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refer to the results of continuing operations section of item 7 for further discussion and analysis of our restructuring programs . new operating structure implemented in fiscal 2017 in order to take advantage of the growth opportunities of our widia brand , we implemented a new operating structure . 16 a key attribute of the new structure is the establishment of the widia operating segment . in order to better lever the opportunities that lie in this business , in addition to being more agile and competitive in the marketplace , we are placing higher levels of focus , determination and leadership in the business . industrial and widia in 2017 will be formed from the 2016 industrial segment . we will have three reportable operating segments going forward : industrial , widia and infrastructure . results of continuing operations sales sales of $ 2,098.4 million in 2016 decreased 21 percent from $ 2,647.2 million in 2015 reflecting an 11 percent organic sales decline , a 5 percent divestiture impact , and a 5 percent unfavorable currency exchange impact . sales decreased by 30 percent in the infrastructure segment and 13 percent in the industrial segment . drivers of the organic sales decrease were 28 percent in energy , 15 percent in earthworks , 11 percent in general engineering and 4 percent in transportation , while aerospace and defense remained flat . sales of $ 2,647.2 million in 2015 decreased 7 percent from $ 2,837.2 million in 2014 reflecting an 5 percent organic sales decline and a 4 percent unfavorable currency exchange impact , offset by 2 percent increase from prior year acquisition and divestiture activity . sales decreased by 10 percent in the infrastructure segment and 4 percent in the industrial segment . drivers of the organic sales decrease , were earthworks of 10 percent , energy markets of 10 percent , aerospace and defense of 6 percent , transportation of 1 percent and general engineering of 1 percent . gross profit gross profit decreased $ 189.9 million to $ 616.1 million in 2016 from $ 806.0 million in 2015 . this decrease was primarily due to organic sales decline , unfavorable business mix in both segments , lower fixed cost absorption , unfavorable currency exchange and divestiture impact , offset partially by lower raw material costs and restructuring benefits . the gross profit margin for 2016 was 29.4 percent compared to 30.4 percent in 2015 . gross profit decreased $ 91.0 million to $ 806.0 million in 2015 from $ 897.0 million in 2014 . the decrease was primarily due to organic sales decline , unfavorable currency exchange and unfavorable business mix in the infrastructure segment , offset partially by restructuring benefits , contributions from the tmb acquisition and the benefits of a nonrecurring inventory charge of $ 6.4 million that occurred in the prior year . the gross profit margin for 2015 was 30.4 percent compared to 31.6 percent in 2014 . operating expense operating expense in 2016 was $ 495.0 million , a decrease of $ 59.9 million , or 10.8 percent , compared to $ 554.9 million in 2015 . the decrease is primarily due to divestiture impact of $ 18.6 million , favorable foreign currency exchange impacts of $ 23.3 million , restructuring benefits and the impact of cost reduction initiatives , offset partially by $ 8.3 million higher restructuring related charges . operating expense in 2015 was $ 554.9 million , a decrease of $ 34.9 million , or 5.9 percent , compared to $ 589.8 million in 2014 . the decrease is primarily due to foreign currency exchange impacts of $ 24.7 million , restructuring benefits and the impact of cost reduction initiatives , offset partially by annual merit increase . restructuring and related charges and asset impairment charges restructuring and related charges during 2016 , we recorded restructuring and related charges of $ 53.5 million . of this amount , restructuring charges totaled $ 30.0 million . restructuring-related charges of $ 7.3 million were recorded in cost of goods sold and $ 16.2 million in operating expense during 2016 . total restructuring and related charges since the inception of our restructuring plans through 2016 were $ 130.7 million . see note 15 in our consolidated financial statements set forth in item 8 ( note 15 ) . during 2015 , we recorded restructuring and related charges of $ 58.1 million . of this amount , restructuring charges totaled $ 42.1 million , of which $ 1.5 million were charges related to inventory disposals and were recorded in cost of goods sold . restructuring-related charges of $ 8.2 million were recorded in cost of goods sold and $ 7.8 million in operating expense during 2015 . during 2014 , we recorded restructuring and related charges of $ 19.1 million . of this amount , restructuring charges totaled $ 17.8 million , of which $ 0.2 million were charges related to inventory disposals and were recorded in cost of goods sold . restructuring-related charges of $ 1.2 million were recorded in cost of goods sold and $ 0.1 million in operating expense during 2014 . 17 phase 1 we implemented restructuring actions in conjunction with our phase 1 restructuring program to achieve synergies across kennametal as a result of the tmb acquisition by consolidating operations among both organizations , reducing administrative overhead and leveraging the supply chain . these restructuring actions were substantially completed in fiscal 2016 and were mostly cash expenditures . estimated ongoing annualized savings for this phase is $ 40- $ 45 million , and we incurred inception to date charges of $ 59.3 million . ongoing restructuring programs we are currently implementing restructuring actions to streamline the company 's cost structure . story_separator_special_tag the decrease in the portion of our debt subject to variable rates was due to the decrease in the balance outstanding on our revolving credit facility . except as noted below , we consider substantially all of the unremitted earnings of our non-u.s. subsidiaries that have not previously been taxed in the u.s. to be permanently reinvested . as of june 30 , 2016 , cash and cash equivalents of $ 55.3 million would not be available for use in the u.s. on a long-term basis without incurring u.s. federal and state income tax consequences . we have not repatriated , nor do we anticipate the need to repatriate , funds to the u.s. to satisfy domestic liquidity needs arising in the ordinary course of business or associated with our domestic debt service requirements . notwithstanding the above , we redeployed cash from certain non-u.s. subsidiaries related to the transaction specified in note 4. as such , the year ended june 30 , 2016 includes a tax charge of $ 4.7 million related to this change in assertion with respect to a portion of our foreign subsidiaries ' undistributed earnings , which are no longer considered permanently reinvested . the remaining undistributed earnings of our foreign subsidiaries continue to be indefinitely reinvested and would not be available for use in the u.s. on a long term basis without incurring u.s. federal and state income tax consequences . at june 30 , 2016 , we had cash and cash equivalents of $ 161.6 million . total kennametal shareholders ' equity was $ 964.3 million and total debt was $ 701.5 million . our current senior credit ratings are at investment grade levels . we believe that our current financial position , liquidity and credit ratings provide us access to the capital markets . we continue to closely monitor our liquidity position and the condition of the capital markets , as well as the counterparty risk of our credit providers . 21 the following is a summary of our contractual obligations and other commercial commitments as of june 30 , 2016 ( in thousands ) : replace_table_token_8_th ( 1 ) long-term debt includes interest obligations of $ 101.0 million . interest obligations were determined assuming interest rates as of june 30 , 2016 remain constant . ( 2 ) notes payable includes interest obligations of $ 0.1 million . interest obligations were determined assuming interest rates as of june 30 , 2016 remain constant . ( 3 ) annual payments are expected to continue into the foreseeable future at the amounts noted in the table . ( 4 ) capital leases include interest obligations of $ 0.1 million . ( 5 ) purchase obligations consist of purchase commitments for materials , supplies and machinery and equipment as part of the ordinary conduct of business . purchase obligations with variable price provisions were determined assuming market prices as of june 30 , 2016 remain constant . ( 6 ) unrecognized tax benefits are positions taken or expected to be taken on an income tax return that may result in additional payments to tax authorities . these amounts include interest of $ 0.3 million and penalty of $ 0.3 million accrued related to such positions as of june 30 , 2016 . positions for which we are not able to reasonably estimate the timing of potential future payments are included in the ‘ thereafter ' column . if a tax authority agrees with the tax position taken or expected to be taken or the applicable statute of limitations expires , then additional payments will not be necessary . replace_table_token_9_th the standby letters of credit relate to insurance and other activities . the guarantees are non-debt guarantees with financial institutions , which are required primarily for security deposits , product performance guarantees and advances . cash flow provided by operating activities during 2016 , cash flow provided by operating activities was $ 219.3 million , compared to $ 351.4 million in 2015 . during 2016 , cash flow provided by operating activities for the current year consisted of net income and non-cash items amounting to $ 163.8 million and changes in certain assets and liabilities netting to $ 55.5 million . these changes were primarily driven by a decrease in inventory of $ 69.6 million due to our continued focus on working capital management and a decrease in accounts receivable of $ 32.7 million due to lower sales volume . partially offsetting these inflows were a decrease in accrued income taxes of $ 25.2 million driven by payment of a capital gains tax related to a prior period tax reorganization and a decrease in accounts payable and accrued liabilities of $ 2.2 million . during 2015 , cash flow provided by operating activities was $ 351.4 million , compared to $ 271.9 million in 2014 . during 2015 , cash flow provided by operating activities for the current year consisted of net income and non-cash items amounting to $ 279.1 million , offset by changes in certain assets and liabilities netting to $ 72.4 million . these changes were primarily driven by a decrease in inventory of $ 70.9 million due to improved working capital management , a decrease in accounts receivable of $ 46.6 million due to lower sales volumes and a decrease in accounts payable and accrued liabilities of $ 8.2 million . during 2014 , cash flow provided by operating activities was $ 271.9 million . cash flow provided by operating activities consisted of net income and non-cash items amounting to $ 338.7 million , offset by changes in certain assets and liabilities netting to $ 66.8 million . these changes were primarily driven by an increase in accounts receivable of $ 45.0 million due to higher sales volumes and a decrease in accrued income taxes of $ 12.5 million . 22 story_separator_special_tag style= `` font-family : inherit ; font-size:10pt ; `` > decrease of borrowings outstanding on the revolver , a
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash flow used for investing activities cash flow used for investing activities was $ 47.9 million for 2016 , a decrease of $ 36.6 million , compared to $ 84.6 million in 2015 . during 2016 , cash flow used for investing activities included capital expenditures , net of $ 104.7 million , which consisted primarily of equipment upgrades . partially offsetting this outflow was an inflow of $ 56.1 million of proceeds from the divestiture of non-core businesses . cash flow used for investing activities was $ 84.6 million for 2015 , a decrease of $ 655.6 million , compared to $ 740.2 million in 2014 . during 2015 , cash flow used for investing activities included capital expenditures , net were $ 84.8 million , which consisted primarily of equipment upgrades . cash flow used for investing activities was $ 740.2 million for 2014 . during 2014 , cash flow used for investing activities included the tmb acquisition for $ 607.0 million , net of cash acquired , the emura acquisition for $ 25.6 million cash paid in 2014 and $ 2.0 million related to a small acquisition in the infrastructure segment . capital expenditures , net were $ 116.1 million , which consisted primarily of equipment upgrades . these cash outflows were partially offset by $ 10.2 million of proceeds from sale of a small non-core business acquired as part of the tmb acquisition . cash flow ( used for ) provided by financing activities cash flow used for financing activities was $ 110.5 million for 2016 , compared to $ 333.0 million in 2015 . during 2016 , cash flow used for financing activities included $ 63.7 million of cash dividends paid to shareholders and $ 50.8 million net decrease in borrowings , partially offset by $ 4.5 million of dividend reinvestment and the effect of employee benefit and stock plans . cash flow used for financing activities was $ 333.0 million for 2015 , compared to cash flow provided by financing activities of $ 270.4 million in 2014 .
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15 our consolidated financial results in 2019 reflected year-over-year improvement in many areas , driven by both organic growth initiatives and benefits from our recent acquisitions : net sales for the year ended december 31 , 2019 increased by $ 131.8 million , or 12 % , to $ 1,221.3 million , with organic sales growth of approximately 8 % . operating income for the year ended december 31 , 2019 increased by $ 25.6 million , or 21 % , to $ 147.1 million . adjusted ebitda * for the year ended december 31 , 2019 was $ 191.3 million , up $ 32.7 million , or 21 % , and our adjusted ebitda margin * for the year ended december 31 , 2019 was 15.7 % , up from 14.6 % in 2018 . income from continuing operations for the year ended december 31 , 2019 was $ 108.4 million , up $ 14.7 million , or 16 % , from $ 93.7 million in the prior year . this equated to diluted earnings per share of $ 1.76 , up 15 % from $ 1.53 per share last year . cash flow from continuing operating activities for the year ended december 31 , 2019 was $ 103.4 million , an increase of $ 10.6 million , or 11 % . total orders for the year ended december 31 , 2019 were $ 1,269.0 million , an increase of $ 95.8 million , or 8 % . our consolidated backlog at december 31 , 2019 was $ 386.9 million , up $ 49.2 million , or 15 % , from $ 337.7 million at december 31 , 2018 . * the company uses adjusted ebitda and adjusted ebitda margin as additional measures which are representative of its underlying performance and to improve the comparability of results across reporting periods . refer to item 6. selected financial data for further discussion regarding these non-gaap metrics and a reconciliation of each to the most comparable gaap measure for each of the periods presented . 16 results of operations the following table summarizes our consolidated statements of operations as of , and for the years ended , december 31 , 2019 , 2018 and 2017 , and illustrates the key financial indicators used to assess our consolidated financial results : replace_table_token_3_th ( a ) the company uses adjusted ebitda and adjusted ebitda margin as additional measures which are representative of its underlying performance and to improve the comparability of results across reporting periods . refer to item 6. selected financial data for further discussion regarding these non-gaap metrics and a reconciliation of each to the most comparable gaap measure for each of the periods presented . year ended december 31 , 2019 vs. year ended december 31 , 2018 net sales net sales increased by $ 131.8 million , or 12 % , for the year ended december 31 , 2019 , compared to the prior year . within the environmental solutions group , net sales increased by $ 129.4 million , or 15 % , primarily due to a $ 39.7 million contribution from mrl , and increases in shipments of safe-digging trucks , street sweepers , and dump truck bodies of $ 38.1 million , $ 18.0 million , and $ 11.9 million , respectively . in addition , aftermarket revenues increased by $ 15.9 million , represented by higher rental income and improved parts and service sales . within the safety and security systems group , net sales increased by $ 2.4 million , or 1 % , primarily due to improvements in industrial signaling equipment and public safety products of $ 6.6 million and $ 1.4 million , respectively , partially offset by a $ 2.7 million reduction in sales of warning systems and an unfavorable foreign currency translation impact of $ 2.9 million . cost of sales for the year ended december 31 , 2019 , cost of sales increased by $ 91.1 million , or 11 % , compared to the prior year , largely due to an increase of $ 94.6 million , or 14 % , within the environmental solutions group , primarily attributable to increased sales volumes , additional cost of sales from the mrl acquisition , higher material costs , and a $ 4.6 million increase in depreciation expense , partially offset by a $ 0.4 million reduction in purchase accounting expenses . this increase was partially offset by a 17 decrease in cost of sales of $ 3.5 million , or 2 % , within the safety and security systems group , largely due to favorable sales mix and a favorable foreign currency translation impact of $ 2.1 million , partially offset by higher sales volumes . gross profit for the year ended december 31 , 2019 , gross profit increased by $ 40.7 million , or 14 % , compared to the prior year , primarily due to improvements of $ 34.8 million and $ 5.9 million within the environmental solutions group and the safety and security systems group , respectively . gross margin for the year ended december 31 , 2019 was 26.4 % , compared to 25.9 % in the prior year , primarily driven by improvements within the safety and security group and environmental solutions group of 220 basis points and 50 basis points , respectively . margin improvements were primarily attributable to improved operating leverage , benefits from pricing actions and favorable sales mix . selling , engineering , general and administrative expenses for the year ended december 31 , 2019 , selling , engineering , general and administrative ( “ seg & a ” ) expenses increased by $ 14.1 million , or 9 % , primarily due to increases within the environmental solutions group and the safety and security systems group of $ 8.2 million and $ 1.4 million , respectively . story_separator_special_tag year ended december 31 , 2018 vs. year ended december 31 , 2017 total orders for the year ended december 31 , 2018 were $ 1,173.2 million , an increase of $ 155.2 million , or 15 % , compared to the year ended december 31 , 2017 . the environmental solutions group reported total orders of $ 945.8 million in 2018 , an increase of $ 139.5 million , or 17 % , compared to the year ended december 31 , 2017 . the improvement was driven by incremental orders of $ 66.2 million related to the inclusion of tbei orders for a full year in 2018 versus seven months in 2017 , and organic order growth of approximately $ 73.3 million , or 11 % . the organic growth was largely the result of improved orders for vacuum trucks , sewer cleaners , street sweepers and waterblasting equipment , as well as higher aftermarket demand , representing increased orders for parts , service , used and rental equipment . these improvements were partially offset by a reduction in refuse truck orders . within the safety and security systems group , orders increased by $ 15.7 million compared to the year ended december 31 , 2017 , primarily driven by a $ 14.9 million improvement in global orders for public safety products . u.s. municipal and governmental orders increased by $ 12.2 million , or 3 % , primarily due to a $ 14.8 million improvement within the environmental solutions group , primarily driven by a $ 13.1 million improvement in orders for sewer cleaners and higher aftermarket demand . this improvement was partially offset by a $ 2.6 million reduction in municipal orders within the safety and security systems group , driven by a decrease in orders for outdoor warning systems of $ 6.8 million , partially offset by an increase in orders for public safety products of $ 4.2 million . u.s. industrial and commercial orders increased by $ 123.5 million , or 29 % , largely driven by a $ 116.9 million increase within the environmental solutions group , primarily related to a $ 48.3 million improvement in orders for vacuum trucks and an incremental $ 67.0 million of orders from a full year of tbei activity in 2018. in addition , aftermarket orders increased by $ 4.8 million . these increases were partially offset by a $ 3.5 million reduction in street sweeper orders . within the safety and 21 security systems group , industrial orders increased by $ 6.6 million due to increases in orders for outdoor warning systems , industrial products and public safety products of $ 3.8 million , $ 1.6 million and $ 1.2 million , respectively . non-u.s. orders increased by $ 19.5 million , or 8 % , largely due to a $ 7.8 million increase within the environmental solutions group , primarily due to improvements in orders for vacuum trucks , sewer cleaners , street sweepers , and waterblasting equipment of $ 11.3 million , $ 6.8 million , $ 4.4 million and $ 2.1 million , respectively . in addition , aftermarket orders improved by $ 7.3 million . partially offsetting these improvements was a $ 23.0 million decrease in refuse truck orders . orders within the safety and security systems group increased by $ 11.7 million , largely due to a $ 9.5 million increase in orders for public safety products . backlog backlog was $ 386.9 million at december 31 , 2019 as compared to $ 337.7 million at december 31 , 2018 . the increase of $ 49.2 million , or 15 % , was primarily due to a $ 47.3 million increase in backlog within the environmental solutions group , primarily due to continued strong demand for sewer cleaners and safe-digging trucks , as well as higher orders for road-marking and line-removal equipment and refuse trucks . in addition , backlog within the safety and security systems group improved by $ 1.9 million , primarily due to increased international orders for public safety products . environmental solutions the following table summarizes the environmental solutions group 's operating results as of , and for the years ended , december 31 , 2019 , 2018 and 2017 : replace_table_token_5_th year ended december 31 , 2019 vs. year ended december 31 , 2018 total orders increased by $ 92.2 million , or 10 % , for the year ended december 31 , 2019 . u.s. orders increased by $ 60.6 million , or 8 % , primarily due to the acquisition of mrl which contributed $ 54.9 million of orders , as well as increases in orders for safe-digging trucks and dump truck bodies of $ 17.8 million and $ 3.2 million , respectively . additionally , aftermarket orders improved by $ 10.1 million . partially offsetting these improvements were reductions in orders for street sweepers , industrial vacuum loaders , and trailers of $ 9.5 million , $ 8.7 million , and $ 5.6 million , respectively . non-u.s. orders increased by $ 31.6 million , or 19 % , primarily due to increases in orders for refuse trucks , safe-digging trucks , and street sweepers of $ 14.3 million , $ 11.6 million and $ 7.7 million , respectively . in addition , the acquisition of mrl contributed $ 1.9 million of orders , and aftermarket demand increased by $ 5.1 million . partially offsetting these improvements were reductions in orders for industrial vacuum loaders , snow removal trucks , and sewer cleaners of $ 5.7 million , $ 2.0 million , and $ 1.7 million , respectively . net sales increased by $ 129.4 million , or 15 % , for the year ended december 31 , 2019 . u.s. sales increased by $ 103.9 million , or 15 % , primarily due to a $ 38.8 million contribution from mrl , and increases in sales of safe-digging trucks , dump truck bodies
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash dividends of $ 19.3 million , $ 18.7 million and $ 16.8 million were declared and paid to stockholders in 2019 , 2018 and 2017 , respectively . the company anticipates that capital expenditures for 2020 , including investments associated with its ongoing plant expansions , will be in the range of $ 30 million to $ 35 million . the company believes that its financial resources and major sources of liquidity , including cash flow from operations and borrowing capacity , will be adequate to meet its operating needs , capital needs and financial commitments . 27 contractual obligations and off-balance sheet arrangements the following table summarizes the company 's contractual obligations and payments due by period as of december 31 , 2019 : replace_table_token_8_th ( a ) amounts represent estimated contractual interest payments on outstanding long-term debt . ( b ) amounts include contractual obligations associated with lease arrangements that qualify for the short-term lease exception , discussed further in note 4 – leases to the accompanying consolidated financial statements . ( c ) purchase obligations primarily relate to commercial chassis and other contracts in the ordinary course of business . ( d ) the company expects to contribute up to $ 6.9 million to the u.s. benefit plan and up to $ 1.3 million to the non-u.s. benefit plan in 2020 , which represent the minimum required contributions . future contributions to the plans will be based on such factors as ( i ) annual service cost , ( ii ) the financial return on plan assets , ( iii ) interest rate movements that affect discount rates applied to plan liabilities and ( iv ) the value of benefit payments made . due to the high degree of uncertainty regarding the potential future cash outflows associated with these plans , the company is unable to provide a reasonably reliable estimate of the amounts and periods in which any additional liabilities might be paid . ( e ) represents the fair value of the contingent earn-out payment associated with the acquisition of mrl . for further discussion , see note 2 – acquisitions to the accompanying consolidated financial statements .
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see “ part ii , item 6. selected financial data ” for reconciliation of adjusted gross profit , ebitda , and adjusted ebitda . results of operations factors affecting our results of operations raw materials . we use butadiene , styrene , and isoprene as our primary raw materials in manufacturing our products , and our results of operations are directly affected by the cost of these raw materials . on a fifo basis , these monomers together represented approximately $ 512.8 million , $ 609.5 million and $ 732.9 million or 51.6 % , 57.2 % and 61.5 % of our total cost of goods sold for the years ended december 31 , 2014 , 2013 and 2012 , respectively . since the cost of our three primary raw materials comprise a significant amount of our total cost of goods sold , our selling prices for our products and therefore our total revenue is impacted by movements in our raw material costs , as well as the cost of other inputs . the cost of these monomers has generally correlated with changes in energy prices and is generally influenced by supply and demand factors and prices for natural and synthetic rubber . in aggregate , average purchase prices were lower for butadiene , isoprene and styrene during 2014 compared to 2013 . average butadiene and isoprene purchase prices were lower during 2013 compared to 2012 while average styrene purchase prices were higher in 2013 compared to 2012 . we use the fifo basis of accounting for inventory and cost of goods sold , and therefore gross profit . in periods of raw material price volatility , reported results under fifo will differ from what the results would have been if cost of goods sold were based on ecrc . specifically , in periods of rising raw material costs , reported gross profit will be higher under fifo than under ecrc . conversely , in periods of declining raw material costs , reported gross profit will be lower under fifo than under ecrc . in recognition of the fact that the cost of raw materials affects our results of operations and the comparability of our results of operations we provide the difference , or spread , between fifo and ecrc . for the years ended december 31 , 2014 , 2013 , and 2012 , reported results under fifo were lower than results would have been on an ecrc basis by $ 9.3 million , $ 30.7 million , and $ 30.5 million , respectively . international operations and currency fluctuations . we operate a geographically diverse business , serving customers in over 60 countries from five manufacturing facilities on four continents . our sales and production costs are mainly denominated in u.s. dollars , euro , japanese yen and brazilian real . from time to time , we use hedging strategies to reduce our exposure to currency fluctuations . we generated our revenue from customers located in the following regions : replace_table_token_18_th our financial results are subject to gains and losses on currency translations , which occur when the financial statements of foreign operations are translated into u.s. dollars . the financial statements of operations outside the united states where the local currency is considered to be the functional currency are translated into u.s. dollars using the exchange rate at each balance sheet date for assets and liabilities and the average exchange rate for each period for revenue , expenses , gains and losses and cash flows . the effect of translating the balance sheet into u.s. dollars is included as a component of accumulated other comprehensive income ( loss ) . any appreciation of the functional currencies against the u.s. dollar will increase the u.s. dollar equivalent of amounts of revenue , expenses , gains and losses and cash flows , and any depreciation of the functional currencies will decrease the u.s. dollar amounts reported . our results of operations are also subject to currency transaction risk . we incur currency transaction risk when we enter into either a purchase or sale transaction using a currency 36 other than the local currency of the transacting entity . the estimated impact from currency fluctuations amounted to a pre-tax income of $ 0.4 million , a pre-tax loss of $ 4.8 million and a pre-tax loss of $ 6.4 million for the years ended december 31 , 2014 , 2013 and 2012 , respectively . the primary driver for our pre-tax income in 2014 was the change in foreign currency exchange rates between the euro and u.s. dollar . the primary driver for our pre-tax losses in 2013 and 2012 was the change in foreign currency exchange rates between the japanese yen and u.s. dollar and the euro and u.s. dollar , respectively . seasonality . seasonal changes and weather conditions typically affect our performance products sales into paving and roofing applications generally resulting in higher sales volumes in the second and third quarters of the calendar year versus the first and fourth quarters of the calendar year . our other markets tend to show relatively little seasonality . outlook based upon recent raw material price trends , we estimate that first quarter 2015 will reflect a negative spread between fifo and ecrc of $ 30.0 million to $ 35.0 million . year ended december 31 , 2014 compared to year ended december 31 , 2013 revenue revenue was $ 1,230.4 million for the year ended december 31 , 2014 compared to $ 1,292.1 million for the year ended december 31 , 2013 , a decline of $ 61.7 million or 4.8 % ( a decline of $ 50.3 million or 3.9 % excluding an $ 11.4 million negative effect from currency fluctuations ) with $ 51.3 million of the decline attributable to loweraverage selling prices associated with lower average raw material costs . story_separator_special_tag depreciation and amortization was $ 63.2 million for the year ended december 31 , 2013 compared to $ 64.6 million for the year ended december 31 , 2012 , a decrease of $ 1.4 million or 2.1 % . we did not incur any impairment charges of long-lived assets for the year ended december 31 , 2013 compared to a $ 5.4 million charge for the year ended december 31 , 2012 . interest expense , net interest expense , net was $ 30.5 million for the year ended december 31 , 2013 compared to $ 29.3 million for the year ended december 31 , 2012 , an increase of $ 1.2 million or 4.0 % . the reduction in interest expense associated with lower outstanding indebtedness was more than offset by charges aggregating $ 5.8 million incurred in connection with our 2013 refinancing . income tax expense ( benefit ) our income tax provision was a $ 3.9 million benefit and a $ 19.3 million expense for the years ended december 31 , 2013 and 2012 , respectively . our effective tax rate was 79.9 % and 619.8 % for the years ended december 31 , 2013 and 2012 , respectively . our effective tax rates differed from the u.s. corporate statutory tax rate of 35.0 % , primarily due to the mix of pre-tax income or loss earned in certain jurisdictions and the change in our valuation allowance . we record a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized . as of december 31 , 2013 and december 31 , 2012 , a valuation allowance of $ 90.0 million and $ 90.4 million , respectively , has been provided for net operating loss carryforwards and other deferred tax assets . we decreased our valuation 40 allowance by $ 0.4 million in 2013 , which includes a $ 0.5 million decrease due to changes in other comprehensive income ( loss ) , partially offset by a $ 0.1 million increase to the income tax provision . the $ 0.1 million is comprised of $ 10.2 million related to current year operating losses , offset by $ 10.1 million of income tax benefit related to the tax effect of unrealized pension gains . we increased our valuation allowance by $ 36.2 million in 2012 , of which $ 30.7 million was included in the income tax provision and $ 5.5 million represents changes in equity . the $ 30.7 million increase in the valuation allowance is comprised of $ 13.5 million related to the reversal of the benefit recorded for prior year 's net operating losses and $ 17.2 million related to current year operating losses . we consider the reversal of deferred tax liabilities within the net operating loss carryforward period , projected future taxable income and tax planning strategies in making this assessment . excluding the change in our valuation allowance , our effective tax rates would have been an 81.4 % and 366.1 % benefit for the years ended december 31 , 2013 and 2012 , respectively . net loss attributable to kraton net loss attributable to kraton was $ 0.6 million or $ 0.02 per diluted share for the year ended december 31 , 2013 , an increase in net income of $ 15.6 million , compared to a net loss of $ 16.2 million or $ 0.50 per diluted share for the year ended december 31 , 2012 . net loss for the year ended december 31 , 2013 was negatively impacted by the following items , net of tax : restructuring and other charges of $ 0.7 million or $ 0.02 per diluted share fees related to the terminated combination agreement with lcy of $ 9.2 million or $ 0.28 per diluted share charges associated with the credit facility refinancing of $ 5.8 million or $ 0.18 per diluted share production downtime related to mact legislation of $ 3.5 million or $ 0.11 per diluted share negative spread between fifo and ecrc of $ 30.7 million or $ 0.94 per diluted share net loss for the year ended december 31 , 2013 was positively impacted by the following item : income tax benefit related to a portion of the change in our valuation allowance for deferred tax assets of $ 10.1 million or $ 0.31 benefit per diluted share net loss for the year ended december 31 , 2012 was negatively impacted by the following items , net of tax : property tax dispute settlement charge of $ 6.2 million or $ 0.20 per diluted share restructuring and other charges of $ 1.2 million or $ 0.03 per diluted share retirement plan settlement charge of $ 1.1 million or $ 0.03 per diluted share storm related charges of $ 2.5 million or $ 0.08 per diluted share impairment of long-lived assets of $ 5.4 million or $ 0.17 per diluted share income tax expense related to a portion of the change in our valuation allowance for deferred tax assets of $ 13.5 million or $ 0.42 per diluted share negative spread between fifo and ecrc of $ 30.5 million or $ 0.95 per diluted share net loss for the year ended december 31 , 2012 was positively impacted by the following item , net of tax : receipt from lyondellbasell in settlement of disputed charges of $ 6.9 million or $ 0.22 benefit per diluted share 41 critical accounting policies the preparation of financial statements in conformity with accounting principles generally accepted in the united states of america requires management to make assumptions and estimates that directly affect the amounts reported in the consolidated financial statements . certain critical accounting policies requiring significant judgments , estimates , and assumptions are described in this section . we consider an accounting estimate to be critical if ( 1 ) it requires assumptions to be made that are uncertain at the
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | net cash provided by operating activities totaled $ 105.5 million for the year ended december 31 , 2013 and $ 146.3 million for the year ended december 31 , 2012. this represents a net decrease of $ 40.9 million , which was primarily driven by changes in working capital . the net change in working capital was a source of cash of $ 43.8 million in 2013 compared to a source of cash of $ 72.9 million in 2012 ; a period-over-period decline in cash flows of $ 29.0 million . the period-over-period changes are as follows : $ 42.4 million decrease in cash flows associated with inventories of products , materials and supplies , largely due to changes in the quantity of raw material and finished goods inventories and to a lesser extent the costs of raw materials and finished goods inventories ; $ 17.8 million decrease in cash flows associated with accounts receivable reflecting changes in timing of cash receipts and sales volumes , partially offset by decreases in revenue per ton ; partially offset by $ 6.3 million increase in cash flows associated with trade accounts payable primarily due to the timing of payments partially offset by a decrease in the cost of raw materials ; and $ 24.9 million net increase in cash flows due to the timing of payments of other items , including related party transactions , taxes , and pension costs . investing cash flows net cash used in investing activities totaled $ 114.4 million for the year ended december 31 , 2014 and $ 88.7 million for the year ended december 31 , 2013 . capital projects in 2014 included the following : $ 44.3 million for kfpc joint venture project construction costs ; $ 39.0 million related to projects to optimize the production capabilities of our manufacturing assets , which includes $ 26.8 million to comply with the mact rule ; and $ 20.7 million related to health , safety and environmental , including infrastructure and maintenance projects . net cash used in investing activities totaled $ 88.7 million for the year ended december 31 , 2013 and $ 69.9
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we anticipate completion of enrollment in the triplet regimen expansion cohort during the second quarter of 2021 and availability of preliminary response rate data from the cohort also in the second quarter of 2021 . ● phase 1 nhl trial we are currently enrolling a phase 1 clinical trial in relapsed/refractory tp53 mutant chronic lymphoid leukemia ( cll ) assessing eprenetapopt with venetoclax and rituximab and eprenetapopt with ibrutinib in order to further assess eprenetapopt in hematological malignancies . the first patient was enrolled in the first quarter of 2021. we are also planning to evaluate the combination of eprenetapopt with venetoclax in relapsed/refractory mantle cell lymphoma . 118 ● phase 1/2 solid tumor trial – we are currently enrolling a phase 1/2 clinical trial in relapsed/refractory gastric , bladder and non-small cell lung cancers assessing eprenetapopt with anti-pd-1 therapy . the dose-escalation phase of the trial enrolled 6 patients with advanced solid tumors and no dose-limiting toxicities were observed . based on these results , we are enrolling expansion cohorts for patients with advanced gastric , bladder and non-small cell lung cancers and have currently enrolled 8 patients across these expansion arms . our second product candidate , apr-548 , is a next generation p53 reactivator that is being developed in an oral dosage form . we have planned a phase 1 dose-escalation clinical trial evaluating safety , tolerability and preliminary efficacy of apr-548 with azacitidine in frontline and relapsed/refractory mds patients . we anticipate the first patient to be enrolled early in the second quarter of 2021 . aprea therapeutics ab , or aprea ab , was originally incorporated in 2002 and commenced principal operations in 2006. we incorporated aprea therapeutics , inc. ( the “ company ” ) in may 2019. in september 2019 we completed a corporate reorganization and , as a result , all of the issued and outstanding stock of aprea ab was exchanged for common stock , preferred stock or options , as applicable , of the company . as a result of such transactions , aprea ab became a wholly-owned subsidiary of the company . we have devoted substantially all of our resources to developing our product candidates , including eprenetapopt , building our intellectual property portfolio , business planning , raising capital and providing general and administrative support for these operations . to date , we have financed our operations through private placements of preferred stock and the net proceeds received from the initial public offering ( ipo ) of our common stock . through december 31 , 2020 , we had received net proceeds of approximately $ 223.9 million from our sales of preferred and common stock . since our inception , we have incurred significant losses on an aggregate basis . our ability to generate product revenue sufficient to achieve profitability will depend on the successful development and eventual commercialization of one or more of our product candidates . our net losses were $ 53.5 million , $ 28.1 million and $ 15.5 million for the years ended december 31 , 2020 , 2019 and 2018 , respectively . as of december 31 , 2020 , we had an accumulated deficit of $ 144.0 million . these losses have resulted primarily from costs incurred in connection with research and development activities , patent investment , and general and administrative costs associated with our operations . we expect to continue to incur significant expenses and increasing operating losses for at least the next several years . we anticipate that our expenses will increase substantially if and as we : ● conduct our current and future clinical trials and additional preclinical research of eprenetapopt ; ● initiate and continue research and preclinical and clinical development of our other product candidates ; ● seek to identify and develop additional product candidates ; ● seek marketing approvals for any of our product candidates that successfully complete clinical trials , if any ; ● establish a sales , marketing , manufacturing and distribution infrastructure to commercialize any products for which we may obtain marketing approval ; ● require the manufacture of larger quantities of our product candidates for clinical development and potentially commercialization ; ● maintain , expand , protect and enforce our intellectual property portfolio ; ● acquire or in-license other drugs and technologies ; ● defend against any claims of infringement , misappropriation or other violation of third-party intellectual property ; 119 ● hire and retain additional clinical , quality control and scientific personnel ; and ● add operational , financial and management information systems and personnel , including personnel to support our drug development , any future commercialization efforts and our transition to a public company . furthermore , if we obtain marketing approval for any of our product candidates , we expect to incur significant commercialization expenses related to product manufacturing , marketing , sales and distribution . as a result , we will need additional financing to support our continuing operations . until such time as we can generate significant revenue from product sales , if ever , we expect to finance our operations through a combination of public or private equity or debt financings or other sources , which may include collaborations with third parties . we may be unable to raise additional funds or enter into other agreements or arrangements when needed on favorable terms , or at all . if we fail to raise capital or enter into such agreements as and when needed , we may have to significantly delay , scale back or discontinue the development or commercialization of one or more of our product candidates . because of the numerous risks and uncertainties associated with product development , we are unable to predict the timing or amount of increased expenses or when or if we will be able to achieve or maintain profitability . even if we are able to generate revenue from product sales , we may not become profitable . story_separator_special_tag we apply the straight-line method of expense recognition to all awards with only service-based vesting conditions and apply the graded-vesting method to all awards with performance-based vesting conditions or to awards with both service-based and performance-based vesting conditions . for stock-based awards granted to non-employees , compensation expense is recognized over the period during which services are rendered by such non-employees until completed in accordance with the fasb issued asu no . 2018-07 , compensation-stock compensation ( topic 718 ) : improvements to nonemployee share-based payment accounting . the new standard largely aligns the accounting for share-based payment awards issued to employees and nonemployees by expanding the scope of asc 718 to apply to nonemployee share-based transactions , as long as the transaction is not effectively a form of financing . we estimate the fair value of each stock option grant on the date of grant using the black-scholes option-pricing model , which uses as inputs the fair value of our common stock and assumptions we make for the volatility of our common stock , the expected term of our stock options , the risk-free interest rate for a period that approximates the expected term of our stock options and our expected dividend yield . determination of fair value of common stock as a privately held company ( through october 2 , 2019 ) , there had been no public market for our common stock , the estimated fair value of our common stock had been determined by our board of directors as of the date of each option grant , with input from management , considering our most recently available third-party valuations of common stock and our board of directors ' assessment of additional objective and subjective factors that it believed were relevant and which 124 may have changed from the date of the most recent valuation through the date of the grant . these third-party valuations were performed in accordance with the guidance outlined in the american institute of certified public accountants ' accounting and valuation guide , valuation of privately-held-company equity securities issued as compensation . our common stock valuations were prepared using a hybrid method , which used market approaches to estimate our enterprise value . the hybrid method is a probability-weighed expected return method , or pwerm , where the equity value in one or more scenarios is calculated using an option-pricing method , or opm . the opm treats common stock and preferred stock as call options on the total equity value of a company , with exercise prices based on the value thresholds at which the allocation among the various holders of a company 's securities changes . under this method , the common stock has value only if the funds available for distribution to stockholders exceeded the value of the preferred stock liquidation preference at the time of the liquidity event , such as a strategic sale or a merger . the pwerm is a scenario-based methodology that estimates the fair value of common stock based upon an analysis of future values for the company , assuming various outcomes . the common stock value is based on the probability-weighted present value of expected future investment returns considering each of the possible outcomes available as well as the rights of each class of stock . the future value of the common stock under each outcome is discounted back to the valuation date at an appropriate risk-adjusted discount rate and probability weighted to arrive at an indication of value for the common stock . these third-party valuations were performed at various dates , which resulted in valuations of our common stock of $ 0.92 per share as of may 31 , 2016 , $ 1.01 per share as of october 2 , 2017 , $ 3.18 per share as of december 31 , 2018 and $ 10.95 per share as of july 15 , 2019. in addition to considering the results of these third-party valuations , our board of directors considered various objective and subjective factors to determine the fair value of our common stock as of each grant date , including : ● the prices at which we sold shares of preferred stock and the superior rights and preferences of the preferred stock relative to our common stock at the time of each grant ; ● the progress of our research and development programs , including the status and results of preclinical studies and clinical trials for our product candidates ; ● our stage of development and commercialization and our business strategy ; ● external market conditions affecting the biopharmaceutical industry and trends within the biopharmaceutical industry ; ● our financial position , including cash on hand , and our historical and forecasted performance and operating results ; ● the lack of an active public market for our common stock and our preferred stock ; ● the likelihood of achieving a liquidity event , such as an initial public offering , or ipo , or sale of our company in light of prevailing market conditions ; and ● the analysis of ipos and the market performance of similar companies in the biopharmaceutical industry . the assumptions underlying these valuations represented management 's best estimate , which involved inherent uncertainties and the application of management 's judgment . as a result , if we had used significantly different assumptions or estimates , the fair value of our common stock and our stock-based compensation expense could have been materially different . emerging growth company and smaller reporting company status we are an emerging growth company ( egc ) , as defined in the jobs act . under this act , emerging growth companies are permitted to delay adopting new or revised accounting standards applicable to public companies until those standards would otherwise apply to private companies . we have irrevocably elected not to avail ourselves of this exemption from 125 new or revised accounting standards and , therefore , will be subject to the same
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources since our inception , we have incurred significant losses on an aggregate basis . we have not yet commercialized any of our product candidates , which are in various phases of preclinical and clinical development , and we do not expect to generate revenue from sales of any products for several years , if at all . to date , we have financed our operations through private placements of our preferred and common stock and the net proceeds received from the initial public offering ( ipo ) of our common stock . through december 31 , 2020 , we had received net proceeds of $ 223.9 million from our sales of preferred and common stock . as of december 31 , 2020 , we had cash and cash equivalents of $ 89.0 million . 128 cash flows the following table summarizes our sources and uses of cash for each of the periods presented : replace_table_token_6_th operating activities cash used in operating activities resulted primarily from our net losses adjusted for non-cash charges and changes in components of working capital . net cash used in operating activities was $ 41.8 million for the year ended december 31 , 2020 compared to $ 26.7 million for the year ended december 31 , 2019. the increase in cash used in operating activities of $ 15.1 million was primarily attributable to an increase in our net loss of $25.4 million , resulting from both increased research and development expenses and increased general and administrative expenses discussed previously partially offset by an increase in non-cash stock-based compensation of $ 3.6 million as well as a net increase in operating assets and liabilities of $ 4.4 million .
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net sales for fiscal 2016 in the industrial/commercial sector increased $ 88.7 million , or 12.9 % , as compared to fiscal 2015 . the increase was primarily due to ramps of production for a major customer , which resulted in increased net sales of $ 221.2 million . partially offsetting the increase were decreases of $ 42.7 million related to the previously announced disengagement of a customer , $ 30.2 million that resulted from two customers revising their business models as a result of decreased end-market demand and $ 12.4 million due to pilot programs for three customers not transitioning into the production stage . the remaining decrease was due to decreased customer end-market demand , due in part to the downturn in the oil and gas markets . net sales for fiscal 2015 in the industrial/commercial sector increased $ 102.0 million , or 17.5 % , as compared to fiscal 2014. the increase was primarily due to a $ 45.6 million increase in net sales to a new customer in fiscal 2015 , a $ 36.8 million increase related to new programs with existing customers , a $ 24.4 million increase related to new customers secured in fiscal 2014 that ramped in fiscal 2015 , and several other customers with increased end-market demand . these increases were partially offset by a $ 22.1 million decrease due to the disengagement of a customer as a result of the inability to reach contractual terms , and several other customers with decreased end-market demand . networking/communications . net sales for fiscal 2016 in the networking/communications sector decreased $ 247.4 million , or 29.3 % , as compared to fiscal 2015 . the reduction in net sales was primarily driven by a $ 90.7 million decrease in net sales due to a previously announced program disengagement , a $ 75.8 million decrease in net sales to another customer that resulted from decreased end-market demand for one of its products and a $ 29.2 million decrease due to the disengagement of a customer . overall decreased end-market demand drove the remaining reduction in net sales during the year . partially offsetting the decreases was a $ 10.2 million increase in net sales due to the ramp of production of new programs for two existing customers . net sales for fiscal 2015 in the networking/communications sector increased $ 82.0 million , or 10.8 % , as compared to fiscal 2014. the change was primarily the result of a $ 50.1 million increase in net sales to a key customer as a result of increased end-market demand , a $ 36.1 million increase in net sales from one of our largest customers as a result of new product ramps and expansion of its end-market demand , and a $ 16.0 million increase related to a new customer . additionally , five customers ' net sales increased $ 37.5 million , in aggregate , primarily as a result of increased end-market demand as well as new program ramps . these increases were partially offset by a $ 19.8 million decrease due to a customer that experienced softening in its end-market demand , a $ 10.6 million decrease related to a customer disengagement and several other customers with decreased end-market demand . defense/security/aerospace . net sales for fiscal 2016 in the defense/security/aerospace sector increased $ 30.3 million , or 8.1 % , as compared to fiscal 2015 . the improvement was primarily attributable to increased net sales of $ 43.2 million that resulted from the ramp of production of new programs for several existing customers . these increases were partially offset by a decrease of $ 6.9 million due to program disengagements with two customers as well as a net decrease in customer end-market demand . 27 net sales for fiscal 2015 in the defense/security/aerospace sector increased $ 39.2 million , or 11.7 % , as compared to fiscal 2014. the increase was primarily driven by new program ramps and increased end-market demand spread among multiple customers . as a percentage of consolidated net sales , net sales attributable to customers representing 10 % or more of consolidated net sales as well as the percentage of net sales attributable to our ten largest customers for fiscal 2016 , 2015 and 2014 , were as follows : 2016 2015 2014 general electric company ( “ ge ” ) 11.1 % 10.6 % 11.2 % micron technology , inc. ( “ micron ” ) 10.4 % * * arris group , inc. ( “ arris ” ) 10.1 % 12.6 % 12.5 % top 10 customers 58.8 % 56.1 % 55.1 % * net sales attributable to the customer were less than 10.0 % of consolidated net sales for the period . cost of sales . cost of sales for fiscal 2016 decreased $ 86.1 million , or 3.6 % , as compared to fiscal 2015 . cost of sales is comprised primarily of material and component costs , labor costs , and overhead . during fiscal 2016 and 2015 , approximately 90.0 % of the total cost of sales was variable in nature and fluctuated with sales volumes . of this amount , approximately 88.0 % of these costs were related to material and component costs . as a result of using a cost-plus markup pricing arrangement with our customers , changes in costs typically result in corresponding changes in price , which generally results in an immaterial impact on gross profit . therefore , as expected , the decrease in cost of sales of 3.6 % as compared to fiscal 2015 was generally in line with the 3.7 % decrease in net sales . cost of sales decreased slightly less than the decrease in net sales primarily due to a $ 2.9 million increase in cost of sales that resulted from losses sustained from a typhoon that impacted the company 's manufacturing facilities in xiamen , china during the fiscal 2016 fourth quarter . story_separator_special_tag 31 net sales for fiscal 2015 in the apac segment increased $ 153.4 million , or 13.5 % , as compared to fiscal 2014. net sales increased in all market sectors with the most significant increase in the networking/communications sector , including a combined $ 62.8 million increase for three customers as a result of increased end-market demand and an aggregate $ 23.9 million increase related to program ramps for two customers . in addition , net sales to one of our largest customers in the healthcare/life sciences sector increased by $ 47.0 million . operating income increased $ 24.7 million in fiscal 2015 as compared to fiscal 2014 , primarily as a result of the increase in net sales as fixed manufacturing expenses and s & a for the segment were relatively stable in fiscal 2015 as compared to 2014. emea . net sales for fiscal 2016 in the emea segment increased $ 30.1 million , or 21.5 % , as compared to fiscal 2015 , primarily due to a $ 30.3 million increase in net sales due to the ramp of production of various new programs with several existing customers and $ 5.0 million from the ramp of production for a new customer . this was partially offset by a $ 3.8 million decrease as a result of a customer bringing the manufacturing of a program in house . the remaining decrease in net sales was due to a net decrease in customer end-market demand . operating loss decreased $ 4.4 million in fiscal 2016 as compared to fiscal 2015 primarily due to the impact of the net sales increase , while fixed costs remained relatively flat . net sales for fiscal 2015 in the emea segment increased $ 24.4 million , or 21.1 % , as compared to fiscal 2014 , primarily due to a combined increase of $ 18.7 million from three new customers , a $ 7.3 million increase to a networking/communications customer due to improved end-market demand and new product ramps , and increased end-market demand for several other customers . this was partially offset by a $ 7.2 million decrease as a result of end of life products along with the effects of decreased end-market demand for several other customers . operating loss decreased $ 3.8 million in fiscal 2015 as compared to fiscal 2014 primarily due to the increase in net sales and improved profitability for engineering-related services . 32 liquidity and capital resources story_separator_special_tag primarily driven by the decrease in annualized cost of sales due primarily to the decrease in net sales and the timing of purchases . days in cash deposits for the three months ended october 1 , 2016 increased one day compared to the three months ended october 3 , 2015 . the increase was primarily attributable to an increase in customer deposits primarily due to a deposit received from one customer to offset on-hand inventory . as of october 1 , 2016 annualized cash cycle days increased five days compared to october 3 , 2015 due to the factors discussed above . free cash flow . we define free cash flow ( “ fcf ” ) , a non-gaap financial measure , as cash flow provided by operations less capital expenditures . fcf was $ 96.6 million for fiscal 2016 compared to $ 41.5 million for fiscal 2015 . the increase of $ 55.1 million was primarily attributable to the increase in cash provided by operating activities described above and the reduction in capital expenditures . non-gaap financial measures , including fcf , are used for internal management assessments because such measures provide additional insight to investors into ongoing financial performance . in particular , we provide fcf because we believe it offers insight into the metrics that are driving management decisions . we view fcf as an important financial metric as it demonstrates our ability to generate cash and can allow us to pursue opportunities that enhance shareholder value . fcf is a non-gaap financial measure that should be considered in addition to , not as a substitute for , measures of our financial performance prepared in accordance with gaap . a reconciliation of fcf to our financial statements that were prepared using gaap follows ( in millions ) : replace_table_token_11_th investing activities . cash flows used in investing activities were $ 26.5 million for fiscal 2016 compared to $ 34.7 million for fiscal 2015 . the reduction was due to a $ 4.0 million decrease in capital expenditures and a $ 4.2 million increase in proceeds received from the sale of property , plant and equipment , primarily related to the sale of our engineering facility in neenah , wisconsin . cash flows used in investing activities were $ 34.7 million for fiscal 2015 compared to $ 62.6 million for fiscal 2014. the reduction was due to a $ 30.2 million decrease in capital expenditures primarily related to our facility investment for guadalajara during fiscal 2014. we utilized available cash and operating cash flows as the sources for funding our operating requirements during fiscal 2016 . we currently estimate capital expenditures for fiscal 2017 will be approximately $ 50 million to $ 60 million . financing activities . cash flows used in financing activities were $ 21.3 million for fiscal 2016 compared to $ 26.2 million for fiscal 2015 . the decrease was primarily attributable to the $ 5.0 million increase in proceeds received from increased stock option exercise activity during fiscal 2016. cash flows used in financing activities were $ 26.2 million for fiscal 2015 compared to $ 21.0 million for fiscal 2014. the increase was primarily attributable to reduced proceeds from stock option exercises during fiscal 2015. on june 6 , 2016 , the board of directors approved a multi-year stock repurchase program under which the company is authorized to repurchase up to $ 150.0 million of its common stock beginning in fiscal 2017. we will repurchase shares subject to market conditions .
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash and cash equivalents were $ 433.0 million as of october 1 , 2016 as compared to $ 357.1 million as of october 3 , 2015 . as of october 1 , 2016 , 95.7 % of our cash and cash equivalents balances were held outside of the u.s. by our foreign subsidiaries . certain foreign countries impose taxes and overall penalties on transfers of cash . while our intent has been to permanently reinvest the funds held in these countries , from time to time we review and evaluate that strategy , particularly as the percentage of our cash balance held outside the u.s. has increased . during fiscal 2016 , the company repatriated $ 100.0 million of current year foreign earnings from the apac region to the u.s. , which had no income statement impact due to u.s. net operating losses , the use of u.s. tax credits and the reversal of the related valuation allowance . the repatriation does not impact the permanently reinvested assertions made by the company regarding prior period foreign earnings as the remittance was distributed exclusively from current year foreign earnings . the company does not have a history of repatriating foreign earnings by way of a taxable dividend and considers the fiscal 2016 remittance to be an isolated occurrence . the company does not anticipate a similar repatriation in the foreseeable future .
