the 28 % decrease in american girl gross sales was primarily due to lower sales in proprietary retail and direct channels , a strategic shift away from the utilization of external distribution channels , and the sale of corolle in the first quarter of 2018. of the 13 % decrease in fisher-price and thomas & friends gross sales , 6 % was due to lower sales of fisher-price infant products and 5 % was due to lower sales of thomas & friends products . the 14 % increase in barbie gross sales was primarily driven by positive pos brand momentum . the 16 % decrease in toy box gross sales was due to lower sales of toy box partner brands and toy box owned brands products . of the 23 % decrease in toy box partner brands gross sales , 24 % was due to lower sales of cars products , primarily as a result of the 2017 cars 3 theatrical release , 5 % was due to lower sales of dc comics action figures products , and 5 % was due to lower sales of dc comics superhero girls products , partially offset by initial sales of jurassic world products of 21 % as a result of the 2018 theatrical release of jurassic world : fallen kingdom . of the 10 % decrease in toy box owned brands gross sales , 8 % was due to lower sales of mega products . cost of sales cost of sales as a percentage of net sales was 60.2 % in 2018 , as compared to 62.7 % in 2017 . cost of sales decreased by $ 345.0 million , or 11 % , to $ 2.72 billion in 2018 from $ 3.06 billion in 2017 , as compared to an 8 % decrease in net sales . within cost of sales , product and other costs decreased by $ 295.0 million , or 12 % , to $ 2.15 billion in 2018 from $ 2.44 billion in 2017 ; freight and logistics expenses decreased by $ 29.5 million , or 8 % , to $ 344.2 million in 2018 from $ 373.7 million in 2017 ; and royalty expenses decreased by $ 20.5 million , or 8 % , to $ 224.0 million in 2018 from $ 244.5 million in 2017 . gross margin gross margin increased to 39.8 % in 2018 from 37.3 % in 2017 . the increase in gross margin was primarily driven by structural simplification savings and lower obsolescence expense , partially offset by input cost inflation of raw materials and plant labor . advertising and promotion expenses advertising and promotion expenses primarily consist of : ( i ) media costs , which primarily include the media , planning , and buying fees for television , print , and online advertisements , ( ii ) non-media costs , which primarily include commercial and website production , merchandising , and promotional costs , ( iii ) retail advertising costs , which primarily include consumer direct catalogs , newspaper inserts , fliers , and mailers , and ( iv ) generic advertising costs , which primarily include trade show costs . advertising and promotion expenses as a percentage of net sales decreased to 11.7 % in 2018 from 13.2 % in 2017 , primarily driven by structural simplification savings of approximately $ 30 million . other selling and administrative expenses other selling and administrative expenses were $ 1.50 billion , or 33.4 % of net sales , in 2018 , as compared to $ 1.52 billion , or 31.1 % of net sales , in 2017 . the decrease in other selling and administrative expenses was primarily driven by structural simplification savings of approximately $ 165 million , substantially offset by higher incentive compensation expense of approximately $ 65 million , higher severance and restructuring costs of approximately $ 39 million , and bad debt expense , net , of approximately $ 32 million related to the toys `` r `` us liquidation in 2018. interest expense interest expense was $ 181.9 million in 2018 , as compared to $ 105.2 million in 2017. the increase in interest expense was due to higher interest rates on outstanding debt and higher outstanding borrowings throughout 2018. other non-operating expense , net other non-operating expense , net , was $ 7.3 million in 2018 , as compared to $ 68.1 million in 2017 . the decrease in other non-operating expense , net , was primarily driven by a $ 59.0 million loss related to the discontinuation of mattel 's venezuelan operations in the fourth quarter of 2017. see item 7a `` quantitative and qualitative disclosures about market risk—venezuelan operations `` for more information . 29 provision for income taxes mattel 's provision for income taxes was $ 111.7 million in 2018 , as compared to $ 548.8 million in 2017 . the 2018 income tax provision included a $ 14.6 million expense related to changes to its indefinite reinvestment assertion and a $ 3.7 million expense related to the deemed repatriation of accumulated foreign earnings ( net of related valuation allowance change ) . the 2017 income tax provision included net tax expense of $ 454.4 million , primarily related to the establishment of a valuation allowance in the third quarter of 2017 on u.s. deferred tax assets that will likely not be realized and a provisional estimate of the impact of the u.s. tax act in the fourth quarter of 2017. north america segment the following table provides a summary of mattel 's