we determine an estimated gift card breakage rate by continuously evaluating historical redemption data and the time when there is a remote likelihood that a gift card will be redeemed . revenue is recorded net of estimated and actual sales returns and deductions for coupon redemptions and other promotions . the estimated sales return reserve is based on projected merchandise returns determined through the use of historical average return percentages . we do not believe there is a reasonable likelihood that there will be a material change in the future estimates or assumptions we use to calculate our sales return reserve . however , if the actual rate of sales returns increases significantly , our operating results could be adversely affected . we recognize royalty revenue generated from our license or franchise agreements based upon a percentage of merchandise sales by the licensee/franchisee . this revenue is recorded as a component of total net revenue when earned . merchandise inventory . merchandise inventory is valued at the lower of average cost or market , utilizing the retail method . average cost includes merchandise design and sourcing costs and related expenses . we record merchandise receipts at the time which both title and risk of loss for the merchandise transfers to us . we review our inventory in order to identify slow-moving merchandise and generally use markdowns to clear merchandise . additionally , we estimate a markdown reserve for future planned markdowns related to current inventory . if inventory exceeds customer demand for reasons of style , seasonal adaptation , changes in customer preference , lack of consumer acceptance of fashion items , competition , or if it is determined that the inventory in stock will not sell at its currently ticketed price , additional markdowns may be necessary . these markdowns may have a material adverse impact on earnings , depending on the extent and amount of inventory affected . we estimate an inventory shrinkage reserve for anticipated losses for the period between the last physical count and the balance sheet date . the estimate for the shrinkage reserve is calculated based on historical percentages and can be affected by changes in merchandise mix and changes in actual shrinkage trends . we do not believe there is a reasonable likelihood that there will be a material change in the future estimates or assumptions we use to calculate our inventory shrinkage reserve . however , if actual physical inventory losses differ significantly from our estimate , our operating results could be adversely affected . asset impairment . in accordance with financial accounting standards board ( “ fasb ” ) accounting standard codification ( “ asc ” ) 360 , property , plant , and equipment ( “ asc 360 ” ) , we evaluate long-lived assets for impairment at the individual store level , which is the lowest level at which individual cash flows can be identified . impairment losses are recorded on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of the assets . when events such as these occur , the impaired assets are adjusted to their estimated fair value and an impairment loss is recorded separately as a component of operating income under loss on impairment of assets . our impairment loss calculations require management to make assumptions and to apply judgment to estimate future cash flows and asset fair values , including forecasting useful lives of the assets and selecting the discount rate that reflects the risk inherent in future cash flows . we do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions we use to calculate long-lived asset impairment losses . however , if actual results are not consistent with our estimates and assumptions , our operating results could be adversely affected . share-based payments . we account for share-based payments in accordance with the provisions of asc 718 , compensation – stock compensation ( “ asc 718 ” ) . to determine the fair value of our stock option awards , we use the black-scholes option pricing model , which requires management to apply judgment and make assumptions to determine the fair value of our awards . these assumptions include estimating the length of time employees will retain their vested stock options before exercising them ( the “ expected term ” ) and the estimated volatility of the price of our common stock over the expected term . 