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we used cash from operations to repurchase $ 51 million of common stock and to repay $ 40 million of borrowings under our credit facility in 2017. at september 30 , 2017 , the balance outstanding under our credit facility was $ 218 million and total debt outstanding was $ 718 million . future expectations , strategies and risks our transition to a subscription model has been a headwind for revenue and earnings in 2017 , the effect of which is moderating as the subscription business matures and we exit the subscription trough . a 18 higher mix of subscription bookings is expected to benefit us over the long term , but results in lower revenue and lower earnings in the near term . our results have been impacted , and we expect will continue to be impacted , by our ability to close large transactions . the amount of bookings and revenue , particularly license and subscriptions , attributable to large transactions , and the number of such transactions , may vary significantly from quarter to quarter based on customer purchasing decisions and macroeconomic conditions . such transactions may have long lead times as they often follow a lengthy product selection and evaluation process and , for existing customers , are influenced by contract expiration cycles . this may cause volatility in our results . as we move into 2018 , our three overriding goals continue to be : sustainable growth our goals for overall growth are predicated on continuing to grow in the iot market and continuing to drive improvements in operational performance in our core cad , plm and slm solutions business . expand subscription through 2014 , the majority of our software licenses were sold as perpetual licenses , under which customers own the software license and revenue is recognized at the time of sale . we began offering subscription licensing for our core solutions group products in 2015 and expanded our subscription program in 2016. under a subscription , customers pay a periodic fee to license our software and access technical support over a specified period of time . as part of our expanded subscription program , we also launched a program for our existing customers to convert their support contracts to subscription contracts . a number of customers converted their support contracts to subscriptions in 2016 and 2017 , and we expect there will be continued opportunities to convert existing support contracts to subscription contracts in 2018 and beyond . given the subscription adoption rates we have seen in the americas and western europe , effective january 1 , 2018 , new software licenses for our core solutions and thingworx solutions will be available only by subscription in the americas and western europe . we plan to continue to offer both perpetual and subscription licenses to customers outside the americas and western europe until such time as we believe a change may be appropriate . this could affect customer purchasing decisions , particularly in the affected regions , as customers may accelerate purchases of perpetual licenses before january 1 , 2018 or , conversely , may delay purchases . cost controls and margin expansion we continue to proactively manage our cost structure and invest in what we believe are high return opportunities in our business . our goal is to drive continued margin expansion over the long term . we expect to deliver continued operating margin expansion in 2018 , and we expect further margin expansion in 2019 and beyond , when we expect we will realize the compounding benefit of our maturing subscription model . 19 results of operations revenue , operating margin , earnings per share and cash flow the following table shows the financial measures that we consider the most significant indicators of the performance of our business . in addition to providing operating income , operating margin , and diluted earnings per share as calculated under generally accepted accounting principles ( “ gaap ” ) , it shows non-gaap operating income , non-gaap operating margin , and non-gaap diluted earnings per share for the reported periods . these non-gaap financial measures exclude fair value adjustments related to acquired deferred revenue , acquired deferred costs , stock-based compensation expense , amortization of acquired intangible assets expense , acquisition-related and pension plan termination costs , restructuring charges , certain identified gains or charges included in non-operating other income ( expense ) and the related tax effects of the preceding items , as well as the tax items identified . these non-gaap financial measures provide investors another view of our operating results that is aligned with management budgets and with performance criteria in our incentive compensation plans . management uses , and investors should use , non-gaap financial measures in conjunction with our gaap results . replace_table_token_2_th ( 1 ) costs and expenses in 2017 included $ 7.9 million of restructuring charges . costs and expenses in 2016 included $ 76.3 million of restructuring charges , a $ 3.2 million legal accrual , and $ 3.5 million of acquisition-related costs . costs and expenses in 2015 included $ 73.2 million of pension plan termination-related costs , $ 43.4 million of restructuring charges , a $ 28.2 million legal accrual , and $ 8.9 million of acquisition-related costs . these restructuring , acquisition-related , pension plan termination and legal accrual costs have been excluded from non-gaap operating income , non-gaap operating margin and non-gaap diluted eps . ( 2 ) income taxes for non-gaap diluted earnings per share reflect the tax effects of non-gaap adjustments which are calculated by applying the applicable tax rate by jurisdiction to the non-gaap adjustments described in non-gaap financial measures , and also exclude certain non-operating income and tax items . story_separator_special_tag million in 2016 compared to $ 7.9 million in 2017 ; and a decrease in professional services costs primarily due to a decrease in headcount as we migrated more service engagements to our partners and we delivered products that required less consulting and training services . the decreases above were partially offset by increases due to : an increase of $ 18.1 million in total cost of license , subscription and support compensation costs primarily driven by increased headcount ; 27 an increase of $ 8.7 million in cloud services hosting costs due to an increase in saas revenue and related expenses and an increase in applications hosted in the cloud that support our it infrastructure . an increase of $ 5.0 million in total research and development compensation costs primarily driven by increased headcount ; and annual merit salary increases . 2016 compared to 2015 costs and expenses in 2016 compared to 2015 decreased primarily as a result of the following : cost savings from restructuring actions in 2016 and 2015 ; acquisition and pension termination-related costs , which were $ 75.4 million lower in 2016 compared to 2015 due to costs associated with terminating our u.s. pension plan which totaled $ 73.2 million ( including a $ 66.3 million settlement loss ) in 2015 ; a $ 28.2 million accrual recorded in 2015 related to an investigation in china ; and foreign currency rates which favorably impacted costs and expenses of 2016 by $ 24.1 million . the decreases above were partially offset by increases due to : cash-based incentive compensation expense , which was higher by $ 30.3 million in 2016 compared to 2015 ( as a result of over performance on subscription mix in 2016 and because 2015 incentive targets were not achieved in full ) ; costs from acquired businesses ( coldlight , vuforia , and kepware added approximately 255 employees at the date of the acquisitions ) ; an increase in stock-based compensation expense of $ 15.8 million in 2016 , compared to 2015 , due in part to a modification of performance-based awards previously granted under our long-term incentive programs ; investments in our iot business ; and annual merit salary increases . cost of license and subscription revenue replace_table_token_8_th our cost of license and subscription includes cost of license , which consists of fixed and variable costs associated with reproducing and distributing software and documentation , as well as royalties paid to third parties for technology embedded in or licensed with our software products , and amortization of intangible assets associated with acquired products , and cost of subscription , which includes our cost of cloud services and software as a service revenue , including hosting fees . costs associated with providing post-contract support such as providing software updates and technical support for both our subscription offerings and our perpetual licenses are included in cost of support revenue . cost of license and subscription revenue as a percent of license and subscription revenue can vary depending on the subscription mix percentage , the product mix sold , the effect of fixed and variable royalties , headcount and the level of amortization of acquired software intangible assets . costs in 2017 compared to 2016 increased primarily as a result of a $ 15.0 million increase in total compensation , benefit and travel expense due to increased headcount , primarily associated with supporting our cloud products , and a $ 3.4 million increase in cloud services hosting costs . costs in 2016 compared to 2015 increased primarily as a result of a $ 5.2 million increase in total compensation , benefit and travel expense due to increased headcount , a $ 4.9 million increase in cloud services hosting costs and $ 1.9 million increase in amortization of acquired purchase software . 28 cost of support revenue replace_table_token_9_th cost of support revenue consists of costs such as salaries , benefits , and computer equipment and facilities associated with customer support and the release of support updates ( including related royalty costs ) associated with providing support for both our perpetual licenses and subscription licenses . costs and expense in 2017 compared to 2016 increased primarily due to an increase of $ 3.1 million ( 5 % ) in total compensation , benefit and travel costs . costs and expense in 2016 compared to 2015 increased primarily due to an increase of $ 3.0 million ( 5 % ) in total compensation , benefit and travel costs . cost of professional services revenue replace_table_token_10_th our cost of professional services revenue includes costs such as salaries , benefits , information technology costs and facilities expenses for our training and consulting personnel , and third-party subcontractor fees . in 2017 compared to 2016 , total compensation , benefit costs and travel expenses decreased by $ 18.8 million . the cost of third-party consulting services was $ 4.7 million lower in 2017 compared to 2016. in 2016 compared to 2015 , total compensation , benefit costs and travel expenses decreased by $ 24.8 million . the cost of third-party consulting services was $ 2.6 million lower in 2016 compared to 2015. as a result of decreases in professional services revenue in 2017 , 2016 and 2015 , we have reduced headcount , resulting in lower compensation-related costs . the decreases in 2017 and 2016 compared to the prior years in the cost of third-party consulting services is a result of our strategy to have our strategic services partners perform services for customers directly , which has decreased revenue and improved services margins . sales and marketing replace_table_token_11_th our sales and marketing expenses primarily include salaries and benefits , sales commissions , advertising and marketing programs , travel , information technology costs and facility expenses . in 2017 compared to 2016 , event costs increased $ 3.1 million due to our liveworx event held in may 2017. our compensation , benefits and travel costs were $ 3.5 million lower in
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources replace_table_token_21_th 42 cash and cash equivalents we invest our cash with highly rated financial institutions and in diversified domestic and international money market mutual funds . cash and cash equivalents include highly liquid investments with original maturities of three months or less . in addition , we hold investments in marketable securities totaling approximately $ 50.3 million with an average maturity of 18 months . at september 30 , 2017 , cash and cash equivalents totaled $ 280.0 million , compared to $ 277.9 million at september 30 , 2016 , reflecting $ 134.6 million in operating cash flow , $ 15.2 million of proceeds from sales of investments , $ 10.8 million of proceeds from issuance of common stock under our employee stock purchase plan , offset by $ 51.0 million used for repurchases of common stock , $ 40.0 million of net repayments under our credit facility , $ 26.7 million used to pay withholding taxes on stock-based awards that vested in the period , $ 25.4 million used for capital expenditures , $ 11.1 million used for payment of contingent consideration and $ 5.0 million used for acquisitions . cash provided by operating activities cash provided by operating activities was $ 134.6 million in 2017 compared to $ 183.2 million in 2016 and $ 179.9 million in 2015 . the decrease in 2017 is primarily due to an increase in bonus and commission payments of approximately $ 33 million , lower cash collections from accounts receivable of $ 27 million ( due to higher 2016 collections of receivables with extended payment terms and a higher subscription mix in 2017 ) , higher interest payments of approximately $ 26 million , and a $ 12 million payment related to a korean tax audit , partially offset by a $ 35 million increase in cash flows from accounts payable and accrued expenses due to renegotiations with vendors , and more effective utilization of available payment terms , $ 18 million of lower restructuring payments and $ 28 million paid in 2016 to resolve the regulatory investigation with respect to our china business .
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as a result of the uncertainties discussed above , the uncertainty associated with clinical trial enrollments and the risks inherent in the development process , we are unable to determine the duration and completion costs of current or future clinical stages of our product candidates or when , or to what extent , we will generate revenues from the commercialization and sale of any of our product candidates . development timelines , probability of success and development costs vary widely . r & d expense for the year ended december 31 , 2013 increased significantly compared to the year ended december 31 , 2012 , due to fully enrolling our pivotal phase iii clinical study by the end of 2013 and manufacturing services as provided by biotest under our license agreement with them . we expect that our r & d expense will increase throughout 2014 , primarily attributable to the further development of ri-002 and our related clinical phase iii program . general and administrative expense general and administrative , or g & a expense , consists of rent , maintenance and utilities , insurance , wages , stock-based compensation and benefits for senior management and staff unrelated to r & d , legal fees , accounting and auditing fees , information technology , travel and other expenses related to the general operations of the business . g & a expense for the current year also includes a write-off of deferred financing fees related to our financing . we expect that our g & a expense will continue to increase in 2014 as a result of operating as a publicly traded company as a result of increased listing fees of our common stock and the hiring of additional staff . interest income and interest expense interest income consists of interest earned on our cash and cash equivalents . interest expense consists of interest incurred on our notes payable and previous convertible notes up to their automatic conversion into our common stock upon the completion of our private placement in february 2012 , as well as the amortization and write-off of deferred financing costs and debt discounts and a charge for the beneficial conversion feature relating to our notes payable and previous convertible notes . results of operations year ended december 31 , 2013 compared to year ended december 31 , 2012 summary table the following table presents a summary of our results of operations for the year ended december 31 , 2013 compared to the year ended december 31 , 2012 . 38 index replace_table_token_1_th revenue we recorded revenue of $ 3,067,577 during the year ended december 31 , 2013 compared to $ 1,118,118 during the year ended december 31 , 2012. product revenue was $ 3,023,503 for the year ended december 31 , 2013 , from the sale of blood plasma collected in our fda-licensed , gha-certified georgia based blood plasma collection center compared to product revenue of $ 1,118,118 for the year ended december 31 , 2012. product revenue for the year ended december 31 , 2013 was primarily attributed to sales made pursuant to our plasma supply agreement with biotest during june 2012 , under which biotest purchases normal source plasma from our georgia facility to be used in their manufacturing . the increase in product revenue of $ 1,905,385 was attributed to increased advertising and promotions to attract more plasma donors as well as the expansion of additional plasma donor equipment . for the year ended december 31 , 2013 , license revenue was $ 44,074 , which relates to services provided by biotest in accordance with our license agreement with them . there was no license revenue for the same period in 2012. we have not generated any revenue from our therapeutics , research and development business . cost of product revenue cost of product revenue was $ 2,023,441 for the year ended december 31 , 2013 , an increase of $ 1,354,385 from $ 669,056 for the year ended december 31 , 2012. the increased cost of product revenues for the year ended december 31 , 2013 was related to the costs associated with the increased production and sale of normal source plasma . research and development expenses research and development expenses were $ 9,303,077 for the year ended december 31 , 2013 , an increase of $ 5,833,999 from $ 3,469,078 for the year ended december 31 , 2012. research and development expenses consist of consulting expenses relating to regulatory affairs , quality control and manufacturing , assay development and ongoing testing costs , clinical trial costs and fees , drug product manufacturing including the cost of plasma , plasma storage and transportation costs , as well as wages and benefits for staff directly related to the research and development of ri-002 . research and development expenses increased primarily as a result of higher manufacturing , testing , and regulatory costs for our phase iii clinical study , which has completed enrollment and related wages and stock-based compensation expense during the year ended december 31 , 2013 . 39 index plasma center operating expenses plasma center operating expenses were $ 2,418,156 for the year ended december 31 , 2013 , an increase of $ 671,292 from $ 1,746,864 for the year ended december 31 , 2012. plasma center operating expenses consist of general and administrative overhead , including rent , maintenance and utilities , wages and benefits for center staff , plasma collection supplies , plasma transportation and storage ( off-site ) , advertising and promotion expenses , and computer software fees related to donor collections . the increase in plasma center expenses was primarily a result of increased donor collections during the year ended december 31 , 2013. we expect that as plasma collection increases , our plasma center operating expenses will also increase accordingly . story_separator_special_tag the financial accounting standards board has issued certain accounting pronouncements as of december 31 , 2013 that will become effective in subsequent periods ; however , we do not believe that any of those pronouncements would have significantly affected our financial accounting measurements or disclosures had they been in effect during the year ended december 31 , 2013 or that they will have a significant impact at the time they become effective . critical accounting policies and estimates on april 5 , 2012 , the jobs act was signed into law . the jobs act contains provisions that , among other things , reduce certain reporting requirements for qualifying public companies . as an “ emerging growth company , ” we may , under section 7 ( a ) ( 2 ) ( b ) of the securities act , delay adoption of new or revised accounting standards applicable to public companies until such standards would otherwise apply to private companies . we may take advantage of this extended transition period until the first to occur of the date that we ( i ) are no longer an “ emerging growth company ” or ( ii ) affirmatively and irrevocably opt out of this extended transition period . we have elected to take advantage of the benefits of this extended transition period . our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards . until the date that we are no longer an “ emerging growth company ” or affirmatively and irrevocably opt out of the exemption provided by securities act section 7 ( a ) ( 2 ) ( b ) , upon issuance of a new or revised accounting standard that applies to our financial statements and that has a different effective date for public and private companies , we will disclose the date on which adoption is required for non-emerging growth companies and the date on which we will adopt the recently issued accounting standard . 44 index this management 's discussion and analysis of financial condition and results of operations is based on our financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states of america , or gaap . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues and expenses . on an ongoing basis , we evaluate these estimates and assumptions , including those described below . we base our estimates on our historical experience and on various other assumptions that we believe to be reasonable under the circumstances . these estimates and assumptions form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results and experiences may differ materially from these estimates . some of the estimates and assumptions we have to make under gaap require difficult , subjective and or complex judgments about matters that are inherently uncertain and , as a result , actual results could differ from those estimates . due to the estimation processes involved , the following summarized accounting policies and their application are considered to be critical to understanding our business operations , financial condition and results of operations . stock-based compensation stock-based compensation cost is measured at grant date , based on the estimated fair value of the award , and is recognized as expense over the employee 's requisite service period on a straight-line basis . we account for stock options granted to non-employees on a fair value basis using the black-scholes option pricing model . the non-cash charge to operations for non-employee options with vesting are revalued at the end of each reporting period based upon the change in the fair value of the options and amortized to consulting expense over the related contract service period . for the purpose of valuing options and warrants granted to our employees , non-employees and directors and officers during the year ended december 31 , 2013 , we used the black-scholes option pricing model . we granted options to purchase an aggregate of 84,134 shares of common stock during the year ended december 31 , 2013. the options were granted to non-executive employees . to determine the risk-free interest rate , we utilized the u.s. treasury yield curve in effect at the time of grant with a term consistent with the expected term of our awards . the expected term of the options granted is in accordance with staff accounting bulletin 107 which is based the average between vesting term and contractual term . the expected dividend yield reflects our current and expected future policy for dividends on our common stock . the expected stock price volatility for our stock options was calculated by examining historical volatilities for similar publicly traded industry peers , since we do not have any trading history for our common stock . we will continue to analyze the expected stock price volatility and expected term assumptions as historical data for our common stock becomes available . we have not experienced any material forfeitures of stock options and as such , have not established a forfeiture rate . since the stock options currently outstanding are primarily held by our senior management and directors , we will continue to evaluate the effects of such future potential forfeitures , as they may arise , to evaluate our estimated forfeiture rate . due to our limited history , we use the simplified method to determine the expected life of the option grants . research and development costs our expenses include all research and development costs as incurred including the disposition of plasma and equipment for which there is no alternative future use . such expenses include costs associated with planning and conducting clinical trials . 45 index our agreement with biotest includes the in-license of certain rights to
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | net cash used in operating activities net cash used in operating activities was $ 10,887,154 for the year ended december 31 , 2013. the net loss for this period was higher than net cash used in operating activities by $ 4,640,092 , which was primarily attributable to increases in inventory of $ 403,465 , prepaid expenses of $ 190,969 mostly related to our phase iii vendor payments for clinical sites , manufacturing and clinical research organization services , deferred revenue of $ 1,700,000 related to license revenue , accounts payable of $ 1,608,980 related to increased clinical and manufacturing expense and timing of payments incurred with our vendors and service providers and a decrease in other assets of $ 593,051 comprised of the elimination of our restricted cash balance requirement by our landlord of $ 452,000 through meeting our rental obligations , offset by stock-based compensation of $ 888,295 and depreciation and amortization of $ 210,633. net cash used in operating activities was $ 6,903,795 for the year ended december 31 , 2012. the net loss for the year ended december 31 , 2012 is higher than cash used in operating activities by $ 397,518 , as a result of increases in restricted cash related to our letter of credit for our georgia facility , inventories of finished goods normal source plasma available for sale and accrued expenses primarily relating to accrued compensation , offset by a decrease in accounts payable and non-cash expenses of stock-based compensation of $ 626,787 and depreciation and amortization of $ 182,089. net cash used in investing activities net cash used in investing activities was $ 3,131,819 for the
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we undertake no obligation to revise or update any forward-looking statements to reflect any event or circumstance that arises after the date of this report , or to conform such statements to actual results or changes in our expectations . overview we are a commercial drug delivery company committed to improving the quality of life for patients with ear , nose and throat conditions . our fda approved products are steroid releasing implants designed to treat adult patients suffering from chronic sinusitis , who are managed by ent physicians . these products include our propel ® family of products ( propel ® , propel ® mini and propel ® contour ) and the sinuva ® ( mometasone furoate ) sinus implant . the propel family of products are used in conjunction with sinus surgery primarily in hospitals and ambulatory surgery centers and sinuva is designed to be used in the physician 's office setting of care to treat adult patients who have had ethmoid sinus surgery yet suffer from recurrent sinus obstruction due to polyps . the propel family of products are devices approved under a premarket approval , or pma and sinuva is a drug that was approved under a new drug application , or nda . our propel family of steroid releasing implants are clinically proven to improve outcomes for chronic sinusitis patients following sinus surgery . propel implants mechanically prop open the sinuses and release mometasone furoate , an advanced corticosteroid with anti-inflammatory properties , directly into the sinus lining , and then dissolve . propel 's safety and effectiveness is supported by level 1-a clinical evidence from multiple clinical trials , which demonstrates that propel implants reduce inflammation and scarring after surgery , thereby reducing the need for postoperative oral steroids and repeat surgical interventions . more than 280,000 patients have been treated with propel products to-date . propel clinical outcomes have been reported in a meta-analysis of prospective , multicenter , randomized , controlled , double-blind clinical studies to improve surgical outcomes , demonstrating a 35 % relative reduction in the need for postoperative interventions compared to surgery alone . a physician may treat a patient with propel by inserting it into the ethmoid sinuses . propel is a self-expanding implant designed to conform to and hold open the surgically enlarged sinus while gradually releasing an anti-inflammatory steroid over a period of approximately 30 days and is absorbed into the body over a period of approximately six weeks . propel mini has also been shown by our clinical studies to reduce the need for postoperative interventions , including a 38 % relative reduction in the need for postoperative interventions in the frontal sinus , compared to surgery alone with standard postoperative care . propel mini is a smaller version of propel and is approved for use in both the ethmoid and frontal sinuses . propel mini is preferentially used by physicians compared with propel when treating smaller anatomies or following less extensive procedures . propel contour is designed to facilitate treatment of the frontal and maxillary sinus ostia , or openings , of the dependent sinuses in procedures performed in both the operating room and in the office setting of care . propel contour 's lower profile , hourglass shape and malleable delivery system are designed for use in the narrow and difficult to access sinus ostia . in propel contour 's pivotal 53 clinical study , the product demonstrated a 65 % relative reduction in the need for postoperative interventions in the frontal sinus ostia compared to surgery alone with standard postoperative care . sinuva , when placed during a routine physician office visit , expands into the sinus cavity and delivers an anti-inflammatory steroid directly to the site of polyp disease for 90 days . we have studied sinuva in 4 clinical trials in over 400 patients to-date . results from the pivotal resolve ii randomized clinical trial demonstrated a 74 % relative reduction in bilateral polyp grade ( a measurement of the extent of ethmoid polyp disease ) and a 30 % relative reduction in nasal obstruction and congestion for patients treated with sinuva compared to a control group treated with a sham procedure , receiving no implant . patients in both arms of the study were required to use an intranasal steroid spray daily . in addition , the study demonstrated a 61 % reduction in the proportion of patients indicated for revision surgery at day 90. to supplement clinical trials performed with sinuva to-date , in which one course of sinuva treatment was evaluated , we commenced the encore study in november 2017. encore was a 50-patient multicenter , open-label study focused on evaluation of the safety of repeat placement of sinuva in a population of chronic sinusitis patients with nasal polyps . study findings showed zero serious adverse events related to the implants during the measurement period and zero serious adverse events related to repeat placement . our propel family of products are used almost exclusively in the operating room of a hospital or ambulatory surgery center . these providers receive a facility fee for the sinus surgery procedure which is intended to pay for supplies used in this procedure , including the propel family of products . reimbursement submissions to cover the cost of sinuva may be reported to payors using the unassigned healthcare common procedure coding system , or hcpcs , code j3490 . we applied to the centers for medicare & medicaid services , or cms , for a product-specific j code for sinuva in the 2018 process but this code was not granted . we have submitted a new application seeking a product-specific j code in the 2019 process . story_separator_special_tag the preparation of these financial statements requires us to make estimates and assumptions for the reported amounts of assets , liabilities , revenue , expenses and related disclosures . our estimates are based on our historical experience and on various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions and any such differences may be material . while our significant accounting policies are more fully described in note 2 of our financial statements included in this annual report , we believe the following discussion addresses our most critical accounting policies , which are those that are most important to the portrayal of our financial condition and results of operations and require our most difficult , subjective and complex judgments . revenue recognition we adopted asc topic 606 , revenue from contracts with customers , on january 1 , 2018 using the cumulative effect transition method . the adoption did not have an effect on our financial condition or results of operations as of the adoption date and therefore no cumulative effect adjustment was required to reflect the transition requirements of topic 606. this standard applies to all contracts with customers , except for contracts that are within the scope of other standards . under topic 606 , we recognize revenue when our customer obtains control of promised goods in an amount that reflects the consideration which we expect to receive in exchange for those goods . to determine revenue recognition for arrangements that we determine are within the scope of topic 606 , we perform the following five steps : ( i ) identify the contract with a customer ; ( ii ) identify the performance obligations in the contract ; ( iii ) determine the transaction price ; ( iv ) allocate the transaction price to the performance obligations in the contract ; and ( v ) recognize revenue when , or as , we satisfy the performance obligations . we only apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods we transfer to the customer . at contract inception , once the contract is determined to be within the scope of topic 606 , we assess the goods promised within each contract and determine those that are performance obligations and assess whether each promised good is distinct . the contracts are typically in the form of a purchase order from the customer . we then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when , or as , the performance obligation is satisfied . we must make assumptions regarding the future collectability of amounts receivable from customers to determine whether revenue recognition criteria have been met . the amount of variable consideration that is included in the net sales price may be constrained , and is included in the net sales price , or transaction price , only to the extent that we estimate it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period . we expense shipping and handling costs as incurred and include them in the cost of sales . in those cases where shipping and handling costs are billed to customers , we classify the amounts billed as a component of revenue . taxes collected from customers and remitted to governmental authorities are excluded from revenues . we expense any incremental costs of obtaining a contract as and when incurred as the expected amortization period of the incremental costs would have been less than one year . the propel family of products are regulated by the fda as medical devices . we recognize revenue through sales of our propel family of products to hospitals and ambulatory surgery centers located almost entirely in the united states when control of the product is transferred to the customer , typically upon shipment of goods to the customer , satisfying our only performance obligation . the fda has approved sinuva as a pharmaceutical product and it is therefore regulated as such . we sell sinuva to a limited number of specialty pharmacies and specialty distributors in the united states , or resellers . these resellers subsequently sell sinuva to health care providers . revenue from sinuva sales are recognized when control of the product is transferred to the resellers , typically upon receipt of goods by the reseller , satisfying our only performance obligation . we also recognize reseller fees , prompt pay discounts , product sales discounts , rebates , returns and other allowances as a reduction of revenue in the same period the 60 related revenue is recognized . in addition to the agreements with the resellers , we enter into arrangements with governmental agencies that result in rebates , chargebacks and discounts with respect to the purchase of sinuva . these amounts may include medicaid and tricare rebates , chargebacks related to federal supply schedule of the general services administration , distribution and pricing agreement with the department of defense and 340b of the public health service act as well as other allowances that may be offered within contracts between us and our direct or indirect customers relating to our sales of sinuva , collectively referred to as discounts and rebates. discounts and rebates are based on amounts owed or expected to be owed on the related sales . these estimates take into consideration our historical experience , the shelf life of the product , current contractual and statutory requirements , specific known market events and trends and industry data . overall , these reserves reflect our best estimates of the amount of consideration to which we are
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources overview as of december 31 , 2018 , we had cash , cash equivalents and short-term investments of $ 100.8 million , compared to cash , cash equivalents and short-term investments of $ 102.3 million as of december 31 , 2017 . 57 cash flows replace_table_token_6_th net cash used in operating activities during the year ended december 31 , 2018 , net cash used in operating activities was $ 13.8 million , consisting primarily of a net loss of $ 22.9 million and an increase in net operating assets of $ 5.1 million , partially offset by non-cash charges of $ 14.2 million . the cash used in operations was due primarily to an increase in headcount and related expenses to support the ongoing commercialization of our propel family of products and the launch of sinuva in march 2018. the non-cash charges primarily consisted of stock-based compensation expense . the increase in net operating assets is primarily due to an increase in accounts receivable and inventory , partially offset by an increase in accounts payable . during the year ended december 31 , 2017 , net cash used in operating activities was $ 8.0 million , consisting primarily of a net loss of $ 16.4 million and an increase in net operating assets of $ 2.9 million , partially offset by non-cash charges of $ 11.3 million . the cash used in operations was due primarily to an increase in headcount to support the ongoing commercialization of our propel family of products and to prepare for the launch of sinuva . the non-cash charges consisted primarily of stock-based compensation expense . the increase in net operating assets is due primarily to an increase in inventory , accounts receivable and other assets , partially offset by an increase in accrued year-end bonuses and sales commissions .
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the cd & r investor and deere received all of the net proceeds and bore all commissions and discounts from the sale of our common stock . we did not receive any proceeds from the ipo . on the day prior to the closing of the ipo , all of our then-outstanding preferred stock converted into shares of common stock , resulting in the issuance by us of an additional 25,303,164 shares of our common stock . the conversion of preferred stock is accounted for from the date of conversion and is not retroactively adjusted in our financial statements and related notes included in this annual report on form 10-k. secondary public offerings on december 5 , 2016 , certain selling stockholders completed a public offering of 10,350,000 shares of our common stock at a price of $ 33.00 per share . we did not receive any of the proceeds from the shares of common stock sold by the selling stockholders . on may 1 , 2017 , certain selling stockholders completed a public offering of 11,500,000 shares of our common stock at a price of $ 47.50 per share . we did not receive any of the proceeds from the shares of common stock sold by the selling stockholders . on july 26 , 2017 , certain selling stockholders completed a public offering of 5,437,502 shares of our common stock at a price to the underwriter of $ 51.63 per share . we did not receive any proceeds from the shares of common stock sold by the selling stockholders . 33 following consummation of the secondary offering on july 26 , 2017 , cd & r and deere no longer have an ownership interest in the company . presentation our financial statements included in this report have been prepared in accordance with generally accepted accounting principles in the united states of america ( “ gaap ” ) . we use a 52/53 week fiscal year with the fiscal year ending on the sunday nearest to december 31 in each year . our fiscal quarters end on the sunday nearest to march 31 , june 30 and september 30 , respectively . this discussion of our financial condition is presented for the 2017 fiscal year , which ended on december 31 , 2017 and included 52 weeks and 252 selling days , the 2016 fiscal year , which ended on january 1 , 2017 and included 52 weeks and 253 selling days , and the 2015 fiscal year , which ended on january 3 , 2016 and included 53 weeks and 256 selling days . “ selling days ” are defined below within the key business and performance metrics section . we manage our business as a single reportable segment . within our organizational framework , the same operational resources support multiple geographic regions and performance is evaluated at a consolidated level . we also evaluate performance based on discrete financial information on a regional basis . since all of our regions have similar operations and share similar economic characteristics , we aggregate regions into a single operating and reportable segment . these similarities include ( 1 ) long-term financial performance , ( 2 ) the nature of products and services , ( 3 ) the types of customers we sell to and ( 4 ) the distribution methods used . key business and performance metrics we focus on a variety of indicators and key operating and financial metrics to monitor the financial condition and performance of our business . these metrics include : net sales . we generate net sales primarily through the sale of landscape supplies , including irrigation systems , fertilizer & control products , landscape accessories , nursery goods , hardscapes and outdoor lighting to our customers who are primarily landscape contractors serving the residential and commercial construction sectors . our net sales include billings for freight and handling charges , and commissions on the sale of control products that we sell as an agent . net sales are presented net of any discounts , returns , customer rebates , and sales or other revenue-based tax . non-gaap organic sales . in managing our business , we consider all growth , including the opening of new greenfield branches , to be organic growth unless it results from an acquisition . when we refer to organic sales growth , we include increases in growth from newly-opened greenfield branches and decreases in growth from closing existing branches but exclude increases in growth from acquired branches until they have been under our ownership for at least four full fiscal quarters at the start of the fiscal reporting period . non-gaap selling days . selling days are defined as business days , excluding saturdays , sundays and holidays , that our branches are open during the year . depending upon the location and the season , our branches may be open on saturdays and sundays ; however for consistency , those days have been excluded from the calculation of selling days . non-gaap organic daily sales . we define organic daily sales as organic sales divided by the number of selling days in the relevant reporting period . we believe organic sales growth and organic daily sales growth are useful measures for evaluating our performance as we may choose to open or close branches in any given market depending upon the needs of our customers or our strategic growth opportunities . cost of goods sold . our cost of goods sold includes all inventory costs , such as purchase price paid to suppliers , net of any rebates received , as well as inbound freight and handling , and other costs associated with inventory . our cost of goods sold excludes the cost to deliver the products to our customers through our branches , which is included in selling , general and administrative expenses . story_separator_special_tag gross profit and gross margin gross profit for the 2017 fiscal year increased 15 % to $ 595.5 million as compared to $ 515.7 million for the 2016 fiscal year . gross profit growth was driven by the net sales increase resulting from organic sales growth and acquisitions in addition to margin expansion resulting from our operational initiatives . gross margin increased 70 basis points to 32.0 % in the 2017 fiscal year as compared to 31.3 % in the 2016 fiscal year . operational improvement in category management was the primary contributor to the growth . product mix did not have a significant impact on gross margins . acquisitions did not contribute to the margin improvement . selling , general and administrative expenses ( operating expenses ) operating expenses for the 2017 fiscal year increased 12 % to $ 502.2 million from $ 446.5 million for the 2016 fiscal year . the increase in operating expenses was primarily driven by our growth from acquisitions . operating expenses expressed as a percentage of net sales decreased to 27.0 % for the 2017 fiscal year compared to 27.1 % for the 2016 fiscal year . the decrease in operating expenses as a percentage of sales reflects non-recurrence of ipo related costs which occurred in the 2016 fiscal year partially offset by increased 38 investment in marketing , e-commerce and the sales force . depreciation and amortization increased $ 6.1 million to $ 43.1 million primarily as result of our acquisitions . interest expense and other non-operating ( income ) expense interest expense and other non-operating ( income ) expense increased $ 3.1 million to $ 25.2 million in the 2017 fiscal year from $ 22.1 million in the 2016 fiscal year . the increase in interest expense was principally driven by the higher debt levels resulting from the refinancing of the term loan facility in the 2016 fiscal year and the acquisition investments in the 2017 fiscal year . income tax ( benefit ) expense income tax expense was $ 18.0 million during the 2017 fiscal year as compared to income tax expense of $ 21.3 million during the 2016 fiscal year . the effective tax rate was 24.8 % during the 2017 fiscal year as compared to 41.0 % for the 2016 fiscal year . the decrease in the effective tax rate was due primarily to ( i ) the adoption of asu 2016-09 in the first quarter of 2017 , which resulted in the recognition of excess tax benefits as a reduction of income tax expense in the company 's consolidated statements of operations , and ( ii ) the december 2017 enactment of the tax cuts and jobs act ( the “ 2017 tax act ” ) . the 2017 tax act includes a number of changes to existing u.s. tax laws , most notably a reduction of the u.s. corporate income tax rate from 35 % to 21 % , which required us to re-measure certain deferred tax assets and liabilities in the reporting period in which the 2017 tax act was signed into law , and a one-time transition tax on certain foreign earnings that were previously deferred . net income net income for the 2017 fiscal year increased 78 % to $ 54.6 million as compared to $ 30.6 million for the 2016 fiscal year . the increase in net income was primarily attributable to our lower effective tax rate , growth in sales both organically and through acquisitions , and the expansion of gross margin resulting from operational improvements . comparison of the 2016 fiscal year to the 2015 fiscal year net sales net sales for the 2016 fiscal year increased 14 % to $ 1,648.2 million as compared to $ 1,451.6 million for the 2015 fiscal year . organic sales growth contributed 3 % to overall growth , and acquisitions contributed an additional 11 % . net sales growth for the 2016 fiscal year , adjusted for one less week in the 2016 fiscal year compared to the 2015 fiscal year , would have been approximately one percentage point greater , or total net sales growth of 15 % and organic sales growth of 4 % . organic sales growth was driven by growth in the irrigation , nursery , landscape accessories , hardscapes and outdoor lighting categories , which together grew over 6 % as a result of continued growth in residential and commercial construction . organic sales for fertilizer and control products decreased 2 % reflecting modest market demand , fewer selling days , and the negative impact of branch consolidations . acquisitions contributed $ 157.0 million to net sales growth . costs of goods sold cost of goods sold for the 2016 fiscal year increased 11 % to $ 1,132.5 million from $ 1,022.5 million for the 2015 fiscal year . the increase in cost of goods sold was primarily driven by the increased net sales growth , including acquisitions , partially offset by lower material cost , including manufacturing incentives . gross profit and gross margin gross profit for the 2016 fiscal year increased 20 % to $ 515.7 million as compared to $ 429.1 million for the 2015 fiscal year . gross profit growth was driven by the net sales increase resulting from organic sales growth and acquisitions in addition to margin expansion resulting from our operational initiatives . gross margin increased 170 basis points to 31.3 % in the 2016 fiscal year as compared to 29.6 % in the 2015 fiscal year . operational improvements in pricing and category management were the primary contributors , each accounting for approximately half of the increase . product mix did not have a significant impact on gross margins . acquisitions contributed approximately 20 basis points to the margin improvement . selling , general and administrative expenses ( operating expenses ) operating expenses for the 2016 fiscal year increased 20 % to $ 446.5 million from $ 373.3 million for the
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources our ongoing liquidity needs are expected to be funded by cash on hand , net cash provided by operating activities and , as required , borrowings under the abl facility . we expect that cash provided from operations and available capacity under the abl facility will provide sufficient funds to operate our business , make expected capital expenditures , and meet our liquidity requirements for the following 12 months , including payment of interest and principal on our debt . our borrowing base capacity under the abl facility was $ 162.0 million as of december 31 , 2017 , after giving effect to approximately $ 127.0 million of revolving credit loans under the abl facility , a $ 36.0 million increase from $ 91.0 million of revolving credit loans as of january 1 , 2017. as of december 31 , 2017 , we had total cash and cash equivalents of $ 16.7 million , total debt ( net of debt discounts and issuance costs ) of $ 463.6 million and capital leases of $ 11.7 million . working capital was $ 396.1 million as of december 31 , 2017 , an increase of $ 91.6 million as compared to $ 304.5 million as of january 1 , 2017. the increase in working capital is attributable to growth in the business primarily through acquisitions . capital expenditures were $ 14.5 million for the 2017 fiscal year and represent an average of 0.8 % net sales over the year . capital expenditures have averaged $ 11.3 million annually from the 2015 fiscal year to the 2017 fiscal year and represent an average of 0.7 % net sales over this time period .
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the primary endpoint in the study is the percentage of patients in each arm that maintain sua control below 6.0 mg/dl , for at least 80 % of the time during months three and six . we plan to commence the phase 3 clinical program in sel-212 in the second half of 2020. we will require additional resources to complete the planned phase 3 clinical program for sel-212 . we expect our clinical and , if approved , marketing strategy for sel-212 to initially focus on the estimated 160,000 patients in the united states with chronic refractory gout , and to focus on those patients that are being treated by rheumatologists . gene therapy 76 in august 2019 , we entered into a feasibility study and license agreement with askbio , the askbio collaboration agreement , pursuant to which we and askbio will conduct proof of concept studies to potentially validate the use of our immtor platform in conjunction with an aav gene therapy to mitigate the formation of neutralizing anti-aav capsid antibodies , which currently precludes redosing . the initial product candidate being developed under this collaboration is gene therapy for mma which can cause severe developmental defects and premature death as a result of an accumulation of toxic metabolites . we previously conducted preclinical studies for this product candidate based on sel-302 and will leverage that previous work within the collaboration . if the proof of concept studies are successful , we will proceed with a collaboration to pursue the development and commercialization of aav gene therapy product candidates utilizing immtor for the treatment of certain agreed serious rare and orphan genetic diseases . we plan to enter the clinic under this collaboration in 2020. additionally , in december 2019 we entered into the askbio license agreement which provides askbio with exclusive worldwide rights to our immtor platform to research , develop and commercialize certain aav-gene therapy products targeting the gaa gene , or derivatives thereof , to treat pompe disease . in september 2018 , we announced a collaboration with the european consortium , curecn , for an immtor+aav gene therapy combination product candidate in crigler-najjar syndrome , a rare genetic disorder characterized by an inability to properly convert and clear bilirubin from the body . we expect the curecn consortium to obtain scientific advice from the german drug regulatory authority in 2020. in december 2016 , we entered into the spark license agreement which provides spark with exclusive worldwide rights to our immtor platform to research , develop and commercialize gene therapies for factor viii , an essential blood clotting protein relevant to the treatment of hemophilia a. our proprietary gene therapy product candidate , sel-313 , is being developed to treat otc deficiency and is currently in preclinical development . financial operations overview financial operations to date , we have financed our operations primarily through the public offering and private placements of our securities , funding received from research grants and collaboration arrangements and our credit facility . we do not have any products approved for sale and have not generated any product sales . all of our revenue to date has been collaboration and grant revenue . since inception , we have incurred significant operating losses . we incurred net losses of $ 55.4 million and $ 65.3 million for the years ended december 31 , 2019 and 2018 , respectively . as of december 31 , 2019 , we had an accumulated deficit of $ 335.8 million . we expect to continue to incur significant expenses and operating losses for at least the next several years as we : - conduct additional clinical trials for sel‑212 ; - continue the research and development of our other product candidates as well as product candidates that we may be developing jointly with collaboration partners ; - seek to enhance our immtor platform and discover and develop additional product candidates ; - seek to enter into collaboration , licensing and other agreements , including , but not limited to research and development , and or commercialization agreements ; - seek regulatory approvals for any product candidates that successfully complete clinical trials ; - potentially establish a sales , marketing and distribution infrastructure and scales‑up external manufacturing capabilities to commercialize any products for which we may obtain regulatory approval ; - maintain , expand and protect our intellectual property portfolio , including through licensing arrangements ; and - add clinical , scientific , operational , financial and management information systems and personnel , including personnel to support our product development and potential future commercialization efforts and to support our operations as a public company . until such time , if ever , as we can generate substantial product revenues , we expect to finance our cash needs through a combination of equity offerings , debt financings , license and collaboration agreements , and research grants . we may be unable to raise capital when needed or on reasonable terms , if at all , which would force us to delay , limit , reduce or terminate our product development or future commercialization efforts . we will need to generate significant revenues to achieve profitability , and we may never do so . 77 we will require additional external sources of capital to complete the planned phase 3 clinical program for sel-212 . under the terms of our exclusive patent license agreement with the massachusetts institute of technology , or the mit license , mit may terminate the mit license if we fail to meet a diligence obligation , including the initiation of a phase 3 clinical trial by a specified date in the fourth quarter of 2019. on december 13 , 2019 , we entered into the fourth amendment , which we refer to as the mit amendment , to the exclusive patent license agreement by and between us and the massachusetts institute of technology , or the mit agreement . story_separator_special_tag if the achievement of a milestone is considered a direct result of our efforts to satisfy a performance obligation or transfer a distinct good or service and the receipt of the payment is based upon the achievement of the milestone , the associated milestone value is allocated to that distinct good or service . if the milestone payment is not specifically related to our effort to satisfy a performance obligation or transfer a distinct good or service , the amount is allocated to all performance obligations using the relative standalone selling price method . we also evaluate the milestones to determine whether they are considered probable of being reached and estimates the amount to be included in the transaction price using the most likely amount method . if it is probable that a significant revenue reversal would not occur , the associated milestone value is included in the transaction price to be allocated , otherwise , such amounts are constrained and excluded from the transaction price . at the end of each subsequent reporting period , we re-evaluate the probability of achievement of such development milestones and any related constraint , and if necessary , adjusts our estimate of the transaction price . any such adjustments to the transaction price are allocated to the performance obligations on the same basis as at contract inception . amounts allocated to a satisfied performance obligation shall be recognized as revenue , or as a reduction of revenue , in the period in which the transaction price changes . manufacturing supply services : arrangements that include a promise for future supply of drug substance or drug product for either clinical development or commercial supply at the customer 's discretion are evaluated to determine if they are distinct and optional . for optional services that are distinct , we assess if they are priced at a discount , and therefore , provide a material right to the licensee to be accounted for as separate performance obligations . royalties : for arrangements that include sales-based royalties , including milestone payments based on the level of sales , and the license is deemed to be the predominant item to which the royalties relate , we will recognize revenue at the later of ( i ) when the related sales occur , or ( ii ) when the performance obligation to which some or all of the royalty has been allocated has been satisfied ( or partially satisfied ) in accordance with the royalty recognition constraint . warrant liabilities in december 2019 , we issued common warrants in connection with the 2019 purchase agreement . pursuant to the terms of these common warrants , we could be required to settle the common warrants in cash in the event of certain acquisitions of the company and , as a result , the common warrants are required to be measured at fair value and reported as a liability on the balance sheet . we recorded the fair value of the common warrants of $ 40.7 million upon issuance using the black-scholes valuation model , and are required to revalue the common warrants at each reporting date with any changes in fair value recorded on our statement of operations . inputs used to determine estimated fair value of the common warrant liabilities include the estimated fair value of the underlying stock at the valuation date , the estimated term of the warrants , risk-free interest rates , expected dividends and the expected volatility of the underlying stock . as of december 31 , 2019 , the fair value of the common warrants of $ 41.5 million was recorded as a long-term liability on our balance sheet , which resulted in a change in fair value of $ 0.9 million for the year ended december 31 , 2019 . additionally , we allocated $ 1.2 million of the transaction costs associated with the 2019 purchase agreement to financing expense on our statement of operations . the remaining $ 3.2 million of transaction costs were offset against the proceeds allocated to our common stock and pre-funded warrants . stock‑based compensation we account for all stock‑based compensation granted to employees and non‑employees using a fair value method . stock‑based compensation is measured at the grant date fair value using the black‑scholes option pricing model and is recognized over the requisite service period of the awards , usually the vesting period , on a straight‑line basis , net of estimated forfeitures . we 81 reduce recorded stock‑based compensation for estimated forfeitures . to the extent that actual forfeitures differ from management 's estimates , the differences are recorded as a cumulative adjustment in the period the estimates were adjusted . stock‑based compensation expense recognized in the consolidated financial statements is based on awards that are ultimately expected to vest . emerging growth company status the jumpstart our business startups act of 2012 , or the jobs act , permits an ‘ ‘ emerging growth company `` such as us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies until those standards would otherwise apply to private companies . we have irrevocably elected not to avail ourselves of this exemption and , therefore , we will be subject to the same new or revised accounting standards as other public companies that are not emerging growth companies . smaller reporting company we qualify as a “ smaller reporting company ” under the rules of the securities act and the exchange act . as a result , in addition to the exemptions available to us as an “ emerging growth company , ” we may choose to take advantage of certain scaled disclosure requirements available specifically to smaller reporting companies . additionally , even if we cease to be an emerging growth company as noted above , as long as we continue to be a smaller reporting company , we may continue to rely on the reduced
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources since our inception , we have incurred recurring net losses . we expect that we will continue to incur losses and that such losses will increase for the foreseeable future . we expect that our research and development and general and administrative expenses will continue to increase and , as a result , we will need additional capital to fund our operations , which we may raise through a combination of equity offerings , debt financings , third‑party funding and other collaborations and strategic alliances . from our inception through december 31 , 2019 , we have raised an aggregate of $ 416.0 million to fund our operations , which includes $ 118.5 million from the sale of preferred stock , $ 11.1 million in government grant funding , $ 25.3 million from borrowings under our credit facility , $ 46.3 million from our collaborations and license agreements , $ 64.5 million in combined net proceeds from our initial public offering $ 118.4 million in combined net proceeds from private placements of our common stock in june 2017 and august and december 2019 , $ 30.9 million from an underwritten follow-on offering of our common stock in january 2019 , and $ 1.0 million in aggregate net proceeds from `` at-the-market '' offerings of our common stock in 2019. collaborations on december 17 , 2019 , we entered into the askbio license agreement .
