in 2018 , our focus will be on continued execution of our core culture and brand strategies as well as strategic investments centered on long-term quality growth . these investments will be largely focused on the continued roll-out of our new customer engagement suite , continued investment in our people , and other investments focused on creating operational efficiencies and enhancing the customer experience . as we are closer to our targeted number of stores in north america , we expect that total store count growth in fiscal 2018 will be less than in fiscal 2017. in europe and australia , we continue to believe we have growth ahead and our planning 7 stores , consistent with the 7 we opened in fiscal 2017. in fiscal 2018 , we expect our cost structure will grow at a slower rate than 2017 , primarily tied to the impact on 2017 growth of incentive compensation and expense initiatives across the organization . we anticipate inventory levels per square foot will grow roughly in-line with sales growth . excluding any possible share buy-backs , we expect cash , short-term investments and working capital to increase , and do not anticipate any new long-term borrowings during the year . long-term we aim to grow sales annually and grow operating profit at a faster rate than sales by focusing on the changing consumer environment while managing our cost structure . general net sales constitute gross sales , net of actual and estimated returns and deductions for promotions , and shipping revenue . net sales include our store sales and our ecommerce sales . we record the sale of gift cards as a current liability and recognize revenue when a customer redeems a gift card . additionally , the portion of gift cards that will not be redeemed ( “ gift card breakage ” ) is recognized in net sales after 24 months , at which time the likelihood of redemption is considered remote based on our historical redemption data . we report “ comparable sales ” based on net sales beginning on the first anniversary of the first day of operation of a new store or ecommerce business . we operate a sales strategy that integrates our stores with our ecommerce platform . there is significant interaction between our store sales and our ecommerce sales channels and we believe that they are utilized in tandem to serve our customers . therefore , our comparable sales also include our ecommerce sales . changes in our comparable sales between two periods are based on net sales of store or ecommerce businesses which were in operation during both of the two periods being compared and , if a store or ecommerce business is included in the calculation of comparable sales for only a portion of one of the two periods being compared , then that store or ecommerce business is included in the calculation for only the comparable portion of the other period . any change in square footage of an existing comparable store , including remodels and relocations , does not eliminate that store from inclusion in the calculation of comparable sales . any store or ecommerce business that we acquire will be included in the calculation of comparable sales after the first anniversary of the acquisition date . current year foreign exchange rates are applied to both current year and prior year comparable sales to achieve a consistent basis for comparison . there may be variations in the way in which some of our competitors and other apparel retailers calculate comparable sales . as a result , data herein regarding our comparable sales may not be comparable to similar data made available by our competitors or other retailers . cost of goods sold consists of branded merchandise costs and our private label merchandise costs including design , sourcing , importing and inbound freight costs . our cost of goods sold also includes shrinkage , buying , occupancy , ecommerce fulfillment , distribution and warehousing costs ( including associated depreciation ) and freight costs for store merchandise transfers . this may not be comparable to the way in which our competitors or other retailers compute their cost of goods sold . cash consideration received from vendors is reported as a reduction of cost of goods sold if the inventory has sold , a reduction of the carrying value of the inventory if the inventory is still on hand , or a reduction of selling , general and administrative expense if the amounts are reimbursements of specific , incremental and identifiable costs of selling the vendors ' products . with respect to the freight component of our ecommerce sales , amounts billed to our customers are included in net sales and the related freight cost is charged to cost of goods sold . 