subject to achieving certain future financial goals ( `` triune earn-out `` ) , up to an additional $ 70.0 million of additional contingent consideration could have been paid over three years if certain revenue targets were achieved in each of the fiscal years 2016 through 2018. an additional payment of up to $ 16.0 million could have been paid after fiscal year 2018 if certain cumulative revenue and operating income targets are achieved . the triune earn-out targets for fiscal year 2017 and 2016 were not met and we do not expect to make any payments with regards to these periods which represented $ 36.0 million of the total $ 70.0 million opportunity . we do not expect fiscal year 2018 targets to be achieved . see note 3 and note 14 to our consolidated financial statements included in item 8 of this annual report on form 10-k. our primary reason for the acquisition was to broaden our existing portfolio with platforms that are very complementary to our current market focus , including triune 's isolated switching platform and wireless charging platform . on january 13 , 2015 , we completed the acquisition of select assets from enverv , a privately-held supplier of plc and smart grid solutions targeted at advanced metering infrastructure , home energy management systems and iot applications . we paid $ 4.9 million in cash at closing . see note 3 to our consolidated financial statements included in item 8 of this annual report on form 10-k. we operate and account for results in one reportable segment . see note 17 to our consolidated financial statements included in item 8 of this annual report on form 10-k. in fiscal year 2016 , we identified a total of five operating segments . four of these operating segments aggregate into one reportable segment , the semiconductor products group . the four operating segments aggregated into our one reportable segment all exhibit similar economic characteristics and we manage that business to a targeted gross margin range which all of the aggregated product lines are expected to meet . the remaining operating segment , the systems innovation group ( shown as `` all others `` ) , could not be aggregated with the other operating segments and did not meet the criteria for a separate reportable segment as defined by the guidance regarding segment disclosure . as a result , the financial activity associated with the systems innovation group was reported separately from our semiconductor products group . this separate reporting was included in the “ all others ” category . on august 5 , 2016 , we completed the divestiture of our snowbush ip business ( previously part of our systems innovation group ) to rambus for a purchase price of $ 32.0 million in cash along with the opportunity to receive additional payments from rambus through 2022 based upon a percentage of sales by rambus of new products expected to be developed by rambus from the disposed assets . beginning in the third quarter of fiscal year 2017 , we no longer have a systems innovation group or an “ all others ” category , and therefore we have only four operating segments that aggregate into one reportable segment , the semiconductor products group . gross margins for our protection products group and power and high-reliability products group performed below our targeted range in fiscal year 2017 as their businesses were negatively impacted by an unfavorable product mix . the power and high-reliability products group has continued its on-going strategic transition away from certain markets ( i.e . , the personal computer market ) that are characterized by non-differentiated offerings in sectors that are highly competitive . specifically , the power and high-reliability products group is transitioning its product offerings to better support its current target markets , which include high-end consumer and medical , space , industrial and automotive applications that have historically enjoyed higher gross margins . additionally , we believe that the recent addition of the wireless charging and isolated switching platforms 38 will allow us to accelerate this transition . the gross margin performance for the protection products group in fiscal year 2017 was detrimentally impacted by its reliance on the handheld end-market , but showed improvement from fiscal year 2016 as a result of higher volumes driving improved absorption of fixed manufacturing costs . most of our sales to customers are made on the basis of individual customer purchase orders . many customers include cancellation provisions in their purchase orders . trends within the industry toward shorter lead-times and `` just-in-time `` deliveries have resulted in our reduced ability to predict future shipments . as a result , we rely on orders received and shipped within the same quarter for a significant