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we recorded a charge of $ 45.4 million ( before tax and non-controlling interest ) , or $ 0.28 per diluted share . the charge includes remeasurement of net monetary assets ( $ 12.1 million ) and a non-cash impairment 26 charge to adjust venezuelan inventory balances ( $ 33.3 million ) . had the sicad ii rate been applied throughout all of 2014 , we estimate it would have reduced full-year revenues and eps by approximately $ 95 million and $ 0.11 per share , respectively . after these charges , we had $ 4.6 million of bolivar-denominated net monetary assets and $ 8.9 million of inventory in venezuela as of december 31 , 2014. on february 9 , 2015 , the venezuelan government announced changes to its exchange rate system that included the launch of a new , market-based system called the marginal currency system , or “ simadi , ” that will replace the sicad ii rate . the company is currently evaluating this announcement . adoption of the simadi rate would result in additional charges to remeasure the net monetary assets and impair other assets . inventory accounting methodology in the fourth quarter of 2014 we elected to change our method of accounting for certain inventory from the last-in-first-out ( lifo ) method to the first-in-first-out ( fifo ) method and now all inventory is accounted for using the fifo method . we applied this change in method of inventory accounting by retrospectively adjusting the prior period financial statements . further details about the impact of this change are discussed in note 2 to the combined and consolidated financial statements . acquisitions in january 2014 , we completed the acquisition of certain assets of schlage lock de colombia s.a. , the second largest mechanical lock manufacturer in colombia . in april 2014 , we completed the acquisition of fire & security hardware pty limited ( fsh ) , an electromechanical locking provider in australia . total consideration paid for these acquisitions was approximately $ 23.0 million . 2014 dividends we paid quarterly dividends of $ 0.08 per ordinary share to shareholders on march , 31 , 2014 , june 30 , 2014 , september 30 , 2014 , and december 30 , 2014. we paid a total of $ 30.0 million in cash for dividends to ordinary shareholders during the year ended december 31 , 2014. spin-off related charges for the year ended december 31 , 2014 we incurred $ 28.6 million of separation costs associated with the spin-off from ingersoll rand , of which $ 28.2 million was recognized in selling and administrative expenses in our results of operations and $ 0.4 million was recognized in cost of goods sold . separation costs for the year ended december 31 , 2014 primarily include professional and consulting fees , system implementation costs and relocation and other personnel related costs . we do not expect separation costs incurred in 2015 to be material . the components of separation costs incurred for the year ended december 31 , 2014 are presented below ( in millions ) : it related $ 9.6 hr related 8.1 finance related 3.0 marketing and re-branding 2.6 other 5.3 total $ 28.6 restructuring charges in the second quarter of 2014 management committed to a plan to restructure our emeia segment to improve efficiencies and regional cost structure . in conjunction with this plan , we incurred severance and other restructuring charges of $ 6.1 million and other charges of $ 0.4 million for the year ended december 31 , 2014. joint venture order flow change previously , our consolidated joint venture in asia acted as a pass-through to the end customer . beginning in 2013 , the consolidated joint venture no longer recognizes the revenue and cost of goods sold on these products because of a revised joint venture operating agreement . products are shipped direct to the end customer with the joint venture receiving a royalty in an amount that approximates the lost margin . we recognized revenue of approximately $ 52.0 million related to this business in our americas segment for the 27 year ended december 31 , 2013. the change did not have a material impact on operating income or on cash flows for the year ended december 31 , 2014. discontinued operations in the second quarter of 2014 management committed to a plan to sell its united kingdom ( uk ) door businesses to an unrelated third party . the transaction closed in the third quarter of 2014. the businesses sold included the dor-o-matic branded automatic door business , the martin roberts branded performance steel doorset business and the uk service organization . historical results of the component have been reclassified to discontinued operations for all periods presented . in conjunction with the sale , we recorded a $ 7.6 million charge to write the carrying value of the assets sold down to their selling value . 28 results of operations - for the years ended december 31 replace_table_token_6_th net revenues net revenues for the year ended december 31 , 2014 increased by 2.4 % ( $ 48.7 million ) compared to the same period in 2013 due to the following : pricing 2.2 % volume/product mix 2.8 % acquisitions 0.4 % impact of consolidated asia joint venture order flow change ( 2.5 ) % currency exchange rates ( 0.5 ) % total 2.4 % the increase in net revenues was primarily driven by improved pricing , higher volumes , the acquisition of the schlage de colombia assets in january 2014 and the acquisition of fsh in april 2014. the pricing improvements were primarily driven by our consolidated joint venture in venezuela and were largely offset by material inflation and other inflation in venezuela . these increases were partially offset by the impact of the change in order flow through our consolidated joint venture in asia discussed above . story_separator_special_tag this segment also resells schlage , von duprin and lcn products , primarily in the middle east . as discussed above , in 2014 we sold our uk door businesses to an unrelated third party . historical results of the component have been reclassified to discontinued operations for all periods presented . during the year ended december 31 , 2013 , we recorded a non-cash pre-tax goodwill impairment charge of $ 137.6 million , which has been excluded from these results . segment results for the years ended december 31 were as follows : replace_table_token_10_th 2014 vs 2013 net revenues for the year ended december 31 , 2014 decreased by 2.0 % ( $ 8.0 million ) compared to the same period in 2013 due to the following : pricing 1.0 % currency exchange rates 0.1 % volume/product mix ( 1.3 ) % restructuring actions ( 1.8 ) % total ( 2.0 ) % the decrease in revenues was primarily due to decreased volumes due to economic weakness in certain markets as well as lower revenue as a result of managements ' actions to exit unprofitable businesses . these decreases were partially offset by improved pricing and favorable foreign currency exchange rate movements . segment operating income for the year ended december 31 , 2014 increased $ 5.2 million compared to the same period in 2013. the increase was primarily due to pricing improvements and productivity in excess of inflation ( $ 14.4 million ) , and favorable foreign currency exchange rate movements and other items ( $ 0.5 million ) . these increases were partially offset by lower volumes ( $ 3.7 million ) , increased investment spending ( $ 3.0 million ) and increased separation costs incurred in connection with the spin-off and restructuring charges ( $ 3.0 million ) . segment operating margin for the year ended december 31 , 2014 increased to 1.2 % from ( 0.1 ) % compared to the same period in 2013 . the increase was primarily due to pricing improvements and productivity in excess of inflation ( 3.6 % ) and favorable foreign currency exchange rate movements and other items ( 0.2 % ) . these increases were partially offset by unfavorable volume/product mix ( 0.9 % ) , increased investment spending ( 0.8 % ) and increased separation costs incurred in connection with the spin-off and restructuring charges ( 0.8 % ) . 2013 vs 2012 net revenues for the year ended december 31 , 2013 decreased by 0.9 % ( $ 3.7 million ) compared to the same period in 2012 due to following : volume/product mix ( 4.1 ) % pricing 1.0 % currency exchange rates 2.2 % total ( 0.9 ) % 34 the decrease in revenues was primarily due to decreased volumes due to economic weakness in most major markets , partially offset by favorable currency impacts and improved pricing . segment operating loss for the year ended december 31 , 2013 decreased $ 10.4 million compared to the same period in 2012 . this decrease was primarily due to decreased volume ( $ 12.9 million ) , increased investment spending and other items ( $ 4.3 million ) and increased restructuring and non-recurring separation costs ( $ 1.5 million ) . these decreases were partially offset by pricing improvements and productivity in excess of inflation ( $ 7.4 million ) and favorable foreign currency exchange rate movements ( $ 0.9 million ) . segment operating margin for the year ended december 31 , 2013 decreased to ( 0.1 ) % from 2.5 % compared with the same period of 2012 . this decrease was primarily due to increased restructuring and non-recurring separation costs ( 0.4 % ) , unfavorable volume leverage ( 1.9 % ) , unfavorable mix ( 0.9 % ) and increased investment spending and non-operating costs ( 1.4 % ) , partially offset by pricing improvements in excess of material inflation ( 0.6 % ) , productivity benefits in excess of other inflation ( 1.4 % ) and favorable foreign currency exchange rate movements ( 0.2 % ) . asia pacific our asia pacific segment provides security products and solutions in approximately 14 countries throughout the asia pacific region . the segment offers end-users a broad range of products , services and solutions including , locks , locksets , key systems , door closers , exit devices , electronic product and access control systems , and as well as video analytics solutions . this segment 's strategic brands are schlage , cisa , von duprin and lcn . segment results for the years ended december 31 were as follows : replace_table_token_11_th 2014 vs 2013 net revenues for the year ended december 31 , 2014 increased by 7.4 % ( $ 11.4 million ) compared to the same period in 2013 , due to the following : volume/product mix 5.6 % pricing 0.3 % acquisitions 2.8 % currency exchange rates ( 1.3 ) % total 7.4 % the increase in revenues was mainly due to favorable volume/product mix and revenue from the acquisition of fsh and improved pricing , partially offset by unfavorable foreign currency impacts . segment operating income for the year ended decreased $ 23.1 million . the decrease in operating income was primarily due to the $ 21.5 million gain on the sale of a property in china in 2013 , a $ 1.9 million one-time benefit related to the closure of our asia joint venture manufacturing facility in 2013 , $ 2.0 million of non-recurring favorable items in 2013 , a $ 2.5 million charge to increase the allowance for doubtful accounts in the second quarter of 2014 , increased investment spending ( $ 1.4 million ) , unfavorable foreign currency exchange rate movements ( $ 0.7 million ) and increased separation costs incurred in connection with the spin-off ( $ 0.7 million ) . these decreases were partially offset by increased volume ( $ 5.1 million ) and
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | sources and uses of liquidity our primary source of liquidity is cash provided by operating activities . cash provided by operating activities is used to invest in new product development , fund capital expenditures and fund working capital requirements and is expected to be adequate to service any future debt , pay any declared dividends and potentially fund acquisitions and share repurchases . our ability to fund these capital needs depends on our ongoing ability to generate cash provided by operating activities , and to access our borrowing facilities ( including unused availability under our revolver ) and capital markets . we believe that our future cash provided by operating activities , together with our access to funds on hand and capital markets , will provide adequate resources to fund our operating and financing needs . the following table reflects the major categories of cash flows for the years ended december 31 , respectively . for additional details , please see the combined and consolidated statements of cash flows in the combined and consolidated financial statements . replace_table_token_12_th operating activities net cash provided by operating activities for the year ended december 31 , 2014 increased $ 32.0 million compared to the same period in the prior year . operating cash flows for 2014 reflect higher earnings from continuing operations compared to the same period in the prior year as well as lower working capital . net cash provided by operating activities for the year ended december 31 , 2013 decreased $ 45.3 million compared to the same period in the prior year .
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we believe future acquisitions could strengthen our competitive position , enhance the products and services that we can offer to customers , expand our customer base , grow our revenues and increase our overall value . fiscal 2014 acquisition in october 2013 , we entered into a tender offer agreement with cameleon software sa ( `` pros france `` ) . as a result of shares purchased in the market following the completion of the tender in january 2014 , the exercise of warrants in july 2014 , and second tender completed in november 2014 , we controlled 100 % of pros france 's common stock as of december 31 , 2014. we acquired pros france for total cash consideration of approximately $ 32 million , net of cash acquired . fiscal 2013 acquisition in december 2013 , we acquired signaldemand , inc. for total cash consideration of $ 13.5 million . financing activities in december 2014 , we issued $ 143.8 million aggregate principal amount of 2.0 % convertible senior notes due december 1 , 2019 , unless earlier purchased or converted . interest is payable semiannually in arrears on june 1 and december 1 of each year , commencing on june 1 , 2015. backlog our backlog is derived from agreements that we believe to be firm commitments to provide software solutions and related services in the future . our backlog is based on significant estimates and judgments that we make regarding total contract values , as well as maintenance renewals and changes to existing maintenance and support agreements . backlog includes committed maintenance , amounts under maintenance and support agreements that we reasonably expect to renew , as well as deferred revenue . we compute our backlog as of a specific date , and we update our backlog to reflect changes in our estimates and judgments or subsequent additions , delays , terminations or reductions in our agreements . backlog can vary significantly from period to period depending on a number of factors including the timing of our sales and the nature of the agreements we enter into with our customers . for example , we have agreements that include non-standard provisions which require us to exercise judgment over the extent to which to include these agreements in our backlog . however , based on our history of successfully implementing our software solutions , we generally include the full estimated value of these agreements in backlog . for these and other reasons , our backlog may not be a meaningful indicator of future revenue to be recognized in any particular quarter , and there can be no assurance that our backlog at any point in time will translate into revenue in any specific quarter . furthermore , as we continue our migration to a saas provider , our historical definition of backlog and the relevance to our future revenues may change . we had backlog of approximately $ 209 million as of december 31 , 2015 as compared to backlog of approximately $ 194 million as of december 31 , 2014 . the portion of our backlog as of december 31 , 2015 not reasonably expected to be recognized as revenue within the next twelve months is estimated to be approximately $ 86 million . opportunities , trends and uncertainties we have noted opportunities , trends and uncertainties that we believe are particularly significant to understand our financial results and condition . 28 cloud-first strategy . we have historically sold the majority of our products via perpetual licenses . we also sold our solutions via term licenses or saas , which defers revenue recognition . in connection with our subscription based cloud-first strategy announced in 2015 , we expect to sell a lower percentage of perpetual licenses and more subscription-based solutions such as saas and subscription cloud-based solutions . following a transition period , we expect this business model will increase our recurring subscription revenue . we anticipate that this strategy will result in lower license revenue , lower total revenues and lower operating cash flows in 2016. however , we do not anticipate a corresponding decrease in expenses in 2016 , which will adversely affect our net income , operating margins and cash flow . variability in bookings . historically , we have experienced the strongest customer demand in fourth and second quarters of each year . however , the size and timing of orders for our products and services varies considerably , which can cause significant fluctuations in our bookings results from quarter to quarter . due to our average deal sizes , our bookings in any particular quarter have in the past , and may continue in the future , to be dependent on a relatively small number of orders . during 2015 , we experienced unanticipated sales execution challenges which we believe stemmed from the pace of change associated with our cloud-first strategy . the timing of our bookings also varies based on a number of factors over which we may have little or no control , including the complexity of the transaction , our customers ' internal budgeting and approval processes , our customers purchasing behaviors and the level of competition . variability in revenue . the timing of our revenue recognition varies based on the nature and requirements of our contracts . in conjunction with our cloud-first announcement in 2015 , we expect to have an increasing number of subscription contracts , which will result in less license revenue recognized in 2016. the timing of our revenue recognition for our saas solutions also varies based on the mix of products sold . for example , our saas solutions purchased by our travel customers often require more complex implementations which can delay the commencement of subscription revenue recognition . story_separator_special_tag deferred revenue does not reflect the total contract value of our customer arrangements at any point in time as we only record deferred revenue if amounts are invoiced in advance of the corresponding recognition of license and implementation revenue . as a result , there is little correlation between the timing of our revenue recognition , the timing of our invoicing and the amount of deferred revenue . 32 results of operations comparison of year ended december 31 , 2015 with year ended december 31 , 2014 revenue : replace_table_token_5_th license revenue . for the year ended december 31 , 2015 , license revenue decreased $ 25.8 million to $ 32.7 million from $ 58.5 million for the year ended december 31 , 2014 , representing a 44 % decrease . our license revenue is dependent on the amount of perpetual licenses sold in the period , as well as the timing of revenue recognition . as a result of our shift to a cloud-first strategy , we experienced a decrease in the sale of perpetual licenses and a corresponding decrease in license revenue , which included a decrease of $ 18.2 million in license revenue recognized upon software delivery . we recognized $ 9.0 million and $ 27.2 million of license revenue upon software delivery for the years ended december 31 , 2015 and 2014 , respectively . as a result of our shift to a cloud-first strategy , we expect customers will be purchasing more subscription-based solutions such as saas and cloud-based solutions , resulting in lower future license revenue . services revenue . for the year ended december 31 , 2015 , services revenue decreased $ 6.4 million to $ 42.9 million from $ 49.2 million for the year ended december 31 , 2014 , representing a 13 % decrease . the decrease in services revenue was primarily attributable to several customer implementations that were completed in 2014 with significant professional services and to a lesser extent certain pre-packaged offerings requiring less professional services . in addition , even though the total number of customers generating services revenue increased to 212 for the year ended december 31 , 2015 , as compared to 193 in the corresponding period in 2014 , an increase of 10 % , the decrease in services revenue was also attributed to an overall lower effective services man-day rate . subscription revenue . for the year ended december 31 , 2015 , subscription revenue increased $ 5.5 million to $ 29.0 million from $ 23.5 million for the year ended december 31 , 2014 , representing a 24 % increase . the increase in subscription revenue was primarily attributable to an increase in the number of customers subscribing to our saas and cloud-based solutions . the total number of customers generating subscription revenue was 102 for the year ended december 31 , 2015 , as compared to 90 in the corresponding period in 2014 , an increase of 13 % . we expect our subscription revenue will continue to increase as a result of our shift to a cloud-first strategy . maintenance and support . maintenance and support revenue increased $ 9.0 million to $ 63.7 million for the year ended december 31 , 2015 from $ 54.6 million for the year ended december 31 , 2014 , representing a 17 % increase . the increase in maintenance and support revenue was principally a result of an increase in the number of customers purchasing maintenance and support services related to their licensing of our software . we expect our maintenance revenue growth will decrease as a result of customers licensing less of our software as we shift to a cloud-first strategy . 33 cost of revenue and gross profit . replace_table_token_6_th cost of license . cost of license primarily consists of third-party fees for licenses . cost of license increased $ 0.1 million for the year ended december 31 , 2015 to $ 0.3 million from $ 0.2 million for the year ended december 31 , 2014 , representing a 25 % increase . license gross profit percentages for the year ended december 31 , 2015 and 2014 , remained relatively unchanged as a result of limited third-party fees for licensed software incurred over both periods . cost of services . cost of services decreased $ 3.8 million to $ 36.1 million for the year ended december 31 , 2015 from $ 40.0 million for the year ended december 31 , 2014 , representing a 10 % decrease . the decrease was primarily attributable to a decrease in personnel costs used in our software implementations of $ 2.6 million and a decrease in other overhead expenses of $ 1.2 million . services gross profit percentages for the years ended december 31 , 2015 and 2014 , were 16 % and 19 % , respectively . the percent decrease in services gross profit was primarily driven by the completion of several implementations in 2014 with higher professional services man-day rates and lower professional services utilization during the year ended december 31 , 2015 . service gross profit percentages can vary from period to period depending on different factors , including the level of professional services required to implement our software and the utilization of our professional services personnel . cost of subscription . cost of subscription increased $ 5.5 million to $ 12.8 million for the year ended december 31 , 2015 from $ 7.3 million for the year ended december 31 , 2014 , representing a 74 % increase . the increase was primarily attributable to a $ 2.6 million increase in personnel costs and a $ 2.9 million increase in infrastructure costs to support our current and anticipated future subscription customer base . our subscription gross profit percentage for the years ended december 31 , 2015 and 2014 , was 56 % and 69 % , respectively . cost of maintenance and support . cost of maintenance and support revenue increased $
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | net cash provided by operating activities net cash provided by operating activities for the year ended december 31 , 2015 was $ 15.5 million , compared to $ 1.8 million for the year ended december 31 , 2014 . net cash provided by operating activities for the year ended december 31 , 2015 was primarily comprised of cash provided from net changes in working capital , including a $ 32.3 million decrease in accounts receivable due to lower revenue levels and higher collections , partially offset by our $ 65.8 million net loss and the net effect of non-cash items , including $ 27.9 million of share-based compensation , $ 10.4 million of depreciation and amortization , $ 6.0 million of amortization of debt discount and $ 2.9 million impairment of internal-use software . the $ 13.8 million increase in net cash from december 31 , 2014 was primarily due to the net impact of working capital changes , mainly driven by a decrease in accounts receivable . net cash provided by operating activities for the year ended december 31 , 2014 was $ 1.8 million , primarily comprised of our net loss of $ 37.6 million , non-cash items including $ 22.7 million of share based compensation , $ 10.4 million of depreciation and amortization , $ 12.6 million of deferred taxes and $ 4.0 million impairment of internal-use software , partially offset by a $ 10.5 million use of cash from changes in our working capital . the use of cash from changes in our working capital was principally due to a $ 14.0 million increase in accounts receivable as a result of higher revenue levels . net cash provided by operating activities for the year ended december 31 , 2013 was $ 17.0 million , primarily comprised of our net income prior to non-cash expenses such as depreciation and share based compensation , partially offset by net impact of working capital changes principally due to an increase in accounts receivable due to higher revenue levels .
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acquisitions and divestitures see note 2 , acquisitions and divestitures , to the consolidated financial statements included in item 8 of part ii of this 10-k for information regarding acquisitions and divestitures . 24 results of operations — fiscal 2017 compared to fiscal 2016 consolidated results of operations ( in millions ) : revenues replace_table_token_11_th total net revenues increased $ 1.1 billion , or 5 % , over fiscal 2016 , primarily driven by increased revenues from company-operated stores ( $ 807 million ) . the growth in company-operated store revenues was primarily driven by incremental revenues from 768 net new starbucks ® company-operated store openings over the past 12 months ( $ 869 million ) and a 3 % increase in comparable store sales ( $ 496 million ) , attributable to a 3 % increase in average ticket . partially offsetting these incremental revenues was the absence of the 53rd week ( $ 324 million ) , the absence of sales from the conversion of certain company-operated stores to licensed stores ( $ 121 million ) and the impact of unfavorable foreign currency translation ( $ 70 million ) . licensed store revenue growth also contributed to the increase in total net revenue ( $ 201 million ) , primarily due to increased product sales to and royalty revenues from our licensees ( $ 260 million ) , largely due to the opening of 1,552 net new starbucks ® licensed stores and improved comparable store sales , partially offset by the absence of the 53rd week ( $ 41 million ) and unfavorable foreign currency translation ( $ 27 million ) . cpg , foodservice and other revenues increased $ 64 million , driven by increased sales through our international channels , primarily associated with our european and north american regions ( $ 35 million ) , increased sales of u.s. packaged coffee ( $ 32 million ) , foodservice ( $ 30 million ) and premium single-serve products ( $ 23 million ) . increased sales were partially offset by the absence of the 53rd week ( $ 47 million ) and an unfavorable revenue deduction adjustment pertaining to periods prior to fiscal 2017 ( $ 13 million ) . operating expenses replace_table_token_12_th cost of sales including occupancy costs as a percentage of total net revenues increased 50 basis points , primarily driven by a product mix shift ( approximately 70 basis points ) largely towards premium food in the americas segment , partially offset by leverage on cost of sales and occupancy costs ( approximately 30 basis points ) . 25 store operating expenses as a percentage of total net revenues increased 60 basis points . store operating expenses as a percentage of company-operated store revenues increased 80 basis points , primarily driven by higher partner and digital investments , largely in the americas segment ( approximately 150 basis points ) , partially offset by sales leverage ( approximately 90 basis points ) . other operating expenses as a percentage of total net revenues decreased 10 basis points . excluding the impact of company-operated store revenues , other operating expenses decreased 50 basis points , primarily due to lower performance-based compensation ( approximately 20 basis points ) . general and administrative expenses as a percentage of total net revenues decreased 20 basis points , primarily driven by lower performance-based compensation ( approximately 30 basis points ) , and employment taxes , including the lapping of higher employment taxes resulting from a multiple year audit in the prior year ( approximately 20 basis points ) . these were partially offset by increased salaries and benefits related to digital platforms , technology infrastructure and innovations . restructuring and impairments charges in fiscal 2017 were primarily the result of our strategic changes in teavana . we recorded $ 130 million of restructuring–related costs , including a partial goodwill impairment of $ 69 million , store asset impairments , and costs related to early store closure obligations and severance . additionally , we recorded $ 18 million of partial goodwill impairment relating to our switzerland retail business . income from equity investees increased $ 73 million , due to higher income from our cap joint venture operations , primarily china and south korea , as well as our north american coffee partnership . the combination of these changes resulted in an overall decrease in operating margin of 110 basis points in fiscal 2017 when compared to fiscal 2016 . other income and expenses replace_table_token_13_th interest income and other , net increased $ 167 million , primarily driven by gains from the sale of our singapore retail operations ( $ 84 million ) and our investment in square , inc. warrants ( $ 41 million ) . also contributing favorably was higher income recognized on unredeemed stored value card balances ( $ 44 million ) . interest expense increased $ 11 million primarily related to additional interest incurred on long-term debt issued in february 2016 , may 2016 and march 2017 , partially offset by lower interest expense from the repayment of our december 2016 notes . the effective tax rate for fiscal 2017 was 33.2 % compared to 32.9 % for fiscal 2016 . the increase in the effective tax rate was primarily due to unfavorability from non-deductible goodwill impairment charges recorded in the third quarter of fiscal 2017 ( approximately 70 basis points ) , and the lapping of the release of certain tax reserves in the third quarter of fiscal 2016 , primarily related to statute closures ( approximately 30 basis points ) . the increase was partially offset by the largely non-taxable gain on the sale of our singapore retail operations in the fourth quarter of fiscal 2017 ( approximately 70 basis points ) . story_separator_special_tag 33 segment information results of operations by segment ( in millions ) : americas replace_table_token_22_th revenues americas total net revenues for fiscal 2016 increased $ 1.5 billion , or 11 % , primarily due to increased revenues from company-operated stores ( contributing $ 1.3 billion ) and licensed stores ( contributing $ 184 million ) . the increase in company-operated store revenues was driven by a 6 % increase in comparable store sales ( $ 730 million ) , incremental revenues from 348 net new starbucks® company-operated store openings over the past 12 months ( $ 481 million ) and the impact of the extra week in fiscal 2016 ( $ 258 million ) . partially offsetting these increases was unfavorable foreign currency translation ( $ 91 million ) , primarily driven by the strengthening of the u.s. dollar against the canadian dollar . the increase in licensed store revenues was primarily due to higher product sales to and royalty revenues from our licensees ( $ 150 million ) , resulting from the opening of 456 net new licensed stores over the past 12 months and improved comparable store sales , as well as the impact of the extra week in fiscal 2016 ( $ 31 million ) . operating expenses cost of sales including occupancy costs as a percentage of total net revenues decreased 80 basis points , primarily driven by leverage on cost of sales and occupancy costs ( approximately 50 basis points ) and lower commodity costs ( approximately 40 basis points ) . store operating expenses as a percentage of total net revenues increased 20 basis points . as a percentage of company-operated store revenues , store operating expenses increased 30 basis points , primarily driven by increased investments in store partners and digital platforms ( approximately 100 basis points ) , partially offset by sales leverage on salaries and benefits ( approximately 80 basis points ) . other operating expenses as a percentage of total net revenues decreased 30 basis points . excluding the impact of company-operated store revenues , other operating expenses decreased 280 basis points , primarily due to a settlement in the fourth quarter of fiscal 2016 related to the closure of target canada stores in the prior year ( approximately 140 basis points ) , the lapping of impairment of certain assets in the region ( approximately 60 basis points ) and improved collection results ( approximately 40 basis points ) . the combination of these changes resulted in an overall increase in operating margin of 110 basis points over fiscal 2015 . 34 china/asia pacific replace_table_token_23_th revenues china/asia pacific total net revenues for fiscal 2016 increased $ 543 million , or 23 % , largely due to increased revenues from company-operated stores ( contributing $ 513 million ) . the increase in company-operated store revenues was primarily due to the opening of 359 net new company-operated stores over the past 12 months ( $ 246 million ) and incremental revenues from the impact of our ownership in starbucks japan ( $ 105 million ) . also contributing was a 3 % increase in comparable store sales ( $ 61 million ) , the impact of the extra week in fiscal 2016 ( $ 52 million ) and favorable foreign currency translation ( $ 49 million ) . licensed store revenues increased $ 28 million , primarily due to increased product sales to and royalty revenues from licensees ( $ 47 million ) , resulting from the opening of 622 net new licensed store openings over the past 12 months , partially offset by unfavorable foreign currency translation ( $ 15 million ) and a decrease in licensed store revenues resulting from the impact of our ownership change in starbucks japan ( $ 6 million ) . operating expenses cost of sales including occupancy costs as a percentage of total net revenues decreased 60 basis points , primarily due to the impact of our ownership change in starbucks japan ( approximately 30 basis points ) and favorability from changes to certain business tax structures in china ( 30 basis points ) . store operating expenses as a percentage of total net revenues increased 100 basis points . as a percentage of company-operated store revenues , store operating expenses increased 80 basis points , primarily driven by higher partner and digital investments and payroll-related expenditures ( approximately 90 basis points ) and the impact of our ownership change in starbucks japan ( approximately 40 basis points ) , partially offset by sales leverage on salaries and benefits ( approximately 60 basis points ) . other operating expenses as a percentage of total net revenues decreased 20 basis points . excluding the impact of company-operated store revenues , other operating expenses increased 40 basis points , primarily due to higher payroll-related expenditures ( approximately 140 basis points ) , investments in digital platforms ( approximately 80 basis points ) and the impact of our ownership change in starbucks japan ( approximately 60 basis points ) , partially offset by sales leverage ( approximately 220 basis points ) . general and administrative expenses as a percentage of total revenues decreased 60 basis points , primarily due to sales leverage on salaries and benefits ( approximately 40 basis points ) . income from equity investees as a percentage of total net revenues increased 10 basis points , primarily due to higher income from our joint venture operations , primarily in china and south korea ( approximately 70 basis points and 60 basis points , 35 respectively ) , partially offset by the shift in composition of our store portfolio to more company-operated stores ( approximately 50 basis points ) and the impact of our ownership change in starbucks japan ( approximately 50 basis points ) . the combination of these changes resulted in an overall increase in operating margin of 60 basis points over fiscal 2015. emea replace_table_token_24_th revenues emea total net revenues for fiscal
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash flows from operations were $ 4.2 billion in fiscal 2017 compared to $ 4.6 billion in fiscal 2016 . the change was primarily due to the timing of our cash payments for income taxes . capital expenditures were $ 1.5 billion in fiscal 2017 compared to $ 1.4 billion in fiscal 2016 . we returned $ 3.5 billion to our shareholders in fiscal 2017 through share repurchases and dividends compared to $ 3.2 billion in fiscal 2016. overview starbucks results for fiscal 2017 continued to demonstrate the strength of our global business model , and our ability to successfully make disciplined investments in our business and our partners . consolidated total net revenues increased 5 % to $ 22.4 billion , primarily driven by incremental revenues from 2,320 net new store openings over the past 12 months and a 3 % growth in global comparable store sales , partially offset by the absence of the 53rd week . consolidated operating income declined $ 37 million , or 1 % , to $ 4.1 billion . operating margin declined 110 basis points to 18.5 % , primarily due to increased partner investments , largely in the americas segment , restructuring and impairment charges and the absence of the 53rd week , partially offset by sales leverage .
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our end-market growth expectations include three to five percent growth in the oil and gas market , two to four percent growth in the electrical transmission and distribution , industrial , and residential markets , and one to three percent growth in the non-residential market . we expect acquisitions to contribute approximately 15 % to net sales growth in 2018 , including net sales growth from the acquisition of aclara . we expect reported earnings per diluted share for 2018 in the range of $ 6.10 to $ 6.50 and adjusted earnings per diluted share in the range of $ 6.95 to $ 7.35 ( 1 ) . finally , with our strong financial position and cash flows provided by operating activities , we expect to continue to enhance shareholder value through capital deployment . we expect free cash flow ( defined as cash flows from operating activities less capital expenditures ) to be equal to net income attributable to hubbell in 2018 . ( 1 ) effective with results of operations reported in the first quarter of 2018 , `` adjusted `` operating measures will no longer exclude restructuring and related costs , as these costs and the related savings are expected to return to a more consistent annual run-rate in 2018 , and therefore no longer affect the comparability of our underlying performance from period to period . our expectation for full year 2018 adjusted earnings per diluted share in the range of $ 6.95 to $ 7.35 excludes aclara acquisition-related and transaction costs . aclara acquisition-related costs include the amortization of identified intangible assets and inventory step-up amortization expense . results of operations our operations are classified into two reportable segments : electrical and power . for a complete description of the company 's segments , see part i , item 1 of this annual report on form 10-k. within these segments , hubbell serves customers in five primary end markets ; non-residential construction , residential construction , industrial , energy-related markets ( also referred to as oil and gas markets ) and utility markets ( also referred to as the electrical transmission and distribution market ) . in order of magnitude of net sales , the company 's served markets are non-residential construction , industrial , utility , oil and gas , and residential construction . growth of our five primary end markets was more consistent in 2017 as compared to recent years . higher margin businesses , such as our harsh and hazardous business , that declined in recent years experienced a recovery , and the gas market was strong , which complemented utility capital spend and storm-related activity that drove growth in electrical transmission and distribution markets . non-residential and residential market demand grew as well , but that growth was restrained by the lighting market , which experienced unit growth that was dampened by pricing headwinds . industrial markets were mixed , with declines in heavy industrial business , but improvement in telecommunications . with the return to more balanced growth and recovery of higher margin businesses , adjusted operating margin of our electrical segment has stabilized year over year , declining by only 30 basis points , while absorbing our investment in iot capabilities ( through the acquisition of idevices ) , restructuring-driven inefficiencies and pricing headwinds in our lighting business as well as material cost headwinds during the year . our power segment grew organic revenues by six percent , benefiting from growth in transmission and distribution markets , and adjusted operating margins in the power segment continued to be strong , expanding by 20 basis points as productivity drove improvement despite increasing material costs . hubbell incorporated - form 10-k 19 summary of consolidated results ( in millions , except per share data ) replace_table_token_4_th in the following discussion of results of operations , we refer to `` adjusted `` operating measures . we believe those adjusted measures , which exclude the impact of certain costs and gains , may provide investors with useful information regarding our underlying performance from period to period and allow investors to understand our results of operations without regard to items we do not consider a component of our core operating performance . the adjusted operating measures also provide useful information to understand the impact of the company 's restructuring and related activities and business transformation initiatives on its results of operations . management uses these adjusted measures when assessing the performance of the business . our adjusted operating measures exclude , where applicable , the following items , as shown in the reconciliations to the comparable gaap measures that follow . income tax expense associated with u.s. tax reform in 2017 , our consolidated results of operations include approximately $ 57 million of income tax expense associated with the tcja . our full year effective tax rate , which includes these income tax effects , was 43.6 % . as provided by sab 118 ( see note 1 — recent accounting pronouncements in the notes to consolidated financial statements ) , the company has included in the current period financial statements a provisional amount with respect to the deemed repatriation provisions of the tcja , the revaluation of u.s. deferred taxes and the u.s. and foreign tax costs associated with anticipated remittances related to certain of our outside basis differences . we have also included provisional amounts with respect to those states with current conformity to the internal revenue code . during the measurement period ( as defined in note 1 — significant accounting policies in the notes to consolidated financial statements ) , additional provisional amounts and adjustments to prior provisional amounts will be required as further guidance is issued and information is obtained , prepared and analyzed . these additional provisional amounts or adjustments to prior provisional amounts may be material . see note 12 — income taxes in the notes to consolidated financial statements for additional information . story_separator_special_tag the adjusted operating margin decreased primarily due to unfavorable product and business mix , pricing headwinds in our electrical segment , foreign exchange headwinds and cost increases that were greater than productivity gains . those unfavorable impacts to the adjusted operating margin were partially offset by realized savings from our restructuring and related actions and lower material costs . total other expense total other expense was $ 47.4 million in 2016 compared to $ 56.0 million in 2015. excluding reclassification costs that were incurred in 2015 , adjusted total other expense was $ 47.4 in 2016 compared to $ 36.3 million in 2015 and increased largely due to a $ 12.4 million increase in interest expense primarily related to the $ 400 million debt offering we completed in march 2016 . 24 hubbell incorporated - form 10-k income taxes the effective tax rate was 30.8 % in 2016 as compared to 32.6 % in 2015. the effective tax rate was higher in 2015 as compared to 2016 due to certain costs of the reclassification that were not deductible partially offset by international reorganization actions in 2015 as well as certain discrete items in 2016. additional information related to the company 's effective tax rate is included in note 12 — income taxes in the notes to consolidated financial statements . net income attributable to hubbell and earnings per diluted share net income attributable to hubbell was $ 293.0 million in 2016 and increased 6 % as compared to 2015. excluding restructuring and related costs and reclassification costs , adjusted net income attributable to hubbell was $ 316.8 million in 2016 and decreased 1 % as compared to 2015 , which reflects flat adjusted operating earnings , higher interest expense in 2016 , partially offset by the benefit of a lower effective tax rate as compared to 2015. earnings per diluted share in 2016 increased 10 % compared to 2015. adjusted earnings per diluted share in 2016 , increased 3 % and reflects a lower average number of diluted shares outstanding for the year , which declined by approximately 2.3 million as compared to 2015. segment results electrical segment replace_table_token_9_th net sales in the electrical segment were $ 2.5 billion , up three percent in 2016 as compared with 2015 due to the contribution of net sales from acquisitions . organic volume was higher , despite pricing headwinds , and was offset by the unfavorable impact of foreign currency translation . net sales were three percentage points higher due to the contribution of acquisitions . organic volume , including pricing headwinds , added one percentage point to net sales and foreign currency translation reduced net sales by one percentage point . within the segment , net sales of our lighting business group increased four percent in 2016 due to organic net sales growth of six percent , partially offset by a two percentage point headwind on pricing . within the lighting business group , organic net sales of residential lighting products increased by thirteen percent , partially offset by a three percentage point headwind on pricing , and commercial and industrial lighting products increased by four percent , partially offset by a two percentage point headwind on pricing . the aggregate net sales of our other business groups in the electrical segment increased by three percentage points , primarily due to five percentage points of net sales growth from acquisitions partially offset by two percentage points from foreign currency translation . the aggregate organic net sales volume of those other business groups was lower , by less than one percent , as lower net sales of products in industrial and energy-related markets , primarily our harsh and hazardous products , were almost entirely offset by net sales growth in construction-related businesses . operating income in the electrical segment for 2016 was $ 267.4 million and decreased four percent compared to 2015. operating margin in 2016 decreased by approximately 80 basis points to 10.9 % . excluding restructuring and related costs , the adjusted operating margin decreased by 90 basis points to 12.2 % in 2016. the decrease in the adjusted operating margin is primarily due to unfavorable product and business mix , foreign exchange headwinds , cost increases that were mostly offset by productivity gains , and pricing headwinds in our lighting business group . those unfavorable impacts were partially offset by realized savings from our restructuring and related actions and lower material costs . power segment replace_table_token_10_th net sales in the power segment were $ 1.0 billion , up four percent compared to 2015 , due to the contribution of net sales from acquisitions . organic volume and the impact of foreign currency translation were effectively flat , as organic volume increased by less than one percent and was offset by foreign currency headwinds of less than one percent . operating income in the power segment increased eight percent to $ 210.4 million in 2016. operating margin in 2016 increased by 60 basis points to 20.1 % . excluding restructuring and related costs , the adjusted operating margin in 2016 increased 30 basis points to 20.4 % . the increase in the adjusted operating margin is primarily due to favorable pricing and material costs , and productivity in excess of cost increases , including the reduction of an environmental liability in the fourth quarter of 2016 , partially offset by acquisitions , which increased operating income , but reduced operating margin by approximately 40 basis points . hubbell incorporated - form 10-k 25 financial condition , liquidity and capital resources cash flow replace_table_token_11_th comparable periods have been recast to reflect the adoption of the new accounting pronouncement for share-based payments ( asu 2016-09 ) as of january 1 , 2017. the following table reconciles our cash flows from operating activities to free cash flows for 2017 , 2016 and 2015 ( in millions ) : replace_table_token_12_th ( 1 ) free cash flow as a percent of net income attributable to
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | debt to capital at december 31 , 2017 and 2016 , long-term debt in the consolidated balance sheets was $ 987.1 million and $ 990.5 million , respectively , of long-term unsecured , unsubordinated notes , net of unamortized discount and the unamortized balance of capitalized debt issuance costs . principal amounts of the company 's long-term unsecured , unsubordinated notes at december 31 , 2017 are $ 300 million due in 2022 , $ 400 million due in 2026 , and $ 300 million due in 2027. in august 2017 , the company completed a public debt offering of $ 300 million of long-term , unsecured , unsubordinated notes maturing in august 2027 and bearing interest at a fixed rate of 3.15 % ( the `` 2027 notes '' ) . net proceeds from the issuance were $ 294.6 million after deducting the discount on the notes and offering expenses paid by the company . in september 2017 , the company applied the net proceeds from the 2027 notes to redeem all of its $ 300 million of long-term , unsecured , unsubordinated notes maturing in 2018 and bearing interest at a fixed rate of 5.95 % . in connection with this redemption , the company recognized a loss on the early extinguishment of the 2018 notes of $ 6.3 million on an after-tax basis . the 2022 notes , 2026 notes and 2027 notes are fixed rate indebtedness , are callable at any time with a make whole premium and are only subject to accelerated payment prior to maturity in the event of a default ( including as a result of the company 's failure to meet certain non-financial covenants ) under the indenture governing the notes , as modified by the supplemental indentures creating such notes , or upon a change in control triggering event as defined in such indenture . the company was in compliance with all non-financial covenants as of december 31 , 2017 . at december 31 , 2017 and 2016 , the company had $ 68.1 million and $ 3.2 million , respectively , of short-term debt outstanding .
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our platform lets businesses control their digital knowledge in the cloud and sync it to more than 150 services and applications , which we refer to as our knowledge network and includes amazon alexa , apple maps , bing , cortana , facebook , google , google assistant , google maps , siri and yelp . we have established direct data integrations with applications in our knowledge network that end consumers around the globe use to discover new businesses , read reviews and find accurate answers to their queries . our cloud-based platform , the yext knowledge engine , powers all of our key features , including listings , pages and reviews , along with our other features and capabilities . we offer annual and multi-year subscriptions to our platform . subscriptions are offered in a discrete range of packages with pricing based on specified feature sets and the number of licenses managed with our platform . we sell our solution globally to customers of all sizes , through direct sales efforts to our customers , including third-party resellers , and through a self-service purchase process . in transactions with resellers , we are only party to the transaction with the reseller and are not a party to the reseller 's transaction with its customer . while the majority of our revenue is based in the u.s. , we continue to grow internationally . we offer the same services internationally as we do in the united states , and we intend to continue to pursue a strategy of expanding our international operations . our revenue from non-u.s. operations was more than 14 % of total revenue for the fiscal year ended january 31 , 2019 . our non-u.s. revenue is defined as revenue derived from contracts that are originally entered into with our non-u.s. offices , regardless of the location of the customer . we generally direct non-u.s. customer sales to our non-u.s. offices . our business has evolved in recent years . for example : in 2016 , we launched specialized integrations to our platform with applications like uber and snapchat , added our reviews feature to our platform and held our inaugural industry and customer event in new york city . in 2017 , we introduced the yext app directory , which enables businesses to connect information from systems across the business , such as workforce management systems and customer relationship management databases and held our second annual industry and customer event , onward 2017 ( formerly called `` locationworld `` ) , in november 2017 , in new york city . in 2018 , we launched a global integration with amazon to give businesses control over the answers amazon alexa provides about them and held our third annual industry and customer event , onward18 , in october 2018 , in new york city . we have experienced rapid growth in recent periods , nearly all of which has been organic growth as we have not historically conducted many acquisitions . our revenue was $ 228.3 million , $ 170.2 million and $ 124.3 million for the fiscal years ended january 31 , 2019 , 2018 and 2017 , respectively . fiscal year our fiscal year ends on january 31 st . references to fiscal 2019 , for example , are to the fiscal year ended january 31 , 2019 . components of results of operations revenue we derive our revenue primarily from subscriptions and associated support to our cloud-based knowledge engine platform . our contracts are typically one year in length , but may be up to three years or longer in length . revenue is a function of the number of customers , the number of licenses with each customer , the package to which each customer subscribes , the price of the package and renewal rates . revenue is generally recognized ratably over the contract term beginning on the commencement date of each contract , which is the date our platform is made available to customers . at the beginning of each subscription term we invoice our customers , typically in annual installments , but also monthly , quarterly , and semi-annually . amounts that have been invoiced for non-cancelable contracts are recorded in accounts receivable and in unearned revenue or revenue , depending on when the transfer of control to customers has occurred . 37 cost of revenue cost of revenue primarily relates to costs incurred in association with our cloud-based knowledge engine platform , which includes fees we pay to our knowledge network application providers . the nature of these arrangements may be unpaid , fixed , or variable . the arrangements with many of our larger providers are unpaid . as the value of our customers ' digital knowledge increases over time to our knowledge network application providers , we expect that we will be able to negotiate lower or no fee contracts and , therefore , our provider fees as a percentage of total revenue will generally decline . cost of revenue also includes expenses related to hosting our platform and associated support , which is comprised of salaries , data center capacity costs , stock-based compensation expense , benefits , and other allocated overhead costs . operating expenses sales and marketing expenses . sales and marketing expenses consist primarily of personnel and related costs , including salaries , costs of obtaining revenue contracts and stock-based compensation expense . sales and marketing expenses also consist of costs related to advertising , marketing , brand awareness activities and lead generation . research and development expenses . research and development costs are expensed as incurred . story_separator_special_tag the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements , as well as the reported revenue generated and expenses incurred during the reporting periods . our estimates are based on our historical experience and various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about items that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . see note 2 `` summary of significant accounting policies `` to our consolidated financial statements for further discussion on our accounting policies . our most critical accounting policies and estimates , based on the degree of judgment and complexity , are discussed below . revenue recognition we derive our revenue primarily from our subscription and associated support to our cloud‑based knowledge engine platform , through contracts that are typically one year in length , but may be up to three years or longer in length . our subscriptions do not provide customers with the right to take possession of the software supporting the applications and , as a result , are accounted for as service contracts . the recognition of revenue is determined through application of the five-step model in accordance with asc 606. revenue is recognized upon transfer of control of services to our customers , including third-party resellers , in an amount that reflects the consideration we expect to receive in exchange for those services . in transactions with resellers , we contract only with the reseller , in which pricing and length of subscription and support services are agreed upon . the reseller negotiates the price charged and length of subscription and support service directly with its customer . we do not pay separate fees to third‑party resellers and do not have direct interactions with the reseller 's customer . revenue is generally recognized ratably over the contract term beginning on the commencement date of each contract , which is the date our platform is made available to our customers . amounts that have been invoiced for non-cancelable contracts are recorded in accounts receivable and in unearned revenue or revenue , depending on when the transfer of control to customers has occurred . see note 2 `` summary of significant accounting policies `` and note 3 `` revenue `` to our consolidated financial statements for further discussion on our revenue recognition . costs capitalized to obtain revenue contracts we capitalize costs to obtain revenue contracts which are incremental and recoverable , including sales commissions , certain related incentives , and associated payroll tax and fringe benefit costs . we amortize such costs on a straight-line basis over the average benefit period , which is typically three years for new contracts and one year for renewals . we determined the average benefit period having considered both qualitative and quantitative factors , most notably the estimated life of capitalized software development costs 44 resulting from additional functionality to our cloud‑based knowledge engine platform . amortization of costs capitalized to obtain revenue contracts is included in sales and marketing expense in the consolidated statements of operations and comprehensive loss . stock‑based compensation stock-based compensation for all employee stock‑based awards , including restricted stock units , restricted stock and options to purchase common stock , is measured at fair value on the date of grant and recognized over the service period . the fair value of restricted stock units and restricted stock are calculated based on the fair value of our common stock on the date of grant , while the fair value of stock options are calculated using a black‑scholes model . stock-based compensation expense is recognized over the requisite service periods of awards , which is typically four years for options and one to four years for restricted stock and restricted stock units . the estimated forfeiture rate applied is based on historical forfeiture rates . the estimated number of stock-based awards that will ultimately vest requires judgment , and to the extent actual results , or updated estimates , differ from our current estimates , such amounts will be recorded as a cumulative adjustment in the period actual results are realized or estimates are revised . a higher forfeiture rate will result in an adjustment that will decrease stock-based compensation expense , whereas a lower forfeiture rate will result in an adjustment that will increase stock-based compensation expense . our assumptions about stock price volatility are based on the average of the historical volatility for a sample of comparable companies . the expected life assumptions for employee grants are based upon the simplified method , as we do not yet have sufficient historical exercise data to provide a reasonable basis upon which to estimate our expected term due to the limited period of time our equity shares have been publicly traded . the risk-free interest rate is based on the u.s. treasury yield curve in effect at the time of grant . the dividend yield assumption is zero , because we have not historically paid any dividends and do not expect to declare or pay any dividends in the foreseeable future . we calculate the expected life assumptions for non-employees based on the remaining contractual term of the award , and plan to continue to use the contractual term upon adoption of asu 2018-07 , `` compensation - stock compensation ( topic 718 ) : improvements to non-employee share-based payment accounting , `` effective february 1 , 2019. we will continue to use judgment in evaluating the assumptions related to our stock-based compensation . as we continue to accumulate additional data related to our common stock , we may refine our estimates . if factors change and different assumptions are used , the impact to our stock-based compensation expense could
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash flows the following table summarizes our cash flows : replace_table_token_12_th 42 operating activities net cash provided by operating activities of $ 5.2 million for the fiscal year ended january 31 , 2019 was primarily due to a change in unearned revenue of $ 47.0 million and non-cash charges related to stock‑based compensation expense of $ 44.2 million , as well as a change in accounts payable , accrued expenses and other current liabilities of $ 17.3 million and non-cash charges related to depreciation and amortization expense of $ 6.8 million . these increases were partially offset by the net loss of $ 74.8 million , as well as changes in costs to obtain revenue contracts of $ 16.8 million , accounts receivable of $ 11.6 million , mainly due to timing of billing and cash collections during the period , and prepaid expenses and other current assets of $ 6.7 million . net cash used in operating activities of $ 32.4 million for the fiscal year ended january 31 , 2018 was primarily due to the net loss of $ 66.6 million , a change in accounts receivable of $ 17.0 million , mainly due to timing of billing and cash collections during the period , a change in deferred commissions of $ 4.4 million and a change in prepaid expenses and other current assets of $ 4.0 million .
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2015 financial results abbvie 's strategy has focused on delivering strong financial results , advancing and investing in its pipeline , and returning value to shareholders while ensuring a strong , sustainable growth business over the long term . in 2015 , abbvie 's worldwide net revenues grew by 15 percent to $ 22.9 billion , driven primarily by the continued strength of humira , both in the united states and internationally , the global launch of abbvie 's interferon-free hcv treatment , revenue growth in other key products including creon and duodopa , and post-acquisition revenues related to imbruvica . these increases were partially offset by a decline in net revenues of androgel , principally due to continued market declines and the entry of generic competition for the androgel 1 % formulation , as well as the continued decline of the company 's lipid franchise , and the unfavorable impact of foreign exchange . the company 's financial performance in 2015 included delivering fully diluted earnings per share of $ 3.13 , including after-tax costs totaling $ 410 million incurred in connection with the acquisition and integration of pharmacyclics , a $ 350 million after-tax charge for the purchase of a rare pediatric disease priority review voucher ( prv ) from united therapeutics corporation , a $ 100 million after-tax charge as a result of entering into an exclusive worldwide license agreement with c 2 n diagnostics ( c 2 n ) , after-tax foreign exchange losses of $ 170 million as a result of the liquidation in 2015 of remaining foreign currency positions related to the terminated proposed combination with shire plc ( shire ) in 2014 , after-tax charges of $ 129 million to increase the company 's litigation reserves , and an $ 83 million after-tax charge due to the achievement of a development milestone under the global collaboration with infinity pharmaceuticals , inc. ( infinity ) . refer to note 5 for further information regarding these items . abbvie 's financial performance in 2015 also reflected an improvement in gross margin to 80 percent of net revenues , primarily due to favorable product mix across the product portfolio , operating efficiencies , and the impact of foreign exchange rates . financial results for 2015 also reflected continued funding in support of abbvie 's emerging mid-and late-stage pipeline assets , continued investment in abbvie 's growth brands , and the global launch of abbvie 's interferon-free hcv treatment , viekira pak . in 2015 , the company generated cash flows from operations of $ 7.5 billion . these cash flows enabled the company to pay cash dividends to shareholders of $ 3.3 billion , repurchase approximately 46 million shares for $ 2.8 billion in the open market ( excluding the shares repurchased under an accelerated repurchase agreement ) , and continue to enhance its pipeline through licensing and collaboration activities including a $ 500 million payment to calico life sciences llc ( calico ) as a result of the satisfaction of certain conditions under the research and development ( r & d ) collaboration with calico for which a charge to acquired in-process research and development ( ipr & d ) was recorded in 2014. in addition , abbvie issued $ 16.7 billion aggregate principal amount of senior notes the proceeds of which were used to finance the acquisition of pharmacyclics and a $ 5.0 billion accelerated share repurchase agreement ( asr ) pursuant to which abbvie paid $ 5.0 billion for an aggregate 73 million shares of abbvie 's common stock . in october 2015 , abbvie 's board of directors declared a quarterly cash dividend of $ 0.57 per share of common stock payable in february 2016. this reflects an increase of approximately 12 percent over the previous quarterly rate of $ 0.51 per share of common stock . 2016 strategic objectives abbvie 's mission is to be an innovation-driven , patient-focused specialty biopharmaceutical company capable of achieving top-tier financial performance through outstanding execution and a consistent stream of innovative new medicines . abbvie intends to continue to advance its mission in a number of ways , including ( i ) growing revenues through continued strong performance from its existing portfolio of on-market products , including its flagship brands , humira , imbruvica and viekira pak , as well as growth from pipeline products ; ( ii ) expanding gross and operating margins ; ( iii ) continued investment in its pipeline 2015 form 10-k | 33 in support of opportunities in immunology , oncology , and virology , as well as continued investment in key on-market products ; ( iv ) augmentation of its pipeline through concerted focus on strategic licensing , acquisition and partnering activity with a focus on identifying compelling programs that fit abbvie 's strategic criteria ; and ( v ) returning cash to shareholders via dividends and share repurchases . in addition , abbvie anticipates several regulatory submissions and key data readouts from key clinical trials in 2016. abbvie expects to achieve its revenue growth objectives as follows : humira sales growth by driving biologic penetration across disease categories , increasing market leadership , strong commercial execution and expansion to new indications for hidradenitis suppurativa ( regulatory approval in the united states and eu achieved in 2015 ) and uveitis ( regulatory submissions in the united states and the eu are under review with approval expected in 2016 ) . imbruvica revenue growth driven by increasing market share within its four currently approved indications as well as indication expansion of imbruvica as a first-line therapy for cll ( currently under priority review by the fda ) . revenues for 2016 will also benefit from a full year of imbruvica revenue . story_separator_special_tag net revenues for abbvie 's consolidated lipid franchise , which included tricor , trilipix , niaspan , simcor and advicor , declined 45 percent in 2015 and 70 percent in 2014 due to the introduction of generic versions of these products in the u.s. market . generic competition began in november 2012 for tricor , july 2013 for trilipix , and september 2013 for niaspan . abbvie has voluntarily withdrawn simcor and advicor from the market and discontinued distribution as of december 31 , 2015 . 40 | 2015 form 10-k all other net revenues declined 21 percent in 2015 primarily due to reduced demand driven by market and share declines and a reduction in price for several of abbvie 's mature on-market products . gross margin replace_table_token_5_th the gross margin for 2015 , 2014 and 2013 reflected the favorable impact of product mix across the product portfolio , including humira , operational efficiencies , and price increases , partially offset by the effect of unfavorable foreign exchange rates and the loss of exclusivity for the lipid franchise . gross margin in 2015 also includes milestone revenue of $ 40 million from a collaboration partner related the company 's oncology program . gross margin in 2014 also includes royalty income of $ 81 million relating to prior periods as a result of the settlement of a licensing arrangement and lower amortization expense for intangible assets , partially offset by a $ 37 million impairment charge for an intangible asset . selling , general and administrative replace_table_token_6_th selling , general and administrative ( sg & a ) expenses declined in 2015 compared to 2014 , principally due to the absence of transaction-related costs totaling $ 1.7 billion incurred in 2014 in connection with the termination of the proposed combination with shire , as further discussed in note 5 of the notes to consolidated financial statements . sg & a expenses in 2014 also included a $ 129 million charge related to the branded prescription drug fee due to the issuance of final rules which resulted in an additional year of expense in 2014. refer to note 13 for further information . excluding these items , sg & a expenses increased in both 2015 and 2014 , reflecting increased selling and marketing support for new products , including the global launch of viekira , as well as spending relating to new indications and geographic expansion for humira and other growth brands . sg & a expenses in 2015 also included pharmacyclics acquisition and integration costs of $ 294 million , charges aggregating $ 165 million to increase the company 's litigation reserves and restructuring charges of $ 39 million . these increased costs were partially offset by the impact of favorable foreign exchange rates in 2015. research and development and acquired in-process research and development replace_table_token_7_th r & d expenses for 2015 included pharmacyclics acquisition and integration costs of $ 152 million , a $ 350 million charge related to the purchase of a priority review voucher from a third party , a $ 130 million 2015 form 10-k | 41 charge recorded due to the achievement of a development milestone under the collaboration with infinity , the post-acquisition r & d expenses of pharmacyclics , and restructuring charges of $ 32 million . r & d expenses in 2014 and 2013 included regulatory milestone payments of $ 40 million made to a collaboration partner for regulatory milestones related to the company 's hcv program and restructuring charges of $ 15 million , respectively . r & d expenses in 2015 and 2014 otherwise reflected added funding to support the company 's emerging mid- and late-stage pipeline assets and the continued pursuit of additional humira indications . these increases were partially offset by the impact of favorable foreign exchange rates in 2015 and 2014. ipr & d expenses in 2015 included a charge of $ 100 million as a result of entering into an exclusive worldwide license agreement with c 2 n to develop and commercialize anti-tau antibodies for the treatment of alzheimer 's disease and other neurological disorders . ipr & d expenses in 2014 included a charge of $ 275 million as a result of entering into a global collaboration with infinity to develop and commercialize duvelisib , a treatment for patients with cancer . ipr & d expense in 2013 included a charge of $ 175 million as a result of entering into a global license agreement with ablynx nv to develop and commercialize alx-0061 , a charge of $ 70 million as a result of entering into a global collaboration with alvine pharmaceuticals , inc. to develop alv003 , a charge of $ 45 million as a result of entering into a global collaboration with galapagos for cystic fibrosis therapies , and charges totaling $ 48 million as a result of entering into several other arrangements . refer to note 5 of the notes to consolidated financial statements for additional information related to the company 's collaborations and other arrangements . other operating expenses other operating expenses in 2014 included a $ 750 million charge related to an r & d collaboration agreement entered into in september 2014 with calico to discover , develop and commercialize new therapies for patients with age-related diseases . other non-operating expenses interest expense , net was $ 686 million in 2015 , $ 391 million in 2014 , and $ 278 million in 2013 and was comprised primarily of interest expense on outstanding debt . interest expense , net in 2015 increased due to the may 2015 issuance of $ 16.7 billion aggregate principal amount of senior notes , which were issued primarily to finance the acquisition of pharmacyclics and an accelerated share repurchase program . interest expense , net in 2015 also included $ 86 million of bridge financing related fees incurred in connection with the acquisition of pharmacyclics . interest expense , net in
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash discounts and product returns allowances for cash discounts and product returns , which totaled $ 898 million , $ 610 million and $ 748 million in 2015 , 2014 and 2013 , respectively , are recorded as a reduction to revenue in the same period the related product is sold . the reserve for cash discounts is readily determinable because the company 's experience of payment history is fairly consistent . product returns can be reliably estimated based on the company 's historical return experience . pension and other post-employment benefits abbvie engages outside actuaries to assist in the determination of the obligations and costs under the plans that are direct obligations of abbvie . the valuation of the funded status and the net periodic benefit cost for these plans are calculated using actuarial assumptions . the significant assumptions , which are reviewed annually , include the discount rate , the expected long-term rate of return on plan assets , and the health care cost trend rates . the significant assumptions used in determining these calculations are disclosed in note 11 to the consolidated financial statements . the discount rate is selected based on current market rates on high-quality , fixed-income investments at december 31 each year . abbvie employs a yield-curve approach for countries where a robust bond market exists . the yield curve is developed using high-quality bonds . the yield curve approach reflects the plans ' specific cash flows ( i.e. , duration ) in calculating the benefit obligations by applying the specific spot rates along the yield curve . beginning in 2016 , abbvie will also reflect the plans ' specific cash flows and apply them to the specific spot rates along the yield curve in calculating the service cost and interest cost portions of expense . for other countries , abbvie reviews various indices such as corporate bond and government bond benchmarks to estimate the discount rate .
