in addition to the impact of the overall reported declines in north american mall traffic in december , we believe the decrease is primarily attributable to : ● changes in media and marketing tactics , shifts in licensed product sales and the execution of unplanned promotional activities ; ● a decrease in gift card redemptions ; and ● missed e-commerce sales in the fourth quarter due to the inability of our e-commerce systems to manage the increased traffic to our site . additionally , we believe the strong performance of last year 's minion 's collection contributed to the comparable sales decline in the second and third quarters of 2016. these declines were partially offset by the positive consolidated comparable sales performance in north america in the first quarter of 2016 which we believe was the result of our overall disciplined management of our business and the initial success of key initiatives of our strategic plan . comparable sales percentage changes for 2015 are based on net retail sales as compared to the 52-week period ended january 3 , 2015. we believe the increase in comparable sales for the year is primarily attributable to the balanced product assortment that simultaneously and consistently focused on our four key consumer segments supported by elevated marketing programs . we believe this drove improvements in key metrics including dollars and units per transaction across geographies that were able to offset a decrease in transactions due to a challenging retail environment in north america and the success of certain licensed product in the fourth quarter of fiscal 2014. commercial revenue : commercial revenue includes the company 's transactions with other businesses , mainly through wholesale and licensing transactions . revenue from wholesale product sales includes revenue from sales of merchandise to third parties that operate stores under licensing agreements . in addition , we have historically entered into a number of outbound licensing arrangements whereby third parties manufacture merchandise carrying the build-a-bear trademark and sell it to other retailers . revenue from outbound licensing activities is generally based on a percentage of sales made by licensees to third parties and is recognized at the time of sale by the licensee . franchise fees : typically , we receive an initial , one-time franchise fee for each master franchise agreement which is amortized to revenue over the initial term of the respective franchise agreement , which may extend for periods up to 25 years and include a renewal option if certain conditions are met . master franchise rights are typically granted to a franchisee for an entire country or countries . continuing franchise fees are based on a percentage of sales made by the franchisees ' stores and are recognized as revenue at the time of those sales . costs and expenses cost of merchandise sold - retail and retail gross margin : cost of merchandise sold – retail includes the cost of the merchandise , including royalties paid to licensors of third party branded merchandise ; store occupancy cost , including store depreciation and store asset impairment charges ; cost of warehousing and distribution ; packaging ; stuffing ; damages and shortages ; and shipping and handling costs incurred in shipment to customers . retail gross margin is defined as net retail sales less the cost of merchandise sold - retail . 20 selling , general and administrative expense : these expenses include store payroll and benefits , advertising , credit card fees , store supplies and normal store closings as well as central office general and administrative expenses , including costs for management payroll , benefits , stock-based compensation , travel , information systems , accounting , insurance , legal and public relations . these expenses also include depreciation of central office assets as well as the amortization of intellectual property and other assets . certain store expenses such as store payroll and credit card fees historically have increased or decreased proportionately with net retail sales . preopening : these expenses include costs incurred prior to store openings , remodels and relocations including certain store set-up , labor and hiring costs , rental charges , payroll , marketing , travel and relocation costs . they are expensed as incurred . s tores company-owned stores : the number of build-a-bear workshop stores in the uni ted states , canada , puerto rico ( collectively , north america ) , the united kingdom , ireland and denmark ( collectively , europe ) and china for the last three fiscal years are summarized as follows : replace_table_token_5_th during 2017 , we expect to continue to make improvements to an aged store fleet by leveraging the new discovery format in conjunction with select natural lease events . we also expect to close certain stores in accordance with natural lease events as an ongoing part of our real estate management and day-to-day operational plans . current plans include expansion into more non-traditional locations , made possible by a new , lower capital , more flexible “ concourse shop ” model . concourse shops are stand-alone shops with approximately 200 square feet designed to be operated in open , concourse areas of malls or other covered pedestrian areas . we