gross sales by brand for the north america segment for 2018 and 2017 : replace_table_token_5_th gross sales for the north america segment were $ 2.42 billion in 2018 , a decrease of $ 114.6 million , or 5 % , as compared to $ 2.54 billion in 2017 , with an unfavorable impact from changes in currency exchange rates of 1 percentage point . story_separator_special_tag gross margins in 2017 decreased due to higher freight and logistics expenses , an unfavorable impact from toys `` r `` us filing for bankruptcy , and higher obsolescence expense . as a result of the toys `` r `` us net sales reversal , gross margin includes the cost of sales for the inventory sold , but excludes the corresponding net sales . north america segment income decreased by 83 % to $ 98.5 million in 2017 , as compared to $ 564.4 million in 2016 , primarily due to lower gross profit . 36 international segment the following table provides a summary of percentage changes in net sales within the international segment in 2017 versus 2016 : replace_table_token_13_th the following table provides a summary of percentage changes in gross sales within the international segment in 2017 versus 2016 : replace_table_token_14_th ( a ) mattel reorganized its regional reporting structure in the first quarter of 2018. as a result , global emerging markets , which was previously disclosed as asia pacific , includes russia , turkey , the middle east , and africa , which were previously included within europe . prior period amounts have been reclassified to conform to the current period presentation . the following table provides a summary of mattel 's gross sales by brand for the international segment for 2017 and 2016 : replace_table_token_15_th gross sales for the international segment were $ 2.50 billion in 2017 , an increase of $ 55.9 million or 2 % , as compared to $ 2.45 billion in 2016 , with a favorable impact from changes in currency exchange rates of 2 percentage points . the increase in the international segment gross sales was driven primarily by higher toy box sales . 37 the 5 % increase in toy box gross sales was primarily due to higher sales of toy box partner brands products , partially offset by lower sales of toy box owned brands products . of the 30 % increase in toy box partner brands gross sales , 46 % was due to higher sales of cars products , primarily as a result of the 2017 cars 3 theatrical release , partially offset by lower sales of partner brands action figures products of 9 % and lower sales of dc comics superhero girls products of 4 % . the 11 % decrease in toy box owned brands gross sales was primarily driven by lower sales of monster high products of 10 % . cost of sales increased 9 % in 2017 , as compared to flat net sales , primarily due to higher product and other costs and higher royalty expenses . gross margins in 2017 decreased as a result of unfavorable product mix and higher royalty expense . international segment loss was $ 5.9 million in 2017 , as compared to segment income of $ 291.2 million in 2016 , primarily due to lower gross profit and higher other selling and administrative expenses . american girl segment the following table provides a summary of mattel 's gross sales by brand for the american girl segment for 2017 and 2016 : replace_table_token_16_th gross sales for the american girl segment were $ 473.9 million in 2017 , a decrease of $ 116.0 million or 20 % , as compared to $ 589.9 million in 2016 . the decrease in american girl segment gross sales was primarily due to lower sales of american girl brands products as a result of lower sales across channels . cost of sales increased 14 % in 2017 , as compared to a 21 % decrease in net sales , primarily due to higher inventory obsolescence expense . gross margins in 2017 decreased as a result of higher obsolescence expense , unfavorable product mix , lower licensing income , and higher freight and logistics expenses . american girl segment loss was $ 73.0 million in 2017 , as compared to segment income of $ 106.4 million in 2016 , primarily due to lower gross profit and higher other selling and administrative expenses . cost savings programs structural simplification cost savings program during the third quarter of 2017 , mattel initiated its structural simplification cost savings program and expects to exceed $ 650 million in cost savings by 2020. the major initiatives of the structural simplification cost savings program include : reducing manufacturing complexity , including sku reduction , and implementing process improvement initiatives at owned and co-manufacturing facilities ; streamlining the organizational structure and reducing headcount expense to better align with the revenue base ; and optimizing advertising spend . mattel realized cost savings ( before severance , investments , and cost inflation ) of approximately $ 372 million ( approximately $ 177 million within gross profit , approximately $ 165 million within other selling and administrative expenses , and approximately $ 30 million within advertising and promotion expenses ) during the year ended december 31 , 2018 . mattel continues to assess opportunities for incremental savings through its expanded scope of work to optimize its manufacturing footprint and supply chain . 