since sales of almonds comprise a significant percentage of our total net sales , we anticipate that lower selling prices will continue to result in a significant reduction in net sales in future comparisons until the impact of lower retail prices ultimately drives increased sales volume for almonds . we will continue to focus on seeking profitable business opportunities to further utilize our additional production capacity at our elgin site . we expect to maintain our recent level of promotional and advertising activity for our orchard valley harvest and fisher brands . we continue to see domestic sales and volume growth in our orchard valley harvest brand and expect to continue to focus on this portion of our branded business . we will continue to face the ongoing challenges specific to our business such as food safety and regulatory issues and the maintenance and growth of our customer base . see the information referenced in part i , item 1a  risk factors of this report for additional information about our risks , challenges and uncertainties . 22 annual highlights our net sales for fiscal 2017 decreased by $ 105.4 million , or 11.1 % , to $ 846.6 million compared to fiscal 2016. gross profit increased by $ 4.5 million , and our gross profit margin , as a percentage of net sales , increased to 16.8 % in fiscal 2017 from 14.4 % in fiscal 2016. total operating expenses for fiscal 2017 decreased by $ 2.6 million ; however , our operating expenses , as a percentage of net sales , were 9.9 % compared to 9.0 % of net sales in fiscal 2016. diluted earnings per share increased approximately 18.3 % compared to last fiscal year . our strong financial position allowed us to pay two special cash dividends with a combined total of $ 56.5 million . the total value of inventories on hand at the end of fiscal 2017 increased by $ 25.8 million , or 16.5 % , in comparison to the total value of inventories on hand at the end of fiscal 2016. we have seen a significant increase in acquisition cost for pecans in the 2016 crop year ( which falls into our 2017 fiscal year ) , as well as an increase in cashew acquisition costs . conversely , we have seen acquisition costs for domestic tree nuts such as almonds decrease in the 2016 crop year . while we completed our procurement of the current year crop of inshell walnuts during the second quarter of fiscal 2017 , the total payments to our walnut growers were not determined until the third quarter of fiscal 2017 , which is typical . the final prices paid to the walnut growers were based upon prevailing market prices and other factors , such as crop size and export demand . at june 29 , 2017 there are no amounts due to walnut growers . results of operations the following table sets forth the percentage relationship of certain items to net sales for the periods indicated and the percentage increase or decrease of such items from fiscal 2017 to fiscal 2016 and from fiscal 2016 to fiscal 2015. replace_table_token_3_th fiscal 2017 compared to fiscal 2016 net sales our net sales decreased 11.1 % to $ 846.6 million for fiscal 2017 from $ 952.1 million for fiscal 2016. sales volume ( measured as pounds sold to customers ) decreased by 3.7 % for fiscal 2017 in comparison to sales volume for fiscal 2016. the decrease in net sales was primarily due to a 7.6 % decrease in the weighted average sales price per pound , which primarily occurred as a result of lower selling prices for almonds and walnuts . the following summarizes sales by product type as a percentage of total gross sales . the information is based upon gross sales , rather than net sales , because certain adjustments from gross sales to net sales , such as promotional discounts , are not allocable to product type . replace_table_token_4_th 23 the following table shows a comparison of net sales by distribution channel ( dollars in thousands ) : replace_table_token_5_th ( 1 ) sales of branded products were approximately 38 % and 36 % of total consumer channel sales during fiscal 2017 and 2016 , respectively . fisher branded products were approximately 85 % and 87 % of branded sales during fiscal 2017 and 2016 respectively , with branded produce products accounting for the remaining branded product sales . ( 2 ) fiscal 2016 information has been revised to conform with the current year presentation . in fiscal 2017 , we consolidated our bulk export business into our commercial ingredients channel and the remaining portion of our export business into our other sales channels . net sales in the consumer distribution channel decreased by 6.4 % in dollars , however , sales volume increased by 1.1 % in fiscal 2017 compared to fiscal 2016. the decrease in net sales was primarily due to a 7.4 % decrease in the weighted average sales price per pound , which primarily occurred as a result of lower selling prices for almonds and walnuts . iri market