as of november 3 , 2017 , we had approximately $ 5 in accrued interest and penalties story_separator_special_tag for a complete understanding , this management 's discussion and analysis of financial condition and results of operations should be read in conjunction with the consolidated financial statements and notes to the consolidated financial statements contained in this report . certain statements under “ management 's discussion and analysis of financial condition and results of operations ” and elsewhere in this report constitute “ forward-looking statements ” within the meaning of the securities act of 1933 and the securities exchange act of 1934. such forward-looking statements involve known and unknown risks , uncertainties , and other factors which may cause the actual results , performance or achievements of bridgford foods corporation to be materially different from any future results , performance or achievements expressed or implied by such forward-looking statements . such factors include , among others , the following : general economic and business conditions ; the impact of competitive products and pricing ; success of operating initiatives ; development and operating costs ; advertising and promotional efforts ; adverse publicity ; acceptance of new product offerings ; consumer trial and frequency ; changes in business strategy or development plans ; availability , terms and deployment of capital ; availability of qualified personnel ; commodity , labor , and employee benefit costs ; changes in , or failure to comply with , government regulations ; weather conditions ; construction schedules ; and other factors referenced in this report . results of operations ( in thousands except percentages ) fiscal year ended november 3 , 2017 ( 53 weeks ) compared to fiscal year ended october 28 , 2016 ( 52 weeks ) net sales-consolidated net sales in fiscal year 2017 increased $ 27,160 ( 19.4 % ) when compared to the prior fiscal year . the changes in net sales were comprised as follows : replace_table_token_5_th net sales-frozen food products segment net sales in the frozen food products segment in fiscal year 2017 increased $ 2,492 ( 5.3 % ) compared to the prior fiscal year . the changes in net sales were comprised as follows : 10 replace_table_token_6_th the increase in net sales in fiscal year 2017 was attributable to higher sales volumes due to changes in product mix including an increase in shelf-stable bread products . selling prices per pound decreased compared to the prior fiscal year . returns activity decreased and promotional activity was lower as a percent of sales due to decreased bid price and menu allowances offered compared to fiscal year 2016. net sales-snack food products segment net sales in the snack food products segment in fiscal year 2017 increased $ 24,668 ( 26.4 % ) compared to the prior fiscal year . the changes in net sales were comprised as follows : replace_table_token_7_th the increase in net sales in fiscal year 2017 was attributable to higher unit sales volume in pounds compared to fiscal year 2016. volume in the beef products category increased significantly with strong increases in pepperoni , jerky and shelf stable meat products also contributing to the volume increase . offsetting the volume increases , sales prices per pound declined due primarily to changes in distribution channel mix , with higher product volumes being sold into more discounted channels . promotional and returns activity were both lower as a percent of sales than the prior fiscal year due to more limited promotional offers on warehouse shipments compared to the prior fiscal year . cost of products sold and gross margin-consolidated cost of products sold from continuing operations increased by $ 20,787 ( 24.5 % ) compared to the prior fiscal year . higher unit sales volume in the snack food products segment was the primary contributing factor to the increase in cost of products sold . overhead spending increased due to significant increases in workers ' compensation , retroactive pay under union contracts , utilities , property taxes and hourly wages . decreases in meat commodity costs year to date partially offset the increase in cost of products sold as described in the segment analysis below . the gross margin decreased from 39.4 % to 36.8 % during fiscal year 2017 compared to the prior fiscal year . replace_table_token_8_th cost of products sold and gross margin–frozen food products segment cost of products sold in the frozen food products segment increased by $ 906 ( 3.1 % ) to $ 30,177 in fiscal year 2017 compared to the prior fiscal year . higher unit volume partially offset by lower flour commodity