by offering trend-right merchandise at a differentiated price point of $ 5 and below , our stores have been successful in varying geographic regions , population densities and real estate settings . as of february 2 , 2019 , we operated stores in 33 states in the northeast , south , midwest and west regions of the united states . we are primarily located in power , community and lifestyle shopping centers across a variety of urban , suburban and semi-rural markets with trade areas including at least 100,000 people in the specified market . we believe we have the opportunity to expand our store base in the united states from 750 locations as of february 2 , 2019 to more than 2,500 locations over time . our ability to open profitable new stores depends on many factors , including our ability to identify suitable markets and sites ; negotiate leases with acceptable terms ; achieve brand awareness in the new markets ; efficiently source and distribute additional merchandise ; and achieve sufficient levels of cash flow and financing to support our expansion . 36 for the fiscal year ended february 3 , 2018 , we recorded a provisional net tax benefit of $ 0.5 million related to the impact of the tcja . this provisional tax benefit included a one-time $ 1.5 million remeasurement charge of the net u.s. deferred tax assets to the lower enacted u.s. corporate tax rate of 21 % and a $ 2.0 million tax benefit related to the company 's 2017 blended rate of 33.7 % as a result of section 15 of the internal revenue code . december 22 , 2018 marked the end of the measurement period for purposes of securities and exchange commission staff accounting bulletin no . 118 ( `` sab 118 `` ) . as such , the company has completed the analysis based on legislative updates relating to the u.s. tcja currently available and recorded no additional tax impacts for the year ended february 2 , 2019 . while we have completed our accounting of the income tax effects of the u.s. tcja under sab 118 , the related tax impacts may differ , possibly materially , due to changes in interpretations and assumptions that we have made , additional guidance that may be issued by regulatory bodies , and actions and related accounting policy decisions we may take as a result of the new legislation . we have a proven and highly profitable store model that has produced consistent financial results and returns and our new stores have achieved average payback periods of less than one year . our new store model assumes a store size of approximately 8,500 square feet that achieves annual sales of approximately $ 1.8 million in the first full year of operation . our new store model also assumes an average new store investment of approximately $ 0.3 million . our new store investment includes our store build-out ( net of tenant allowances ) , inventory ( net of payables ) and cash pre-opening expenses . our planned store expansion will place increased demands on our operational , managerial , administrative and other resources . managing our growth effectively will require us to continue to maintain adequate distribution capacity , enhance our store management systems , financial and management controls , information systems and other operational system capabilities . in addition , we will be required to hire , train and retain store management and other qualified personnel . for further information , see part i , item 1a “ risk factors-risk relating to our business and industry . ” over the past five years we have invested a significant amount of capital in infrastructure and systems necessary to support our future growth and we expect to incur additional capital expenditures related to expansion of our infrastructure and systems in future periods . in fiscal 2015 , we invested in a new erp and began the multi-year implementation of the erp , which is designed to enhance functionality and provide timely information to the company 's management team related to the operation of the business . in june 2015 , we opened a new distribution center in pedricktown , new jersey to support our anticipated growth . we occupy approximately 1,000,000 square feet at this distribution center , having expanded from 800,000 square feet in september 2018. in september 2016 , we signed a 15-year lease for a new corporate headquarters location in philadelphia , pennsylvania to accommodate our current and anticipated future growth . we currently occupy approximately 117,000 square feet of office space and will expand into approximately 50,000 square feet of additional office space by no later than 2020. in march 2019 , we completed the purchase of an approximately 700,000 square foot build-to-suit distribution center in forsyth , georgia for approximately $ 42 million , for the land and building , to support our anticipated growth . we are planning to lease or build new distribution centers over the next few years to support our growth objectives . we continuously assess ways to maximize the productivity and efficiency of our existing facilities , infrastructure and systems . the timing and amount of investments in our facilities , infrastructure and systems could affect the comparability of our results of operations in future periods . the completion date and ultimate cost