data from june 2017 indicates that fisher recipe nuts continue to be the branded market share leader in the overall recipe nut category . fisher recipe nut sales volume increased 9.8 % from fiscal 2016 , primarily due to distribution gains with new customers , the introduction of larger package sizes for walnuts , and increased promotional activity . partially offsetting the sales volume increase noted above , sales volume for fisher snack nuts decreased 4.3 % , primarily as a result of decreased promotional activity . an increase in the combined sales volume of 23.1 % of orchard valley harvest and sunshine country produce products , due to increased merchandising activity , also contributed to the sales volume increase . story_separator_special_tag mortgage facility we are subject to interest rate resets for each of tranche a and tranche b. specifically , on march 1 , 2018 ( the tranche a reset date and the tranche b reset date ) and every two years thereafter , the mortgage lender may reset the interest rates for each of tranche a and tranche b , respectively , in its sole and absolute discretion . if the reset interest rate for tranche a is unacceptable to us and we ( i ) do not have sufficient funds to repay amounts due with respect to tranche a on the tranche a reset date , or ( ii ) are unable to refinance amounts due with respect to tranche a on the tranche a reset date on terms more favorable than the reset interest rates , then , depending on the extent of the changes in the reset interest rates , our interest expense would increase . 29 the mortgage facility matures on march 1 , 2023. tranche a under the mortgage facility accrues interest at a fixed interest rate of 7.63 % per annum , payable monthly . as mentioned above , such interest rate may be reset by the mortgage lender on the tranche a reset date . monthly principal payments in the amount of $ 0.2 million commenced on june 1 , 2008. tranche b under the mortgage facility accrues interest , as reset on march 1 , 2016 , at a floating rate of the greater of ( i ) one month libor plus 3.50 % per annum or ( ii ) 4.25 % , payable monthly ( the floating rate ) . the margin on such floating rate may be reset by the mortgage lender on each tranche b reset date ; provided , however , that the mortgage lender may also change the underlying index on each tranche b reset date occurring on or after march 1 , 2018. monthly principal payments in the amount of $ 0.1 million commenced on june 1 , 2008. we do not currently anticipate that any change in the floating rate or the underlying index will have a material adverse effect upon our business , financial condition or results of operations . the terms of the mortgage facility contain covenants that require us to maintain a specified net worth of $ 110.0 million and maintain the encumbered properties . the mortgage lender is entitled to require immediate repayment of our obligations under the mortgage facility in the event we default in the payments required under the mortgage facility , non-compliance with the covenants or upon the occurrence of certain other defaults by us under the mortgage facility . as of june 29 , 2017 , we were in compliance with all covenants under the mortgage facility . selma property in september 2006 , we sold our selma , texas properties ( the selma properties ) to two related party partnerships for $ 14.3 million and are leasing them back . the selling price was determined by an independent appraiser to be the fair market value which also approximated our carrying value . the lease for the selma properties has a ten-year term at a fair market value rent with three five-year renewal options . also , we currently have an option to purchase the selma properties from the partnerships at 95 % ( 100 % in certain circumstances ) of the then fair market value , but not less than the original $ 14.3 million purchase price . the provisions of the arrangement are not eligible for sale-leaseback accounting and the $ 14.3 million was recorded as a debt obligation . no gain or loss was recorded on the selma properties transaction . as of june 29 , 2017 , $ 11.1 million of the debt obligation was outstanding . in september 2015 , we exercised two five-year renewal options which extended the selma lease to september 18 , 2026 ( unless we purchase it before such date ) and reduced the base monthly lease amount we pay on the selma properties during the second quarter of fiscal 2017 . 