gross profit margins related to sales in our europe and asia businesses are historically higher than our americas business , primarily due to the following factors : ( i ) premiums charged in comparison to retail prices on products sold in the u.s. ; ( ii ) the product sales mix in our international businesses , in comparison to our americas business , is comprised more predominantly of watches and jewelry that generally produce higher gross profit margins than leather goods ; and ( iii ) the watch sales mix in our europe and asia businesses , in comparison to our americas business , are comprised more predominantly of higher priced licensed brands . our business is subject to the risks inherent in global sourcing supply . certain key components in our products come from limited sources of supply , which exposes us to potential supply shortages that could disrupt the manufacture and sale of our products . any interruption or delay in the supply of key components could significantly harm our ability to meet scheduled product deliveries to our customers and cause us to lose sales . interruptions or delays in supply may be caused by a number of factors that are outside of our and our contractor manufacturers ' control . effective for the fourth quarter of fiscal year 2018 , we made changes to the presentation of reportable segments to reflect changes in the way our chief operating decision maker evaluates the performance of our operations , develops strategy , and allocates capital resources . certain peripheral revenue generating activities related to our factories and intellectual property previously recorded within the americas , asia and europe segments have been reclassified to corporate . for comparison purposes , our historical segment disclosures have been recast to be consistent with the current presentation . this discussion should be read in conjunction with our consolidated financial statements and the related notes included therewith . 26 critical accounting policies and estimates the preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the u.s. requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period . on an ongoing basis , we evaluate our estimates and judgments , including those related to product returns , bad debt , inventories , long-lived asset impairment , impairment of goodwill and trade names , income taxes , warranty costs and litigation liabilities . we base our estimates and judgments on historical experience and on various other factors that we believe to be reasonable under the circumstances . our estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe the following critical accounting policies require the most significant estimates and judgments . product returns . we accept limited returns and may request that a customer return a product if we feel the customer has an excess of any style that we have identified as being a poor performer for that customer or geographic location . we monitor returns and maintain a provision for estimated returns based upon historical experience and any specific issues identified . while returns have historically been within our expectations and the provisions established , future return rates may differ from those experienced in the past . in the event that our products are performing poorly in the retail market and or we experience product damages or defects at a rate significantly higher than our historical rate , the resulting returns could have an adverse impact on the operating results for the period or periods in which such returns occur . if our allowance for product returns were to change by 10 % , the impact , excluding taxes , would have been an approximate $ 3.5 million change to net income ( loss ) . inventories . inventories are stated at the lower of cost and net realizable value , including any applicable duty and freight charges . we account for estimated obsolescence or unmarketable inventory equal to the difference between the average cost of inventory and the estimated net realizable value based upon assumptions about future demand , market conditions and available liquidation channels . if actual future demand or market conditions are less favorable than those projected by management , or if liquidation channels are not readily available , additional inventory valuation reductions may be required . we assess our off-price sales on an ongoing basis and update our estimates accordingly . revenue from sales of our products that are subject to inventory consignment agreements is recognized when title and risk of loss transfers , delivery has occurred and in an amount that reflects the consideration we expect to be entitled in exchange for the product . impairment of goodwill and trade names . in fiscal year 2017 , we determined goodwill was fully impaired and recognized a pre-tax impairment charge in operations of $ 202.3 million , $ 114.3 million and $ 42.9 million in the americas , europe and asia segments , respectively . we evaluate indefinite-lived trade names by comparing the fair value of the asset to its recorded value annually as of the end of the fiscal year and whenever events or conditions indicate that the carrying value of the trade name may not be recoverable . the fair value of the asset is estimated using discounted cash flow methodologies . for fiscal year 2018 , a discount rate of 12 % and