prior to january 3 , 2010 , our reportable segments consisted of the following : united states wholesale , europe wholesale , other international wholesale and direct to consumer . effective january 3 , 2010 , our reportable segments consist of the following : north america wholesale , europe wholesale , asia pacific wholesale and direct to consumer . these changes included the reclassification of our wholesale operations in canada and mexico and our u.s. export business , all of which were previously recorded within our 41 other international wholesale segment , to the north america wholesale segment . our u.s. domestic wholesale operations previously recorded within the united states wholesale segment , were also reclassified to the north america wholesale segment . our asia pacific wholesale operations , previously recorded within the other international wholesale segment , were reclassified to the asia pacific wholesale segment . our operations related to our joint venture with fossil spain , s.a. , previously recorded within the other international wholesale segment , were reclassified to the europe wholesale segment . for comparison purposes , our historical segment disclosures were recast to be consistent with the current presentation . this discussion should be read in conjunction with the consolidated financial statements and the related notes included therewith . critical accounting policies and estimates the preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the united states of america requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period . on an on-going basis , we evaluate our estimates and judgments , including those related to product returns , bad debt , inventories , long-lived asset impairment , impairment of goodwill and trade names , income taxes , warranty costs , hedge accounting , litigation reserves and stock-based compensation . we base our estimates and judgments on historical experience and on various other factors that we believe to be reasonable under the circumstances . our estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe the following critical accounting policies require the most significant estimates and judgments . product returns . we accept limited returns and may request that a customer return a product if we feel the customer has an excess of any style that we have identified as being a poor performer for that customer or geographic location . we monitor returns and maintain a provision for estimated returns based upon historical experience and any specific issues identified . while returns have historically been within our expectations and the provisions established , future return rates may differ from those experienced in the past . in the event that our products are performing poorly in the retail market and or we experience product damages or defects at a rate significantly higher than our historical rate , the resulting returns could have an adverse impact on the operating results for the period or periods in which such returns occur . bad debt . we perform ongoing credit evaluations of our customers and adjust credit limits based upon payment history and the customer 's current credit worthiness , as determined by a review of their current credit information . we monitor collections and payments from our customers and maintain a provision for estimated credit losses based upon historical experience and any specific customer collection issues identified . additionally , we secure credit insurance policies in certain countries . while such credit losses have historically been within our expectations and the provisions established , future credit losses may differ from those experienced in the past . our bad debt allowance has increased over the last three fiscal years due to the challenging global economic environment . as a result of the difficult economic environment , some of our domestic and international customers have experienced financial difficulties , including bankruptcy . we increased our bad debt allowance to reserve for these bankruptcies , as well as increased risks of non-payment and increased risk of customer charge-backs . our policy is to maintain the reserve balances for bankruptcies until such time as the bankruptcies are actually settled . inventories . inventories are stated at the lower of average cost , including any applicable duty and freight charges , or market . we account for estimated obsolescence or unmarketable inventory equal to the difference between the average cost of inventory and the estimated market value based upon assumptions about future demand and market conditions . if actual future demand or market conditions are less favorable than those projected by management , additional inventory valuation reductions may be required . 