costs of approximately $ 21 were the primary contributing factors to this increase . the gross margin percentage increased from 37.2 % to 38.5 % during fiscal year 2017 compared to the prior fiscal year . cost of products sold and gross margin–snack food products segment cost of products sold in the snack food products segment increased by $ 19,881 ( 35.8 % ) compared to the prior fiscal year due primarily to higher sales volume which was partially offset by lower meat commodity costs . the cost of meat commodities decreased approximately $ 266 during fiscal year 2017 compared to the prior fiscal year . the gross margin earned in this segment decreased from 40.5 % to 36.1 % during fiscal year 2017 primarily as a result of lower per pound selling prices . story_separator_special_tag 11 selling , general and administrative expenses-consolidated selling , general and administrative expenses ( “ sg & a ” ) in fiscal year 2017 increased $ 4,381 ( 9.9 % ) when compared to the prior fiscal year . the increase in this category did not directly correspond to the change in sales . the table below summarizes the primary expense variances in this category : replace_table_token_9_th higher profits and profit sharing accruals resulted in increased wages and bonus in fiscal year 2017 compared to the prior year . the cash surrender value of life insurance policies increased substantially due to stock market gains compared to fiscal 2016. costs for product advertising increased mainly as a result of higher payments under brand licensing agreements in the snack food products segment during fiscal 2017. the increase in pension costs was due to lower pension discount rates being used to compute future liability estimates . healthcare benefit expense was more favorable compared to claim trends in fiscal 2016. outside storage costs declined due to acquisition of a new facility currently being used to warehouse products prior to shipment . the increase in fuel expense was driven by per gallon fuel price increases compared to the prior fiscal year as a result of higher cost trends in petroleum markets . the reserve for doubtful accounts increased as a direct result of an increase in accounts receivable due to higher sales and extended terms to customers . the major components comprising the increase of “ other sg & a ” expenses were higher workers ' compensation costs , vehicle and general repairs and maintenance . selling , general and administrative expenses-frozen food products segment sg & a expenses in the frozen food products segment increased by $ 229 ( 1.6 % ) to $ 14,706 during fiscal year 2017 compared to the prior fiscal year . the overall increase in sg & a expenses was due to higher wages and bonuses , pension costs and product advertising expenses . selling , general and administrative expenses-refrigerated and snack food products segment sg & a expenses in the snack food products segment increased by $ 4,152 ( 13.9 % ) to $ 34,052 during fiscal year 2017 compared to the prior fiscal year . most of the increase was due to higher sales , higher expense related to licensing agreements , and higher workers ' compensation and pension costs partially offset by higher allocated gains on life insurance . income taxes the effective income tax rate was 31.6 % and 28.3 % in fiscal years 2017 and 2016 , respectively . in fiscal year 2017 , the effective income tax rate differed from the applicable mixed statutory rate of approximately 37.7 % primarily due to the domestic production activities deduction and a change in the liability on unrecognized benefits related to research and development tax credits ( refer to note 4 of notes to the consolidated financial statements for more information ) . liquidity and capital resources ( in thousands except share amounts ) the principal source of our operating cash flow is cash receipts from the sale of our products , net of costs to manufacture , store , market and deliver to customers . the company did not borrow on the line of credit with wells fargo bank , n.a . during fiscal 2017. there were no borrowings outstanding under this line of credit as of november 3 , 2017. the company was in compliance with all loan covenants except the capital expenditure maximum which was subsequently waived in a letter dated december 22 , 2017. we typically fund our operations from cash balances and cash flow generated from operations . we normally expect positive operating cash flows in the first quarter of our fiscal year from the liquidation of inventory and accounts receivable balances related to holiday season sales . we typically build inventories in the third quarter for anticipated promotional sales that occur in the fourth and first quarters . anticipated commodity price trends may also affect cash balances . certain commodities may be purchased in advance of our immediate needs to lower the ultimate cost of processing or to meet customer demand . 