portion of our sales . sales made directly to customers during fiscal year 2017 were 35 % of net sales . the remaining 65 % of net sales were made through independent distributors . our business relies on foreign-based entities . most of our subcontractors and suppliers , including third-party foundries that supply silicon wafers , are located in foreign countries , including china , taiwan and israel . for the fiscal year ended january 29 , 2017 , approximately 25 % of our silicon , in terms of cost of wafers purchased , was manufactured in china . foreign sales for fiscal year 2017 constituted approximately 91 % of our net sales . approximately 76 % of foreign sales in fiscal year 2017 were to customers located in the asia-pacific region . the remaining foreign sales were primarily to customers in europe , canada and mexico . we use several metrics as indicators of future potential growth . the indicators that we believe best correlate to potential future revenue growth are design wins and new product releases . story_separator_special_tag this strength was more than offset by the further decline in the communications market driven by the anticipated weakness in 40gbps and 100gbps serdes devices going into the long-haul optical market as our customers transitioned away from our solutions and lower net sales to the 4g/lte wireless base station market . net sales were also lower in our high-end consumer end market due to lower demand from our largest korean customers due to their loss of world-wide market share . revenue from the licensing of intellectual property was $ 3.4 million and $ 0.4 million in fiscal years 2016 and 2015 , respectively . gross profit . gross profit was $ 293.1 million and $ 328.8 million in fiscal years 2016 and 2015 , respectively . our gross margin was 59.8 % for fiscal year 2016 , up from 58.9 % in fiscal year 2015 . we incurred significant charges in fiscal year 2015 related to our strategic decision to reduce our investments in the long-haul optical and defense and microwave communications markets . these charges included $ 2.8 million of asset impairment charges and $ 3.0 million of charges related to settlement of contract commitments . excluding the charges related to these business alignment decisions , our gross margin profile for fiscal years 2016 and 2015 were similar . operating costs and expenses replace_table_token_15_th selling , general & administrative expenses selling , general , and administrative expenses for fiscal year 2016 increase d by $ 9.0 million or 7 % as a result of higher support costs related to our new enterprise resource planning ( `` erp `` ) software and the recurring amortization expense associated with our new erp software of approximately $ 2.2 million per year . in fiscal year 2016 , we recorded a reserve for certain environmental matters of $ 2.9 million and incurred approximately $ 6.8 million of costs associated with various legal matters , including our acquisition of triune , our investment in multiphy ltd. , and our litigation actions against active-semi international , inc. these costs were partially offset by $ 9.1 million of lower share-based compensation . 45 product development and engineering expenses product development and engineering expenses for fiscal years 2016 and 2015 were $ 113.7 million and $ 119.4 million , respectively or a decrease of 5 % . the decrease was primarily a result of our decision to reduce our investment in the defense and microwave communications markets and to make additional reductions in our investments in the long-haul optical market , partially offset by higher costs associated with our acquisitions of triune and select assets from enverv and lower recoveries from third parties for non-recurring engineering services . the levels of product development and engineering expenses reported in a fiscal period can be significantly impacted , and therefore experience period over period volatility , by the number of new product tape-outs and by the timing of recoveries from non-recurring engineering services which are recorded as a reduction to product development and engineering expense . intangible amortization intangible amortization was $ 25.1 million and $ 25.7 million in fiscal years 2016 and 2015 , respectively . intangible asset impairments there were no intangible asset impairments in 2016. we recorded $ 11.6 million in intangible asset impairments in fiscal year 2015 related to our decision to reduce our investment in the defense and microwave communications markets and to make additional reductions in our investments in the long-haul optical market . changes in the fair value of contingent earn-out obligations the contingent earn-out expense decreased by $ 17.8 million in fiscal year 2016 primarily as a result of a significant reduction in our