42 long-lived asset impairment . we test for asset impairment of property , plant and equipment and other long-lived assets whenever events or conditions indicate that the carrying value of an asset might not be recoverable based on expected discounted cash flows related to the asset . we apply accounting standards codification ( asc ) 360 property , plant and equipment ( asc 360 ) , in order to determine whether or not an asset is impaired . in evaluating long-lived assets for recoverability , we use our best estimate of future cash flows expected to result from the use of the asset and its eventual disposition . when undiscounted cash flows estimated to be generated through the operations of our company-owned retail stores are less than the carrying value of the underlying assets , impairment losses are recorded in selling and distribution expenses . in addition , impairment losses resulting from property , plant and equipment in our corporate costs area are recorded in general and administrative expenses . story_separator_special_tag in fiscal year 2011 , asia pacific wholesale net sales increased 27.8 % , or $ 61.4 million . this increase was principally attributable to increases in our watch and leather categories of 32.1 % , or $ 61.0 million , and 36.2 % , or $ 4.6 million , respectively . these sales volume gains were partially offset by a 42.9 % , or $ 5.2 million , decrease in jewelry sales volumes primarily as a result of discontinuing a non-strategic , local jewelry brand in india . our business model in asia is focused on expanding our concessions model across key markets while exploring opportunities to further advance the fossil brand across the region . combined sales volumes in our strategic markets of china , korea and japan increased 39.7 % during fiscal year 2011 as compared to the prior fiscal year . at the end of fiscal year 2011 , we operated 213 concession locations in asia with a net 52 new concessions opened during the last twelve months . for the 2011 fiscal year , concession sales increased by 74.1 % with comparable store sales growing 24.1 % in comparison to the prior fiscal year . these concessions represent a large opportunity for us in that they allow us to control the brand presentation and customer experience at the point of sale and capture the full retail price . we believe our diverse global distribution network , including owned distribution in 22 countries , combined with our design and marketing capabilities , will allow us to continue to take shelf space from lesser known local 47 and regional brands as we continue to increase brand awareness through the growth of our retail stores and introduction of new websites in many of the countries in which we operate . we also believe that investments we have made in certain emerging markets will allow us to experience higher levels of growth in our international wholesale segments in comparison to our north america wholesale segment . direct to consumer net sales . direct to consumer net sales increased 23.6 % , or $ 113.8 million , during fiscal year 2011 , principally the result of comparable store sales increases of 17.4 % and a 6.1 % increase in the average number of stores open during the fiscal year . the emphasis we have placed upon engaging our customers within our redesigned store environment and the focus on our proven selling metrics has improved store productivity . during fiscal year 2011 , comparable store sales related to our global full price accessory concept increased by 11.5 % , while our global outlet stores experienced comparable store sales growth of 26.2 % . additionally , our direct to consumer segment was favorably impacted in fiscal year 2011 by $ 5.0 million of additional e-commerce sales , primarily driven by our u.s. , germany and u.k.-based e-commerce businesses . in december , our most productive month for e-commerce , our e-commerce business increased by 11.7 % in 2011 as compared to december 2010. we ended fiscal year 2011 with 398 stores , including 245 full price accessory stores , 142 of which were outside of north america , 104 outlet locations , including 29 outside of north america , 36 clothing stores , including 4 outside of north america , and 13 full price multi-brand stores , including 11 outside of north america . this compares to 364 stores at the end of fiscal year 2010 , including 230 full price accessory stores , 127 of which were outside of north america , 93 outlet locations , including 22 outside of north america , 31 clothing stores , including 3 outside of north america , and 10 full price multi-brand stores , including 9 outside of north america . during fiscal year 2011 , we opened 51 new stores and closed 17 stores . during fiscal year 2012 , we anticipate opening approximately 70 to 75 additional retail stores and closing approximately 18 stores globally . a store is included in comparable store sales in the thirteenth month of operation . stores that experience a gross square footage increase of 10 % or more due to an expansion and or relocation are removed from the comparable store sales base , but are included in total sales . these stores are returned to the comparable store sales base in the thirteenth month following the expansion and or relocation . during 2006 , we entered into an agreement with the house of fraser , a u.k.