any changes in our key projections or estimates could result in a reporting unit either passing or failing the first step of the impairment model , which could significantly change the amount of any impairment ultimately recorded . based upon the assumptions underlying the valuation , impairment is determined by estimating the fair value of a reporting unit and comparing that value to the reporting unit 's book value . goodwill is tested for impairment annually , and on an interim basis if certain events or circumstances indicate that an impairment loss may have been incurred . if the fair value is more than the carrying value of the reporting unit , an impairment loss is not indicated . if a reporting unit 's carrying value exceeds its fair value , an impairment charge would be recognized for the excess amount , not to exceed the carrying amount of goodwill . 26 we performed our annual assessment of goodwill for impairment as of our annual testing date being april 1 , 2017 for each of our reporting units by evaluating qualitative factors , including , but not limited to , the performance of each reporting unit , general economic conditions , access to capital , the industry and competitive environment , and the interest rate environment . we prepared step-one of our impairment model . based on our assessment , we determined that the fair values of our reporting units were not less than the carrying amounts . in addition , as a result of operating performance below expectations for the full year of 2017 that became apparent in september 2017 , we performed a subsequent impairment assessment on goodwill as of september 30 , 2017. based on our assessment , we determined that the fair values of two of our reporting units were less than the carrying amounts , resulting in an aggregate impairment charge of $ 8.3 million . the amount of goodwill assigned to each of the three reporting units , u.s. and canada , international , and halloween , amounted to $ 23.8 million , $ 11.6 million , and nil , respectively , after the impairment charge . goodwill and intangible assets amounted to $ 57.6 million as of december 31 , 2017. reserve for inventory obsolescence . we value our inventory at the lower of cost or market . based upon a consideration of quantities on hand , actual and projected sales volume , anticipated product selling prices and product lines planned to be discontinued , slow-moving and obsolete inventory is written down to its net realizable value . failure to accurately predict and respond to consumer demand could result in us under-producing popular items or overproducing less popular items . furthermore , significant changes in demand for our products would impact management 's estimates in establishing our inventory provision . management estimates are monitored on a quarterly basis and a further adjustment to reduce inventory to its net realizable value is recorded , as an increase to cost of sales , when deemed necessary under the lower of cost or market standard . income allocation for income taxes . our annual income tax provision and related income tax assets and liabilities are based upon actual income as allocated to the various tax jurisdictions based upon our transfer pricing study , us and foreign statutory income tax rates and tax regulations and planning opportunities in the various jurisdictions in which we operate . significant judgment is required in interpreting tax regulations in the u.s. and foreign jurisdictions , and in evaluating worldwide uncertain tax positions . actual results could differ materially from those judgments , and changes from such judgments could materially affect our consolidated financial statements . income taxes and interest and penalties related to income tax payable . we do not file a consolidated return for our foreign subsidiaries . we file federal and state returns and our foreign subsidiaries each file returns in their respective jurisdictions , as applicable . deferred taxes are provided on a liability method , whereby deferred tax assets are recognized as deductible temporary differences and operating loss and tax credit carry-forwards and deferred tax liabilities are recognized for taxable temporary differences . temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases . deferred tax assets are reduced by a valuation allowance when , in the opinion of management , it is more likely than not that some or all of the deferred tax assets will not be realized . deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment . we must assess the likelihood that we will be able to recover our deferred tax assets . deferred tax assets are reduced by a valuation allowance , if , based upon the weight of available evidence , it is more likely than not that we will not realize some portion or all of the deferred tax assets . we consider all available positive and negative evidence when assessing whether it is more likely than not that deferred tax assets are recoverable . we consider evidence such as our past operating results , the existence of cumulative losses in previous periods and our forecast of future taxable income . we believe this to be a critical accounting policy because should there be a change in our ability to recover our deferred tax assets , our tax provision would increase in the period in which we determine that the recovery is not likely , as well as decrease in the period in which the assessment of the recoverability of the deferred