17 we calculate a weighted-average expected term based on historical experience . e xpected stock price volatility is based on a combination of historical volatility of our common stock and implied volatility . we choose to use a combination of historical and implied volatility as we believe that this combination is more representative of future stock price trends than historical volatility alone . changes in these assumptions can materially affect the estimate of the fair value of our share-based payments and the related amount recognized in our consolidated financial statements . income taxes . we calculate income taxes in accordance with asc 740 , income taxes ( “ asc 740 ” ) , which requires the use of the asset and liability method . under this method , deferred tax assets and liabilities are recognized based on the difference between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases as computed pursuant to asc 740. deferred tax assets and liabilities are measured using the tax rates , based on certain judgments regarding enacted tax laws and published guidance , in effect in the years when those temporary differences are expected to reverse . story_separator_special_tag fair value is defined under asc 820 as the exit price associated with the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date : 24 financial instruments valuation techniques used to measure fair value under asc 820 must maximize the use of observable inputs and minimize the use of unobservable inputs . in addition , asc 820 establishes this three-tier fair value hierarchy , which prioritizes the inputs used in measuring fair value . these tiers include : · level 1 — quoted prices in active markets for identical assets or liabilities . · level 2 — inputs other than level 1 that are observable , either directly or indirectly , such as quoted prices for similar assets or liabilities ; quoted prices in markets that are not active ; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities . · level 3 — unobservable inputs ( i.e . , projections , estimates , interpretations , etc . ) that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities . as of january 30 , 2016 and january 31 , 2015 , we held certain assets that are required to be measured at fair value on a recurring basis . these include cash equivalents and investments . in accordance with asc 820 , the following tables represent the fair value hierarchy for our financial assets ( cash equivalents and investments ) measured at fair value on a recurring basis as of january 30 , 2016 : replace_table_token_7_th in the event we hold level 3 investments , a discounted cash flow model is used to value those investments . there were no level 3 investments at january 30 , 2016. liquidity and capital resources our uses of cash are generally for working capital , the construction of new stores and remodeling of existing stores , information technology upgrades , distribution center improvements and expansion and the return of value to shareholders through the repurchase of common stock and the payment of dividends . historically , these uses of cash have been funded with cash flow from operations and existing cash on hand . also , we hold a five-year asset-based revolving credit facility that allows us to borrow up to $ 400 million . additionally , our uses of cash include the development of the aerie brand and our international expansion efforts . we expect to be able to fund our future cash requirements in north america through current cash holdings as well as cash generated from operations . in the future , we expect that our uses of cash will also include further expansion of our brands internationally . our growth strategy includes fortifying our brands and further international expansion or acquisitions . we periodically consider and evaluate these options to support future growth . in the event we do pursue such options , we could require additional equity or debt financing . there can be no assurance that we would be successful in closing any potential transaction , or that any endeavor we undertake would increase our profitability . the following sets forth certain measures of our liquidity : replace_table_token_8_th 25 the $ 109.3 million decrease in our working capital and corresponding decrease in the current ratio as of january 30 , 2016 compared to january 31 , 2015 , related primarily to our use of cash for investing and financing activities , offset by net income , net of non-cash adjustments . investing and financing activities primarily include capital expenditures , share repurchases , and the payment of dividends . in fiscal 2015 , we repurchased 15.6 million shares for $ 227.1 million and paid $ 0.50 per shar e of dividends for a total of $ 97.2 million . cash flows from operating activities of continuing operations net cash provided by operating activities totaled $ 341.9 million during fiscal 2015 , compared to $ 338.4 million during fiscal 2014 and $ 229.9 during fiscal 2013. our major source of cash from operations was merchandise sales . our primary outflows of cash from operations were for the payment of operational costs . the year-over-year increase in cash flows from operations this year was primarily driven by the increase in income from continuing operations , net of non-cash adjustments . cash flows from investing activities of continuing operations investing activities for fiscal 2015 included $ 153.3 million in capital expenditures for property and equipment , cash paid for our acquisition of tailgate clothing company of $ 10.4 million , and the purchase of intangible assets of $ 2.4 million , partially offset by $ 12.6 million of proceeds from the sale of the warrendale distribution center . investing activities for fiscal 2014 included $ 245.0 million in capital expenditures for property and equipment , partially offset by $ 10.0 million of proceeds from the sale