of future projects could differ significantly from initial expectations due to construction-related or other reasons . we believe our business strategy will continue to offer significant opportunity , but it also presents risks and challenges . these risks and challenges include , but are not limited to , that we may not be able to effectively identify and respond to changing trends and customer preferences , that we may not be able to find desirable locations for new stores and that we may not be able to effectively manage our future growth . story_separator_special_tag income tax expense income tax expense increased to $ 56.4 million in fiscal year 2017 from $ 42.4 million in fiscal year 2016 , an increase of $ 14.0 million , or approximately 33.0 % . this increase in income tax expense was primarily the result of a $ 44.6 million increase in pre-tax net income . our effective tax rate for fiscal year 2017 was 35.5 % compared to 37.1 % in fiscal year 2016. the decrease in our effective tax rate was primarily driven by discrete items , which include the impact of the adoption of fasb asu 2016-09 , `` improvements to employee share-based payment accounting , `` with respect to the requirement to recognize excess income tax benefits or deficiencies as income tax benefit or expense in the consolidated statements of operations rather than as additional paid-in capital in the consolidated balance sheets , and the impact of tax reform as a result of the tcja . the tcja includes a number of changes to existing u.s. tax laws that impact us , most notably a reduction of the u.s. corporate tax rate from 35 % to 21 % , for tax years beginning after december 31 , 2017. we recorded an additional expense of $ 1.5 million in deferred income tax expense for the remeasurement of our net deferred tax asset at the 21 % tax rate . additionally , and in accordance with section 15 of the internal revenue code , we utilized a blended rate of 33.7 % for our fiscal 2017 tax year , by applying a prorated percentage of the number of days prior to and subsequent to the january 1 , 2018 effective date as compared with the 35 % for the 2016 tax year . the effect of this blended rate change is a benefit of $ 2.0 million . the tcja also provides for acceleration of depreciation for certain assets placed into service after september 27 , 2017 , as well as prospective changes beginning in 2018 , including additional limitations on deductibility of executive compensation and employee meal benefits . as a result of the tcja , we expect that the effective tax rate in fiscal 2018 will be approximately 24.5 % . the net $ 0.5 million benefit represents what we believe is the impact of the tcja in the current year . as the benefit is based on currently available information and interpretations , which are continuing to evolve , the benefit should be considered provisional . we will continue to analyze additional information and guidance related to the tcja as supplemental legislation , regulatory guidance , or evolving technical interpretations become available . the final impacts may differ from the recorded amounts as of february 3 , 2018 , and we will continue to refine such amounts within the measurement period provided by sab 118 . 42 net income as a result of the foregoing , net income increased to $ 102.5 million in fiscal year 2017 from $ 71.8 million in fiscal year 2016 , an increase of approximately $ 30.7 million , or 42.6 % . impact of inflation our results of operations and financial condition are presented based on historical cost . while it is difficult to accurately measure the impact of inflation due to the imprecise nature of the estimates required , we believe the effects of inflation , if any , on our historical results of operations and financial condition have been immaterial . we can not assure you , however , that our results of operations and financial condition will not be materially impacted by inflation in the future . seasonality our business is seasonal in nature with the highest level of net sales and net income generated in the fourth fiscal quarter due to the year-end holiday season and , therefore , operating results for any fiscal quarter are not necessarily indicative of results for the full fiscal year . to prepare for the holiday season , we must order and keep in stock more merchandise than we carry during other parts of the year . we expect inventory levels , along with an increase in accounts payable and accrued expenses , generally to reach their highest levels in the third and fourth fiscal quarters in anticipation of the increased net sales during the year-end holiday season . as a result of this seasonality , and generally because of variation in consumer spending habits , we experience fluctuations in net sales , net income and working capital requirements during the year . liquidity and capital resources overview our primary source of liquidity is cash flows from operations . our primary cash needs are for capital expenditures and working capital . capital expenditures typically vary depending on the timing of new store openings and infrastructure-related investments . we plan to make capital expenditures of approximately $ 170 million in fiscal 2019 , which exclude the impact of