we will continue to face the ongoing challenges specific to our business such as food safety and regulatory issues and the maintenance and growth of our customer base . see the information referenced in part i , item 1a  risk factors of this report for additional information about our risks , challenges and uncertainties . 22 annual highlights our net sales for fiscal 2018 increased by $ 42.0 million , or 5.0 % , to $ 888.6 million compared to fiscal 2017. gross profit decreased by $ 3.1 million , and our gross profit margin , as a percentage of net sales , decreased to 15.6 % in fiscal 2018 from 16.8 % in fiscal 2017. total operating expenses for fiscal 2018 increased by $ 1.3 million ; and our operating expenses , as a percentage of net sales , were 9.3 % compared to 9.6 % of net sales in fiscal 2017. diluted earnings per share decreased approximately 10.7 % compared to last fiscal year . our strong financial position allowed us to pay a cash dividend of $ 28.4 million . the total value of inventories on hand at the end of fiscal 2018 decreased by $ 7.8 million , or 4.3 % , in comparison to the total value of inventories on hand at the end of fiscal 2017. we have seen acquisition costs for walnuts , peanuts and cashews increase in the 2017 crop year ( which falls into our 2018 fiscal year ) . while we completed our procurement of the current year crop of inshell walnuts during the second quarter of fiscal 2018 , the total payments to our walnut growers were not determined until the third quarter of fiscal 2018 , which is typical . the final prices paid to the walnut growers were based upon prevailing market prices and other factors , such as crop size and export demand . at june 28 , 2018 approximately $ 0.3 million was due to walnut growers . results of operations the following table sets forth the percentage relationship of certain items to net sales for the periods indicated and the percentage increase or decrease of such items from fiscal 2018 to fiscal 2017 and from fiscal 2017 to fiscal 2016. replace_table_token_3_th fiscal 2018 compared to fiscal 2017 net sales our net sales increased 5.0 % to $ 888.6 million for fiscal 2018 from $ 846.6 million for fiscal 2017. sales volume ( measured as pounds sold to customers ) increased by 3.4 % for fiscal 2018 in comparison to sales volume for fiscal 2017. the increase in net sales was also driven by a 1.5 % increase in the weighted average sales price per pound , which primarily occurred as a result of increased selling prices for walnuts and cashews . the following summarizes sales by product type as a percentage of total gross sales . the information is based upon gross sales , rather than net sales , because certain adjustments from gross sales to net sales , such as promotional discounts , are not allocable to product type . replace_table_token_4_th 23 the following table shows a comparison of net sales by distribution channel ( dollars in thousands ) : replace_table_token_5_th ( 1 ) sales of branded products were approximately 38 % of total consumer channel sales during fiscal 2018 and 2017. fisher branded products were approximately 75 % and 85 % of branded sales during fiscal 2018 and 2017 respectively , with branded produce products accounting for most of the remaining branded product sales . net sales in the consumer distribution channel increased by 11.2 % in dollars and 11.1 % in sales volume in fiscal 2018 compared to fiscal 2017. the sales volume increase was driven by increased sales of private brand products and orchard valley harvest produce products . a 63.7 % increase in sales volume of orchard valley harvest produce products was driven by new item introductions and distribution gains at new and existing customers . sales volume for private label snack and trail mixes increased 11.3 % due to new item introductions and increased distribution with existing customers . accounting for approximately 16.6 % of the annual sales volume increase was the additional sales volume from the squirrel brand acquisition which occurred late in our fiscal 2018 second quarter . squirrel brand sales volume for seven months of the current fiscal year was included in the consumer and commercial ingredients distribution channels , while squirrel brand sales volume for the previous year was included in the contract packaging distribution channel because squirrel brand was a contract packaging customer during fiscal 2017. sales volume for fisher products was relatively unchanged in the annual comparison . iri market data from june 2018 indicates that fisher recipe nuts continue to be the branded market share leader in the overall recipe nut category . net sales in the commercial ingredients distribution channel decreased by 6.4 % in dollars and 5.5 % in sales volume compared to fiscal 2017. the sales volume decrease was primarily due to the loss of a bulk almond butter customer which occurred in the second quarter of fiscal 2017. net sales in the contract packaging distribution channel decreased by 4.6 % in dollars and 9.0 % in sales volume in fiscal 2018 compared to fiscal 2017. the sales volume decrease was primarily due to our acquisition of the squirrel brand business in