however , if the degree of uncertainty or volatility worsens or is prolonged , then there will likely be a negative effect on ongoing consumer confidence , demand and spending and as a result , our business . currently , we believe general economic and other uncertainties still exist in select markets in which we do business , and we continue to monitor global economic uncertainties and other risks that may affect our business . our reported net sales are impacted by changes in foreign currency exchange rates . a strong u.s. dollar has a negative impact on our net sales . however , earnings are positively affected by a strong dollar , because approximately 40 % of net sales of our european operations are denominated in u.s. dollars , while almost all costs of our european operations are incurred in euro . our company addresses certain financial exposures through a controlled program of risk management that includes the use of derivative financial instruments . we primarily enter into foreign currency forward exchange contracts to reduce the effects of fluctuating foreign currency exchange rates . we are also carefully monitoring currency trends in the united kingdom as a result of the volatility created from the united kingdom 's decision to exit the european union . we have evaluated our current pricing models and currently we do not expect any significant pricing changes . however , if the devaluation of the british pound worsens , it may affect future gross profit margins from sales in the territory . we do not expect any material losses on accounts receivables to be collected in british pounds as we routinely hedge those amounts . recent important events buyout of license in december 2016 , the company reached an agreement with the balmain brand calling for balmain to buyout the balmain license agreement , effective december 31 , 2016 , in exchange for a payment aggregating 5.4 million ( approximately $ 5.7 million ) . as a result of the buyout , the company recognized a gain of $ 4.7 million and expects to receive the buyout payment by april 30 , 2017. the company has a three month inventory sell-off period ending march 31 , 2017 and balmain has also agreed to purchase all remaining inventory and tangible assets . 35 impairment loss the company reviews intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable . product sales of our karl lagerfeld brand have not met with our original expectations . during the fourth quarter of 2016 , the company decided that it will most likely exercise its rights for an early termination of the karl lagerfeld license in 2024 , rather than continue the license through its original expiration in 2032. as a result of the shortened expected life of the license , the company recorded an impairment loss of $ 5.7 million as of december 31 , 2016. s.t . dupont in september 2016 , we renewed our license agreement with s.t . dupont for the creation , development and distribution of fragrance products through december 31 , 2019 , without any material changes in terms and conditions . our initial 11-year license agreement with s.t . dupont was signed in june 1997 , and had previously been extended through december 31 , 2016. settlement with french tax authorities as previously reported , the french tax authorities examined the 2012 tax return of interparfums sa , and in august 2015 issued a $ 6.9 million tax adjustment . it is the company 's position that the french tax authorities are incorrect in their assessments and the company believes that it has strong arguments to support its tax positions . the main issues challenged by the french tax authorities related to the commission rate and royalty rate paid to interparfums singapore pte . and interparfums ( suisse ) sarl , respectively . interparfums singapore pte . and interparfums ( suisse ) sarl are wholly-owned subsidiaries of interparfums sa . due to the subjective nature of the issues involved , in april 2016 , interparfums sa reached an agreement in principle to settle the entire matter with the french tax authorities . the settlement requires interparfums sa to pay a tax assessment of $ 1.9 million covering the issues for not only the 2012 tax year , but also covering the issues for the tax years ended 2013 through 2015. the settlement also includes an agreement as to future acceptable commission and royalty rates , which is not expected to have a significant impact on cash flow . the settlement , which is subject to formal documentation with the french tax authorities , was accrued for in march 2016. in july 2016 , interparfums sa paid $ 1.1 million to the french tax authorities upon receipt of formal notification regarding tax years 2013 and 2014. discussion of critical accounting policies we make estimates and assumptions in the preparation of our financial statements in conformity with accounting principles generally accepted in the united states of america . actual results could differ significantly from those estimates under different assumptions and conditions . we believe the following discussion addresses our most critical accounting policies , which are those that are most important to the portrayal of our financial condition and results of operations . these accounting policies generally require our management 's most difficult and subjective judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . management of the company has discussed the selection of significant accounting policies and the effect of estimates with the audit committee of the board of directors . 