tax assets reverses , which could have a material impact on our results of operations . we accrue a tax reserve for additional income taxes and interest , which may become payable in future years as a result of audit adjustments by tax authorities . story_separator_special_tag in 2017 , we recorded interest expense of $ 9.4 million related to our convertible senior notes payable due in 2018 and 2020 and $ 0.4 million related to our revolving credit facility . in 2016 , we recorded interest expense of $ 11.7 million related to our convertible senior notes payable , $ 0.9 million related to our revolving credit facility and $ 0.4 million related to the interest component of our maui acquisition earn-out . the overall decrease in 2017 is due to a lower average debt . provision for income taxes our income tax expense , which includes federal , state and foreign income taxes and discrete items , was $ 1.6 million , or an effective tax rate of ( 2.0 % ) for 2017. during 2016 , the income tax expense was $ 4.1 million , or an effective tax rate of 76.8 % . the 2017 tax expense of $ 1.6 million included a discrete tax benefit of $ 0.6 million primarily comprised of return to provision and uncertain tax position adjustments . absent these discrete tax benefits , our effective tax rate for 2017 was ( 2.8 % ) , primarily due to the us federal transition tax , various state taxes and taxes on foreign income . the 2016 tax expense of $ 4.1 million included a discrete tax benefit of $ 0.1 million primarily comprised of return to provision adjustments . absent these discrete tax expenses , our effective tax rate for 2016 was 79.2 % , primarily due to us federal alternative minimum tax , various state taxes and taxes on foreign income . we assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets by jurisdiction . based on our evaluation of all positive and negative evidence , as of december 31 , 2017 , a valuation allowance of $ 89.7 million has been recorded against the deferred tax assets that more likely than not will not be realized . the net deferred tax liabilities of $ 0.8 million consists of the net deferred tax liabilities in the foreign jurisdiction , where we are in a cumulative income position , partially offset by the deferred tax assets in the us related to the amt carryforward , which are fully realizable . comparison of the years ended december 31 , 2016 and 2015 net sales u.s. and canada . net sales of our u.s. and canada segment were $ 478.6 million in 2016 , compared to $ 478.7 million in 2015 , representing a decrease of $ 0.1 million . net sales were flat year-over year primarily due to a decrease in unit sales of various products due to the suspension of shipments to a major u.s. customer and lower than expected unit sales of some movie licensed products , offset by higher unit sales of our disney tsum tsum line of collectibles , disney princess and alice through the looking glass dolls , kids furniture and accessories , and our big figs line . international . net sales of our international segment were $ 131.2 million in 2016 , compared to $ 169.8 million in 2015 , representing a decrease of $ 38.6 million , or 22.7 % . the decrease in net sales was primarily driven by declines in unit sales of various products in the united kingdom and western europe due to the reduced buying power of our customers stemming from the devaluation of the british pound , and lower than expected unit sales of movie licensed product . halloween . net sales of our halloween segment were $ 96.8 million in 2016 , compared to $ 97.2 million in 2015 , representing a decrease of $ 0.4 million , or 0.4 % . the decrease in net sales was primarily due to a decrease in unit sales of a variety of products in 2016. cost of sales u.s. and canada . cost of sales of our u.s. and canada segment was $ 322.7 million , or 67.4 % of related net sales in 2016 compared to $ 335.0 million , or 70.0 % of related net sales in 2015 , representing a decrease of $ 12.3 million , or 3.7 % . the decrease in cost of sales as a percentage of net sales , year over year , is due to reduced costing of legacy products and product mix , partially offset by increased product tooling driven by new product introductions in 2016. depreciation of molds and tools for the segment increased slightly in 2016 due to an increase in new product tooling driven by product introductions in 2016 . 31 international . cost of sales of our international segment was $ 89.2 million , or 68.0 % of related net sales in 2016 compared to $ 110.2 million , or 64.9 % of related net sales in 2015 , representing a decrease of $ 21.0 million , or 19.1 % . the decrease in cost of sales is a direct function of lower overall unit sales . the increase as a percentage of net sales , year-over-year , is due to the change in product mix to relatively higher cost product and an increase in the average royalty rate . the increase in royalties is driven by a shift in the product mix to products with relatively higher royalty rates and an increase in royalty rates on shipments made fob china . our depreciation of molds and tools for the segment showed a modest increase from 2015 due to increased product tooling driven by new product introductions in 2016. halloween . cost of sales of our halloween segment was $ 71.7 million , or 74.1 % of related net sales for 2016 compared to $ 72.0 million , or 74.1 % of related net sales in 2015 , representing a decrease of $ 0.3 million , or 0.4 % .

