selling and administrative expense for fiscal 2013 increased 1.6 % to $ 281.3 million , or 28.3 % of net sales , compared to $ 276.8 million , or 29.4 % of net sales , for fiscal 2012. the increase was primarily attributable to higher store-related expense , excluding occupancy , as a result of new store openings and increased employee labor and benefit-related expense . operating income for fiscal 2013 increased 82.6 % to $ 47.4 million , or 4.8 % of net sales , compared to $ 26.0 million , or 2.8 % of net sales , for fiscal 2012. the higher operating income primarily reflects higher net sales and higher merchandise margins , partially offset by increased selling and administrative expense . results of operations the following table sets forth selected items from our consolidated statements of operations by dollar and as a percentage of our net sales for the periods indicated : replace_table_token_8_th ( 1 ) fiscal 2013 , 2012 and 2011 each included 52 weeks . 28 ( 2 ) in fiscal 2013 , we recorded a pre-tax charge of $ 1.3 million reflecting an accrual for legal settlements , of which $ 0.3 million was classified as a reduction to net sales and $ 1.0 million was classified as selling and administrative expense . this charge reduced net income in fiscal 2013 by $ 0.8 million , or $ 0.04 per diluted share . ( 3 ) cost of sales includes the cost of merchandise , net of discounts or allowances earned , freight , inventory reserves , buying , distribution center expense , including depreciation , and store occupancy expense . store occupancy expense includes rent , amortization of leasehold improvements , common area maintenance , property taxes and insurance . ( 4 ) selling and administrative expense includes store-related expense , other than store occupancy expense , as well as advertising , depreciation and amortization , expense associated with operating our corporate headquarters and impairment charges , if any . ( 5 ) in fiscal 2012 , we recorded a pre-tax charge related to store closing costs of $ 1.2 million . this charge was included in selling and administrative expense , and reduced net income in fiscal 2012 by $ 0.8 million , or $ 0.03 per diluted share . ( 6 ) in fiscal 2013 , 2012 and 2011 , we recorded pre-tax non-cash impairment charges of $ 0.1 million , $ 0.2 million and $ 2.1 million , respectively , related to certain underperforming stores . these impairment charges are included in selling and administrative expense , and reduced net income in fiscal 2013 , 2012 and 2011 by $ 44,000 , or $ 0.00 per diluted share , $ 0.1 million , or $ 0.01 per diluted share , and $ 1.5 million , or $ 0.07 per diluted share , respectively . ( 7 ) same store sales for a period reflect net sales from stores that operated throughout the period as well as the full corresponding prior year period . fiscal 2013 compared to fiscal 2012 net sales . net sales increased by $ 52.8 million , or 5.6 % , to $ 993.3 million for fiscal 2013 from $ 940.5 million for fiscal 2012. the change in net sales was primarily attributable to the following : same store sales increased 3.9 % for fiscal 2013 versus fiscal 2012. we believe our higher same store sales reflected favorable customer response to changes in our merchandise offering and new marketing initiatives , higher demand for firearm and ammunition products , and improved sales of winter merchandise in the first quarter of fiscal 2013 as a result of more favorable weather compared to unseasonably warm winter weather experienced in the first quarter of fiscal 2012. same store sales for a period reflect net sales from stores that operated throughout the period as well as the full corresponding prior year period . added sales from new stores reflected the opening of 31 new stores since january 1 , 2012 , partially offset by a reduction in closed store sales . while we experienced a slight decline in customer transaction levels in our retail stores in fiscal 2013 when compared with fiscal 2012 , the average sale per transaction increased primarily as a result of changes in our sales mix and merchandise offering . store count at the end of fiscal 2013 was 429 versus 414 at the end of fiscal 2012. we opened 17 new stores , three of which were relocations , and closed two stores , both of which were relocations , in fiscal 2013. for fiscal 2014 , we expect to open approximately 15 net new stores . gross profit . gross profit increased by $ 25.9 million to $ 328.7 million in fiscal 2013 from $ 302.8 million in fiscal 2012. gross profit as a percentage of net sales in fiscal 2013 was 33.1 % compared with 32.2 % during fiscal 2012. the change in gross profit was primarily attributable to the following : net sales increased by $ 52.8 million in fiscal 2013 compared to the prior year . merchandise margins , which exclude buying , occupancy and distribution expense , increased 50 basis points versus fiscal 2012 , when merchandise margins decreased 24 basis points versus fiscal 2011. the improvement primarily reflected a sales mix shift to higher-margin winter product categories as a result of favorable winter weather in the first quarter of fiscal 2013 compared with the same period in fiscal 2012 , combined with sales of firearm and ammunition products at higher margins