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our net losses were $ 88.3 million , $ 117.2 million and $ 74.8 million for the years ended december 31 , 2020 , 2019 and 2018 , respectively . as of december 31 , 2020 , we had an accumulated deficit of $ 404.6 million . we expect to incur significant expenses and operating losses for the foreseeable future . in january 2020 , we announced a reduction in workforce by approximately one third as part of a strategic plan designed to create a leaner company focused on advancing sgt-001 . as we seek to develop and commercialize sgt-001 or any other product candidates , we anticipate that our expenses will increase significantly and that we will need substantial additional funding to support our continuing operations . until such time as we can generate significant revenue from product sales , if ever , we expect to finance our operations through a combination of public or private equity financings , debt financings or other sources , which may include licensing agreements or strategic collaborations . we may be unable to raise additional funds or enter into such agreements or arrangements when needed on favorable terms , if at all . if we fail to raise capital or enter into such agreements as and when needed , we may have to significantly delay , scale back or discontinue the development or commercialization of sgt-001 or our other product candidates . 86 because of the numerous risks and uncertainties associated with product development , we are unable to predict the timing or amount of increased expenses or determine when or if we will be able to achieve or maintain profitability . even if we are able to generate revenue from product sales , we may not become profitable . if we fail to become profitable or are unable to sustain profitability on a continuing basis , then we may be unable to continue our operations at planned levels and be forced to reduce or terminate our operations . on january 30 , 2018 , we completed our initial public offering in which we sold 8,984,375 shares of our common stock , including shares of our common stock issued upon the exercise in full of the underwriters ' over-allotment option , at a public offering price of $ 16.00 per share , resulting in net proceeds of $ 129.1 million , after deducting underwriting discounts and commissions and offering expenses . in july 2019 , we completed a private placement of shares of our common stock and pre-funded warrants to purchase shares of our common stock resulting in net proceeds to us of $ 57.9 million , after deducting offering costs . in october 2020 , we entered into a collaboration and license agreement , or the collaboration agreement , with ultragenyx pharmaceutical inc. , or ultragenyx , pursuant to which we granted ultragenyx an exclusive worldwide license under certain intellectual property rights controlled by us to make , have made , use , distribute , offer for sale , sell , import and export , including to research , develop , modify , enhance , improve , register , distribute , commercialize , or otherwise dispose of aav8 or other clade e aav variant pharmaceutical products that express our md5 nnos binding domain form of microdystrophin protein for the diagnosis , treatment , cure , mitigation or prevention of duchenne and other disease indications resulting from a lack of functional dystrophin , including becker muscular dystrophy . on a product by product basis , we have the option to fund 30 % of the development costs in the united states and european union and share 30 % of the net income and net losses on net sales of such licensed product in the united states and european union . in connection with the execution of the collaboration agreement , we also entered into a stock purchase agreement with ultragenyx , pursuant to which we issued and sold 7,825,797 shares of our common stock to ultragenyx for an aggregate purchase price of approximately $ 40 million . in december 2020 , we completed a private placement of shares of common stock resulting in net proceeds to us of $ 86.2 million , after deducting offering costs . during the year ended december 31 , 2020 , we sold 6,309,632 shares pursuant to a sales agreement , dated march 13 , 2019 , or the atm sales agreement , by and between us and jefferies llc , or jefferies , resulting in net proceeds of $ 23.2 million . as of december 31 , 2020 , we had cash and cash equivalents of $ 154.7 million . based upon our current and projected cash flow , we note there is substantial doubt about our ability to continue as a going concern within one year after the date that these financial statements are issued . as a result , in order to continue to operate our business beyond that time , we will need to raise additional funds . however , there can be no assurance that we will be able to generate funds on terms acceptable to us , on a timely basis , or at all . in addition , we have based this estimate on assumptions that may prove to be wrong , and we could use our available capital resources sooner than we currently anticipate . we believe that our cash and cash equivalents as of december 31 , 2020 will enable us to fund our operating expenses and capital expenditure requirements into the first quarter of 2022. we have based this estimate on assumptions that may prove to be wrong , and we could use our available capital resources sooner than we currently anticipate . story_separator_special_tag examples of estimated accrued research and development expenses include fees paid to : cros in connection with performing research activities on our behalf and conducting clinical trials and preclinical studies on our behalf ; vendors in connection with preclinical development activities ; vendors related to product manufacturing and development and distribution of clinical and preclinical supplies ; and third parties under our intellectual property licenses . 91 we base our expenses related to preclinical studies and clinical trials on our estimates of the services received and efforts expended pursuant to quotes and contracts with multiple cros that conduct and manage preclinical studies and clinical trials on our behalf . the financial terms of these agreements are subject to negotiation , vary from contract to contract and may result in uneven payment flows . there may be instances in which payments made to our vendors will exceed the level of services provided and result in a prepayment of the expense . in accruing fees , we estimate the time period over which services will be performed , and the level of effort to be expended in each period . if the actual timing of the performance of services or the level of effort varies from our estimate , we adjust the accrual or amount of prepaid expense accordingly . although we do not expect our estimates to be materially different from amounts actually incurred , our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in us reporting amounts that are too high or too low in any particular period . to date , we have not made any material adjustments to our prior estimates of accrued research and development expenses . equity-based compensation in connection with the completion of our initial public offering , we adopted the 2018 omnibus incentive plan , or the 2018 plan , which provides for the issuance of share-based awards , including options to purchase common stock . the 2018 plan provides for the awarding of up to 5,001,000 shares of common stock for equity awards . on june 16 , 2020 , our stockholders approved the 2020 equity incentive plan or the “ 2020 plan ” which consists of ( i ) 3,000,000 shares of common stock and ( ii ) additional shares of common stock ( up to 4,879,025 ) as is equal to ( i ) the number of shares reserved under the 2018 plan that remained available for grant under the 2018 plan as of immediately prior to the date the 2020 plan was approved by our stockholders and ( ii ) the number of shares subject to awards granted under the 2018 plan which awards expire , terminate or are otherwise surrendered , cancelled , forfeited or repurchased by us at their original issuance price pursuant to a contractual repurchase right . we measure all stock options and other stock-based awards granted to employees , directors and non-employees based on the fair value on the date of the grant and recognize compensation expense of those awards , over the requisite service period , which is generally the vesting period of the respective award . forfeitures are accounted for as they occur . we apply the straight-line method of expense recognition to all awards with only service-based vesting conditions . we have not issued any awards with performance-based vesting conditions . for stock-based awards granted to non-employees , compensation expense is recognized over the period during which services are rendered by such non-employees until completed . the fair value of each stock option grant is estimated on the date of grant using the black-scholes option-pricing model . we historically have been a private company and lack company-specific historical and implied volatility information . therefore , we estimate our expected stock volatility based on the historical volatility of a publicly traded set of peer companies and expect to continue to do so until such time as we have adequate historical data regarding the volatility of our own traded stock price . for options with service-based vesting conditions , the expected term of our stock options has been determined utilizing the “ simplified ” method for awards that qualify as “ plain-vanilla ” options . through december 31 , 2018 , the expected term of stock options granted to non-employees is equal to the contractual term of the option award and effective january 1 , 2019 , the “ simplified ” method is used . the risk-free interest rate is determined by reference to the u.s. treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award . expected dividend yield is based on the fact that we have never paid cash dividends and do not expect to pay any cash dividends in the foreseeable future , if ever . 92 results of operations comparison of the years ended december 31 , 2020 and 2019 the following table summarizes our results of operations for the years ended december 31 , 2020 and 2019 : replace_table_token_2_th research and development expenses replace_table_token_3_th research and development expenses for the year ended december 31 , 2020 were $ 64.9 million , compared to $ 94.7 million for the year ended december 31 , 2019. the decrease of $ 29.9 million in research and development costs was due to a decrease in unallocated research and development costs of $ 12.3 million primarily due to a reduction in personnel and facility related expenses as a result of the restructuring that occurred in january 2020 , and a $ 15.8 million decrease in costs related to our lead product candidate sgt-001 driven by a reduction in manufacturing costs of $ 17.3 million partially offset by an increase in clinical costs of $ 1.5 million primarily driven by clinical consulting costs . the reduction in research and development was also driven by
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | sources of liquidity to date , we have financed our operations primarily through private placements of preferred units and our initial public offering as well as private placements of shares of our common stock and pre-funded warrants to purchase shares of our common stock . through december 31 , 2020 , we raised an aggregate of $ 144.6 million of gross proceeds from our sales of preferred units prior to the completion of our initial public offering , an aggregate of $ 129.1 million of net proceeds from the sale of our common stock after deducting underwriting discounts and commission and offering expenses in our initial public offering , an aggregate $ 144.1 million of net proceeds , after deducting offering costs , from our july 2019 and december 2020 private placements , and approximately $ 40 million from our sale of common stock to ultragenyx . we completed our initial public offering on january 30 , 2018 , in which we sold 8,984,375 shares of common stock , including the underwriters ' over-allotment option , at a public offering price of $ 16.00 per share , resulting in net proceeds of $ 129.1 million . on july 30 , 2019 , we issued and sold in a private placement ( i ) 10,607,525 shares of our common stock at a price per share of $ 4.65 and ( ii ) 2,295,699 pre-funded warrants to purchase shares of our common stock at a price per warrant of $ 4.64. each pre-funded warrant is exercisable for one share of common stock at an exercise price of $ 0.01 and the pre-funded warrants have no expiration date . we received $ 57.9 million of net proceeds from the private placement after deducting offering costs . in october 2020 , we entered into the collaboration agreement with ultragenyx . in connection with the execution of the collaboration agreement , we also entered into a stock purchase agreement with ultragenyx , pursuant to which we issued and sold 7,825,797 shares of our common stock to ultragenyx for an aggregate purchase price of approximately $ 40 million .
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opening new permanent offices can be accomplished by the sale of new territories or the opening of permanent offices in previously sold territories . during the 2016 tax season , we stressed the importance to our franchisees of opening permanent locations in new territories . in fiscal 2016 , on a net basis , our franchisees operated 196 more 37 permanent offices in the u.s. , compared to operating 101 more permanent offices in fiscal 2015 compared to fiscal 2014. prior to the 2015 tax season , walmart substantially changed the way in which it charged rent to our franchisees for walmart kiosk locations . as a result , our franchisees operated fewer such offices during the 2016 and 2015 tax seasons and we have deemphasized seasonal offices such as kiosks as part of our growth plans . we utilize our ad program to focus on areas with large underdeveloped groups of territories we believe would benefit from the dedicated sales attention that an ad brings to our franchise sales process . although we intend to grow our franchise network through the sale of new ad areas , opportunities often arise to acquire underperforming ad areas or ad areas in mature markets at favorable terms , offering us better future profitability from the associated franchise locations . continued growth of siempretax+ brand . during fiscal 2015 , we launched our second brand , siempretax+ . given the demographic trends in the united states , the growing consumer purchasing power of the hispanic community , and the prospect of immigration reform , whether through congressional legislation or executive action , we believe serving the hispanic community through a separate brand that engages with customers in their preferred language and provides ancillary services unique to their needs presents a significant office growth opportunity . for this reason , although we had a successful launch of this brand in fiscal 2015 , our ability to grow this brand further should substantially contribute to our future ability to meet our growth goals . number of returns prepared . we strive to provide our franchisees with the resources and training needed to grow their own revenue . one of the principal factors in that growth is growth in the number of returns prepared . we and our franchisees prepared a total of approximately 1.8 million returns in our u.s. offices in fiscal 2016 , which was a decrease of 3.9 % from fiscal 2015 . our new retail offices typically experience their most rapid growth during the first five years as they develop customer loyalty , operational experience and a referral base within their community . the seasoning of our u.s. offices shown in the following table highlights the relatively young age of our offices , with 1,749 offices of 4,225 operated during tax season 2016 having been operated for five or fewer years , including the 2016 tax season . 38 replace_table_token_7_th growth in systemwide revenue . systemwide revenue , a non-gaap financial measure , includes sales by both company-owned and franchised offices . we believe systemwide revenue data is useful in assessing consumer demand for our services and products , the overall success of the liberty tax brand and , ultimately , the performance of the company . our royalty revenue is computed as a percentage of sales made by our franchised offices , less certain deductions . accordingly , sales by our franchisees have a direct effect on the company 's royalty revenue and profitability . in addition , our systemwide revenue reflects the size of the liberty tax system , and because the size of our franchise system drives our management and infrastructure needs , systemwide revenue data helps us assess those needs in comparison to other companies in our industry and other franchise operators . our systemwide revenue in the u.s. grew by 1.1 % from fiscal 2015 to 2016 and 4.0 % from fiscal 2014 to fiscal 2015 . we experienced a 5.1 % increase in average net fee per return filed in the u.s. from $ 217 in fiscal 2015 to $ 228 in fiscal 2016 and a decrease of 3.9 % in number of tax returns filed in the u.s. processed from 1,907,000 in fiscal 2015 to 1,832,000 in fiscal 2016 . number of company-owned offices . for the 2016 and 2015 tax seasons we operated a total of 310 , which includes one processing center , and 182 company-owned offices , respectively . during fiscal 2016 we opened 79 company-owned offices in selected areas to meet franchisee interest in purchasing turnkey locations . tax settlement products obtained by u.s. customers . the total percentage of our u.s. customers obtaining a refund transfer product decreased to 49.2 % during fiscal 2016 compared to 49.7 % during fiscal 2015 . during fiscal 2016 , the share of refund transfer products funded through jth financial was 100 % of the total refund transfer products utilized by our customers , compared to 73.4 % in fiscal 2015 . as we have demonstrated our ability to offer products through jth financial , we have been successful in obtaining more favorable terms from 39 outside vendors . each year we analyze available tax settlement product solutions to balance risk and maximize profit per product . however , having grown the share of products funded through jth financial to 100 % of our total financial products in fiscal 2016 , we recognize that the prospects for continued growth through shifting away from externally-originated products may be limited , and that future growth of financial products revenue will largely depend on increasing the attachment rate , increasing the number of customers served and future fee increases . results of operations fiscal year 2016 compared to fiscal year 2015 revenues . the table below sets forth the components and changes in our revenue for the years ended april 30 , 2016 and 2015 . story_separator_special_tag we consider accounts and notes receivable to be impaired if the amounts due exceed the fair value of the underlying franchise and estimate an allowance for doubtful accounts based on that excess . amounts due include the recorded value of the accounts and notes receivable reduced by the allowance for uncollected interest , amounts due to ads for their portion of franchisee receivables , any related unrecognized revenue and amounts owed to the franchisee or ad by us . in establishing the fair value of the underlying franchise , we consider net fees of open territories and the number of unopened territories . at april 30 , 2016 , our allowance for doubtful accounts for impaired accounts and notes receivable was $ 7.8 million . there were no significant concentrations of credit risk with any individual franchisee or ad as of april 30 , 2016 , and we believe that our allowance for doubtful accounts as of april 30 , 2016 is adequate for our existing loss exposure . we closely monitor the performance of our franchisees and ads , and will adjust our allowances as appropriate if we determine that the existing allowances are inadequate to cover estimated losses . dividends . until our dividend paid in april 2015 , we had never declared or paid a cash dividend on our common stock . although we have now announced a $ 0.16 per share quarterly cash dividend and may continue to pay cash dividends in the future , the payment of dividends will be at the discretion of our board of directors and will depend , among other things , on our earnings , capital requirements , and financial condition . our ability to pay dividends will also be subject to compliance with financial covenants that are contained in our credit facility and may be restricted by any future indebtedness that we incur or issuances of preferred stock . in addition , applicable law requires our board of directors to determine that we have adequate surplus prior to the declaration of dividends . we can not provide an assurance that we will continue to pay dividends at any specific level or at all . see `` item 5—market for registrant 's common equity , related stockholder matters and issuer purchases of equity securities . `` story_separator_special_tag each fiscal year will adversely affect our cash flow . as of june 14 , 2016 , we had maintained a zero balance on our revolver for the required 45 days and thus have already met the requirement for fiscal 2017 . several factors could affect our cash flow in future periods , including the following : the delay by the irs until at least february 15 , 2017 to issue refunds to taxpayers who claim the earned income tax credit or the child tax credit . the extent to which we extend additional operating financing to our franchisees and ads , beyond the levels of prior periods . the extent and timing of capital expenditures . the cash flow effect of stock option exercises and the extent to which we engage in stock repurchases . our ability to generate fee and other income related to tax settlement products in light of regulatory pressures on us and our business partners . the extent to which we repurchase ad areas , which will involve the use of cash in the short-term , but improve cash receipts in future periods from what would have been the ad 's share of royalties and franchise fees . the extent , if any , to which our board of directors elects to continue to declare dividends on our common stock . effect of our credit facility covenants on our future performance . our credit facility , which matures on april 30 , 2019 , imposes several restrictive covenants , including a covenant that requires us to maintain a `` leverage ratio `` of not more than 4.5:1 at the end of each fiscal quarter ending january 31 and a ratio of not more than 3:1 at the end of each other fiscal quarter . the higher permitted leverage ratio at the end of the january 31 quarter reflects the fact that as of that date , we have typically extended significant credit to our franchisees for working capital and other needs that is not reflected in revenue that we receive from our franchisees until the period beginning in february each year . at january 31 , 2016 and april 30 , 2016 , we had a leverage ratio of 3.9 :1 and 0.52 :1 , respectively . our leverage ratio at april 30 , 2016 reflected the fact that we had no balance outstanding on our revolving credit facility at that date and a $ 19.0 million balance under our term loan . the leverage ratio is measured only at the end of each fiscal quarter , and so there may be times at which we exceed the quarter-end leverage ratio during the quarter , which we are permitted to do provided that our leverage ratio is within the allowable ratio at quarter-end . we continue to be obligated under our credit facility to satisfy a fixed charge coverage ratio test which requires that ratio to be not less than 1.50:1 at the end of every fiscal quarter . at january 31 , 2016 and april 30 , 2016 , our fixed charge coverage ratios were 5.50 :1 and 5.35 :1 , respectively . we were in compliance with the ratio tests described in this section as of april 30 , 2016 . we expect to be able to manage our cash flow and our operating activities in such a manner that we will continue to be able to satisfy our obligations under the credit facility for the remainder of the term of that facility . as noted above , although we are subject under our credit facility to a requirement that we reduce the balance of our
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | sources and uses of cash operating activities in fiscal 2016 , our cash provided from operating activities increased $ 5.3 million from the cash provided in fiscal 2015 . this increase was driven by : a $ 10.1 million decrease in cash tax payments in fiscal 2016 compared to fiscal 2015. a $ 3.9 million increase in income taxes payable , resulting from less excess tax benefits recognized during the year for stock option exercises . there was a corresponding decrease in cash flows from financing activities as a result of such excess tax benefits , offset by an $ 8.3 million increase in payments related to the settlement of our class action litigation cases . offset by higher revenues with only a slight increase in collections from franchisees and the payments of certain expenses that were delayed into fiscal 2016 from fiscal 2015. in fiscal 2015 , our cash provided from operating activities declined $ 19.0 million from cash provided in fiscal 2014. this reduction was driven by : a $ 4.8 million reduction in income taxes payable , resulting from excess tax benefits recognized during the year for stock option exercises . there is a corresponding increase in cash flows from financing activities as a result of such excess tax benefits . these excess tax benefits will reduce the amount of income taxes we would otherwise owe and pay in cash in fiscal 2016. a $ 4.1 million increase in cash tax payments in fiscal 2015 compared to fiscal 2014 . 45 higher operating expenses associated with investments we made to drive growth , including siempretax+ and our aca initiatives . lower collections from franchisees partially offset by delayed payments of certain expenses typically paid by year end .
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we pay the advisor fees for services related to the investment and management of our assets , and we will reimburse the advisor for certain expenses incurred on our behalf . to maintain our qualification as a reit , we engage in certain activities through taxable reit subsidiaries ( “ trss ” ) . as such , we may still be subject to u.s. federal and state income and franchise taxes from these activities . acquisitions and investment strategy we have , to date , acquired and or developed residential , commercial and hospitality properties principally , all of which are located in the united states and also made other real estate-related investments . our acquisitions have included both portfolios and individual properties . our current operating properties consist of one retail property ( the st. augustine outlet center ) and one multi-family residential property ( gantry park landing ) . we have also acquired various parcels of land and air rights related to the development and construction of real estate properties . additionally , we have made preferred investments in related parties and originated nonrecourse loans to unaffiliated third-party borrowers . investments in real estate are generally made through the purchase of all or part of a fee simple ownership , or all or part of a leasehold interest . we may also purchase limited partnership interests , limited liability company interests and other equity securities . we may also enter into joint ventures with related parties for the acquisition , development or improvement of properties as well as general partnerships , co-tenancies and other participations with real estate developers , owners and others for the purpose of developing , owning and operating real properties . we will not enter into a joint venture to make an investment that we would not be permitted to make on our own . not more than 10 % of our total assets will be invested in unimproved real property . for purposes of this paragraph , “ unimproved real properties ” does not include properties acquired for the purpose of producing rental or other operating income , properties under construction and properties for which development or construction is planned within one year . current environment our operating results are substantially impacted by the overall health of local , u.s. national and global economies and may be influenced by market and other challenges . additionally , our business and financial performance may be adversely affected by current and future economic and other conditions ; including , but not limited to , availability or terms of financings , financial markets volatility , political upheaval or uncertainty , natural and man-made disasters , terrorism and acts of war , unfavorable changes in laws and regulations , outbreaks of contagious diseases , cybercrime , loss of key relationships , and recession . covid-19 pandemic on march 11 , 2020 , the world health organization declared covid-19 a global pandemic leading many countries , including the united states , particularly at the individual state level , to subsequently impose various degrees of restrictions and other measures , including , but not limited to , mandatory temporary closures , quarantine guidelines , limitations on travel , and “ shelter in place ” rules in an effort to reduce its duration and the severity of its spread . although the covid-19 pandemic has continued to evolve , most of these previously imposed restrictions and other measures have now been reduced and or lifted . however , the covid-19 pandemic remains highly unpredictable and dynamic and its duration and extent is likely dependent on numerous developments such as the regulatory approval , mass production , administration and ultimate effectiveness of vaccines , as well as the timeline to achieve a level of sufficient herd immunity amongst the general population . accordingly , the covid-19 pandemic may continue to have negative effects on the overall health of the u.s. economy for the foreseeable future . as a result of previous restrictions , we closed our st. augustine outlet center from march 20 , 2020 through may 7 , 2020. primarily because of the impact of the covid-19 pandemic on the operating performance of the st. augustine outlet center 's tenancy , especially during the closure period , we have provided forbearance of certain rent payments to various tenants . additionally , we have seen some deterioration in both the occupancy and rental rates for gantry park landing , which is located on long island , new york , as the luxury rental market in the greater new york city metropolitan area has been negatively impacted by the covid-19 pandemic . however , none of these items have yet materially impacted our results from operations or financial condition . to-date , the covid-19 pandemic has not had any significant impact on our three development projects . furthermore , our other real estate-related investments ( both our preferred investments in related parties and nonrecourse loans made to unaffiliated third-party borrowers ) also relate to various development projects which are at different stages in their respective development process . these investments , which are subject to similar restrictions and other measures , have also not yet been significantly impacted by the covid-19 pandemic . the extent to which our business may be affected by the ongoing covid-19 pandemic will largely depend on both current and future developments , all of which are highly uncertain and can not be reasonably predicted . story_separator_special_tag to maintain our reit qualification under the internal revenue code of 1986 , as amended , or the code , we must meet a number of organizational and operational requirements , including a requirement that we annually distribute to our stockholders at least 90 % of our reit taxable income ( which does not equal net income , as calculated in accordance with generally accepted accounting principles in the united states of america , or gaap ) , determined without regard to the deduction for dividends paid and excluding any net capital gain . if we fail to remain qualified for taxation as a reit in any subsequent year and do not qualify for certain statutory relief provisions , our income for that year will be taxed at regular corporate rates , and we may be precluded from qualifying for treatment as a reit for the four-year period following our failure to qualify as a reit . such an event could materially adversely affect our net income and net cash available for distribution to our stockholders . to maintain our qualification as a reit , we engage in certain activities through taxable reit subsidiaries ( “ trss ” ) . as such , we may still be subject to u.s. federal and state income and franchise taxes from these activities . as of december 31 , 2020 and 2019 , we had no material uncertain income tax positions . additionally , even if we continue to qualify as a reit for u.s. federal income tax purposes , we may still be subject to some u.s. federal , state and local taxes on our income and property and to u.s. federal income taxes and excise taxes on our undistributed income . results of operations dispositions - continuing operations the following disposition did not represent a strategic shift that had a major effect on our operations and financial results and therefore did not qualify to be reported as discontinued operations and its operating results are reflected in our results from continuing operations in the consolidated statements of operations for all periods presented through the date of disposition : depaul plaza on september 20 , 2019 , we disposed of a retail center located in bridgeton , missouri ( “ depaul plaza ” ) , to an unrelated third party for aggregate consideration of approximately $ 19.8 million , excluding closing and other related costs . in connection with the disposition , we recorded a gain on the disposition of real estate of approximately $ 1.0 million during the year ended december 31 , 2019. dispositions - discontinued operations the following dispositions qualified to be reported as discontinued operations and their operating results are classified as discontinued operations in the consolidated statements of operations for all periods presented through their respective dates of disposition : disposition transactions related to gulf coast industrial portfolio we had an outstanding non-recourse mortgage loan ( the “ gulf coast industrial portfolio mortgage loan ” ) which was originated in february 2007 and subsequently transferred during the third quarter of 2012 to a special servicer that discontinued scheduled debt service payments and notified us that the loan was in default and due on demand . the gulf coast industrial portfolio mortgage loan was initially cross-collateralized by a portfolio of 14 industrial properties ( collectively , the “ gulf coast industrial portfolio ” ) including 10 properties located in louisiana ( seven properties located in new orleans and three properties located in baton rouge , and collectively , the “ louisiana assets ” ) and four properties located in san antonio , texas ( the “ san antonio assets ” ) . foreclosure of san antonio assets on june 5 , 2018 , the special servicer completed a partial foreclosure of the gulf coast industrial portfolio pursuant to which it foreclosed on the san antonio assets . the san antonio assets were sold in a foreclosure sale by the special servicer for an aggregate amount of approximately $ 20.7 million . assignment of ownership in louisiana assets to lender on february 12 , 2019 , we and the lender of the gulf coast industrial portfolio mortgage entered into an assignment agreement ( the “ assignment agreement ” ) pursuant to which we assigned our membership interests in the louisiana assets to the lender with an effective date of february 7 , 2019. under the terms of the assignment agreement , the lender assumed the significant risks and rewards of ownership and took legal title and physical possession of the louisiana assets and assumed all the other assets and related liabilities , including the gulf coast industrial mortgage and its accrued and unpaid interest , and released us of any claims against the liabilities assumed . 21 as a result of the assignment agreement , we have fully satisfied all of our obligations with respect to the gulf coast industrial portfolio mortgage and all amounts accrued but not paid for interest ( including default interest ) and no amounts are due to the lender . additionally , we have no continuing involvement with the louisiana assets . the aggregate carrying value of the assets transferred and the liabilities extinguished in connection with our assignment of our ownership interests in the louisiana assets to the lender was approximately $ 37.0 million and $ 49.6 million , respectively . since our performance obligations were met upon the assignment of our ownership interests in the louisiana assets to the lender and we have no continuing involvement with the louisiana assets , an aggregate gain on debt extinguishment of approximately $ 13.6 million was recognized during the first quarter of 2019. the disposition of the louisiana assets , which comprised all of our remaining industrial properties , represented a strategic shift that had a major effect on our operations and financial results . as a result , the operating results of the louisiana assets have been classified as discontinued operations in our consolidated statements
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | debt maturities the exterior street loan ( outstanding principal balance of $ 35.0 million as of december 31 , 2020 ) initially matures on april 9 , 2021. we currently intend to extend or refinance the exterior street loan on or before its maturity date . 31 the lower east side moxy mortgage ( outstanding principal balance of $ 35.2 million as of december 31 , 2020 ) matures on june 3 , 2021. we currently intend to seek to refinance the lower east side moxy mortgage with construction financing on or before its maturity date . on november 12 , 2019 , we , through lsc 1543 7th llc and lsc 1650 lincoln llc ( collectively , the “ santa monica joint ventures ” ) , entered into a $ 25.0 million loan ( the “ santa monica loan ” ) ( outstanding principal balance of $ 25.0 million as of december 31 , 2020 ) which bears interest at libor + 3.75 % , subject to a 5.50 % floor , and matures on august 12 , 2021. the santa monica loan requires monthly interest-only payments with the outstanding principal balance due at its maturity date and is cross-collateralized by two nonrecourse loans originated by the santa monica joint ventures . we currently intend to seek to refinance the santa monica loan on or before its maturity date .
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we incur expenses as a result of being a public company ( for legal , financial reporting , accounting and auditing compliance ) , as well as for due diligence expenses . for the period from may 29 , 2020 ( inception ) through december 31 , 2020 , we had a net loss of $ 1,033,642 , which consists of operating costs of $ 1,040,966 , offset by interest earned on marketable securities held in the trust account of $ 7,324. story_separator_special_tag style= `` text-align : justify ; margin-top:12pt ; margin-bottom:0pt ; text-indent:0 % ; font-weight : bold ; font-family : times new roman ; font-size:10pt ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > critical accounting policies the preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the united states of america requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities , disclosure of contingent assets and liabilities at the date of the financial statements , and income and expenses during the periods reported . actual results could materially differ from those estimates . we have identified the following critical accounting policies : class a common stock subject to possible redemption we account for our shares of class a common stock subject to possible redemption in accordance with the guidance in accounting standards codification ( “ asc ” ) topic 480 “ distinguishing liabilities from equity . ” shares of class a common stock subject to mandatory redemption is classified as a liability instrument and is measured at fair value . conditionally redeemable common stock ( including common stock that features redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our control ) is classified as temporary equity . at all other times , common stock is classified as stockholders ' equity . our common stock features certain redemption rights that are considered to be outside of our control and subject to occurrence of uncertain future events . accordingly , the class a common stock subject to possible redemption is presented as temporary equity , outside of the stockholders ' equity section of our balance sheet . net loss per common share we apply the two-class method in calculating earnings per share . net income ( loss ) per common share , basic and diluted for class a common stock subject to possible redemption is calculated by dividing the interest income earned on the trust account , net of applicable taxes , if any , by the weighted average number of shares of class a common stock subject to possible redemption outstanding for the period . net income ( loss ) per common share , basic and diluted for and non-redeemable common stock is calculated by dividing net loss less income attributable to class a common stock subject to possible redemption , by the weighted average number of shares of non-redeemable common stock outstanding for the period presented . recent accounting standards management does not believe that any other recently issued , but not yet effective , accounting standards , if currently adopted , would have a material effect on our financial statements . 40 item 7a . quantitative and qualita tive disclosures about market risk as of december 31 , 2020 , we were not subject to any market or interest rate risk . following the consummation of our initial public offering , the net proceeds of our initial public offering , including amounts in the trust account , have been invested in u.s. government treasury bills , notes or bonds with a maturity of 185 days or less or in certain money market funds that invest solely in u.s. treasuries . due to the short-term nature of these investments , we believe there will be no associated material exposure to interest rate risk . item 8. financial statements and supplementary data this information appears following item 15 of this report and is included herein by reference . item 9. changes in and disagreements with accountants on accounting and financial disclosure none . item 9a . controls and procedures . evaluation of disclosure controls and procedures disclosure controls are procedures that are designed with the objective of ensuring that information required to be disclosed in our reports filed under the exchange act , such as this report , is recorded , processed , summarized , and reported within the time period specified in the sec 's rules and forms . disclosure controls are also designed with the objective of ensuring that such information is accumulated and communicated to our management , including the chief executive officer and chief financial officer , as appropriate to allow timely decisions regarding required disclosure . our management evaluated , with the participation of our current chief executive officer and chief financial officer ( our “ certifying officers ” ) , the effectiveness of our disclosure controls and procedures as of december 31 , 2020 , pursuant to rule 13a-15 ( b ) under the exchange act . based upon that evaluation , our certifying officers concluded that , as of december 31 , 2020 , our disclosure controls and procedures were effective . we do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud . disclosure controls and procedures , no matter how well conceived and operated , can provide only reasonable , not absolute , assurance that the objectives of the disclosure controls and procedures are met . further , the design of disclosure controls and procedures must reflect the fact that there are resource constraints , and the benefits must be considered relative to their costs . story_separator_special_tag our independent directors will have regularly scheduled meetings at which only independent directors are present . executive officer and director compensation none of our executive officers or directors have received any cash compensation for services rendered to us . commencing on the date that our securities are first listed on the nyse through the earlier of completion of our initial business combination and our liquidation , we will reimburse our sponsor for office space and administrative support services provided to us in the amount of $ 10,000 per month . in addition , our sponsor , executive officers and directors , or any of their respective affiliates will be reimbursed for any out-of-pocket expenses incurred in connection with activities on our behalf such as identifying potential target businesses and performing due diligence on suitable business combinations . our audit committee will review on a quarterly basis all payments that were made to our sponsor , executive officers , directors or their respective affiliates . any such payments prior to an initial business combination will be made using funds held outside the trust account . other than quarterly audit committee review of such reimbursements , we do not expect to have any additional controls in place governing our reimbursement payments to our directors and executive officers for their out-of-pocket expenses incurred in connection with our activities on our behalf in connection with identifying and completing an initial business combination . other than these payments and reimbursements , no compensation of any kind , including finder 's and consulting fees , will be paid by the 44 company to our sponsor , executive officers and directors , or any of their respective affiliates , prior to completion of our initial business combination . after the completion of our initial business combination , directors or members of our management team who remain with us may be paid consulting or management fees from the combined company . all of these fees will be fully disclosed to stockholders , to the extent then known , in the proxy solicitation materials or tender offer materials furnished to our stockholders in connection with a proposed business combination . we have not established any limit on the amount of such fees that may be paid by the combined company to our directors or members of management . it is unlikely the amount of such compensation will be known at the time of the proposed business combination , because the directors of the post-combination business will be responsible for determining executive officer and director compensation . any compensation to be paid to our executive officers will be determined , or recommended to the board of directors for determination , either by a compensation committee constituted solely by independent directors or by a majority of the independent directors on our board of directors . we do not intend to take any action to ensure that members of our management team maintain their positions with us after the completion of our initial business combination , although it is possible that some or all of our executive officers and directors may negotiate employment or consulting arrangements to remain with us after our initial business combination . the existence or terms of any such employment or consulting arrangements to retain their positions with us may influence our management 's motivation in identifying or selecting a target business but we do not believe that the ability of our management to remain with us after the completion of our initial business combination will be a determining factor in our decision to proceed with any potential business combination . we are not party to any agreements with our executive officers and directors that provide for benefits upon termination of employment . committees of the board of directors our board of directors has three standing committees : an audit committee , a compensation committee and a corporate governance and nominating committee . subject to phase-in rules and a limited exception , the rules of the nyse and rule 10a of the exchange act require that the audit committee of a listed company be comprised solely of independent directors . subject to phase-in rules and a limited exception , the rules of the nyse require that the compensation committee of a listed company be comprised solely of independent directors . audit committee we have established an audit committee of the board of directors . william p. crowell , henry a. crumpton and gilman louie serve as members of our audit committee . our board of directors has determined that each of william p. crowell , henry a. crumpton and gilman louie are independent under the nyse listing standards and applicable sec rules . gilman louie will serve as the chairman of the audit committee . each member of the audit committee is financially literate and our board of directors has determined that gilman louie qualifies as an “ audit committee financial expert ” as defined in applicable sec rules . we have adopted an audit committee charter , which details the principal functions of the audit committee , including : assisting board oversight of ( 1 ) the integrity of our financial statements , ( 2 ) our compliance with legal and regulatory requirements , ( 3 ) our independent registered public accounting firm 's qualifications and independence , and ( 4 ) the performance of our internal audit function and independent registered public accounting firm ; the appointment , compensation , retention , replacement , and oversight of the work of the independent registered public accounting firm and any other independent registered public accounting firm engaged by us ; pre-approving all audit and non-audit services to be provided by the independent registered public accounting firm or any other registered public accounting firm engaged by us , and establishing pre-approval policies and procedures ; reviewing and discussing with the independent registered public accounting firm all relationships the firm has with us in order to evaluate their continued independence
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources on september 14 , 2020 , we consummated the initial public offering of 23,000,000 units , which includes the full exercise by the underwriters of the over-allotment option of 3,000,000 units , at $ 10.00 per unit , generating gross proceeds of $ 230,000,000 . 38 simultaneously with the closing of the initial public offering , we consummated the sale of 6,600,000 private placement warrants to the sponsor at a price of $ 1.00 per warrant , generating gross proceeds of $ 6,600,000. following the initial public offering , the exercise of the over-allotment option and the sale of the private placement warrants , a total of $ 230,000,000 was placed in the trust account . we incurred $ 13,056,945 in transaction costs , including $ 4,600,000 of underwriting fees , $ 8,050,000 of deferred underwriting fees and $ 406,945 of other costs . for the period from may 29 , 2020 ( inception ) through december 31 , 2020 , cash used by operating activities was $ 421,474. net loss of $ 1,033,642 was affected by interest earned on marketable securities held in the trust account of $ 7,324 and changes in operating assets and liabilities , which provided $ 619,492 of cash from operating activities . as of december 31 , 2020 , we had cash and marketable securities held in the trust account of $ 230,007,324. we intend to use substantially all of the funds held in the trust account , including any amounts representing interest earned on the trust account ( less deferred underwriting commissions and income taxes payable ) , to complete our business combination . we may withdraw interest to pay franchise and income taxes . during the period ended december 31 , 2020 , we did not withdraw any interest earned on the trust account .
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as of december 31 , 2015 and 2014 , the weighted average yield on our outstanding debt investments other than non-accrual debt investments was 12.2 % and 13.0 % , respectively . the weighted average yield on all of our outstanding investments ( including equity and equity-linked investments but excluding non-accrual debt investments ) was 10.6 % and 11.6 % as of december 31 , 2015 and 2014 , respectively . the weighted average yield on all of our outstanding investments ( including equity and equity-linked investments and non-accrual debt investments ) was 10.2 % and 10.8 % as of december 31 , 2015 and 2014 , respectively . triangle sbic and triangle sbic ii are eligible to issue debentures to the sba , which pools these with debentures of other sbics and sells them in the capital markets at favorable interest rates , in part as a result of the guarantee of payment from the sba . triangle sbic and triangle sbic ii invest these funds in portfolio companies . 65 we intend to continue to operate triangle sbic and triangle sbic ii as sbics , subject to sba approval , and have utilized the proceeds from the issuance of sba-guaranteed debentures , referred to herein as sba leverage , to enhance returns to our stockholders . portfolio composition the total value of our investment portfolio was $ 977.3 million as of december 31 , 2015 , as compared to $ 887.2 million as of december 31 , 2014 . as of december 31 , 2015 , we had investments in 92 portfolio companies with an aggregate cost of $ 1.0 billion . as of december 31 , 2014 , we had investments in 91 portfolio companies with an aggregate cost of $ 922.1 million . as of both december 31 , 2015 and 2014 , none of our portfolio investments represented greater than 10 % of the total fair value of our investment portfolio . as of december 31 , 2015 and december 31 , 2014 , our investment portfolio consisted of the following investments : replace_table_token_9_th investment activity during the year ended december 31 , 2015 , we made twenty-three new investments , including recapitalizations of existing portfolio companies , totaling $ 361.2 million , additional debt investments in ten existing portfolio companies of $ 84.2 million and additional equity investments in eleven existing portfolio companies totaling $ 8.6 million . we had twenty-four portfolio company loans repaid at par totaling $ 302.1 million , which resulted in realized gains totaling $ 2.0 million , and received normal principal repayments , partial loan prepayments and pik interest repayments totaling $ 32.7 million . we converted subordinated debt investments in one portfolio company into an equity investment and recognized a net realized loss on such conversion totaling $ 20.5 million . we wrote-off debt and equity investments in two portfolio companies and recognized realized losses on the write-offs of $ 18.8 million . in addition , we received proceeds related to the sales of certain equity securities of our portfolio companies totaling $ 21.5 million and recognized net realized gains on such sales totaling $ 9.8 million in the year ended december 31 , 2015 . 66 during the year ended december 31 , 2014 , we made twenty-eight new investments , including recapitalizations of existing portfolio companies , totaling $ 429.7 million , additional debt investments in eleven existing portfolio companies of $ 37.6 million and additional equity investments in six existing portfolio companies totaling $ 7.3 million . we had sixteen portfolio company loans repaid at par totaling $ 150.5 million , which resulted in realized gains totaling $ 0.8 million , and received normal principal repayments , partial loan prepayments and pik interest repayments totaling $ 30.9 million . we converted debt investments in two portfolio companies into equity investments and recognized net realized losses on such conversions totaling $ 11.0 million . we wrote-off investments in five portfolio companies and recognized realized losses on the write-offs of $ 13.9 million . in addition , we received proceeds related to the sales of certain equity securities of our portfolio companies totaling $ 51.5 million and recognized net realized gains on such sales totaling $ 37.7 million in the year ended december 31 , 2014 . total portfolio investment activity for the years ended december 31 , 2015 and 2014 was as follows : replace_table_token_10_th ( 1 ) excludes non-accrual debt investments . 67 replace_table_token_11_th ( 1 ) excludes non-accrual debt investments . non-accrual assets generally , when interest and or principal payments on a loan become past due , or if we otherwise do not expect the borrower to be able to service its debt and other obligations , we will place the loan on non-accrual status and will generally cease recognizing interest income on that loan for financial reporting purposes until all principal and interest have been brought current through payment or due to a restructuring such that the interest income is deemed to be collectible . as of december 31 , 2015 , the fair value of our non-accrual assets was $ 6.9 million , which comprised 0.7 % of the total fair value of our portfolio , and the cost of our non-accrual assets was $ 20.4 million , which comprised 2.0 % of the total cost of our portfolio . as of december 31 , 2014 , the fair value of our non-accrual assets was $ 26.9 million , which comprised 3.0 % of the total fair value of our portfolio , and the cost of our non-accrual assets was $ 53.1 million , which comprised 5.8 % of the total cost of our portfolio . story_separator_special_tag the weighted average interest rate for all sba-guaranteed debentures as of december 31 , 2015 was 4.02 % . as of december 31 , 2015 , all sba-guaranteed debentures were pooled . in may 2015 , we entered the credit facility , which has an initial commitment of $ 300.0 million supported by 14 financial institutions and replaced our $ 165.0 million senior secured credit facility entered into in june 2013 , or the prior facility . the revolving period of the credit facility ends may 3 , 2019 followed by a one-year amortization period with a final maturity date of may 3 , 2020. we have the ability to borrow in both united states dollars as well as foreign currencies under the credit facility . the credit facility has an accordion feature that allows for an increase in the total borrowing size up to $ 350.0 million , subject to certain conditions and the satisfaction of specified financial covenants . the credit facility , which is structured to operate like a revolving credit facility , is secured primarily by our assets , excluding the assets of our wholly-owned sbic subsidiaries . borrowings under the credit facility bear interest , subject to our election , on a per annum basis equal to ( i ) the applicable base rate plus 1.75 % ( or , after one year , 1.50 % if we receive an investment grade credit rating ) , ( ii ) the applicable libor rate plus 2.75 % ( or , after one year , 2.50 % if we receive an investment grade credit rating ) , or ( iii ) for borrowings denominated in canadian dollars , the applicable canadian dealer offered rate plus 2.75 % ( or , after one year , 2.50 % if we receive an investment grade credit rating ) . the applicable base rate is equal to the greater of ( i ) the prime rate , ( ii ) the federal funds rate plus 0.5 % , or ( iii ) the adjusted one-month libor plus 2.0 % . the applicable libor rate depends on the term of the draw under the credit facility . we pay a commitment fee of 1.00 % per annum on undrawn amounts if the used portion of the facility is less than or equal to 25.0 % of total commitments , or 0.375 % per annum on undrawn amounts if the used portion of the facility is greater than 25.0 % of total commitments . as of december 31 , 2015 , we had united states dollar borrowings of $ 119.0 million outstanding under the credit facility with an interest rate of 3.0 % and non-united states dollar borrowings denominated in canadian dollars of $ 17.0 million ( $ 12.3 million in united states dollars ) outstanding under the credit facility with an interest rate of 3.6 % . the borrowings denominated in canadian dollars are translated into united states dollars based on the spot rate at each balance sheet date . the impact resulting from changes in foreign exchange rates on the credit facility borrowings is included in unrealized appreciation ( depreciation ) on foreign currency borrowings in our consolidated statements of operations . the borrowings denominated in canadian dollars may be positively or negatively affected by movements in the rate of exchange between the united states dollar and the canadian dollar . this movement is beyond our control and can not be predicted . 73 as with the prior facility , the credit facility contains certain affirmative and negative covenants , including but not limited to ( i ) maintaining a minimum interest coverage ratio , ( ii ) maintaining a minimum consolidated tangible net worth , ( iii ) maintaining a minimum asset coverage ratio and ( iv ) maintaining our status as a regulated investment company , or ric , and as a bdc . the credit facility also contains customary events of default with customary cure and notice provisions , including , without limitation , nonpayment , misrepresentation of representations and warranties in a material respect , breach of covenant , cross-default to other indebtedness , bankruptcy , change of control , and material adverse effect . the credit facility also permits the administrative agent to select an independent third-party valuation firm to determine valuations of certain portfolio investments for purposes of borrowing base provisions . in connection with the credit facility , we also entered into new collateral documents . as of december 31 , 2015 , we were in compliance with all covenants of the credit facility . in march 2012 , we issued $ 69.0 million of 2019 notes . the 2019 notes were redeemed in full on june 22 , 2015 for a total redemption price of $ 69.0 million , which resulted in a loss on the extinguishment of debt of $ 1.4 million . prior to the redemptions , the 2019 notes bore interest at a rate of 7.00 % per year payable quarterly on march 15 , june 15 , september 15 and december 15 of each year , beginning june 15 , 2012. the net proceeds from the sale of the 2019 notes , after underwriting discounts and offering expenses , were $ 66.7 million . in october 2012 , we issued $ 70.0 million of december 2022 notes and in november 2012 , we issued $ 10.5 million of december 2022 notes . the december 2022 notes mature on december 15 , 2022 , and may be redeemed in whole or in part at any time or from time to time at our option on or after december 15 , 2015. the december 2022 notes bear interest at a rate of 6.375 % per year payable quarterly on march 15 , june 15 , september 15 and december 15 of each year , beginning december 15 , 2012. the net proceeds from the sale of the december 2022 notes ,
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash flows for the year ended december 31 , 2015 , we experienced a net decrease in cash and cash equivalents in the amount of $ 26.1 million . during that period , our operating activities used $ 31.2 million in cash , consisting primarily of new portfolio investments of $ 453.9 million , partially offset by repayments received from portfolio companies and proceeds from the sales of investments totaling $ 343.3 million . in addition , financing activities provided cash of $ 5.1 million , consisting primarily of net borrowings under our credit facility of $ 71.0 million and proceeds from the march 2022 notes offering of $ 83.4 million , partially offset by redemption of the 2019 notes of $ 69.0 million and cash dividends paid in the amount of $ 74.8 million . at december 31 , 2015 , we had $ 52.6 million of cash and cash equivalents on hand . for the year ended december 31 , 2014 , we experienced a net decrease in cash and cash equivalents in the amount of $ 54.5 million . during that period , our operating activities used $ 188.3 million in cash , consisting primarily of new portfolio investments of $ 474.6 million . partially offset by repayments received from portfolio companies and proceeds from the sales of investments totaling $ 222.0 million .