debt with conversion and other options in july 2013 , we sold an aggregate of $ 100.0 million principal amount of 4.25 % convertible senior notes due 2018 ( the “ 2018 notes ” ) . the 2018 notes , which are senior unsecured obligations , pay interest semi-annually in arrears on august 1 and february 1 of each year at a rate of 4.25 % per annum and will mature on august 1 , 2018. the initial and still conversion rate for the 2018 notes is 114.3674 shares of our common stock per $ 1,000 principal amount of notes , equivalent to an initial conversion price of approximately $ 8.74 per share of common stock , subject to adjustment in certain events . upon conversion , the 2018 notes will be settled in shares of our common stock . holders of the 2018 notes may require us to repurchase for cash all or some of their notes upon the occurrence of a fundamental change ( as defined in the 2018 notes ) . in 2016 , we repurchased and retired $ 6.1 million principal amount of the 2018 notes . in 2017 , we exchanged and retired an aggregate of $ 51.1 million principal amount of the 2018 notes at par for $ 35.6 million in cash and approximately 3.0 million shares of our common stock , and the maturity of $ 21.5 million principal amount of the 2018 notes was extended to november 1 , 2020 along with a reduction in the interest rate to 3.25 % per annum if paid in cash and a reduction in the conversion price to $ 3.05 per share . in june 2014 , we sold an aggregate of $ 115.0 million principal amount of 4.875 % convertible senior notes due 2020 ( the “ 2020 notes ” ) .


 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 with conversion and other options in july 2013 , we sold an aggregate of $ 100.0 million principal amount of 4.25 % convertible senior notes due 2018 ( the “ 2018 notes ” ) . the 2018 notes , which are senior unsecured obligations , pay interest semi-annually in arrears on august 1 and february 1 of each year at a rate of 4.25 % per annum and will mature on august 1 , 2018. the initial and still conversion rate for the 2018 notes is 114.3674 shares of our common stock per $ 1,000 principal amount of notes , equivalent to an initial conversion price of approximately $ 8.74 per share of common stock , subject to adjustment in certain events . upon conversion , the 2018 notes will be settled in shares of our common stock . holders of the 2018 notes may require us to repurchase for cash all or some of their notes upon the occurrence of a fundamental change ( as defined in the 2018 notes ) . in 2016 , we repurchased and retired $ 6.1 million principal amount of the 2018 notes . in 2017 , we exchanged and retired an aggregate of $ 51.1 million principal amount of the 2018 notes at par for $ 35.6 million in cash and approximately 3.0 million shares of our common stock , and the maturity of $ 21.5 million principal amount of the 2018 notes was extended to november 1 , 2020 along with a reduction in the interest rate to 3.25 % per annum if paid in cash and a reduction in the conversion price to $ 3.05 per share . in june 2014 , we sold an aggregate of $ 115.0 million principal amount of 4.875 % convertible senior notes due 2020 ( the “ 2020 notes ” ) .