during fiscal 2013. store occupancy expense for fiscal 2013 increased by $ 3.5 million year over year due primarily to the increase in store count . store occupancy expense as a percentage of net sales in fiscal 2013 decreased by ten basis points compared with fiscal 2012 . story_separator_special_tag in fiscal 2011 and 2012 , we paid quarterly cash dividends of $ 0.075 per share of outstanding common stock , for an annual rate of $ 0.30 per share . in fiscal 2013 , we paid quarterly cash dividends of $ 0.10 per share of 35 outstanding common stock , for an annual rate of $ 0.40 per share . in the first quarter of fiscal 2014 , our board of directors declared a quarterly cash dividend of $ 0.10 per share of outstanding common stock , which will be paid on march 21 , 2014 to stockholders of record as of march 7 , 2014. as of december 29 , 2013 , a total of $ 9.6 million remained available for share repurchases under our share repurchase program . we consider several factors in determining when and if we make share repurchases including , among other things , our alternative cash requirements , existing business conditions and the market price of our stock . we believe we will be able to fund our cash requirements from cash and cash equivalents on hand , operating cash flows and borrowings from our revolving credit facility , for at least the next twelve months . however , our ability to satisfy our cash requirements depends upon our future performance , which in turn is subject to general economic conditions and regional risks , as well as financial , business and other factors affecting our operations , including factors beyond our control . there is no assurance that we will be able to generate sufficient cash flows or that we will be able to maintain our ability to borrow under our revolving credit facility . off-balance sheet arrangements and contractual obligations . our material off-balance sheet arrangements are operating lease obligations and letters of credit . we excluded these items from the balance sheet in accordance with accounting principles generally accepted in the united states of america ( gaap ) . a summary of our operating lease obligations and letter of credit commitments by fiscal year is included in the table below . additional information regarding our operating leases is available in item 2 , properties and note 8 , lease commitments , of the notes to consolidated financial statements included in item 8 , financial statements and supplementary data , of this annual report on form 10-k. our future obligations and commitments as of december 29 , 2013 , include the following : replace_table_token_13_th capital lease obligations , which include imputed interest , consist principally of leases for some of our distribution center delivery tractors , management information systems hardware and point-of-sale equipment for our stores . payments for these lease obligations are provided by cash flows generated from operations or through borrowings from our revolving credit facility . operating lease commitments consist principally of leases for our retail store facilities , distribution center and corporate office . these leases frequently include options which permit us to extend the terms beyond the initial fixed lease term . with respect to most of those leases , we intend to renegotiate those leases as they expire . 36 operating lease commitments also include a lease commitment for a building adjacent to our corporate office . the lease term for this property commenced in 2009 and the primary term expires on february 28 , 2019. in accordance with terms of the lease agreement , we are committed to the construction of a new retail building on the premises before the primary term expires in 2019. we are not yet able to determine the ultimate amount of the construction commitment . other occupancy expense includes estimated property maintenance fees and property taxes for our stores , distribution center and corporate headquarters . other liabilities consist principally of actuarially-determined reserve estimates related to self-insurance liabilities , a contractual obligation for the surviving spouse of robert w. miller , our co-founder , and asset retirement obligations related to the removal and retirement of leasehold improvements for certain stores upon termination of their leases . periodic interest payments on the credit agreement are not included in the preceding table because interest expense is based on variable indices , and the balance of our credit agreement fluctuates daily depending on operating , investing and financing cash flows . assuming no changes in our revolving credit facility debt or interest rates as of the fiscal 2013 year-end , our projected annual interest payments would be approximately $ 1.1 million . issued and outstanding letters of credit were $ 0.9 million at december 29 , 2013 , and were related primarily to securing insurance program liabilities . in the ordinary course of business , we enter into arrangements with vendors to purchase merchandise in advance of expected delivery . because most of these purchase orders do not contain any termination payments or other penalties if cancelled , they are not included as outstanding contractual