36 revenue recognition we sell our products to department stores , perfumeries , specialty stores , and domestic and international wholesalers and distributors . story_separator_special_tag the success of the 2015 launch of dunhill icon has enabled dunhill to quickly become the largest brand within our united states operations . although oscar de la renta brand sales had increased 18 % in 2015 , benefitting from the 2015 launch of extraordinary by oscar de la renta , sales of this brand decreased 28 % in 2016 due to large part to the absence of any major product launch . for the spring of 2017 , we have a new oscar de la renta woman 's scent ready to launch . in addition , sales of anna sui fragrances continued to be depressed due to negative market conditions in china throughout the 2014 to 2016 periods . we hope to reverse this trend and anticipate either stable sales or modest growth for anna sui fragrances for 2017. for 2017 , we expect our newest brands abercrombie & fitch and hollister , to lead our growth story . overall , growth within our united states based operations is expected to come from our prestige fragrance licenses , by launching new products and pursuing expanded distribution 42 lastly , we hope to benefit our worldwide operations from our strong financial position to potentially acquire one or more brands , either on a proprietary basis or as a licensee . however , we can not assure you that any new license or acquisition agreements will be consummated . net sales to customers by region replace_table_token_12_th in 2016 , we continued to feel the effect of negative market conditions in eastern europe , the middle east and china , while western europe and north america continued to perform well . for 2015 compared to 2014 , the results demonstrate the effect of negative market conditions in china and south america . the 2015 decline in western europe includes the effect of the 17 % devaluation of the euro against the dollar and the difficult comparison for karl lagerfeld brand sales in 2015 compared to the initial launch of that brand in the 2014 period . gross margins replace_table_token_13_th as a percentage of net sales , gross profit margins were 62.7 % , 61.8 % , and 57.5 % in 2016 , 2015 and 2014 , respectively . for european operations , gross profit margin was 66 % , 65 % and 60 % in 2016 , 2015 and 2014 , respectively . the margin fluctuation as a percentage of sales for european operations in 2016 , as compared to 2015 , is primarily the result of increased product sales , much of which was through our distribution subsidiaries that sell product directly to retailers . in addition to increased sales of montblanc and coach product sold through our united states distribution subsidiary , the rochas brand was also a major contributor as its sales are concentrated in france and spain , both of which are countries where we distribute directly to retailers . we carefully monitor movements in foreign currency exchange rates as almost 40 % of our european based operations net sales is denominated in u.s. dollars , while most of our costs are incurred in euro . from a margin standpoint , a strong u.s. dollar has a positive effect on our gross margin while a weak u.s. dollar has a negative effect . the average dollar/euro exchange rate was 1.11 in 2016 and 2015 and 1.33 in 2014. although currency fluctuation had only a minor effect on gross margin as a percentage of sales in our european operations for 2016 , in 2015 it was the primary cause of the gross margin fluctuation . 43 for united states operations , gross profit margin was 50 % for both 2016 and 2015 and 48 % in 2014. sales growth in recent years for our united states operations has primarily come from higher margin prestige product licenses while sales of other lower margin fragrance products have been in a decline . costs relating to purchase with purchase and gift with purchase promotions are reflected in cost of sales and aggregated $ 30.0 million , $ 25.4 million and $ 24.4 million in 2016 , 2015 and 2014 , respectively , and represented 5.8 % , 5.4 % and 4.9 % of net sales , respectively . generally , we do not bill customers for shipping and handling costs and such costs , which aggregated $ 5.1 million , $ 4.7 million and $ 5.2 million in 2016 , 2015 and 2014 , respectively , are included in selling , general and administrative expenses in the consolidated statements of income . as such , our company 's gross margins may not be comparable to other companies , which may include these expenses as a component of cost of goods sold . selling , general & administrative expenses replace_table_token_14_th selling , general and administrative expenses increased 13 % in 2016 as compared to 2015 and decreased 2 % in 2015 as compared to 2014. as a percentage of sales , selling , general and administrative expenses were 50 % , 49 % and 47 % in 2016 , 2015 and 2014 , respectively . for european operations , selling , general and administrative expenses increased 14 % in 2016 , as compared to 2015 and represented 53 % of sales in 2016 as compared to 52 % in 2015. as discussed in more detail below , the 2016 increase is primarily from increased promotion and advertising expenditures . for united states operations , selling , general and administrative expenses increased 9 % in 2016 and represented 38 % of sales , as compared to 39 % in 2015. this increase is in line with sales growth from our newest prestige product licenses , such as abercrombie & fitch , hollister and dunhill , all of which bear royalty and advertising expenses . promotion and advertising included in selling , general and administrative expenses aggregated $ 99.0 million , $ 83.8 million and

liquidity and capital resources the company 's financial position remains strong . at december 31 , 2016 , working capital aggregated $ 338 million and we had a working capital ratio of almost 3.4 to 1. cash and cash equivalents and short-term investments aggregated $ 256 million most of which is held in euro by our european operations and is readily convertible into u.s. dollars . we have not had any liquidity issues to date , and do not expect any liquidity issues relating to such cash and cash equivalents and short-term investments held by our european operations . approximately 88 % of the company 's total assets are held by european operations . in addition to the cash and cash equivalents and short-term investments referred to above , approximately $ 174 million of trademarks , licenses and other intangible assets are held by european operations . the company hopes to benefit from its strong financial position to potentially acquire one or more brands , either on a proprietary basis or as a licensee . opportunities for external growth continue to be examined , with the priority of maintaining the quality and homogeneous nature of our portfolio . however , we can not assure you that any new license or acquisition agreements will be consummated . cash provided by operating activities aggregated $ 54.6 million , $ 50.1 million and $ 36.6 million in 2016 , 2015 and 2014 , respectively . in 2016 , working capital items used $ 0.2 million in cash from operating activities , as compared to $ 0.6 million in 2015 and $ 10.9 million in 2014. although accounts receivable is up from that of the prior year , days sales outstanding remained relatively consistent at 71 days in 2016 , as compared to 75 days and 66 days in 2015 and 2014 , respectively . inventory days on hand aggregated 185 days in 2016 , as compared to 213 days in 2015 and 198 days in 2014 , respectively . fluctuations are primarily a function of new product launch dates .


 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 company 's financial position remains strong . at december 31 , 2016 , working capital aggregated $ 338 million and we had a working capital ratio of almost 3.4 to 1. cash and cash equivalents and short-term investments aggregated $ 256 million most of which is held in euro by our european operations and is readily convertible into u.s. dollars . we have not had any liquidity issues to date , and do not expect any liquidity issues relating to such cash and cash equivalents and short-term investments held by our european operations . approximately 88 % of the company 's total assets are held by european operations . in addition to the cash and cash equivalents and short-term investments referred to above , approximately $ 174 million of trademarks , licenses and other intangible assets are held by european operations . the company hopes to benefit from its strong financial position to potentially acquire one or more brands , either on a proprietary basis or as a licensee . opportunities for external growth continue to be examined , with the priority of maintaining the quality and homogeneous nature of our portfolio . however , we can not assure you that any new license or acquisition agreements will be consummated . cash provided by operating activities aggregated $ 54.6 million , $ 50.1 million and $ 36.6 million in 2016 , 2015 and 2014 , respectively . in 2016 , working capital items used $ 0.2 million in cash from operating activities , as compared to $ 0.6 million in 2015 and $ 10.9 million in 2014. although accounts receivable is up from that of the prior year , days sales outstanding remained relatively consistent at 71 days in 2016 , as compared to 75 days and 66 days in 2015 and 2014 , respectively . inventory days on hand aggregated 185 days in 2016 , as compared to 213 days in 2015 and 198 days in 2014 , respectively . fluctuations are primarily a function of new product launch dates .