27 selling , general and administrative expenses consist primarily of store personnel wages and benefits , administrative staff and infrastructure expenses , freight costs for merchandise shipments from the distribution centers to the stores , st ore supplies , depreciation on fixed assets at our home office and stores , facility expenses , training expenses and advertising and marketing costs . credit card fees , insurance , public company expenses , legal expenses , amortization of intangibles , and othe r miscellaneous operating costs are also included in selling , general and administrative expenses . this may not be comparable to the way in which our competitors or other retailers compute their selling , general and administrative expenses . key performance indicators our management evaluates the following items , which we consider key performance indicators , in assessing our performance : comparable sales . as previously described in detail under the caption “ general , ” comparable sales provide a measure of sales growth for stores and ecommerce businesses open at least one year over the comparable prior year period . we consider comparable sales to be an important indicator of our current performance . story_separator_special_tag in addition to historical results , current trends and initiatives , and long-term macro-economic and industry factors are qualitatively considered . additionally , management seeks input from store operations related to local economic conditions , including the impact of closures of selected co-tenants who occupy the mall . our fixed assets accounting methodology contains uncertainties because it requires management to make estimates with respect to the useful lives of our fixed assets that we believe are reasonable . 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 . declines in projected cash flow of the assets could result in impairment . although management believes that the current useful life estimates assigned to our fixed assets are reasonable , factors could cause us to change our estimates , thus affecting the future calculation of depreciation . 35 description judgments and uncertainties effect if actual results differ from assumptions revenue recognition revenue is recognized upon purchase at our retail store locations . for our ecommerce sales , revenue is recognized upon delivery to the customer . revenue is recorded net of sales returns and deductions for promotions . revenue is not recorded on the sale of gift cards . we record the sale of gift cards as a current liability and recognize revenue when a customer redeems a gift card . additionally , the portion of gift cards that will not be redeemed ( “ gift card breakage ” ) is recognized in revenue after 24 months , at which time the likelihood of redemption is considered remote based on our historical redemption data . our revenue recognition accounting methodology contains uncertainties because it requires management to make assumptions regarding future sales returns and the amount and timing of gift cards projected to be redeemed by gift card recipients . our estimate of the amount and timing of sales returns and gift cards to be redeemed is based primarily on historical experience . we have not made any material changes in the accounting methodology used to measure future sales returns or recognize revenue for our gift card program in the past three fiscal years . 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 recognize revenue . however , if actual results are not consistent with our estimates or assumptions , we may be exposed to losses or gains that could be material . a 10 % increase in our sales return reserve at february 3 , 2018 would have decreased net income by $ 0.2 million in fiscal 2017. a 10 % increase in our unredeemed gift card breakage life at february 3 , 2018 would have decreased net income by $ 0.6 million in fiscal 2017. accounting for income taxes as part of the process of preparing the consolidated financial statements , income taxes are estimated for each of the jurisdictions in which we operate . this process involves estimating actual current tax exposure together with assessing temporary differences resulting from differing treatment of items for tax and accounting purposes . these differences result in deferred tax assets and liabilities , which are included on the consolidated balance sheets . valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized . we regularly evaluate the likelihood of realizing the benefit for income tax positions we have taken in various federal , state and foreign filings by considering all relevant facts , circumstances and information available to us . if we believe it is more likely than not that our position will be sustained , we recognize a benefit at the largest amount that we believe is cumulatively greater than 50 % likely to be realized . significant judgment is required in evaluating our tax positions and determining our provision for income taxes . during the ordinary course of business , there are many transactions and calculations for which the ultimate tax determination is uncertain . for example , our effective tax rates could be adversely affected by earnings being lower than anticipated in jurisdictions where we have lower statutory rates and higher than anticipated in jurisdictions where we have higher statutory rates . the assessment of whether we will realize the value of our deferred tax assets requires estimates and judgments related to amount and timing of future taxable income . actual results may differ from those estimates . additionally , changes in the relevant tax , accounting and other laws , regulations , principles and interpretations