obligations . critical accounting estimates our critical accounting estimates are included in our significant accounting policies as described in note 2 of the consolidated financial statements included in item 8 , financial statements and supplementary data , of this annual report on form 10-k. those consolidated financial statements were prepared in accordance with gaap . critical accounting estimates are those that we believe are most important to the portrayal of our financial condition and results of operations . the preparation of our consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenue and expense . our estimates are evaluated on an ongoing basis and drawn from historical experience , current trends and other factors that management believes to be relevant at the time our consolidated financial statements are prepared . actual results may differ from our estimates . management believes that the following accounting estimates reflect the more significant judgments and estimates we use in preparing our consolidated financial statements . valuation of merchandise inventories ,

liquidity and capital resources our principal liquidity requirements are for working capital , capital expenditures and cash dividends . we fund our liquidity requirements primarily through cash and cash equivalents on hand , cash flows from operations and borrowings from our revolving credit facility . we believe our cash and cash equivalents on hand , future cash flows from operations and borrowings from our revolving credit facility will be sufficient to fund our cash requirements for at least the next 12 months . we ended fiscal 2013 with $ 9.4 million of cash and cash equivalents compared with $ 7.6 million in fiscal 2012. after reducing our long-term debt by $ 16.0 million , or 25.2 % , during fiscal 2012 , we further decreased our long-term debt by $ 4.5 million , or 9.5 % , during fiscal 2013 to $ 43.0 million from $ 47.5 million at the end of fiscal 2012. the following table summarizes our cash flows from operating , investing and financing activities for each of the past three fiscal years : replace_table_token_9_th the seasonality of our business historically provides greater cash flows from operations during the holiday and winter selling season . we use operating cash flows and borrowings under our revolving credit facility to fund inventory increases in anticipation of the holidays and our inventory levels are normally at their highest in the months leading up to christmas . as holiday sales typically reduce inventory levels , this reduction , combined with net income , historically provides us with strong cash flows from operations at the end of our fiscal year . for fiscal 2013 , while we increased inventory purchases in the months leading up to christmas , weaker-than-anticipated sales during the fourth quarter of fiscal 2013 resulted in higher-than-expected inventory levels and lower operating cash flows in the fourth quarter of fiscal 2013. however , healthy net sales and net income for the full fiscal year 2013 contributed sufficient levels of operating cash flows that allowed us to pay down debt balances year over year .


 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 our principal liquidity requirements are for working capital , capital expenditures and cash dividends . we fund our liquidity requirements primarily through cash and cash equivalents on hand , cash flows from operations and borrowings from our revolving credit facility . we believe our cash and cash equivalents on hand , future cash flows from operations and borrowings from our revolving credit facility will be sufficient to fund our cash requirements for at least the next 12 months . we ended fiscal 2013 with $ 9.4 million of cash and cash equivalents compared with $ 7.6 million in fiscal 2012. after reducing our long-term debt by $ 16.0 million , or 25.2 % , during fiscal 2012 , we further decreased our long-term debt by $ 4.5 million , or 9.5 % , during fiscal 2013 to $ 43.0 million from $ 47.5 million at the end of fiscal 2012. the following table summarizes our cash flows from operating , investing and financing activities for each of the past three fiscal years : replace_table_token_9_th the seasonality of our business historically provides greater cash flows from operations during the holiday and winter selling season . we use operating cash flows and borrowings under our revolving credit facility to fund inventory increases in anticipation of the holidays and our inventory levels are normally at their highest in the months leading up to christmas . as holiday sales typically reduce inventory levels , this reduction , combined with net income , historically provides us with strong cash flows from operations at the end of our fiscal year . for fiscal 2013 , while we increased inventory purchases in the months leading up to christmas , weaker-than-anticipated sales during the fourth quarter of fiscal 2013 resulted in higher-than-expected inventory levels and lower operating cash flows in the fourth quarter of fiscal 2013. however , healthy net sales and net income for the full fiscal year 2013 contributed sufficient levels of operating cash flows that allowed us to pay down debt balances year over year .