```    
 Suspicious Activity Report : however , if the degree of uncertainty or volatility worsens or is prolonged , then there will likely be a negative effect on ongoing consumer confidence , demand and spending and as a result , our business . currently , we believe general economic and other uncertainties still exist in select markets in which we do business , and we continue to monitor global economic uncertainties and other risks that may affect our business . our reported net sales are impacted by changes in foreign currency exchange rates . a strong u.s. dollar has a negative impact on our net sales . however , earnings are positively affected by a strong dollar , because approximately 40 % of net sales of our european operations are denominated in u.s. dollars , while almost all costs of our european operations are incurred in euro . our company addresses certain financial exposures through a controlled program of risk management that includes the use of derivative financial instruments . we primarily enter into foreign currency forward exchange contracts to reduce the effects of fluctuating foreign currency exchange rates . we are also carefully monitoring currency trends in the united kingdom as a result of the volatility created from the united kingdom 's decision to exit the european union . we have evaluated our current pricing models and currently we do not expect any significant pricing changes . however , if the devaluation of the british pound worsens , it may affect future gross profit margins from sales in the territory . we do not expect any material losses on accounts receivables to be collected in british pounds as we routinely hedge those amounts . recent important events buyout of license in december 2016 , the company reached an agreement with the balmain brand calling for balmain to buyout the balmain license agreement , effective december 31 , 2016 , in exchange for a payment aggregating 5.4 million ( approximately $ 5.7 million ) . as a result of the buyout , the company recognized a gain of $ 4.7 million and expects to receive the buyout payment by april 30 , 2017. the company has a three month inventory sell-off period ending march 31 , 2017 and balmain has also agreed to purchase all remaining inventory and tangible assets . 35 impairment loss the company reviews intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable . product sales of our karl lagerfeld brand have not met with our original expectations . during the fourth quarter of 2016 , the company decided that it will most likely exercise its rights for an early termination of the karl lagerfeld license in 2024 , rather than continue the license through its original expiration in 2032. as a result of the shortened expected life of the license , the company recorded an impairment loss of $ 5.7 million as of december 31 , 2016. s.t . dupont in september 2016 , we renewed our license agreement with s.t . dupont for the creation , development and distribution of fragrance products through december 31 , 2019 , without any material changes in terms and conditions . our initial 11-year license agreement with s.t . dupont was signed in june 1997 , and had previously been extended through december 31 , 2016. settlement with french tax authorities as previously reported , the french tax authorities examined the 2012 tax return of interparfums sa , and in august 2015 issued a $ 6.9 million tax adjustment . it is the company 's position that the french tax authorities are incorrect in their assessments and the company believes that it has strong arguments to support its tax positions . the main issues challenged by the french tax authorities related to the commission rate and royalty rate paid to interparfums singapore pte . and interparfums ( suisse ) sarl , respectively . interparfums singapore pte . and interparfums ( suisse ) sarl are wholly-owned subsidiaries of interparfums sa . due to the subjective nature of the issues involved , in april 2016 , interparfums sa reached an agreement in principle to settle the entire matter with the french tax authorities . the settlement requires interparfums sa to pay a tax assessment of $ 1.9 million covering the issues for not only the 2012 tax year , but also covering the issues for the tax years ended 2013 through 2015. the settlement also includes an agreement as to future acceptable commission and royalty rates , which is not expected to have a significant impact on cash flow . the settlement , which is subject to formal documentation with the french tax authorities , was accrued for in march 2016. in july 2016 , interparfums sa paid $ 1.1 million to the french tax authorities upon receipt of formal notification regarding tax years 2013 and 2014. discussion of critical accounting policies we make estimates and assumptions in the preparation of our financial statements in conformity with accounting principles generally accepted in the united states of america . actual results could differ significantly from those estimates under different assumptions and conditions . we believe the following discussion addresses our most critical accounting policies , which are those that are most important to the portrayal of our financial condition and results of operations . these accounting policies generally require our management 's most difficult and subjective judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . management of the company has discussed the selection of significant accounting policies and the effect of estimates with the audit committee of the board of directors . 