catalog sales in the wps segment declined , but were partially offset by sales growth in the digital channel . gross margin declined 0.1 % to $ 558.3 million in fiscal 2017 from $ 558.8 million in fiscal 2016 . as a percentage of sales , gross margin increased to 50.1 % in fiscal 2017 from 49.9 % in fiscal 2016 . the increase in gross margin percentage was primarily due to our on-going efforts to streamline manufacturing processes and drive operational efficiencies in manufacturing facilities . these efforts resulted in reduced material and labor costs compared to the same periods in the prior year . gross margin increased 0.1 % to $ 558.8 million in fiscal 2016 from $ 558.4 million in fiscal 2015 . as a percentage of sales , gross margin increased to 49.9 % in fiscal 2016 from 47.7 % in fiscal 2015 . in fiscal 2015 we incurred on-going costs related to facility consolidation activities primarily in our americas region which reduced our gross margin percentage to below historical normal levels . these facility consolidation activities were completed during fiscal 2015 , therefore the increase in gross margin percentage in 2016 was primarily due to our on-going efforts to enhance operational efficiencies in the newly consolidated facilities . research and development expenses increased to $ 39.6 million in fiscal 2017 from $ 35.8 million in fiscal 2016 . the increase in r & d spending in fiscal 2017 compared to the prior year was primarily due to the hiring of r & d personnel as well as increased spending on printing and software solutions projects within our ids businesses . research and development expenses decreased to $ 35.8 million in fiscal 2016 from $ 36.7 million in fiscal 2015 . the decrease in r & d spending in fiscal 2016 compared to the prior year was primarily due to efficiency gains within the r & d function and the strengthening of the u.s. dollar , which were partially offset by an increase in our investment in new product development within the ids segment to drive organic growth . 16 selling , general and administrative expenses ( `` sg & a `` ) include selling costs directly attributed to the ids and wps segments , as well as certain other expenses including finance , information technology , human resources , and other administrative expenses . sg & a expenses decreased 4.3 % to $ 387.7 million in fiscal 2017 compared to $ 405.1 million in fiscal 2016 . the decrease in sg & a expense from the prior year was primarily due to reduced selling expenses from efficiency gains , continued efforts to control general and administrative costs , and foreign currency translation . these reductions were partially offset by increases in incentive-based compensation . sg & a expense decreased to $ 405.1 million in fiscal 2016 compared to $ 422.7 million in fiscal 2015 . the decrease in sg & a expense from the prior year was primarily due to reduced selling expenses from efficiency gains , continued efforts to control general and administrative costs , and foreign currency translation . these reductions were partially offset by increases in incentive-based compensation . in fiscal 2014 , the company announced a restructuring plan to consolidate facilities in the americas , europe and asia . the company implemented this restructuring plan to enhance customer service , improve efficiency of our operations and reduce operating expenses . restructuring activities related to facility consolidation activities extended into fiscal 2015 and were complete at the end of the fiscal year . in connection with this plan , the company incurred restructuring charges of $ 16.8 million in fiscal 2015. these charges consisted of $ 5.4 million of employee separation costs , $ 5.2 million of facility closure related costs , $ 2.0 million of contract termination costs , and $ 4.2 million of non-cash asset write-offs . the charges for employee separation costs consisted of severance pay , outplacement services , medical and other benefits . non-cash asset write-offs consisted mainly of fixed assets written off in conjunction with facility consolidations . of the $ 16.8 million recognized in fiscal 2015 , $ 12.1 million was incurred within the ids segment and $ 4.7 million was incurred within the wps segment . the company performed its annual goodwill impairment assessment on may 1 , 2017 and 2016 , and subsequently concluded that the fair value of the goodwill was substantially in excess of its carrying value at 20 % or greater for all of the reporting units . no impairment charges were recorded in fiscal 2017 or 2016 . in conjunction with the goodwill impairment analysis , management also concluded that no other long-lived assets were impaired . the company 's annual goodwill impairment assessment performed in fiscal 2015 indicated the wps americas and wps apac reporting units were impaired . in conjunction with the goodwill impairment analysis , management concluded that other long-lived assets were impaired . impairment charges were $ 46.9 million in fiscal 2015 , which consisted of $ 37.1 million in goodwill impairment charges associated with the wps americas and wps apac reporting units and $ 9.8 million related to the impairment of certain other long-lived assets . operating income increased to $ 131.0 million in fiscal 2017 compared to $ 117.9 million in 2016 . the increase of $ 13.1 million in operating income was primarily due to reduced sg & a expense in both the ids and wps segments , as well as reductions due to foreign currency translation . the decrease in sg & a leading to the increase in operating income in fiscal 2017 was partially offset by an increase in r & d spending . story_separator_special_tag changes in product mix from year to year , timing differences in instituting price changes , and the large amount of part numbers make it impracticable to accurately define the impact of inflation on profit margins . critical accounting estimates management 's discussion and analysis of the company 's financial condition and results of operations are based upon the company 's consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . the company bases these estimates and judgments on historical experience and on various other assumptions that are believed to be reasonable under the circumstances . actual results may differ from these estimates and judgments . the company believes the following accounting estimates are most critical to an understanding of its financial statements . estimates are considered to be critical if they meet both of the following criteria : ( 1 ) the estimate requires assumptions about material matters that are uncertain at the time the accounting estimates are made , and ( 2 ) material changes in the estimates are reasonably likely from period to period . for a detailed discussion on the application of these and other accounting estimates , refer to note 1 to the company 's consolidated financial statements . income taxes we operate in numerous taxing jurisdictions and are subject to regular examinations by u.s. federal , state and non-u.s. taxing authorities . our income tax positions are based on research and interpretations of the income tax laws and rulings in each of the jurisdictions in which we do business . due to the ambiguity of laws and rulings in each jurisdiction , the differences and interplay in tax laws between those jurisdictions , the uncertainty of how underlying facts may be construed and the inherent uncertainty in estimating the final resolution of complex tax audit matters , our estimates of income tax liabilities may differ from actual payments or assessments . while we have support for the positions we take on our tax returns , taxing authorities may assert interpretations of laws and facts and may challenge cross-jurisdictional transactions . the company generally re-evaluates the technical merits of its tax positions and recognizes an uncertain tax benefit when ( i ) there is completion of a tax audit ; ( ii ) there is a change in applicable tax law including a tax case ruling or legislative guidance ; or ( iii ) there is an expiration of the statute of limitations . the gross liability for unrecognized tax benefits , excluding interest and penalties , was $ 18.4 million and $ 15.3 million as of july 31 , 2017 and 2016 , respectively . the entire amount of unrecognized tax benefits as of july 31 , 2017 and 2016 , would reduce the effective income tax rate if recognized . accrued interest and penalties related to unrecognized tax benefits were $ 5.2 million and $ 4.3 million as of july 31 , 2017 and 2016 , respectively . we recognize interest and penalties related to unrecognized tax benefits in income tax expense on the consolidated statements of earnings . we believe it is reasonably possible that the amount of gross unrecognized tax benefits could be reduced by up to $ 1.7 million in the next twelve months as a result of the resolution of worldwide tax matters , tax audit settlements , amended tax filings , and or statute expirations , which would be the maximum amount that would be recognized through the consolidated statements of earnings as an income tax benefit . we recorded a valuation allowance for a portion of our deferred tax assets related to net operating loss and tax credit carry-forwards ( `` carry-forwards `` ) and certain temporary differences in the amount of $ 38.6 million at