tenant allowances , and which we expect to fund from cash generated from operations . we expect to incur approximately $ 50 million of our capital expenditure budget in fiscal 2019 to construct and open approximately 145 to 150 new stores , with the remainder projected to be spent on our distribution facilities including the new distribution center in georgia , store relocations and remodels , and our corporate infrastructure . our primary working capital requirements are for the purchase of store inventory and payment of payroll , rent , other store operating costs and distribution costs . our working capital requirements fluctuate during the year , rising in the third and fourth fiscal quarters as we take title to increasing quantities of inventory in anticipation of our peak , year-end holiday shopping season in the fourth fiscal quarter . fluctuations in working capital are also driven by the timing of new store openings . historically , we have funded our capital expenditures and working capital requirements during the fiscal year

cash flows a summary of our cash flows from operating , investing and financing activities is presented in the following table ( in millions ) : replace_table_token_9_th ( 1 ) components may not add to total due to rounding . cash provided by operating activities net cash provided by operating activities for fiscal 2018 was $ 184.1 million , an increase of $ 16.7 million compared to fiscal 2017 . the increase was primarily due to an increase in operating cash flows from store performance and a decrease in income taxes paid partially offset by changes in working capital . during fiscal 2018 , we added 125 net new stores and expect to add approximately 145 to 150 new stores in fiscal 2019 . net cash provided by operating activities for fiscal 2017 was $ 167.4 million , an increase of $ 60.8 million compared to fiscal 2016 . the increase was primarily due to an increase in operating cash flows from store performance partially offset by an increase in income taxes paid . during fiscal 2017 , we added 103 net new stores . cash used in investing activities net cash used in investing activities for fiscal 2018 was $ 39.5 million , a decrease of $ 99.7 million compared to fiscal 2017 . the decrease was primarily due to an increase in net sales , maturities , and redemptions of investment securities partially offset by an increase in capital expenditures . the increase in capital expenditures was primarily for our distribution facilities , our new store construction , and our corporate infrastructure . net cash used in investing activities for fiscal 2017 was $ 139.2 million , an increase of $ 52.4 million compared to fiscal 2016 . the increase was primarily due to increases in net purchases of investment securities and capital expenditures . the increase in capital expenditures was primarily for our new store construction , our corporate infrastructure , and our distribution facilities . cash ( used in ) provided by financing activities net cash used in financing activities for fiscal year 2018 was $ 5.6 million , an increase of $ 14.0 million compared to fiscal 2017 .


 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 a summary of our cash flows from operating , investing and financing activities is presented in the following table ( in millions ) : replace_table_token_9_th ( 1 ) components may not add to total due to rounding . cash provided by operating activities net cash provided by operating activities for fiscal 2018 was $ 184.1 million , an increase of $ 16.7 million compared to fiscal 2017 . the increase was primarily due to an increase in operating cash flows from store performance and a decrease in income taxes paid partially offset by changes in working capital . during fiscal 2018 , we added 125 net new stores and expect to add approximately 145 to 150 new stores in fiscal 2019 . net cash provided by operating activities for fiscal 2017 was $ 167.4 million , an increase of $ 60.8 million compared to fiscal 2016 . the increase was primarily due to an increase in operating cash flows from store performance partially offset by an increase in income taxes paid . during fiscal 2017 , we added 103 net new stores . cash used in investing activities net cash used in investing activities for fiscal 2018 was $ 39.5 million , a decrease of $ 99.7 million compared to fiscal 2017 . the decrease was primarily due to an increase in net sales , maturities , and redemptions of investment securities partially offset by an increase in capital expenditures . the increase in capital expenditures was primarily for our distribution facilities , our new store construction , and our corporate infrastructure . net cash used in investing activities for fiscal 2017 was $ 139.2 million , an increase of $ 52.4 million compared to fiscal 2016 . the increase was primarily due to increases in net purchases of investment securities and capital expenditures . the increase in capital expenditures was primarily for our new store construction , our corporate infrastructure , and our distribution facilities . cash ( used in ) provided by financing activities net cash used in financing activities for fiscal year 2018 was $ 5.6 million , an increase of $ 14.0 million compared to fiscal 2017 .