30 off-balance sheet arrangements as of june 29 , 2017 , we were not involved in any off-balance sheet arrangements , as defined in item 303 ( a ) ( 4 ) ( ii ) of regulation s-k promulgated by the sec . contractual cash obligations at june 29 , 2017 , we had the following contractual cash obligations for long-term debt ( including scheduled interest payments ) , operating leases , the credit facility , purchase obligations , retirement plans and other long-term liabilities ( amounts in this subsection in thousands ) : replace_table_token_9_th ( 1 ) interest obligations on floating rate debt instruments are calculated using interest rates in effect at june 29 , 2017. see note 5 long-term debt of the notes to consolidated financial statements for further detail on the company 's long-term debt obligations . ( 2 ) the purchase obligations represent $ 177,842 of inventory purchase commitments ; however , these amounts exclude purchase commitments under walnut purchase agreements due to the uncertainty of pricing and quantity . ( 3 ) represents projected retirement obligations . see note 11-employee benefit plans and note 12-retirement plan of the notes to consolidated financial statements for further details . 31 critical accounting policies and estimates our financial statements are prepared in accordance with accounting principles generally accepted in the united states of america . the accounting policies as disclosed in the notes to consolidated financial statements are applied in the preparation of our financial statements and accounting for the underlying transactions and balances . the policies discussed below are considered by our management to be critical for an understanding of our financial statements because the application of these policies places the most significant demands on management 's judgment , with financial reporting results relying on estimation regarding the effect of matters that are

liquidity and capital resources general the primary uses of cash are to fund our current operations , fulfill contractual obligations , pursue our strategic plan and repay indebtedness . also , various uncertainties could result in additional uses of cash . the primary sources of cash are results of operations and availability under our credit agreement , dated february 7 , 2008 and subsequently amended most recently in july 2017 ( as amended , the credit facility ) , that provides a revolving loan commitment and letter of credit subfacility . we anticipate that expected net cash flow generated from operations and amounts available pursuant to the credit facility will be sufficient to fund our operations for the next twelve months . our available credit under our credit facility has allowed us to consummate business acquisitions , devote more funds to promote our branded products ( especially our fisher and orchard valley harvest brands ) , reinvest in the company through capital expenditures , develop new products , pay a special cash dividend the past five years , and explore other growth strategies outlined in our strategic plan . cash flows from operating activities have historically been driven by net income but are also significantly influenced by inventory requirements , which can change based upon fluctuations in both quantities and market prices of the various nuts and nut products we buy and sell . current market trends in nut prices and crop estimates also impact nut procurement . the following table sets forth certain cash flow information for the last three fiscal years ( dollars in thousands ) : replace_table_token_8_th operating activities .


 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 general the primary uses of cash are to fund our current operations , fulfill contractual obligations , pursue our strategic plan and repay indebtedness . also , various uncertainties could result in additional uses of cash . the primary sources of cash are results of operations and availability under our credit agreement , dated february 7 , 2008 and subsequently amended most recently in july 2017 ( as amended , the credit facility ) , that provides a revolving loan commitment and letter of credit subfacility . we anticipate that expected net cash flow generated from operations and amounts available pursuant to the credit facility will be sufficient to fund our operations for the next twelve months . our available credit under our credit facility has allowed us to consummate business acquisitions , devote more funds to promote our branded products ( especially our fisher and orchard valley harvest brands ) , reinvest in the company through capital expenditures , develop new products , pay a special cash dividend the past five years , and explore other growth strategies outlined in our strategic plan . cash flows from operating activities have historically been driven by net income but are also significantly influenced by inventory requirements , which can change based upon fluctuations in both quantities and market prices of the various nuts and nut products we buy and sell . current market trends in nut prices and crop estimates also impact nut procurement . the following table sets forth certain cash flow information for the last three fiscal years ( dollars in thousands ) : replace_table_token_8_th operating activities .