a royalty rate of 3 % were used to estimate the skagen trade name fair value . story_separator_special_tag during fiscal year 2017 , our financial performance resulted in a loss of $ 9.87 per diluted share , including non-cash intangible asset impairment charges of $ 7.07 per diluted share , tax charges resulting from the tax act and valuation allowances of $ 2.20 per diluted share and restructuring charges of $ 0.65 per diluted share . currencies , including both the translation impact on operating earnings and the impact of foreign currency hedging contracts , favorably impacted the earnings comparison for fiscal year 2018 by $ 0.09 per diluted share . as we look at 2019 , our focus and priorities will remain consistent with the past year ; however , we will pivot appropriately to address the changing landscape . one priority that will not change is our focus on improving our profitability as well as strengthening our financial position to ensure the long-term success of the company . also , product innovation and differentiation are more important than ever , in both connected and traditional products . we will endeavor to maximize sales growth across multiple channels by adapting to the evolving shopping habits of our customers . while we are focused on driving sales through product innovation and sales channel optimization , we need to further transform our business model . part of that transformation has already taken place in our connected watch business . during the fourth quarter of fiscal year 2018 , we announced a strategic partnership with citizen watch co. , ltd. ( `` citizen `` ) to grow and expand the hybrid smartwatch category , an innovative product in our connected watch portfolio . under a licensing agreement , we provide citizen with our proprietary hybrid technology for use in both their brands and third-party watch brands . in january 2019 , we announced an agreement to transfer intellectual property related to smartwatch technology to google . both of these agreements are expected to drive innovation and reduce costs in our wearables business . we made significant progress on all fronts this year , but we continue to have further work ahead of us to address the structural changes in our categories and channels . we remain confident in our strategies and believe we have the talent , operating platform and balance sheet strength to achieve our goals . constant currency financial information as a multinational enterprise , we are exposed to changes in foreign currency exchange rates . the translation of the operations of our foreign-based entities from their local currencies into u.s. dollars is sensitive to changes in foreign currency exchange rates and can have a significant impact on our reported financial results . in general , our overall financial results are affected positively by a weaker u.s. dollar and are affected negatively by a stronger u.s. dollar as compared to the foreign currencies in which we conduct our business . as a result , in addition to presenting financial measures in accordance with accounting principles generally accepted in the united states of america ( “ gaap ” ) , our discussion contains references to constant currency financial information , which is a non-gaap financial measure . to calculate net sales on a constant currency basis , net sales for the current fiscal year for entities reporting in currencies other than the u.s. dollar are translated into u.s. dollars at the average rates during the comparable period of the prior fiscal year . we present constant currency information to provide investors with a basis to evaluate how our underlying business performed excluding the effects of foreign currency exchange rate fluctuations . the constant currency financial information presented herein should not be considered a substitute for , or superior to , the measures 30 of financial performance prepared in accordance with gaap . reconciliations between constant currency financial information and the most directly comparable gaap measure are included where applicable . fiscal year 2018 compared to fiscal year 2017 consolidated net sales . net sales decreased $ 246.7 million or 8.8 % ( 9.6 % in constant currency ) for fiscal year 2018 , as compared to fiscal year 2017 . global watch sales decreased $ 166.0 million or 7.5 % ( 8.2 % in constant currency ) , with increases in emporio armani and armani exchange more than offset by declines in most other brands in our portfolio . our jewelry category decreased $ 43.9 million or 20.7 % ( 22.3 % in constant currency ) , mostly as a result of a decrease in sales of michael kors and fossil branded products during fiscal year 2018 as compared to fiscal year 2017 . our leathers business decreased $ 36.1 million or 11.1 % ( 11.9 % in constant currency ) . net sales information by product category is summarized on a reported and constant currency basis as follows ( dollars in millions ) : replace_table_token_5_th the following table sets forth consolidated net sales by segment on a reported and constant currency basis ( dollars in millions ) : replace_table_token_6_th americas net sales . americas net sales decreased $ 139.9 million or 10.6 % ( 10.5 % in constant currency ) , largely driven by decreases in watches . during fiscal year 2018 , our multi-brand watch portfolio decreased $ 93.2 million or 9.0 % ( 8.9 % in constant currency ) , with declines across nearly all brands . the business exits of burberry and adidas , as well as store closures negatively impacted our watch performance . within fossil brand watches , connected watches nearly offset the declines in traditional watches . our leathers category decreased $ 26.4 million or 13.3 % ( 13.2 % in constant currency ) , mainly driven by fossil branded products and our jewelry business decreased $ 20.3 million or 28.8 % ( 28.9 % in constant currency ) , mostly driven by michael kors branded product . within the region , sales declined in the u.s. and canada , while sales