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under the ca dbo consent order , we agreed to cease acquiring any additional msrs for loans secured in california until the ca dbo is satisfied that ols can satisfactorily respond to the requests for information and documentation made in the course of a regulatory exam . if we are unable to satisfy these conditions , we will be unable to grow our servicing portfolio through acquisitions . as a result of the current regulatory environment , we have faced , and expect to continue to face , increased regulatory and public scrutiny as well as stricter and more comprehensive regulation of our business . we continue to work diligently to assess the implications of the regulatory environment in which we operate and to meet the requirements of the current environment . we devote substantial resources to regulatory compliance , while , at the same time , striving to meet the needs and expectations of our customers , clients and other stakeholders . during 2015 , we have been executing on our strategy , as announced in december 2014 , to sell certain of our agency msrs . there are multiple reasons for this strategy . first , reducing our exposure to agency servicing will reduce our exposure to interest rate movements . prime servicing and msr valuation are highly sensitive to interest rate movements , and we would like to reduce this risk to the business . second , as of december 31 , 2014 , we carried these msrs at the lower of cost or fair value and expect that selling these assets will enable us to recognize income currently as opposed to over time . third , given the magnitude of the portfolio , we expect that sales of agency msrs will generate significant liquidity in 2015. we currently expect to receive approximately $ 852.0 million of proceeds from announced asset sales , subject in each case to necessary approvals and the satisfaction of closing conditions . we expect that the majority of such proceeds will be used for prepayments under our sstl . finally , we expect that reducing the size of our agency servicing portfolio will help simplify our operations and help improve our margins over time because , while we do not generate discrete financial information that allows us to track margin by type of loan serviced , we believe that our traditional cost advantages are not as significant for servicing conventional and government-insured loans as they are for servicing non-agency loans . in addition to our efforts to optimize our servicing business , we have also invested in adjacent markets , including forward and reverse mortgage lending . ocwen provides forward and reverse mortgages directly , through call-center-based operations , and indirectly , through brokers , correspondents and relationships with lending partners . mortgage lending is a natural extension of our servicing business , as a substantial portion of our lending business comes from refinancing loans from our servicing portfolio . we believe the reverse mortgage business is a substantially under-developed market relative to its potential , and that it provides a potential source of long-term growth for ocwen . additionally we are investing in our forward lending business to build competitive advantages around processes and technology , leveraging the analytical foundations of our servicing business and the differentiated technology platform of our reverse mortgage business . several factors suggest that the demand for alternative credit products to support homeownership is growing . we believe that a large percentage of american households would be unable to qualify for a new mortgage in the current environment . this compares to a pre-financial crisis estimate that 70 % of households could obtain mortgage loan financing in either the prime or non-prime lending market . expanding access to credit has been solidly supported by community groups with whom we are in close contact . while we do not have any interest at this time in originating non-qualified mortgage loans , given the penalties that an originator could incur , we do believe that innovative qualified mortgage products will be developed to access this underserved market . in most cases , these products will require a flexible servicing platform that can manage the risks associated with non-prime or credit-impaired servicing , an area in which we believe we have strong competitive advantages . we will continue to evaluate new adjacent market opportunities that are consistent with our strategic goals and in which we can capture competitive advantages and achieve attractive returns for our shareholders . our general requirements are as follows : new opportunities must align with long-term macro trends . we look for opportunities that can contribute meaningfully to our long-term growth and return on equity . we will generally only enter a business if we feel we can capture and maintain a long-term competitive advantage . for example , our advantage could be related to our operating efficiencies , our cost of capital or our tax structure , but we must view it as meaningful and sustainable . we prefer businesses that can be structured efficiently around repetitive processes where we aim to utilize our operational expertise and innovation to create best-in-class practices . finally , any business we add to our platform must not jeopardize our franchise or dilute our core servicing business . operations summary our consolidated operating results for the past three years have been significantly impacted by portfolio and platform acquisitions , subsequent integrations , goodwill impairment and various regulatory settlement and other costs . the operating results of the acquired businesses are included in our operating results since their respective acquisition dates . 43 the following table summarizes our consolidated operating results for the years indicated : replace_table_token_10_th year ended december 31 , 2014 versus 2013 . story_separator_special_tag inquiries into servicer foreclosure practices by state or federal government bodies , regulators or courts are continuing and bring the possibility of adverse regulatory actions , including extending foreclosure timelines . foreclosure delays slow the recovery of delinquent servicing fees and advances . our average completed foreclosure timelines increased in 2014 due to internal and macroeconomic impacts . first , we adjusted our internal processes to focus on the most significantly aged foreclosures to ensure foreclosure sales met the requirements of our agreements ; this shift had the effect of inflating completed foreclosure timelines as loans in foreclosure for prolonged periods were completed . additionally , in order to improve the quality and efficiency of the foreclosure process we consolidated the number of law firms we use to those with optimal performance , which introduced temporary delays as work transitioned . from a macroeconomic perspective , the portion of foreclosure eligible loans in our portfolio in judicial states such as new york and florida , where the foreclosure timelines are longer , increased . replace_table_token_12_th despite this timeline extension , the delinquency rate of our serviced portfolio as a percentage of upb has declined from 24 % at december 31 , 2012 to 15 % at december 31 , 2013 and to 13 % at december 31 , 2014 . while this improvement is due , in part , to the lower delinquency mix for recent acquisitions , modifications continue to drive down delinquency rates and obviate foreclosure . also , fewer loans have entered delinquency , as early intervention loss mitigation and general economic conditions have improved . it is not possible to predict the full financial impact of changes in foreclosure practices , but if the extension of timelines causes delinquency rates to rise , this could lead to a delay in revenue recognition and collections , an increase in operating expenses and an increase in the advance ratio . an increase in the advance ratio would lead to increased borrowings and higher interest expense . advance obligation as a servicer or subservicer , we have the obligation to advance funds to securitization trusts in the event that borrowers are delinquent on their monthly mortgage payments . when a borrower becomes delinquent , we advance cash to trusts on the scheduled remittance date thus creating a receivable from the trust that is secured by the future cash flows from the mortgages underlying the trust . we advance principal and interest ( p & i advances ) , taxes and insurance ( t & i advances ) and legal fees , property valuation fees , property inspection fees , maintenance costs and preservation costs on properties that have been foreclosed ( corporate advances ) . for loans in non-agency securitization trusts , if we determine that our p & i advances can not be recovered from the projected future cash flows , we generally have the right to cease making p & i advances , declare advances in excess of net proceeds to be non-recoverable and , in most cases , immediately recover any such excess advances from the general collection accounts of the respective trust . with t & i and corporate advances , we continue to advance if net future cash flows exceed projected future advances without regard to advances already made . most of our advances have the highest reimbursement priority ( i.e . , they are “ top of the waterfall ” ) so that we are entitled to repayment from respective loan or reo liquidation proceeds before any interest or principal is paid on the bonds that were issued by the trust . in the majority of cases , advances in excess of respective loan or reo liquidation proceeds may be recovered from pool-level proceeds . the costs incurred in meeting these obligations consist principally of the interest expense incurred in financing the servicing advances . most , but not all , subservicing agreements provide for more rapid reimbursement of any advances from the owner of the servicing rights . significant variables the key variables that have the most significant effect on our operating results in the servicing segment are aggregate upb , delinquencies , prepayment speeds and operating efficiency . 49 aggregate unpaid principal balance . servicing and subservicing fees are generally expressed as a percentage of upb , and growth in the portfolio generally means growth in servicing and subservicing fees . conversely , if our portfolio decreases in size our servicing and subservicing fees will also generally decrease . additionally , a larger servicing portfolio generates increased ancillary fees and leads to larger custodial account balances generating greater float earnings , and vice versa . our amortization of msrs will typically increase or decrease based on the upb of our owned servicing portfolio as the carrying value of our msrs increases or decreases . in addition , interest expense is generally affected by the size of our portfolio due to increases or decreases in servicing advances requiring financing . in 2015 , we anticipate a reduction in aggregate upb to result from our previously announced plans to sell certain of our agency msrs , portfolio run-off and restrictions on our ability to acquire msrs under our regulatory settlements that we anticipate will limit acquisitions of replacement msrs during 2015. delinquencies . delinquencies have a significant impact on our results of operations and cash flows . delinquencies affect the timing of revenue recognition because we recognize servicing fees as earned which is generally upon collection of payments from the borrower . delinquencies also affect the custodial accounts that hold funds representing collections of principal and interest that we receive from borrowers ( float balances ) and float earnings . non-performing loans are more expensive to service than performing loans because the cost of servicing is higher and , although collectibility is generally not a concern , advances to the investors increase which results in higher financing costs . when borrowers are delinquent
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash flows for the year ended december 31 , 2014 . although we incurred a net loss of $ 469.6 million , our operating activities provided $ 352.5 million of cash after adjusting for goodwill impairment losses of $ 420.2 million , msr amortization of $ 250.4 million and other non-cash items , and because of $ 292.0 million of net collections of servicing advances offset in 66 part by the payment of $ 150.0 million in connection with the ny dfs settlement and the net payment of $ 66.9 million in connection with the ocwen national mortgage settlement . our investing activities used $ 958.2 million of cash . investing activities include cash outflows in connection with our reverse mortgage securitizations of $ 816.9 million accounted for as secured financings . in addition , we paid $ 222.7 million in connection with acquisitions completed during the year ended december 31 , 2014 . our financing activities provided $ 556.7 million of cash . cash provided by our financing activities includes $ 783.0 million in connection with our reverse mortgage securitization activities . financing activities also include $ 343.3 million of cash received in connection with the issuance of $ 350.0 million of senior unsecured notes , net of the payment of $ 6.7 million of debt issuance costs . in addition , we received $ 123.6 million of proceeds from the oasis transaction involving the financing of freddie mac msrs and $ 89.0 million of proceeds from the sale of advances to nrz acquired in connection with the ginnie mae ebo transactions , both of which we accounted for as financing transactions .
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this can also impact our future revenue recognized with respect to the number of air miles reward miles redeemed and the amount of breakage for those air miles reward miles expected to remain unredeemed . the estimated breakage rate changed from 28 % to 27 % effective december 31 , 2012 and from 27 % to 26 % effective december 31 , 2013. as of december 31 , 2014 , the estimated breakage rate remained at 26 % . for those sponsor contracts not yet subject to accounting standards update , or asu , 2009‑13 , `` multiple-deliverable revenue arrangements , `` the fees received from air miles reward miles issued are allocated between the redemption element based on the fair value of the redemption element and the service element based on the residual method . for sponsor contracts subject to asu 2009‑13 , we determine the selling price for all of the deliverables in the arrangement , and use the relative selling price method to allocate the arrangement consideration among the deliverables . proceeds from the issuance of air miles reward miles under these contracts are allocated to three elements : the redemption element , the service element and the brand element . revenue for the redemption element is recognized at the time an air miles reward mile is redeemed . for the service element , revenue is recognized over the estimated life of an air miles reward mile . revenue attributable to the brand element is recognized at the time an air miles reward mile is issued . air miles reward miles issued during the year ended december 31 , 2014 increased 1.5 % compared to 2013 due to an increase in air miles reward miles issued under the air miles cash program option . the merger of two of our top grocery sponsors and newly enacted regulations related to prescription drug purchases negatively impacted growth of our air miles reward miles issued in 2014. air miles reward miles redeemed during the year ended december 31 , 2014 increased 2.1 % compared to the same period in the prior year due to increased redemptions through the air miles cash program option as well as increased redemptions for travel rewards . for the year ended december 31 , 2014 , the air miles cash program option represented approximately 15.5 % of the air miles reward miles issued as compared to 12.1 % in the prior year . during the year ended december 31 , 2014 , loyaltyone signed a cross-canada , long-term agreement with sobeys inc , a national grocery retailer in canada that acquired canada safeway in late 2013 , to continue its participation and expand its sobeys-owned banners as sponsors in the air miles reward program . we signed a new , long-term agreement with katz group canada ltd. , a leading retail drugstore operator in canada and an air miles reward program sponsor in ontario , to continue its participation to issue air miles reward miles in ontario and expand to its katz group-owned banners in other areas of canada . we also signed new multi-year agreements with kent building supplies , a canadian home improvement products retailer , and moneris solutions corporation , a canadian credit and debit card processor , to participate as sponsors in the air miles reward program . finally , we signed a new multi-year consulting agreement with loblaw companies limited to develop and execute merchandising and marketing strategies . we also own approximately 37 % of cbsm-companhia brasileira de servicos de marketing , the operator of the dotz coalition loyalty program in brazil . dotz operates in 12 regions with more than 14 million collectors enrolled in the program . our investment in dotz had minimal impact on our results of operations in 2014 and 2013 , and we are not expecting it to have an impact on our results of operations in 2015 . 24 index epsilon epsilon is a leading marketing services firm providing end-to-end , integrated marketing solutions that leverage transactional data to help clients more effectively acquire and build stronger relationships with their customers . services include strategic consulting , customer database technologies , loyalty management , proprietary data , predictive modeling and a full range of direct and digital agency services . revenue increased $ 142.1 million , or 10.3 % , to $ 1.5 billion and adjusted ebitda , net increased $ 19.4 million , or 6.7 % , to $ 309.1 million for the year ended december 31 , 2014 as compared to the same period in 2013. revenue growth was driven by additional services provided to both new and existing clients , increased demand in the automotive vertical and the acquisition of conversant . on december 10 , 2014 , we completed the acquisition of conversant , a digital marketing services company offering unique end-to-end digital marketing solutions that empower clients to more effectively market to their customers across all channels . conversant 's solution and capabilities are complementary to and enhance epsilon 's existing offline and online data set , allowing for more effective targeted marketing programs across an expanded distribution network . conversant also provides scale in the rapidly growing display , mobile , video and social digital channels , and adds essential capabilities to epsilon 's digital loyalty platform , agility harmony . conversant is consolidated in our financial statements and included in our results of operations as of the date of acquisition . for additional information on the acquisition of conversant , see note 3 , `` acquisitions , `` of the notes to consolidated financial statements . story_separator_special_tag adjusted ebitda and adjusted ebitda , net are not intended to be performance measures that should be regarded as an alternative to , or more meaningful than , either operating income or net income as indicators of operating performance or to cash flows from operating activities as a measure of liquidity . in addition , adjusted ebitda and adjusted ebitda , net are not intended to represent funds available for dividends , reinvestment or other discretionary uses , and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with gaap . the adjusted ebitda and adjusted ebitda , net measures presented in this annual report on form 10-k may not be comparable to similarly titled measures presented by other companies , and may not be identical to corresponding measures used in our various agreements . replace_table_token_8_th ( 1 ) represents expenditures directly associated with the acquisition of conversant . ( 2 ) represents additional contingent consideration as a result of the earn-out obligation associated with the acquisition of our 60 percent ownership interest in brandloyalty . 28 index consolidated results of operations replace_table_token_9_th 29 index year ended december 31 , 2014 compared to the year ended december 31 , 2013 revenue . total revenue increased $ 983.9 million , or 22.8 % , to $ 5.3 billion for the year ended december 31 , 2014 from $ 4.3 billion for the year ended december 31 , 2013. the net increase was due to the following : transaction . revenue increased $ 8.4 million , or 2.5 % , to $ 337.4 million for the year ended december 31 , 2014 . other servicing fees charged to our credit cardholders increased $ 26.7 million due to increased volumes . this increase was offset by a decline of $ 12.3 million in merchant fees , which are transaction fees charged to the retailer , due to increased royalty payments associated with new clients and the increase in associated credit sales . air miles reward miles issuance fees , for which we provide marketing and administrative services , also decreased $ 7.6 million due to the impact of an unfavorable canadian exchange rate . redemption . revenue increased $ 466.1 million , or 79.4 % , to $ 1.1 billion for the year ended december 31 , 2014 due to the brandloyalty acquisition , which added $ 538.9 million . these increases were offset by an unfavorable canadian exchange rate , which negatively impacted redemption revenue by $ 36.6 million , and the change in estimate of our breakage rate in prior years . finance charges , net . revenue increased $ 347.0 million , or 17.7 % , to $ 2.3 billion for the year ended december 31 , 2014 due to a 21.3 % increase in average credit card and loan receivables , which increased revenue $ 417.0 million through a combination of recent credit card portfolio acquisitions and strong credit cardholder spending . this increase was offset in part by an 80 basis point decline in yield due to the onboarding of new programs , which decreased revenue $ 70.0 million . database marketing fees and direct marketing . revenue increased $ 149.3 million , or 11.6 % , to $ 1.4 billion for the year ended december 31 , 2014. revenue was driven by the acquisition of conversant and by marketing technology revenue , which increased $ 35.7 million as a result of both database builds completed for new clients being placed in production , and an expansion of services provided to existing clients . agency revenue increased $ 43.1 million due to demand in the automotive vertical . marketing analytic services provided by loyaltyone also increased $ 25.1 million due to new client signings . other revenue . revenue increased $ 13.1 million , or 8.3 % , to $ 169.9 million for the year ended december 31 , 2014 due to the brandloyalty acquisition , which added $ 6.8 million , and additional consulting services provided by epsilon . cost of operations . cost of operations increased $ 669.6 million , or 26.3 % , to $ 3.2 billion for the year ended december 31 , 2014 as compared to $ 2.5 billion for the year ended december 31 , 2013. the increase resulted from growth across each of our segments , including the following : within the loyaltyone segment , cost of operations increased $ 396.1 million due to the brandloyalty acquisition , which added $ 438.2 million . this increase was offset by a decrease in operating expenses in our canadian operations of $ 42.0 million due to the decline in the canadian exchange rate . within the epsilon segment , cost of operations increased $ 129.6 million due to the conversant acquisition , an increase in payroll and benefits expense of $ 52.9 million associated with an increase in the number of associates to support growth , including the onboarding of new clients , and an increase of $ 44.4 million in direct processing expenses , associated with the increase in revenue . within the private label services and credit segment , cost of operations increased by $ 150.3 million . payroll and benefits expense increased $ 76.3 million associated with an increase in the number of associates to support growth , and marketing expenses increased $ 23.4 million due to the increase in credit sales . other operating expenses increased by $ 50.6 million , as credit card processing expenses were higher due to an increase in the number of statements generated , and data processing costs increased due to growth in volumes . earn-out obligation . on january 2 , 2014 , we acquired a 60 % ownership interest in brandloyalty . the share purchase agreement contained an earn-out provision which resulted in an increase in contingent consideration of $ 105.9 million , which is included in operating expenses in our consolidated statements of
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity sources . in addition to cash generated from operating activities , our primary sources of liquidity include our credit card securitization program , deposits issued by comenity bank and comenity capital bank , our credit agreement and issuances of debt and equity securities . in addition to our efforts to renew and expand our current liquidity sources , we continue to seek new funding sources . we continue to expand our brokered certificates of deposits and our money market deposits to supplement liquidity for our credit card and loan receivables . we believe that internally generated funds and other sources of liquidity discussed above will be sufficient to meet working capital needs , capital expenditures , and other business requirements for at least the next 12 months , including the 347.1 million ( $ 392.9 million as of february 10 , 2015 ) due as contingent consideration associated with the acquisition of our 60 % ownership interest in brandloyalty and the additional 10 % ownership interest acquired effective january 1 , 2015 in accordance with the terms of the brandloyalty share purchase agreement , and amounts due under the brandloyalty credit agreement that mature on december 31 , 2015. debt 2013 credit agreement . we entered into a credit agreement dated july 10 , 2013 , or the 2013 credit agreement , among us as borrower , and ads alliance data systems , inc. , ads foreign holdings , inc. , alliance data foreign holdings , inc. , epsilon data management , llc , comenity llc , comenity servicing llc and aspen marketing services , llc , as guarantors , with various agents and lenders . at december 31 , 2013 , the 2013 credit agreement provided for a $ 1.25 billion term loan , or the 2013 term loan , subject to certain principal repayments , and a $ 1.25 billion revolving line of credit with a u.s. $ 65.0 million sublimit for canadian dollar borrowings and a $ 65.0 million sublimit for swing line loans . in july 2014 , we exercised in part the accordion feature of the 2013 credit agreement and increased the capacity under the 2013 credit facility by $ 50.0 million to $ 1.3 billion .
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initial public offering on november 16 , 2011 , we completed our initial public offering , or ipo , of common stock pursuant to a registration statement on form s-1that was declared effective on november 10 , 2011. we sold 6,200,000 shares of our common stock , at a price of $ 7.00 per share . as a result of the ipo , we raised a total of $ 37.6 million in net proceeds after deducting underwriting discounts and commissions of $ 3.0 million and offering expenses of $ 2.9 million . costs directly associated with our ipo were capitalized and recorded as deferred ipo costs prior to the closing of the ipo . these costs have been recorded as a reduction of the proceeds received in arriving at the amount to be recorded in additional paid-in capital . upon the closing of the ipo , 14,270,113 63 shares of our convertible preferred stock automatically converted into 10,719,353 shares of our common stock , which also reflected conversion price adjustments to our preferred stock . financial overview revenues from our inception through december 31 , 2011 , we have not generated any revenue from product sales . we have generated $ 5.7 million in grant revenue from our inception through december 31 , 2011 , which is primarily attributable to research and development being performed by our subsidiary , bioprotection systems corporation , or bps , under contracts and grants with the department of defense , or dod , and the national institutes of health , or nih . in the future , we may generate revenue from a variety of sources , including product sales if we develop products which are approved for sale , license fees , and milestone , research and development and royalty payments in connection with strategic collaborations or licenses of our intellectual property . we expect that any revenue we generate will fluctuate from quarter to quarter as a result of the timing and amount of license fees , research and development reimbursements , milestone and other payments we may receive under potential strategic collaborations , and the amount and timing of payments we may receive upon the sale of any products , if approved , to the extent any are successfully commercialized . we do not expect to generate revenue from product sales for several years , if ever . if we fail to complete the development of our product candidates in a timely manner or to obtain regulatory approval for them , our ability to generate future revenue , and our results of operations and financial position , would be materially adversely affected . research and development expenses research and development expenses consist of expenses incurred in connection with the discovery and development of our product candidates . these expenses consist primarily of : employee‑related expenses , which include salaries , bonuses , benefits and share‑based compensation ; the cost of acquiring and manufacturing clinical trial materials ; expenses incurred under agreements with contract research organizations , investigative sites and consultants that conduct our clinical trials and a substantial portion of our preclinical studies ; facilities , depreciation of fixed assets and other allocated expenses , which include direct and allocated expenses for rent and maintenance of research facilities and equipment ; license fees for and milestone payments related to in-licensed products and technology ; and costs associated with non-clinical activities and regulatory approvals . we expense research and development expenses as incurred . product candidates in late stages of clinical development generally have higher development costs than those in earlier stages of clinical development , primarily due to the increased size , duration and complexity of later stage clinical trials . we plan to increase our research and development expenses for the foreseeable future as we seek to complete development of our most advanced product candidates , and to further advance our earlier‑stage research and development projects . from our inception through december 31 , 2011 , 2010 and 2009 , we have incurred $ 60.3 , $ 46.1 and $ 33.4 million , respectively , in research and development expenses . the following tables summarize our research and development expenses for the periods indicated : replace_table_token_9_th 64 replace_table_token_10_th at this time , we can not accurately estimate or know the nature , specific timing or costs necessary to complete clinical development activities for our product candidates . we are subject to the numerous risks and uncertainties associated with developing biopharmaceutical products including the uncertain cost and outcome of ongoing and planned clinical trials , the possibility that the fda or another regulatory authority may require us to conduct clinical or non-clinical testing in addition to trials that we have planned , rapid and significant technological changes , frequent new product and service introductions and enhancements , evolving industry standards in the life sciences industry and our future need for additional capital . in addition , we currently have limited clinical data concerning the safety and efficacy of our product candidates . a change in the outcome of any of these variables with respect to the development of any of our product candidates could result in a significant change in the costs and timing of our research and development expenses . general and administrative expenses general and administrative expenses consist principally of salaries and related costs for personnel in executive , finance , business development , information technology , legal and human resources functions . other general and administrative expenses include facility costs not otherwise associated with research and development expenses , intellectual property prosecution and defense costs and professional fees for legal , consulting , auditing and tax services . story_separator_special_tag the gaap measurement date did not occur until april 14 , 2011 , which was the date the exercise price per share based on completion and approval of the december 31 , 2010 common stock valuation report and the awards were communicated to all recipients . we do not believe the fair value of our common stock on april 14 , 2011 was materially different than the value at december 31 , 2010 ; therefore the december 31 , 2010 value was used to measure the stock option award . ( 5 ) we do not believe the fair values of our common stock on january 19 , 2011 or april 14 , 2011 was materially different than the value at december 31 , 2010 ; therefore the december 31 , 2010 value was used to measure the stock option award . based on the december 30 , 2011 price of $ 7.04 per share , the intrinsic value of stock options outstanding at december 31 , 2011 , was $ 11.6 million , of which $ 9.6 million and $ 2.0 million related to stock options that were vested and unvested , respectively , at that date . results of operations comparison of the years ended december 31 , 2011 and 2010 revenues . revenues for the twelve months ended december 31 , 2011 were $ 1.9 million , decreasing from $ 2.1 million for the same period in 2010. the decrease in revenue of $ 207,000 was due to a one-time qualifying therapeutic discovery project grant in 2010 of $ 244,000 offset by increased grant billings on research under various dod contracts and nih grants of $ 37,000. on september 21 , 2011 , bps entered into an amendment to a dod contract extending the contract period to september 24 , 2013 and increasing the aggregate amounts for which bps may receive reimbursements by $ 3.4 million to a total of up to approximately $ 7.1 million . 69 research and development expenses . research and development expenses for the twelve months ended december 31 , 2011 were $ 14.3 million , increasing from $ 12.7 million for the same period in 2010. the $ 1.6 million increase was primarily due to an increase of $ 744,000 in personnel-related expenses and an increase of $ 888,000 in clinical trial expense , contract research and other expenses offset by a decrease of $ 43,000 in equipment and supplies . general and administrative expenses . general and administrative expenses for the twelve months ended december 31 , 2011 were $ 5.7 million , decreasing from $ 6.1 million for the same period in 2010. the $ 400,000 decrease was primarily due to a decrease of $ 984,000 in legal fees and $ 65,000 in licensing fees , offset by an increase of $ 406,000 in personnel expenses , $ 108,000 in accounting expenses , $ 91,000 in recruiting , and $ 44,000 in insurance and other expenses . interest income and expense . interest expense for the twelve months ended december 31 , 2011 was $ 42,000 , compared to $ 47,000 for the same period in 2010. interest income for the twelve months ended december 31 , 2011 was $ 11,000 , compared to $ 75,000 for the same period in 2010. other income ( expense ) . miscellaneous income , net for the twelve months ended december 31 , 2011 was $ 5,000 , compared to $ 71,000 for the same period in 2010. miscellaneous income for the twelve months ended december 31 , 2011 was primarily attributable to the receipt of training credits from the state of iowa . comparison of the years ended december 31 , 2010 and 2009 revenues . revenues for the year ended december 31 , 2010 were $ 2.1 million , increasing from $ 934,000 for the same period in 2009. the increase in revenue of $ 1.1 million was due to an increase in billings of $ 860,000 by bps under various dod contracts and nih grants and the receipt of $ 240,000 in section 48d income tax credits by newlink . research and development expenses . research and development expenses for the year ended december 31 , 2010 were $ 12.7 million , increasing from $ 7.6 million for the same period in 2009. the $ 5.1 million increase was due to a $ 2.4 million increase in equipment , supplies and occupancy costs including the acquisition of in-process research and development , accompanied by a $ 1.9 million increase in personnel‑related expenses and an $ 800,000 increase in outside clinical and other expenses including direct development expenses for our clinical trial activities . general and administrative expenses . general and administrative expenses for the year ended december 31 , 2010 were $ 6.1 million , increasing from $ 3.7 million for the same period in 2009. the $ 2.4 million increase was primarily due to a $ 1.0 million increase in professional fees , a $ 864,000 increase in personnel‑related expenses , a $ 129,000 increase in equipment , supplies and occupancy costs , and a $ 374,000 increase in other costs . interest income and expense . interest expense for the year ended december 31 , 2010 was $ 47,000 , compared to $ 9,000 for the same period in 2009. the $ 38,000 increase was due to increased borrowings under notes payable and capital lease obligations . interest income for the year ended december 31 , 2010 was $ 75,000 , compared to $ 132,000 for the same period in 2009. the $ 57,000 decrease was primarily due to a decrease in interest rates , partially offset by an increase in our average cash balances . other income ( expense ) . miscellaneous income , net for the year ended december 31 , 2010 was $ 71,000 , compared to $ 19,000 for the same period in 2009. story_separator_special_tag march 2005 iowa department of economic development loan
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources we have funded our operations principally through the private placement of equity securities , debt financing and interest income . as of december 31 , 2011 , we have received proceeds , net of offering costs , of $ 76.3 million from the issuance of convertible preferred stock , including $ 7.5 million from the sale of 1.5 million shares of series d preferred stock in july 2009 , $ 30.0 million from the sale of 6.0 million shares of series c preferred stock in during the course of 2008 and 2009 , and $ 21.4 million from the sale of 684,624 shares of series e preferred stock during the course of 2010 and the first half of 2011 , of which $ 8.6 million was issued to acquire the minority interest in bps . as of november 16 , 2011 , we received proceeds , net of offering costs , of $ 37.6 million from the issuance of 6,200,000 shares of common stock in our ipo . the following table sets forth the primary sources and uses of cash for each of the periods set forth below : 70 replace_table_token_13_th for the years ended december 31 , 2011 , 2010 and 2009 , we used cash of $ 12.9 million , $ 13.3 million and $ 9.1 million , respectively , for our development activities . the use of cash in these periods primarily resulted from our net losses adjusted for non-cash items and changes in operating assets and liabilities . for the years ended december 31 , 2011 , 2010 and 2009 , our investing activities used cash of $ 502,000 , $ 2.7 million and $ 1.5 million , respectively .
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· our ability to achieve and maintain profitability and positive cash flow is dependent upon : · our ability to develop and continually update our websites ; · our ability to procure and maintain on commercially reasonable terms relationships with third parties from whom we acquire inventory ; · our ability to identify and pursue mediums through which we will be able to market our products ; · our ability to attract new customers to our websites who are interested in purchasing our products ; and · our ability to manage our costs and maintain low overhead . 16 · based upon current plans , we expect to incur operating losses in future periods because we will continue to be developing our maple tree kids website to sell personalized children products that will be located at www.mapletreekids.com and will be incurring expenses and not generating significant revenues . · we are dependent upon our relationship with our major customer . this customer accounted for approximately 80 % of our total revenues for the year ended december 31 , 2015 and the year ended december 31 , 2014 , respectively . this major customer is not contractually obligated to purchase any minimum amount of products from us and can discontinue buying products from us at any time . if we fail to maintain this relationship , our sales will be significantly diminished . any change in the terms of our sales to our major customer could have a material impact on our financial position and results of operations . · our sales are dependent on our ability to attract retail customers to our website on cost-effective terms . our strategy to attract customers to our website includes viral marketing , the practice of placing advertisements and offering giveaways on various highly rated baby weblogs or `` blogs `` , online journals that are updated frequently and available to the public , postings on online communities such as facebook , myspace , yahoo ! ( r ) groups and amateur websites such as youtube.com , and other methods of getting internet users to refer others to our website by e-mail or word of mouth ; search engine optimization , marketing our website via search engines by purchasing sponsored placement in search results ; and entering into affiliate marketing relationships with website providers to increase our access to internet consumers . we expect to rely on word of mouth marketing as the primary source of traffic to our website , with search engine optimization and affiliate marketing as secondary sources . we will continue to seek , depending on market conditions , new financing or additional sources of capital over the next 12 months . the primary potential sources of cash available to us are equity investments . we have no debt or credit lines and we have financed our operations to date through the sale of our common stock and shareholder loans . in september 2014 and october 2014 we raised $ 22,170 in our registered offering . this registered offering was closed on november 7 , 2014. we also obtained a total of $ 13,000 and $ 10,000 of shareholder advances during the years ended december 31 , 2015 and 2014 , respectively . results of operations for years ended december 31 , 201 5 and december 31 , 201 4 revenues we generated revenues of $ 10,052 for the year ended december 31 , 2015 and $ 13,985 for the year ended december 31 , 2014. this decrease in revenue in 2015 is due to a decrease in the volume of items sold through our website and to our major customer . our ability to generate a significant level of revenues to support our operations , however , is very uncertain . we received a going concern opinion from our audit firm as we continue to require additional working capital in order to devote substantially all of our efforts to rebranding our company under the name maple tree kids to sell more personalized children products to the market and creating related marketing and sales collateral , a new logo and new website among other things . cost of sales our cost of sales was $ 6,486 for the year ended december 31 , 2015 and $ 9,421 for the year ended december 31 , 2014. the decrease in the cost of sales for 2015 was due to our decrease in revenue in 2015 as we sold our merchandise to fewer retail customers in 2015. gross profit we generated gross profit of $ 3,566 for the year ended december 31 , 2015 and $ 4,564 for the year ended december 31 , 2014. the increase in the gross profit percentage from 33 % in 2014 to 35 % in 2015 was due a small increase in our selling prices to retail customers due to a change in the sales product mix to our customers in 2015 . 17 operating expenses our operating expenses were $ 40,145 for the year ended december 31 , 2015 and $ 18,039 for the year ended december 31 , 2014. the increase in our operating expenses in 2015 was due to an increase in professional fees related to being a public reporting company and fees associated with becoming listed on the otcqb exchange and registering the company 's stock with the depository trust company ( dtc ) . net loss our net loss for the year ended december 31 , 2015 was $ 36,579 and was $ 13,475 for the year ended december 31 , 2014. the increase in net loss in 2015 was due to the reasons stated above . impact of potential loss of our major customer on our liquidity currently sales to our major customer constitute approximately 80 % of our total revenue . any substantial decrease in selling our products to them will substantially affect our operating results and liquidity . although we currently have a satisfactory relationship with our major customer story_separator_special_tag · our ability to achieve and maintain profitability and positive cash flow is dependent upon : · our ability to develop and continually update our websites ; · our ability to procure and maintain on commercially reasonable terms relationships with third parties from whom we acquire inventory ; · our ability to identify and pursue mediums through which we will be able to market our products ; · our ability to attract new customers to our websites who are interested in purchasing our products ; and · our ability to manage our costs and maintain low overhead . 16 · based upon current plans , we expect to incur operating losses in future periods because we will continue to be developing our maple tree kids website to sell personalized children products that will be located at www.mapletreekids.com and will be incurring expenses and not generating significant revenues . · we are dependent upon our relationship with our major customer . this customer accounted for approximately 80 % of our total revenues for the year ended december 31 , 2015 and the year ended december 31 , 2014 , respectively . this major customer is not contractually obligated to purchase any minimum amount of products from us and can discontinue buying products from us at any time . if we fail to maintain this relationship , our sales will be significantly diminished . any change in the terms of our sales to our major customer could have a material impact on our financial position and results of operations . · our sales are dependent on our ability to attract retail customers to our website on cost-effective terms . our strategy to attract customers to our website includes viral marketing , the practice of placing advertisements and offering giveaways on various highly rated baby weblogs or `` blogs `` , online journals that are updated frequently and available to the public , postings on online communities such as facebook , myspace , yahoo ! ( r ) groups and amateur websites such as youtube.com , and other methods of getting internet users to refer others to our website by e-mail or word of mouth ; search engine optimization , marketing our website via search engines by purchasing sponsored placement in search results ; and entering into affiliate marketing relationships with website providers to increase our access to internet consumers . we expect to rely on word of mouth marketing as the primary source of traffic to our website , with search engine optimization and affiliate marketing as secondary sources . we will continue to seek , depending on market conditions , new financing or additional sources of capital over the next 12 months . the primary potential sources of cash available to us are equity investments . we have no debt or credit lines and we have financed our operations to date through the sale of our common stock and shareholder loans . in september 2014 and october 2014 we raised $ 22,170 in our registered offering . this registered offering was closed on november 7 , 2014. we also obtained a total of $ 13,000 and $ 10,000 of shareholder advances during the years ended december 31 , 2015 and 2014 , respectively . results of operations for years ended december 31 , 201 5 and december 31 , 201 4 revenues we generated revenues of $ 10,052 for the year ended december 31 , 2015 and $ 13,985 for the year ended december 31 , 2014. this decrease in revenue in 2015 is due to a decrease in the volume of items sold through our website and to our major customer . our ability to generate a significant level of revenues to support our operations , however , is very uncertain . we received a going concern opinion from our audit firm as we continue to require additional working capital in order to devote substantially all of our efforts to rebranding our company under the name maple tree kids to sell more personalized children products to the market and creating related marketing and sales collateral , a new logo and new website among other things . cost of sales our cost of sales was $ 6,486 for the year ended december 31 , 2015 and $ 9,421 for the year ended december 31 , 2014. the decrease in the cost of sales for 2015 was due to our decrease in revenue in 2015 as we sold our merchandise to fewer retail customers in 2015. gross profit we generated gross profit of $ 3,566 for the year ended december 31 , 2015 and $ 4,564 for the year ended december 31 , 2014. the increase in the gross profit percentage from 33 % in 2014 to 35 % in 2015 was due a small increase in our selling prices to retail customers due to a change in the sales product mix to our customers in 2015 . 17 operating expenses our operating expenses were $ 40,145 for the year ended december 31 , 2015 and $ 18,039 for the year ended december 31 , 2014. the increase in our operating expenses in 2015 was due to an increase in professional fees related to being a public reporting company and fees associated with becoming listed on the otcqb exchange and registering the company 's stock with the depository trust company ( dtc ) . net loss our net loss for the year ended december 31 , 2015 was $ 36,579 and was $ 13,475 for the year ended december 31 , 2014. the increase in net loss in 2015 was due to the reasons stated above . impact of potential loss of our major customer on our liquidity currently sales to our major customer constitute approximately 80 % of our total revenue . any substantial decrease in selling our products to them will substantially affect our operating results and liquidity . although we currently have a satisfactory relationship with our major customer
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources as of december 31 , 2015 , we had cash of $ 1,983 , total assets of $ 1,983 and a working capital deficit of $ 24,983 compared to $ 26,693 in cash , $ 26,693 in total assets and $ 11,596 in working capital as of december 31 , 2014. the following table provides detailed information about our net cash flow for all financial statement periods presented in this report : cash flow replace_table_token_1_th operating activities cash used in operating activities in the year ended december 31 , 2015 consisted of net loss as well as the effect of changes in working capital . cash used in operating activities in the year ended december 31 , 2015 was $ 37,710 , which consisted of a net loss of $ 36,579 , and a decrease in accrued liabilities of $ 1,131 . 18 cash used in operating activities in the year ended december 31 , 2014 consisted of net loss as well as the effect of changes in working capital . cash used in operating activities in the year ended december 31 , 2014 was $ 9,961 , which consisted of a net loss of $ 13,475 , non-cash charge of inventory acquired from our principal shareholder through shareholder advances of $ 3,378 and cash provided by working capital of $ 136. the cash provided by working capital was due to an increase in accrued liabilities of $ 136. investing activities during the years ended december 31 , 2015 and 2014 we had no investing activities .
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we financed the purchase price for the buffalo filter acquisition using a combination of the issuance of $ 345.0 million of 2.625 % convertible notes due 2024 issued on january 29 , 2019 ( the convertible notes ” ) and the incurrence of indebtedness under our sixth amended and restated senior secured credit agreement , which closed on february 7 , 2019 . refer to financing cash flows and note 17 to the consolidated financial statements for further details . critical accounting policies preparation of our financial statements requires us to make estimates and assumptions which affect the reported amounts of assets , liabilities , revenues and expenses . note 1 to the consolidated financial statements describes the significant accounting policies used in preparation of the consolidated financial statements . the most significant areas involving management judgments and estimates are described below and are considered by management to be critical to understanding the financial condition and results of operations of conmed corporation . actual results may or may not differ from these estimates . inventory valuation we value inventory at the lower of cost and net realizable value based on historical experience and life of inventory . we write-off excess and obsolete inventory resulting from the inability to sell our products at prices in excess of current carrying costs . we make estimates regarding the future recoverability of the costs of our products and record a provision for excess and obsolete 22 inventories based on historical experience and expected future trends . market changes or new product introductions could impact demand for our products and require inventory write-downs . goodwill and intangible assets we have a history of growth through acquisitions . assets and liabilities of acquired businesses are recorded at their estimated fair values as of the date of acquisition . goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses . factors that contribute to the recognition of goodwill include synergies that are specific to our business and are expected to increase net sales and profits ; acquisition of a talented workforce ; cost savings opportunities ; the strategic benefit of expanding our presence in core and adjacent markets ; and diversifying our product portfolio . customer and distributor relationships , trademarks , tradenames , developed technology , patents and other intangible assets primarily represent allocations of purchase price to identifiable intangible assets of acquired businesses . sales representation , marketing and promotional rights represent intangible assets created under our agreement with musculoskeletal transplant foundation ( “ mtf ” ) . determining the fair value of intangible assets acquired as part of a business combination requires us to make significant estimates . these estimates include the amount and timing of projected future cash flows of each project or technology , the discount rate used to discount those cash flows to present value , the assessment of the asset 's useful life , and the consideration of legal , technical , regulatory , economic , and competitive risks . goodwill and intangible assets deemed to have indefinite lives are not amortized , but are subject to at least annual impairment testing . it is our policy to perform our annual impairment testing in the fourth quarter . the identification and measurement of goodwill impairment involves the estimation of the fair value of our business . estimates of fair value are based on the best information available as of the date of the assessment . we completed our goodwill impairment testing during the fourth quarter of 2018 . we performed our impairment test utilizing the market capitalization approach to determine whether the fair value of a reporting unit is less than its carrying amount . based upon our assessment , the fair value continues to exceed carrying value . intangible assets with a finite life are amortized over the estimated useful life of the asset and are evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization . intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable . the carrying amount of an intangible asset subject to amortization is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset . an impairment loss is recognized by reducing the carrying amount of the intangible asset to its current fair value . for all other indefinite-lived intangible assets , we perform a qualitative impairment test . based upon this assessment , we have determined that our indefinite-lived intangible assets are not impaired . see note 5 to the consolidated financial statements for further discussion of goodwill and other intangible assets . 23 consolidated results of operations the following table presents , as a percentage of net sales , certain categories included in our consolidated statements of comprehensive income for the periods indicated : replace_table_token_6_th 24 net sales the following table presents net sales by product line for the years ended december 31 , 2018 , 2017 and 2016 : replace_table_token_7_th replace_table_token_8_th ( a ) adjusted net sales growth is measured in constant currency and is adjusted for administrative fees that we began recording as a reduction of revenue under accounting standards codification 606 , revenue from contracts with customers ( `` asc 606 `` ) on january 1 , 2018. refer to note 16 to the consolidated financial statements and non-gaap financial measures below for further details . net sales increased 7.9 % to $ 859.6 million in 2018 and 4.3 % in 2017 to $ 796.4 million from $ 763.5 million in 2016 . the increase in 2018 was due to growth in both the orthopedic and general surgery product lines , as described below . story_separator_special_tag if , however , the market price per share of our common stock , as measured under the terms of the warrant transactions , exceeds the strike price of the warrants , there would nevertheless be dilution to the extent that such market price exceeds the strike price of the warrants , unless we elect to settle the warrants in cash . we have a mortgage note outstanding in connection with the largo , florida property and facilities bearing interest at 8.25 % per annum with semiannual payments of principal and interest through june 2019. the principal balance outstanding on the mortgage note aggregated $ 0.8 million at december 31 , 2018 . the mortgage note is collateralized by the largo , florida property and facilities . our board of directors has authorized a $ 200.0 million share repurchase program . through december 31 , 2018 , we have repurchased a total of 6.1 million shares of common stock aggregating $ 162.6 million under this authorization and have $ 37.4 million remaining available for share repurchases . the repurchase program calls for shares to be purchased in the open market or in private transactions from time to time . we may suspend or discontinue the share repurchase program at any time . we did not purchase any shares of common stock under the share repurchase program during 2018 . we have financed the repurchases and may finance additional repurchases through operating cash flow and from available borrowings under our revolving credit facility . management believes that cash flow from operations , including cash and cash equivalents on hand and available borrowing capacity under our amended and restated senior credit agreement , will be adequate to meet our anticipated operating working capital requirements , debt service , funding of capital expenditures and common stock repurchases in the foreseeable future . see “ item 1a . risk factors - risks related to our indebtedness . `` restructuring for the years ending december 31 , 2017 and 2016 , we incurred $ 2.9 million and $ 3.1 million , respectively , in costs associated with operational restructuring . these costs were charged to cost of sales and include severance , inventory and other charges . as part of this plan , we engaged a consulting firm to assist us in streamlining our product offering and improving our operational efficiency . as a result , we identified certain catalog numbers to be discontinued and consolidated into existing product offerings and recorded a $ 1.3 million charge in the year ended december 31 , 2017 to write-off inventory which will no longer be offered for sale . this amount is included in the above total for 2017. during 2016 , the company discontinued our altrus product offering as part of our ongoing restructuring and incurred $ 4.5 million in non-cash charges primarily related to inventory and fixed assets which were included in cost of sales . during 2017 and 2016 , we restructured certain sales , marketing and administrative functions and incurred severance and other related costs in the amount of $ 1.3 million and $ 6.7 million . these costs were charged to selling and administrative expense . during 2016 , we sold our centennial , colorado facility . we received net cash proceeds of $ 5.2 million and recorded a gain of $ 1.9 million in selling and administrative expense . during recent years we had a number of initiatives to consolidate manufacturing facilities and restructure our sales and administrative functions . although much of this is complete , we will continue to review our operations and sales and administrative functions to reduce costs and headcount , as necessary . such cost reductions will result in additional charges , including employee termination costs and other exit costs that will be charged to cost of sales and selling and administrative expense , as applicable . refer to note 13 to the consolidated financial statements for further discussions regarding restructuring . 30 contractual obligations the following table summarizes our contractual obligations for the next five years and thereafter ( amounts in thousands ) as of december 31 , 2018 . purchase obligations represent purchase orders for goods and services placed in the ordinary course of business . replace_table_token_9_th in addition to the above contractual obligations , we are required to make periodic interest payments on our long-term debt obligations ( see additional discussion under item 7a . “ quantitative and qualitative disclosures about market risk—interest rate risk ” and note 6 to the consolidated financial statements ) . the above table also does not include unrecognized tax benefits of approximately $ 3.1 million , the timing and certainty of recognition for which is not known ( see note 7 to the consolidated financial statements ) . stock-based compensation we have reserved shares of common stock for issuance to employees and directors under two shareholder-approved share-based compensation plans ( the `` plans `` ) . the plans provide for grants of stock options , stock appreciation rights ( “ sars ” ) , dividend equivalent rights , restricted stock , restricted stock units ( “ rsus ” ) , performance share units ( “ psus ” ) and other equity-based and equity-related awards . the exercise price on all outstanding stock options and sars is equal to the quoted fair market value of the stock at the date of grant . rsus and psus are valued at the market value of the underlying stock on the date of grant . stock options , sars , rsus and psus are non-transferable other than on death and generally become exercisable over a four to five year period from date of grant . stock options and sars expire ten years from date of grant . sars are only settled in shares of the company 's stock ( see note 8 to the consolidated financial statements ) . total pre-tax stock-based compensation expense recognized in the consolidated statements of comprehensive
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources our liquidity needs arise primarily from capital investments , working capital requirements and payments on indebtedness under the amended and restated senior credit agreement , described below . we have historically met these liquidity requirements with funds generated from operations and borrowings under our revolving credit facility . in addition , we have historically used term borrowings , including borrowings under the fifth amended and restated senior credit agreement and borrowings under separate loan facilities , in the case of real property purchases , to finance our acquisitions . we also have the ability to raise funds through the sale of stock or we may issue debt through a private placement or public offering . management believes that cash flow from operations , including cash and cash equivalents on hand and available borrowing capacity under our amended and restated senior credit agreement , will be adequate to meet our anticipated operating working capital requirements , debt service , funding of capital expenditures and common stock repurchases in the foreseeable future . we had total cash on hand at december 31 , 2018 of $ 17.5 million , of which approximately $ 16.1 million was held by our foreign subsidiaries outside the united states with unremitted earnings . during 2018 , we redeployed $ 25.4 million of cash from certain non-u.s. subsidiaries primarily for u.s. debt reduction . this cash consisted of earnings that were taxed in 2017 as part of the deemed repatriation toll charge implemented by tax reform . if we were to repatriate the remaining unremitted earnings that have been taxed as part of the deemed repatriation toll charge , we would be required to accrue and pay withholding taxes in certain foreign jurisdictions .
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was $ 120.2 million , an increase of 12 % from $ 107.0 million in 2012. non-core pc postage revenue in 2013 was $ 2.9 million , a decrease of 5 % from $ 3.0 million in 2012. the following table sets forth the breakdown of pc postage revenue , which includes core pc postage revenue and non-core pc postage revenue for 2013 and 2012 and the resulting percent change ( revenue in $ 000s ) : replace_table_token_7_th the increase in core pc postage revenue was primarily attributable to an increase in paid customers . annual average paid customers increased 11 % to 466,000 in 2013 from 421,000 in 2012. the decrease in non-core pc postage revenue was primarily attributable to lower marketing spend in the online enhanced promotion channel . we define paid customers for the quarter as ones from whom we successfully collected service fees at least once during that quarter , and we define average paid customers for the year as the average of the paid customers for each of the four quarters during the year . the following table sets forth the number of paid customers ( 000s ) in the period for our core pc postage business : replace_table_token_8_th the following table sets forth the growth in paid customers and average annual revenue per paid customer for our core pc postage business : replace_table_token_9_th 25 the increase in paid customers is primarily driven by an increased number of new customers acquired , which was driven by our increased spend in core pc postage marketing channels , while our lost customer churn rates remained at levels that were consistent with the prior year . for our core pc postage business , our average annual and monthly core pc postage revenue per paid customer in 2013 was $ 258 and $ 21.51 respectively , which increased by 2 % compared to $ 254 and $ 21.18 , respectively in 2012. the increase in average revenue per paid customer was primarily attributable to higher service revenue per paid customer from our high volume shipping and enterprise customers and higher store revenue per paid customer from increased sales of netstamps labels ; partially offset by a reduction in revenue per paid customer from our amazon partnership . revenue by product the following table shows our components of revenue and their respective percentages of total revenue for the periods indicated ( in 000s except percentage ) : replace_table_token_10_th our revenue is derived primarily from five sources : ( 1 ) service revenue from subscription , transaction and other fees related to our pc postage services and integrations ; ( 2 ) product revenue from the direct sale of consumables and supplies through our supplies store ; ( 3 ) insurance revenue from the sale of package insurance to our customers ; ( 4 ) photostamps revenue from selling sheets of photostamps postage ; and ( 5 ) other revenue , consisting primarily of advertising revenue derived from advertising programs with our existing customers . service revenue increased 12 % to $ 99.0 million in 2013 from $ 88.2 million in 2012. the 12 % increase in service revenue in 2013 consisted of a 13 % increase in service revenue from our core pc postage business while the service revenue from our non-core pc postage business decreased 5 % . the 12 % increase in our core pc postage service revenue consisted of an 11 % increase in our annual average paid customers and a 2 % increase in our annual average revenue per paid customer . product revenue increased 13 % to $ 16.6 million in 2013 from $ 14.7 million in 2012. the increase was primarily attributable to the following : ( 1 ) increase in netstamps label sales ; ( 2 ) growth in our paid customer base ; ( 3 ) the postal rate increase in january 2013 , which generated incremental label sales for the period of time around the rate increase ; ( 4 ) marketing our supplies store to our existing customer base ; and ( 5 ) growth in postage printed , which helps drive sales of consumable supplies such as labels . total postage printed by customers using our service in 2013 was $ 1.6 billion , a 36 % increase from the $ 1.1 billion printed in 2012. insurance revenue increased 6 % to $ 7.5 million in 2013 from $ 7.1 million in 2012. this increase was primarily attributable to increased insurance purchases by our high volume shippers , partially offset by a reduction in insurance revenue through our amazon partnership . we continued to reduce our photostamps sales and marketing spending in 2013 compared with 2012 , and plan to continue to reduce our sales and marketing spending on photostamps in future periods to maintain or improve profitability in that business , although we believe that there may be potential opportunities to grow the business in a better economic environment . as a result of this decision photostamps revenue decreased 17 % to $ 4.7 million in 2013 from $ 5.7 million in 2012. total photostamps sheets shipped in 2013 decreased 20 % to 255 thousand compared to 2012 and average revenue per photostamps sheet shipped increased 4 % to $ 18.50 in 2013 compared to 2012. the decrease in sheets shipped was primarily attributable to our lower marketing spend and the increase in average revenue per sheet shipped was primarily attributable to less discounting on custom negotiated pricing . 26 cost of revenue the following table shows cost of revenues and cost of revenues as a percentage of its associated revenue for the periods indicated ( in 000s except percentage ) : replace_table_token_11_th cost of service revenue principally consists of the cost of customer service , certain promotional expenses , system operating costs , credit card processing fees and customer misprints that do not qualify for reimbursement from the usps . story_separator_special_tag product revenue increased 9 % to $ 14.7 million in 2012 from $ 13.5 million in 2011. the increase is primarily attributable to the following : ( 1 ) growth in our paid customer base ; ( 2 ) the postal rate increase in january 2012 which generated incremental label sales for the period of time around the rate increase ; ( 3 ) marketing our supplies store to our existing customer base ; and ( 4 ) growth in postage printed , which helps drive sales of consumable supplies such as labels . total postage printed by customers using our service in 2012 was $ 1.1 billion , a 71 % increase from the $ 672 million printed in 2011. insurance revenue increased 65 % to $ 7.1 million in 2012 from $ 4.3 million in 2011. this increase is primarily attributable to : ( 1 ) the expansion of our existing package insurance offering to cover packages being shipped to international destinations ; ( 2 ) insurance purchases resulting from our partnership with amazon.com ; and ( 3 ) increased insurance purchases by high volume shippers . postage printed by our high volume shipping customers was up 66 % in 2012 compared to 2011. photostamps revenue decreased 32 % to $ 5.7 million in 2012 from $ 8.3 million in 2011. the decrease is primarily attributable to : ( 1 ) we continued to reduce our photostamps sales and marketing spending in 2012 compared with 2011 to maintain or improve profitability in that business and ( 2 ) during the second quarter of 2011 , we first applied breakage accounting to our photostamps boxes sold through retail channels which resulted in an incremental $ 2.2 million of photostamps revenue in 2011 which did not repeat in 2012. please see note 2 “ summary of significant accounting policies—photostamps retail boxes ” in our notes to consolidated financial statements for further discussion . photostamps sheets shipped decreased 5 % to 319,000 in 2012 from 335,000 in 2011 primarily as a result of the reduced marketing spending . average revenue per photostamps sheet shipped decreased 3 % to $ 17.71 in 2012 from $ 18.21 in 2011 as a result of an increase in high volume business orders which are typically sold at discounted price compared to consumer website orders . other revenue consisting of commissions from the advertising or sale of products by third party vendors to our customer increased 9 % to $ 7,000 in 2012 from $ 6,000 in 2011. commission revenue from the advertising or sale of products by third party vendors is currently not material to our consolidated financial statements . 32 cost of revenue the following table shows cost of revenues and cost of revenues as a percentage of its associated revenue for the periods indicated ( in $ 000s except percentage ) : replace_table_token_18_th cost of service revenue principally consists of the cost of customer service , certain promotional expenses , system operating costs , credit card processing fees and customer misprints that do not qualify for reimbursement from the usps . cost of product revenue principally consists of the cost of products sold through our mailing & shipping supplies store and the related costs of shipping and handling . the cost of insurance revenue principally consists of parcel insurance offering costs . cost of photostamps revenue principally consists of the face value of postage , customer service , image review costs , and printing and fulfillment costs . cost of service revenue increased 7 % to $ 15.7 million in 2012 from $ 14.7 million in 2011. the increase in cost of service revenue is primarily attributable to higher customer service costs to support our growing customer base . promotional expense , which represents a material portion of total cost of service revenue , is expensed in the period in which a customer qualifies for the promotion , while the revenue associated with the acquired customer is earned over the customer 's lifetime . as a result , promotional expense for newly acquired customers may exceed the revenue earned from those customers in that period . promotional expense decreased 2 % to $ 3.5 million in 2012 from $ 3.6 million in 2011. the decrease in promotion expense is primarily attributable to lower coupon redemption rates . as a result , cost of service revenue as a percentage of service revenue decreased slightly from 19 % in 2011 to 18 % in 2012. cost of product revenue increased 11 % to $ 5.4 million in 2012 from $ 4.9 million in 2011. the increase in product costs was driven by increased product revenue . cost of product revenue as a percentage of product revenue increased slightly from 36 % in 2011 to 37 % in 2012 as a result of higher fulfillment costs that were not passed on to customers . cost of insurance revenue increased 55 % to $ 2.3 million in 2012 from $ 1.5 million in 2011. the increase is primarily attributable to increased insurance revenue resulting from increased activity by our high volume shipping customers . cost of insurance revenue as a percentage of insurance revenue decreased slightly from 35 % in 2011 to 33 % in 2012 as a result of changes and mix shifts in insurance pricing and discounting to the end customers . cost of photostamps revenue decreased 16 % to $ 4.3 million in 2012 from $ 5.1 million in 2011. the decrease is primarily attributable to the decrease in photostamps revenue and the decrease in cost of photostamps revenue related to initial application of photostamps retail box breakage in 2011 that did not repeat in 2012. cost of photostamps revenue increased from 61 % in 2011 to 76 % in 2012. this increase was primarily attributable to the initial application of photostamps retail box breakage accounting in 2011 which was at a higher gross margin compared to the rest of the photostamps business .