july 31 , 2017 , and $ 38.0 million at july 31 , 2016 , based on the projected profitability of the entity in the respective tax jurisdiction . the valuation allowance is based on an evaluation of the uncertainty that the carry-forwards and certain temporary differences will be realized . our income would increase if we determine we will be able to use more carry-forwards or certain temporary differences than currently expected . conversely , our income would decrease if we determine we are unable to realize our deferred tax assets in the future . the company does not provide for u.s. deferred taxes on cumulative earnings of non-u.s. affiliates and associated companies that have been reinvested indefinitely . as of july 31 , 2017 , we have not provided u.s. deferred taxes for $ 244.1 million of such earnings , since these earnings have been , and under current plans will continue to be , permanently reinvested outside the u.s. at july 31 , 2017 , approximately $ 94.9 million of the company 's cash and cash equivalents were held outside the united states . 25 goodwill and other indefinite-lived intangible assets the allocation of purchase price for business combinations requires management estimates and judgment as to expectations for future cash flows of the acquired business and the allocation of those cash flows to identifiable intangible assets in determining the estimated fair value for purchase price allocation purposes . if the actual results differ from the estimates and judgments used in these estimates , the amounts recorded in the financial statements could result in a possible impairment of the intangible assets and goodwill or require acceleration of the amortization expense of finite-lived intangible assets . in addition , accounting guidance requires that goodwill and other indefinite-lived intangible assets be tested at least annually for impairment . if circumstances or events prior to the date of the required annual assessment indicate that , in

net cash used in investing activities was $ 15.3 million during fiscal 2017 , compared to $ 15.4 million in the prior year . net cash used in financing activities was $ 136.2 million during fiscal 2017 , compared to $ 99.6 million during the prior year . the increase in cash used in financing activities of $ 35.1 million was primarily due to an increase of $ 75.3 million in credit facility and debt repayments in the current year , which was partially offset by a $ 14.5 million increase in proceeds from stock option exercises in the current year . the remainder of the change was due to $ 23.6 million of cash used for share repurchases in the prior year , while no shares were repurchased in the current year . the effect of fluctuations in exchange rates increased cash balances by $ 0.2 million in fiscal 2017 , primarily due to cash balances held in certain currencies that appreciated against the u.s. dollar during the current fiscal year . fiscal 2016 vs. 2015 net cash provided by operating activities increased to $ 139.0 million during fiscal 2016 compared to $ 93.3 million in the prior year . the increase in cash provided by operating activities of $ 45.7 million was primarily due to an improvement in working capital of $ 14.0 million and an increase in net earnings compared to the prior fiscal year .


 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.
     ```net cash used in investing activities was $ 15.3 million during fiscal 2017 , compared to $ 15.4 million in the prior year . net cash used in financing activities was $ 136.2 million during fiscal 2017 , compared to $ 99.6 million during the prior year . the increase in cash used in financing activities of $ 35.1 million was primarily due to an increase of $ 75.3 million in credit facility and debt repayments in the current year , which was partially offset by a $ 14.5 million increase in proceeds from stock option exercises in the current year . the remainder of the change was due to $ 23.6 million of cash used for share repurchases in the prior year , while no shares were repurchased in the current year . the effect of fluctuations in exchange rates increased cash balances by $ 0.2 million in fiscal 2017 , primarily due to cash balances held in certain currencies that appreciated against the u.s. dollar during the current fiscal year . fiscal 2016 vs. 2015 net cash provided by operating activities increased to $ 139.0 million during fiscal 2016 compared to $ 93.3 million in the prior year . the increase in cash provided by operating activities of $ 45.7 million was primarily due to an improvement in working capital of $ 14.0 million and an increase in net earnings compared to the prior fiscal year .
