stock inventory of our core furniture offerings , which allows jennifer to take home her purchase at the end of her shopping experience , positively differentiates us from our competition . we encourage jennifer to shop and buy our products online anytime and anywhere , and we invite her into our stores to touch and feel the quality and comfort of our products . we believe that offering a focused assortment , which is displayed in furniture vignettes , provides jennifer a solution for decorating her home when combined with our home décor offerings . supplementing our merchandising and presentation strategies , we provide multiple third-party financing options for our customers who may be more challenged for approval in traditional credit channels . our financing partners are solely responsible for the credit approval decisions and carry the financial risk . our seasonal category strengthens home with our patio furniture , gazebos , and christmas trim departments . we believe we have a competitive advantage in this category by offering trend-right products with a strong value proposition in our own brands . we have a large selection of samples assembled and displayed throughout the seasonal section of our store and have packaged the box stock so that it is very easy for jennifer to purchase and take home . much of this merchandise is sourced on an import basis , which allows us to maintain our competitive pricing . additionally , our seasonal category offers a mix of departments and products that complement her outdoor experience and holiday decorating desires . we continue to work with our vendors to expand the product assortment in our seasonal category to respond to jennifer 's evolving wants and needs . our soft home category complements our furniture and seasonal categories in making our stores a destination for a broader range of home needs . story_separator_special_tag by the decreased net sales and negative comps in our food , hard home , and electronics , toys , & accessories merchandise categories : our food category experienced decreased net sales and negative comps driven by competitive pressures on our staple food offerings and the impact of our store of the future conversions , which places our food merchandise at the back of the store . the decrease in net sales and comps in the electronics , toys , & accessories category was due to an intentionally narrowed assortment , specifically in our electronics department , as part of the reduction in the allocation of square footage to this category due to our store of the future conversions . 26 hard home experienced decreased net sales and negative comps as a result of gradual space reduction , as we convert stores to our store of the future concept , and the exit from our greeting card offering during the second quarter of 2019. gross margin gross margin dollars decreased $ 7.2 million , or 0.3 % , to $ 2,114.7 million in 2019 , compared to $ 2,121.9 million in 2018 . the decrease in gross margin dollars was primarily due to a lower gross margin rate , which decreased gross margin dollars by approximately $ 41.7 million , partially offset by an increase in net sales , which increased gross margin dollars by approximately $ 34.5 million . gross margin as a percentage of net sales , or gross margin rate , decreased 80 basis points to 39.7 % in 2019 compared to 40.5 % in 2018 . the gross margin rate decrease was due to a $ 6.0 million impairment of inventory in our greeting cards department , which we chose to exit in the first quarter of 2019 , a higher markdown rate from increased promotional activities , particularly in the fourth quarter of 2019 , and a higher shrink rate compared to 2018. the decrease in gross margin rate was partially offset by a higher initial mark-up compared to 2018. selling and administrative expenses selling and administrative expenses were $ 1,823.4 million in 2019 , compared to $ 1,778.4 million in 2018 . the increase of $ 45.0 million , or 2.5 % , was primarily due to $ 38.3 million in costs associated with our transformational restructuring initiative , “ operation north star , ” that we announced in the first quarter of 2019 , store-related occupancy costs of $ 23.9 million , $ 12.7 million in accrued bonus expense , $ 11.3 million in distribution and transportation expense , $ 7.3 million in estimated costs associated with employee wage and hour claims brought against us in the state of california , and an increase in advertising expense of $ 2.5 million , partially offset by store-related payroll of $ 10.9 million , share-based compensation expense of $ 9.1 million , store repairs and maintenance costs of $ 8.3 million , the 2018 impact of both the retirement of our former chief executive officer of $ 7.0 million and the $ 3.5 million in charges incurred related to the settlement of shareholder and derivative litigation matters filed in 2012 , and decreases in self-insurance costs of $ 3.7 million . the costs associated with our transformational restructuring initiative consisted of consulting expenses and employee separation costs in our corporate headquarters and our store organization incurred during 2019. store-related occupancy costs increased in 2019 primarily due to the impact of the adoption of a new lease accounting standard in conjunction with our store of the future remodel program , the impact of rent associated with leases acquired in 2018 through bankruptcy proceedings in locations that generated rent expense beginning in the first quarter of 2019 , but did not open until the second and third quarters of 2019 , normal rent increases for lease renewals , and the impact of right-of-use asset impairments on a few early store closings . the increase in accrued bonus expense was driven by stronger performance in 2019 relative to our quarterly and annual operating plans as compared to our performance in 2018 relative to our quarterly and annual operating plans . distribution and transportation expense was higher than 2018 due to occupancy and pre-opening costs associated with our new california distribution center , as well as higher transportation rates . the increase in advertising cost was primarily a result of higher spend on video media advertising and social media marketing . the decrease in store-related payroll was primarily due to the strategic reorganization of our store workforce at the end of the second quarter of 2019 , which optimized our store management structure to better serve our customers and resulted in a lower average wage rate and a reduction in total payroll hours . our share-based compensation expense decreased as a result of lower attainment of the long-term target on our 2017 performance share units ( “ psus ” ) expensed in 2019 , relative to the attainment of the 2016 psus expensed in 2018. our share-based compensation expense also decreased due to the lower average grant date fair value on awards expensed in 2019 compared to those recorded in 2018. the lower expense in store repairs and maintenance was driven by improved expense management . the decrease in our self-insurance costs resulted from favorable actuarial trends realized in 2019 , partially offset by a decrease in the discount rate for our self-insurance reserves . as a percentage of net sales , selling and administrative expenses increased by 30 basis points to 34.3 % in 2019 compared to 34.0 % in 2018 . our future selling and administrative expense as a percentage of net sales depends on many factors , including our level of net sales , and our ability to implement additional efficiencies , principally in our store and distribution center operations . depreciation expense depreciation expense increased $ 10.0 million to $ 135.0 million in 2019 compared