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 Suspicious Activity Report : any changes in our key projections or estimates could result in a reporting unit either passing or failing the first step of the impairment model , which could significantly change the amount of any impairment ultimately recorded . based upon the assumptions underlying the valuation , impairment is determined by estimating the fair value of a reporting unit and comparing that value to the reporting unit 's book value . goodwill is tested for impairment annually , and on an interim basis if certain events or circumstances indicate that an impairment loss may have been incurred . if the fair value is more than the carrying value of the reporting unit , an impairment loss is not indicated . if a reporting unit 's carrying value exceeds its fair value , an impairment charge would be recognized for the excess amount , not to exceed the carrying amount of goodwill . 26 we performed our annual assessment of goodwill for impairment as of our annual testing date being april 1 , 2017 for each of our reporting units by evaluating qualitative factors , including , but not limited to , the performance of each reporting unit , general economic conditions , access to capital , the industry and competitive environment , and the interest rate environment . we prepared step-one of our impairment model . based on our assessment , we determined that the fair values of our reporting units were not less than the carrying amounts . in addition , as a result of operating performance below expectations for the full year of 2017 that became apparent in september 2017 , we performed a subsequent impairment assessment on goodwill as of september 30 , 2017. based on our assessment , we determined that the fair values of two of our reporting units were less than the carrying amounts , resulting in an aggregate impairment charge of $ 8.3 million . the amount of goodwill assigned to each of the three reporting units , u.s. and canada , international , and halloween , amounted to $ 23.8 million , $ 11.6 million , and nil , respectively , after the impairment charge . goodwill and intangible assets amounted to $ 57.6 million as of december 31 , 2017. reserve for inventory obsolescence . we value our inventory at the lower of cost or market . based upon a consideration of quantities on hand , actual and projected sales volume , anticipated product selling prices and product lines planned to be discontinued , slow-moving and obsolete inventory is written down to its net realizable value . failure to accurately predict and respond to consumer demand could result in us under-producing popular items or overproducing less popular items . furthermore , significant changes in demand for our products would impact management 's estimates in establishing our inventory provision . management estimates are monitored on a quarterly basis and a further adjustment to reduce inventory to its net realizable value is recorded , as an increase to cost of sales , when deemed necessary under the lower of cost or market standard . income allocation for income taxes . our annual income tax provision and related income tax assets and liabilities are based upon actual income as allocated to the various tax jurisdictions based upon our transfer pricing study , us and foreign statutory income tax rates and tax regulations and planning opportunities in the various jurisdictions in which we operate . significant judgment is required in interpreting tax regulations in the u.s. and foreign jurisdictions , and in evaluating worldwide uncertain tax positions . actual results could differ materially from those judgments , and changes from such judgments could materially affect our consolidated financial statements . income taxes and interest and penalties related to income tax payable . we do not file a consolidated return for our foreign subsidiaries . we file federal and state returns and our foreign subsidiaries each file returns in their respective jurisdictions , as applicable . deferred taxes are provided on a liability method , whereby deferred tax assets are recognized as deductible temporary differences and operating loss and tax credit carry-forwards and deferred tax liabilities are recognized for taxable temporary differences . temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases . deferred tax assets are reduced by a valuation allowance when , in the opinion of management , it is more likely than not that some or all of the deferred tax assets will not be realized . deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment . we must assess the likelihood that we will be able to recover our deferred tax assets . deferred tax assets are reduced by a valuation allowance , if , based upon the weight of available evidence , it is more likely than not that we will not realize some portion or all of the deferred tax assets . we consider all available positive and negative evidence when assessing whether it is more likely than not that deferred tax assets are recoverable . we consider evidence such as our past operating results , the existence of cumulative losses in previous periods and our forecast of future taxable income . we believe this to be a critical accounting policy because should there be a change in our ability to recover our deferred tax assets , our tax provision would increase in the period in which we determine that the recovery is not likely , as well as decrease in the period in which the assessment