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 Suspicious Activity Report : catalog sales in the wps segment declined , but were partially offset by sales growth in the digital channel . gross margin declined 0.1 % to $ 558.3 million in fiscal 2017 from $ 558.8 million in fiscal 2016 . as a percentage of sales , gross margin increased to 50.1 % in fiscal 2017 from 49.9 % in fiscal 2016 . the increase in gross margin percentage was primarily due to our on-going efforts to streamline manufacturing processes and drive operational efficiencies in manufacturing facilities . these efforts resulted in reduced material and labor costs compared to the same periods in the prior year . gross margin increased 0.1 % to $ 558.8 million in fiscal 2016 from $ 558.4 million in fiscal 2015 . as a percentage of sales , gross margin increased to 49.9 % in fiscal 2016 from 47.7 % in fiscal 2015 . in fiscal 2015 we incurred on-going costs related to facility consolidation activities primarily in our americas region which reduced our gross margin percentage to below historical normal levels . these facility consolidation activities were completed during fiscal 2015 , therefore the increase in gross margin percentage in 2016 was primarily due to our on-going efforts to enhance operational efficiencies in the newly consolidated facilities . research and development expenses increased to $ 39.6 million in fiscal 2017 from $ 35.8 million in fiscal 2016 . the increase in r & d spending in fiscal 2017 compared to the prior year was primarily due to the hiring of r & d personnel as well as increased spending on printing and software solutions projects within our ids businesses . research and development expenses decreased to $ 35.8 million in fiscal 2016 from $ 36.7 million in fiscal 2015 . the decrease in r & d spending in fiscal 2016 compared to the prior year was primarily due to efficiency gains within the r & d function and the strengthening of the u.s. dollar , which were partially offset by an increase in our investment in new product development within the ids segment to drive organic growth . 16 selling , general and administrative expenses ( `` sg & a `` ) include selling costs directly attributed to the ids and wps segments , as well as certain other expenses including finance , information technology , human resources , and other administrative expenses . sg & a expenses decreased 4.3 % to $ 387.7 million in fiscal 2017 compared to $ 405.1 million in fiscal 2016 . the decrease in sg & a expense from the prior year was primarily due to reduced selling expenses from efficiency gains , continued efforts to control general and administrative costs , and foreign currency translation . these reductions were partially offset by increases in incentive-based compensation . sg & a expense decreased to $ 405.1 million in fiscal 2016 compared to $ 422.7 million in fiscal 2015 . the decrease in sg & a expense from the prior year was primarily due to reduced selling expenses from efficiency gains , continued efforts to control general and administrative costs , and foreign currency translation . these reductions were partially offset by increases in incentive-based compensation . in fiscal 2014 , the company announced a restructuring plan to consolidate facilities in the americas , europe and asia . the company implemented this restructuring plan to enhance customer service , improve efficiency of our operations and reduce operating expenses . restructuring activities related to facility consolidation activities extended into fiscal 2015 and were complete at the end of the fiscal year . in connection with this plan , the company incurred restructuring charges of $ 16.8 million in fiscal 2015. these charges consisted of $ 5.4 million of employee separation costs , $ 5.2 million of facility closure related costs , $ 2.0 million of contract termination costs , and $ 4.2 million of non-cash asset write-offs . the charges for employee separation costs consisted of severance pay , outplacement services , medical and other benefits . non-cash asset write-offs consisted mainly of fixed assets written off in conjunction with facility consolidations . of the $ 16.8 million recognized in fiscal 2015 , $ 12.1 million was incurred within the ids segment and $ 4.7 million was incurred within the wps segment . the company performed its annual goodwill impairment assessment on may 1 , 2017 and 2016 , and subsequently concluded that the fair value of the goodwill was substantially in excess of its carrying value at 20 % or greater for all of the reporting units . no impairment charges were recorded in fiscal 2017 or 2016 . in conjunction with the goodwill impairment analysis , management also concluded that no other long-lived assets were impaired . the company 's annual goodwill impairment assessment performed in fiscal 2015 indicated the wps americas and wps apac reporting units were impaired . in conjunction with the goodwill impairment analysis , management concluded that other long-lived assets were impaired . impairment charges were $ 46.9 million in fiscal 2015 , which consisted of $ 37.1 million in goodwill impairment charges associated with the wps americas and wps apac reporting units and $ 9.8 million related to the impairment of certain other long-lived assets . operating income increased to $ 131.0 million in fiscal 2017 compared to $ 117.9 million in 2016 . the increase of $ 13.1 million in operating income was primarily due to reduced sg & a expense in both the ids and wps segments , as well as reductions due to foreign currency translation . the decrease in sg & a leading to the increase in operating income in fiscal 2017 was partially offset by an increase in r & d