estimate of projected revenue associated with the triune earn-out . we measure contingent earn-out liabilities at fair value on a recurring basis using significant unobservable inputs classified within level 3 of the fair value hierarchy . we use a monte carlo valuation method as a valuation technique to determine the value of the earn-out liability . the significant unobservable inputs used in the fair value measurements are revenue projections over the earn-out period , and the probability outcome percentages assigned to each scenario . significant increases or decreases to either of these inputs in isolation would result in a significantly higher or lower liability , with a higher liability capped by the contractual maximum of the contingent earn-out obligation . ultimately , the liability will be equivalent to the amount paid , and the difference between the fair value estimate and amount paid will be recorded in earnings . the triune earn-out targets for fiscal year 2016 were not met and we do not expect to make any payments with regards to this period which represented $ 13.0 million of the total $ 70.0 million opportunity . restructuring in the second quarter of fiscal year 2016 , we announced a worldwide reduction in force as part of an overall plan to align operating expenses with business conditions and leverage recent infrastructure investments . as a result of the reduction in force , we recorded restructuring charges of $ 4.5 million in fiscal year 2016. we incurred $ 1.3 million for restructuring charges in fiscal year 2015 , respectively , for severance and contract cancellation liabilities related to our decision to reduce our investments in the defense and microwave communications and long-haul optical markets , realign product groupings , and align spending with anticipated demand levels . interest expense . interest expense was $ 7.8 million and $ 5.9 million for fiscal year 2016 and 2015 , respectively . the $ 1.9 million increase is primarily related to higher levels of outstanding debt under our credit facilities and higher amortization costs associated with our interest rate hedge . our interest rate under the credit agreement can be influenced by our leverage ratio . our leverage ratio is influenced by our consolidated indebtedness and our adjusted earnings before interest , taxes , depreciation and amortization . historically , our

liquidity and capital resources our capital requirements depend on a variety of factors , including but not limited to , the rate of increase or decrease in our existing business base ; the success , timing and amount of investment required to bring new products to market ; revenue growth or decline ; and potential acquisitions . we believe that we have the financial resources necessary to meet business requirements for the next 12 months , including funds needed for working capital requirements . as of january 29 , 2017 , our total stockholders ' equity was $ 605.3 million . at that date , we also had approximately $ 297.1 million in cash and cash equivalents and $ 241.0 million of borrowings , net of debt discount . we believe that sources and uses of cash when used in conjunction with gaap measures provide useful information to investors in evaluating our cash flows . our primary sources and uses of cash for the corresponding periods are presented below ( non-gaap ) : replace_table_token_16_th in summary , our cash flows for each period were as follows : replace_table_token_17_th we incur significant expenditures in order to fund the development , design , and manufacture of new products .


 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 capital requirements depend on a variety of factors , including but not limited to , the rate of increase or decrease in our existing business base ; the success , timing and amount of investment required to bring new products to market ; revenue growth or decline ; and potential acquisitions . we believe that we have the financial resources necessary to meet business requirements for the next 12 months , including funds needed for working capital requirements . as of january 29 , 2017 , our total stockholders ' equity was $ 605.3 million . at that date , we also had approximately $ 297.1 million in cash and cash equivalents and $ 241.0 million of borrowings , net of debt discount . we believe that sources and uses of cash when used in conjunction with gaap measures provide useful information to investors in evaluating our cash flows . our primary sources and uses of cash for the corresponding periods are presented below ( non-gaap ) : replace_table_token_16_th in summary , our cash flows for each period were as follows : replace_table_token_17_th we incur significant expenditures in order to fund the development , design , and manufacture of new products .