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 Suspicious Activity Report : since sales of almonds comprise a significant percentage of our total net sales , we anticipate that lower selling prices will continue to result in a significant reduction in net sales in future comparisons until the impact of lower retail prices ultimately drives increased sales volume for almonds . we will continue to focus on seeking profitable business opportunities to further utilize our additional production capacity at our elgin site . we expect to maintain our recent level of promotional and advertising activity for our orchard valley harvest and fisher brands . we continue to see domestic sales and volume growth in our orchard valley harvest brand and expect to continue to focus on this portion of our branded business . we will continue to face the ongoing challenges specific to our business such as food safety and regulatory issues and the maintenance and growth of our customer base . see the information referenced in part i , item 1a  risk factors of this report for additional information about our risks , challenges and uncertainties . 22 annual highlights our net sales for fiscal 2017 decreased by $ 105.4 million , or 11.1 % , to $ 846.6 million compared to fiscal 2016. gross profit increased by $ 4.5 million , and our gross profit margin , as a percentage of net sales , increased to 16.8 % in fiscal 2017 from 14.4 % in fiscal 2016. total operating expenses for fiscal 2017 decreased by $ 2.6 million ; however , our operating expenses , as a percentage of net sales , were 9.9 % compared to 9.0 % of net sales in fiscal 2016. diluted earnings per share increased approximately 18.3 % compared to last fiscal year . our strong financial position allowed us to pay two special cash dividends with a combined total of $ 56.5 million . the total value of inventories on hand at the end of fiscal 2017 increased by $ 25.8 million , or 16.5 % , in comparison to the total value of inventories on hand at the end of fiscal 2016. we have seen a significant increase in acquisition cost for pecans in the 2016 crop year ( which falls into our 2017 fiscal year ) , as well as an increase in cashew acquisition costs . conversely , we have seen acquisition costs for domestic tree nuts such as almonds decrease in the 2016 crop year . while we completed our procurement of the current year crop of inshell walnuts during the second quarter of fiscal 2017 , the total payments to our walnut growers were not determined until the third quarter of fiscal 2017 , which is typical . the final prices paid to the walnut growers were based upon prevailing market prices and other factors , such as crop size and export demand . at june 29 , 2017 there are no amounts due to walnut growers . results of operations the following table sets forth the percentage relationship of certain items to net sales for the periods indicated and the percentage increase or decrease of such items from fiscal 2017 to fiscal 2016 and from fiscal 2016 to fiscal 2015. replace_table_token_3_th fiscal 2017 compared to fiscal 2016 net sales our net sales decreased 11.1 % to $ 846.6 million for fiscal 2017 from $ 952.1 million for fiscal 2016. sales volume ( measured as pounds sold to customers ) decreased by 3.7 % for fiscal 2017 in comparison to sales volume for fiscal 2016. the decrease in net sales was primarily due to a 7.6 % decrease in the weighted average sales price per pound , which primarily occurred as a result of lower selling prices for almonds and walnuts . the following summarizes sales by product type as a percentage of total gross sales . the information is based upon gross sales , rather than net sales , because certain adjustments from gross sales to net sales , such as promotional discounts , are not allocable to product type . replace_table_token_4_th 23 the following table shows a comparison of net sales by distribution channel ( dollars in thousands ) : replace_table_token_5_th ( 1 ) sales of branded products were approximately 38 % and 36 % of total consumer channel sales during fiscal 2017 and 2016 , respectively . fisher branded products were approximately 85 % and 87 % of branded sales during fiscal 2017 and 2016 respectively , with branded produce products accounting for the remaining branded product sales . ( 2 ) fiscal 2016 information has been revised to conform with the current year presentation . in fiscal 2017 , we consolidated our bulk export business into our commercial ingredients channel and the remaining portion of our export business into our other sales channels . net sales in the consumer distribution channel decreased by 6.4 % in dollars , however , sales volume increased by 1.1 % in fiscal 2017 compared to fiscal 2016. the decrease in net sales was primarily due to a 7.4 % decrease in the weighted average sales price per pound , which primarily occurred as a result of lower selling prices for almonds and walnuts . iri market data from june 2017 indicates that fisher recipe nuts continue to be the branded market share leader in the overall recipe nut category . fisher recipe nut sales volume increased 9.8 % from fiscal 2016 , primarily due to distribution gains with new customers , the introduction of larger package sizes for walnuts , and increased promotional activity . partially offsetting the sales volume increase noted above , sales volume for fisher snack nuts decreased 4.3 % , primarily as a result of decreased promotional activity . an increase in the combined sales volume of 23.1 % of orchard valley harvest and sunshine country produce products , due to increased merchandising activity , also contributed to the sales volume increase . story_separator_special_tag mortgage facility we are subject to interest rate resets for each of tranche a and tranche b. specifically , on march 1 , 2018 ( the tranche a reset date and the tranche b reset date ) and every two years thereafter , the mortgage lender may reset the interest rates for each of tranche a and tranche b , respectively , in its sole and absolute discretion . if the reset interest rate for tranche a is unacceptable to us and we ( i ) do not have sufficient funds to repay amounts due with respect to tranche a on the tranche a reset date , or ( ii ) are unable to refinance amounts due with respect to tranche a on the tranche a reset date on terms more favorable than the reset interest rates , then , depending on the extent of the changes in the reset interest rates , our interest expense would increase . 