of investments classified as available-for-sale . investing activities for fiscal 2013 included $ 278.5 million in capital expenditures for property and equipment , $ 20.8 million for the purchase of assets related to our international expansion strategy and $ 52.1 million of investment purchases partially offset by $ 162.8 million of proceeds from the sale of investments classified as available-for-sale . for further information on capital expenditures , refer to the capital expenditures for property and equipment caption below . cash flows from financing activities of continuing operations during fiscal 2015 , cash used for financing activities resulted primarily from $ 227.1 million for the repurchase of shares as part of our publicly announced repurchase program , $ 97.2 million for the payment of dividends and $ 5.2 million for the repurchase of common stock from employees for the payment of taxes in connection with the vesting of share-based payments . during fiscal 2014 , cash

cash flow and liquidity — our management evaluates cash flow from operations , investing and financing in determining the sufficiency of our cash position . cash flow from operations has historically been sufficient to cover our uses of cash . our management believes that cash flow from operations will be sufficient to fund anticipated capital expenditures and working capital requirements . our goals are to drive improvements to our gross profit performance , bring greater consistency to our results and deliver profitable growth over the long term . results of operations overview our fiscal 2015 performance was strong , in a challenging retail environment . we executed on our key priorities aimed at achieving sales and earnings growth . specifically , we made improvements to the merchandise by refocusing on innovation , quality and more compelling styles . both american eagle and aerie delivered increases in sales and profitability . we achieved higher average selling prices and fewer markdowns . aeo 's digital business was particularly strong and the business benefited from the utilization of advances in omni-channel tools . inventories and expenses were well managed throughout the year . we ended the year with $ 260.1 million in cash and no long-term debt . cash flow from operations for the year was strong and allowed for the repurchase of 15.6 million shares for $ 227.1 million . total net revenue for the year increased 7 % to $ 3.522 billion , compared to $ 3.283 billion last year . total comparable sales increased 7 % . by brand , american eagle outfitters ' comparable sales rose 7 % and aerie increased 20 % . consolidated gross margin increased 180 basis points to 37.0 % , compared to 35.2 % last year . income from continuing operations was $ 1.09 per diluted share this year , compared to $ 0.46 per diluted share last year . on an adjusted basis , income from continuing operations last year was $ 0.63 per diluted share , which excludes a ( $ 0.17 ) per diluted share impact from impairment and restructuring charges .


 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.
     ```cash flow and liquidity — our management evaluates cash flow from operations , investing and financing in determining the sufficiency of our cash position . cash flow from operations has historically been sufficient to cover our uses of cash . our management believes that cash flow from operations will be sufficient to fund anticipated capital expenditures and working capital requirements . our goals are to drive improvements to our gross profit performance , bring greater consistency to our results and deliver profitable growth over the long term . results of operations overview our fiscal 2015 performance was strong , in a challenging retail environment . we executed on our key priorities aimed at achieving sales and earnings growth . specifically , we made improvements to the merchandise by refocusing on innovation , quality and more compelling styles . both american eagle and aerie delivered increases in sales and profitability . we achieved higher average selling prices and fewer markdowns . aeo 's digital business was particularly strong and the business benefited from the utilization of advances in omni-channel tools . inventories and expenses were well managed throughout the year . we ended the year with $ 260.1 million in cash and no long-term debt . cash flow from operations for the year was strong and allowed for the repurchase of 15.6 million shares for $ 227.1 million . total net revenue for the year increased 7 % to $ 3.522 billion , compared to $ 3.283 billion last year . total comparable sales increased 7 % . by brand , american eagle outfitters ' comparable sales rose 7 % and aerie increased 20 % . consolidated gross margin increased 180 basis points to 37.0 % , compared to 35.2 % last year . income from continuing operations was $ 1.09 per diluted share this year , compared to $ 0.46 per diluted share last year . on an adjusted basis , income from continuing operations last year was $ 0.63 per diluted share , which excludes a ( $ 0.17 ) per diluted share impact from impairment and restructuring charges .