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 Suspicious Activity Report : selling and administrative expense for fiscal 2013 increased 1.6 % to $ 281.3 million , or 28.3 % of net sales , compared to $ 276.8 million , or 29.4 % of net sales , for fiscal 2012. the increase was primarily attributable to higher store-related expense , excluding occupancy , as a result of new store openings and increased employee labor and benefit-related expense . operating income for fiscal 2013 increased 82.6 % to $ 47.4 million , or 4.8 % of net sales , compared to $ 26.0 million , or 2.8 % of net sales , for fiscal 2012. the higher operating income primarily reflects higher net sales and higher merchandise margins , partially offset by increased selling and administrative expense . results of operations the following table sets forth selected items from our consolidated statements of operations by dollar and as a percentage of our net sales for the periods indicated : replace_table_token_8_th ( 1 ) fiscal 2013 , 2012 and 2011 each included 52 weeks . 28 ( 2 ) in fiscal 2013 , we recorded a pre-tax charge of $ 1.3 million reflecting an accrual for legal settlements , of which $ 0.3 million was classified as a reduction to net sales and $ 1.0 million was classified as selling and administrative expense . this charge reduced net income in fiscal 2013 by $ 0.8 million , or $ 0.04 per diluted share . ( 3 ) cost of sales includes the cost of merchandise , net of discounts or allowances earned , freight , inventory reserves , buying , distribution center expense , including depreciation , and store occupancy expense . store occupancy expense includes rent , amortization of leasehold improvements , common area maintenance , property taxes and insurance . ( 4 ) selling and administrative expense includes store-related expense , other than store occupancy expense , as well as advertising , depreciation and amortization , expense associated with operating our corporate headquarters and impairment charges , if any . ( 5 ) in fiscal 2012 , we recorded a pre-tax charge related to store closing costs of $ 1.2 million . this charge was included in selling and administrative expense , and reduced net income in fiscal 2012 by $ 0.8 million , or $ 0.03 per diluted share . ( 6 ) in fiscal 2013 , 2012 and 2011 , we recorded pre-tax non-cash impairment charges of $ 0.1 million , $ 0.2 million and $ 2.1 million , respectively , related to certain underperforming stores . these impairment charges are included in selling and administrative expense , and reduced net income in fiscal 2013 , 2012 and 2011 by $ 44,000 , or $ 0.00 per diluted share , $ 0.1 million , or $ 0.01 per diluted share , and $ 1.5 million , or $ 0.07 per diluted share , respectively . ( 7 ) same store sales for a period reflect net sales from stores that operated throughout the period as well as the full corresponding prior year period . fiscal 2013 compared to fiscal 2012 net sales . net sales increased by $ 52.8 million , or 5.6 % , to $ 993.3 million for fiscal 2013 from $ 940.5 million for fiscal 2012. the change in net sales was primarily attributable to the following : same store sales increased 3.9 % for fiscal 2013 versus fiscal 2012. we believe our higher same store sales reflected favorable customer response to changes in our merchandise offering and new marketing initiatives , higher demand for firearm and ammunition products , and improved sales of winter merchandise in the first quarter of fiscal 2013 as a result of more favorable weather compared to unseasonably warm winter weather experienced in the first quarter of fiscal 2012. same store sales for a period reflect net sales from stores that operated throughout the period as well as the full corresponding prior year period . added sales from new stores reflected the opening of 31 new stores since january 1 , 2012 , partially offset by a reduction in closed store sales . while we experienced a slight decline in customer transaction levels in our retail stores in fiscal 2013 when compared with fiscal 2012 , the average sale per transaction increased primarily as a result of changes in our sales mix and merchandise offering . store count at the end of fiscal 2013 was 429 versus 414 at the end of fiscal 2012. we opened 17 new stores , three of which were relocations , and closed two stores , both of which were relocations , in fiscal 2013. for fiscal 2014 , we expect to open approximately 15 net new stores . gross profit . gross profit increased by $ 25.9 million to $ 328.7 million in fiscal 2013 from $ 302.8 million in fiscal 2012. gross profit as a percentage of net sales in fiscal 2013 was 33.1 % compared with 32.2 % during fiscal 2012. the change in gross profit was primarily attributable to the following : net sales increased by $ 52.8 million in fiscal 2013 compared to the prior year . merchandise margins , which exclude buying , occupancy and distribution expense , increased 50 basis points versus fiscal 2012 , when merchandise margins decreased 24 basis points versus fiscal 2011. the improvement primarily reflected a sales mix shift to higher-margin winter product categories as a result of favorable winter weather in the first quarter of fiscal 2013 compared with the same period in fiscal 2012 , combined with sales of firearm and ammunition products at higher margins during fiscal 2013. store occupancy expense for fiscal 2013 increased by $ 3.5 million year over year due primarily to the increase in store count . store occupancy expense as a percentage of net sales in fiscal 2013 decreased by ten basis points compared with fiscal 2012 . story_separator_special_tag in fiscal 2011 and 2012 , we paid quarterly cash dividends of $ 0.075 per share of outstanding common stock , for an annual rate of $ 0.30 per share . in fiscal 2013 , we paid quarterly cash dividends of $ 