12 story_separator_special_tag last two fiscal years , the impact of general price inflation on our financial position and results of operations has not been significant . however , future volatility of general price inflation or deflation and raw material cost and availability could adversely affect our financial results . management is of the opinion that our strong financial position and our capital resources are sufficient to provide for our operating needs and capital expenditures for fiscal year 2018. off-balance sheet arrangements we do not currently have any off balance sheet arrangements within the meaning of item 303 ( a ) ( 4 ) of regulation s-k. 14 contractual obligations we have remained free of interest bearing debt ( excluding capital leases ) for twenty-eight of the last twenty-nine years ( with fiscal year 2014 being the only exception ) and had no other debt or other contractual obligations within the meaning of item 303 ( a ) ( 5 ) of regulation s-k , as of november 3 , 2017. critical accounting policies the preparation of financial statements in conformity with generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the respective reporting periods . actual results could differ from those estimates . amounts estimated related to liabilities for self-insured workers ' compensation , employee healthcare and pension benefits are especially subject to inherent uncertainties and these estimated liabilities may ultimately settle at amounts not originally estimated . we record promotions , returns allowances , bad debt and inventory allowances based on recent and historical trends . management believes its current estimates are reasonable and

cash flows from operating activities : replace_table_token_10_th for the fifty-three weeks ended november 3 , 2017 , net cash provided by operating activities was $ 16,769 , an increase of $ 12,242 compared to the fifty-two weeks ended october 28 , 2016. the net increase in cash provided by operating activities primarily related to net income of $ 8,829 and a reduction in inventory of $ 1,065 partially offset by estimated income tax payments of $ 4,365. during fiscal year 2017 , we funded $ 1,150 towards our defined benefit pension plan . plan funding strategies may be adjusted depending upon economic conditions , investment options , tax deductibility , or legislative changes in funding requirements . our cash conversion cycle ( defined as days of inventory and trade receivables less days of trade payables outstanding ) was equal to 73 days for the fifty-three weeks ended november 3 , 2017 and 89 days for the fifty-two weeks ended october 28 , 2016. the company increased payment terms to certain large customers during fiscal year 2016 which increased the prior fiscal year 's cash conversion cycle . for the fifty-two weeks ended october 28 , 2016 , net cash provided by operating activities was $ 4,527. this result was primarily related to net income . during fiscal year 2016 , we funded $ 1,150 towards our defined benefit pension plan .


 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.
     ```cash flows from operating activities : replace_table_token_10_th for the fifty-three weeks ended november 3 , 2017 , net cash provided by operating activities was $ 16,769 , an increase of $ 12,242 compared to the fifty-two weeks ended october 28 , 2016. the net increase in cash provided by operating activities primarily related to net income of $ 8,829 and a reduction in inventory of $ 1,065 partially offset by estimated income tax payments of $ 4,365. during fiscal year 2017 , we funded $ 1,150 towards our defined benefit pension plan . plan funding strategies may be adjusted depending upon economic conditions , investment options , tax deductibility , or legislative changes in funding requirements . our cash conversion cycle ( defined as days of inventory and trade receivables less days of trade payables outstanding ) was equal to 73 days for the fifty-three weeks ended november 3 , 2017 and 89 days for the fifty-two weeks ended october 28 , 2016. the company increased payment terms to certain large customers during fiscal year 2016 which increased the prior fiscal year 's cash conversion cycle . for the fifty-two weeks ended october 28 , 2016 , net cash provided by operating activities was $ 4,527. this result was primarily related to net income . during fiscal year 2016 , we funded $ 1,150 towards our defined benefit pension plan .