38 in connection with the structural simplification cost savings program , mattel recorded severance and other restructuring charges of $ 109.8 million during the year ended december 31 , 2018 . of the total charges recorded during the year ended december 31 , 2018 , $ 62.9 million relate to severance charges and $ 47.0 million relate to other restructuring costs . of the $ 47.0 million of other restructuring costs , $ 5.7 million relate to non-cash plant restructuring charges , and the remainder consists primarily of consulting fees . to date , mattel has recorded cumulative severance and other restructuring charges of $ 155.0 million and expects to incur total charges of approximately $ 200 million related to the structural simplification cost savings program . income taxes mattel 's provision for income taxes was $ 111.7 million in 2018 , as compared to $ 548.8 million in 2017 and $

liquidity and capital resources mattel 's primary sources of liquidity are its cash and equivalents balances , including access to earnings of its foreign subsidiaries , short-term borrowing facilities , including its $ 1.60 billion senior secured revolving credit facilities ( `` the senior secured revolving credit facilities '' ) , and issuances of long-term debt securities . cash flows from operating activities could be negatively impacted by decreased demand for mattel 's products , which could result from factors such as adverse economic conditions and changes in public and consumer preferences , or by increased costs associated with manufacturing and distribution of products or shortages in raw materials or component parts . additionally , mattel 's ability to issue long-term debt and obtain seasonal financing could be adversely affected by factors such as global economic crises and tight credit environments , an inability to meet its debt covenant requirements and its senior secured revolving credit facility covenants , or a deterioration of mattel 's credit ratings . mattel 's ability to conduct its operations could be negatively impacted should these or other adverse conditions affect its primary sources of liquidity . of mattel 's $ 594.5 million in cash and equivalents as of december 31 , 2018 , approximately $ 400 million is held by foreign subsidiaries . mattel has several liquidity options to fund its operations and obligations ; such obligations may include investing and financing activities such as debt service , dividends , and share repurchases . cash flows generated by its worldwide operations , the senior secured revolving credit facilities , alternative forms of financing , and access to capital markets are available to fund mattel 's operations and obligations . the u.s. tax act , enacted on december 22 , 2017 , provides mattel with a reduced cost to access the earnings of its foreign subsidiaries .


 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 mattel 's primary sources of liquidity are its cash and equivalents balances , including access to earnings of its foreign subsidiaries , short-term borrowing facilities , including its $ 1.60 billion senior secured revolving credit facilities ( `` the senior secured revolving credit facilities '' ) , and issuances of long-term debt securities . cash flows from operating activities could be negatively impacted by decreased demand for mattel 's products , which could result from factors such as adverse economic conditions and changes in public and consumer preferences , or by increased costs associated with manufacturing and distribution of products or shortages in raw materials or component parts . additionally , mattel 's ability to issue long-term debt and obtain seasonal financing could be adversely affected by factors such as global economic crises and tight credit environments , an inability to meet its debt covenant requirements and its senior secured revolving credit facility covenants , or a deterioration of mattel 's credit ratings . mattel 's ability to conduct its operations could be negatively impacted should these or other adverse conditions affect its primary sources of liquidity . of mattel 's $ 594.5 million in cash and equivalents as of december 31 , 2018 , approximately $ 400 million is held by foreign subsidiaries . mattel has several liquidity options to fund its operations and obligations ; such obligations may include investing and financing activities such as debt service , dividends , and share repurchases . cash flows generated by its worldwide operations , the senior secured revolving credit facilities , alternative forms of financing , and access to capital markets are available to fund mattel 's operations and obligations . the u.s. tax act , enacted on december 22 , 2017 , provides mattel with a reduced cost to access the earnings of its foreign subsidiaries .
