for those transactions , revenue was deferred until the product was resold by the distributor and we determined that the final sales price to the distributor was fixed or determinable . for certain of our smaller distributors , we did not have similar ship and debit arrangements and the distributors were billed at a fixed upfront price . for those transactions , revenue was recognized upon delivery to the distributor based upon the distributor 's individual shipping terms , less an allowance for estimated returns , as the company determined that the revenue recognition criteria were met . in light of the fact that the distributor program had been declining as a portion of the overall business for several years , in fiscal year 2016 the company performed a review of all distributor arrangements in an effort to streamline our distribution program and reduce overhead costs . based upon this review , the company terminated its ship and debit arrangements with distributors during the fourth quarter of fiscal year 2016. subsequent to the termination of the ship and debit arrangements , the company began recognizing revenue for all distributors upon delivery to the distributor based upon the distributor 's individual shipping terms , less an allowance for estimated returns , as the company 's final sales price to the distributor was fixed and determinable and the company determined that all four criteria for revenue recognition were met . although the company terminated its ship and debit arrangements with all distributors along with certain ancillary agreements related to the ship and debit arrangements , the company continues to grant varying levels of stock rotation and price protection rights based on individual distributor agreements . to the extent these rights are implicated in any transaction with a distributor , we continue to evaluate their effect on when the revenue recognition criteria have been met . ◾ inventories are recorded at the lower of cost or net realizable value , following the adoption of asu 2015-11 ( as discussed below ) , with cost being determined on a first-in , first-out basis . we write down inventories to net realizable value based on forecasted demand while taking into account product release schedules and product life cycles , which may drive management judgment . we also review and write down inventory , as appropriate , based on the age and condition of the inventory . actual demand and market conditions may be different from those projected by management , which could have a material effect on our operating results and financial position . see note 2  summary of significant accounting policies of the notes to consolidated financial statements contained in item 8 . ◾ we evaluate the recoverability of property , plant , and equipment and intangible assets by testing for impairment losses on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets ' carrying amounts . an impairment loss is recognized in the event the carrying value of these assets exceeds the fair value of the applicable assets . impairment evaluations involve management estimates of asset useful lives and future cash flows . actual useful lives and cash flows could be different from those estimated page 26 of 80 by management , which could have a material effect on our operating results and financial position . see note 6  intangibles , net and goodwill of the notes to consolidated financial statements contained in item 8 . ◾ the company evaluates goodwill and other intangible assets . goodwill is recorded at the time of an acquisition and is calculated as the difference between the total consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired . the company tests goodwill and other intangible assets for impairment on an annual basis or more frequently if the company believes indicators of impairment exist . impairment evaluations involve management 's assessment of qualitative factors to determine whether it is more likely than not that goodwill and other intangible assets are impaired . if management concludes from its assessment of qualitative factors that it is more likely than not that impairment exists , then a quantitative impairment test will be performed involving management estimates of asset useful lives and future cash flows . significant management judgment is required in the forecasts of future operating results that are used in these evaluations . if our actual results , or the plans and estimates used in future impairment analyses , are lower than the original estimates used to assess the recoverability of these assets , we could incur additional impairment charges in a future period . the company has recorded no goodwill impairments in fiscal years 2017 , 2016 , and 2015. there were no material intangible asset impairments in fiscal years 2017 , 2016 , and 2015 . ◾ we are subject to the possibility of loss contingencies for various legal matters . see note 12  legal matters of the notes to consolidated financial statements contained in item 8 . we regularly evaluate current information available to us to determine whether any accruals should be made based on the status of the case , the results of the discovery process and other factors . if we ultimately determine that an accrual should be made for a legal matter , this accrual could have a material effect on our operating results and financial position and the ultimate outcome may be materially different than our estimate . recently issued accounting pronouncements in may 2014 , the financial accounting standards board ( fasb ) issued accounting standards update ( asu ) no . 