currently expect to add 20 to 25 new locations , with approximately 15 being concourse shops , in fiscal 2017 and close 5 to 10 existing locations to finish 2017 with 356 to 366 company-owned retail locations . w e also operate in a number of other non-traditional locations , such as a ballpark , a zoo and science center . additionally , we operate shop-in-shop locations within other retailers ' stores . in 2016 , we had three permanent shop-in-shop locations and seven seasonal locations open only in the fourth quarter . story_separator_special_tag accordingly , management determined it was more likely than not that all of the u.s. deferred tax assets would be realized . for 2014 , the rate was impacted by the full valuation allowance in the u.s. as well as tax expense recorded for state and withholding taxes , adjustments to tax position reserves , and tax expense recorded in foreign jurisdictions . non-gaap financial measures we use the term “ store contribution ” throughout this annual report on form 10-k. store contribution consists of income before income tax expense , interest , general and administrative expense , excluding income from franchise and commercial activities and contribution from our e-commerce sites , locations not open for the full fiscal year and adjustments to deferred revenue related to our loyalty program and gift card breakage . this term , as we define it , may not be comparable to similarly titled measures used by other companies and is not a measure of performance presented in accordance with u.s. generally accepted accounting principles ( gaap ) . we use store contribution as a measure of our stores ' operating performance . store contribution should not be considered a substitute for net income , net income per store , cash flows provided by operating activities , cash flows provided by operating activities per store , or other income or cash flow data prepared in accordance with u.s. gaap . we believe store contribution is useful to investors in evaluating our operating performance because it , along with the number of stores in operation , directly impacts our profitability . 25 the following table sets forth a reconciliation of store contribution to net income for our company-owned stores located in the united states , canada and puerto rico ( north america ) , stores located in the united kingdom , ireland and denmark ( europe ) and , beginning in 2016 , china , for our consolidated store base ( dollars in thousands ) . fiscal 2016 and 2015 include 52 weeks ; fiscal 2014 includes 53 weeks . replace_table_token_11_th replace_table_token_12_th ( 1 ) general and administrative expenses consist of non-store , central office general and administrative functions such as management payroll and related benefits , travel , information systems , accounting , purchasing and legal costs , depreciation of central office assets as well as the amortization of intellectual property and other assets , store closing and pre-opening expenses . certain intercompany charges are included in general and administrative expenses in europe . general and administrative expenses also include a central office marketing department , primarily payroll and related benefits expense , but exclude advertising expenses , which are included in store contribution . 26 ( 2 ) other retail activities are comprised primarily of our e-commerce sites , stores not open for the full year and adjustments to deferred revenue related to our loyalty program and gift card breakage . ( 3 ) other contribution includes franchising , commercial revenues and intercompany revenues and all expenses attributable to the international franchising and commercial segments , excluding interest expense/income and income tax expense/benefit . interest expense/income and income tax expense/benefit related to franchising and commercial activities are included in their respective captions . ( 4 ) other revenues from external customers are comprised of international franchising and commercial revenues . seasonality and quarterly results the following is a summary of certain unaudited quarterly results of operations data for each of the last two fiscal years . replace_table_token_13_th ( 1 ) retail g ross margin represents net retail sales less cost of retail merchandise sold . our operating results for one period may not be indicative of results for other periods , and may fluctuate significantly because of a variety of factors , including , but not limited to : ( 1 ) fluctuations in the profitability of our stores ; ( 2 ) increases or decreases in comparable sales and total revenues ; ( 3 ) changes in general economic conditions and consumer spending patterns ; ( 4 ) the timing and frequency of our marketing initiatives including national media appearances and other public relations events ; ( 5 ) changes in foreign currency exchange rates ; ( 6 ) seasonal shopping patterns and holiday and vacation schedules ; ( 7 ) the timing of store closures , relocations and openings and related expenses ; ( 8 ) the effectiveness of our inventory management ; ( 9 ) changes in consumer preferences ; ( 10 ) the continued introduction and expansion of merchandise offerings ; ( 11 ) actions of competitors or mall anchors and co-tenants ; ( 12 ) weather conditions ; and ( 13 ) the impact of a 53rd week