-based department store ( hof ) , which allows us to operate the watch department in certain hof stores . under this agreement , we own the inventory within the hof store , provide the labor to operate the department and pay hof a commission on the retail watch sales generated in the stores . although we include the net sales derived from the hof stores in our direct to consumer segment , we do not include the number of locations associated with this agreement in our retail store count or in our comparable store sales . gross profit . gross profit of $ 1.4 billion in fiscal year 2011 represented an increase of 24.6 % in comparison to $ 1.2 billion in the prior fiscal year . this increase was primarily a result of an increase in net sales partially offset by a reduction in gross profit margin . gross profit margin decreased 80 basis points to 56.1 % in fiscal year 2011 compared to 56.9 % in the prior fiscal year . the decrease in gross profit margin was primarily driven by increased production costs , lower margin sales to off-price retailers and , to a lesser extent , an increase in the sales mix of lower margin sales to third party distributors . partially offsetting these declines in gross profit margin was an increase in the mix of sales of higher margin watch products in comparison

liquidity and capital resources historically , our business operations have not required substantial cash during the first several months of our fiscal year . generally , starting in the second quarter , our cash needs begin to increase , typically reaching a peak in the september-november time frame as we increase inventory levels in advance of the holiday season . our quarterly cash requirements are also impacted by the number of new stores we open , other capital expenditures , and the amount of any discretionary stock repurchases we make . 53 net cash provided by operating activities of $ 251.3 million in fiscal year 2011 was more than offset by cash used in investing and financing activities of $ 110.1 million and $ 249.9 million respectively , resulting in a $ 105.3 million decrease in cash and cash equivalents since the end of fiscal year 2010. during fiscal year 2011 , net cash provided by operating activities consisted of net income of $ 307.4 million and favorable non-cash activities of $ 91.4 million , partially offset by an unfavorable increase in net operating assets and liabilities of $ 147.5 million . during fiscal year 2011 , cash used in investing activities was primarily driven by $ 109.9 million in capital expenditures . during fiscal year 2011 , cash used in financing activities was principally comprised of $ 270.9 million of common stock repurchases . foreign exchange rate translations increased cash and cash equivalents by $ 3.4 million during fiscal year 2011. as illustrated in the contractual obligations table below , we have approximately $ 2.7 million of unrecognized tax benefits that have been recorded as liabilities and could be settled in the next 12 months . settlement of such amounts could require utilization of working capital . as of december 31 , 2011 , we have not provided for u.s. federal and state income taxes on approximately $ 371.8 million of undistributed earnings of our foreign subsidiaries , since such earnings are considered indefinitely reinvested outside the united states . if in the future we decide to repatriate such earnings , we would incur incremental u.s. federal and state income tax , reduced by allowable foreign tax credits .


 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 historically , our business operations have not required substantial cash during the first several months of our fiscal year . generally , starting in the second quarter , our cash needs begin to increase , typically reaching a peak in the september-november time frame as we increase inventory levels in advance of the holiday season . our quarterly cash requirements are also impacted by the number of new stores we open , other capital expenditures , and the amount of any discretionary stock repurchases we make . 53 net cash provided by operating activities of $ 251.3 million in fiscal year 2011 was more than offset by cash used in investing and financing activities of $ 110.1 million and $ 249.9 million respectively , resulting in a $ 105.3 million decrease in cash and cash equivalents since the end of fiscal year 2010. during fiscal year 2011 , net cash provided by operating activities consisted of net income of $ 307.4 million and favorable non-cash activities of $ 91.4 million , partially offset by an unfavorable increase in net operating assets and liabilities of $ 147.5 million . during fiscal year 2011 , cash used in investing activities was primarily driven by $ 109.9 million in capital expenditures . during fiscal year 2011 , cash used in financing activities was principally comprised of $ 270.9 million of common stock repurchases . foreign exchange rate translations increased cash and cash equivalents by $ 3.4 million during fiscal year 2011. as illustrated in the contractual obligations table below , we have approximately $ 2.7 million of unrecognized tax benefits that have been recorded as liabilities and could be settled in the next 12 months . settlement of such amounts could require utilization of working capital . as of december 31 , 2011 , we have not provided for u.s. federal and state income taxes on approximately $ 371.8 million of undistributed earnings of our foreign subsidiaries , since such earnings are considered indefinitely reinvested outside the united states . if in the future we decide to repatriate such earnings , we would incur incremental u.s. federal and state income tax , reduced by allowable foreign tax credits .