debt facilities on january 29 , 2018 , we and certain of our foreign subsidiaries entered into a second amended and restated credit agreement ( the `` credit agreement '' ) . the credit agreement provides for ( i ) revolving credit loans in the amount of $ 325 million , subject to a borrowing base ( as described below ) ( the `` revolving credit facility '' ) , with an up to $ 45.0 million subfacility for letters of credit , and ( ii ) a term loan in the amount of $ 425 million ( the `` term loan facility '' ) . the credit agreement expires and is due and payable on december 31 , 2020. availability under the revolving credit facility and any letters of credit are subject to a borrowing base equal to , ( a ) with respect to fossil group , inc. , the sum of ( i ) 85 % of eligible u.s. accounts receivable and 90 % of net u.s. credit card receivables ( less any dilution reserve ) , and ( ii ) the lesser of ( a ) 65 % of the lower of cost or market value of eligible u.s. finished good inventory and ( b ) 85 % of the appraised net orderly liquidation value of eligible u.s. finished goods inventory , minus ( iii ) the aggregate amount of reserves , if any , established by the administrative agent in good faith and in the exercise of reasonable business judgment from the perspective of a secured asset-based lender ; and ( b ) with respect to each non-u.s. borrower , the sum of ( i ) 85 % of eligible accounts receivable of the non-u.s. borrowers ( less any dilution reserve ) and ( ii ) the least of ( a ) 65 % of the lower of cost or market value of eligible foreign finished goods inventory of the non-u.s. borrowers , ( b ) 85 % of the appraised net orderly liquidation value of eligible foreign finished goods inventory of the non-u.s. borrowers , and ( c ) $ 185,000,000 minus ( iii ) the aggregate amount of reserves , if any , established by the administrative agent in good faith and in the exercise of reasonable business judgment from the perspective of a


 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.
     ```debt facilities on january 29 , 2018 , we and certain of our foreign subsidiaries entered into a second amended and restated credit agreement ( the `` credit agreement '' ) . the credit agreement provides for ( i ) revolving credit loans in the amount of $ 325 million , subject to a borrowing base ( as described below ) ( the `` revolving credit facility '' ) , with an up to $ 45.0 million subfacility for letters of credit , and ( ii ) a term loan in the amount of $ 425 million ( the `` term loan facility '' ) . the credit agreement expires and is due and payable on december 31 , 2020. availability under the revolving credit facility and any letters of credit are subject to a borrowing base equal to , ( a ) with respect to fossil group , inc. , the sum of ( i ) 85 % of eligible u.s. accounts receivable and 90 % of net u.s. credit card receivables ( less any dilution reserve ) , and ( ii ) the lesser of ( a ) 65 % of the lower of cost or market value of eligible u.s. finished good inventory and ( b ) 85 % of the appraised net orderly liquidation value of eligible u.s. finished goods inventory , minus ( iii ) the aggregate amount of reserves , if any , established by the administrative agent in good faith and in the exercise of reasonable business judgment from the perspective of a secured asset-based lender ; and ( b ) with respect to each non-u.s. borrower , the sum of ( i ) 85 % of eligible accounts receivable of the non-u.s. borrowers ( less any dilution reserve ) and ( ii ) the least of ( a ) 65 % of the lower of cost or market value of eligible foreign finished goods inventory of the non-u.s. borrowers , ( b ) 85 % of the appraised net orderly liquidation value of eligible foreign finished goods inventory of the non-u.s. borrowers , and ( c ) $ 185,000,000 minus ( iii ) the aggregate amount of reserves , if any , established by the administrative agent in good faith and in the exercise of reasonable business judgment from the perspective of a