```    
 Suspicious Activity Report : subject to achieving certain future financial goals ( `` triune earn-out `` ) , up to an additional $ 70.0 million of additional contingent consideration could have been paid over three years if certain revenue targets were achieved in each of the fiscal years 2016 through 2018. an additional payment of up to $ 16.0 million could have been paid after fiscal year 2018 if certain cumulative revenue and operating income targets are achieved . the triune earn-out targets for fiscal year 2017 and 2016 were not met and we do not expect to make any payments with regards to these periods which represented $ 36.0 million of the total $ 70.0 million opportunity . we do not expect fiscal year 2018 targets to be achieved . see note 3 and note 14 to our consolidated financial statements included in item 8 of this annual report on form 10-k. our primary reason for the acquisition was to broaden our existing portfolio with platforms that are very complementary to our current market focus , including triune 's isolated switching platform and wireless charging platform . on january 13 , 2015 , we completed the acquisition of select assets from enverv , a privately-held supplier of plc and smart grid solutions targeted at advanced metering infrastructure , home energy management systems and iot applications . we paid $ 4.9 million in cash at closing . see note 3 to our consolidated financial statements included in item 8 of this annual report on form 10-k. we operate and account for results in one reportable segment . see note 17 to our consolidated financial statements included in item 8 of this annual report on form 10-k. in fiscal year 2016 , we identified a total of five operating segments . four of these operating segments aggregate into one reportable segment , the semiconductor products group . the four operating segments aggregated into our one reportable segment all exhibit similar economic characteristics and we manage that business to a targeted gross margin range which all of the aggregated product lines are expected to meet . the remaining operating segment , the systems innovation group ( shown as `` all others `` ) , could not be aggregated with the other operating segments and did not meet the criteria for a separate reportable segment as defined by the guidance regarding segment disclosure . as a result , the financial activity associated with the systems innovation group was reported separately from our semiconductor products group . this separate reporting was included in the “ all others ” category . on august 5 , 2016 , we completed the divestiture of our snowbush ip business ( previously part of our systems innovation group ) to rambus for a purchase price of $ 32.0 million in cash along with the opportunity to receive additional payments from rambus through 2022 based upon a percentage of sales by rambus of new products expected to be developed by rambus from the disposed assets . beginning in the third quarter of fiscal year 2017 , we no longer have a systems innovation group or an “ all others ” category , and therefore we have only four operating segments that aggregate into one reportable segment , the semiconductor products group . gross margins for our protection products group and power and high-reliability products group performed below our targeted range in fiscal year 2017 as their businesses were negatively impacted by an unfavorable product mix . the power and high-reliability products group has continued its on-going strategic transition away from certain markets ( i.e . , the personal computer market ) that are characterized by non-differentiated offerings in sectors that are highly competitive . specifically , the power and high-reliability products group is transitioning its product offerings to better support its current target markets , which include high-end consumer and medical , space , industrial and automotive applications that have historically enjoyed higher gross margins . additionally , we believe that the recent addition of the wireless charging and isolated switching platforms 38 will allow us to accelerate this transition . the gross margin performance for the protection products group in fiscal year 2017 was detrimentally impacted by its reliance on the handheld end-market , but showed improvement from fiscal year 2016 as a result of higher volumes driving improved absorption of fixed manufacturing costs . most of our sales to customers are made on the basis of individual customer purchase orders . many customers include cancellation provisions in their purchase orders . trends within the industry toward shorter lead-times and `` just-in-time `` deliveries have resulted in our reduced ability to predict future shipments . as a result , we rely on orders received and shipped within the same quarter for a significant portion of our sales . sales made directly to customers during fiscal year 2017 were 35 % of net sales . the remaining 65 % of net sales were made through independent distributors . our business relies on foreign-based entities . most of our subcontractors and suppliers , including third-party foundries that supply silicon wafers , are located in foreign countries , including china , taiwan and israel . for the fiscal year ended january 29 , 2017 , approximately 25 % of our silicon , in terms of cost of wafers purchased , was manufactured in china . foreign sales for fiscal year 2017 constituted approximately 91 % of our net sales . approximately 76 % of foreign sales in fiscal year 2017 were to customers located in the asia-pacific region . the remaining foreign sales were primarily to customers in europe , canada and mexico . we use several metrics as indicators of future potential growth . the indicators that we believe best correlate to potential future revenue growth are design wins and new product releases . story_separator_special_tag this strength was more than offset by the further decline in the communications market driven by the anticipated weakness