2014-09 , revenue from contracts with customers ( asc topic 606 ) . the purpose of this asu is to converge revenue recognition requirements per gaap and international financial reporting standards ( ifrs ) . story_separator_special_tag the decrease in gross margin for fiscal year 2015 was primarily due to the increase in inventory write-downs compared to fiscal year 2014 , which had a 1.5 % negative impact on fiscal year 2015 margin . additionally , fiscal year 2015 gross margin was negatively affected by approximately 1 % due to the fair value adjustments made to inventory as a result of the acquisition . the company 's number of employees increased to 1,104 as of march 28 , 2015. the company achieved net income of $ 55.2 million in fiscal year 2015 , which included an income tax provision in the amount of $ 36.4 million . results of operations the following table summarizes the results of our operations for each of the past three fiscal years as a percentage of net sales . all percentage amounts were calculated using the underlying data , in thousands : replace_table_token_5_th page 31 of 80 net sales we report sales in two product categories : portable audio products and non-portable audio and other products . our sales by product line are as follows ( in thousands ) : replace_table_token_6_th net sales for fiscal year 2017 increased 32 percent , to $ 1.5 billion from $ 1.2 billion in fiscal year 2016. the increase in net sales reflects a $ 384.7 million increase in portable audio product sales and a $ 15.1 million decrease in non-portable audio and other product sales . the portable audio products group experienced an increase in net sales attributable to significant increases in the sales of smart codecs and boosted amplifiers for fiscal year 2017. non-portable audio and other product line sales of $ 165.1 million represented an 8 percent decrease from fiscal year 2016 sales of $ 180.2 million , which was primarily attributable to a decrease in sales of dac and surround codec products for the period . net sales for fiscal year 2016 increased 28 percent , to $ 1.2 billion from $ 916.6 million in fiscal year 2015. the increase in net sales reflected a $ 248.8 million increase in portable audio product sales and a $ 3.9 million increase in non-portable audio and other product sales . the portable audio products group experienced an increase in net sales attributable to significant increases in the sales of smart codecs and boosted amplifiers for fiscal year 2016 , which includes a full year revenue effect of the wolfson acquisition . non-portable audio and other product line sales of $ 180.2 million represented a 2 percent increase from fiscal year 2015 sales of $ 176.3 million , which was primarily attributable to an increase in adc and power meter products for the period . in addition , during fiscal year 2016 , the company realized an additional $ 5.4 million of net sales , primarily related to non-portable audio , due to the conversion to a point-of-purchase model for our larger distributors . sales to foreign customers , principally located in asia , including sales to u.s.-based customers that manufacture products at plants overseas , were approximately $ 1.5 billion in fiscal year 2017 , $ 1.1 billion in fiscal year 2016 , and $ 869.9 million in fiscal year 2015. sales to foreign customers located in asia , excluding japan , were 95 percent in net sales in fiscal year 2017 , 89 percent in net sales in fiscal year 2016 and 92 percent of net sales in fiscal year 2015. sales to foreign customers in japan and europe represented 2 percent of net sales in fiscal year 2017 , 4 percent of net sales in fiscal year 2016 and 3 percent of net sales in fiscal year 2015. our sales are denominated primarily in u.s. dollars . during fiscal year 2015 , we acquired foreign currency hedging contracts related to the acquisition . the contracts expired in fiscal year 2015. no foreign currency hedging contracts were entered into in fiscal year 2017 or 2016. gross margin overall gross margin of 49 percent for fiscal year 2017 reflects an increase from fiscal year 2016 gross margin of 47 percent . the increase was primarily attributable to supply chain efficiencies in the current fiscal year versus the prior year . changes in excess and obsolete inventory charges , including scrapped inventory , and sales of product written down in prior periods did not have a material impact on margin in fiscal year 2017. overall gross margin of 47 percent for fiscal year 2016 reflected an increase from fiscal year 2015 gross margin of 46 percent . the increase was primarily attributable to the absence of the fair market adjustments related to the acquisition discussed below , in the 2016 fiscal year versus fiscal year 2015. this contributed an approximate 1 % favorable impact to gross margin in fiscal year 2016. changes in excess and obsolete inventory charges , including scrapped inventory , and sales of product written down in prior periods did not have a material impact on margin in fiscal year 2016. page 32 of 80 research and development expenses fiscal year 2017 research and development expenses of $ 303.7 million reflect an increase of $ 34.5 million , or 13 percent , from fiscal year 2016. the increase was primarily attributable to a 16 percent increase in research and development headcount and the associated salary and employee-related expenses . the company also experienced higher facilities-related costs in the fiscal year 2017 versus fiscal year 2016 , partially offset by the adjustment to the contingent consideration liability discussed in note 4 , the uk 's research and development expenditure credit ( rdec ) , which went into effect beginning in fiscal year 2017 , and a sales tax refund in the third quarter of fiscal year 2017. fiscal year 2016 research and development expenses of $ 269.2 million reflected an increase of $ 71.3 million , or 36 percent , from fiscal year 2015. the increase was primarily attributable to a 20 percent

liquidity and capital resources in fiscal year 2017 , our net cash provided by operating activities was $ 369.8 million . the positive cash flow from operations was predominantly due to the cash components of our net income , offset by a $ 24.9 million page 34 of 80 increase in working capital , driven primarily by an increase in accounts receivable and inventories , partially offset by a decrease in payables for the year . in fiscal year 2016 , our net cash provided by operating activities was $ 149.0 million . the positive cash flow from operations was predominantly due to the cash components of our net income , offset by a $ 108.7 million increase in working capital , driven primarily by an increase in inventories and a decrease in accounts payable for the year . in fiscal year 2015 , our net cash provided by operating activities was $ 163.5 million . the positive cash flow from operations was predominantly due to the cash components of our net income , as well as a $ 17.3 million decrease in working capital , primarily due to a decrease in inventory and increase in accounts payable , offset by an increase in accounts receivable for the period . in fiscal year 2017 , the company used approximately $ 69.9 million in cash related to investing activities principally related to $ 18.6 million in net purchases of marketable securities , and capital expenditures and technology investments of $ 51.3 million . in fiscal year 2016 , the company received approximately $ 20.2 million in cash provided by investing activities , principally due to the net maturities and sales of marketable securities of $ 103.1 million , partially offset by $ 46.1 million in capital expenditures and technology investments , and acquisitions of $ 36.8 million . in fiscal year 2015 , approximately $ 324.4 million was used in investing activities , primarily due to the $ 444.1 million , net of cash obtained , used in conjunction with the wolfson acquisition . an additional use of cash for the period was the $ 36.7 million in capital expenditures and technology investments .


 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 fiscal year 2017 , our net cash provided by operating activities was $ 369.8 million . the positive cash flow from operations was predominantly due to the cash components of our net income , offset by a $ 24.9 million page 34 of 80 increase in working capital , driven primarily by an increase in accounts receivable and inventories , partially offset by a decrease in payables for the year . in fiscal year 2016 , our net cash provided by operating activities was $ 149.0 million . the positive cash flow from operations was predominantly due to the cash components of our net income , offset by a $ 108.7 million increase in working capital , driven primarily by an increase in inventories and a decrease in accounts payable for the year . in fiscal year 2015 , our net cash provided by operating activities was $ 163.5 million . the positive cash flow from operations was predominantly due to the cash components of our net income , as well as a $ 17.3 million decrease in working capital , primarily due to a decrease in inventory and increase in accounts payable , offset by an increase in accounts receivable for the period . in fiscal year 2017 , the company used approximately $ 69.9 million in cash related to investing activities principally related to $ 18.6 million in net purchases of marketable securities , and capital expenditures and technology investments of $ 51.3 million . in fiscal year 2016 , the company received approximately $ 20.2 million in cash provided by investing activities , principally due to the net maturities and sales of marketable securities of $ 103.1 million , partially offset by $ 46.1 million in capital expenditures and technology investments , and acquisitions of $ 36.8 million . in fiscal year 2015 , approximately $ 324.4 million was used in investing activities , primarily due to the $ 444.1 million , net of cash obtained , used in conjunction with the wolfson acquisition . an additional use of cash for the period was the $ 36.7 million in capital expenditures and technology investments .