```    
 Suspicious Activity Report : we determine an estimated gift card breakage rate by continuously evaluating historical redemption data and the time when there is a remote likelihood that a gift card will be redeemed . revenue is recorded net of estimated and actual sales returns and deductions for coupon redemptions and other promotions . the estimated sales return reserve is based on projected merchandise returns determined through the use of historical average return percentages . we do not believe there is a reasonable likelihood that there will be a material change in the future estimates or assumptions we use to calculate our sales return reserve . however , if the actual rate of sales returns increases significantly , our operating results could be adversely affected . we recognize royalty revenue generated from our license or franchise agreements based upon a percentage of merchandise sales by the licensee/franchisee . this revenue is recorded as a component of total net revenue when earned . merchandise inventory . merchandise inventory is valued at the lower of average cost or market , utilizing the retail method . average cost includes merchandise design and sourcing costs and related expenses . we record merchandise receipts at the time which both title and risk of loss for the merchandise transfers to us . we review our inventory in order to identify slow-moving merchandise and generally use markdowns to clear merchandise . additionally , we estimate a markdown reserve for future planned markdowns related to current inventory . if inventory exceeds customer demand for reasons of style , seasonal adaptation , changes in customer preference , lack of consumer acceptance of fashion items , competition , or if it is determined that the inventory in stock will not sell at its currently ticketed price , additional markdowns may be necessary . these markdowns may have a material adverse impact on earnings , depending on the extent and amount of inventory affected . we estimate an inventory shrinkage reserve for anticipated losses for the period between the last physical count and the balance sheet date . the estimate for the shrinkage reserve is calculated based on historical percentages and can be affected by changes in merchandise mix and changes in actual shrinkage trends . we do not believe there is a reasonable likelihood that there will be a material change in the future estimates or assumptions we use to calculate our inventory shrinkage reserve . however , if actual physical inventory losses differ significantly from our estimate , our operating results could be adversely affected . asset impairment . in accordance with financial accounting standards board ( “ fasb ” ) accounting standard codification ( “ asc ” ) 360 , property , plant , and equipment ( “ asc 360 ” ) , we evaluate long-lived assets for impairment at the individual store level , which is the lowest level at which individual cash flows can be identified . impairment losses are recorded on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of the assets . when events such as these occur , the impaired assets are adjusted to their estimated fair value and an impairment loss is recorded separately as a component of operating income under loss on impairment of assets . our impairment loss calculations require management to make assumptions and to apply judgment to estimate future cash flows and asset fair values , including forecasting useful lives of the assets and selecting the discount rate that reflects the risk inherent in future cash flows . we do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions we use to calculate long-lived asset impairment losses . however , if actual results are not consistent with our estimates and assumptions , our operating results could be adversely affected . share-based payments . we account for share-based payments in accordance with the provisions of asc 718 , compensation – stock compensation ( “ asc 718 ” ) . to determine the fair value of our stock option awards , we use the black-scholes option pricing model , which requires management to apply judgment and make assumptions to determine the fair value of our awards . these assumptions include estimating the length of time employees will retain their vested stock options before exercising them ( the “ expected term ” ) and the estimated volatility of the price of our common stock over the expected term . 17 we calculate a weighted-average expected term based on historical experience . e xpected stock price volatility is based on a combination of historical volatility of our common stock and implied volatility . we choose to use a combination of historical and implied volatility as we believe that this combination is more representative of future stock price trends than historical volatility alone . changes in these assumptions can materially affect the estimate of the fair value of our share-based payments and the related amount recognized in our consolidated financial statements . income taxes . we calculate income taxes in accordance with asc 740 , income taxes ( “ asc 740 ” ) , which requires the use of the asset and liability method . under this method , deferred tax assets and liabilities are recognized based on the difference between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases as computed pursuant to asc 740. deferred tax assets and liabilities are measured using the tax rates , based on certain judgments regarding enacted tax laws and published guidance , in effect in the years when those temporary differences are expected to reverse . story_separator_special_tag fair value is defined under asc 820 