november 2017 as described above , coupled with the loss of some bulk business with an existing contract packaging customer . story_separator_special_tag the selling price was determined by an independent appraiser to be the fair market value which also approximated our carrying value . the lease for the selma properties has a ten-year term at a fair market value rent with three five-year renewal options . also , we currently have an option to purchase the selma properties from the partnerships at 95 % ( 100 % in certain circumstances ) of the then fair market value , but not less than the original $ 14.3 million purchase price . the provisions of the arrangement are not eligible for sale-leaseback accounting and the $ 14.3 million was recorded as a debt obligation . no gain or loss was recorded on the selma properties transaction . as of june 28 , 2018 , $ 10.6 million of the debt obligation was outstanding . in september 2015 , we exercised two five-year renewal options which extended the selma lease to september 18 , 2026 ( unless we purchase it before such date ) and reduced the base monthly lease amount we pay on the selma properties during the second quarter of fiscal 2017. squirrel brand seller-financed note in november 2017 we completed the squirrel brand acquisition . the acquisition was financed by a combination of cash ( drawn under the credit facility ) and a three-year seller-financed note for $ 11.5 million ( promissory note ) . the principal owner and seller of the squirrel brand business was subsequently appointed as an executive officer of the company and is considered a related party . the promissory note is unsecured , bears interest at 5.5 % per annum and is payable in equal monthly principal payments of $ 0.3 million , plus interest , beginning in january 2018. upon an event of default , as defined in the promissory note , the interest rate increases to 7.5 % until such event of default is cured . we can pre-pay the promissory note at any time during the three-year period without penalty . at june 28 , 2018 , the principal amount of $ 9.3 million of the promissory note was outstanding . 30 off-balance sheet arrangements as of june 28 , 2018 , we were not involved in any off-balance sheet arrangements , as defined in item 303 ( a ) ( 4 ) ( ii ) of regulation s-k promulgated by the sec . contractual cash obligations at june 28 , 2018 , we had the following contractual cash obligations for long-term debt ( including scheduled interest payments ) , operating leases , the credit facility , purchase obligations , retirement plans and other long-term liabilities ( amounts in this subsection in thousands ) : replace_table_token_9_th ( 1 ) see note 6 - long-term debt of the notes to consolidated financial statements for further detail on the company 's long-term debt obligations . ( 2 ) the purchase obligations primarily represent of inventory purchase commitments and a commitment to purchase capital equipment ; however , these amounts exclude purchase commitments under walnut purchase agreements due to the uncertainty of pricing and quantity . ( 3 ) represents projected retirement obligations . see note 12 - employee benefit plans and note 13 - retirement plan of the notes to consolidated financial statements for further details . 31 critical accounting policies and estimates our financial statements are prepared in accordance with accounting principles generally accepted in the united states of america . the accounting policies as disclosed in the notes to consolidated financial statements are applied in the preparation of our financial statements and accounting for the underlying transactions and balances . the policies discussed below are considered by our management to be critical for an understanding of our financial statements because the application of these policies places the most significant demands on management 's judgment , with financial reporting results relying on estimation regarding the effect of matters that are inherently uncertain . specific risks , if applicable , for these critical accounting policies are described in the following paragraphs . for a detailed discussion on the application of these and other accounting policies , see note 1significant accounting policies of the notes to consolidated financial statements . preparation of this annual report on form 10-k requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities , disclosures of contingent assets and liabilities at the date of our financial statements , and the reported amounts of revenue and expenses during the reporting period . actual results may differ from those estimates . see forward-looking statements below . revenue recognition we recognize revenue when persuasive evidence of an arrangement exists , title has transferred ( based upon terms of shipment ) , price is fixed , delivery occurs and collection is reasonably assured . we sell our products under some arrangements , which include customer contracts that fix the sales price for periods , which typically can be up to one year for some commercial ingredient customers , and through specific programs consisting of promotion allowances , volume and customer