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 Suspicious Activity Report : for those transactions , revenue was deferred until the product was resold by the distributor and we determined that the final sales price to the distributor was fixed or determinable . for certain of our smaller distributors , we did not have similar ship and debit arrangements and the distributors were billed at a fixed upfront price . for those transactions , revenue was recognized upon delivery to the distributor based upon the distributor 's individual shipping terms , less an allowance for estimated returns , as the company determined that the revenue recognition criteria were met . in light of the fact that the distributor program had been declining as a portion of the overall business for several years , in fiscal year 2016 the company performed a review of all distributor arrangements in an effort to streamline our distribution program and reduce overhead costs . based upon this review , the company terminated its ship and debit arrangements with distributors during the fourth quarter of fiscal year 2016. subsequent to the termination of the ship and debit arrangements , the company began recognizing revenue for all distributors upon delivery to the distributor based upon the distributor 's individual shipping terms , less an allowance for estimated returns , as the company 's final sales price to the distributor was fixed and determinable and the company determined that all four criteria for revenue recognition were met . although the company terminated its ship and debit arrangements with all distributors along with certain ancillary agreements related to the ship and debit arrangements , the company continues to grant varying levels of stock rotation and price protection rights based on individual distributor agreements . to the extent these rights are implicated in any transaction with a distributor , we continue to evaluate their effect on when the revenue recognition criteria have been met . ◾ inventories are recorded at the lower of cost or net realizable value , following the adoption of asu 2015-11 ( as discussed below ) , with cost being determined on a first-in , first-out basis . we write down inventories to net realizable value based on forecasted demand while taking into account product release schedules and product life cycles , which may drive management judgment . we also review and write down inventory , as appropriate , based on the age and condition of the inventory . actual demand and market conditions may be different from those projected by management , which could have a material effect on our operating results and financial position . see note 2  summary of significant accounting policies of the notes to consolidated financial statements contained in item 8 . ◾ we evaluate the recoverability of property , plant , and equipment and intangible assets by testing for impairment losses on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets ' carrying amounts . an impairment loss is recognized in the event the carrying value of these assets exceeds the fair value of the applicable assets . impairment evaluations involve management estimates of asset useful lives and future cash flows . actual useful lives and cash flows could be different from those estimated page 26 of 80 by management , which could have a material effect on our operating results and financial position . see note 6  intangibles , net and goodwill of the notes to consolidated financial statements contained in item 8 . ◾ the company evaluates goodwill and other intangible assets . goodwill is recorded at the time of an acquisition and is calculated as the difference between the total consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired . the company tests goodwill and other intangible assets for impairment on an annual basis or more frequently if the company believes indicators of impairment exist . impairment evaluations involve management 's assessment of qualitative factors to determine whether it is more likely than not that goodwill and other intangible assets are impaired . if management concludes from its assessment of qualitative factors that it is more likely than not that impairment exists , then a quantitative impairment test will be performed involving management estimates of asset useful lives and future cash flows . significant management judgment is required in the forecasts of future operating results that are used in these evaluations . if our actual results , or the plans and estimates used in future impairment analyses , are lower than the original estimates used to assess the recoverability of these assets , we could incur additional impairment charges in a future period . the company has recorded no goodwill impairments in fiscal years 2017 , 2016 , and 2015. there were no material intangible asset impairments in fiscal years 2017 , 2016 , and 2015 . ◾ we are subject to the possibility of loss contingencies for various legal matters . see note 12  legal matters of the notes to consolidated financial statements contained in item 8 . we regularly evaluate current information available to us to determine whether any accruals should be made based on the status of the case , the results of the discovery process and other factors . if we ultimately determine that an accrual should be made for a legal matter , this accrual could have a material effect on our operating results and financial position and the ultimate outcome may be materially different than our estimate . recently issued accounting pronouncements in may 2014 , the financial accounting standards board ( fasb ) issued accounting standards update ( asu ) no . 