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 Suspicious Activity Report : as of november 3 , 2017 , we had approximately $ 5 in accrued interest and penalties story_separator_special_tag for a complete understanding , this management 's discussion and analysis of financial condition and results of operations should be read in conjunction with the consolidated financial statements and notes to the consolidated financial statements contained in this report . certain statements under “ management 's discussion and analysis of financial condition and results of operations ” and elsewhere in this report constitute “ forward-looking statements ” within the meaning of the securities act of 1933 and the securities exchange act of 1934. such forward-looking statements involve known and unknown risks , uncertainties , and other factors which may cause the actual results , performance or achievements of bridgford foods corporation to be materially different from any future results , performance or achievements expressed or implied by such forward-looking statements . such factors include , among others , the following : general economic and business conditions ; the impact of competitive products and pricing ; success of operating initiatives ; development and operating costs ; advertising and promotional efforts ; adverse publicity ; acceptance of new product offerings ; consumer trial and frequency ; changes in business strategy or development plans ; availability , terms and deployment of capital ; availability of qualified personnel ; commodity , labor , and employee benefit costs ; changes in , or failure to comply with , government regulations ; weather conditions ; construction schedules ; and other factors referenced in this report . results of operations ( in thousands except percentages ) fiscal year ended november 3 , 2017 ( 53 weeks ) compared to fiscal year ended october 28 , 2016 ( 52 weeks ) net sales-consolidated net sales in fiscal year 2017 increased $ 27,160 ( 19.4 % ) when compared to the prior fiscal year . the changes in net sales were comprised as follows : replace_table_token_5_th net sales-frozen food products segment net sales in the frozen food products segment in fiscal year 2017 increased $ 2,492 ( 5.3 % ) compared to the prior fiscal year . the changes in net sales were comprised as follows : 10 replace_table_token_6_th the increase in net sales in fiscal year 2017 was attributable to higher sales volumes due to changes in product mix including an increase in shelf-stable bread products . selling prices per pound decreased compared to the prior fiscal year . returns activity decreased and promotional activity was lower as a percent of sales due to decreased bid price and menu allowances offered compared to fiscal year 2016. net sales-snack food products segment net sales in the snack food products segment in fiscal year 2017 increased $ 24,668 ( 26.4 % ) compared to the prior fiscal year . the changes in net sales were comprised as follows : replace_table_token_7_th the increase in net sales in fiscal year 2017 was attributable to higher unit sales volume in pounds compared to fiscal year 2016. volume in the beef products category increased significantly with strong increases in pepperoni , jerky and shelf stable meat products also contributing to the volume increase . offsetting the volume increases , sales prices per pound declined due primarily to changes in distribution channel mix , with higher product volumes being sold into more discounted channels . promotional and returns activity were both lower as a percent of sales than the prior fiscal year due to more limited promotional offers on warehouse shipments compared to the prior fiscal year . cost of products sold and gross margin-consolidated cost of products sold from continuing operations increased by $ 20,787 ( 24.5 % ) compared to the prior fiscal year . higher unit sales volume in the snack food products segment was the primary contributing factor to the increase in cost of products sold . overhead spending increased due to significant increases in workers ' compensation , retroactive pay under union contracts , utilities , property taxes and hourly wages . decreases in meat commodity costs year to date partially offset the increase in cost of products sold as described in the segment analysis below . the gross margin decreased from 39.4 % to 36.8 % during fiscal year 2017 compared to the prior fiscal year . replace_table_token_8_th cost of products sold and gross margin–frozen food products segment cost of products sold in the frozen food products segment increased by $ 906 ( 3.1 % ) to $ 30,177 in fiscal year 2017 compared to the prior fiscal year . higher unit volume partially offset by lower flour commodity costs of approximately $ 21 were the primary contributing factors to this increase . the gross margin percentage increased from 37.2 % to 38.5 % during fiscal year 2017 compared to the prior fiscal year . cost of products sold and gross margin–snack food products segment cost of products sold in the snack food products segment increased by $ 19,881 ( 35.8 % ) compared to the prior fiscal year due primarily to higher sales volume which was partially offset by lower meat commodity costs . the cost of meat commodities decreased approximately $ 266 during fiscal year 2017 compared to the prior fiscal year . the gross margin earned in this segment decreased from 40.5 % to 36.1 % during fiscal year 2017 primarily as a result of lower per pound selling prices . story_separator_special_tag 11 selling , general and administrative expenses-consolidated selling , general and administrative expenses ( “ sg & a ” ) in fiscal