in our fiscal year , which occurs approximately every six years . the timing of store openings , closures and remodels may cause fluctuations in quarterly results due to the changes in revenues and expenses associated with each store location . we typically incur most preopening costs for a new store , remodeled or relocated store in the three months immediately preceding the store 's opening . expenses related to store closings are typically incurred in stages : when the decision is made to close the store , when the closure is communicated to store associates and at the time of closure . as a specialty retailer , our sales are highest in our fourth quarter , followed by the first quarter . the timing of holidays and school vacations can impact our quarterly results . we can not ensure that this will continue to be the case . in addition , for accounting purposes , the quarters of each fiscal year consist of 13 weeks , although we will have a 14-week quarter approximately once every six years . the 2014 fiscal fourth quarter had 14 weeks . liquidity and capital resources our cash requirements are primarily for the opening of new stores , installation and upgrades of information

capital resources . as of december 31 , 2016 , we had a cash balance of $ 32.5 million , less than half of which was domiciled outside of the united states . we also have a line of credit , which we can use to finance capital expenditures and working capital needs throughout the year . the bank line provides availability of up to $ 35 million . borrowings under the credit agreement are secured by our assets and a pledge of 65 % of our ownership interest in certain of our foreign subsidiaries . the credit agreement expires on december 31 , 2017 and contains various restrictions on indebtedness , liens , guarantees , redemptions , mergers , acquisitions or sale of assets , loans , transactions with affiliates and investments . it also prohibits us from declaring dividends without the bank 's prior consent , unless such payment of dividends would not violate any terms of the credit agreement . we are also prohibited from repurchasing shares of our common stock unless such repurchase of shares would not violate any terms of the credit agreement ; we may not use the proceeds of the line of credit to repurchase shares . borrowings bear interest at libor plus 1.8 % . financial covenants include maintaining a minimum tangible net worth , maintaining a minimum fixed charge coverage ratio ( as defined in the credit agreement ) and not exceeding a maximum funded debt to earnings before interest , depreciation and amortization ratio . in 2016 , we exceeded the maximum lease payments for personal property of $ 100,000 permitted in the financial covenants , resulting in non-compliance . we have subsequently obtained a waiver of the personal property lease payments covenant for 2016. as of december 31 , 2016 : ( i ) we were in compliance with all remaining covenants ; ( ii ) there were no borrowings under the line of credit ; and ( iii ) there was $ 35.0 million available for borrowing under the line of credit . most of our retail stores are located within shopping malls and all are operated under leases classified as operating leases .


 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 . as of december 31 , 2016 , we had a cash balance of $ 32.5 million , less than half of which was domiciled outside of the united states . we also have a line of credit , which we can use to finance capital expenditures and working capital needs throughout the year . the bank line provides availability of up to $ 35 million . borrowings under the credit agreement are secured by our assets and a pledge of 65 % of our ownership interest in certain of our foreign subsidiaries . the credit agreement expires on december 31 , 2017 and contains various restrictions on indebtedness , liens , guarantees , redemptions , mergers , acquisitions or sale of assets , loans , transactions with affiliates and investments . it also prohibits us from declaring dividends without the bank 's prior consent , unless such payment of dividends would not violate any terms of the credit agreement . we are also prohibited from repurchasing shares of our common stock unless such repurchase of shares would not violate any terms of the credit agreement ; we may not use the proceeds of the line of credit to repurchase shares . borrowings bear interest at libor plus 1.8 % . financial covenants include maintaining a minimum tangible net worth , maintaining a minimum fixed charge coverage ratio ( as defined in the credit agreement ) and not exceeding a maximum funded debt to earnings before interest , depreciation and amortization ratio . in 2016 , we exceeded the maximum lease payments for personal property of $ 100,000 permitted in the financial covenants , resulting in non-compliance . we have subsequently obtained a waiver of the personal property lease payments covenant for 2016. as of december 31 , 2016 : ( i ) we were in compliance with all remaining covenants ; ( ii ) there were no borrowings under the line of credit ; and ( iii ) there was $ 35.0 million available for borrowing under the line of credit . most of our retail stores are located within shopping malls and all are operated under leases classified as operating leases .