may adversely affect financial results . although management believes that the income tax related judgments and estimates are reasonable , actual results could differ and we may be exposed to losses or gains that could be material . at february 3 , 2018 and january 28 , 2017 , we had valuation allowances on our deferred tax assets of $ 3.6 million and $ 0.1 million , respectively . during the fiscal year ended february 3 , 2018 , we increased the valuation allowance by $ 3.5 million due to the uncertainty of the realization of deferred tax assets related to net operating loss carryovers in austria . significant changes in performance or estimated taxable income may result in a change to our valuation allowance . upon income tax audit , any unfavorable tax settlement generally would require use of our cash and may result in an increase in our effective income tax rate in the period of resolution . a favorable tax settlement may be recognized as a reduction in our effective income tax rate in the period of resolution . 36 description judgments and uncertainties effect if actual results differ from assumptions accounting for contingencies

sources of liquidity our most significant sources of liquidity continue to be funds generated by operating activities and available cash , cash equivalents and current marketable securities . we expect these sources of liquidity and available borrowings under our revolving credit facilities will be sufficient to meet our foreseeable cash requirements for operations and planned capital expenditures for at least the next twelve months . beyond this time frame , if cash flows from operations are not sufficient to meet our capital requirements , then we will be required to obtain additional equity or debt financing in the future . however , there can be no assurance that equity or debt financing will be available to us when we need it or , if available , that the terms will be satisfactory to us and not dilutive to our then-current shareholders . as of february 3 , 2018 , we maintained an asset-based revolving credit agreement with wells fargo bank , national association as administrative agent , collateral agent , letter of credit issuer and lenders , which provides for a senior secured revolving credit facility of up to $ 100 million ( “ abl facility ” ) , subject to a borrowing base , with a letter of credit sub-limit of $ 10 million . the abl facility is available for working capital and other general corporate purposes . the abl facility will mature on february 5 , 2021. the abl facility is secured by a first-priority security interest in substantially all of the personal property ( but not the real property ) of the company . amounts borrowed under the abl facility bear interest , at the company 's option , at either an adjusted libor rate plus a margin of 1.25 % to 1.75 % per annum , or an alternate base rate plus a margin of 0.25 % to 0.75 % per annum . the company is also required to pay a fee of 0.25 % per annum on undrawn commitments under the abl facility . customary agency fees and letter of credit fees are also payable in respect of the abl facility .


 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.
     ```sources of liquidity our most significant sources of liquidity continue to be funds generated by operating activities and available cash , cash equivalents and current marketable securities . we expect these sources of liquidity and available borrowings under our revolving credit facilities will be sufficient to meet our foreseeable cash requirements for operations and planned capital expenditures for at least the next twelve months . beyond this time frame , if cash flows from operations are not sufficient to meet our capital requirements , then we will be required to obtain additional equity or debt financing in the future . however , there can be no assurance that equity or debt financing will be available to us when we need it or , if available , that the terms will be satisfactory to us and not dilutive to our then-current shareholders . as of february 3 , 2018 , we maintained an asset-based revolving credit agreement with wells fargo bank , national association as administrative agent , collateral agent , letter of credit issuer and lenders , which provides for a senior secured revolving credit facility of up to $ 100 million ( “ abl facility ” ) , subject to a borrowing base , with a letter of credit sub-limit of $ 10 million . the abl facility is available for working capital and other general corporate purposes . the abl facility will mature on february 5 , 2021. the abl facility is secured by a first-priority security interest in substantially all of the personal property ( but not the real property ) of the company . amounts borrowed under the abl facility bear interest , at the company 's option , at either an adjusted libor rate plus a margin of 1.25 % to 1.75 % per annum , or an alternate base rate plus a margin of 0.25 % to 0.75 % per annum . the company is also required to pay a fee of 0.25 % per annum on undrawn commitments under the abl facility . customary agency fees and letter of credit fees are also payable in respect of the abl facility .