36 revenue recognition we sell our products to department stores , perfumeries , specialty stores , and domestic and international wholesalers and distributors . story_separator_special_tag the success of the 2015 launch of dunhill icon has enabled dunhill to quickly become the largest brand within our united states operations . although oscar de la renta brand sales had increased 18 % in 2015 , benefitting from the 2015 launch of extraordinary by oscar de la renta , sales of this brand decreased 28 % in 2016 due to large part to the absence of any major product launch . for the spring of 2017 , we have a new oscar de la renta woman 's scent ready to launch . in addition , sales of anna sui fragrances continued to be depressed due to negative market conditions in china throughout the 2014 to 2016 periods . we hope to reverse this trend and anticipate either stable sales or modest growth for anna sui fragrances for 2017. for 2017 , we expect our newest brands abercrombie & fitch and hollister , to lead our growth story . overall , growth within our united states based operations is expected to come from our prestige fragrance licenses , by launching new products and pursuing expanded distribution 42 lastly , we hope to benefit our worldwide operations from our strong financial position to potentially acquire one or more brands , either on a proprietary basis or as a licensee . however , we can not assure you that any new license or acquisition agreements will be consummated . net sales to customers by region replace_table_token_12_th in 2016 , we continued to feel the effect of negative market conditions in eastern europe , the middle east and china , while western europe and north america continued to perform well . for 2015 compared to 2014 , the results demonstrate the effect of negative market conditions in china and south america . the 2015 decline in western europe includes the effect of the 17 % devaluation of the euro against the dollar and the difficult comparison for karl lagerfeld brand sales in 2015 compared to the initial launch of that brand in the 2014 period . gross margins replace_table_token_13_th as a percentage of net sales , gross profit margins were 62.7 % , 61.8 % , and 57.5 % in 2016 , 2015 and 2014 , respectively . for european operations , gross profit margin was 66 % , 65 % and 60 % in 2016 , 2015 and 2014 , respectively . the margin fluctuation as a percentage of sales for european operations in 2016 , as compared to 2015 , is primarily the result of increased product sales , much of which was through our distribution subsidiaries that sell product directly to retailers . in addition to increased sales of montblanc and coach product sold through our united states distribution subsidiary , the rochas brand was also a major contributor as its sales are concentrated in france and spain , both of which are countries where we distribute directly to retailers . we carefully monitor movements in foreign currency exchange rates as almost 40 % of our european based operations net sales is denominated in u.s. dollars , while most of our costs are incurred in euro . from a margin standpoint , a strong u.s. dollar has a positive effect on our gross margin while a weak u.s. dollar has a negative effect . the average dollar/euro exchange rate was 1.11 in 2016 and 2015 and 1.33 in 2014. although currency fluctuation had only a minor effect on gross margin as a percentage of sales in our european operations for 2016 , in 2015 it was the primary cause of the gross margin fluctuation . 43 for united states operations , gross profit margin was 50 % for both 2016 and 2015 and 48 % in 2014. sales growth in recent years for our united states operations has primarily come from higher margin prestige product licenses while sales of other lower margin fragrance products have been in a decline . costs relating to purchase with purchase and gift with purchase promotions are reflected in cost of sales and aggregated $ 30.0 million , $ 25.4 million and $ 24.4 million in 2016 , 2015 and 2014 , respectively , and represented 5.8 % , 5.4 % and 4.9 % of net sales , respectively . generally , we do not bill customers for shipping and handling costs and such costs , which aggregated $ 5.1 million , $ 4.7 million and $ 5.2 million in 2016 , 2015 and 2014 , respectively , are included in selling , general and administrative expenses in the consolidated statements of income . as such , our company 's gross margins may not be comparable to other companies , which may include these expenses as a component of cost of goods sold . selling , general & administrative expenses replace_table_token_14_th selling , general and administrative expenses increased 13 % in 2016 as compared to 2015 and decreased 2 % in 2015 as compared to 2014. as a percentage of sales , selling , general and administrative expenses were 50 % , 49 % and 47 % in 2016 , 2015 and 2014 , respectively . for european operations , selling , general and administrative expenses increased 14 % in 2016 , as compared to 2015 and represented 53 % of sales in 2016 as compared to 52 % in 2015. as discussed in more detail below , the 2016 increase is primarily from increased promotion and advertising expenditures . for united states operations , selling , general and administrative expenses increased 9 % in 2016 and represented 38 % of sales , as compared to 39 % in 2015. this increase is in line with sales growth from our newest prestige product licenses , such as abercrombie & fitch , hollister and dunhill , all of which bear royalty and advertising expenses . promotion and advertising included in selling , general and administrative expenses aggregated $ 99.0 million , $ 83.8 million and