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 Suspicious Activity Report : in addition to the impact of the overall reported declines in north american mall traffic in december , we believe the decrease is primarily attributable to : ● changes in media and marketing tactics , shifts in licensed product sales and the execution of unplanned promotional activities ; ● a decrease in gift card redemptions ; and ● missed e-commerce sales in the fourth quarter due to the inability of our e-commerce systems to manage the increased traffic to our site . additionally , we believe the strong performance of last year 's minion 's collection contributed to the comparable sales decline in the second and third quarters of 2016. these declines were partially offset by the positive consolidated comparable sales performance in north america in the first quarter of 2016 which we believe was the result of our overall disciplined management of our business and the initial success of key initiatives of our strategic plan . comparable sales percentage changes for 2015 are based on net retail sales as compared to the 52-week period ended january 3 , 2015. we believe the increase in comparable sales for the year is primarily attributable to the balanced product assortment that simultaneously and consistently focused on our four key consumer segments supported by elevated marketing programs . we believe this drove improvements in key metrics including dollars and units per transaction across geographies that were able to offset a decrease in transactions due to a challenging retail environment in north america and the success of certain licensed product in the fourth quarter of fiscal 2014. commercial revenue : commercial revenue includes the company 's transactions with other businesses , mainly through wholesale and licensing transactions . revenue from wholesale product sales includes revenue from sales of merchandise to third parties that operate stores under licensing agreements . in addition , we have historically entered into a number of outbound licensing arrangements whereby third parties manufacture merchandise carrying the build-a-bear trademark and sell it to other retailers . revenue from outbound licensing activities is generally based on a percentage of sales made by licensees to third parties and is recognized at the time of sale by the licensee . franchise fees : typically , we receive an initial , one-time franchise fee for each master franchise agreement which is amortized to revenue over the initial term of the respective franchise agreement , which may extend for periods up to 25 years and include a renewal option if certain conditions are met . master franchise rights are typically granted to a franchisee for an entire country or countries . continuing franchise fees are based on a percentage of sales made by the franchisees ' stores and are recognized as revenue at the time of those sales . costs and expenses cost of merchandise sold - retail and retail gross margin : cost of merchandise sold – retail includes the cost of the merchandise , including royalties paid to licensors of third party branded merchandise ; store occupancy cost , including store depreciation and store asset impairment charges ; cost of warehousing and distribution ; packaging ; stuffing ; damages and shortages ; and shipping and handling costs incurred in shipment to customers . retail gross margin is defined as net retail sales less the cost of merchandise sold - retail . 20 selling , general and administrative expense : these expenses include store payroll and benefits , advertising , credit card fees , store supplies and normal store closings as well as central office general and administrative expenses , including costs for management payroll , benefits , stock-based compensation , travel , information systems , accounting , insurance , legal and public relations . these expenses also include depreciation of central office assets as well as the amortization of intellectual property and other assets . certain store expenses such as store payroll and credit card fees historically have increased or decreased proportionately with net retail sales . preopening : these expenses include costs incurred prior to store openings , remodels and relocations including certain store set-up , labor and hiring costs , rental charges , payroll , marketing , travel and relocation costs . they are expensed as incurred . s tores company-owned stores : the number of build-a-bear workshop stores in the uni ted states , canada , puerto rico ( collectively , north america ) , the united kingdom , ireland and denmark ( collectively , europe ) and china for the last three fiscal years are summarized as follows : replace_table_token_5_th during 2017 , we expect to continue to make improvements to an aged store fleet by leveraging the new discovery format in conjunction with select natural lease events . we also expect to close certain stores in accordance with natural lease events as an ongoing part of our real estate management and day-to-day operational plans . current plans include expansion into more non-traditional locations , made possible by a new , lower capital , more flexible “ concourse shop ” model . concourse shops are stand-alone shops with approximately 200 square feet designed to be operated in open , concourse areas of malls or other covered pedestrian areas . we currently expect to add 20 to 25 new locations , with approximately 15 being concourse shops , in fiscal 2017 and close 5 to 10 existing locations to finish 2017 with 356 to 366 company-owned retail locations . w e also operate in a number of other non-traditional locations , such as a ballpark , a zoo and science center . additionally , we operate shop-in-shop locations within other retailers ' stores . in 2016 , we had three permanent shop-in-shop locations and seven seasonal locations open only in the fourth quarter . story_separator_special_tag