in 40gbps and 100gbps serdes devices going into the long-haul optical market as our customers transitioned away from our solutions and lower net sales to the 4g/lte wireless base station market . net sales were also lower in our high-end consumer end market due to lower demand from our largest korean customers due to their loss of world-wide market share . revenue from the licensing of intellectual property was $ 3.4 million and $ 0.4 million in fiscal years 2016 and 2015 , respectively . gross profit . gross profit was $ 293.1 million and $ 328.8 million in fiscal years 2016 and 2015 , respectively . our gross margin was 59.8 % for fiscal year 2016 , up from 58.9 % in fiscal year 2015 . we incurred significant charges in fiscal year 2015 related to our strategic decision to reduce our investments in the long-haul optical and defense and microwave communications markets . these charges included $ 2.8 million of asset impairment charges and $ 3.0 million of charges related to settlement of contract commitments . excluding the charges related to these business alignment decisions , our gross margin profile for fiscal years 2016 and 2015 were similar . operating costs and expenses replace_table_token_15_th selling , general & administrative expenses selling , general , and administrative expenses for fiscal year 2016 increase d by $ 9.0 million or 7 % as a result of higher support costs related to our new enterprise resource planning ( `` erp `` ) software and the recurring amortization expense associated with our new erp software of approximately $ 2.2 million per year . in fiscal year 2016 , we recorded a reserve for certain environmental matters of $ 2.9 million and incurred approximately $ 6.8 million of costs associated with various legal matters , including our acquisition of triune , our investment in multiphy ltd. , and our litigation actions against active-semi international , inc. these costs were partially offset by $ 9.1 million of lower share-based compensation . 45 product development and engineering expenses product development and engineering expenses for fiscal years 2016 and 2015 were $ 113.7 million and $ 119.4 million , respectively or a decrease of 5 % . the decrease was primarily a result of our decision to reduce our investment in the defense and microwave communications markets and to make additional reductions in our investments in the long-haul optical market , partially offset by higher costs associated with our acquisitions of triune and select assets from enverv and lower recoveries from third parties for non-recurring engineering services . the levels of product development and engineering expenses reported in a fiscal period can be significantly impacted , and therefore experience period over period volatility , by the number of new product tape-outs and by the timing of recoveries from non-recurring engineering services which are recorded as a reduction to product development and engineering expense . intangible amortization intangible amortization was $ 25.1 million and $ 25.7 million in fiscal years 2016 and 2015 , respectively . intangible asset impairments there were no intangible asset impairments in 2016. we recorded $ 11.6 million in intangible asset impairments in fiscal year 2015 related to our decision to reduce our investment in the defense and microwave communications markets and to make additional reductions in our investments in the long-haul optical market . changes in the fair value of contingent earn-out obligations the contingent earn-out expense decreased by $ 17.8 million in fiscal year 2016 primarily as a result of a significant reduction in our estimate of projected revenue associated with the triune earn-out . we measure contingent earn-out liabilities at fair value on a recurring basis using significant unobservable inputs classified within level 3 of the fair value hierarchy . we use a monte carlo valuation method as a valuation technique to determine the value of the earn-out liability . the significant unobservable inputs used in the fair value measurements are revenue projections over the earn-out period , and the probability outcome percentages assigned to each scenario . significant increases or decreases to either of these inputs in isolation would result in a significantly higher or lower liability , with a higher liability capped by the contractual maximum of the contingent earn-out obligation . ultimately , the liability will be equivalent to the amount paid , and the difference between the fair value estimate and amount paid will be recorded in earnings . the triune earn-out targets for fiscal year 2016 were not met and we do not expect to make any payments with regards to this period which represented $ 13.0 million of the total $ 70.0 million opportunity . restructuring in the second quarter of fiscal year 2016 , we announced a worldwide reduction in force as part of an overall plan to align operating expenses with business conditions and leverage recent infrastructure investments . as a result of the reduction in force , we recorded restructuring charges of $ 4.5 million in fiscal year 2016. we incurred $ 1.3 million for restructuring charges in fiscal year 2015 , respectively , for severance and contract cancellation liabilities related to our decision to reduce our investments in the defense and microwave communications and long-haul optical markets , realign product groupings , and align spending with anticipated demand levels . interest expense . interest expense was $ 7.8 million and $ 5.9 million for fiscal year 2016 and 2015 , respectively . the $ 1.9 million increase is primarily related to higher levels of outstanding debt under our credit facilities and higher amortization costs associated with our interest rate hedge . our interest rate under the credit agreement can be influenced by our leverage ratio . our leverage ratio is influenced by our consolidated indebtedness and our adjusted earnings before interest , taxes , depreciation and amortization . historically , our