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources as of december 31 , 2013 and 2012 , we had $ 87 million and $ 47 million in cash , short-term and long-term investments , respectively . we invest available funds in short-term and long-term money market funds , commercial paper , asset-backed securities , corporate notes and bonds and municipal securities and do not engage in hedging or speculative activities . on january 23 , 2012 , we completed the purchase of two adjacent buildings in el segundo , california that now serve as our corporate headquarters for an aggregate purchase price of $ 13.4 million . we substantially completed the renovation and construction project on the property in 2012. we moved into our new corporate headquarters during the third quarter of 2012. we occupy a portion of the 99,600 square foot space , with the remaining portion of the space continuing to be leased to the existing tenants . the purchase of the property and renovations were funded out of our cash flow from operations and existing cash and investments . net cash provided by operating activities was approximately $ 36 million and $ 27 million in 2013 and 2012 , respectively . the increase in net cash provided by operating activities was primarily attributable to the growth in our revenue and net income and the resulting changes in our operating assets and liabilities . net cash used in investing activities was approximately $ 9 million and $ 28 million in 2013 and 2012 , respectively .
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administration fees and service revenue attributable to the company 's donlen operations are recognized as services are rendered and any subscription fees are recognized ratably over the subscription life . cash and cash equivalents cash and cash equivalents include cash on hand and highly liquid investments with an original maturity of three months or less . restricted cash and cash equivalents restricted cash and cash equivalents includes cash and cash equivalents that are not readily available for the company 's normal disbursements . restricted cash and cash equivalents are restricted primarily for the purchase of revenue earning vehicles and other specified uses under the company 's fleet debt facilities , for its like-kind exchange program ( `` lke program `` ) and to satisfy certain of its self-insurance regulatory reserve requirements . these funds are primarily held in highly rated money market funds with investments primarily in government and corporate obligations . receivables receivables are stated net of allowances and primarily represent credit extended to car manufacturers and customers that satisfy defined credit criteria . the estimate of the allowance for doubtful accounts is based on the company 's historical experience and its judgment as to the likelihood of ultimate payment . actual receivables are written-off against the allowance for doubtful accounts when the company determines the balance will not be collected . estimates for future credit memos are based on historical experience and are reflected as reductions to revenue , while bad debt expense is reflected as a component of `` direct operating `` in the consolidated statements of operations . property and equipment property and equipment are stated at cost and are depreciated utilizing the straight-line method over the estimated useful lives of the related assets . useful lives are as follows : buildings 5 to 50 years furniture and fixtures 1 to 15 years service cars and service equipment 1 to 13 years leasehold improvements the lesser of the economic life or the lease term 87 hertz global holdings , inc. and subsidiaries notes to consolidated financial statements ( continued ) the company follows the practice of charging maintenance and repairs , including the cost of minor replacements , to maintenance expense . costs of major replacements of units of property are capitalized to property and equipment accounts and depreciated . fair value measurements generally accepted accounting principles define fair value as the price that would be received to sell an asset or be paid to transfer a story_separator_special_tag the assumed volatility for our stock is based on our historical stock price data . the assumed dividend yield is zero . the risk-free interest rate is the implied zero-coupon yield for u.s. treasury securities having a maturity approximately equal to the expected term of the options , as of the grant dates . the non-cash stock-based compensation expense associated with the hertz global holdings , inc. stock incentive plan ( “ stock incentive plan ” ) the hertz global holdings , inc. director stock incentive plan ( “ director plan ” ) and the hertz global holdings , inc. 2008 omnibus incentive plan ( “ omnibus plan ” ) are pushed down from hertz holdings and recorded on the books at the hertz level . see note 8 , `` stock-based compensation , `` to the notes to our consolidated financial statements included in this annual report under the caption item 8 , `` financial statements and supplementary data . ” acquisition accounting we record acquisitions resulting in the consolidation of an enterprise using the acquisition method of accounting . under this method , the acquiring company records the assets acquired , including intangible assets that can be identified and named , and liabilities assumed based on their estimated fair values at the date of acquisition . the purchase price in excess of the fair value of the assets acquired and liabilities assumed is recorded as goodwill . if the assets acquired , net of liabilities assumed , are greater than the purchase price paid then a bargain purchase has occurred and we will recognize the gain immediately in earnings . among other sources of relevant information , we may use independent appraisals and actuarial or other valuations to assist in determining the estimated fair values of the assets and liabilities . various assumptions are used in the determination of these estimated fair values including discount rates , market and volume growth rates , expected royalty rates , ebitda margins and other prospective financial information . transaction costs associated with acquisitions are expensed as incurred . recent accounting pronouncements for a discussion of recent accounting pronouncements , see note 2 , `` summary of critical and significant accounting policies , `` — `` recent accounting pronouncements , `` to the notes to our consolidated financial statements included in this annual report under the caption item 8 , `` financial statements and supplementary data . ” item 7a . quantitative and qualitative disclosures about market risk risk management for a discussion of additional risks arising from our operations , including vehicle liability , general liability and property damage insurable risks , see “ item 1—business—risk management ” in this annual report . market risks we are exposed to a variety of market risks , including the effects of changes in interest rates ( including credit spreads ) , foreign currency exchange rates and fluctuations in fuel prices . we manage our exposure to these market risks through our regular operating and financing activities and , when deemed appropriate , through the use of derivative financial instruments . derivative financial instruments are viewed as risk management tools and have not been used for speculative or trading purposes . in addition , derivative financial instruments are entered into with a diversified group of major financial institutions in order to manage our exposure to counterparty nonperformance on such instruments . interest rate risk we have a significant amount of debt with a mix of fixed and variable rates of interest . story_separator_special_tag administration fees and service revenue attributable to the company 's donlen operations are recognized as services are rendered and any subscription fees are recognized ratably over the subscription life . cash and cash equivalents cash and cash equivalents include cash on hand and highly liquid investments with an original maturity of three months or less . restricted cash and cash equivalents restricted cash and cash equivalents includes cash and cash equivalents that are not readily available for the company 's normal disbursements . restricted cash and cash equivalents are restricted primarily for the purchase of revenue earning vehicles and other specified uses under the company 's fleet debt facilities , for its like-kind exchange program ( `` lke program `` ) and to satisfy certain of its self-insurance regulatory reserve requirements . these funds are primarily held in highly rated money market funds with investments primarily in government and corporate obligations . receivables receivables are stated net of allowances and primarily represent credit extended to car manufacturers and customers that satisfy defined credit criteria . the estimate of the allowance for doubtful accounts is based on the company 's historical experience and its judgment as to the likelihood of ultimate payment . actual receivables are written-off against the allowance for doubtful accounts when the company determines the balance will not be collected . estimates for future credit memos are based on historical experience and are reflected as reductions to revenue , while bad debt expense is reflected as a component of `` direct operating `` in the consolidated statements of operations . property and equipment property and equipment are stated at cost and are depreciated utilizing the straight-line method over the estimated useful lives of the related assets . useful lives are as follows : buildings 5 to 50 years furniture and fixtures 1 to 15 years service cars and service equipment 1 to 13 years leasehold improvements the lesser of the economic life or the lease term 87 hertz global holdings , inc. and subsidiaries notes to consolidated financial statements ( continued ) the company follows the practice of charging maintenance and repairs , including the cost of minor replacements , to maintenance expense . costs of major replacements of units of property are capitalized to property and equipment accounts and depreciated . fair value measurements generally accepted accounting principles define fair value as the price that would be received to sell an asset or be paid to transfer a story_separator_special_tag the assumed volatility for our stock is based on our historical stock price data . the assumed dividend yield is zero . the risk-free interest rate is the implied zero-coupon yield for u.s. treasury securities having a maturity approximately equal to the expected term of the options , as of the grant dates . the non-cash stock-based compensation expense associated with the hertz global holdings , inc. stock incentive plan ( “ stock incentive plan ” ) the hertz global holdings , inc. director stock incentive plan ( “ director plan ” ) and the hertz global holdings , inc. 2008 omnibus incentive plan ( “ omnibus plan ” ) are pushed down from hertz holdings and recorded on the books at the hertz level . see note 8 , `` stock-based compensation , `` to the notes to our consolidated financial statements included in this annual report under the caption item 8 , `` financial statements and supplementary data . ” acquisition accounting we record acquisitions resulting in the consolidation of an enterprise using the acquisition method of accounting . under this method , the acquiring company records the assets acquired , including intangible assets that can be identified and named , and liabilities assumed based on their estimated fair values at the date of acquisition . the purchase price in excess of the fair value of the assets acquired and liabilities assumed is recorded as goodwill . if the assets acquired , net of liabilities assumed , are greater than the purchase price paid then a bargain purchase has occurred and we will recognize the gain immediately in earnings . among other sources of relevant information , we may use independent appraisals and actuarial or other valuations to assist in determining the estimated fair values of the assets and liabilities . various assumptions are used in the determination of these estimated fair values including discount rates , market and volume growth rates , expected royalty rates , ebitda margins and other prospective financial information . transaction costs associated with acquisitions are expensed as incurred . recent accounting pronouncements for a discussion of recent accounting pronouncements , see note 2 , `` summary of critical and significant accounting policies , `` — `` recent accounting pronouncements , `` to the notes to our consolidated financial statements included in this annual report under the caption item 8 , `` financial statements and supplementary data . ” item 7a . quantitative and qualitative disclosures about market risk risk management for a discussion of additional risks arising from our operations , including vehicle liability , general liability and property damage insurable risks , see “ item 1—business—risk management ” in this annual report . market risks we are exposed to a variety of market risks , including the effects of changes in interest rates ( including credit spreads ) , foreign currency exchange rates and fluctuations in fuel prices . we manage our exposure to these market risks through our regular operating and financing activities and , when deemed appropriate , through the use of derivative financial instruments . derivative financial instruments are viewed as risk management tools and have not been used for speculative or trading purposes . in addition , derivative financial instruments are entered into with a diversified group of major financial institutions in order to manage our exposure to counterparty nonperformance on such instruments . interest rate risk we have a significant amount of debt with a mix of fixed and variable rates of interest .
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | debt , '' to the notes to our consolidated financial statements included in this annual report under the caption item 8 , `` financial statements and supplementary data. ” we have assessed our exposure to changes in interest rates by analyzing the sensitivity to our earnings assuming various changes in market interest rates . assuming a hypothetical increase of one percentage point in interest rates 71 hertz global holdings , inc. and subsidiaries item 7a . quantitative and qualitative disclosures about market risk ( continued ) on our debt portfolio and cash equivalents and investments as of december 31 , 2015 , our pre-tax earnings would decrease by an estimated $ 74 million over a twelve-month period . from time to time , we may enter into interest rate swap agreements and or interest rate cap agreements to manage interest rate risk and our mix of fixed and floating rate debt . see note 13 , `` financial instruments , '' to the notes to our consolidated financial statements included in this annual report under the caption item 8 , `` financial statements and supplementary data. ” consistent with the terms of certain agreements governing the respective debt obligations , we may be required to hedge a portion of the floating rate interest exposure under the various debt facilities to provide protection in respect of such exposure .
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on april 2 , 2015 , we amended our complaint against the fuchs companies to add additional unfair competition and lanham act claims and to add additional affiliated parties . as of april 28 , 2018 , discovery has been closed , and the parties are briefing summary judgment . we incurred legal fees of $ 8.1 million , $ 11.0 million and $ 9.9 million in fiscal 2018 , fiscal 2017 and fiscal 2016 , respectively , related to the lawsuits . these amounts are included in the selling and administrative expenses in the interface segment . 13 results of operations results of operations for the fiscal year ended april 28 , 2018 , as compared to the fiscal year ended april 29 , 2017 . consolidated results below is a table summarizing results for the fiscal years ended : replace_table_token_4_th net sales . consolidated net sales increased by $ 91.8 million , or 11.2 % , to $ 908.3 million for the fiscal year ended april 28 , 2018 , from $ 816.5 million for the fiscal year ended april 29 , 2017 . the automotive segment net sales increased $ 96.5 million , or 15.3 % , to $ 728.7 million for the fiscal year ended april 28 , 2018 , from $ 632.2 million for the fiscal year ended april 29 , 2017 . automotive segment net sales for fiscal 2018 included $ 80.8 million from our newly acquired businesses , pacific insight and procoplast . the interface segment net sales decreased $ 11.6 million , or 9.1 % , to $ 115.8 million for the fiscal year ended april 28 , 2018 , compared to $ 127.4 million for the fiscal year ended april 29 , 2017 . the power products segment net sales increased $ 6.9 million , or 12.3 % , to $ 63.2 million for the fiscal year ended april 28 , 2018 , compared to $ 56.3 million for the fiscal year ended april 29 , 2017 . translation of foreign operations ' net sales for the fiscal year ended april 28 , 2018 increased net sales by $ 13.1 million , or 1.4 % , compared to the average currency rates in the fiscal year ended april 29 , 2017 , primarily due to the strengthening of the euro and chinese yuan as compared to the u.s. dollar . cost of products sold . consolidated cost of products sold increased $ 70.5 million , or 11.8 % , to $ 668.7 million for the fiscal year ended april 28 , 2018 , compared to $ 598.2 million for the fiscal year ended april 29 , 2017 . consolidated cost of products sold as a percentage of net sales increased to 73.6 % for fiscal 2018 , compared to 73.3 % for fiscal 2017 . the automotive segment cost of products sold for fiscal 2017 included $ 1.0 million of commodity pricing adjustments and the favorable reversal of accruals of $ 1.0 million related to resolved customer commercial issues . the automotive segment costs 14 of products sold as a percentage of net sales for fiscal 2018 increased primarily due to unfavorable sales mix related to our newly acquired businesses , the inclusion of $ 0.8 million of purchase accounting adjustments related to our new acquisitions , pricing reductions on certain products and the unfavorable currency impact due to the strengthening of the mexican peso during the period as compared to the u.s. dollar . the interface segment cost of products sold as a percentage of net sales decreased , primarily due to favorable sales mix , partially offset with lower sales volumes . the power products segment cost of products sold as a percentage of net sales decreased primarily due to higher sales volumes , partially offset by the higher cost of copper . the other segment experienced lower costs of products sold primarily due to a shuttered business which was closed at the end of fiscal 2017 , partially offset with increased research and development initiatives for the medical devices business . gross profit . consolidated gross profit increased $ 21.3 million , or 9.8 % , to $ 239.6 million for the fiscal year ended april 28 , 2018 , as compared to $ 218.3 million for the fiscal year ended april 29 , 2017 . gross margins as a percentage of net sales decreased to 26.4 % for the fiscal year ended april 28 , 2018 , compared to 26.7 % for the fiscal year ended april 29 , 2017 . the automotive segment gross margins as a percentage of net sales for fiscal 2017 were favorably impacted by $ 1.0 million of commodity pricing adjustments and the reversal of accruals of $ 1.0 million related to resolved customer commercial issues . the automotive segment gross margins as a percentage of net sales for fiscal 2018 were adversely impacted by unfavorable sales mix related to our new acquisitions , $ 0.8 million of one-time purchase accounting adjustments and the unfavorable currency impact due to the strengthening of the mexican peso during the period as compared to the u.s. dollar . the interface segment gross margins as a percentage of net sales for fiscal 2018 increased primarily due to favorable sales mix , partially offset with lower sales volumes and price reductions on certain products . the power products segment gross margins as a percentage of net sales increased primarily due to higher sales volumes , partially offset by the higher cost of copper . selling and administrative expenses . selling and administrative expenses increased $ 10.5 million , or 10.0 % , to $ 115.7 million for the fiscal year ended april 28 , 2018 , compared to $ 105.2 million for the fiscal year ended april 29 , 2017 . story_separator_special_tag power products segment cost of products sold increased $ 4.8 million , or 11.7 % , to $ 46.0 million for the fiscal year ended april 28 , 2018 , compared to $ 41.2 million for the fiscal year ended april 29 , 2017 . the power products segment cost of products sold as a percentage of net sales decreased to 72.8 % for the fiscal year ended april 28 , 2018 , from 73.2 % for the fiscal year ended april 29 , 2017 . the decrease primarily relates to higher sales volumes , partially offset by the higher cost of copper . gross profit . power products segment gross profit increased $ 2.1 million , or 13.9 % , to $ 17.2 million for the fiscal year ended april 28 , 2018 , compared to $ 15.1 million for the fiscal year ended april 29 , 2017 . gross margins as a percentage of net sales increased to 27.2 % for the fiscal year ended april 28 , 2018 from 26.8 % for the fiscal year ended april 29 , 2017 . the increase primarily relates to higher sales volumes , partially offset by the higher cost of copper . selling and administrative expenses . selling and administrative expenses decreased $ 0.4 million , or 11.1 % , to $ 3.2 million for the fiscal year ended april 28 , 2018 , compared to $ 3.6 million for the fiscal year ended april 29 , 2017 . selling and administrative expenses as a percentage of net sales decreased to 5.1 % for the year ended april 28 , 2018 , from 6.4 % for the year ended april 29 , 2017 , due to lower stock award amortization expense for our long-term incentive program and lower legal expenses . 19 income from operations . power products segment income from operations increased $ 2.5 million , or 21.7 % , to $ 14.0 million for the fiscal year ended april 28 , 2018 , compared to $ 11.5 million for the fiscal year ended april 29 , 2017 , due primarily to increased sales volumes , lower stock award amortization expense for our long-term incentive program and lower legal expenses , partially offset with the higher cost of copper . other segment results below is a table summarizing results for the fiscal years ended : replace_table_token_8_th net sales . the businesses in this segment were medical devices and inverters and battery systems . the inverters and battery systems business was shuttered at the end of fiscal 2017 due to adverse business conditions . both businesses had minimal net sales in the fiscal years ended april 28 , 2018 and april 29 , 2017 , respectively , due to newly launched products . cost of products sold . other segment cost of products sold was $ 3.8 million for the fiscal year ended april 28 , 2018 , compared to $ 6.5 million for the fiscal year ended april 29 , 2017 . the decrease primarily relates to the shuttered business that was closed at the end of fiscal 2017. the decrease was partially offset by the vertical manufacturing integration of some key components in medical device products and research efforts to expand the product offerings . gross profit . the other segment gross profit was a loss of $ 3.5 million and $ 6.2 million for the fiscal years ended april 28 , 2018 and april 29 , 2017 , respectively . the decreased loss primarily relates to the shuttered business , partially offset with increased research and development initiatives for medical devices . selling and administrative expenses . selling and administrative expenses increased $ 1.7 million , or 27.4 % , to $ 7.9 million for the fiscal year ended april 28 , 2018 , compared to $ 6.2 million for the fiscal year ended april 29 , 2017 . fiscal 2017 includes $ 0.3 million of selling and administrative expenses for our inverter and battery systems business , which was closed at the end of fiscal 2017. the increase in fiscal 2018 is primarily due to higher investment in sales and marketing , clinical resources and professional services in our medical device business , partially offset with lower selling and administrative expenses related to the shuttered business . loss from operations the other segment loss from operations decreased $ 1.0 million to $ 11.4 million for the fiscal year ended april 28 , 2018 , compared to $ 12.4 million for the fiscal year ended april 29 , 2017 . the decreased loss relates to the closure of the inverter and battery system business at the end of fiscal 2017 , partially offset by higher outside professional fees , research and development and marketing expenses in fiscal 2018 . 20 results of operations for the fiscal year ended april 29 , 2017 , as compared to the fiscal year ended april 30 , 2016 . consolidated results below is a table summarizing results for the fiscal years ended : replace_table_token_9_th net sales . consolidated net sales increased $ 7.4 million , or 0.9 % , to $ 816.5 million for the fiscal year ended april 29 , 2017 , from $ 809.1 million for the fiscal year ended april 30 , 2016. the automotive segment 's net sales increased $ 17.9 million , or 2.9 % , to $ 632.2 million for fiscal 2017 , from $ 614.3 million for fiscal 2016. the interface segment 's net sales decreased $ 13.4 million , or 9.5 % , to $ 127.4 million for fiscal 2017 , compared to $ 140.8 million for fiscal 2016. the power products segment 's net sales increased $ 2.8 million , or 5.2 % , to $ 56.3 million for fiscal 2017 , compared to $ 53.5 million for fiscal 2016. translation of foreign operations ' net sales for fiscal 2017 decreased net sales by $ 5.5 million , or 0.7 % ,
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | net cash provided by operating activities decreased $ 27.4 million to $ 117.8 million for fiscal 2018 , compared to $ 145.2 million for fiscal 2017 , primarily due to a decrease in our net income , adjusted for depreciation , amortization , deferred tax expense , stock-based compensation and the provision for bad debt , partially offset by the changes in operating assets and liabilities . the change in deferred tax expense resulted primarily from the re-measurement of deferred tax assets due to the enactment of u.s. tax reform . for fiscal 2018 , net changes in operating assets and liabilities resulted in cash provided of $ 42.8 million , primarily due to an increase in accounts payable and other expenses , a decrease in prepaid expenses and other assets and the timing of receivable collections , partially offset by an increase in inventory levels . the change in accounts payable and other expenses was driven by the enactment of u.s. tax reform , specifically from the deemed repatriation of foreign earnings . any taxes stemming from the deemed repatriation of foreign earnings are payable over an eight-year period . for fiscal 2017 , net changes in operating assets and liabilities resulted in cash provided of $ 19.3 million , primarily due to an increase in accounts payable and other expenses , a decrease in inventory levels and the timing of receivable collections , partially offset by an increase in prepaid expenses . operating activities — fiscal 2017 compared to fiscal 2016 net cash provided by operating activities increased $ 34.5 million to $ 145.2 million for fiscal 2017 , compared to $ 110.7 million for fiscal 2016 , primarily due to higher net income , the changes in deferred income taxes and the changes in operating assets and liabilities .
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we intend to continue to take a disciplined approach in evaluating new opportunities related to potential acquisition of additional ethanol plants by considering whether the plants fit within the design , engineering and geographic criteria we have developed . in our marketing and distribution segment , our strategy is to renew existing marketing contracts , as well as enter new contracts with other ethanol producers . we also intend to pursue opportunities to develop or acquire additional grain elevators and agronomy businesses , specifically those located near our ethanol plants . we believe that owning additional agribusiness operations in close proximity to our ethanol plants enables us to strengthen relationships with local corn producers , allowing us to source corn more effectively and at a lower average cost . we also plan to continue to grow our downstream access to customers and are actively seeking new marketing opportunities with other ethanol producers . we continue our support of the bioprocess algae joint venture , which is focused on developing technology to grow and harvest algae , which consume carbon dioxide , in commercially viable quantities . construction of phase ii was completed and the grower harvesters bioreactors were successfully started up in january 2011. phase ii allows for verification of growth rates , energy balances and operating expenses , which are considered to be some of the key steps to commercialization . the cost of the phase ii project was shared by the joint venture partners . as part of the phase ii funding , we increased our ownership in bioprocess algae to 35 % . during the third quarter of 2011 , bioprocess algae constructed an outdoor grower harvester system next to our shenandoah ethanol plant , which is successfully producing algae . bioprocess algae successfully completed its first round of algae-based poultry feed trials , in conjunction with the university of illinois . the algae strains produced by the grower harvester system for the feed trials demonstrated high energy and protein content that was readily available , similar to other high value feed products used in the feeding of poultry today . bioprocess algae broke ground on a five acre algae farm in the first quarter of 2012 at the same location . if we and the other bioprocess algae members determine that the venture can achieve the desired economic performance from the five acre farm , a build-out of 400 acres of grower harvester reactors will be considered . the cost of such a build-out is estimated at $ 40 million to $ 60 million and could take up to a year to complete . funding for bioprocess algae for such a project would come from a variety of sources including current partners , new equity investors , debt financing or a combination thereof . if a decision was made to replicate such a 400 acre algae farm at all of our ethanol plants , we estimate that the required investment could range from $ 300 million to $ 500 million . bioprocess algae currently is exploring potential algae markets including animal feeds , nutraceuticals and biofuels . industry factors affecting our results of operations variability of commodity prices . our operations and our industry are highly dependent on commodity prices , especially prices for corn , ethanol , distillers grains and natural gas . because the market prices of these commodities are not always 33 correlated , at times ethanol production may be unprofitable . as commodity price volatility poses a significant threat to our margin structure , we have developed a risk management strategy focused on locking in favorable operating margins when they are available . we continually monitor market prices of corn , natural gas and other input costs relative to the prices for ethanol and distillers grains at each of our production facilities . we create offsetting positions by using a combination of derivative instruments , fixed-price purchases and sales contracts , or a combination of strategies within strict limits . our primary focus is not to manage general price movements of individual commodities , for example to minimize the cost of corn consumed , but rather to lock in favorable profit margins whenever possible . by using a variety of risk management tools and hedging strategies , including our internally-developed real-time margin management system , we believe we are able to maintain a disciplined approach to risk . there may be periods of time that , due to the variability of commodity prices and compressed margins identified by our risk management system , we make a decision to reduce or cease ethanol production operations at certain of our ethanol plants . in the first quarter of 2012 , we have reduced production volumes at two of our ethanol plants by approximately 30 % , or about 5 % of our total production , in direct response to unfavorable operating margins . in response to relatively strong margins in the fourth quarter of 2011 , the ethanol industry increased production and ended the year with excess inventories , which has adversely affected the margin environment in the beginning of 2012. reduced availability of capital . some ethanol producers have faced financial distress over the past few years , culminating with bankruptcy filings by several companies . this , in combination with continued volatility in the capital markets has resulted in reduced availability of capital for the ethanol industry generally . in this market environment , we may experience limited access to incremental financing . legislation . federal and state governments have enacted numerous policies , incentives and subsidies to encourage the usage of domestically-produced alternative fuel solutions . story_separator_special_tag effective january 1 , 2012 , we will be required to adopt the third phase of amended guidance in asc topic 820 , fair value measurements and disclosures . the purpose of the amendment is to achieve common fair value measurement and disclosure requirements by improving comparability of fair value measurements presented and disclosed in financial statements prepared in accordance with gaap and those prepared in conformity with international financial reporting standards , or ifrs . the amended guidance clarifies the application of existing fair value measurement requirements and requires additional disclosure for level 3 measurements regarding the sensitivity of fair value to changes in unobservable inputs and any interrelationships between those inputs . we currently would not be impacted by the additional disclosure requirements as we do not have any recurring level 3 measurements . effective january 1 , 2012 , we will be required to adopt the amended guidance in asc topic 220 , comprehensive income . this accounting standards update , which helps to facilitate the convergence of gaap and ifrs , is aimed at increasing the prominence of other comprehensive income in the financial statement by eliminating the option to present other comprehensive income in the statement of stockholders ' equity , and requiring comprehensive income to be reported in either a single continuous statement or in two separate but consecutive statements reporting net income and other comprehensive income . this amended guidance will be implemented retroactively . we have determined that the changes to the accounting standards will affect the presentation of consolidated financial information but will not have a material effect on the company 's financial position or results of operations . effective january 1 , 2012 , we will be permitted to adopt the amended guidance in asc topic 350 , intangibles goodwill and other . the amended guidance permits an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test . the more-likely-than-not threshold is defined as having a likelihood of more than 50 percent . we have determined that the changes to the accounting standards will not impact our disclosure or reporting requirements . 37 off-balance sheet arrangements we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our consolidated financial condition , results of operations or liquidity . components of revenues and expenses revenues . in our ethanol production segment , our revenues are derived primarily from the sale of ethanol and distillers grains , which is a co-product of the ethanol production process . in our corn oil production segment , our revenues are derived from the sale of corn oil , which is extracted from the whole stillage process immediately prior to the production of distillers grains . in our agribusiness segment , the sale of grain , fertilizer and petroleum products are our primary sources of revenue . in our marketing and distribution segment , the sale of ethanol , distillers grains and corn oil that we market for our nine ethanol plants and the sale of ethanol we market for the ethanol plants owned by third parties represent our primary sources of revenue . revenues also include net gains or losses from derivatives . cost of goods sold . cost of goods sold in our ethanol production and corn oil production segments includes costs for direct labor , materials and certain plant overhead costs . direct labor includes all compensation and related benefits of non-management personnel involved in the operation of our ethanol plants . plant overhead costs primarily consist of plant utilities , plant depreciation and outbound freight charges . our cost of goods sold is mainly affected by the cost of ethanol , corn , natural gas and transportation . in these segments , corn is our most significant raw material cost . we purchase natural gas to power steam generation in our ethanol production process and to dry our distillers grains . natural gas represents our second largest cost in this business segment . cost of goods sold also includes net gains or losses from derivatives . grain , fertilizer and petroleum acquisition costs represent the primary components of cost of goods sold in our agribusiness segment . grain inventories , forward purchase contracts and forward sale contracts are valued at market prices , where available , or other market quotes adjusted for differences , primarily transportation , between the exchange-traded market and the local markets on which the terms of the contracts are based . changes in the market value of grain inventories , forward purchase and sale contracts , and exchange-traded futures and options contracts are recognized in earnings as a component of cost of goods sold . in our marketing and distribution segment , purchases of ethanol , distillers grains and corn oil represent the largest components of cost of goods sold . transportation expense represents an additional major component of our cost of goods sold in this segment . transportation expense includes rail car leases , freight and shipping of our ethanol and co-products , as well as costs incurred in storing ethanol at destination terminals . selling , general and administrative expenses . selling , general and administrative expenses are recognized at the operating segment level , as well as at the corporate level . these expenses consist of employee salaries , incentives and benefits ; office expenses ; board fees ; and professional fees for accounting , legal , consulting , and investor relations activities . personnel costs , which include employee salaries , incentives and benefits , are the largest single category of expenditures in selling , general and administrative expenses . we refer to selling , general and administrative expenses that are not allocable to a
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | debt for additional information related to our debt , see note 10 debt included herein as part of the notes to consolidated financial statements . ethanol production segment each of our ethanol production segment subsidiaries have credit facilities with lender groups that provide for term and revolving term loans to finance construction and operation of the production facilities . the green plains bluffton loan is comprised of a $ 70.0 million amortizing term loan and a $ 20.0 million revolving term loan . at december 31 , 2011 , $ 48.0 million related to the term loan was outstanding , along with the entire revolving term loan . the term loan requires monthly principal payments of approximately $ 0.6 million . the loans mature on november 19 , 2013. the green plains central city loan is comprised of a $ 55.0 million amortizing term loan and a $ 30.5 million revolving term loan as well as a revolving credit supplement of up to $ 11.0 million . at december 31 , 2011 , $ 46.6 million related to the term loan was outstanding , along with $ 24.7 million on the revolving term loan . the term loan requires monthly payments of $ 0.6 million . the term loan and the revolving term loan mature on july 1 , 2016 and the revolver matures on june 29 , 2012 with an option to renew . the green plains holdings ii loan is comprised of a $ 34.1 million amortizing term loan , a $ 42.6 million revolving term loan and a $ 15.0 million revolving line of credit loan . at december 31 , 2011 , $ 27.9 million was outstanding on the term loan , along with $ 35.7 million on the revolving term loan and $ 15.0 million on the revolving line of credit loan . the term loan requires quarterly principal payments of $ 1.5 million . the revolving term loan requires semi-annual principal payments of approximately $ 2.7 million .
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in february 2018 , the head office of german statutory health insurance , or shi , spitzenverband ( “ gkv ” ) confirmed their decision to list the rewalk personal 6.0 exoskeleton system in the german medical device directory . this decision means that rewalk will be listed among all medical devices for compensation , which shi providers can procure for any approved beneficiary on a case-by-case basis . we have incurred net losses and negative cash flow from operations since inception and anticipate this to continue in the near term . in 2019 , we will continue to evaluate spending to reduce where possible while continuing to focus resources on regulatory activities to obtain clearance for the restore device in the united states and europe , activities to commercialize the restore device for stroke patients by the third quarter of 2019 and our rewalk personal device , achieving additional commercial reimbursement coverage decisions for our rewalk personal device , and activities related to our fda 522 postmarket study . 62 components of our statements of operations revenues we currently rely , and in the future will rely , on sales and rentals of our rewalk systems and related service contracts and extended warranties for our revenue . our revenue is generated from a combination of third-party payors , institutions and self-payors , including private and government employers . payments for our products by third party payors have been made primarily through case-by-case determinations . third-party payors include , without limitation , private insurance plans and managed care programs , government programs including the us department of veterans affairs , and worker 's compensation payments . we expect that third-party payors will be an increasingly important source of revenue in the future . in december 2015 , the va issued a national policy for the evaluation , training and procurement of rewalk personal exoskeleton systems for all qualifying veterans across the united states . the va policy is the first national coverage policy in the united states for qualifying individuals who have suffered spinal cord injury . all of our rewalk systems sold until the end of the previous year are covered by a two-year warranty from the date of purchase , which is included in the purchase price . we offer customers the ability to purchase , any time during the initial warranty period , an extended warranty for up to three additional years . both warranties cover all elements of the rewalk system , including the batteries , other than normal wear and tear . in the beginning of 2018 we updated our service policy for new devices sold to include a five-year warranty . revenues are presented net of the amounts of any provision we record for expected future product returns . cost of revenues and gross profit ( loss ) cost of revenue consists primarily of systems purchased from our outsourced manufacturer , sanmina , salaries , personnel costs including non-cash share based compensation , associated with manufacturing and inventory management , training and inspection , warranty and service costs , shipping and handling and manufacturing startup and transition costs . prior to the first quarter of 2014 , when we completed the manufacturing transition to sanmina , cost of revenues also included costs of components , compensation related costs associated with manufacturing and costs to transition manufacturing to sanmina . cost of revenues also includes royalties and expenses related to royalty-bearing research and development grants and sales and marketing grants . our gross profit ( loss ) and gross margin as a percentage of sales is influenced by a number of factors , including primarily the volume and price of our products sold and fluctuations in our cost of revenues . certain one-time expenses also impact gross margins including a 2014 expense relating to the early settlement , at a discount , of a royalty-bearing grant to the bird foundation and 2015 and 2016 costs to transition manufacturing to the rewalk personal 6.0 model . we expect gross profit ( loss ) as a percentage of sales will improve in the future as we increase our sales volumes and decrease the product manufacturing costs . operating expenses research and development expenses , net research and development expenses , net consist primarily of salaries , related personnel costs including share-based compensation , supplies , materials and expenses related to product design and development , clinical studies , regulatory submissions , patent costs , sponsored research costs and other expenses related to our product development and research programs . we expense all research and development expenses as they are incurred . we believe that continued investment in research and development is crucial to attaining our strategic product objectives . research and development expenses are presented net of the amount of any grants we receive for research and development in the period in which we receive the grant . we previously received grants and other funding from the bird foundation and the israel innovation authority , or “ iia ” ( formerly known as the office of the chief scientist ) . certain of those grants require us to pay royalties on sales of rewalk systems , which are recorded as cost of revenues . we may receive additional funding from these entities or others in the future . see “ grants and other funding ” below . sales and marketing expenses our sales and marketing expenses consist primarily of salaries , related personnel costs including share-based compensation for sales , marketing and reimbursement personnel , travel , marketing and public relations activities and consulting costs . also included in the sales and marketing expenses are the costs associated with our reimbursement activities in the united states and germany . 63 general and administrative expenses our general and administrative expenses consist primarily of salaries , related personnel costs including share-based compensation for our administrative , finance , and general management personnel , professional services and insurance . story_separator_special_tag we account for income taxes in accordance with asc topic 740 , “ income taxes , ” or asc topic 740. asc topic 740 prescribes the use of an asset and liability method whereby deferred tax asset and liability account balances are determined based on the difference between book value and the tax bases of assets and liabilities and carryforward tax losses . deferred taxes are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse . we exercise judgment and provide a valuation allowance , if necessary , to reduce deferred tax assets to their estimated realizable value if it is more likely than not that some portion or all of the deferred tax asset will not be realized . we have established a full valuation allowance with respect to our deferred tax assets . asu 2015-17 , “ balance sheet classification of deferred taxes ” provides presentation requirements to classify deferred tax assets and liabilities , along with any related valuation allowance , are classified as non-current on the balance sheet . we account for uncertain tax positions in accordance with asc 740 and recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities , based on the technical merits of the position . the tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50 % likelihood of being realized upon ultimate settlement . accordingly , we report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return . we recognize interest and penalties , if any , related to unrecognized tax benefits in tax expense . new and revised financial accounting standards the jobs act permits emerging growth companies such as us to delay adopting new or revised accounting standards until such time as those standards apply to private companies . we have irrevocably elected not to avail ourselves of this and , therefore , we are subject to the same new or revised accounting standards as other public companies that are not emerging growth companies . recently issued and adopted accounting pronouncements a discussion of recent accounting pronouncements is included in note 2u , new accounting pronouncements to our consolidated financial statements in this annual report . 71 liquidity and capital resources sources of liquidity and outlook since inception , we have funded our operations primarily through the sale of certain of our equity securities and convertible notes to investors in private placements , the sale of our ordinary shares in public offerings and the incurrence of bank debt . as of december 31 , 2018 , the company had cash and cash equivalents of $ 9.5 million . the company has an accumulated deficit in the total amount of $ 152.9 million as of december 31 , 2018 and further losses are anticipated in the development of its business . those factors raise substantial doubt about the company 's ability to continue as a going concern . the ability to continue as a going concern is dependent upon the company obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due . the company intends to finance operating costs over the next twelve months with existing cash on hand , reducing operating spend , issuances under the company 's atm offering program , or other future issuances of equity and debt securities , or through a combination of the foregoing . we will also need to seek additional sources of financing if we require more funds than anticipated during the next 12 months or in later periods . we previously considered the investment agreement with timwell as a potential source of ongoing liquidity . we no longer believe that we can reach an agreement with timwell to close the remaining $ 15.0 million of issuances on the basis of the original understandings reflected in our investment agreement and currently see a significant risk that we will not reach agreement with timwell and realcan on a modification of the original agreement . for more information , see “ timwell private placement ” below . the accompanying consolidated financial statements have been prepared assuming the company will continue as a going concern , which contemplates the realization of assets and liabilities and commitments in the normal course of business . the consolidated financial statements for the year ended december 31 , 2018 do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from uncertainty related to the company 's ability to continue as a going concern . our anticipated primary uses of cash are ( i ) sales , marketing and reimbursement expenses related to market development activities and broadening third-party payor coverage , and ( ii ) research and development costs related to , in the shorter term , our restore device that will assist patients who had stroke , and , in the longer term , developing upon our technological platform to address new medical indications that affect the ability to walk including cerebral palsy , parkinson 's disease and elderly assistance and in the longer term develop our next generation of rewalk with design improvements . our future cash requirements will depend on many factors , including our rate of revenue growth , the expansion of our sales and marketing activities , the timing and extent of our spending on research and development efforts and international expansion . if our current estimates of revenue , expenses or capital or liquidity requirements change or are inaccurate , we may seek to sell additional equity or debt securities , arrange
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | loss on extinguishment of debt loss on extinguishment of debt of $ 313 thousand during 2017 is due to amending of our debt under the loan agreement with kreos , such that $ 3.0 million in principal is now subject to the kreos convertible note . the entry into the kreos convertible note , which decreased the outstanding principal amount under the loan agreement from $ 17.2 million to $ 14.2 million , resulted in extinguishment of debt accounting treatment . for further discussion of the loan agreement with kreos , see “ -liquidity and capital resources ” below and also note 6 to our audited consolidated financial statements below . financial expenses , net our financial expenses , net for 2018 and 2017 were as follows ( in thousands ) : replace_table_token_8_th financial expenses , net , increased by $ 0.2 million , or 8 % during 2018 compared to 2017. this increase is mainly attributable to interest expenses and loss of inducement related to the loan agreement with kreos and its second amendment offset with 2017 extinguishment of debt expenses . for further discussion of the loan agreement with kreos , see “ -liquidity and capital resources ” below and also note 6 to our audited consolidated financial statements below . income tax our income tax for 2018 and 2017 was as follows ( in thousands ) : replace_table_token_9_th income taxes decreased by $ 124 thousand or 104 % during 2018 compared to 2017. this decrease is mainly related to a deferred tax expense in as a result of the tax rate change in the u.s due to the tcja , which increased 2017 tax expenses .
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31 integral to our allowance methodology is the use of a loan grading system whereby all loans are assigned a grade based on the risk profile of each loan . loan grades are initially assigned at origination and are routinely evaluated to determine if grades need to be changed . through our internal credit review function , ongoing credit monitoring , and continuous review of past due trends , loan grades are adjusted by management either to respond to improvements in or deterioration of credit . loan grades are determined based on an evaluation of relevant information about the ability of borrowers to service their debt such as current financial information , historical payment experience , credit documentation , public information , and current economic trends , among other factors . the allowance methodology consists of two parts : an evaluation of loss for specific loans and an evaluation of loss for homogenous pools of loans , commonly referred to as the specific and general valuation allowance . certain loans exhibiting signs of potential credit weakness are evaluated individually for impairment . a loan is considered to be impaired if it is probable that we will not receive substantially all contractual principal and interest payments . the amount of impairment , or specific valuation allowance , is measured by a comparison of the present value of expected future cash flows less selling expenses to the loan 's carrying value , or in the case of collateral dependent loans a comparison to the fair value of the collateral less selling costs . to the extent the carrying value of the loan exceeds the present value of a loan 's expected cash flows less selling expenses , a specific allowance is recorded . if the carrying value is less than the present value of the impaired loan 's expected future cash flows , no specific allowance is recorded however the loan is not included in the determination of the general valuation allowance . as a substantial amount of our loan portfolio is collateralized by real estate , appraisals of the underlying value of property securing loans and discounted cash flow valuations of properties are critical in determining the amount of the allowance required for specific loans . assumptions for appraisals and discounted cash flow valuations are instrumental in determining the value of properties . overly optimistic assumptions or negative changes to assumptions could significantly impact the valuation of a property securing a loan and the related allowance determined . the assumptions supporting such appraisals and discounted cash flow valuations are carefully reviewed by management to determine that the resulting values reasonably reflect amounts realizable on the related loans . the general valuation allowance is determined for loans not determined to be impaired . we segregate our loan portfolio into portfolio segments . these portfolio segments share common characteristics such as the type of loan , its purpose , its underlying collateral , and other risk characteristics . once segregated , these loans are further segregated by loan grade . to calculate the allowance by grade , we apply internally developed loss factors comprised of both quantitative and qualitative considerations . we estimate our loss factors by taking into consideration both quantitative and qualitative aspects that would affect our estimation of probable incurred losses . these aspects include , but are not limited to historical charge-offs ; loan delinquencies and foreclosure trends ; current economic trends and demographic data within our market area , such as unemployment rates and population trends ; current trends in real estate values ; charge-off trends of other comparable institutions ; the results of any internal loan reviews ; loan-to-value ratios ; our historically conservative credit risk policy ; the strength of our underwriting and ongoing credit monitoring function ; and other relevant factors . this evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision based on changes in economic and real estate market conditions . actual loan losses may be significantly more than the allowance for loan losses we have established , which could have a material negative effect on our financial results . see note 1 “ summary of significant accounting policies ” and note 4 “ loans ” to the accompanying consolidated financial statements contained in item 8 for additional discussion on the allowance for loan losses . business combinations . business combinations are accounted for using the acquisition method of accounting . as such , assets acquired , including identified intangible assets , and liabilities assumed are recorded at their fair value , which often involves estimates based on third party valuations , such as appraisals , or internal valuations based on discounted cash flow analyses or other valuation techniques , all of which are inherently subjective . identified intangible assets are amortized based upon the estimated economic benefits to be received , which is also subjective . management will review identified intangible assets for impairment at least annually , or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable , in which case an impairment charge would be recorded . goodwill is subject to impairment testing on at least an annual basis . in addition , goodwill is tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount . our reporting unit for purposes of testing our goodwill for impairment is our banking operations unit , which contains all other activities performed by the company . 32 valuation of goodwill . the testing for impairment of goodwill is a two-step process . the first step in testing for impairment is to determine the fair value of our reporting unit and compare that fair value with the carrying value of the reporting unit ( including goodwill . ) story_separator_special_tag to the best of our knowledge , we have recorded all losses that are both probable and reasonably estimable for the years ended june 30 , 2019 and 2018 . 35 noninterest income . for the year ended june 30 , 2019 , noninterest income increased $ 31 thousand , or 1.9 % , to $ 1.69 million from $ 1.66 million for the year ended june 30 , 2018. gains on the sale of mortgage loans , which totaled $ 122 thousand for the year ended june 30 , 2019 , increased $ 58 thousand compared to $ 64 thousand for the year ended june 30 , 2018. the adoption of new accounting guidelines that require the recognition of the change in fair value of equity securities through the income statement totaled $ 82 thousand for the year ended june 30 , 2019 compared to zero for the year ended june 30 , 2018. mortgage servicing income totaled $ 211 thousand for the year ended june 30 , 2019 compared to $ 244 thousand for the year ended june 30 , 2018. the mortgage servicing income is reducing due to the decreasing size of the loan servicing portfolio . losses on the sale of securities totaled $ 40 thousand for the year ended june 30 , 2019 compared to $ 7 thousand for the year ended june 30 , 2018. gains or losses on the sale of securities are largely market driven . securities were sold at a loss during the year ended june 30 , 2019 so that funds could be more beneficially used to yield higher net earnings going forward . gains on the disposition of purchase credit impaired loans , which totaled $ 64 thousand for the year ended june 30 , 2019 , decreased $ 61 thousand compared to $ 125 thousand for the year ended june 30 , 2018. w e did not have the same opportunities for gains on the disposition of purchase credit impaired loans in the year ending june 30 , 2019 as we did in the year ending june 30 , 2018. noninterest expense . noninterest expense increased $ 84 thousand , or 0.7 % , to $ 12.13 million for the year ended june 30 , 2019 from $ 12.10 million for the year ended june 30 , 2018. salaries and employee benefits increased by $ 355 thousand , or 5.4 % to $ 6.9 million for the year ended june 30 , 2019 from $ 6.6 million for the year ended june 30 , 2018 due to routine increases . occupancy and equipment expenses increased by $ 32 thousand , or 1.9 % to $ 1.75 million for the year ended june 30 , 2019 from $ 1.72 million for the year ended june 30 , 2018 due to routine upgrades and improvements . data processing expenses decreased by $ 97 thousand , or 9.8 % to $ 893 thousand for the year ended june 30 , 2019 from $ 990 thousand for the year ended june 30 , 2018 due to fewer routine upgrades in the current year as well as more favorable third-party service pricing . professional and supervisory fee expenses decreased by $ 364 thousand , or 36.2 % to $ 642 thousand for the year ended june 30 , 2019 from $ 1.0 million for the year ended june 30 , 2018 primarily due to reduced audit and legal expenses . for the year ended june 30 , 2019 , we recognized an expense for the decrease in value of the loan servicing asset of $ 225 thousand compared to $ 48 thousand for the year ended june 30 , 2018. when mortgage loans are sold with servicing retained , servicing rights are initially recorded at fair value . these servicing rights are then measured at each reporting date and changes are recorded as “ change in loan servicing asset ” on the consolidated statements of income and comprehensive income . the fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses . foreclosed asset expenses increased by $ 68 thousand , or 188.9 % to $ 104 thousand for the year ended june 30 , 2019 from $ 36 thousand for the year ended june 30 , 2018. in the prior year , we recognized more gains from the sale of properties to offset foreclosure expenses than in the current year . changes in all other noninterest expense items were due to normal periodic fluctuations . income tax expense . income tax expense decreased $ 831 thousand , or 48.7 % , to $ 874 thousand for the year ended june 30 , 2019 from $ 1.7 million for the year ended june 30 , 2018. the decrease was primarily due to a reduction in the federal corporate tax rate from 35 % to 21 % along with a $ 973 thousand adjustment to the company 's deferred tax asset in the prior year as a result of the tax cuts and jobs act that was enacted on december 22 , 2017. our effective income tax rate was 19 % and 36 % for the years ended june 30 , 2019 and 2018 , respectively . analysis of net interest income net interest income represents the difference between the income we earn on interest-earning assets and the interest expense we pay on interest-bearing liabilities . net interest income also depends upon the relative amounts of interest-earning assets and interest-bearing liabilities and the interest rates earned or paid on them . 36 the following table sets forth average balance sheets , average yields and costs , and certain other information at the dates and for the periods indicated . all average balances are daily average balances . nonaccrual loans were included in the computation of average balances , but have been reflected in the tables as loans carrying
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources our primary sources of funds are deposits and the proceeds from principal and interest payments on loans and investment securities . while maturities and scheduled amortization of loans and securities are predictable sources of funds , deposit flows and mortgage prepayments are greatly influenced by general interest rates , economic conditions and competition . we generally manage the pricing of our deposits to be competitive within our market and to increase core deposit relationships . our cash flows are derived from operating activities , investing activities and financing activities . net cash flows provided by operating activities were $ 5.8 million for the year ended june 30 , 2019 and $ 6.4 million for the year ended june 30 , 2018. net cash flows used in investing activities were $ 11.4 million for the year ended june 30 , 2019 and $ 22.2 million for the year ended june 30 , 2018. net cash flows provided by financing activities for the year ended june 30 , 2019 were $ 32.4 million and $ 4.9 million for the year ended june 30 , 2018. our most liquid assets are cash and short-term investments . the levels of these assets are dependent on our operating , financing , lending , and investing activities during any given period . at june 30 , 2019 and 2018 , cash and short-term investments totaled $ 36.7 million and $ 9.9 million , respectively . we may also utilize as sources of funds the sale of securities available-for-sale , federal funds purchased , federal home loan bank of atlanta advances and other borrowings . at june 30 , 2019 and 2018 , we had outstanding commitments to originate loans of $ 7.7 million and $ 23.1 million , respectively .