of the recoverability of the deferred tax assets reverses , which could have a material impact on our results of operations . we accrue a tax reserve for additional income taxes and interest , which may become payable in future years as a result of audit adjustments by tax authorities . story_separator_special_tag in 2017 , we recorded interest expense of $ 9.4 million related to our convertible senior notes payable due in 2018 and 2020 and $ 0.4 million related to our revolving credit facility . in 2016 , we recorded interest expense of $ 11.7 million related to our convertible senior notes payable , $ 0.9 million related to our revolving credit facility and $ 0.4 million related to the interest component of our maui acquisition earn-out . the overall decrease in 2017 is due to a lower average debt . provision for income taxes our income tax expense , which includes federal , state and foreign income taxes and discrete items , was $ 1.6 million , or an effective tax rate of ( 2.0 % ) for 2017. during 2016 , the income tax expense was $ 4.1 million , or an effective tax rate of 76.8 % . the 2017 tax expense of $ 1.6 million included a discrete tax benefit of $ 0.6 million primarily comprised of return to provision and uncertain tax position adjustments . absent these discrete tax benefits , our effective tax rate for 2017 was ( 2.8 % ) , primarily due to the us federal transition tax , various state taxes and taxes on foreign income . the 2016 tax expense of $ 4.1 million included a discrete tax benefit of $ 0.1 million primarily comprised of return to provision adjustments . absent these discrete tax expenses , our effective tax rate for 2016 was 79.2 % , primarily due to us federal alternative minimum tax , various state taxes and taxes on foreign income . we assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets by jurisdiction . based on our evaluation of all positive and negative evidence , as of december 31 , 2017 , a valuation allowance of $ 89.7 million has been recorded against the deferred tax assets that more likely than not will not be realized . the net deferred tax liabilities of $ 0.8 million consists of the net deferred tax liabilities in the foreign jurisdiction , where we are in a cumulative income position , partially offset by the deferred tax assets in the us related to the amt carryforward , which are fully realizable . comparison of the years ended december 31 , 2016 and 2015 net sales u.s. and canada . net sales of our u.s. and canada segment were $ 478.6 million in 2016 , compared to $ 478.7 million in 2015 , representing a decrease of $ 0.1 million . net sales were flat year-over year primarily due to a decrease in unit sales of various products due to the suspension of shipments to a major u.s. customer and lower than expected unit sales of some movie licensed products , offset by higher unit sales of our disney tsum tsum line of collectibles , disney princess and alice through the looking glass dolls , kids furniture and accessories , and our big figs line . international . net sales of our international segment were $ 131.2 million in 2016 , compared to $ 169.8 million in 2015 , representing a decrease of $ 38.6 million , or 22.7 % . the decrease in net sales was primarily driven by declines in unit sales of various products in the united kingdom and western europe due to the reduced buying power of our customers stemming from the devaluation of the british pound , and lower than expected unit sales of movie licensed product . halloween . net sales of our halloween segment were $ 96.8 million in 2016 , compared to $ 97.2 million in 2015 , representing a decrease of $ 0.4 million , or 0.4 % . the decrease in net sales was primarily due to a decrease in unit sales of a variety of products in 2016. cost of sales u.s. and canada . cost of sales of our u.s. and canada segment was $ 322.7 million , or 67.4 % of related net sales in 2016 compared to $ 335.0 million , or 70.0 % of related net sales in 2015 , representing a decrease of $ 12.3 million , or 3.7 % . the decrease in cost of sales as a percentage of net sales , year over year , is due to reduced costing of legacy products and product mix , partially offset by increased product tooling driven by new product introductions in 2016. depreciation of molds and tools for the segment increased slightly in 2016 due to an increase in new product tooling driven by product introductions in 2016 . 31 international . cost of sales of our international segment was $ 89.2 million , or 68.0 % of related net sales in 2016 compared to $ 110.2 million , or 64.9 % of related net sales in 2015 , representing a decrease of $ 21.0 million , or 19.1 % . the decrease in cost of sales is a direct function of lower overall unit sales . the increase as a percentage of net sales , year-over-year , is due to the change in product mix to relatively higher cost product and an increase in the average royalty rate . the increase in royalties is driven by a shift in the product mix to products with relatively higher royalty rates and an increase in royalty rates on shipments made fob china . our depreciation of molds and tools for the segment showed a modest increase from 2015 due to increased product tooling driven by new product introductions in 2016. halloween . cost of sales of our halloween segment was $ 71.7 million , or 74.1 % of related net sales for 2016 compared to $ 72.0 million , or 74.1 % of related net sales in 2015 , representing a decrease of $ 0.3 million , or 0.4 % .