spending . story_separator_special_tag changes in product mix from year to year , timing differences in instituting price changes , and the large amount of part numbers make it impracticable to accurately define the impact of inflation on profit margins . critical accounting estimates management 's discussion and analysis of the company 's financial condition and results of operations are based upon the company 's consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . the company bases these estimates and judgments on historical experience and on various other assumptions that are believed to be reasonable under the circumstances . actual results may differ from these estimates and judgments . the company believes the following accounting estimates are most critical to an understanding of its financial statements . estimates are considered to be critical if they meet both of the following criteria : ( 1 ) the estimate requires assumptions about material matters that are uncertain at the time the accounting estimates are made , and ( 2 ) material changes in the estimates are reasonably likely from period to period . for a detailed discussion on the application of these and other accounting estimates , refer to note 1 to the company 's consolidated financial statements . income taxes we operate in numerous taxing jurisdictions and are subject to regular examinations by u.s. federal , state and non-u.s. taxing authorities . our income tax positions are based on research and interpretations of the income tax laws and rulings in each of the jurisdictions in which we do business . due to the ambiguity of laws and rulings in each jurisdiction , the differences and interplay in tax laws between those jurisdictions , the uncertainty of how underlying facts may be construed and the inherent uncertainty in estimating the final resolution of complex tax audit matters , our estimates of income tax liabilities may differ from actual payments or assessments . while we have support for the positions we take on our tax returns , taxing authorities may assert interpretations of laws and facts and may challenge cross-jurisdictional transactions . the company generally re-evaluates the technical merits of its tax positions and recognizes an uncertain tax benefit when ( i ) there is completion of a tax audit ; ( ii ) there is a change in applicable tax law including a tax case ruling or legislative guidance ; or ( iii ) there is an expiration of the statute of limitations . the gross liability for unrecognized tax benefits , excluding interest and penalties , was $ 18.4 million and $ 15.3 million as of july 31 , 2017 and 2016 , respectively . the entire amount of unrecognized tax benefits as of july 31 , 2017 and 2016 , would reduce the effective income tax rate if recognized . accrued interest and penalties related to unrecognized tax benefits were $ 5.2 million and $ 4.3 million as of july 31 , 2017 and 2016 , respectively . we recognize interest and penalties related to unrecognized tax benefits in income tax expense on the consolidated statements of earnings . we believe it is reasonably possible that the amount of gross unrecognized tax benefits could be reduced by up to $ 1.7 million in the next twelve months as a result of the resolution of worldwide tax matters , tax audit settlements , amended tax filings , and or statute expirations , which would be the maximum amount that would be recognized through the consolidated statements of earnings as an income tax benefit . we recorded a valuation allowance for a portion of our deferred tax assets related to net operating loss and tax credit carry-forwards ( `` carry-forwards `` ) and certain temporary differences in the amount of $ 38.6 million at july 31 , 2017 , and $ 38.0 million at july 31 , 2016 , based on the projected profitability of the entity in the respective tax jurisdiction . the valuation allowance is based on an evaluation of the uncertainty that the carry-forwards and certain temporary differences will be realized . our income would increase if we determine we will be able to use more carry-forwards or certain temporary differences than currently expected . conversely , our income would decrease if we determine we are unable to realize our deferred tax assets in the future . the company does not provide for u.s. deferred taxes on cumulative earnings of non-u.s. affiliates and associated companies that have been reinvested indefinitely . as of july 31 , 2017 , we have not provided u.s. deferred taxes for $ 244.1 million of such earnings , since these earnings have been , and under current plans will continue to be , permanently reinvested outside the u.s. at july 31 , 2017 , approximately $ 94.9 million of the company 's cash and cash equivalents were held outside the united states . 25 goodwill and other indefinite-lived intangible assets the allocation of purchase price for business combinations requires management estimates and judgment as to expectations for future cash flows of the acquired business and the allocation of those cash flows to identifiable intangible assets in determining the estimated fair value for purchase price allocation purposes . if the actual results differ from the estimates and judgments used in these estimates , the amounts recorded in the financial statements could result in a possible impairment of the intangible assets and goodwill or require acceleration of the amortization expense of finite-lived intangible assets . in addition , accounting guidance requires that goodwill and other indefinite-lived intangible assets be tested at least annually for impairment . if circumstances or events prior to the date of the required annual assessment indicate that , in