29 the mortgage facility matures on march 1 , 2023. tranche a under the mortgage facility accrues interest at a fixed interest rate of 7.63 % per annum , payable monthly . as mentioned above , such interest rate may be reset by the mortgage lender on the tranche a reset date . monthly principal payments in the amount of $ 0.2 million commenced on june 1 , 2008. tranche b under the mortgage facility accrues interest , as reset on march 1 , 2016 , at a floating rate of the greater of ( i ) one month libor plus 3.50 % per annum or ( ii ) 4.25 % , payable monthly ( the floating rate ) . the margin on such floating rate may be reset by the mortgage lender on each tranche b reset date ; provided , however , that the mortgage lender may also change the underlying index on each tranche b reset date occurring on or after march 1 , 2018. monthly principal payments in the amount of $ 0.1 million commenced on june 1 , 2008. we do not currently anticipate that any change in the floating rate or the underlying index will have a material adverse effect upon our business , financial condition or results of operations . the terms of the mortgage facility contain covenants that require us to maintain a specified net worth of $ 110.0 million and maintain the encumbered properties . the mortgage lender is entitled to require immediate repayment of our obligations under the mortgage facility in the event we default in the payments required under the mortgage facility , non-compliance with the covenants or upon the occurrence of certain other defaults by us under the mortgage facility . as of june 29 , 2017 , we were in compliance with all covenants under the mortgage facility . selma property in september 2006 , we sold our selma , texas properties ( the selma properties ) to two related party partnerships for $ 14.3 million and are leasing them back . the selling price was determined by an independent appraiser to be the fair market value which also approximated our carrying value . the lease for the selma properties has a ten-year term at a fair market value rent with three five-year renewal options . also , we currently have an option to purchase the selma properties from the partnerships at 95 % ( 100 % in certain circumstances ) of the then fair market value , but not less than the original $ 14.3 million purchase price . the provisions of the arrangement are not eligible for sale-leaseback accounting and the $ 14.3 million was recorded as a debt obligation . no gain or loss was recorded on the selma properties transaction . as of june 29 , 2017 , $ 11.1 million of the debt obligation was outstanding . in september 2015 , we exercised two five-year renewal options which extended the selma lease to september 18 , 2026 ( unless we purchase it before such date ) and reduced the base monthly lease amount we pay on the selma properties during the second quarter of fiscal 2017 . 30 off-balance sheet arrangements as of june 29 , 2017 , we were not involved in any off-balance sheet arrangements , as defined in item 303 ( a ) ( 4 ) ( ii ) of regulation s-k promulgated by the sec . contractual cash obligations at june 29 , 2017 , we had the following contractual cash obligations for long-term debt ( including scheduled interest payments ) , operating leases , the credit facility , purchase obligations , retirement plans and other long-term liabilities ( amounts in this subsection in thousands ) : replace_table_token_9_th ( 1 ) interest obligations on floating rate debt instruments are calculated using interest rates in effect at june 29 , 2017. see note 5 long-term debt of the notes to consolidated financial statements for further detail on the company 's long-term debt obligations . ( 2 ) the purchase obligations represent $ 177,842 of inventory purchase commitments ; however , these amounts exclude purchase commitments under walnut purchase agreements due to the uncertainty of pricing and quantity . ( 3 ) represents projected retirement obligations . see note 11-employee benefit plans and note 12-retirement plan of the notes to consolidated financial statements for further details . 31 critical accounting policies and estimates our financial statements are prepared in accordance with accounting principles generally accepted in the united states of america . the accounting policies as disclosed in the notes to consolidated financial statements are applied in the preparation of our financial statements and accounting for the underlying transactions and balances . the policies discussed below are considered by our management to be critical for an understanding of our financial statements because the application of these policies places the most significant demands on management 's judgment , with financial reporting results relying on estimation regarding the effect of matters that are