as the exit price associated with the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date : 24 financial instruments valuation techniques used to measure fair value under asc 820 must maximize the use of observable inputs and minimize the use of unobservable inputs . in addition , asc 820 establishes this three-tier fair value hierarchy , which prioritizes the inputs used in measuring fair value . these tiers include : · level 1 — quoted prices in active markets for identical assets or liabilities . · level 2 — inputs other than level 1 that are observable , either directly or indirectly , such as quoted prices for similar assets or liabilities ; quoted prices in markets that are not active ; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities . · level 3 — unobservable inputs ( i.e . , projections , estimates , interpretations , etc . ) that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities . as of january 30 , 2016 and january 31 , 2015 , we held certain assets that are required to be measured at fair value on a recurring basis . these include cash equivalents and investments . in accordance with asc 820 , the following tables represent the fair value hierarchy for our financial assets ( cash equivalents and investments ) measured at fair value on a recurring basis as of january 30 , 2016 : replace_table_token_7_th in the event we hold level 3 investments , a discounted cash flow model is used to value those investments . there were no level 3 investments at january 30 , 2016. liquidity and capital resources our uses of cash are generally for working capital , the construction of new stores and remodeling of existing stores , information technology upgrades , distribution center improvements and expansion and the return of value to shareholders through the repurchase of common stock and the payment of dividends . historically , these uses of cash have been funded with cash flow from operations and existing cash on hand . also , we hold a five-year asset-based revolving credit facility that allows us to borrow up to $ 400 million . additionally , our uses of cash include the development of the aerie brand and our international expansion efforts . we expect to be able to fund our future cash requirements in north america through current cash holdings as well as cash generated from operations . in the future , we expect that our uses of cash will also include further expansion of our brands internationally . our growth strategy includes fortifying our brands and further international expansion or acquisitions . we periodically consider and evaluate these options to support future growth . in the event we do pursue such options , we could require additional equity or debt financing . there can be no assurance that we would be successful in closing any potential transaction , or that any endeavor we undertake would increase our profitability . the following sets forth certain measures of our liquidity : replace_table_token_8_th 25 the $ 109.3 million decrease in our working capital and corresponding decrease in the current ratio as of january 30 , 2016 compared to january 31 , 2015 , related primarily to our use of cash for investing and financing activities , offset by net income , net of non-cash adjustments . investing and financing activities primarily include capital expenditures , share repurchases , and the payment of dividends . in fiscal 2015 , we repurchased 15.6 million shares for $ 227.1 million and paid $ 0.50 per shar e of dividends for a total of $ 97.2 million . cash flows from operating activities of continuing operations net cash provided by operating activities totaled $ 341.9 million during fiscal 2015 , compared to $ 338.4 million during fiscal 2014 and $ 229.9 during fiscal 2013. our major source of cash from operations was merchandise sales . our primary outflows of cash from operations were for the payment of operational costs . the year-over-year increase in cash flows from operations this year was primarily driven by the increase in income from continuing operations , net of non-cash adjustments . cash flows from investing activities of continuing operations investing activities for fiscal 2015 included $ 153.3 million in capital expenditures for property and equipment , cash paid for our acquisition of tailgate clothing company of $ 10.4 million , and the purchase of intangible assets of $ 2.4 million , partially offset by $ 12.6 million of proceeds from the sale of the warrendale distribution center . investing activities for fiscal 2014 included $ 245.0 million in capital expenditures for property and equipment , partially offset by $ 10.0 million of proceeds from the sale of investments classified as available-for-sale . investing activities for fiscal 2013 included $ 278.5 million in capital expenditures for property and equipment , $ 20.8 million for the purchase of assets related to our international expansion strategy and $ 52.1 million of investment purchases partially offset by $ 162.8 million of proceeds from the sale of investments classified as available-for-sale . for further information on capital expenditures , refer to the capital expenditures for property and equipment caption below . cash flows from financing activities of continuing operations during fiscal 2015 , cash used for financing activities resulted primarily from $ 227.1 million for the repurchase of shares as part of our publicly announced repurchase program , $ 97.2 million for the payment of dividends and $ 5.2 million for the repurchase of common stock from employees for the payment of taxes in connection with the vesting of share-based payments . during fiscal 2014 , cash