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 Suspicious Activity Report : in 2018 , our focus will be on continued execution of our core culture and brand strategies as well as strategic investments centered on long-term quality growth . these investments will be largely focused on the continued roll-out of our new customer engagement suite , continued investment in our people , and other investments focused on creating operational efficiencies and enhancing the customer experience . as we are closer to our targeted number of stores in north america , we expect that total store count growth in fiscal 2018 will be less than in fiscal 2017. in europe and australia , we continue to believe we have growth ahead and our planning 7 stores , consistent with the 7 we opened in fiscal 2017. in fiscal 2018 , we expect our cost structure will grow at a slower rate than 2017 , primarily tied to the impact on 2017 growth of incentive compensation and expense initiatives across the organization . we anticipate inventory levels per square foot will grow roughly in-line with sales growth . excluding any possible share buy-backs , we expect cash , short-term investments and working capital to increase , and do not anticipate any new long-term borrowings during the year . long-term we aim to grow sales annually and grow operating profit at a faster rate than sales by focusing on the changing consumer environment while managing our cost structure . general net sales constitute gross sales , net of actual and estimated returns and deductions for promotions , and shipping revenue . net sales include our store sales and our ecommerce sales . we record the sale of gift cards as a current liability and recognize revenue when a customer redeems a gift card . additionally , the portion of gift cards that will not be redeemed ( “ gift card breakage ” ) is recognized in net sales after 24 months , at which time the likelihood of redemption is considered remote based on our historical redemption data . we report “ comparable sales ” based on net sales beginning on the first anniversary of the first day of operation of a new store or ecommerce business . we operate a sales strategy that integrates our stores with our ecommerce platform . there is significant interaction between our store sales and our ecommerce sales channels and we believe that they are utilized in tandem to serve our customers . therefore , our comparable sales also include our ecommerce sales . changes in our comparable sales between two periods are based on net sales of store or ecommerce businesses which were in operation during both of the two periods being compared and , if a store or ecommerce business is included in the calculation of comparable sales for only a portion of one of the two periods being compared , then that store or ecommerce business is included in the calculation for only the comparable portion of the other period . any change in square footage of an existing comparable store , including remodels and relocations , does not eliminate that store from inclusion in the calculation of comparable sales . any store or ecommerce business that we acquire will be included in the calculation of comparable sales after the first anniversary of the acquisition date . current year foreign exchange rates are applied to both current year and prior year comparable sales to achieve a consistent basis for comparison . there may be variations in the way in which some of our competitors and other apparel retailers calculate comparable sales . as a result , data herein regarding our comparable sales may not be comparable to similar data made available by our competitors or other retailers . cost of goods sold consists of branded merchandise costs and our private label merchandise costs including design , sourcing , importing and inbound freight costs . our cost of goods sold also includes shrinkage , buying , occupancy , ecommerce fulfillment , distribution and warehousing costs ( including associated depreciation ) and freight costs for store merchandise transfers . this may not be comparable to the way in which our competitors or other retailers compute their cost of goods sold . cash consideration received from vendors is reported as a reduction of cost of goods sold if the inventory has sold , a reduction of the carrying value of the inventory if the inventory is still on hand , or a reduction of selling , general and administrative expense if the amounts are reimbursements of specific , incremental and identifiable costs of selling the vendors ' products . with respect to the freight component of our ecommerce sales , amounts billed to our customers are included in net sales and the related freight cost is charged to cost of goods sold . 27 selling , general and administrative expenses consist primarily of store personnel wages and benefits , administrative staff and infrastructure expenses , freight costs for merchandise shipments from the distribution centers to the stores , st ore supplies , depreciation on fixed assets at our home office and stores , facility expenses , training expenses and advertising and marketing costs . credit card fees , insurance , public company expenses , legal expenses , amortization of intangibles , and othe r miscellaneous operating costs are also included in selling , general and administrative expenses . this may not be comparable to the way in which our competitors or other retailers compute their selling , general and administrative expenses . key performance indicators our management evaluates the following items , which we consider key performance indicators , in assessing our performance : comparable sales . as previously described in detail under the caption “ general , ” comparable sales provide a measure of sales growth for stores and ecommerce businesses open at least one year over the comparable prior year period . we consider comparable sales to be an important indicator of our current performance . story_separator_special_tag in addition to historical results , current trends and initiatives , and long-term macro-economic and industry factors are qualitatively considered . additionally , management seeks input from store operations related to local economic conditions , including the impact of closures of selected co-tenants who occupy the mall . our fixed assets accounting methodology contains uncertainties because it requires management to make estimates with respect to the useful lives of our fixed assets that we believe are reasonable . 