rebates and marketing allowances , among others , to consumer and some commercial ingredient users . reserves for these programs are established based upon the terms of specific arrangements . revenues are recorded net of rebates and promotion and marketing allowances . revenues are also recorded net of expected customer deductions which are provided for based upon past experiences . while customers do have the right to return products , past experience has demonstrated that product returns have generally been insignificant . provisions for returns are reflected as a reduction in net sales and are estimated based upon customer specific circumstances . evaluating these estimates requires our management 's judgment , and changes in our assumptions could impact the amount recorded for our sales , cost of sales and net income . inventories inventories , which consist principally of inshell bulk-stored nuts , shelled nuts , dried fruit and processed

liquidity and capital resources general the primary uses of cash are to fund our current operations , fulfill contractual obligations , pursue our strategic plan and repay indebtedness . also , various uncertainties could result in additional uses of cash . the primary sources of cash are results of operations and availability under our credit agreement , dated february 7 , 2008 and subsequently amended most recently in november 2017 ( as amended , the credit facility ) , that provides a revolving loan commitment and letter of credit subfacility . we anticipate that expected net cash flow generated from operations and amounts available pursuant to the credit facility will be sufficient to fund our operations for the next twelve months . our available credit under our credit facility has allowed us to consummate business acquisitions , devote more funds to promote our branded products ( especially our fisher and orchard valley harvest brands ) , reinvest in the company through capital expenditures , develop new products , pay special cash dividends , and explore other growth strategies outlined in our strategic plan . cash flows from operating activities have historically been driven by net income but are also significantly influenced by inventory requirements , which can change based upon fluctuations in both quantities and market prices of the various nuts and nut products we buy and sell . current market trends in nut prices and crop estimates also impact nut procurement . the following table sets forth certain cash flow information for the last three fiscal years ( dollars in thousands ) : replace_table_token_8_th operating activities . net cash provided by operating activities was $ 66.2 million in fiscal 2018 , an increase of $ 13.5 million compared to fiscal 2017. this increase in operating cash flow was due primarily to lower levels of inventory in fiscal 2018 compared to fiscal 2017. inventories decreased $ 7.8 million in fiscal 2018 compared to a $ 25.8 million increase in inventories in fiscal 2017 which resulted in a net favorable change in cash of $ 35.6 million .


 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 general the primary uses of cash are to fund our current operations , fulfill contractual obligations , pursue our strategic plan and repay indebtedness . also , various uncertainties could result in additional uses of cash . the primary sources of cash are results of operations and availability under our credit agreement , dated february 7 , 2008 and subsequently amended most recently in november 2017 ( as amended , the credit facility ) , that provides a revolving loan commitment and letter of credit subfacility . we anticipate that expected net cash flow generated from operations and amounts available pursuant to the credit facility will be sufficient to fund our operations for the next twelve months . our available credit under our credit facility has allowed us to consummate business acquisitions , devote more funds to promote our branded products ( especially our fisher and orchard valley harvest brands ) , reinvest in the company through capital expenditures , develop new products , pay special cash dividends , and explore other growth strategies outlined in our strategic plan . cash flows from operating activities have historically been driven by net income but are also significantly influenced by inventory requirements , which can change based upon fluctuations in both quantities and market prices of the various nuts and nut products we buy and sell . current market trends in nut prices and crop estimates also impact nut procurement . the following table sets forth certain cash flow information for the last three fiscal years ( dollars in thousands ) : replace_table_token_8_th operating activities . net cash provided by operating activities was $ 66.2 million in fiscal 2018 , an increase of $ 13.5 million compared to fiscal 2017. this increase in operating cash flow was due primarily to lower levels of inventory in fiscal 2018 compared to fiscal 2017. inventories decreased $ 7.8 million in fiscal 2018 compared to a $ 25.8 million increase in inventories in fiscal 2017 which resulted in a net favorable change in cash of $ 35.6 million .
