billion in fiscal 2016 from $ 2.14 billion in fiscal 2015 , and gross margin decreased 10 basis points to 34.3 % of net sales in fiscal 2016 from 34.4 % of net sales in fiscal 2015 . operating income decreased 20 basis points to 10.2 % of net sales in fiscal 2016 from 10.4 % of net sales in fiscal 2015 . in fiscal 2016 , diluted earnings per share grew 9.0 % to $ 3.27 compared to $ 3.00 in fiscal 2015 . we ended the year with $ 53.9 million in cash and outstanding debt of $ 275.0 million , after returning $ 454.0 million to our stockholders through stock repurchases and dividends . 20 index significant accounting policies and estimates management 's discussion and analysis of our financial position and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with united states generally accepted accounting principles . the preparation of these financial statements requires management to make informed estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses and related disclosure of contingent assets and liabilities . our financial position and or results of operations may be materially different when reported under different conditions or when using different assumptions in the application of such policies . in the event estimates or assumptions prove to be different from actual amounts , adjustments are made in subsequent periods to reflect more current information . our significant accounting policies are disclosed in note 1 to our consolidated financial statements . the following discussion addresses our most critical accounting policies , which are those that are both important to the portrayal of our financial condition and results of operations and that require significant judgment or use of complex estimates . description judgments and uncertainties effect if actual results differ from assumptions inventory valuation : inventory impairment we identify potentially excess and slow-moving inventory by evaluating turn rates , historical and expected future sales trends , age of merchandise , overall inventory levels , current cost of inventory and other benchmarks . we have established an inventory valuation reserve to recognize the estimated impairment in value ( i.e . , an inability to realize the full carrying value ) based on our aggregate assessment of these valuation indicators under prevailing market conditions and current merchandising strategies . we do not believe our merchandise inventories are subject to significant risk of obsolescence in the near term . however , changes in market conditions or consumer purchasing patterns could result in the need for additional reserves . our impairment reserve contains uncertainties because the calculation requires management to make assumptions and to apply judgment regarding forecasted customer demand and the promotional environment . we have not made any material changes in the accounting methodology used to recognize inventory impairment reserves in the financial periods presented . we do not believe there is a reasonable likelihood that there will be a material change in the future estimates or assumptions we use to calculate impairment . however , if assumptions regarding consumer demand or clearance potential for certain products are inaccurate , we may be exposed to losses or gains that could be material . a 10 % change in our impairment reserve as of december 31 , 2016 , would have affected net income by approximately $ 0.5 million in fiscal 2016 . 21 index description judgments and uncertainties effect if actual results differ from assumptions shrinkage we perform physical inventories at least once a year for each store that has been open more than 12 months , and we have established a reserve for estimating inventory shrinkage between physical inventory counts . the reserve is established by assessing the chain-wide average shrinkage experience rate , applied to the related periods ' sales volumes . such assessments are updated on a regular basis for the most recent individual store experiences . the estimated store inventory shrink rate is based on historical experience . we believe historical rates are a reasonably accurate reflection of future trends . our shrinkage reserve contains uncertainties because the calculation requires management to make assumptions and to apply judgment regarding future shrinkage trends , the effect of loss prevention measures and new merchandising strategies . we have not made any material changes in the accounting methodology used to recognize shrinkage in the financial periods presented . we do not believe there is a reasonable likelihood that there will be a material change in the future estimates or assumptions we use to calculate our shrinkage reserve . however , if our estimates regarding inventory losses are inaccurate , we may be exposed to losses or gains that could be material . a 10 % change in our shrinkage reserve as of december 31 , 2016 , would have affected net income by approximately $ 1.4 million in fiscal 2016. vendor funding we receive funding from substantially all of our significant merchandise vendors , in support of our business initiatives , through a variety of programs and arrangements , including vendor support funds ( “ vendor support ” ) and volume-based rebate funds ( “ volume rebates ” ) . the amounts received are subject to terms of vendor agreements , most of which are “ evergreen ” , reflecting the on-going