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 Suspicious Activity Report : gross profit margins related to sales in our europe and asia businesses are historically higher than our americas business , primarily due to the following factors : ( i ) premiums charged in comparison to retail prices on products sold in the u.s. ; ( ii ) the product sales mix in our international businesses , in comparison to our americas business , is comprised more predominantly of watches and jewelry that generally produce higher gross profit margins than leather goods ; and ( iii ) the watch sales mix in our europe and asia businesses , in comparison to our americas business , are comprised more predominantly of higher priced licensed brands . our business is subject to the risks inherent in global sourcing supply . certain key components in our products come from limited sources of supply , which exposes us to potential supply shortages that could disrupt the manufacture and sale of our products . any interruption or delay in the supply of key components could significantly harm our ability to meet scheduled product deliveries to our customers and cause us to lose sales . interruptions or delays in supply may be caused by a number of factors that are outside of our and our contractor manufacturers ' control . effective for the fourth quarter of fiscal year 2018 , we made changes to the presentation of reportable segments to reflect changes in the way our chief operating decision maker evaluates the performance of our operations , develops strategy , and allocates capital resources . certain peripheral revenue generating activities related to our factories and intellectual property previously recorded within the americas , asia and europe segments have been reclassified to corporate . for comparison purposes , our historical segment disclosures have been recast to be consistent with the current presentation . this discussion should be read in conjunction with our consolidated financial statements and the related notes included therewith . 26 critical accounting policies and estimates the preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the u.s. requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period . on an ongoing basis , we evaluate our estimates and judgments , including those related to product returns , bad debt , inventories , long-lived asset impairment , impairment of goodwill and trade names , income taxes , warranty costs and litigation liabilities . we base our estimates and judgments on historical experience and on various other factors that we believe to be reasonable under the circumstances . our estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we believe the following critical accounting policies require the most significant estimates and judgments . product returns . we accept limited returns and may request that a customer return a product if we feel the customer has an excess of any style that we have identified as being a poor performer for that customer or geographic location . we monitor returns and maintain a provision for estimated returns based upon historical experience and any specific issues identified . while returns have historically been within our expectations and the provisions established , future return rates may differ from those experienced in the past . in the event that our products are performing poorly in the retail market and or we experience product damages or defects at a rate significantly higher than our historical rate , the resulting returns could have an adverse impact on the operating results for the period or periods in which such returns occur . if our allowance for product returns were to change by 10 % , the impact , excluding taxes , would have been an approximate $ 3.5 million change to net income ( loss ) . inventories . inventories are stated at the lower of cost and net realizable value , including any applicable duty and freight charges . we account for estimated obsolescence or unmarketable inventory equal to the difference between the average cost of inventory and the estimated net realizable value based upon assumptions about future demand , market conditions and available liquidation channels . if actual future demand or market conditions are less favorable than those projected by management , or if liquidation channels are not readily available , additional inventory valuation reductions may be required . we assess our off-price sales on an ongoing basis and update our estimates accordingly . revenue from sales of our products that are subject to inventory consignment agreements is recognized when title and risk of loss transfers , delivery has occurred and in an amount that reflects the consideration we expect to be entitled in exchange for the product . impairment of goodwill and trade names . in fiscal year 2017 , we determined goodwill was fully impaired and recognized a pre-tax impairment charge in operations of $ 202.3 million , $ 114.3 million and $ 42.9 million in the americas , europe and asia segments , respectively . we evaluate indefinite-lived trade names by comparing the fair value of the asset to its recorded value annually as of the end of the fiscal year and whenever events or conditions indicate that the carrying value of the trade name may not be recoverable . the fair value of the asset is estimated using discounted cash flow methodologies . for fiscal year 2018 , a discount rate of 12 % and a royalty rate of 3 % were used to estimate the skagen trade name fair value . story_separator_special_tag during fiscal year 2017 , our financial performance resulted in a loss of $ 9.87 per diluted share , including non-cash intangible asset impairment charges of $ 7.07 per diluted share , tax charges resulting from the tax act and valuation allowances of $ 2.20 per diluted share and restructuring charges of $ 0.65 per diluted share . currencies , including both the translation impact on operating earnings and the impact of foreign currency hedging contracts , favorably impacted the earnings comparison for fiscal year 2018 by $ 0.09 per diluted share . as we look at 2019 , our focus and priorities will remain consistent with the past year ; however , we will pivot appropriately to address the changing landscape . one priority that will not change is our focus on improving our profitability as well as strengthening our financial position to ensure the long-term success of the company . also , product innovation and differentiation are more important than ever , in both connected and traditional products . we will endeavor to maximize sales growth across multiple channels by adapting to the evolving shopping habits of our customers . while we are focused on driving sales through product innovation and sales channel optimization , we need to further transform our business model . part of that transformation has already taken place in our connected watch business . during the fourth quarter of fiscal year 2018 , we announced a strategic partnership with citizen watch co. , ltd. ( `` citizen `` ) to grow and expand the hybrid smartwatch category , an innovative product in our connected watch portfolio . under a licensing agreement , we provide citizen with our proprietary hybrid technology for use in both their brands and third-party watch brands . in january 2019 , we announced an agreement to transfer intellectual property related to smartwatch technology to google . both of these agreements are expected to drive innovation and reduce costs in our wearables business . we made significant progress on all fronts this year , but we continue to have further work ahead of us to address the structural changes in our categories and channels . we remain confident in our strategies and believe we have the talent , operating platform and balance sheet strength to achieve our goals . constant currency financial information as a multinational enterprise , we are exposed to changes in foreign currency exchange rates . the translation of the operations of our foreign-based entities from their local currencies into u.s. dollars is sensitive to changes in foreign currency exchange rates and can have a significant impact on our reported financial results . in general , our overall financial results are affected positively by a weaker u.s. dollar and are affected negatively by a stronger u.s. dollar as compared to the foreign currencies in which we conduct our business . as a result , in addition to presenting financial measures in accordance with accounting principles generally accepted in the united states of america ( “ gaap ” ) , our discussion contains references to constant currency financial information , which is a non-gaap financial measure . to calculate net sales on a constant currency basis , net sales for the current fiscal year for entities reporting in currencies other than the u.s. dollar are translated into u.s. dollars at the average rates during the comparable period of the prior fiscal year . we present constant currency information to provide investors with a basis to evaluate how our underlying business performed excluding the effects of foreign currency exchange rate fluctuations . the constant currency financial information presented herein should not be considered a substitute for , or superior to , the measures 30 of financial performance prepared in accordance with gaap . reconciliations between constant currency financial information and the most directly comparable gaap measure are included where applicable . fiscal year 2018 compared to fiscal year 2017 consolidated net sales . net sales decreased $ 246.7 million or 8.8 % ( 9.6 % in constant currency ) for fiscal year 2018 , as compared to fiscal year 2017 . global watch sales decreased $ 166.0 million or 7.5 % ( 8.2 % in constant currency ) , with increases in emporio armani and armani exchange more than offset by declines in most other brands in our portfolio . our jewelry category decreased $ 43.9 million or 20.7 % ( 22.3 % in constant currency ) , mostly as a result of a decrease in sales of michael kors and fossil branded products during fiscal year 2018 as compared to fiscal year 2017 . our leathers business decreased $ 36.1 million or 11.1 % ( 11.9 % in constant currency ) . net sales information by product category is summarized on a reported and constant currency basis as follows ( dollars in millions ) : replace_table_token_5_th the following table sets forth consolidated net sales by segment on a reported and constant currency basis ( dollars in millions ) : replace_table_token_6_th americas net sales . americas net sales decreased $ 139.9 million or 10.6 % ( 10.5 % in constant currency ) , largely driven by decreases in watches . during fiscal year 2018 , our multi-brand watch portfolio decreased $ 93.2 million or 9.0 % ( 8.9 % in constant currency ) , with declines across nearly all brands . the business exits of burberry and adidas , as well as store closures negatively impacted our watch performance . within fossil brand watches , connected watches nearly offset the declines in traditional watches . our leathers category decreased $ 26.4 million or 13.3 % ( 13.2 % in constant currency ) , mainly driven by fossil branded products and our jewelry business decreased $ 20.3 million or 28.8 % ( 28.9 % in constant currency ) , mostly driven by michael kors branded product . within the region , sales declined in the u.s. and canada , while sales