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 Suspicious Activity Report : we will continue to face the ongoing challenges specific to our business such as food safety and regulatory issues and the maintenance and growth of our customer base . see the information referenced in part i , item 1a  risk factors of this report for additional information about our risks , challenges and uncertainties . 22 annual highlights our net sales for fiscal 2018 increased by $ 42.0 million , or 5.0 % , to $ 888.6 million compared to fiscal 2017. gross profit decreased by $ 3.1 million , and our gross profit margin , as a percentage of net sales , decreased to 15.6 % in fiscal 2018 from 16.8 % in fiscal 2017. total operating expenses for fiscal 2018 increased by $ 1.3 million ; and our operating expenses , as a percentage of net sales , were 9.3 % compared to 9.6 % of net sales in fiscal 2017. diluted earnings per share decreased approximately 10.7 % compared to last fiscal year . our strong financial position allowed us to pay a cash dividend of $ 28.4 million . the total value of inventories on hand at the end of fiscal 2018 decreased by $ 7.8 million , or 4.3 % , in comparison to the total value of inventories on hand at the end of fiscal 2017. we have seen acquisition costs for walnuts , peanuts and cashews increase in the 2017 crop year ( which falls into our 2018 fiscal year ) . while we completed our procurement of the current year crop of inshell walnuts during the second quarter of fiscal 2018 , the total payments to our walnut growers were not determined until the third quarter of fiscal 2018 , which is typical . the final prices paid to the walnut growers were based upon prevailing market prices and other factors , such as crop size and export demand . at june 28 , 2018 approximately $ 0.3 million was due to walnut growers . results of operations the following table sets forth the percentage relationship of certain items to net sales for the periods indicated and the percentage increase or decrease of such items from fiscal 2018 to fiscal 2017 and from fiscal 2017 to fiscal 2016. replace_table_token_3_th fiscal 2018 compared to fiscal 2017 net sales our net sales increased 5.0 % to $ 888.6 million for fiscal 2018 from $ 846.6 million for fiscal 2017. sales volume ( measured as pounds sold to customers ) increased by 3.4 % for fiscal 2018 in comparison to sales volume for fiscal 2017. the increase in net sales was also driven by a 1.5 % increase in the weighted average sales price per pound , which primarily occurred as a result of increased selling prices for walnuts and cashews . the following summarizes sales by product type as a percentage of total gross sales . the information is based upon gross sales , rather than net sales , because certain adjustments from gross sales to net sales , such as promotional discounts , are not allocable to product type . replace_table_token_4_th 23 the following table shows a comparison of net sales by distribution channel ( dollars in thousands ) : replace_table_token_5_th ( 1 ) sales of branded products were approximately 38 % of total consumer channel sales during fiscal 2018 and 2017. fisher branded products were approximately 75 % and 85 % of branded sales during fiscal 2018 and 2017 respectively , with branded produce products accounting for most of the remaining branded product sales . net sales in the consumer distribution channel increased by 11.2 % in dollars and 11.1 % in sales volume in fiscal 2018 compared to fiscal 2017. the sales volume increase was driven by increased sales of private brand products and orchard valley harvest produce products . a 63.7 % increase in sales volume of orchard valley harvest produce products was driven by new item introductions and distribution gains at new and existing customers . sales volume for private label snack and trail mixes increased 11.3 % due to new item introductions and increased distribution with existing customers . accounting for approximately 16.6 % of the annual sales volume increase was the additional sales volume from the squirrel brand acquisition which occurred late in our fiscal 2018 second quarter . squirrel brand sales volume for seven months of the current fiscal year was included in the consumer and commercial ingredients distribution channels , while squirrel brand sales volume for the previous year was included in the contract packaging distribution channel because squirrel brand was a contract packaging customer during fiscal 2017. sales volume for fisher products was relatively unchanged in the annual comparison . iri market data from june 2018 indicates that fisher recipe nuts continue to be the branded market share leader in the overall recipe nut category . net sales in the commercial ingredients distribution channel decreased by 6.4 % in dollars and 5.5 % in sales volume compared to fiscal 2017. the sales volume decrease was primarily due to the loss of a bulk almond butter customer which occurred in the second quarter of fiscal 2017. net sales in the contract packaging distribution channel decreased by 4.6 % in dollars and 9.0 % in sales volume in fiscal 2018 compared to fiscal 2017. the sales volume decrease was primarily due to our acquisition of the squirrel brand business in november 2017 as described above , coupled with the loss of some bulk business with an existing contract packaging customer . story_separator_special_tag the selling price was determined by an independent appraiser to be the fair market value which also approximated our carrying value . the lease for the selma properties has a ten-year term at a fair market value rent with three five-year renewal options . also , we currently have an