relationship with our significant merchandise vendors . certain of our agreements , primarily volume rebates , are renegotiated annually , based on expected annual purchases of the vendor 's product . vendor funding is initially deferred as a reduction of the purchase price of inventory and then recognized as a reduction of cost of merchandise as the related inventory is sold . during interim periods , the amount of volume rebates is estimated based upon initial commitments and anticipated purchase levels with applicable vendors . story_separator_special_tag stores closed during the year are removed from our comparable store metrics calculations . stores relocated during the years being compared are not removed from our comparable store metrics . if the effect of relocated stores on our comparable store metrics becomes material , we would remove relocated stores from the calculations . petsense stores are not considered comparable stores until 12 months after the date of acquisition . the comparable store sales increase was driven by an increase in traffic counts and the year-round strength of consumable , usable , and edible ( `` c.u.e . `` ) products , principally animal- and pet-related merchandise . livestock equipment and hardline products such as fencing and trailers also performed well throughout the year . the full year sales performance was negatively impacted by unpredictable weather patterns during the spring selling season and unseasonably warm weather in the key cold months of the year which drove softness in cold weather seasonal categories and big ticket items such as log splitters and stoves . additionally , the company believes that economic conditions in the energy producing markets negatively impacted consumer spending primarily in the midwest and south central regions . in addition to comparable store sales growth in fiscal 2016 , sales from stores opened less than one year , including petsense , were $ 378.9 million in fiscal 2016 , which represented 6.1 percentage points of the 8.9 % increase over fiscal 2015 net sales . sales from stores opened less than one year were $ 351.0 million in fiscal 2015 , which represented 6.1 percentage points of the 9.0 % increase over fiscal 2014 net sales . the following chart summarizes our store growth during fiscal 2016 and 2015 : replace_table_token_12_th 28 index the following chart indicates the percentage of net sales represented by each of our major product categories during fiscal 2016 and 2015 : replace_table_token_13_th gross profit increased 8.5 % to $ 2.33 billion in fiscal 2016 compared to $ 2.14 billion in fiscal 2015 . as a percent of net sales , gross margin decreased 10 basis points to 34.3 % for fiscal 2016 compared to 34.4 % for fiscal 2015 . this decrease in gross margin percentage principally reflects a higher mix of c.u.e . products , which generally carry below chain average gross margin , partially offset by benefits from our key margin driving initiatives . freight expense as a percent of net sales experienced a marginal increase in fiscal 2016 as compared to the prior year due principally to an increase in inbound miles and domestic transportation costs , partially offset by lower diesel fuel prices and import container costs . selling , general and administrative ( “ sg & a ” ) expenses , including depreciation and amortization , as a percent of net sales increased 10 basis points to 24.1 % in fiscal 2016 from 24.0 % in fiscal 2015 . sg & a expenses as a percent of net sales increased due to incremental costs associated with our new distribution facilities that began operations in late fiscal 2015 , as well as acquisition and operating expenses associated with the petsense purchase . these increases were partially offset by leverage of occupancy costs , as well as lower year-over-year incentive compensation expense . total sg & a expenses , including depreciation and amortization , for fiscal 2016 increased 9.3 % to $ 1.63 billion from $ 1.49 billion in fiscal 2015 . the increase in sg & a expenses primarily reflects new store growth , incremental costs from operating the new distribution facilities , variable costs associated with our comparable store sales growth and the extra sales week during the year and incremental expenses associated with the petsense acquisition and its operations . our effective tax rate decreased to 36.5 % for fiscal 2016 compared to 36.6 % in fiscal 2015 . the decrease in the effective income tax rate was due principally to the availability of federal and state tax incentives . as a result of the foregoing factors , net income for fiscal 2016 increased 6.5 % to $ 437.1 million , or $ 3.27 per diluted share , as compared to net income of $ 410.4 million , or $ 3.00 per diluted share , in fiscal 2015 . during fiscal 2016 , we repurchased approximately 4.4 million shares of the company 's common stock at a total cost of $ 331.7 million as part of our $ 3 billion share repurchase program . in fiscal 2015 , we repurchased approximately 3.4 million shares at a total cost of $ 292.7 million . fiscal 2015 compared to fiscal 2014 net sales increased 9.0 % to $ 6.23 billion in fiscal 2015 from $ 5.71 billion in fiscal 2014. comparable store sales for fiscal 2015 were $ 5.89 billion , a 3.1 % increase over fiscal 2014. this compares to a 3.8 % comparable store sales increase in the prior year . the comparable store transaction count