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 Suspicious Activity Report : the 28 % decrease in american girl gross sales was primarily due to lower sales in proprietary retail and direct channels , a strategic shift away from the utilization of external distribution channels , and the sale of corolle in the first quarter of 2018. of the 13 % decrease in fisher-price and thomas & friends gross sales , 6 % was due to lower sales of fisher-price infant products and 5 % was due to lower sales of thomas & friends products . the 14 % increase in barbie gross sales was primarily driven by positive pos brand momentum . the 16 % decrease in toy box gross sales was due to lower sales of toy box partner brands and toy box owned brands products . of the 23 % decrease in toy box partner brands gross sales , 24 % was due to lower sales of cars products , primarily as a result of the 2017 cars 3 theatrical release , 5 % was due to lower sales of dc comics action figures products , and 5 % was due to lower sales of dc comics superhero girls products , partially offset by initial sales of jurassic world products of 21 % as a result of the 2018 theatrical release of jurassic world : fallen kingdom . of the 10 % decrease in toy box owned brands gross sales , 8 % was due to lower sales of mega products . cost of sales cost of sales as a percentage of net sales was 60.2 % in 2018 , as compared to 62.7 % in 2017 . cost of sales decreased by $ 345.0 million , or 11 % , to $ 2.72 billion in 2018 from $ 3.06 billion in 2017 , as compared to an 8 % decrease in net sales . within cost of sales , product and other costs decreased by $ 295.0 million , or 12 % , to $ 2.15 billion in 2018 from $ 2.44 billion in 2017 ; freight and logistics expenses decreased by $ 29.5 million , or 8 % , to $ 344.2 million in 2018 from $ 373.7 million in 2017 ; and royalty expenses decreased by $ 20.5 million , or 8 % , to $ 224.0 million in 2018 from $ 244.5 million in 2017 . gross margin gross margin increased to 39.8 % in 2018 from 37.3 % in 2017 . the increase in gross margin was primarily driven by structural simplification savings and lower obsolescence expense , partially offset by input cost inflation of raw materials and plant labor . advertising and promotion expenses advertising and promotion expenses primarily consist of : ( i ) media costs , which primarily include the media , planning , and buying fees for television , print , and online advertisements , ( ii ) non-media costs , which primarily include commercial and website production , merchandising , and promotional costs , ( iii ) retail advertising costs , which primarily include consumer direct catalogs , newspaper inserts , fliers , and mailers , and ( iv ) generic advertising costs , which primarily include trade show costs . advertising and promotion expenses as a percentage of net sales decreased to 11.7 % in 2018 from 13.2 % in 2017 , primarily driven by structural simplification savings of approximately $ 30 million . other selling and administrative expenses other selling and administrative expenses were $ 1.50 billion , or 33.4 % of net sales , in 2018 , as compared to $ 1.52 billion , or 31.1 % of net sales , in 2017 . the decrease in other selling and administrative expenses was primarily driven by structural simplification savings of approximately $ 165 million , substantially offset by higher incentive compensation expense of approximately $ 65 million , higher severance and restructuring costs of approximately $ 39 million , and bad debt expense , net , of approximately $ 32 million related to the toys `` r `` us liquidation in 2018. interest expense interest expense was $ 181.9 million in 2018 , as compared to $ 105.2 million in 2017. the increase in interest expense was due to higher interest rates on outstanding debt and higher outstanding borrowings throughout 2018. other non-operating expense , net other non-operating expense , net , was $ 7.3 million in 2018 , as compared to $ 68.1 million in 2017 . the decrease in other non-operating expense , net , was primarily driven by a $ 59.0 million loss related to the discontinuation of mattel 's venezuelan operations in the fourth quarter of 2017. see item 7a `` quantitative and qualitative disclosures about market risk—venezuelan operations `` for more information . 29 provision for income taxes mattel 's provision for income taxes was $ 111.7 million in 2018 , as compared to $ 548.8 million in 2017 . the 2018 income tax provision included a $ 14.6 million expense related to changes to its indefinite reinvestment assertion and a $ 3.7 million expense related to the deemed repatriation of accumulated foreign earnings ( net of related valuation allowance change ) . the 2017 income tax provision included net tax expense of $ 454.4 million , primarily related to the establishment of a valuation allowance in the third quarter of 2017 on u.s. deferred tax assets that will likely not be realized and a provisional estimate of the impact of the u.s. tax act in the fourth quarter of 2017. north america segment the following table provides a summary of mattel 's gross sales by brand for the north america segment for 2018 and 2017 : replace_table_token_5_th gross sales for the north america segment were $ 2.42 billion in 2018 , a decrease of $ 114.6 million , or 5 % , as compared to $ 2.54 billion in 2017 , with an unfavorable impact from changes in currency exchange rates of 1 percentage point . story_separator_special_tag gross margins in 2017 decreased due to higher freight and logistics expenses , an unfavorable impact from toys `` r `` us filing for bankruptcy , and higher obsolescence expense . as a result of the toys `` r `` us net sales reversal , gross margin includes the cost of sales for the inventory sold , but excludes the corresponding net sales . north america segment income decreased by 83 % to $ 98.5 million in 2017 , as compared to $ 564.4 million in 2016 , primarily due to lower gross profit . 