option to purchase the selma properties from the partnerships at 95 % ( 100 % in certain circumstances ) of the then fair market value , but not less than the original $ 14.3 million purchase price . the provisions of the arrangement are not eligible for sale-leaseback accounting and the $ 14.3 million was recorded as a debt obligation . no gain or loss was recorded on the selma properties transaction . as of june 28 , 2018 , $ 10.6 million of the debt obligation was outstanding . in september 2015 , we exercised two five-year renewal options which extended the selma lease to september 18 , 2026 ( unless we purchase it before such date ) and reduced the base monthly lease amount we pay on the selma properties during the second quarter of fiscal 2017. squirrel brand seller-financed note in november 2017 we completed the squirrel brand acquisition . the acquisition was financed by a combination of cash ( drawn under the credit facility ) and a three-year seller-financed note for $ 11.5 million ( promissory note ) . the principal owner and seller of the squirrel brand business was subsequently appointed as an executive officer of the company and is considered a related party . the promissory note is unsecured , bears interest at 5.5 % per annum and is payable in equal monthly principal payments of $ 0.3 million , plus interest , beginning in january 2018. upon an event of default , as defined in the promissory note , the interest rate increases to 7.5 % until such event of default is cured . we can pre-pay the promissory note at any time during the three-year period without penalty . at june 28 , 2018 , the principal amount of $ 9.3 million of the promissory note was outstanding . 30 off-balance sheet arrangements as of june 28 , 2018 , we were not involved in any off-balance sheet arrangements , as defined in item 303 ( a ) ( 4 ) ( ii ) of regulation s-k promulgated by the sec . contractual cash obligations at june 28 , 2018 , we had the following contractual cash obligations for long-term debt ( including scheduled interest payments ) , operating leases , the credit facility , purchase obligations , retirement plans and other long-term liabilities ( amounts in this subsection in thousands ) : replace_table_token_9_th ( 1 ) see note 6 - long-term debt of the notes to consolidated financial statements for further detail on the company 's long-term debt obligations . ( 2 ) the purchase obligations primarily represent of inventory purchase commitments and a commitment to purchase capital equipment ; however , these amounts exclude purchase commitments under walnut purchase agreements due to the uncertainty of pricing and quantity . ( 3 ) represents projected retirement obligations . see note 12 - employee benefit plans and note 13 - retirement plan of the notes to consolidated financial statements for further details . 31 critical accounting policies and estimates our financial statements are prepared in accordance with accounting principles generally accepted in the united states of america . the accounting policies as disclosed in the notes to consolidated financial statements are applied in the preparation of our financial statements and accounting for the underlying transactions and balances . the policies discussed below are considered by our management to be critical for an understanding of our financial statements because the application of these policies places the most significant demands on management 's judgment , with financial reporting results relying on estimation regarding the effect of matters that are inherently uncertain . specific risks , if applicable , for these critical accounting policies are described in the following paragraphs . for a detailed discussion on the application of these and other accounting policies , see note 1significant accounting policies of the notes to consolidated financial statements . preparation of this annual report on form 10-k requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities , disclosures of contingent assets and liabilities at the date of our financial statements , and the reported amounts of revenue and expenses during the reporting period . actual results may differ from those estimates . see forward-looking statements below . revenue recognition we recognize revenue when persuasive evidence of an arrangement exists , title has transferred ( based upon terms of shipment ) , price is fixed , delivery occurs and collection is reasonably assured . we sell our products under some arrangements , which include customer contracts that fix the sales price for periods , which typically can be up to one year for some commercial ingredient customers , and through specific programs consisting of promotion allowances , volume and customer rebates and marketing allowances , among others , to consumer and some commercial ingredient users . reserves for these programs are established based upon the terms of specific arrangements . revenues are recorded net of rebates and promotion and marketing allowances . revenues are also recorded net of expected customer deductions which are provided for based upon past experiences . while customers do have the right to return products , past experience has demonstrated that product returns have generally been insignificant . provisions for returns are reflected as a reduction in net sales and are estimated based upon customer specific circumstances . evaluating these estimates requires our management 's judgment , and changes in our assumptions could impact the amount recorded for our sales , cost of sales and net income . inventories inventories , which consist principally of inshell bulk-stored nuts , shelled nuts , dried fruit and processed