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 Suspicious Activity Report : prior to january 3 , 2010 , our reportable segments consisted of the following : united states wholesale , europe wholesale , other international wholesale and direct to consumer . effective january 3 , 2010 , our reportable segments consist of the following : north america wholesale , europe wholesale , asia pacific wholesale and direct to consumer . these changes included the reclassification of our wholesale operations in canada and mexico and our u.s. export business , all of which were previously recorded within our 41 other international wholesale segment , to the north america wholesale segment . our u.s. domestic wholesale operations previously recorded within the united states wholesale segment , were also reclassified to the north america wholesale segment . our asia pacific wholesale operations , previously recorded within the other international wholesale segment , were reclassified to the asia pacific wholesale segment . our operations related to our joint venture with fossil spain , s.a. , previously recorded within the other international wholesale segment , were reclassified to the europe wholesale segment . for comparison purposes , our historical segment disclosures were recast to be consistent with the current presentation . this discussion should be read in conjunction with the consolidated financial statements and the related notes included therewith . critical accounting policies and estimates the preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the united states of america requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period . on an on-going basis , we evaluate our estimates and judgments , including those related to product returns , bad debt , inventories , long-lived asset impairment , impairment of goodwill and trade names , income taxes , warranty costs , hedge accounting , litigation reserves and stock-based compensation . we base our estimates and judgments on historical experience and on various other factors that we believe to be reasonable under the circumstances . our estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe the following critical accounting policies require the most significant estimates and judgments . product returns . we accept limited returns and may request that a customer return a product if we feel the customer has an excess of any style that we have identified as being a poor performer for that customer or geographic location . we monitor returns and maintain a provision for estimated returns based upon historical experience and any specific issues identified . while returns have historically been within our expectations and the provisions established , future return rates may differ from those experienced in the past . in the event that our products are performing poorly in the retail market and or we experience product damages or defects at a rate significantly higher than our historical rate , the resulting returns could have an adverse impact on the operating results for the period or periods in which such returns occur . bad debt . we perform ongoing credit evaluations of our customers and adjust credit limits based upon payment history and the customer 's current credit worthiness , as determined by a review of their current credit information . we monitor collections and payments from our customers and maintain a provision for estimated credit losses based upon historical experience and any specific customer collection issues identified . additionally , we secure credit insurance policies in certain countries . while such credit losses have historically been within our expectations and the provisions established , future credit losses may differ from those experienced in the past . our bad debt allowance has increased over the last three fiscal years due to the challenging global economic environment . as a result of the difficult economic environment , some of our domestic and international customers have experienced financial difficulties , including bankruptcy . we increased our bad debt allowance to reserve for these bankruptcies , as well as increased risks of non-payment and increased risk of customer charge-backs . our policy is to maintain the reserve balances for bankruptcies until such time as the bankruptcies are actually settled . inventories . inventories are stated at the lower of average cost , including any applicable duty and freight charges , or market . we account for estimated obsolescence or unmarketable inventory equal to the difference between the average cost of inventory and the estimated market value based upon assumptions about future demand and market conditions . if actual future demand or market conditions are less favorable than those projected by management , additional inventory valuation reductions may be required . 42 long-lived asset impairment . we test for asset impairment of property , plant and equipment and other long-lived assets whenever events or conditions indicate that the carrying value of an asset might not be recoverable based on expected discounted cash flows related to the asset . we apply accounting standards codification ( asc ) 360 property , plant and equipment ( asc 360 ) , in order to determine whether or not an asset is impaired . in evaluating long-lived assets for recoverability , we use our best estimate of future cash flows expected to result from the use of the asset and its eventual disposition . when undiscounted cash flows estimated to be generated through the operations of our company-owned retail stores are less than the carrying value of the underlying assets , impairment losses are recorded in selling and distribution expenses . in addition , impairment