increased 3.3 % , while comparable store average ticket decreased 0.2 % for fiscal 2015. comparable store metrics are calculated on an annual basis using sales generated from all stores open at least one year and all online sales , excluding certain adjustments to net sales . beginning in fiscal 2015 , stores closed during the year are removed from our comparable store metrics calculations . this change in the calculation methodology did not have a material impact on the comparable store metrics reported in prior periods due to the minimal number of stores closed in those periods . stores relocated during the years being compared are not removed from our comparable store metrics . if the effect of relocated stores on our comparable store metrics becomes material , we would remove relocated stores from the calculations . the comparable store sales increase was driven by an increase in traffic counts and the year-round strength of c.u.e . products , principally animal- and

liquidity and capital resources in addition to normal operating expenses , our primary ongoing cash requirements are for new store expansion , remodeling and relocation programs , distribution facilities capacity and improvements , information technology , inventory purchases , share repurchases , cash dividends and selective acquisitions as opportunities arise . our primary ongoing sources of liquidity are existing 30 index cash balances , cash provided from operations , funds available under our senior credit facility ( as discussed in note 5 to the consolidated financial statements ) , capital and operating leases and normal trade credit . our inventory and accounts payable levels typically build in the first and third fiscal quarters to support the higher sales volume of the spring and cold-weather selling seasons , respectively . working capital at december 31 , 2016 , the company had working capital of $ 740.6 million , which decreased $ 27.6 million from december 26 , 2015 . the shifts in working capital were attributable to changes in the following components of current assets and current liabilities ( in millions ) : replace_table_token_16_th ( a ) working capital for 2016 and 2015 reflects deferred tax assets as non-current as a result of the adoption of asu 2015-17 in 2016 ( which is discussed in note 15 to the consolidated financial statements ) . in comparison to december 26 , 2015 , working capital as of december 31 , 2016 was impacted most significantly by changes in our inventory and accounts payable . the increase in inventory resulted from the purchase of additional inventory to support new store growth as well as the acquisition of petsense . we actively manage our inventory balances and in-stock levels at our stores . average inventory per store decreased year-over-year principally due to an improvement in inventory turns of seasonal and cold-weather merchandise at the end of fiscal 2016 compared to fiscal 2015. accounts payable increased primarily as a result of new store growth along with timing of payments to vendors . the decrease in accrued employee compensation is due to lower year-over-year incentive compensation and the timing of payroll accruals .


 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 in addition to normal operating expenses , our primary ongoing cash requirements are for new store expansion , remodeling and relocation programs , distribution facilities capacity and improvements , information technology , inventory purchases , share repurchases , cash dividends and selective acquisitions as opportunities arise . our primary ongoing sources of liquidity are existing 30 index cash balances , cash provided from operations , funds available under our senior credit facility ( as discussed in note 5 to the consolidated financial statements ) , capital and operating leases and normal trade credit . our inventory and accounts payable levels typically build in the first and third fiscal quarters to support the higher sales volume of the spring and cold-weather selling seasons , respectively . working capital at december 31 , 2016 , the company had working capital of $ 740.6 million , which decreased $ 27.6 million from december 26 , 2015 . the shifts in working capital were attributable to changes in the following components of current assets and current liabilities ( in millions ) : replace_table_token_16_th ( a ) working capital for 2016 and 2015 reflects deferred tax assets as non-current as a result of the adoption of asu 2015-17 in 2016 ( which is discussed in note 15 to the consolidated financial statements ) . in comparison to december 26 , 2015 , working capital as of december 31 , 2016 was impacted most significantly by changes in our inventory and accounts payable . the increase in inventory resulted from the purchase of additional inventory to support new store growth as well as the acquisition of petsense . we actively manage our inventory balances and in-stock levels at our stores . average inventory per store decreased year-over-year principally due to an improvement in inventory turns of seasonal and cold-weather merchandise at the end of fiscal 2016 compared to fiscal 2015. accounts payable increased primarily as a result of new store growth along with timing of payments to vendors . the decrease in accrued employee compensation is due to lower year-over-year incentive compensation and the timing of payroll accruals .