```    
 Suspicious Activity Report : by offering trend-right merchandise at a differentiated price point of $ 5 and below , our stores have been successful in varying geographic regions , population densities and real estate settings . as of february 2 , 2019 , we operated stores in 33 states in the northeast , south , midwest and west regions of the united states . we are primarily located in power , community and lifestyle shopping centers across a variety of urban , suburban and semi-rural markets with trade areas including at least 100,000 people in the specified market . we believe we have the opportunity to expand our store base in the united states from 750 locations as of february 2 , 2019 to more than 2,500 locations over time . our ability to open profitable new stores depends on many factors , including our ability to identify suitable markets and sites ; negotiate leases with acceptable terms ; achieve brand awareness in the new markets ; efficiently source and distribute additional merchandise ; and achieve sufficient levels of cash flow and financing to support our expansion . 36 for the fiscal year ended february 3 , 2018 , we recorded a provisional net tax benefit of $ 0.5 million related to the impact of the tcja . this provisional tax benefit included a one-time $ 1.5 million remeasurement charge of the net u.s. deferred tax assets to the lower enacted u.s. corporate tax rate of 21 % and a $ 2.0 million tax benefit related to the company 's 2017 blended rate of 33.7 % as a result of section 15 of the internal revenue code . december 22 , 2018 marked the end of the measurement period for purposes of securities and exchange commission staff accounting bulletin no . 118 ( `` sab 118 `` ) . as such , the company has completed the analysis based on legislative updates relating to the u.s. tcja currently available and recorded no additional tax impacts for the year ended february 2 , 2019 . while we have completed our accounting of the income tax effects of the u.s. tcja under sab 118 , the related tax impacts may differ , possibly materially , due to changes in interpretations and assumptions that we have made , additional guidance that may be issued by regulatory bodies , and actions and related accounting policy decisions we may take as a result of the new legislation . we have a proven and highly profitable store model that has produced consistent financial results and returns and our new stores have achieved average payback periods of less than one year . our new store model assumes a store size of approximately 8,500 square feet that achieves annual sales of approximately $ 1.8 million in the first full year of operation . our new store model also assumes an average new store investment of approximately $ 0.3 million . our new store investment includes our store build-out ( net of tenant allowances ) , inventory ( net of payables ) and cash pre-opening expenses . our planned store expansion will place increased demands on our operational , managerial , administrative and other resources . managing our growth effectively will require us to continue to maintain adequate distribution capacity , enhance our store management systems , financial and management controls , information systems and other operational system capabilities . in addition , we will be required to hire , train and retain store management and other qualified personnel . for further information , see part i , item 1a “ risk factors-risk relating to our business and industry . ” over the past five years we have invested a significant amount of capital in infrastructure and systems necessary to support our future growth and we expect to incur additional capital expenditures related to expansion of our infrastructure and systems in future periods . in fiscal 2015 , we invested in a new erp and began the multi-year implementation of the erp , which is designed to enhance functionality and provide timely information to the company 's management team related to the operation of the business . in june 2015 , we opened a new distribution center in pedricktown , new jersey to support our anticipated growth . we occupy approximately 1,000,000 square feet at this distribution center , having expanded from 800,000 square feet in september 2018. in september 2016 , we signed a 15-year lease for a new corporate headquarters location in philadelphia , pennsylvania to accommodate our current and anticipated future growth . we currently occupy approximately 117,000 square feet of office space and will expand into approximately 50,000 square feet of additional office space by no later than 2020. in march 2019 , we completed the purchase of an approximately 700,000 square foot build-to-suit distribution center in forsyth , georgia for approximately $ 42 million , for the land and building , to support our anticipated growth . we are planning to lease or build new distribution centers over the next few years to support our growth objectives . we continuously assess ways to maximize the productivity and efficiency of our existing facilities , infrastructure and systems . the timing and amount of investments in our facilities , infrastructure and systems could affect the comparability of our results of operations in future periods . the completion date and ultimate cost of future projects could differ significantly from initial expectations due to construction-related or other reasons . we believe our business strategy will continue to offer significant opportunity , but it also presents risks and challenges . these risks and challenges include , but are not limited to , that we may not be able to effectively identify and respond to changing trends and customer preferences , that we may not be able to find desirable locations for new stores and that we may not be