losses resulting from property , plant and equipment in our corporate costs area are recorded in general and administrative expenses . story_separator_special_tag in fiscal year 2011 , asia pacific wholesale net sales increased 27.8 % , or $ 61.4 million . this increase was principally attributable to increases in our watch and leather categories of 32.1 % , or $ 61.0 million , and 36.2 % , or $ 4.6 million , respectively . these sales volume gains were partially offset by a 42.9 % , or $ 5.2 million , decrease in jewelry sales volumes primarily as a result of discontinuing a non-strategic , local jewelry brand in india . our business model in asia is focused on expanding our concessions model across key markets while exploring opportunities to further advance the fossil brand across the region . combined sales volumes in our strategic markets of china , korea and japan increased 39.7 % during fiscal year 2011 as compared to the prior fiscal year . at the end of fiscal year 2011 , we operated 213 concession locations in asia with a net 52 new concessions opened during the last twelve months . for the 2011 fiscal year , concession sales increased by 74.1 % with comparable store sales growing 24.1 % in comparison to the prior fiscal year . these concessions represent a large opportunity for us in that they allow us to control the brand presentation and customer experience at the point of sale and capture the full retail price . we believe our diverse global distribution network , including owned distribution in 22 countries , combined with our design and marketing capabilities , will allow us to continue to take shelf space from lesser known local 47 and regional brands as we continue to increase brand awareness through the growth of our retail stores and introduction of new websites in many of the countries in which we operate . we also believe that investments we have made in certain emerging markets will allow us to experience higher levels of growth in our international wholesale segments in comparison to our north america wholesale segment . direct to consumer net sales . direct to consumer net sales increased 23.6 % , or $ 113.8 million , during fiscal year 2011 , principally the result of comparable store sales increases of 17.4 % and a 6.1 % increase in the average number of stores open during the fiscal year . the emphasis we have placed upon engaging our customers within our redesigned store environment and the focus on our proven selling metrics has improved store productivity . during fiscal year 2011 , comparable store sales related to our global full price accessory concept increased by 11.5 % , while our global outlet stores experienced comparable store sales growth of 26.2 % . additionally , our direct to consumer segment was favorably impacted in fiscal year 2011 by $ 5.0 million of additional e-commerce sales , primarily driven by our u.s. , germany and u.k.-based e-commerce businesses . in december , our most productive month for e-commerce , our e-commerce business increased by 11.7 % in 2011 as compared to december 2010. we ended fiscal year 2011 with 398 stores , including 245 full price accessory stores , 142 of which were outside of north america , 104 outlet locations , including 29 outside of north america , 36 clothing stores , including 4 outside of north america , and 13 full price multi-brand stores , including 11 outside of north america . this compares to 364 stores at the end of fiscal year 2010 , including 230 full price accessory stores , 127 of which were outside of north america , 93 outlet locations , including 22 outside of north america , 31 clothing stores , including 3 outside of north america , and 10 full price multi-brand stores , including 9 outside of north america . during fiscal year 2011 , we opened 51 new stores and closed 17 stores . during fiscal year 2012 , we anticipate opening approximately 70 to 75 additional retail stores and closing approximately 18 stores globally . a store is included in comparable store sales in the thirteenth month of operation . stores that experience a gross square footage increase of 10 % or more due to an expansion and or relocation are removed from the comparable store sales base , but are included in total sales . these stores are returned to the comparable store sales base in the thirteenth month following the expansion and or relocation . during 2006 , we entered into an agreement with the house of fraser , a u.k.-based department store ( hof ) , which allows us to operate the watch department in certain hof stores . under this agreement , we own the inventory within the hof store , provide the labor to operate the department and pay hof a commission on the retail watch sales generated in the stores . although we include the net sales derived from the hof stores in our direct to consumer segment , we do not include the number of locations associated with this agreement in our retail store count or in our comparable store sales . gross profit . gross profit of $ 1.4 billion in fiscal year 2011 represented an increase of 24.6 % in comparison to $ 1.2 billion in the prior fiscal year . this increase was primarily a result of an increase in net sales partially offset by a reduction in gross profit margin . gross profit margin decreased 80 basis points to 56.1 % in fiscal year 2011 compared to 56.9 % in the prior fiscal year . the decrease in gross profit margin was primarily driven by increased production costs , lower margin sales to off-price retailers and , to a lesser extent , an increase in the sales mix of lower margin sales to third party distributors . partially offsetting these declines in gross profit margin was an increase in the mix of sales of higher margin watch products in comparison