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 Suspicious Activity Report : billion in fiscal 2016 from $ 2.14 billion in fiscal 2015 , and gross margin decreased 10 basis points to 34.3 % of net sales in fiscal 2016 from 34.4 % of net sales in fiscal 2015 . operating income decreased 20 basis points to 10.2 % of net sales in fiscal 2016 from 10.4 % of net sales in fiscal 2015 . in fiscal 2016 , diluted earnings per share grew 9.0 % to $ 3.27 compared to $ 3.00 in fiscal 2015 . we ended the year with $ 53.9 million in cash and outstanding debt of $ 275.0 million , after returning $ 454.0 million to our stockholders through stock repurchases and dividends . 20 index significant accounting policies and estimates management 's discussion and analysis of our financial position and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with united states generally accepted accounting principles . the preparation of these financial statements requires management to make informed estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses and related disclosure of contingent assets and liabilities . our financial position and or results of operations may be materially different when reported under different conditions or when using different assumptions in the application of such policies . in the event estimates or assumptions prove to be different from actual amounts , adjustments are made in subsequent periods to reflect more current information . our significant accounting policies are disclosed in note 1 to our consolidated financial statements . the following discussion addresses our most critical accounting policies , which are those that are both important to the portrayal of our financial condition and results of operations and that require significant judgment or use of complex estimates . description judgments and uncertainties effect if actual results differ from assumptions inventory valuation : inventory impairment we identify potentially excess and slow-moving inventory by evaluating turn rates , historical and expected future sales trends , age of merchandise , overall inventory levels , current cost of inventory and other benchmarks . we have established an inventory valuation reserve to recognize the estimated impairment in value ( i.e . , an inability to realize the full carrying value ) based on our aggregate assessment of these valuation indicators under prevailing market conditions and current merchandising strategies . we do not believe our merchandise inventories are subject to significant risk of obsolescence in the near term . however , changes in market conditions or consumer purchasing patterns could result in the need for additional reserves . our impairment reserve contains uncertainties because the calculation requires management to make assumptions and to apply judgment regarding forecasted customer demand and the promotional environment . we have not made any material changes in the accounting methodology used to recognize inventory impairment reserves in the financial periods presented . we do not believe there is a reasonable likelihood that there will be a material change in the future estimates or assumptions we use to calculate impairment . however , if assumptions regarding consumer demand or clearance potential for certain products are inaccurate , we may be exposed to losses or gains that could be material . a 10 % change in our impairment reserve as of december 31 , 2016 , would have affected net income by approximately $ 0.5 million in fiscal 2016 . 21 index description judgments and uncertainties effect if actual results differ from assumptions shrinkage we perform physical inventories at least once a year for each store that has been open more than 12 months , and we have established a reserve for estimating inventory shrinkage between physical inventory counts . the reserve is established by assessing the chain-wide average shrinkage experience rate , applied to the related periods ' sales volumes . such assessments are updated on a regular basis for the most recent individual store experiences . the estimated store inventory shrink rate is based on historical experience . we believe historical rates are a reasonably accurate reflection of future trends . our shrinkage reserve contains uncertainties because the calculation requires management to make assumptions and to apply judgment regarding future shrinkage trends , the effect of loss prevention measures and new merchandising strategies . we have not made any material changes in the accounting methodology used to recognize shrinkage in the financial periods presented . we do not believe there is a reasonable likelihood that there will be a material change in the future estimates or assumptions we use to calculate our shrinkage reserve . however , if our estimates regarding inventory losses are inaccurate , we may be exposed to losses or gains that could be material . a 10 % change in our shrinkage reserve as of december 31 , 2016 , would have affected net income by approximately $ 1.4 million in fiscal 2016. vendor funding we receive funding from substantially all of our significant merchandise vendors , in support of our business initiatives , through a variety of programs and arrangements , including vendor support funds ( “ vendor support ” ) and volume-based rebate funds ( “ volume rebates ” ) . the amounts received are subject to terms of vendor agreements , most of which are “ evergreen ” , reflecting the on-going relationship with our significant merchandise vendors . certain of our agreements , primarily volume rebates , are renegotiated annually , based on expected annual purchases of the vendor 's product . vendor funding is initially deferred as a reduction of the purchase price of inventory and then recognized as a reduction of cost of merchandise as the related inventory is sold . during interim periods , the amount of volume rebates is estimated