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these actions included adjustments to workforce , reduced purchases of raw materials and reductions in selling , general , and administrative expenses . the company continues to review its internal processes to identify inefficiencies and cost reduction opportunities . the company will continue to scrutinize its relationships with external suppliers to ensure it is achieving the highest quality materials and services at the most competitive cost . results of operations year ended september 30 , 2013 compared with the year ended september 30 , 2012 net revenues for the year ended september 30 , 2013 were $ 48.9 million , a decrease of 22.5 % or $ 14.3 million from $ 63.2 million for the year ended september 30 , 2012. the decrease in net revenues was the result of the successful completion of a large asphalt plant delivered in fiscal 2012 and continued weak domestic road-building activity . in addition , canadian sales declined as the canadian government 's infrastructure spend under the building canada plan nears completion . gross margins for fiscal 2013 were $ 11.0 million , or 22.5 % of net revenues , versus $ 12.0 million in 2012 , or 19.0 % of net revenues . the gross margin increase of 350 basis points in 2013 was due to reduced material costs and improved manufacturing efficiencies . 16 product engineering and development expenses decreased $ 626,000 or 26.8 % to $ 1,713,000 in 2013 in line with the decrease in revenues . selling , general and administrative expenses decreased $ 2,586,000 or 27.8 % to $ 6,712,000 as a result of reduced commissions and headcount reductions related to the lower revenues , and lower legal and advertising expenses . the company has historically participated in the construction industry 's triennial conexpo-con/agg show ( conexpo ) . the costs associated with the company 's full-scale conexpo exhibits have been significant . during fiscal 2013 , the company reduced its estimated advertising expenses for the 2014 conexpo show by $ 750,000 as management deemed it prudent to curtail such expenditures due to the current condition of the highway construction industry . fiscal 2013 had operating income of $ 2,578,000 versus $ 393,000 in fiscal 2012. operating margins for fiscal 2013 were 5.3 % compared with 0.6 % in fiscal 2012. the improved operating results in 2013 were due to continued improvements in production , lower purchasing costs , reduced product engineering and development expenses , and tight controls on selling , general and administrative expenses . as of september 30 , 2013 and 2012 , the cost basis of the investment portfolio was $ 81.2 million and $ 80.6 million , respectively . $ 2.5 million of cash from operations was transferred into the investment portfolio during fiscal 2012 while $ 2.0 million in cash was transferred from the investment portfolio back into operating cash in fiscal 2013. in each of years ended september 30 , 2013 and 2012 , net investment interest and dividend income ( investment income ) was $ 2.3 million . the net realized and unrealized gains on marketable securities were $ 1.5 million in 2013 versus $ 4.1 million in 2012. total cash and investment balance at september 30 , 2013 was $ 92.7 million compared to the september 30 , 2012 cash and investment balance of $ 84.7 million . the effective income tax rate for fiscal 2013 was a benefit of ( 6.2 % ) versus expense of 34.7 % in fiscal 2012. the company received favorable irs rulings on its research and development tax credits ( r & d credits ) on amended returns filed for tax years 2006 through 2010 ( fiscal years 2007 through 2011 ) . in total , the company received tax refunds of $ 827,000 related to r & d credits for tax years 2006 through 2008 and recorded additional r & d credits of $ 1,302,000 related to tax years 2009 through 2012 ( fiscal years 2010 through 2013 ) . r & d credits of $ 2,129,000 are included in the company 's income tax benefit of ( $ 392,000 ) in the consolidated statement of operations for the year ended september 30 , 2013. of the $ 1,302,000 in r & d credits , $ 497,000 reduced the company 's current federal income taxes payable for the year ended september 30 , 2013 and $ 805,000 is included as r & d credits carry-forwards in the net deferred income and other tax liabilities of ( $ 484,000 ) in the consolidated balance sheet as of september 30 , 2013. the change in the effective income tax rate between years is primarily due to the r & d credits recorded in fiscal 2013 ( see note 6 to consolidated financial statements ) . net income for the year ended september 30 , 2013 was $ 6,725,000 or $ .71 per share versus $ 4,472,000 or $ .47 per share for the year ended september 30 , 2012. story_separator_special_tag reduced by 75 % , and the cost basis of inventories greater than five years old are reduced to zero . inventory is typically reviewed for obsolescence on an annual basis computed as of september 30th , the company 's fiscal year end . if significant known changes in trends , technology or other specific circumstances that warrant consideration occur during the year , then the impact on obsolescence is considered at that time . investments marketable debt and equity securities are categorized as trading securities and are thus marked to market and stated at fair value . fair value is determined using the quoted closing or latest bid prices for level 1 investments and market standard valuation methodologies for level 2 investments . realized gains and losses on investment transactions are determined by specific identification and are recognized as incurred in the consolidated statements of operations . net unrealized gains and losses are reported in the consolidated statements of operations in the current story_separator_special_tag these actions included adjustments to workforce , reduced purchases of raw materials and reductions in selling , general , and administrative expenses . the company continues to review its internal processes to identify inefficiencies and cost reduction opportunities . the company will continue to scrutinize its relationships with external suppliers to ensure it is achieving the highest quality materials and services at the most competitive cost . results of operations year ended september 30 , 2013 compared with the year ended september 30 , 2012 net revenues for the year ended september 30 , 2013 were $ 48.9 million , a decrease of 22.5 % or $ 14.3 million from $ 63.2 million for the year ended september 30 , 2012. the decrease in net revenues was the result of the successful completion of a large asphalt plant delivered in fiscal 2012 and continued weak domestic road-building activity . in addition , canadian sales declined as the canadian government 's infrastructure spend under the building canada plan nears completion . gross margins for fiscal 2013 were $ 11.0 million , or 22.5 % of net revenues , versus $ 12.0 million in 2012 , or 19.0 % of net revenues . the gross margin increase of 350 basis points in 2013 was due to reduced material costs and improved manufacturing efficiencies . 16 product engineering and development expenses decreased $ 626,000 or 26.8 % to $ 1,713,000 in 2013 in line with the decrease in revenues . selling , general and administrative expenses decreased $ 2,586,000 or 27.8 % to $ 6,712,000 as a result of reduced commissions and headcount reductions related to the lower revenues , and lower legal and advertising expenses . the company has historically participated in the construction industry 's triennial conexpo-con/agg show ( conexpo ) . the costs associated with the company 's full-scale conexpo exhibits have been significant . during fiscal 2013 , the company reduced its estimated advertising expenses for the 2014 conexpo show by $ 750,000 as management deemed it prudent to curtail such expenditures due to the current condition of the highway construction industry . fiscal 2013 had operating income of $ 2,578,000 versus $ 393,000 in fiscal 2012. operating margins for fiscal 2013 were 5.3 % compared with 0.6 % in fiscal 2012. the improved operating results in 2013 were due to continued improvements in production , lower purchasing costs , reduced product engineering and development expenses , and tight controls on selling , general and administrative expenses . as of september 30 , 2013 and 2012 , the cost basis of the investment portfolio was $ 81.2 million and $ 80.6 million , respectively . $ 2.5 million of cash from operations was transferred into the investment portfolio during fiscal 2012 while $ 2.0 million in cash was transferred from the investment portfolio back into operating cash in fiscal 2013. in each of years ended september 30 , 2013 and 2012 , net investment interest and dividend income ( investment income ) was $ 2.3 million . the net realized and unrealized gains on marketable securities were $ 1.5 million in 2013 versus $ 4.1 million in 2012. total cash and investment balance at september 30 , 2013 was $ 92.7 million compared to the september 30 , 2012 cash and investment balance of $ 84.7 million . the effective income tax rate for fiscal 2013 was a benefit of ( 6.2 % ) versus expense of 34.7 % in fiscal 2012. the company received favorable irs rulings on its research and development tax credits ( r & d credits ) on amended returns filed for tax years 2006 through 2010 ( fiscal years 2007 through 2011 ) . in total , the company received tax refunds of $ 827,000 related to r & d credits for tax years 2006 through 2008 and recorded additional r & d credits of $ 1,302,000 related to tax years 2009 through 2012 ( fiscal years 2010 through 2013 ) . r & d credits of $ 2,129,000 are included in the company 's income tax benefit of ( $ 392,000 ) in the consolidated statement of operations for the year ended september 30 , 2013. of the $ 1,302,000 in r & d credits , $ 497,000 reduced the company 's current federal income taxes payable for the year ended september 30 , 2013 and $ 805,000 is included as r & d credits carry-forwards in the net deferred income and other tax liabilities of ( $ 484,000 ) in the consolidated balance sheet as of september 30 , 2013. the change in the effective income tax rate between years is primarily due to the r & d credits recorded in fiscal 2013 ( see note 6 to consolidated financial statements ) . net income for the year ended september 30 , 2013 was $ 6,725,000 or $ .71 per share versus $ 4,472,000 or $ .47 per share for the year ended september 30 , 2012. story_separator_special_tag reduced by 75 % , and the cost basis of inventories greater than five years old are reduced to zero . inventory is typically reviewed for obsolescence on an annual basis computed as of september 30th , the company 's fiscal year end . if significant known changes in trends , technology or other specific circumstances that warrant consideration occur during the year , then the impact on obsolescence is considered at that time . investments marketable debt and equity securities are categorized as trading securities and are thus marked to market and stated at fair value . fair value is determined using the quoted closing or latest bid prices for level 1 investments and market standard valuation methodologies for level 2 investments . realized gains and losses on investment transactions are determined by specific identification and are recognized as incurred in the consolidated statements of operations . net unrealized gains and losses are reported in the consolidated statements of operations in the current
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources the company generates capital resources through operations and returns on its investments . the company had no long-term debt outstanding at september 30 , 2013 or 2012. the company does not currently require a credit facility but continues to review and evaluate its needs and options for such a facility . as of september 30 , 2013 , the company has funded $ 352,000 in cash deposits at insurance companies to cover collateral needs . as of september 30 , 2013 , the company had $ 9.6 million in cash and cash equivalents , and $ 83.1 million in marketable securities . the marketable securities are invested through a professional investment management firm . the securities may be liquidated at any time into cash and cash equivalents . the company 's backlog was $ 5.4 million at september 30 , 2013 versus $ 3.4 million at september 30 , 2012. the company 's working capital ( defined as current assets less current liabilities ) was $ 102.8 million at september 30 , 2013 versus $ 96.2 million at september 30 , 2012. the net deferred income and other tax liability decreased $ 490,000 due primarily to an increase in deferred tax assets related to the r & d credits ( refer to note 6 to 17 consolidated financial statements ) . costs and estimated earnings in excess of billings decreased $ 3.4 million as all open percentage-of-completion jobs as of september 30 , 2012 were completed during fiscal 2013 and there were no percentage-of-completion jobs qualifying for revenue recognition as of september 30 , 2013. inventories increased $ 2,208,000 as the company built stock for new orders and anticipated demand in the first and second quarters of fiscal 2014. customer deposits increased $ 1,463,000 on new orders . accrued expenses decreased $ 707,000 primarily due to the reduction in estimated conexpo expenses . cash provided by operations during the year ended september 30 , 2013 was $ 7,394,000. the cash used for investing activities during the year ended september 30 , 2013 of $ 1,198,000 was related to capital expenditures , primarily manufacturing equipment .
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our pipeline of antibody-based product candidates target a number of potential indications including al amyloidosis ( neod001 ) , parkinson 's disease and other related synucleinopathies ( prx002 ) , inflammatory diseases including psoriasis and psoriatic arthritis ( prx003 ) and attr amyloidosis ( prx004 ) . the company continues discovery of additional novel therapeutic candidates where our deep scientific understanding of disease pathology can be leveraged . we are a public limited company formed under the laws of ireland . we separated from elan corporation , plc ( “ elan ” ) on december 20 , 2012. after the separation from elan , and the related distribution of the company 's ordinary shares to elan 's shareholders , our ordinary shares began trading on the nasdaq global market under the symbol “ prta ” on december 21 , 2012 and currently trade on the nasdaq global select market . 45 recent developments neod001 for the potential treatment of al amyloidosis neod001 is an investigational monoclonal antibody that targets circulating misfolded soluble light chain and deposited insoluble amyloid for the potential treatment of al amyloidosis . results from the dose-escalation portion ( n=27 ) of the phase 1/2 clinical study of neod001 in patients with al amyloidosis and persistent organ dysfunction were published in the journal of clinical oncology in february 2016. in july 2016 , we presented positive interim data from the phase 1/2 clinical study from patients in both the dose escalation and expansion phases ( n=69 ) at the international symposium on amyloidosis ( isa ) ; and in december 2016 , results from the completed study were presented in an oral session at the american society of hematology ( ash ) annual meeting . results from this phase 1/2 study demonstrated that neod001 was safe and well-tolerated in patients with al amyloidosis and persistent organ dysfunction . the analysis showed that a total of 69 patients across the dose-escalation and expansion portions of the study received more than 990 infusions of up to 24 mg/kg , with a mean treatment duration of 12.8 months . in a best response analysis of patients in the phase 1/2 study who received neod001 , 53 % or 19 of 36 total cardiac-evaluable patients demonstrated a cardiac response , defined as more than 30 % and 300 pg/ml decrease in levels of nt-probnp . these cardiac best response rates compared favorably to cardiac response rates of 0 % to 15 % from available published historical data in patients previously treated with plasma cell directed therapy , and were consistent with the best response rate of 57 % , or 8 of 14 cardiac-evaluable patients , reported in the interim analysis of the dose escalation phase ( n=27 ) of the neod001 phase 1/2 study published in the journal of clinical oncology in february 2016. in a best response analysis of patients in the phase 1/2 study who received neod001 , 64 % , or 23 of 36 total renal-evaluable patients , demonstrated a renal response , defined as a 30 % decrease in proteinuria ( a renal function biomarker ) in the absence of estimated glomerular filtration rate ( egfr ) worsening . these renal best response rates compared favorably to renal response rates of 17 % to 29 % from published historical data in patients previously treated with plasma cell directed therapy , and were consistent with the best response rate of 60 % , or 9 of 15 renal-evaluable patients , reported in the interim analysis of the dose-escalation phase ( n=27 ) of the neod001 phase 1/2 study published in the journal of clinical oncology in february 2016. in addition , an improvement in peripheral neuropathy in patients in the prospectively defined peripheral neuropathy expansion cohort was demonstrated by a mean 35 % ( median 23 % ) decrease in the neuropathy impairment score-lower limb ( “ nis-ll ” ) measured at month 10 , indicating improvement to a third organ system in neod001-treated patients . complete resolution of peripheral neuropathy , as measured by nis-ll , was achieved in two patients in this cohort . improvements in patient nis-ll scores resulted in a response rate of 82 % or 9 of 11 patients in the peripheral neuropathy expansion cohort of the phase 1/2 study . a response on the nis-ll is defined as a less than 2-point increase on the 88-point scale . in august 2016 , we published a study in the journal amyloid that further supports neod001 's proposed mechanism of action and features preclinical data demonstrating the binding and phagocytosis clearance properties of neod001 and the related murine form of the antibody in tissue samples from multiple organs of patients with al amyloidosis . prx002 for the potential treatment of parkinson 's disease and other synucleinopathies prx002 is an investigational monoclonal antibody targeting alpha-synuclein designed to slow the progressive neurodegeneration associated with synuclein misfolding and or the cell-to-cell transmission of the pathogenic forms of synuclein in parkinson 's disease and other synucleinopathies . prx002 , also known as rg7935 , is the focus of a worldwide collaboration between prothena and roche . in november 2016 , we announced data from a phase 1b multiple ascending dose study of prx002 in patients with parkinson 's disease that was designed to assess the safety , tolerability , pharmacokinetics and immunogenicity of prx002 . the 80 patients with parkinson 's disease in this phase 1b double-blind , placebo-controlled , multiple ascending dose study were randomized into six escalating dose cohorts to receive prx002 or placebo ( 2:1 randomization for 0.3 , 1 , 3 or 10 mg/kg , and 3:1 randomization for 30 or 60 mg/kg ) . all dose levels of prx002 were found to have an acceptable safety and tolerability profile in patients with parkinson 's disease , meeting the primary objective of the study . story_separator_special_tag share-based awards , including stock options , are measured at fair value as of the grant date and recognized to expense over the requisite service period ( generally the vesting period ) , which we have elected to amortize on a straight-line basis . since share-based compensation expense is based on awards ultimately expected to vest , it has been reduced by an estimate for future forfeitures . forfeitures are estimated based on expected turnover and historical experience . we estimate forfeitures at the time of grant and revise our estimate , if necessary , in subsequent periods . we estimate the fair value of options granted using the black-scholes option valuation model . significant judgment is required in determining the proper assumptions used in these models . the assumptions used include the risk free interest rate , expected term , expected volatility and expected dividend yield . we base our assumptions on historical data when available or when not available , on a peer group of companies . prior to 2015 , the expected volatility was based on historical stock volatilities of several of our publicly traded comparable companies over a period equal to the expected life of the options , as we did not have a long enough trading history to use the volatility of our own ordinary shares . starting in 2015 , the expected volatility was based on a combination of historical volatility for our shares and the historical volatilities of several of our publicly traded comparable companies . these peer companies are publicly traded , have similar industry , life cycle , revenue and market capitalization . in addition , since we do not have sufficient historical employee share option exercise data , the simplified method has been used to estimate the expected life of all options . these assumptions consist of estimates of future market conditions , which are inherently uncertain , and therefore subject to our judgment and therefore any changes in assumptions could significantly impact the future grant date fair value of share-based awards . total share-based compensation expense for the years ended december 31 , 2016 , 2015 and 2014 was $ 24.9 million , $ 10.4 million , and $ 5.6 million , respectively . the information contained in note 2 to the consolidated financial statements under the heading “ recent accounting pronouncements ” is hereby incorporated by reference into this part ii , item 7. results of operations comparison of years ended december 31 , 2016 , 2015 and 2014 revenue replace_table_token_3_th total revenue was $ 1.1 million , $ 1.6 million and $ 50.9 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively . collaboration revenue includes reimbursements under our license agreement with roche , which became effective january 2014 . the portion of the amounts recognized as collaboration revenue for the milestone and the development reimbursements 50 were based on the relative selling price method in applying multiple element accounting . see note 8 to the consolidated financial statements “ roche license agreement ” for more information . collaboration revenue for the year ended december 31 , 2016 consisted of reimbursement for research service of $ 1.1 million . collaboration revenue for the year ended december 31 , 2015 consisted of the following amounts from roche under the license agreement : reimbursement for development costs of $ 5.1 million ( of which $ 0.2 million was recognized as collaboration license revenue ) and reimbursement for research services of $ 1.4 million . conversely , collaboration revenue for the year ended december 31 , 2014 consisted of the following amounts : a one-time , non-refundable , non-creditable upfront payment of $ 30.0 million ( which was recognized as collaboration license revenue ) , a clinical milestone payment from roche of $ 15.0 million ( of which $ 13.3 million was recognized as collaboration revenue ) , reimbursement for development costs of $ 6.0 million ( of which $ 5.3 million was recognized as collaboration license revenue ) and reimbursement for research services of $ 1.7 million . related-party revenue for the year ended december 31 , 2014 was comprised of fees earned from the provision of research and development services to elan . total related-party revenue decreased by $ 142,000 , or 21 % , during the year ended december 31 , 2014 , compared to the corresponding period of the prior year . since our research and development services agreement with elan terminated in december 2014 , we did not have any related-party revenue in the years ended december 31 , 2016 and 2015. operating expenses replace_table_token_4_th total operating expenses consist of research and development ( `` r & d `` ) expenses and general and administrative ( `` g & a `` ) expenses . our operating expenses for the years ended december 31 , 2016 , 2015 and 2014 were $ 160.6 million , $ 81.5 million , and $ 57.5 million , respectively . our r & d expenses primarily consist of personnel costs and related expenses , including share-based compensation , external costs associated with preclinical activities and drug development related to our drug programs , including neod001 , prx002 , prx003 , prx004 , our discovery programs , and in 2014 included cost of providing research services to elan . pursuant to our license agreement with roche , we make payments to roche for our share of the development expenses incurred by roche related to prx002 program , which is included in our r & d expense . we also recorded reimbursements from roche for development and supply services based on the relative percentages as an offset to r & d expense . our g & a expenses primarily consist of professional service expenses and personnel costs and related expenses , including share-based compensation . research and development expenses our r & d expenses increased by $ 61.1 million , or 105 % , for the
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | net cash used in operating activities was $ 117.3 million for the year ended december 31 , 2016 , primarily due to use of $ 160.6 million for operating expenses ( adjusted to exclude non-cash charges ) , which was partially offset by an increase in accounts payable and accrued liabilities . net cash used in operating activities was $ 62.5 million for the year ended december 31 , 2015 , primarily due to use of $ 81.5 million for operating expenses ( adjusted to exclude non-cash charges ) , which was partially offset by an increase in accrued liabilities . net cash used in operating activities was $ 0.7 million for the year ended december 31 , 2014 , primarily due to receipt of the upfront payment of $ 30.0 million , the clinical milestone payment of $ 15.0 million and reimbursement for research and development costs of $ 7.0 million from roche , recognized as revenue , offset by $ 57.5 million in expenses ( adjusted to exclude non-cash charges ) and increases in accrued liabilities . cash used in investing activities net cash used in investing activities was $ 16.6 million , $ 1.4 million and $ 0.5 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively .
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other significant items impacting the financial results for 2018 , 2017 , and 2016 are as follows : 2018 : effective january 1 , 2018 , we adopted a new standard on revenue recognition ( “ asc 606 ” ) using the modified retrospective transition approach - see notes 1 , 3 and 5 to our consolidated financial statements for additional details : ◦ the most significant effect of adopting asc 606 is on our power transformer business . ◦ the adoption of asc 606 resulted in an increase in revenues of $ 14.2 and an increase in operating income of $ 2.0 during 2018 as compared to the amounts that would have been recorded under the prior revenue recognition standard . on march 1 , 2018 , we completed the acquisition of schonstedt - see notes 1 and 4 to our consolidated financial statements for additional details : ◦ the purchase price for schonstedt was $ 16.4 , net of cash acquired of $ 0.3 . ◦ schonstedt 's revenues for the twelve months prior to the date of acquisition were approximately $ 9.0 . ◦ the post-acquisition operating results of schonstedt are reflected within our detection and measurement reportable segment . 22 on march 8 , 2018 , we settled our then-existing interest rate swap agreement ( “ old swaps ” ) and entered into a new interest rate swap agreement ( “ new swaps ” ) - see note 13 to our consolidated financial statements for additional details : ◦ old swaps ▪ we discontinued hedge accounting for the old swaps in the fourth quarter of 2017 in connection with an amendment of our senior credit agreement . ▪ during the three months ended march 31 , 2018 , we recorded a gain of $ 0.6 ( to “ other expense , net ” ) representing the change in fair value of the old swaps from january 1 , 2018 through the date of settlement on march 8 , 2018 . ◦ new swaps ▪ the new swaps have an initial notional amount of $ 260.0 and effectively convert a portion of our borrowings under our senior credit agreement to a fixed interest rate of 2.535 % , plus the applicable margin . ▪ we have designated , and are accounting for , the new swaps as cash flow hedges . on april 30 , 2018 , we reached an agreement with a subsidiary of mutares ag , the acquirer of balcke dürr in 2016 ( the “ buyer ” ) , on ( i ) the amount of cash and working capital of balcke dürr at the closing date of the sale and ( ii ) various other matters . the settlement resulted in : ◦ a net payment from the buyer in the amount of euro 3.0 ; and ◦ a gain , net of tax , of $ 3.8 , which was recorded to “ gain ( loss ) on disposition of discontinued operations , net of tax ” during 2018. on june 7 , 2018 , we completed the acquisition of cues - see notes 1 and 4 to our consolidated financial statements for additional details : ◦ the purchase price for cues was $ 164.4 , net of cash acquired of $ 20.6 . ◦ cues ' revenues for the twelve months prior to the acquisition were approximately $ 84.0 . ◦ the post-acquisition operating results of cues are reflected within our detection and measurement reportable segment . during the second quarter of 2018 , as a continuation of our strategic shift away from power generation end markets , we initiated a plan to wind-down the heat transfer business . ◦ in connection with the planned wind-down , we recorded charges of $ 3.5 during 2018 with $ 0.9 related to the write-down of inventories ( included in “ cost of products sold ” ) , $ 0.6 related to the impairment of machinery and equipment and $ 2.0 related to severance costs ( both included in “ special charges , net ” ) . ◦ in addition , we sold certain intangible assets of the heat transfer business for net cash proceeds of $ 4.8 , which resulted in a gain of less than $ 0.1 within our 2018 operating results . ◦ we anticipate completing the wind-down during the first half of 2019. actuarial losses on pension and postretirement plans ( see notes 1 and 10 to our consolidated financial statements for additional details ) - we recorded net actuarial losses of $ 6.6 in the fourth quarter of 2018 in connection with the annual remeasurement of our pension and postretirement plans . 2017 : income tax matters ( see notes 1 and 11 to our consolidated financial statements for additional details ) : ◦ during the fourth quarter of 2017 , we recorded an income tax benefit of $ 77.6 for a worthless stock deduction in the u.s. associated with our investment in a south african subsidiary . ◦ on december 22 , 2017 , the act was enacted which significantly changes u.s. income tax law for businesses and individuals . as a result of the act , we recorded provisional net income tax charges of $ 11.8 during the fourth quarter of 2017. gain from a contract settlement - during the third quarter of 2017 , we settled a contract that had been suspended and then ultimately cancelled by a customer . in connection with the settlement , we : ◦ received cash proceeds of $ 9.0 and other consideration ; and ◦ recorded a gain of $ 10.2. amendment of senior credit agreement - on december 19 , 2017 , we amended our senior credit agreement ( see note 12 to our consolidated financial statements for additional details ) . story_separator_special_tag results of discontinued operations sale of balcke dürr business as indicated in note 1 to our consolidated financial statements , on december 30 , 2016 , we completed the sale of balcke dürr for cash proceeds of less than $ 0.1 . in addition , we left $ 21.1 of cash in balcke dürr at the time of the sale . in connection with the sale , we recorded a net loss of $ 78.6 to “ gain ( loss ) on disposition of discontinued operations , net of tax ” during the fourth quarter of 2016 . 27 the results of balcke dürr are presented as a discontinued operation . major classes of line items constituting pre-tax loss and after-tax loss of balcke dürr for the year ended december 31 , 2016 are shown below : replace_table_token_5_th the following table presents selected financial information for balcke dürr that is included within discontinued operations in the consolidated statement of cash flows for the year ended december 31 , 2016 : non-cash items included in income ( loss ) from discontinued operations , net of tax depreciation and amortization $ 2.0 capital expenditures 0.7 during 2017 , we reduced the net loss associated with the sale of balcke dürr by $ 6.8 . the reduction was comprised of an additional income tax benefit recorded for the sale of $ 9.4 , partially offset by the impact of adjustments to liabilities retained in connection with the sale and certain other adjustments . during the second quarter of 2018 , we reached a settlement with the buyer on the amount of cash and working capital at the closing date , as well as on various other matters , for a net payment from the buyer in the amount of euro 3.0 . the settlement resulted in a gain , net of tax , of $ 3.8 , which was recorded to “ gain ( loss ) on disposition of discontinued operations , net of tax ” during the second quarter of 2018. see note 4 to our consolidated financial statements for information on discontinued operations . other discontinued operations activity in addition to the businesses discussed above , we recognized net losses of $ 0.8 , $ 1.5 and $ 2.7 during 2018 , 2017 and 2016 , respectively , resulting from adjustments to gains/losses on dispositions of businesses discontinued prior to 2016. changes in estimates associated with liabilities retained in connection with a business divestiture ( e.g . , income taxes ) may occur . as a result , it is possible that the resulting gains/losses on these and other previous divestitures may be materially adjusted in subsequent periods . 28 for the years ended december 31 , 2018 , 2017 and 2016 , results of operations from our businesses reported as discontinued operations were as follows : replace_table_token_6_th other dispositions sale of dry cooling business as indicated in note 1 to our consolidated financial statements , on march 30 , 2016 , we completed the sale of our dry cooling business for cash proceeds for $ 47.6 ( net of cash transferred with the business of $ 3.0 ) . in connection with the sale , we recorded a gain of $ 18.4 . results of reportable and other operating segments the following information should be read in conjunction with our consolidated financial statements and related notes . these results exclude the operating results of discontinued operations for all periods presented . see note 6 to our consolidated financial statements for a description of each of our reportable segments . non-gaap measures — throughout the following discussion of reportable and other operating segments , we use “ organic revenue ” growth ( decline ) to facilitate explanation of the operating performance of our segments . organic revenue growth ( decline ) is a non-gaap financial measure , and is not a substitute for net revenue growth ( decline ) . refer to the explanation of this measure and purpose of use by management under “ results of continuing operations — non-gaap measures . ” hvac reportable segment replace_table_token_7_th revenues — for 2018 , the increase in revenues , compared to 2017 , was due to an increase in organic revenue and , to a lesser extent , the impact of a weaker u.s. dollar . the increase in organic revenue was a result of an increase in sales for all of the primary product lines within the segment . for 2017 , the increase in revenues , compared to 2016 , was due to the increase in organic revenue . the increase in organic revenue was due primarily to an increase in sales of cooling products and heating and ventilation products , partially offset by a decline in sales of boiler products . 29 income — for 2018 , income and margin increased , compared to 2017 , primarily as a result of the organic revenue growth noted above . for 2017 , income and margin decreased , compared to 2016 , primarily as a result of a less profitable sales mix associated with the segment 's cooling and boiler products as well as lower absorption of fixed costs within the boiler products business due to the lower sales volumes noted above . backlog — the segment had backlog of $ 46.9 and $ 41.4 as of december 31 , 2018 and 2017 , respectively . approximately 96 % of the segment 's backlog as of december 31 , 2018 is expected to be recognized as revenue during 2019 . detection and measurement reportable segment replace_table_token_8_th revenues — for 2018 , the increase in revenues , compared to 2017 , was primarily due to the impact of the schonstedt and cues acquisitions , partially offset by a decline in organic revenue . the decline in organic revenue was due primarily to lower sales of bus fare collection systems . for 2017 , the increase in revenues , compared to 2016 ,
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash and other commitments our senior credit facilities are payable in full on december 19 , 2022. our term loan is repayable in quarterly installments of 1.25 % of the initial loan amount of $ 350.0 , beginning in the first fiscal quarter of 2019. the remaining balance is repayable in full on december 19 , 2022. we use operating leases to finance certain equipment , vehicles and properties . at december 31 , 2018 , we had $ 31.2 of future minimum rental payments under operating leases with remaining non-cancelable terms in excess of one year . capital expenditures for 2018 totaled $ 12.4 , compared to $ 11.0 and $ 11.7 in 2017 and 2016 , respectively . capital expenditures in 2018 related primarily to upgrades to manufacturing facilities , including replacement of equipment . we expect 2019 capital expenditures to approximate $ 15.0 to $ 20.0 , with a significant portion related to replacement of equipment . in 2018 , we made contributions and direct benefit payments of $ 15.6 to our defined benefit pension and postretirement benefit plans . we expect to make $ 15.3 of minimum required funding contributions and direct benefit payments in 2019. our pension plans have not experienced any liquidity difficulties or counterparty defaults due to the volatility in the credit markets . our pension funds earned asset returns of approximately ( 5.0 ) % in 2018. see note 10 to our consolidated financial statements for further disclosure of expected future contributions and benefit payments .
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when used in this report , the words may , will , should , would , anticipate , estimate , expect , plan , believe , predict , potential , intend , and similar expressions are intended to identify forward looking statements . forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected . these risks and uncertainties include , but are not limited to , changes in sales or industry trends , changes in economic conditions , competition , retention of senior management and other key personnel , availability of materials or components , ability to make continued product innovations , casualty or work stoppages at our facilities , adverse results of lawsuits against us and currency exchange rates , the availability of financing and other factors describe in item 1a . risk factors. forward looking statements are based on assumptions and assessments made by our management in light of their experience and their perception of historical trends , current conditions , expected future developments and other factors they believe to be appropriate . readers of this report are cautioned not to place undue reliance on these forward looking statements as there can be no assurance that these forward looking statements will prove to be accurate . our actual results could differ materially from those currently anticipated and discussed in the forward-looking statements as a result of risks and uncertainties set forth in this memorandum , including those set forth in item 1a . risk factors. management undertakes no obligation to update any forward looking statements . this cautionary statement is applicable to all forward looking statements contained in this report . overview we are a leading manufacturer of projection screens primarily focused on the premium end of the large screen market . projection screens are our main product line , and we produce three types : ( 1 ) electrically operated screens , which have the ability to retract into a concealed ceiling recess or into a wall-mounted case ; ( 2 ) wall screens , which are normally mounted on an exposed wall surface and may either be manually retractable or attached to a rigid frame ; and ( 3 ) portable screens that can easily be set up and removed . we also manufacture and sell custom engineered rear projection systems and complementary presentation products , including lecterns , easels , audio visual carts , conference cabinets , projector mounts and brackets for larger flat-panel displays . projection screens sales accounted for 85 % of our net sales in 2010 and 2009. improved capabilities , lower costs and greater portability of projectors , together with improved presentation tools , have driven projection screen sales in recent years . projector sales by other companies are a primary driver of the demand for our projection screens . many customers purchase projection screens as part of their installation of a new audio visual system or in connection with an upgrade of their existing audio visual systems . outlook we believe that our primary competitive strengths are the quality and innovation of our products , the breadth of our product line and our excellent customer service . sales for 2011 are difficult to forecast because we do not operate with a significant order backlog . however , we believe that we will continue to develop and market products to compete successfully . 18 distributions ( other than tax related distributions ) to shareholders were stopped in 2009 and are not currently contemplated in 2011. we currently believe that cash generated from operations will be sufficient to cover our operating requirements , although there can be no assurances in this regard . results of operations year ended december 31 , 2010 , compared with year ended january 1 , 2010 net sales . net sales were $ 131.9 million for 2010 , as compared to net sales of $ 130.3 million for 2009 , an increase of $ 1.6 million or 1.2 % . net sales by our united states ( u.s. ) operations increased 2.1 % . in the u.s. , electric screen sales increased $ 1.4 million , wall screen sales decreased $ 0.5 million , portable screens sales increased $ 0.8 million and other products increased $ 0.7 million . overall sales were positively impacted by an improvement in the economy , in the hospitality , business/it and housing markets . portable screen sales were positively impacted by a slight increase in demand from the rental and staging markets within the broader hospitality market . net sales from our european subsidiaries decreased by $ 0.7 million or 3.6 % . the stronger dollar resulted in a decrease of $ 1.0 million in net sales . cost of sales . cost of sales were $ 80.5 million for 2010 , as compared to $ 83.9 million for 2009 , a decrease of $ 3.4 million or 4.0 % . as a percentage of net sales , the cost of sales represented 61.0 % and 64.4 % for 2010 and 2009 , respectively . this constitutes a 3.4 percentage point increase in margin . this overall increase resulted primarily from the decrease in material cost in the u.s. facilities and increased adoption of lean manufacturing techniques . margins at our u.s. facilities increased 2.9 points due to sourcing lower-cost materials and components internationally , while margins at our european operations increased 1.5 points . selling , general and administrative expenses . story_separator_special_tag during 2009 , we recorded income resulting from the discounts realized in retiring $ 21.7 million of our 9 1 / 2 % senior notes ; in 2008 , we recorded income from the discounts realized in retiring $ 9.3 million of our 9 1 / 2 % senior notes . income taxes . as a subchapter s corporation for united states tax purposes , we are generally not subject to united states federal and state income taxation . rather , our income , gains , losses , deductions and credits flow through to our shareholders and we make distributions to them to meet their tax obligations at an assumed maximum federal and state tax rate ( based on the state with the highest tax rate in which any of our shareholders reside ) . this assumed rate was 40.4 % during 2009 and 2008. the company pays foreign income taxes on the earnings of its european subsidiaries . net income . as a result of the aforementioned factors , net income decreased $ 15.2 million from $ 26.5 million in 2008 to $ 11.3 million in 2009 . 20 story_separator_special_tag the distributions ( other than tax related distributions ) to our stockholders to a monthly rate of $ 0.14 per share or $ 0.7 million in the aggregate in april of 2009 and discontinued making distributions ( other than tax related distributions ) thereafter . 22 inflation we manage our inflation risks by ongoing review of product selling prices and production costs . management does not believe that inflation risks are material to our business , our consolidated financial position , results of operations or cash flows . however , there can be no assurance that future inflation will not have an adverse impact on our operating results and financial condition . environmental we have incurred and in the future will continue to incur expenditures for matters relating to environmental control , remediation , monitoring and compliance . our management believes that compliance with current environmental laws and regulations is not likely to have a material adverse effect on our financial condition , the results of our operations or our liquidity . however , environmental laws and regulations have changed rapidly in recent years and we may become subject to more stringent environmental laws and regulations in the future . critical accounting policies and estimates the preparation of financial statements in accordance with accounting principles generally accepted in the united states of america requires that management make a number of assumptions and estimates that affect the reported amounts of assets , liabilities , revenue and expenses in the consolidated financial statements and accompanying notes . management bases its estimates on historical experience and various other assumptions believed to be reasonable . although these estimates are based on management 's best knowledge of current events and actions that may impact us in the future , actual results may differ from these estimates and assumptions . our critical accounting policies are those that affect our consolidated financial statements materially and involve a significant level of judgment by management . revenue recognition we recognize revenue when we receive an order from a customer , title has transferred to a customer , the sales price is fixed or determinable and the collectability of the sales price is reasonably assured . all amounts billed to customers in a sales transaction related to shipping and handling are recorded as revenue , and costs incurred by us for shipping and handling are recorded as cost of sales . provision for customer sales allowances , returns and warranties are made at the time of shipment . we do not have any post-shipment obligations related to our sales such as installation , training or customer acceptance . allowance for doubtful accounts the financial status of customers is routinely checked and monitored by us when granting credit . we provide an allowance for doubtful accounts based upon historical experience and management 's estimate of amounts to be collected from past due accounts . if circumstances change , for example , due to the occurrence of higher-than-expected defaults or a significant adverse change in a major customer 's ability to meet its financial obligations to us , estimates of recoverability of receivable amounts due could be reduced . 23 goodwill goodwill represents the excess of purchase price over the fair value of identifiable net assets acquired . we apply the provisions of financial accounting standards board ( fasb ) accounting standards codification asc 350 intangibles-goodwill and other and management tests goodwill for impairment to determine whether its carrying value exceeds its implied fair value at least annually or more frequently if events or circumstances indicate that the carrying amount of goodwill may be impaired . the company has three reporting units ( da-lite us , procolor s.a.s , and projecta bv ) of which only da-lite us had goodwill as of december 31 , 2010. the company 's annual impairment testing date is the last day of the fiscal year . the goodwill impairment test involves a two-step process . the first step is a comparison of each reporting unit 's fair value to its carrying value . the company estimates fair value based on a combination of the market value approach and income approach using discounted cash flows . these valuations are based on assumptions and estimates including projected future cash flows , discount rates , and determination of appropriate market comparables . the fair value of each reporting unit is estimated using both methods and each method is given equal weighting in arriving at the fair value of the reporting unit . the second step , if needed , requires us to allocate the fair value of the reporting unit derived in the first step to the fair value of the reporting unit 's net assets to calculate the implied value of the goodwill . if the carrying value of the reporting unit 's goodwill is in excess
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources the company expects to be able to fund its working capital requirements , interest expense , capital expenditures and its distributions to stockholders with cash generated from operations , although there can be no assurances in this regard . the company issued $ 105 million aggregate principle amount of 12 1 / 2 % senior notes during the first quarter of 2010. these notes were issued with an original issue discount at a price of 97.305 % and this debt was recorded at the discounted amount of $ 102.2 million . the discount will be accreted over the life of these notes as interest expense . in march 2010 , the company repurchased $ 43.5 million of the outstanding principal amount of its 9 1 / 2 % senior notes from the open market for an aggregate purchase price of $ 44.5 million . on may 17 , 2010 , the company redeemed the remaining $ 54.5 million of the 9 1 / 2 % senior notes at a purchase price equal to the principal amount . the funds to repurchase these notes were from the $ 102.2 million cash received from of the issuance of the 12 1 / 2 % senior notes along with the borrowings under our bank credit facility . on september 2 , 2010 , the company repurchased $ 10.8 million of the outstanding $ 105.0 million principal amount of its 12 1 / 2 % senior notes from the open market for an aggregate purchase price of $ 11.0 million . the company retired these notes and wrote-off the purchase premium and the deferred financing cost related to the repurchase . the company increased its borrowing under the unsecured revolving credit facility in connection with the repurchase . pursuant to the terms of the 12 1 / 2 % senior notes , the company is required to offer to purchase from all noteholders , on a pro rata basis , an aggregated principal amount of $ 5.9 million of the 12 1 / 2 % senior notes at a purchase price of 103.000 % ( plus accrued interest to the redemption date ) .
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enogex also plans to capture growth opportunities through expansion projects , increased utilization of existing assets and through acquisitions ( including joint ventures ) in and around its footprint and attracting new customers . in addition , enogex is seeking to geographically diversify its gathering , processing and transportation businesses principally by expanding into other areas that are complementary with the company 's capabilities . enogex expects to accomplish this diversification by undertaking organic growth projects and through acquisitions . additionally , the company wants to achieve a premium valuation of its businesses relative to its peers , grow earnings per share with a stable earnings pattern , create a high performance culture and achieve desired outcomes with target stakeholders . 43 the company 's financial objectives include a long-term annual earnings growth rate of five to seven percent on a weather-normalized basis , maintaining a strong credit rating as well as increasing the dividend to meet the company 's dividend payout objectives . the company 's target payout ratio is to pay out dividends no more than 60 percent of its normalized earnings on an annual basis . the target payout ratio has been determined after consideration of numerous factors , including the largely retail composition of the company 's shareholder base , the company 's financial position , the company 's growth targets , the composition of the company 's assets and investment opportunities . the company believes it can accomplish these financial objectives by , among other things , pursuing multiple avenues to build its business , maintaining a diversified asset position , continuing to develop a wide range of skills to succeed with changes in its industries , providing products and services to customers efficiently , managing risks effectively and maintaining strong regulatory and legislative relationships . summary of operating results 2012 compared to 2011 . net income attributable to oge energy was $ 355.0 million , or $ 3.58 per diluted share , in 2012 as compared to $ 342.9 million , or $ 3.45 per diluted share , in 2011 . the increase in net income attributable to oge energy of $ 12.1 million , or 3.5 percent , or $ 0.13 per diluted share , in 2012 as compared to 2011 was primarily due to : an increase in net income at og & e of $ 17.0 million , or 6.5 percent , or $ 0.18 per diluted share of the company 's common stock , primarily due to a higher gross margin and lower income tax expense . the higher gross margin was primarily due to increased recovery of investments and increased transmission revenue partially offset by milder weather in og & e 's service territory . these increases were partially offset by higher other operation and maintenance expense , higher depreciation and amortization expense , lower allowance for equity funds used during construction and higher interest expense ; a decrease in net income at enogex of $ 8.1 million , or 9.9 percent , or $ 0.08 per diluted share of the company 's common stock , primarily due to higher other operation and maintenance expense , higher depreciation and amortization expense , lower other income primarily due to the recognition of a gain related to the sale of the harrah processing plant and the associated wellston and davenport gathering assets in 2011 , higher interest expense and oge energy 's lower membership interest in enogex holdings . these decreases were partially offset by a higher gross margin related to ( i ) increased gathering rates and volumes associated with ongoing expansion projects and increased volumes from gas gathering assets acquired in november 2011 and august 2012 and ( ii ) increased inlet volumes partially offset by lower average natural gas and ngls prices . also having a positive impact on net income was a higher gain on insurance proceeds in 2012 and an impairment related to the atoka processing plant in 2011 ; and an increase in net income at oge energy of $ 3.2 million , or $ 0.03 per diluted share of the company 's common stock , primarily due to higher other income due to a decrease in deferred compensation losses partially offset by higher interest expense and a lower income tax benefit in 2012 . non-recurring items . during 2012 , enogex had an increase in net income of $ 4.6 million due to a gain on insurance proceeds related to the reimbursement of costs incurred to replace the damaged train at the cox city natural gas processing plant partially offset by a decrease in net income of $ 2.1 million related to sales taxes on the assets acquired in the gas gathering acquisitions in august 2012 , as discussed in note 3 of notes to consolidated financial statements , which enogex does not consider to be reflective of its ongoing performance . during 2011 , enogex had an increase in net income of $ 2.3 million relating to the sale of the harrah processing plant and the associated wellston and davenport gathering assets in april 2011 , which enogex does not consider to be reflective of its ongoing performance . 2011 compared to 2010 . net income attributable to oge energy was $ 342.9 million , or $ 3.45 per diluted share , in 2011 as compared to $ 295.3 million , or $ 2.99 per diluted share , in 2010 . included in net income attributable to oge energy in 2010 was a one-time , non-cash charge of $ 11.4 million , or $ 0.11 per diluted share , related to the elimination of the tax deduction for the medicare part d subsidy ( as previously reported in the company 's form 10-q for the quarter ended march 31 , 2011 ) . story_separator_special_tag belvieu ; and a 10 percent change in the average ngls price for the entire year impacts net income approximately $ 5 million ; enogex has assumed operating expenses of approximately $ 325 million to $ 335 million , with operation and maintenance expenses comprising 54 percent of the total ; a pre-tax gain of approximately $ 10 million associated with asset sales in the first quarter of 2013 ; interest expense of approximately $ 30 million to $ 35 million ; an effective tax rate of approximately 38 percent ; and arclight group will own approximately 22 percent of enogex holdings by the end of 2013 . 2014 volume projections for enogex : assumed increase of approximately five to 10 percent in gathered volumes over 2013 ; and assumed increase of approximately 10 to 20 percent in processable * volumes over 2013 . * processable volumes are the natural gas production that are on enogex 's gathering systems that are available to be processed , some of which is moved off of the system and is not processed under one of enogex 's processing agreements . processable volumes include condensate volumes which are captured in the gathering pipeline and therefore not included in plant inlet volumes . ebitda is a supplemental non-gaap financial measure used by external users of the company 's financial statements such as investors , commercial banks and others ; therefore , the company has included the table below which provides a reconciliation of projected ebitda to projected net income attributable to enogex holdings at the midpoint of enogex holdings ' earnings assumptions for 2013 , which does not include the effect of income taxes whereas oge energy 's portion of enogex holdings ' net income included in oge energy 's earnings guidance does reflect the effect of income taxes . enogex holding 's net income shown in the ebitda table does not include the effect of income taxes because enogex holdings is a partnership and is not subject to income taxes . each partner is responsible for paying their own income taxes . for a discussion of the reasons for the use of ebitda , as well as its limitations as an analytical tool , see `` non-gaap financial measure `` below . 48 reconciliation of projected ebitda to projected net income attributable to enogex holdings ( in millions ) twelve months ended december 31 , 2013 ( a ) ( b ) net income attributable to enogex holdings $ 132 add : interest expense , net 33 depreciation and amortization expense ( c ) 123 ebitda $ 288 oge energy 's portion $ 228 ( a ) based on the midpoint of enogex holdings ' earnings guidance for 2013 . ( b ) as of november 1 , 2010 , enogex holdings ' earnings are no longer subject to tax ( other than texas state margin taxes ) and are taxable at the individual partner level . ( c ) includes amortization of certain customer-based intangible assets associated with the acquisition from cordillera in november 2011 , which is included in gross margin for financial reporting purposes . results of operations the following discussion and analysis presents factors that affected the company 's consolidated results of operations for the years ended december 31 , 2012 , 2011 and 2010 and the company 's consolidated financial position at december 31 , 2012 and 2011 . the following information should be read in conjunction with the consolidated financial statements and notes thereto . known trends and contingencies of a material nature are discussed to the extent considered relevant . replace_table_token_9_th in reviewing its consolidated operating results , the company believes that it is appropriate to focus on operating income as reported in its consolidated statements of income as operating income indicates the ongoing profitability of the company excluding the cost of capital and income taxes . operating income ( loss ) by business segment replace_table_token_10_th ( a ) during the third quarter of 2012 , the operations and activities of eer were fully integrated with those of enogex through the creation of a new commodity management organization . the operations of eer , including asset management activities , have been included in the natural gas transportation and storage segment and have been restated for all prior periods presented . ( b ) other operations primarily includes the operations of the holding company and consolidating eliminations . the following operating income analysis by business segment includes intercompany transactions that are eliminated in the consolidated financial statements . 49 og & e ( electric utility ) replace_table_token_11_th ( a ) degree days are calculated as follows : the high and low degrees of a particular day are added together and then averaged . if the calculated average is above 65 degrees , then the difference between the calculated average and 65 is expressed as cooling degree days , with each degree of difference equaling one cooling degree day . if the calculated average is below 65 degrees , then the difference between the calculated average and 65 is expressed as heating degree days , with each degree of difference equaling one heating degree day . the daily calculations are then totaled for the particular reporting period . 50 2012 compared to 2011. og & e 's operating income increased $ 17.1 million , or 3.6 percent , in 2012 as compared to 2011 primarily due to a higher gross margin partially offset by higher other operation and maintenance expense and higher depreciation and amortization expense . gross margin operating revenues were $ 2,141.2 million in 2012 as compared to $ 2,211.5 million in 2011 , a decrease of $ 70.3 million , or 3.2 percent . cost of goods sold was $ 879.1 million in 2012 as compared to $ 1,013.5 million in 2011 , a decrease of $ 134.4 million , or 13.3 percent . gross margin was $ 1,262.1 million in 2012 as compared to $
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | net cash used in investing activities in 2012 as compared to 2011 was primarily due to lower levels of capital expenditures in 2012 related to the crossroads wind farm at og & e and lower levels of capital expenditures related to gathering and processing expansion projects at enogex . the increase of $ 549.7 million , or 65.0 percent , in net cash used in investing activities in 2011 as compared to 2010 primarily related to higher levels of capital expenditures in 2011 related to various transmission projects and the crossroads wind farm at og & e and gathering and processing expansion projects at enogex . financing activities the decrease of $ 420.5 million , or 74.5 percent , in net cash provided from financing activities in 2012 as compared to 2011 was primarily due to : lower contributions from the arclight group during 2012 as compared to 2011 ; higher borrowings under enogex 's revolving credit agreement during 2011 ; and repayments of enogex 's line of credit during 2012 . these decrease s in net cash provided from financing activities were partially offset by an increase in short-term debt borrowings during 2012 as compared to 2011 . the increase of $ 556.4 million in net cash provided from financing activities in 2011 as compared to 2010 was primarily due to : repayment in 2010 of the remaining balance of enogex llc 's $ 400 million 8.125 % senior notes which matured on january 15 , 2010 ; 63 an increase in short-term debt borrowings in 2011 as compared to 2010 ; contributions from the noncontrolling interest partners in 2011 ; higher borrowings under enogex llc 's revolving credit agreement in 2011 ; and a decrease in repayments of borrowings under enogex llc 's revolving credit agreement in 2011 as compared to 2010 . future capital requirements and financing activities the company 's primary needs for capital are related to acquiring or constructing new facilities and replacing or expanding existing facilities at og & e and enogex . other working capital requirements are expected to be primarily related to maturing debt , operating lease obligations , hedging activities , fuel clause under and over recoveries and other general corporate purposes .