accordingly , management determined it was more likely than not that all of the u.s. deferred tax assets would be realized . for 2014 , the rate was impacted by the full valuation allowance in the u.s. as well as tax expense recorded for state and withholding taxes , adjustments to tax position reserves , and tax expense recorded in foreign jurisdictions . non-gaap financial measures we use the term “ store contribution ” throughout this annual report on form 10-k. store contribution consists of income before income tax expense , interest , general and administrative expense , excluding income from franchise and commercial activities and contribution from our e-commerce sites , locations not open for the full fiscal year and adjustments to deferred revenue related to our loyalty program and gift card breakage . this term , as we define it , may not be comparable to similarly titled measures used by other companies and is not a measure of performance presented in accordance with u.s. generally accepted accounting principles ( gaap ) . we use store contribution as a measure of our stores ' operating performance . store contribution should not be considered a substitute for net income , net income per store , cash flows provided by operating activities , cash flows provided by operating activities per store , or other income or cash flow data prepared in accordance with u.s. gaap . we believe store contribution is useful to investors in evaluating our operating performance because it , along with the number of stores in operation , directly impacts our profitability . 25 the following table sets forth a reconciliation of store contribution to net income for our company-owned stores located in the united states , canada and puerto rico ( north america ) , stores located in the united kingdom , ireland and denmark ( europe ) and , beginning in 2016 , china , for our consolidated store base ( dollars in thousands ) . fiscal 2016 and 2015 include 52 weeks ; fiscal 2014 includes 53 weeks . replace_table_token_11_th replace_table_token_12_th ( 1 ) general and administrative expenses consist of non-store , central office general and administrative functions such as management payroll and related benefits , travel , information systems , accounting , purchasing and legal costs , depreciation of central office assets as well as the amortization of intellectual property and other assets , store closing and pre-opening expenses . certain intercompany charges are included in general and administrative expenses in europe . general and administrative expenses also include a central office marketing department , primarily payroll and related benefits expense , but exclude advertising expenses , which are included in store contribution . 26 ( 2 ) other retail activities are comprised primarily of our e-commerce sites , stores not open for the full year and adjustments to deferred revenue related to our loyalty program and gift card breakage . ( 3 ) other contribution includes franchising , commercial revenues and intercompany revenues and all expenses attributable to the international franchising and commercial segments , excluding interest expense/income and income tax expense/benefit . interest expense/income and income tax expense/benefit related to franchising and commercial activities are included in their respective captions . ( 4 ) other revenues from external customers are comprised of international franchising and commercial revenues . seasonality and quarterly results the following is a summary of certain unaudited quarterly results of operations data for each of the last two fiscal years . replace_table_token_13_th ( 1 ) retail g ross margin represents net retail sales less cost of retail merchandise sold . our operating results for one period may not be indicative of results for other periods , and may fluctuate significantly because of a variety of factors , including , but not limited to : ( 1 ) fluctuations in the profitability of our stores ; ( 2 ) increases or decreases in comparable sales and total revenues ; ( 3 ) changes in general economic conditions and consumer spending patterns ; ( 4 ) the timing and frequency of our marketing initiatives including national media appearances and other public relations events ; ( 5 ) changes in foreign currency exchange rates ; ( 6 ) seasonal shopping patterns and holiday and vacation schedules ; ( 7 ) the timing of store closures , relocations and openings and related expenses ; ( 8 ) the effectiveness of our inventory management ; ( 9 ) changes in consumer preferences ; ( 10 ) the continued introduction and expansion of merchandise offerings ; ( 11 ) actions of competitors or mall anchors and co-tenants ; ( 12 ) weather conditions ; and ( 13 ) the impact of a 53rd week in our fiscal year , which occurs approximately every six years . the timing of store openings , closures and remodels may cause fluctuations in quarterly results due to the changes in revenues and expenses associated with each store location . we typically incur most preopening costs for a new store , remodeled or relocated store in the three months immediately preceding the store 's opening . expenses related to store closings are typically incurred in stages : when the decision is made to close the store , when the closure is communicated to store associates and at the time of closure . as a specialty retailer , our sales are highest in our fourth quarter , followed by the first quarter . the timing of holidays and school vacations can impact our quarterly results . we can not ensure that this will continue to be the case . in addition , for accounting purposes , the quarters of each fiscal year consist of 13 weeks , although we will have a 14-week quarter approximately once every six years . the 2014 fiscal fourth quarter had 14 weeks . liquidity and capital resources our cash requirements are primarily for the opening of new stores , installation and upgrades of information