based upon initial commitments and anticipated purchase levels with applicable vendors . story_separator_special_tag stores closed during the year are removed from our comparable store metrics calculations . stores relocated during the years being compared are not removed from our comparable store metrics . if the effect of relocated stores on our comparable store metrics becomes material , we would remove relocated stores from the calculations . petsense stores are not considered comparable stores until 12 months after the date of acquisition . the comparable store sales increase was driven by an increase in traffic counts and the year-round strength of consumable , usable , and edible ( `` c.u.e . `` ) products , principally animal- and pet-related merchandise . livestock equipment and hardline products such as fencing and trailers also performed well throughout the year . the full year sales performance was negatively impacted by unpredictable weather patterns during the spring selling season and unseasonably warm weather in the key cold months of the year which drove softness in cold weather seasonal categories and big ticket items such as log splitters and stoves . additionally , the company believes that economic conditions in the energy producing markets negatively impacted consumer spending primarily in the midwest and south central regions . in addition to comparable store sales growth in fiscal 2016 , sales from stores opened less than one year , including petsense , were $ 378.9 million in fiscal 2016 , which represented 6.1 percentage points of the 8.9 % increase over fiscal 2015 net sales . sales from stores opened less than one year were $ 351.0 million in fiscal 2015 , which represented 6.1 percentage points of the 9.0 % increase over fiscal 2014 net sales . the following chart summarizes our store growth during fiscal 2016 and 2015 : replace_table_token_12_th 28 index the following chart indicates the percentage of net sales represented by each of our major product categories during fiscal 2016 and 2015 : replace_table_token_13_th gross profit increased 8.5 % to $ 2.33 billion in fiscal 2016 compared to $ 2.14 billion in fiscal 2015 . as a percent of net sales , gross margin decreased 10 basis points to 34.3 % for fiscal 2016 compared to 34.4 % for fiscal 2015 . this decrease in gross margin percentage principally reflects a higher mix of c.u.e . products , which generally carry below chain average gross margin , partially offset by benefits from our key margin driving initiatives . freight expense as a percent of net sales experienced a marginal increase in fiscal 2016 as compared to the prior year due principally to an increase in inbound miles and domestic transportation costs , partially offset by lower diesel fuel prices and import container costs . selling , general and administrative ( “ sg & a ” ) expenses , including depreciation and amortization , as a percent of net sales increased 10 basis points to 24.1 % in fiscal 2016 from 24.0 % in fiscal 2015 . sg & a expenses as a percent of net sales increased due to incremental costs associated with our new distribution facilities that began operations in late fiscal 2015 , as well as acquisition and operating expenses associated with the petsense purchase . these increases were partially offset by leverage of occupancy costs , as well as lower year-over-year incentive compensation expense . total sg & a expenses , including depreciation and amortization , for fiscal 2016 increased 9.3 % to $ 1.63 billion from $ 1.49 billion in fiscal 2015 . the increase in sg & a expenses primarily reflects new store growth , incremental costs from operating the new distribution facilities , variable costs associated with our comparable store sales growth and the extra sales week during the year and incremental expenses associated with the petsense acquisition and its operations . our effective tax rate decreased to 36.5 % for fiscal 2016 compared to 36.6 % in fiscal 2015 . the decrease in the effective income tax rate was due principally to the availability of federal and state tax incentives . as a result of the foregoing factors , net income for fiscal 2016 increased 6.5 % to $ 437.1 million , or $ 3.27 per diluted share , as compared to net income of $ 410.4 million , or $ 3.00 per diluted share , in fiscal 2015 . during fiscal 2016 , we repurchased approximately 4.4 million shares of the company 's common stock at a total cost of $ 331.7 million as part of our $ 3 billion share repurchase program . in fiscal 2015 , we repurchased approximately 3.4 million shares at a total cost of $ 292.7 million . fiscal 2015 compared to fiscal 2014 net sales increased 9.0 % to $ 6.23 billion in fiscal 2015 from $ 5.71 billion in fiscal 2014. comparable store sales for fiscal 2015 were $ 5.89 billion , a 3.1 % increase over fiscal 2014. this compares to a 3.8 % comparable store sales increase in the prior year . the comparable store transaction count increased 3.3 % , while comparable store average ticket decreased 0.2 % for fiscal 2015. comparable store metrics are calculated on an annual basis using sales generated from all stores open at least one year and all online sales , excluding certain adjustments to net sales . beginning in fiscal 2015 , stores closed during the year are removed from our comparable store metrics calculations . this change in the calculation methodology did not have a material impact on the comparable store metrics reported in prior periods due to the minimal number of stores closed in those periods . stores relocated during the years being compared are not removed from our comparable store metrics . if the effect of relocated stores on our comparable store metrics becomes material , we would remove relocated stores from the calculations . the comparable store sales increase was driven by an increase in traffic counts and the year-round strength of c.u.e . products , principally animal- and