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 . declines in projected cash flow of the assets could result in impairment . although management believes that the current useful life estimates assigned to our fixed assets are reasonable , factors could cause us to change our estimates , thus affecting the future calculation of depreciation . 35 description judgments and uncertainties effect if actual results differ from assumptions revenue recognition revenue is recognized upon purchase at our retail store locations . for our ecommerce sales , revenue is recognized upon delivery to the customer . revenue is recorded net of sales returns and deductions for promotions . revenue is not recorded on the sale of gift cards . we record the sale of gift cards as a current liability and recognize revenue when a customer redeems a gift card . additionally , the portion of gift cards that will not be redeemed ( “ gift card breakage ” ) is recognized in revenue after 24 months , at which time the likelihood of redemption is considered remote based on our historical redemption data . our revenue recognition accounting methodology contains uncertainties because it requires management to make assumptions regarding future sales returns and the amount and timing of gift cards projected to be redeemed by gift card recipients . our estimate of the amount and timing of sales returns and gift cards to be redeemed is based primarily on historical experience . we have not made any material changes in the accounting methodology used to measure future sales returns or recognize revenue for our gift card program in the past three fiscal years . 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 recognize revenue . however , if actual results are not consistent with our estimates or assumptions , we may be exposed to losses or gains that could be material . a 10 % increase in our sales return reserve at february 3 , 2018 would have decreased net income by $ 0.2 million in fiscal 2017. a 10 % increase in our unredeemed gift card breakage life at february 3 , 2018 would have decreased net income by $ 0.6 million in fiscal 2017. accounting for income taxes as part of the process of preparing the consolidated financial statements , income taxes are estimated for each of the jurisdictions in which we operate . this process involves estimating actual current tax exposure together with assessing temporary differences resulting from differing treatment of items for tax and accounting purposes . these differences result in deferred tax assets and liabilities , which are included on the consolidated balance sheets . valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized . we regularly evaluate the likelihood of realizing the benefit for income tax positions we have taken in various federal , state and foreign filings by considering all relevant facts , circumstances and information available to us . if we believe it is more likely than not that our position will be sustained , we recognize a benefit at the largest amount that we believe is cumulatively greater than 50 % likely to be realized . significant judgment is required in evaluating our tax positions and determining our provision for income taxes . during the ordinary course of business , there are many transactions and calculations for which the ultimate tax determination is uncertain . for example , our effective tax rates could be adversely affected by earnings being lower than anticipated in jurisdictions where we have lower statutory rates and higher than anticipated in jurisdictions where we have higher statutory rates . the assessment of whether we will realize the value of our deferred tax assets requires estimates and judgments related to amount and timing of future taxable income . actual results may differ from those estimates . additionally , changes in the relevant tax , accounting and other laws , regulations , principles and interpretations may adversely affect financial results . although management believes that the income tax related judgments and estimates are reasonable , actual results could differ and we may be exposed to losses or gains that could be material . at february 3 , 2018 and january 28 , 2017 , we had valuation allowances on our deferred tax assets of $ 3.6 million and $ 0.1 million , respectively . during the fiscal year ended february 3 , 2018 , we increased the valuation allowance by $ 3.5 million due to the uncertainty of the realization of deferred tax assets related to net operating loss carryovers in austria . significant changes in performance or estimated taxable income may result in a change to our valuation allowance . upon income tax audit , any unfavorable tax settlement generally would require use of our cash and may result in an increase in our effective income tax rate in the period of resolution . a favorable tax settlement may be recognized as a reduction in our effective income tax rate in the period of resolution . 36 description judgments and uncertainties effect if actual results differ from assumptions accounting for contingencies