36 international segment the following table provides a summary of percentage changes in net sales within the international segment in 2017 versus 2016 : replace_table_token_13_th the following table provides a summary of percentage changes in gross sales within the international segment in 2017 versus 2016 : replace_table_token_14_th ( a ) mattel reorganized its regional reporting structure in the first quarter of 2018. as a result , global emerging markets , which was previously disclosed as asia pacific , includes russia , turkey , the middle east , and africa , which were previously included within europe . prior period amounts have been reclassified to conform to the current period presentation . the following table provides a summary of mattel 's gross sales by brand for the international segment for 2017 and 2016 : replace_table_token_15_th gross sales for the international segment were $ 2.50 billion in 2017 , an increase of $ 55.9 million or 2 % , as compared to $ 2.45 billion in 2016 , with a favorable impact from changes in currency exchange rates of 2 percentage points . the increase in the international segment gross sales was driven primarily by higher toy box sales . 37 the 5 % increase in toy box gross sales was primarily due to higher sales of toy box partner brands products , partially offset by lower sales of toy box owned brands products . of the 30 % increase in toy box partner brands gross sales , 46 % was due to higher sales of cars products , primarily as a result of the 2017 cars 3 theatrical release , partially offset by lower sales of partner brands action figures products of 9 % and lower sales of dc comics superhero girls products of 4 % . the 11 % decrease in toy box owned brands gross sales was primarily driven by lower sales of monster high products of 10 % . cost of sales increased 9 % in 2017 , as compared to flat net sales , primarily due to higher product and other costs and higher royalty expenses . gross margins in 2017 decreased as a result of unfavorable product mix and higher royalty expense . international segment loss was $ 5.9 million in 2017 , as compared to segment income of $ 291.2 million in 2016 , primarily due to lower gross profit and higher other selling and administrative expenses . american girl segment the following table provides a summary of mattel 's gross sales by brand for the american girl segment for 2017 and 2016 : replace_table_token_16_th gross sales for the american girl segment were $ 473.9 million in 2017 , a decrease of $ 116.0 million or 20 % , as compared to $ 589.9 million in 2016 . the decrease in american girl segment gross sales was primarily due to lower sales of american girl brands products as a result of lower sales across channels . cost of sales increased 14 % in 2017 , as compared to a 21 % decrease in net sales , primarily due to higher inventory obsolescence expense . gross margins in 2017 decreased as a result of higher obsolescence expense , unfavorable product mix , lower licensing income , and higher freight and logistics expenses . american girl segment loss was $ 73.0 million in 2017 , as compared to segment income of $ 106.4 million in 2016 , primarily due to lower gross profit and higher other selling and administrative expenses . cost savings programs structural simplification cost savings program during the third quarter of 2017 , mattel initiated its structural simplification cost savings program and expects to exceed $ 650 million in cost savings by 2020. the major initiatives of the structural simplification cost savings program include : reducing manufacturing complexity , including sku reduction , and implementing process improvement initiatives at owned and co-manufacturing facilities ; streamlining the organizational structure and reducing headcount expense to better align with the revenue base ; and optimizing advertising spend . mattel realized cost savings ( before severance , investments , and cost inflation ) of approximately $ 372 million ( approximately $ 177 million within gross profit , approximately $ 165 million within other selling and administrative expenses , and approximately $ 30 million within advertising and promotion expenses ) during the year ended december 31 , 2018 . mattel continues to assess opportunities for incremental savings through its expanded scope of work to optimize its manufacturing footprint and supply chain . 38 in connection with the structural simplification cost savings program , mattel recorded severance and other restructuring charges of $ 109.8 million during the year ended december 31 , 2018 . of the total charges recorded during the year ended december 31 , 2018 , $ 62.9 million relate to severance charges and $ 47.0 million relate to other restructuring costs . of the $ 47.0 million of other restructuring costs , $ 5.7 million relate to non-cash plant restructuring charges , and the remainder consists primarily of consulting fees . to date , mattel has recorded cumulative severance and other restructuring charges of $ 155.0 million and expects to incur total charges of approximately $ 200 million related to the structural simplification cost savings program . income taxes mattel 's provision for income taxes was $ 111.7 million in 2018 , as compared to $ 548.8 million in 2017 and $