0.10 per share of 35 outstanding common stock , for an annual rate of $ 0.40 per share . in the first quarter of fiscal 2014 , our board of directors declared a quarterly cash dividend of $ 0.10 per share of outstanding common stock , which will be paid on march 21 , 2014 to stockholders of record as of march 7 , 2014. as of december 29 , 2013 , a total of $ 9.6 million remained available for share repurchases under our share repurchase program . we consider several factors in determining when and if we make share repurchases including , among other things , our alternative cash requirements , existing business conditions and the market price of our stock . we believe we will be able to fund our cash requirements from cash and cash equivalents on hand , operating cash flows and borrowings from our revolving credit facility , for at least the next twelve months . however , our ability to satisfy our cash requirements depends upon our future performance , which in turn is subject to general economic conditions and regional risks , as well as financial , business and other factors affecting our operations , including factors beyond our control . there is no assurance that we will be able to generate sufficient cash flows or that we will be able to maintain our ability to borrow under our revolving credit facility . off-balance sheet arrangements and contractual obligations . our material off-balance sheet arrangements are operating lease obligations and letters of credit . we excluded these items from the balance sheet in accordance with accounting principles generally accepted in the united states of america ( gaap ) . a summary of our operating lease obligations and letter of credit commitments by fiscal year is included in the table below . additional information regarding our operating leases is available in item 2 , properties and note 8 , lease commitments , of the notes to consolidated financial statements included in item 8 , financial statements and supplementary data , of this annual report on form 10-k. our future obligations and commitments as of december 29 , 2013 , include the following : replace_table_token_13_th capital lease obligations , which include imputed interest , consist principally of leases for some of our distribution center delivery tractors , management information systems hardware and point-of-sale equipment for our stores . payments for these lease obligations are provided by cash flows generated from operations or through borrowings from our revolving credit facility . operating lease commitments consist principally of leases for our retail store facilities , distribution center and corporate office . these leases frequently include options which permit us to extend the terms beyond the initial fixed lease term . with respect to most of those leases , we intend to renegotiate those leases as they expire . 36 operating lease commitments also include a lease commitment for a building adjacent to our corporate office . the lease term for this property commenced in 2009 and the primary term expires on february 28 , 2019. in accordance with terms of the lease agreement , we are committed to the construction of a new retail building on the premises before the primary term expires in 2019. we are not yet able to determine the ultimate amount of the construction commitment . other occupancy expense includes estimated property maintenance fees and property taxes for our stores , distribution center and corporate headquarters . other liabilities consist principally of actuarially-determined reserve estimates related to self-insurance liabilities , a contractual obligation for the surviving spouse of robert w. miller , our co-founder , and asset retirement obligations related to the removal and retirement of leasehold improvements for certain stores upon termination of their leases . periodic interest payments on the credit agreement are not included in the preceding table because interest expense is based on variable indices , and the balance of our credit agreement fluctuates daily depending on operating , investing and financing cash flows . assuming no changes in our revolving credit facility debt or interest rates as of the fiscal 2013 year-end , our projected annual interest payments would be approximately $ 1.1 million . issued and outstanding letters of credit were $ 0.9 million at december 29 , 2013 , and were related primarily to securing insurance program liabilities . in the ordinary course of business , we enter into arrangements with vendors to purchase merchandise in advance of expected delivery . because most of these purchase orders do not contain any termination payments or other penalties if cancelled , they are not included as outstanding contractual obligations . critical accounting estimates our critical accounting estimates are included in our significant accounting policies as described in note 2 of the consolidated financial statements included in item 8 , financial statements and supplementary data , of this annual report on form 10-k. those consolidated financial statements were prepared in accordance with gaap . critical accounting estimates are those that we believe are most important to the portrayal of our financial condition and results of operations . the preparation of our consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenue and expense . our estimates are evaluated on an ongoing basis and drawn from historical experience , current trends and other factors that management believes to be relevant at the time our consolidated financial statements are prepared . actual results may differ from our estimates . management believes that the following accounting estimates reflect the more significant judgments and estimates we use in preparing our consolidated financial statements . valuation of merchandise inventories ,