2014-09 , revenue from contracts with customers ( asc topic 606 ) . the purpose of this asu is to converge revenue recognition requirements per gaap and international financial reporting standards ( ifrs ) . story_separator_special_tag the decrease in gross margin for fiscal year 2015 was primarily due to the increase in inventory write-downs compared to fiscal year 2014 , which had a 1.5 % negative impact on fiscal year 2015 margin . additionally , fiscal year 2015 gross margin was negatively affected by approximately 1 % due to the fair value adjustments made to inventory as a result of the acquisition . the company 's number of employees increased to 1,104 as of march 28 , 2015. the company achieved net income of $ 55.2 million in fiscal year 2015 , which included an income tax provision in the amount of $ 36.4 million . results of operations the following table summarizes the results of our operations for each of the past three fiscal years as a percentage of net sales . all percentage amounts were calculated using the underlying data , in thousands : replace_table_token_5_th page 31 of 80 net sales we report sales in two product categories : portable audio products and non-portable audio and other products . our sales by product line are as follows ( in thousands ) : replace_table_token_6_th net sales for fiscal year 2017 increased 32 percent , to $ 1.5 billion from $ 1.2 billion in fiscal year 2016. the increase in net sales reflects a $ 384.7 million increase in portable audio product sales and a $ 15.1 million decrease in non-portable audio and other product sales . the portable audio products group experienced an increase in net sales attributable to significant increases in the sales of smart codecs and boosted amplifiers for fiscal year 2017. non-portable audio and other product line sales of $ 165.1 million represented an 8 percent decrease from fiscal year 2016 sales of $ 180.2 million , which was primarily attributable to a decrease in sales of dac and surround codec products for the period . net sales for fiscal year 2016 increased 28 percent , to $ 1.2 billion from $ 916.6 million in fiscal year 2015. the increase in net sales reflected a $ 248.8 million increase in portable audio product sales and a $ 3.9 million increase in non-portable audio and other product sales . the portable audio products group experienced an increase in net sales attributable to significant increases in the sales of smart codecs and boosted amplifiers for fiscal year 2016 , which includes a full year revenue effect of the wolfson acquisition . non-portable audio and other product line sales of $ 180.2 million represented a 2 percent increase from fiscal year 2015 sales of $ 176.3 million , which was primarily attributable to an increase in adc and power meter products for the period . in addition , during fiscal year 2016 , the company realized an additional $ 5.4 million of net sales , primarily related to non-portable audio , due to the conversion to a point-of-purchase model for our larger distributors . sales to foreign customers , principally located in asia , including sales to u.s.-based customers that manufacture products at plants overseas , were approximately $ 1.5 billion in fiscal year 2017 , $ 1.1 billion in fiscal year 2016 , and $ 869.9 million in fiscal year 2015. sales to foreign customers located in asia , excluding japan , were 95 percent in net sales in fiscal year 2017 , 89 percent in net sales in fiscal year 2016 and 92 percent of net sales in fiscal year 2015. sales to foreign customers in japan and europe represented 2 percent of net sales in fiscal year 2017 , 4 percent of net sales in fiscal year 2016 and 3 percent of net sales in fiscal year 2015. our sales are denominated primarily in u.s. dollars . during fiscal year 2015 , we acquired foreign currency hedging contracts related to the acquisition . the contracts expired in fiscal year 2015. no foreign currency hedging contracts were entered into in fiscal year 2017 or 2016. gross margin overall gross margin of 49 percent for fiscal year 2017 reflects an increase from fiscal year 2016 gross margin of 47 percent . the increase was primarily attributable to supply chain efficiencies in the current fiscal year versus the prior year . changes in excess and obsolete inventory charges , including scrapped inventory , and sales of product written down in prior periods did not have a material impact on margin in fiscal year 2017. overall gross margin of 47 percent for fiscal year 2016 reflected an increase from fiscal year 2015 gross margin of 46 percent . the increase was primarily attributable to the absence of the fair market adjustments related to the acquisition discussed below , in the 2016 fiscal year versus fiscal year 2015. this contributed an approximate 1 % favorable impact to gross margin in fiscal year 2016. changes in excess and obsolete inventory charges , including scrapped inventory , and sales of product written down in prior periods did not have a material impact on margin in fiscal year 2016. page 32 of 80 research and development expenses fiscal year 2017 research and development expenses of $ 303.7 million reflect an increase of $ 34.5 million , or 13 percent , from fiscal year 2016. the increase was primarily attributable to a 16 percent increase in research and development headcount and the associated salary and employee-related expenses . the company also experienced higher facilities-related costs in the fiscal year 2017 versus fiscal year 2016 , partially offset by the adjustment to the contingent consideration liability discussed in note 4 , the uk 's research and development expenditure credit ( rdec ) , which went into effect beginning in fiscal year 2017 , and a sales tax refund in the third quarter of fiscal year 2017. fiscal year 2016 research and development expenses of $ 269.2 million reflected an increase of $ 71.3 million , or 36 percent , from fiscal year 2015. the increase was primarily attributable to a 20 percent