able to effectively manage our future growth . story_separator_special_tag income tax expense income tax expense increased to $ 56.4 million in fiscal year 2017 from $ 42.4 million in fiscal year 2016 , an increase of $ 14.0 million , or approximately 33.0 % . this increase in income tax expense was primarily the result of a $ 44.6 million increase in pre-tax net income . our effective tax rate for fiscal year 2017 was 35.5 % compared to 37.1 % in fiscal year 2016. the decrease in our effective tax rate was primarily driven by discrete items , which include the impact of the adoption of fasb asu 2016-09 , `` improvements to employee share-based payment accounting , `` with respect to the requirement to recognize excess income tax benefits or deficiencies as income tax benefit or expense in the consolidated statements of operations rather than as additional paid-in capital in the consolidated balance sheets , and the impact of tax reform as a result of the tcja . the tcja includes a number of changes to existing u.s. tax laws that impact us , most notably a reduction of the u.s. corporate tax rate from 35 % to 21 % , for tax years beginning after december 31 , 2017. we recorded an additional expense of $ 1.5 million in deferred income tax expense for the remeasurement of our net deferred tax asset at the 21 % tax rate . additionally , and in accordance with section 15 of the internal revenue code , we utilized a blended rate of 33.7 % for our fiscal 2017 tax year , by applying a prorated percentage of the number of days prior to and subsequent to the january 1 , 2018 effective date as compared with the 35 % for the 2016 tax year . the effect of this blended rate change is a benefit of $ 2.0 million . the tcja also provides for acceleration of depreciation for certain assets placed into service after september 27 , 2017 , as well as prospective changes beginning in 2018 , including additional limitations on deductibility of executive compensation and employee meal benefits . as a result of the tcja , we expect that the effective tax rate in fiscal 2018 will be approximately 24.5 % . the net $ 0.5 million benefit represents what we believe is the impact of the tcja in the current year . as the benefit is based on currently available information and interpretations , which are continuing to evolve , the benefit should be considered provisional . we will continue to analyze additional information and guidance related to the tcja as supplemental legislation , regulatory guidance , or evolving technical interpretations become available . the final impacts may differ from the recorded amounts as of february 3 , 2018 , and we will continue to refine such amounts within the measurement period provided by sab 118 . 42 net income as a result of the foregoing , net income increased to $ 102.5 million in fiscal year 2017 from $ 71.8 million in fiscal year 2016 , an increase of approximately $ 30.7 million , or 42.6 % . impact of inflation our results of operations and financial condition are presented based on historical cost . while it is difficult to accurately measure the impact of inflation due to the imprecise nature of the estimates required , we believe the effects of inflation , if any , on our historical results of operations and financial condition have been immaterial . we can not assure you , however , that our results of operations and financial condition will not be materially impacted by inflation in the future . seasonality our business is seasonal in nature with the highest level of net sales and net income generated in the fourth fiscal quarter due to the year-end holiday season and , therefore , operating results for any fiscal quarter are not necessarily indicative of results for the full fiscal year . to prepare for the holiday season , we must order and keep in stock more merchandise than we carry during other parts of the year . we expect inventory levels , along with an increase in accounts payable and accrued expenses , generally to reach their highest levels in the third and fourth fiscal quarters in anticipation of the increased net sales during the year-end holiday season . as a result of this seasonality , and generally because of variation in consumer spending habits , we experience fluctuations in net sales , net income and working capital requirements during the year . liquidity and capital resources overview our primary source of liquidity is cash flows from operations . our primary cash needs are for capital expenditures and working capital . capital expenditures typically vary depending on the timing of new store openings and infrastructure-related investments . we plan to make capital expenditures of approximately $ 170 million in fiscal 2019 , which exclude the impact of tenant allowances , and which we expect to fund from cash generated from operations . we expect to incur approximately $ 50 million of our capital expenditure budget in fiscal 2019 to construct and open approximately 145 to 150 new stores , with the remainder projected to be spent on our distribution facilities including the new distribution center in georgia , store relocations and remodels , and our corporate infrastructure . our primary working capital requirements are for the purchase of store inventory and payment of payroll , rent , other store operating costs and distribution costs . our working capital requirements fluctuate during the year , rising in the third and fourth fiscal quarters as we take title to increasing quantities of inventory in anticipation of our peak , year-end holiday shopping season in the fourth fiscal quarter . fluctuations in working capital are also driven by the timing of new store openings . historically , we have funded our capital expenditures and working capital requirements during the fiscal year