year 2017 increased $ 4,381 ( 9.9 % ) when compared to the prior fiscal year . the increase in this category did not directly correspond to the change in sales . the table below summarizes the primary expense variances in this category : replace_table_token_9_th higher profits and profit sharing accruals resulted in increased wages and bonus in fiscal year 2017 compared to the prior year . the cash surrender value of life insurance policies increased substantially due to stock market gains compared to fiscal 2016. costs for product advertising increased mainly as a result of higher payments under brand licensing agreements in the snack food products segment during fiscal 2017. the increase in pension costs was due to lower pension discount rates being used to compute future liability estimates . healthcare benefit expense was more favorable compared to claim trends in fiscal 2016. outside storage costs declined due to acquisition of a new facility currently being used to warehouse products prior to shipment . the increase in fuel expense was driven by per gallon fuel price increases compared to the prior fiscal year as a result of higher cost trends in petroleum markets . the reserve for doubtful accounts increased as a direct result of an increase in accounts receivable due to higher sales and extended terms to customers . the major components comprising the increase of “ other sg & a ” expenses were higher workers ' compensation costs , vehicle and general repairs and maintenance . selling , general and administrative expenses-frozen food products segment sg & a expenses in the frozen food products segment increased by $ 229 ( 1.6 % ) to $ 14,706 during fiscal year 2017 compared to the prior fiscal year . the overall increase in sg & a expenses was due to higher wages and bonuses , pension costs and product advertising expenses . selling , general and administrative expenses-refrigerated and snack food products segment sg & a expenses in the snack food products segment increased by $ 4,152 ( 13.9 % ) to $ 34,052 during fiscal year 2017 compared to the prior fiscal year . most of the increase was due to higher sales , higher expense related to licensing agreements , and higher workers ' compensation and pension costs partially offset by higher allocated gains on life insurance . income taxes the effective income tax rate was 31.6 % and 28.3 % in fiscal years 2017 and 2016 , respectively . in fiscal year 2017 , the effective income tax rate differed from the applicable mixed statutory rate of approximately 37.7 % primarily due to the domestic production activities deduction and a change in the liability on unrecognized benefits related to research and development tax credits ( refer to note 4 of notes to the consolidated financial statements for more information ) . liquidity and capital resources ( in thousands except share amounts ) the principal source of our operating cash flow is cash receipts from the sale of our products , net of costs to manufacture , store , market and deliver to customers . the company did not borrow on the line of credit with wells fargo bank , n.a . during fiscal 2017. there were no borrowings outstanding under this line of credit as of november 3 , 2017. the company was in compliance with all loan covenants except the capital expenditure maximum which was subsequently waived in a letter dated december 22 , 2017. we typically fund our operations from cash balances and cash flow generated from operations . we normally expect positive operating cash flows in the first quarter of our fiscal year from the liquidation of inventory and accounts receivable balances related to holiday season sales . we typically build inventories in the third quarter for anticipated promotional sales that occur in the fourth and first quarters . anticipated commodity price trends may also affect cash balances . certain commodities may be purchased in advance of our immediate needs to lower the ultimate cost of processing or to meet customer demand . 12 story_separator_special_tag last two fiscal years , the impact of general price inflation on our financial position and results of operations has not been significant . however , future volatility of general price inflation or deflation and raw material cost and availability could adversely affect our financial results . management is of the opinion that our strong financial position and our capital resources are sufficient to provide for our operating needs and capital expenditures for fiscal year 2018. off-balance sheet arrangements we do not currently have any off balance sheet arrangements within the meaning of item 303 ( a ) ( 4 ) of regulation s-k. 14 contractual obligations we have remained free of interest bearing debt ( excluding capital leases ) for twenty-eight of the last twenty-nine years ( with fiscal year 2014 being the only exception ) and had no other debt or other contractual obligations within the meaning of item 303 ( a ) ( 5 ) of regulation s-k , as of november 3 , 2017. critical accounting policies the preparation of financial statements in conformity with generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the respective reporting periods . actual results could differ from those estimates . amounts estimated related to liabilities for self-insured workers ' compensation , employee healthcare and pension benefits are especially subject to inherent uncertainties and these estimated liabilities may ultimately settle at amounts not originally estimated . we record promotions , returns allowances , bad debt and inventory allowances based on recent and historical trends . management believes its current estimates are reasonable and