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under the wram , cal water records the adopted level of volumetric revenues , which would include recovery of cost of service and a return on investments as established by the cpuc for metered accounts . the adopted volumetric revenue considers the seasonality of consumption of water based upon historical averages . the variance between adopted volumetric revenues and actual billed volumetric revenues for metered accounts is recorded as a component of revenue with an offsetting entry to a regulatory asset or liability balancing account ( tracked individually for each cal water district ) subject to certain criteria under the accounting for regulated operations . the variance amount represents amounts that will be billed or refunded to customers in the future . in addition to volumetric revenues , the revenue requirements approved by the cpuc include service charges , flat rate charges , and other items not subject to the wram . cost-recovery rates are designed to permit full recovery of certain costs allowed to be recovered by the commissions . cost-recovery rates such as the mcba provides for recovery of adopted expense levels for purchased water , purchased power and pump taxes , as established by the cpuc . in addition , cost-recovery rates include recovery of cost related to water conservation programs and certain other operating expenses adopted by the cpuc . variances ( which include the effects of changes in both rate and volume for the mcba ) between adopted and actual costs are recorded as a component of revenue , as the amount of such variances will 31 be recovered from or refunded to our customers at a later date . cost-recovery expenses are generally recognized when the expenses are incurred with no markup for return or profit . the balances in the wram and mcba assets and liabilities accounts will fluctuate on a monthly basis depending upon the variance between adopted and actual results . the recovery or refund of the wram is netted against the mcba over- or under-recovery for the corresponding district and the deferred net balances are interest bearing at the current 90-day commercial paper rate . at the end of the calendar year , cal water files with the cpuc to refund or collect the balance in the accounts . the majority of under-collected net wram and mcba receivable balances are collected over 12 and 18 months . cal water defers any net wram and mcba revenues and associated costs whenever the net receivable balances are estimated to be collected more than 24 months after the respective reporting period in which it was recorded . the deferred net wram and mcba revenue and associated costs were determined using forecasts of customer consumption trends in future reporting periods and the timing of when the cpuc will authorize cal water 's filings to recover unbilled balances . deferred revenues and associated costs are recorded in the periods when the collection is within 24 months of the respective reporting period . customers ' meter reads occur on various business days throughout the month . as a result , there are unmetered or unbilled customer usage each month . the estimated unbilled revenue for monthly unmetered customer usage is recorded using the number of unbilled days for that month and average daily customer billing rate for the previous month . the average daily customer billing rate for the previous month fluctuates depending on customer usage . estimated unbilled revenue is not included in the wram until it is billed . flat rate customers are billed in advance at the beginning of the service period . the revenue is prorated so that the portion of revenue applicable to the current period is included in that period 's revenue , with the balance recorded as unearned revenue on the balance sheet and recognized as revenue when earned in the subsequent accounting period . our unearned revenue liability was $ 0.7 million as of december 31 , 2017 and was $ 0.8 million as of december 31 , 2016. this liability is included in `` other accrued liabilities `` on our consolidated balance sheets . regulated utility accounting because we operate almost exclusively in a regulated business , we are subject to the accounting standards for regulated utilities . the commissions in the states in which we operate establish rates that are designed to permit the recovery of the cost of service and a return on investment . we capitalize and record regulatory assets for costs that would otherwise be charged to expense if it is probable that the incurred costs will be recovered in future rates . regulatory assets are amortized over the future periods that the costs are expected to be recovered . if costs expected to be incurred in the future are currently being recovered through rates , we record those expected future costs as regulatory liabilities . in addition , we record regulatory liabilities when the commissions require a refund to be made to our customers over future periods . determining probability requires significant judgment by management and includes , but is not limited to , consideration of testimony presented in regulatory hearings , proposed regulatory decisions , final regulatory orders , and the strength or status of applications for rehearing or state court appeals . if we determine that a portion of our assets used in utility operations is not recoverable in customer rates , we would be required to recognize the loss of the assets disallowed . income taxes we account for income taxes using the asset and liability method . deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis . we measure deferred tax assets and liabilities at enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . story_separator_special_tag to the best of management 's knowledge , we are meeting water quality , environmental , and other regulatory standards for all company-owned systems . california 's normal weather pattern yields little precipitation between mid-spring and mid-fall . the washington water service areas receive precipitation in all seasons , with the heaviest amounts during the winter . new mexico water 's rainfall is heaviest in the summer monsoon season . hawaii water receives precipitation throughout the year , with the largest amounts in the winter 37 months . water usage in all service areas is highest during the warm and dry summers and declines in the cool winter months . rain and snow during the winter months replenish underground water aquifers and fill reservoirs , providing the water supply for subsequent delivery to customers . management believes that supply pumped from underground aquifers and purchased from wholesale suppliers will be adequate to meet customer demand during 2018 and beyond . however , water rationing may be required in future periods , if declared by the state or local jurisdictions . long-term water supply plans are developed for each of our districts to help assure an adequate water supply under various operating and supply conditions . some districts have unique challenges in meeting water quality standards , but management believes that supplies will meet current standards using current treatment processes . liquidity and capital resources story_separator_special_tag million outstanding on our unsecured revolving line of credit as of december 31 , 2016. as of december 31 , 2016 , there were short-term borrowings of $ 97.1 million outstanding on our unsecured revolving line of credit , compared to $ 33.6 million outstanding on our unsecured revolving line of credit as of december 31 , 2015. given our ability to access our lines of credit on a daily basis , cash balances are managed to levels required for daily cash needs and excess cash is invested in short-term or cash equivalent instruments . minimal operating levels of cash are maintained for washington water , new mexico water , and hawaii water . the company and subsidiaries which it designates may borrow up to $ 150.0 million under its short-term credit facility . cal water may borrow up to $ 300.0 million under its credit facility ; however , all borrowings need to be repaid within 24 months unless otherwise authorized by the cpuc . both short-term credit agreements contain affirmative and negative covenants and events of default customary for credit facilities of this type including , among other things , limitations and prohibitions relating to additional indebtedness , liens , mergers , and asset sales . also , these unsecured credit agreements contain financial covenants governing the company and its subsidiaries ' consolidated total capitalization ratio not to exceed 66.7 % and interest coverage ratio of three or more . as of december 31 , 2017 , our consolidated total capitalization ratio was 56.5 % ( trade payable and short term borrowings are included as debt for this calculation ) and the interest coverage ratio was greater than five . in summary , we have met all of the covenant requirements and are eligible to use the full amounts of these credit agreements . long-term financing cal water was authorized to issue $ 350.0 million of debt and common stock to finance capital projects and operations by a cpuc decision dated may 12 , 2016. in addition , the decision retained $ 146.0 million of prior financing authority and determined that refinancing long-term debt did not count against the authorization . the cpuc requires that any loans from cal water to the company be at arm 's length . this restriction did not materially impact the company 's ability to meet its cash obligations in 2017. management does not expect this restriction to have a material impact on the company 's ability to meet its cash obligations in 2018 and beyond . on march 16 , 2016 , cal water sold $ 50.0 million of first mortgage bonds and used the net proceeds of $ 49.8 million to pay down outstanding short-term borrowings , fund capital expenditures and for general corporate purposes . the company made principal payments on first mortgage bonds and other long-term debt of $ 26.8 million during 2017. on october 13 , 2015 , cal water sold $ 100.0 million of first mortgage bonds and used the net proceeds of $ 99.3 million to pay down outstanding short-term borrowings , fund capital expenditures and for general corporate purposes . we made principal payments on first mortgage bonds and other long-term debt of $ 7.0 million during 2016. long-term financing , which includes first mortgage bonds , senior 39 notes , other debt securities , and common stock , has typically been used to replace short-term borrowings and fund capital expenditures . internally generated funds , after making dividend payments , provide positive cash flow , but have not been at a level to meet the needs of our capital expenditure requirements . management expects this trend to continue given our capital expenditures plan for the next five years . some capital expenditures are funded by payments received from developers for contributions in aid of construction or advances for construction . funds received for contributions in aid of construction are non-refundable , whereas funds classified as advances in construction are refundable . management believes long-term financing is available to meet our cash flow needs through issuances in both debt and equity instruments . additional information regarding the bank borrowings and long-term debt is presented in notes 7 and 8 in the notes to consolidated financial statements . off-balance sheet transactions we do not utilize off-balance-sheet financing or utilize special purpose entity arrangements for financing . we do not have equity ownership through joint ventures or partnership arrangements . contractual obligations the contractual obligations presented in the table below represent our estimates of future payments under fixed contractual obligations and commitments
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash flow from operations during 2017 , we generated cash flow from operations of $ 147.8 million , compared to $ 160.4 million during 2016. the decrease in 2017 was mostly due to an increase in the net wram and mcba receivable in 2017 as actual customer usage was below adopted . during 2016 , we generated cash flow from operations of $ 160.4 million , compared to $ 145.0 million during 2015. the increase in 2016 was mostly due to rate increases as authorized by the cal water 2012 grc decision . the water business is seasonal . billed revenue is lower in the cool , wet winter months when less water is used compared to the warm , dry summer months when water use is highest . this seasonality results in the possible need for short-term borrowings under the bank lines of credit in the event cash is not sufficient to cover operating and capital costs during the winter period . the increase in cash flow during the summer allows short-term borrowings to be paid down . customer water usage can be lower than normal in years when more than normal precipitation falls in our service areas or temperatures are lower than normal , especially in the summer months . the reduction in water usage reduces cash flow from operations and increases the need for short-term bank borrowings . in addition , short-term borrowings are used to finance capital expenditures until long-term financing is arranged . investing activities during 2017 , 2016 , and 2015 , we used $ 259.2 million , $ 228.9 million and $ 176.8 million , respectively , of cash for capital expenditures , both company-funded and developer-funded . the 2017 capital expenditures exceeded the high end of the budgeted capital expenditures of $ 230.0 million . annual expenditures fluctuate each year due to the availability of construction resources and our ability to obtain construction permits in a timely manner . in 2017 , we also received $ 56.0 million in tcp settlement proceeds .
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at the time that we became a separate legal entity , we entered into an agreement with actuarial ideas , inc. under which we continue to write and edit all the pension and retirement plans for its clients . prior to being a separate legal entity , we were structured as a line of business of actuarial ideas , inc. which allocated a portion of all of its combined costs to us based on the relationship of our revenues to total actuarial ideas , inc. revenues . the revenues represented specifically identified revenue for our business line and are not allocations . actuarial ideas , inc. maintained all of its records based on the nature of each type of revenue producing activity . all of the revenue associated with writing pension plans was segregated and specifically identified . costs of sales consist primarily of salaries , rent , communications and travel costs . actuarial ideas , inc. believes that the allocation was consistent with the percentage of time and resources devoted to us during each period and conforms to guidelines described in sab topic 1b1 . commencing july 1 , 2007 , cost allocations from actuarial ideas , inc. ceased , and we began paying a management fee to actuarial ideas , inc. equivalent to $ 1,500 per month plus 5 % of revenues collected for us from customers by actuarial ideas , inc. the management fee covers the costs of rent , administrative and computerized recordkeeping costs , communications and other office costs . it does not include the salaries that we agreed to pay , professional fees and any separate marketing costs that we elect to incur . we also pay ( i ) mr. cohen an annual salary of $ 30,000 for which he devotes 15 % of his time to us ( ii ) richard cohen , our treasurer , devotes 10 % of his time to us and receives an annual salary of $ 6,000. for the immediate future , actuarial ideas , inc. will refer business to us by advising its clients that the project will be completed more efficiently be engaging us than by engaging any entity other than us to complete a portion of the required tasks . it will provide us the basic information and background . we will use this information to draft or amend pension plans . we will be completely dependent on these referrals from actuarial ideas , inc. for our revenue for at least the next 18 to 24 months . when resources permit in the future , we will seek business from other sources in addition to actuarial ideas , inc. this work will be performed or supervised by mr. cohen . more than 60 % of our revenues are generally earned in november and december . while operating in this manner , we will have fixed costs limited to the salary due to mr. cohen and the fixed portion of the management fee ( $ 1,500 per month ) . we are not aware of any material changes to our operations for the next 12 months compared to the level of operations during the past 12 months . the third paragraph in story_separator_special_tag to increase our ability to use noncash means of settling day-to-day business obligations and compensate any independent contractors who provide professional services to us , although there can be no assurances that we will be successful in any of those efforts . we will reduce the cash compensation levels paid to our president if there is insufficient cash generated from operations to satisfy these costs . if we reduce the cash paid to our president , the unpaid balance , without interest , will be accrued as a liability until paid . we may also seek outside investments or credit facilities to meet levels of obligations that exceed our cash flow . however , we can provide no assurances that we will be successful in obtaining financing or satisfying all required costs . there are no current plans to seek private investment . we do not have any current plans to raise funds through the sale of securities . we hope to be able to use our status as a public company to enable us to use noncash means of settling obligations and compensate persons and or firms providing services or products to us we believe that issuing shares of our common stock to such persons instead of paying cash to them may enable us to obtain and perform more and larger engagements because performance of those engagements will not require larger amounts of cash expenditures to the extent that shares are used to satisfy obligations . our belief is based on personal observations and is not supported by any formal studies or polls . having shares of our common stock may give persons a greater feeling of identity with us and our president , mark cohen , which may result in referrals to us directly by other actuarial firms or to actuarial ideas , inc. which also will result in additional revenue for us . however , we have not done any studies or performed any surveys to determine the likelihood that these shareholders will actually make referrals to us , and , there can be no assurances that we will do so or will be successful in any of these efforts . 17 off balance sheet arrangements we do not have any transactions , arrangements and other relationships with unconsolidated entities that will affect our liquidity or capital resources . we have no special purpose entities that provide off-balance sheet financing , liquidity or market or credit risk support , nor do we engage in swap agreements , or outsourcing of research and development services , that could expose us to liability that is not reflected on the face of our financial statements . recent accounting pronouncements the company has implemented all new accounting pronouncements that are in effect and story_separator_special_tag at the time that we became a separate legal entity , we entered into an agreement with actuarial ideas , inc. under which we continue to write and edit all the pension and retirement plans for its clients . prior to being a separate legal entity , we were structured as a line of business of actuarial ideas , inc. which allocated a portion of all of its combined costs to us based on the relationship of our revenues to total actuarial ideas , inc. revenues . the revenues represented specifically identified revenue for our business line and are not allocations . actuarial ideas , inc. maintained all of its records based on the nature of each type of revenue producing activity . all of the revenue associated with writing pension plans was segregated and specifically identified . costs of sales consist primarily of salaries , rent , communications and travel costs . actuarial ideas , inc. believes that the allocation was consistent with the percentage of time and resources devoted to us during each period and conforms to guidelines described in sab topic 1b1 . commencing july 1 , 2007 , cost allocations from actuarial ideas , inc. ceased , and we began paying a management fee to actuarial ideas , inc. equivalent to $ 1,500 per month plus 5 % of revenues collected for us from customers by actuarial ideas , inc. the management fee covers the costs of rent , administrative and computerized recordkeeping costs , communications and other office costs . it does not include the salaries that we agreed to pay , professional fees and any separate marketing costs that we elect to incur . we also pay ( i ) mr. cohen an annual salary of $ 30,000 for which he devotes 15 % of his time to us ( ii ) richard cohen , our treasurer , devotes 10 % of his time to us and receives an annual salary of $ 6,000. for the immediate future , actuarial ideas , inc. will refer business to us by advising its clients that the project will be completed more efficiently be engaging us than by engaging any entity other than us to complete a portion of the required tasks . it will provide us the basic information and background . we will use this information to draft or amend pension plans . we will be completely dependent on these referrals from actuarial ideas , inc. for our revenue for at least the next 18 to 24 months . when resources permit in the future , we will seek business from other sources in addition to actuarial ideas , inc. this work will be performed or supervised by mr. cohen . more than 60 % of our revenues are generally earned in november and december . while operating in this manner , we will have fixed costs limited to the salary due to mr. cohen and the fixed portion of the management fee ( $ 1,500 per month ) . we are not aware of any material changes to our operations for the next 12 months compared to the level of operations during the past 12 months . the third paragraph in story_separator_special_tag to increase our ability to use noncash means of settling day-to-day business obligations and compensate any independent contractors who provide professional services to us , although there can be no assurances that we will be successful in any of those efforts . we will reduce the cash compensation levels paid to our president if there is insufficient cash generated from operations to satisfy these costs . if we reduce the cash paid to our president , the unpaid balance , without interest , will be accrued as a liability until paid . we may also seek outside investments or credit facilities to meet levels of obligations that exceed our cash flow . however , we can provide no assurances that we will be successful in obtaining financing or satisfying all required costs . there are no current plans to seek private investment . we do not have any current plans to raise funds through the sale of securities . we hope to be able to use our status as a public company to enable us to use noncash means of settling obligations and compensate persons and or firms providing services or products to us we believe that issuing shares of our common stock to such persons instead of paying cash to them may enable us to obtain and perform more and larger engagements because performance of those engagements will not require larger amounts of cash expenditures to the extent that shares are used to satisfy obligations . our belief is based on personal observations and is not supported by any formal studies or polls . having shares of our common stock may give persons a greater feeling of identity with us and our president , mark cohen , which may result in referrals to us directly by other actuarial firms or to actuarial ideas , inc. which also will result in additional revenue for us . however , we have not done any studies or performed any surveys to determine the likelihood that these shareholders will actually make referrals to us , and , there can be no assurances that we will do so or will be successful in any of these efforts . 17 off balance sheet arrangements we do not have any transactions , arrangements and other relationships with unconsolidated entities that will affect our liquidity or capital resources . we have no special purpose entities that provide off-balance sheet financing , liquidity or market or credit risk support , nor do we engage in swap agreements , or outsourcing of research and development services , that could expose us to liability that is not reflected on the face of our financial statements . recent accounting pronouncements the company has implemented all new accounting pronouncements that are in effect and
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity below summarizes what our overall expenses will be if this level of operations takes place . 15 we believe that being a public entity may provide us ( and our president , mark cohen ) benefits in visibility and the way that we are perceived by potential business referral sources and prospective customers . these sources may refer new business to us directly or to actuarial ideas , inc. which also will result in additional revenue for us . ultimately , the goal of this process will be to develop sources of business beyond actuarial ideas , inc. however , we have not done any studies or performed any surveys to determine the likelihood that these shareholders will actually make referrals to us and there can be no assurances that we will be successful in any of this regard . operations december 31 2012 and 2011 a summary of operations is : replace_table_token_1_th we currently perform work for approximately 150 plans that relate to actuarial idea 's clients whose work has been referred to us . more than half of these plans are defined benefit plans . the remainder is split among defined contribution plans such as profit sharing plans , money purchase plans , and 401 ( k ) plans . our revenue and operations were severely hurt by the ongoing downturn in the economy . this downturn resulted in very few companies establishing new pension plans . companies with existing pension plans made as few changes or reviews as possible because of the economic uncertainties . our financial situation was severely impacted because of these uncertainties and conditions . commencing july 1 , 2007 , we began paying a management fee to actuarial ideas , inc. equivalent to $ 1,500 per month plus 5 % of revenues collected for us from customers by actuarial ideas , inc. the management fee covers the costs of rent , administrative and computerized recordkeeping costs , communications and other office costs . it does not include the salaries that we agreed to pay , professional fees and any separate marketing costs that we elect to incur .
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we derived 93 % , 95 % and 92 % of our revenue from direct sales to customers for 2015 , 2014 and 2013 , respectively . we expect to continue generating a substantial majority of our revenue from direct sales in the future . we are headquartered in sunnyvale , california , with employees located throughout the americas , europe and the asia pacific region . we expect to continue to add personnel in the united states and 36 internationally to develop our products , provide additional sales support for key market verticals and emerging geographic regions , and invest in personnel to allow our business to scale to support our expanded business opportunities . 2015 financial and business performance we continued our transformation to a multi-market company in 2015 by adding metro and dci to our core long-haul business . we grew total revenue by 33 % compared to 2014 including revenue from transmode in the post-acquisition period . organically , excluding the partial year of transmode revenues , our revenues grew in the mid-20 % range in 2015 , marking the third consecutive year we have grown significantly faster than the overall wdm market . we also continued to expand our gross margin and operating margin in 2015 , demonstrating the leverage we have achieved from our vertical integration , the value proposition of our intelligent transport network and our commitment to prudent expense management . two customers each accounted for over 10 % of our revenue in 2015. these two customers accounted for 17 % and 13 % , respectively , of our revenue in 2015. one customer accounted for over 10 % of our revenue in 2014. revenue from this customer accounted for 19 % of our revenue in 2014. no individual customer accounted for over 10 % of our revenue in 2013. future business and industry trends across the broader market , we believe we have good opportunity to increase revenue in 2016 based on driving the growth of cloud xpress , achieving traction from new products , the inclusion of a full year of transmode revenues including cross-selling synergies , and capacity adds to our 100g footprint in the long-haul market . our focus on revenue growth will be complemented with continued efforts to drive cost improvements across all of our products and services . with respect to operating expenses , we will need to increase our investment levels in the short-term to more closely align with our growing market opportunity across long-haul , metro and dci . we have not scaled our operating expenses at the same rate as our revenue growth over the past several years as our revenue growth has exceeded our expectations . over a longer period of time , we believe that with sustained revenue growth , we can further leverage our vertically-integrated manufacturing model , which combined with the introduction of additional purpose built products , the ability to continue to sell incremental bandwidth capacity into deployed networks and expense management , can result in improved profitability and cash flow . our goal is to be the preeminent provider of optical transport networking systems to service providers around the world . our revenue growth will depend on the continued acceptance of our products , growth of communications traffic and the proliferation of next-generation bandwidth-intensive services , which are expected to drive the need for increased levels of bandwidth . our near-term quarter-over-quarter revenue may likely be volatile and may be impacted by several factors including general economic and market conditions , time-to-market development and market acceptance of new products , acquisitions of new customers and the timing of large product deployments . 37 results of operations revenue the following table sets forth , for periods presented , certain consolidated statements of operations information ( in thousands , except percentages ) : replace_table_token_3_th replace_table_token_4_th 2015 compared to 2014. product revenue increased by $ 197.0 million , or 34 % , in 2015 from 2014. the increase was primarily driven by continued momentum associated with the infinera dtn-x platform through both new network builds and capacity adds to existing networks . additionally , we benefited from the inclusion of revenue from transmode 's metro products since the acquisition , which occurred during the third quarter of 2015. in 2015 , we also experienced significant growth in revenue associated with our cloud xpress platform , which was introduced during the fourth quarter of 2014. these increases were partially offset by a reduction in sales of the dtn platform , reflecting the continued shift to 100gbps network deployments . services revenue increased by $ 21.7 million , or 23 % , in 2015 from 2014. the increase was primarily due to higher on-going support services as we continued to grow our installed base . additionally , during 2015 , we experienced higher levels of deployment services as customers built new networks utilizing our teams ' expertise . our services revenue also benefited from the inclusion of transmode 's services revenue since the acquisition . 2014 compared to 2013. total product revenue increased by $ 106.9 million , or 23 % , in 2014 from 2013. this increase was primarily driven by the continued strong market adoption of the infinera dtn-x platform as our customers continued to deploy our products to meet the growing bandwidth needs of their networks . the 38 increase in infinera dtn-x platform revenue was partially offset by a reduction in sales of the infinera dtn platform . services revenue increased by $ 17.1 million , or 22 % , in 2014 from 2013 due to higher levels of deployment services as customers built new networks utilizing our teams ' expertise as well as higher on-going support services as we continued to grow our installed base . story_separator_special_tag as of december 26 , 2015 , we had determined that while ownership changes had occurred in the past , the resulting limitations were not significant enough to impact the utilization of the tax attributes against our taxable profits earned to date . in determining future taxable income , we make assumptions to forecast federal , state and international operating income , the reversal of temporary differences , and the implementation of any feasible and prudent tax planning strategies . the assumptions require significant judgment regarding the forecasts of future taxable income , and are consistent with our income forecasts used to manage our business . 43 liquidity and capital resources replace_table_token_11_th replace_table_token_12_th cash , cash equivalents and short-term investments consist of highly-liquid investments in certificates of deposits , money market funds , commercial paper , corporate bonds and u.s. treasuries . long-term investments primarily consist of corporate bonds . the restricted cash balance amounts are primarily pledged as collateral for certain stand-by and commercial letters of credit related to customer proposal guarantees , value added tax licenses and property leases . operating activities story_separator_special_tag expect the notes will be converted in the short-term . upon conversion , it is our intention to pay cash equal to the lesser of the aggregate principal amount or the conversion value of the notes . for any remaining conversion obligation , we intend to pay cash , shares of common stock or a combination of cash and shares of common stock , at our election . as of december 26 , 2015 , long-term debt , net , was $ 125.4 million as of december 26 , 2015 , which represents the liability component of the $ 150.0 million principal balance , net of $ 24.6 million debt discount . the debt discount is currently being 45 amortized over the remaining term until maturity of the notes on june 1 , 2018. any future redemption or conversion of the notes could impact the timing of the repayment of these notes . as of december 26 , 2015 , contractual obligations related to the notes are payments of $ 2.6 million due each year from 2016 through 2017 and $ 151.3 million due in 2018. these amounts represent principal and interest cash payments over the term of the notes . any future redemption or conversion of the notes could impact the amount or timing of our cash payments . for more information regarding the notes , see note 11 , “ convertible senior notes , ” to the notes to consolidated financial statements . as of december 26 , 2015 , we had $ 274.7 million of cash , cash equivalents and short-term investments , including $ 57.6 million of cash and cash equivalents held by our foreign subsidiaries . our cash in foreign locations is used for operational and investing activities in those locations , and we do not currently have the need or the intent to repatriate those funds to the united states . our policy with respect to undistributed foreign subsidiaries ' earnings is to consider those earnings to be indefinitely reinvested . if we were to repatriate these funds , we would be required to pay u.s. taxes on such amounts , however , due to our significant net operating loss carryforward position for both federal and state tax purposes , as well as the full valuation allowance provided against our u.s. and state net deferred tax assets , we would currently be able to offset any such tax obligations in their entirety . however , foreign withholding taxes may be applicable . contractual obligations the following is a summary of our contractual obligations as of december 26 , 2015 : replace_table_token_13_th ( 1 ) we have service agreements with our major production suppliers under which we are committed to purchase certain parts . ( 2 ) we lease facilities under non-cancelable operating lease agreements . these leases have varying terms , predominantly no longer than ten years each and contain leasehold improvement incentives , rent holidays and escalation clauses that range from one to 10 years . in addition , some of these leases have renewal options for up to five years . we also have contractual commitments to remove leasehold improvements and return certain properties to a specified condition when the leases terminate . at the inception of a lease with such conditions , we record an asset retirement obligation liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation . leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset . an assumption of lease renewal where a renewal option exists is used only when the renewal has been determined to be reasonably assured . the estimated useful life of leasehold improvements is one to ten years . ( 3 ) tax liabilities of $ 2.9 million related to uncertain tax positions are not included in the table because we are unable to determine the timing of settlement if any , of these future payments with a reasonably reliable estimate . we had $ 5.2 million of standby letters of credit outstanding as of december 26 , 2015. these consisted of $ 3.1 million related to a customer proposal guarantee , $ 1.2 million related to a value added tax license and $ 0.9 million related to property leases . we had $ 5.0 million of standby letters of credit outstanding as of december 27 , 2014. these consisted of $ 3.0 million related to a value added tax license , $ 1.3 million related to a customer proposal guarantee and $ 0.7 million related to property leases . 46 off-balance sheet arrangements as of december 26 , 2015 , we did not have any relationships with unconsolidated entities or financial partnerships , such as entities often referred to as structured finance or special purpose entities ,
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | net cash provided by operating activities was $ 133.2 million for 2015 , $ 36.0 million for 2014 and $ 35.2 million for 2013. net income for 2015 was $ 51.0 million , which included non-cash charges of $ 80.1 million , compared to a net income of $ 13.7 million for 2014 , which included non-cash charges of $ 66.5 million . net loss for 2013 was $ 32.1 million , which included non-cash charges of $ 62.3 million . net cash provided by working capital was $ 2.1 million for 2015. accounts receivables increased by $ 16.0 million primarily due to the timing of invoicing in the period and inventory levels increased by $ 17.1 million to support the higher expected demand including multiple new products . accounts payable increased by $ 19.2 million primarily reflecting the volume of the business and timing of payments during the period . accrued warranty increased by $ 10.8 million due to general warranty reserves , the incremental cost to support the increased installed base and higher repair costs . net cash used to fund working capital was $ 44.2 million for 2014. accounts receivables increased by $ 54.0 million primarily due to higher revenue levels and the timing of invoicing of network deployments and collections during the period . inventory levels increased by $ 25.5 million to support the higher expected demand . accounts payable increased by $ 18.8 million primarily reflecting increased inventory purchases and timing of payments during the period . accrued liabilities increased by $ 11.9 million primarily reflecting higher levels of compensation related accruals . 44 investing activities net cash used in investing activities for 2015 was $ 91.5 million . investing activities during 2015 i ncluded the payment of $ 144.4 million in connection with the acquisition of transmode and net proceeds of $ 93.8 million associated with purchases , maturities and sales of investments during the year as we rearranged our portfolio to fund the acquisition .
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we also supply electrical wire harnesses , control panels , electro-mechanical and cable assemblies , seating systems and other products to automotive , military , bus , agriculture , transportation , mining , industrial and off-road recreational markets . we have manufacturing operations in the united states , mexico , china , united kingdom , czech republic , ukraine , thailand , india and australia . our products are primarily sold in north america , europe , and the asia-pacific region . we are differentiated from automotive industry suppliers by our ability to manufacture low volume , customized products on a sequenced basis to meet the requirements of our customers . we believe our products are used by a majority of the north american md/hd truck and many medium- and heavy-duty construction vehicle original equipment manufacturers ( “ oems ” ) , and to a lesser extent other makers of industrial equipment . in the quarter ended december 31 , 2018 , we completed a strategic reorganization of our operations into two business segments , electrical systems and global seating . the reorganization allows the company to better focus its business along product lines , as opposed to end markets , which the company believes enhances the effectiveness of seeking out growth opportunities and shareholder value . business overview for the year ended december 31 , 2019 , approximately 49 % of our revenue was generated from sales to north american md/hd truck oems . our remaining revenue was primarily derived from sales to oems in the global construction equipment market , aftermarket and oe service organizations , military market and specialty markets . demand for our products may be driven by preferences of the end-user of the vehicle , particularly with respect to heavy-duty trucks . unlike the automotive industry , heavy-duty truck oems generally afford the end-user the ability to specify many of the component parts that will be used to manufacture the vehicle , including a wide variety of cab interior styles and colors , brand and type of seats , type of seat fabric and color , and interior styling . certain of our products are only utilized in heavy-duty trucks , such as our storage systems , sleeper boxes and privacy curtains . to the extent that demand for higher content vehicles increases or decreases , our revenues and gross profit will be impacted positively or negatively . we generally compete for new business at the beginning of the development of a new vehicle platform and upon the redesign of existing programs . new platform development generally begins one to three years before the marketing of such models by our customers . contract durations for commercial vehicle products generally extend for the entire life of the platform . several of the major truck makers have upgraded their truck platforms and we believe we have maintained our share of content in these platforms . we continue to pursue opportunities to expand our content . demand for our heavy-duty ( or `` class 8 `` ) truck products is generally dependent on the number of new heavy-duty trucks manufactured in north america , which in turn is a function of general economic conditions , interest rates , changes in government regulations , consumer spending , fuel costs , freight costs , fleet operators ' financial health and access to capital , used truck prices and our customers ' inventory levels . new heavy-duty truck demand has historically been cyclical and is particularly sensitive to the industrial sector of the economy , which generates a significant portion of the freight tonnage hauled by commercial vehicles . north american heavy-duty truck production was 342,000 units in 2019. according to a february 2020 report by act research , a publisher of industry market research , north american class 8 production levels are expected to decrease to 225,000 units in 2020 , steadily increase to 340,000 units in 2023 and then decline to 246,000 units in 2024. act research estimated that the average age of active north american class 8 trucks was 6.4 and 6.6 years in 2019 and 2018 , respectively . as vehicles age , maintenance costs typically increase . act research forecasts that the vehicle age will decline as aging fleets are replaced . 35 north american medium-duty ( or `` class 5-7 `` ) truck production steadily increased from 249,000 units in 2017 to 281,000 units in 2019 . according to a february 2020 report by act research , north american class 5-7 truck production is expected to decrease to 249,000 units in 2020 , steadily increase to 274,000 units in 2023 and then decline to 268,000 units in 2024. we primarily participate in the class 6 and 7 portion of the medium-duty truck market . demand for our construction equipment products is dependent on vehicle production . demand for new vehicles in the global construction equipment market generally follows certain economic conditions around the world . our products are primarily used in the medium- and heavy-duty construction equipment markets ( vehicles weighing over 12 metric tons ) . demand in the medium- and heavy-duty construction equipment market is typically related to the level of large scale infrastructure development projects , such as highways , dams , harbors , hospitals , airports and industrial development , as well as activity in the mining , forestry and commodities industries . the construction markets we serve in north america , europe and asia have declined . story_separator_special_tag moreover , results for the year ended december 31 , 2018 include a $ 4.2 million tax benefit recorded as an adjustment to the $ 4.0 million provisional tax expense accrued during the year ended december 31 , 2017 for the estimated impact of the deemed repatriation of accumulated untaxed earnings of the company 's foreign subsidiaries . the $ 4.2 million tax benefit is primarily attributable to foreign tax credits that were generated as a result of the deemed repatriation of accumulated untaxed earnings of the company 's foreign subsidiaries which were not provided for in the provisional $ 4.0 million tax expense recorded during the year ended december 31 , 2017 due to the lack of regulatory guidance on how certain provisions of the u.s. tax reform should be implemented . excluding the non-recurring impact of the u.s. tax reform , our provision for income taxes would have been $ 12.3 million for the year ended december 31 , 2018 compared to $ 3.9 million for the year ended december 31 , 2017. the year over year change in tax provision , excluding the impact of the u.s. tax reform , was primarily attributable to the increase in worldwide pre-tax earnings during the year ended december 31 , 2018 and unfavorable impact of the new global intangible low-taxed income rules enacted under the u.s. tax reform . s egment r esults electrical systems segment results the table below sets forth certain electrical systems segment operating data for the periods indicated ( dollars are in thousands ) : 40 replace_table_token_10_th revenues . the increase in electrical systems segment revenues in 2018 compared to 2017 is primarily a result of : a $ 63.0 million , or 33 % , increase in oem north american md/hd truck revenues ; a $ 11.0 million , or 13 % , increase in oem construction equipment revenues ; a $ 10.0 million , or 23 % , increase in aftermarket revenues ; a $ 3.6 million , or 4 % , increase in other revenue ; and a $ 9.2 million , or 41 % , decrease in oem recreational and specialty revenues . electrical systems segment 2018 revenues were favorably impacted by foreign currency exchange translation of $ 4.5 million , which is reflected in the changes in revenue above . gross profit . the increase in gross profit was primarily the result of the increase in sales volume . included in gross profit is cost of revenues , which increase d $ 58.3 million , or 15.2 % , as a result of an increase in raw material and purchased component costs of $ 47.5 million , wages and benefits of $ 5.8 million and overhead expenses of $ 5.0 million . commodity and other material inflationary pressures and difficult labor markets adversely affected cost of revenues . cost control and cost recovery initiatives , including pricing adjustments , reduced the impact of these cost pressures on gross profit . the year ended december 31 , 2017 , included costs of approximately $ 10.0 million arising from a labor shortage in our north american wire harness business and $ 1.8 million in charges relating to facility restructuring and related costs , which was completed in late 2017. there were no facility restructuring and related costs in 2018 . as a percentage of revenues , gross profit was 13.9 % for the year ended december 31 , 2018 compared to 11.7 % for the year ended december 31 , 2017 . selling , general and administrative expenses . electrical systems segment sg & a expenses decreased $ 0.4 million , or 2.3 % , in 2018 compared to 2017 , notwithstanding the increase in revenues , reflecting a focus on cost discipline . global seating segment results the table below sets forth certain global seating segment operating data for the periods indicated ( dollars are in thousands ) : replace_table_token_11_th revenues . the increase in global seating segment 2018 revenue is primarily a result of : a $ 43.4 million , or 34 % , increase in oem north american md/hd truck revenues ; a $ 13.9 million , or 17 % , increase in oem construction equipment revenues ; a $ 7.2 million , or 9 % , increase in aftermarket revenues ; and a $ 3.5 million , or 9 % , increase in revenues other revenues . global seating segment 2018 revenues were favorably impacted by foreign currency exchange translation of $ 3.6 million , which is reflected in the changes in revenue above . gross profit . the increase in gross profit was primarily the result of the increase in sales volume . included in gross profit is cost of revenues , which increased $ 54.5 million , or 18.9 % , as a result of an increase in raw material and purchased component costs 41 of $ 42.0 million , wages and benefits of $ 4.8 million and overhead expenses of $ 7.7 million . commodity and other material inflationary pressures and difficult labor markets adversely affected cost of revenues . cost control and cost recovery initiatives , including pricing adjustments , reduced the impact of these cost pressures on gross profit . as a percentage of revenues , gross profit was 13.6 % for the year ended december 31 , 2018 compared to 12.4 % for the year ended december 31 , 2017 . selling , general and administrative expenses . global seating segment sg & a expenses increased $ 0.8 million , or 3.9 % , on a 20.6 % increase in revenues in 2018 compared to 2017 , reflecting a focus on cost discipline . story_separator_special_tag href= `` https : //www.sec.gov/archives/edgar/data/0001290900/000162828020003659/ # s992e640146fa5f80a11ccbd8f78fb749 `` style= `` font-family : inherit ; font-size:10pt ; font-weight : bold ; `` > and recognize a cumulative-effect transition adjustment to the opening balance of retained earnings in the period of adoption resulting in a cumulative effect as of january
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources during the year ended december 31 , 2019 , the company borrowed under its revolving credit facility ; however , as of year end the company did not have any outstanding borrowings under the facility . at december 31 , 2019 , the company had liquidity of $ 94.6 million ; $ 39.5 million of cash and $ 55.1 million availability from its revolving credit facility . we intend to allocate resources consistent with the following priorities : ( 1 ) to provide liquidity ; ( 2 ) to invest in growth ; ( 3 ) to reduce debt ; and ( 4 ) to return capital to our stockholders . cash flows our primary source of liquidity during the year ended december 31 , 2019 was cash and availability under our revolving credit facility . we believe that these sources of liquidity will provide adequate funds for our working capital needs , planned capital expenditures and servicing of our debt through the next twelve months . however , no assurance can be given that this will be the case . we had no borrowings under our revolving credit facility at december 31 , 2019 . for the year ended december 31 , 2019 , cash provided by operations was $ 36.7 million compared to $ 41.0 million in the year ended december 31 , 2018 and $ 2.3 million in the year ended december 31 , 2017 . more than all of the decrease in cash provided by operations for the year ended december 31 , 2019 compared to 2018 was due to a decrease in net income partially offset by less cash used for working capital changes in 2019 than in 2018. the increase in cash provided by operations for the year ended december 31 , 2018 compared to 2017 was primarily due to an increase in net income . net cash used in investing activities was $ 58.0 million for the year ended december 31 , 2019 compared to $ 14.1 million for the year ended december 31 , 2018 , and $ 10.8 million for the year ended december 31 , 2017 .
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we purchased 75,726 partnership units during the year ended january 31 , 2012. we did not purchase any partnership units during the year ended january 31 , 2011. our expenses consist primarily of property taxes , insurance , corporate overhead , interest on mortgage debt , professional fees , depreciation of the hotels and hotel operating expenses . hotel operating expenses consist primarily of payroll , guest and maintenance supplies , marketing and utilities expenses . under the terms of its partnership agreement , the partnership is required to reimburse us for all such expenses . accordingly , management believes that a review of the historical performance of the operations of the hotels , particularly with respect to occupancy , which is calculated as rooms sold divided by total rooms available , average daily rate ( “ adr ” ) , calculated as total room revenue divided by number of rooms sold , and revenue per available room ( “ revpar ” ) , calculated as total room revenue divided by number of rooms available , is appropriate for understanding revenue from the hotels . in fiscal year 2012 , occupancy increased 6.77 % to 61.73 % from 54.96 % in the prior year . adr decreased by $ 0.01 to $ 71.20 in fiscal year 2012 from $ 71.21 in fiscal year 2011. the increase in occupancy and adr remaining stable resulted in an increase in revpar of $ 4.81 to $ 43.95 in fiscal year 2012 from $ 39.14 in fiscal year 2011. the increased occupancy and stable rates reflect the improving economy and travel industry during fiscal year 2012 . 5 the following table shows certain historical financial and other information for the periods indicated : replace_table_token_4_th no assurance can be given that occupancy , adr and revpar will not increase or decrease as a result of changes in national or local economic or hospitality industry conditions . we enter into transactions with certain related parties from time to time . for information relating to such related party transactions see the following : for a discussion of management and licensing agreements with certain related parties , see “ item 1 – business – management and licensing contracts . ” for a discussion of guarantees of our mortgage notes payable by certain related parties , see note 10 to our consolidated financial statements – “ mortgage notes payable . ” for a discussion of our equity sales and restructuring agreements involving certain related parties , see notes 3 , 4 and 5 to our consolidated financial statements – “ sale of ownership interests in albuquerque subsidiary , ” “ restructuring agreement for tucson hospitality properties subsidiary , ” and restructuring agreement for ontario hospitality properties subsidiary , ” respectively . for a discussion of other related party transactions , see note 16 to our consolidated financial statements – “ other related party transactions . ” results of operations of the trust for the year ended january 31 , 2012 compared to the year ended january 31 , 2011. overview a summary of operating results for the fiscal years ended january 31 is : replace_table_token_5_th our overall results in fiscal year 2012 were positively affected by the improving economic environment and the hospitality industry in particular . for the twelve months ended january 31 , 2012 , we had total revenue of $ 17.1 million compared to $ 15.7 million for the twelve months ended january 31 , 2011 , an increase of approximately $ 1.3 million . this increase in total revenue is primarily due to higher occupancies at the hotels , resulting in increased room revenues . during fiscal year 2013 , we expect improvements in occupancy and modest improvements in rates . total expenses of $ 18.3 million for the twelve months ended january 31 , 2012 reflect a decrease of approximately $ 123,000 compared to total expenses of $ 18.4 million for the twelve months ended january 31 , 2011. the decrease was primarily due to reduced payroll expense under the management contracts . general and administrative expenses include overhead charges for management , accounting , shareholder and legal services . general and administrative expenses of $ 3.1 million for the twelve months ended january 31 , 2012 increased $ 165,000 from $ 2.9 million for the twelve months ended january 31 , 2011 primarily due to increased occupancies at the hotels . sales and marketing expenses of $ 1.1 million for the twelve months ended january 31 , 2012 were consistent with the prior year . total operating expenses of $ 17.0 million for the twelve months ended january 31 , 2012 were consistent with the prior year . considering the increased occupancy , this reflects the benefits of improved cost control . total interest expense for the twelve months ended january 31 , 2012 was $ 1.5 million , a decrease of $ 61,000 from $ 1.6 million for the twelve months ended january 31 , 2011. the decrease was primarily due to reduced interest on mortgage notes payable , which decreased by $ 58,000 , and lower principal balances . we had a consolidated net loss before income taxes of $ 1.4 million for the twelve months ended january 31 , 2012 , compared to $ 2.7 million in the prior year . after deducting the loss allocated to the minority interest of $ 369,603 , we had a net loss attributable to controlling interests of approximately $ 1.1 million for fiscal year 2012 , which represented approximately $ 902,000 in additional income attributable to controlling interests , as compared to the twelve months ended january 31 , 2011. basic and diluted net loss per share was $ ( 0.13 ) for the twelve months ended january 31 , 2012 , compared to $ ( 0.23 ) for fiscal year 2011. the change from the prior year is primarily attributable to increased business levels at the hotel properties . story_separator_special_tag we began our long-term corporate strategy when we relinquished our reit income tax status in january 2004 , which had previously prevented us from providing management services to hotels . in june 2004 , we acquired our trademark license and management agreements and began providing management , trademark and reservations services to our hotels . the table below lists the hotel properties , their respective carrying and mortgage value and the estimated sales value for the hotel properties . replace_table_token_7_th the ontario mortgage balance was written down by $ 500,000 by the lender and we paid down the mortgage balance by $ 1.0 million pursuant to the terms of our loan modification agreement executed on february 14 , 2012. the balance after the modification and the $ 1.0 million repayment was $ 5,905,289. the listed asking price is the amount at which we would sell each of the hotels and is based on the original listed selling price adjusted to reflect recent hotel sales in the hotels ' areas of operation and current earnings of each of the hotels . the listed asking price is not based on appraisals of the properties . there is no assurance that the listed sales price for the individual hotel properties will be realized . however , our management believes that these values are reasonable based on local market conditions and comparable sales . changes in market conditions have in part resulted , and may in the future result , in our changing one or all of the sales prices . we provide trademark licensing , management , reservation and advertising services to all the hotel properties listed above and expect to continue the trademark licensing services , which include the reservation and advertising services , and or continue the management services , which also include the reservation and advertising services , after the hotels are sold . if any or all of these hotel properties are sold , our future management and or licensing fees could be reduced if the purchaser did not continue to retain innsuites hotels to provide those services . in the past , when we have sold hotel properties to unrelated third parties , we have continued to provide management and or trademark licensing and reservation services after a sale . however , there can be no assurance that we will be able to successfully do so in the future . as part of the board study for 2008-2009 , greater emphasis has been placed on priority for additional management , trademark and reservations fee income . we have determined that it is easier to sell management contracts when the trademark services are also provided . as part of the emphasis on trademark services , we have developed two trademark packages . the first is the “ traditional innsuites hotels & suites ” regional package and the second is the “ innsuites boutique hotel collection , ” which now includes three affiliate hotels managed by us , the five trust hotels and fifty-one unrelated hotels . sales and marketing for the expansion of the innsuites boutique hotel collection are being handled internally . 9 share repurchase program for information on the trust 's share repurchase program , see part ii , item 5 . “ market for the trust 's shares , related shareholder matters and trust purchases of shares . ” off-balance sheet financings and liabilities other than lease commitments and legal contingencies incurred in the normal course of business , we do not have any off-balance sheet financing arrangements or liabilities . we do not have any majority-owned subsidiaries that are not included in our consolidated financial statements . see note 2 - “ new accounting pronouncements ” for a discussion of new accounting interpretations with respect to variable interest entities and the impact of such interpretations on us . critical accounting policies and estimates we believe that the policies we follow for the valuation of our hotel properties , which constitute the majority of our assets , are our most critical policies . the financial accounting standards board ( “ fasb ” ) has issued authoritative guidance related to the impairment or disposal of long-lived assets , codified in asc topic 360-10-35 , which we apply to determine when it is necessary to test an asset for recoverability . on an events and circumstances basis , we review the carrying value of our hotel properties . we will record an impairment loss and reduce the carrying value of a property when anticipated undiscounted future cash flows and the current market value of the property do not support its carrying value . in cases where we do not expect to recover the carrying cost of hotel properties held for use , we will reduce the carrying value to the fair value of the hotel , as determined by a current appraisal or other acceptable valuation methods . we did not recognize impairment loss in fiscal years 2012 or 2011. as of january 31 , 2012 , our management does not believe that the carrying values of any of its hotel properties are impaired . inflation we rely entirely on the performance of the hotels and innsuites hotels ' ability to increase revenue to keep pace with inflation . operators of hotels in general and innsuites hotels in particular can change room rates quickly , but competitive pressures may limit innsuites hotels ' ability to raise rates as fast as or faster than inflation . average daily rate per room declined $ 0.01 in the most recent fiscal year ended january 31 , 2012. forward-looking statements certain statements in this form 10-k , including statements containing the phrases “ believes , ” “ intends , ” “ expects , ” “ anticipates , ” “ predicts , ” “ projects , ” “ will be , ” “ should be , ” “ looking ahead , ” “ may ” or similar words , constitute “ forward-looking statements
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources overview our principal source of cash to meet our cash requirements , including distributions to our shareholders , is our share of the partnership 's cash flow , quarterly distributions from albuquerque , new mexico hotel property and our direct ownership of the yuma , arizona property . the partnership 's principal source of revenue is hotel operations for the two hotel properties it owns and quarterly distributions from the tucson , arizona property . our liquidity , including our ability to make distributions to our shareholders , will depend upon our ability and the partnership 's ability to generate sufficient cash flow from hotel operations . hotel operations are significantly affected by occupancy and room rates at the hotels with occupancy significantly increasing and adr remaining stable during fiscal year 2012 , our ability to manage costs , and changes in the number of available suites caused by acquisition and disposition activities . results are also significantly impacted by overall economic conditions and conditions in the travel industry . unfavorable changes in these factors negatively impact hotel room demand and pricing , which reduces our profit margins on rented suites . in past years , we have relied on our cash flows from operations and hotel refinancing to meet our financial obligations as they come due .
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the second category , referred to as trading activities , which is included in adjusted earnings , represents the net unrealized effect of actively traded positions entered into to take advantage of expected market price movements and all other commodity hedging activities . at fpl , substantially all changes in the fair value of energy derivative transactions are deferred as a regulatory asset or liability until the contracts are settled , and , upon settlement , any gains or losses are passed through the fuel clause . see note 3. in 2011 , subsidiaries of neer completed the sales of their ownership interests in five natural gas-fired generating plants with a total generating capacity of approximately 2,700 mw located in california , virginia , alabama , south carolina and rhode island . in connection with these sales , a loss of approximately $ 151 million ( $ 98 million total after-tax with $ 92 million of this loss recorded by neer ) was recorded in nee 's consolidated statements of income , which was excluded from adjusted earnings . see note 4 - nonrecurring fair value measurements . in 2013 , an after-tax net gain from discontinued operations of $ 188 million ( $ 175 million recorded at neer and $ 13 million recorded at corporate and other ) was recorded in nee 's consolidated statements of income . the after-tax net gain from discontinued operations consisted of $ 231 million related to the 2013 sale of the ownership interest in a portfolio of hydropower generation plants and related assets located in maine and new hampshire , partly offset by a $ 43 million write down associated with the plan to sell ownership interests in oil-fired generating plants located in maine . the operations of these projects were not material to nee 's consolidated statements of income for 2013 , 2012 and 2011. see note 6. also in 2013 , neer recorded an impairment of $ 300 million and other related charges ( $ 342 million after-tax ) related to the spain solar projects in nee 's consolidated statements of income . see note 4 - nonrecurring fair value measurements and note 13 - spain solar projects . in order to make period to period comparisons more meaningful , in 2013 adjusted earnings also exc lude the after-tax net gain from discontinued operations , the after-tax charges associated with the impairment of the spain solar projects and , beginning in the third quarter of 2013 , the after-tax operating results associated with the spain solar projects . 44 the following table provides details of the adjustments to net income considered in computing nee 's adjusted earnings discussed above . replace_table_token_13_th ( a ) for 2013 , 2012 and 2011 , $ 54 million of losses , $ 37 million of losses and $ 193 million of gains , respectively , are included in neer 's net income ; the balance is included in corporate and other . ( b ) $ 92 million of the loss is included in neer 's net income ; the balance is included in corporate and other . ( c ) $ 175 million of the gain is included in neer 's net income ; the balance is included in corporate and other . the change in unrealized mark-to-market activity from non-qualifying hedges is primarily attributable to changes in forward power and natural gas prices , as well as the reversal of previously recognized unrealized mark-to-market gains or losses as the underlying transactions were realized . 2013 summary nee 's net income for 2013 was lower than 2012 by $ 3 million , or 9 cents per share , primarily due to lower results at neer , partly offset by higher results at fpl . the decline in earnings per share , assuming dilution , also reflects additional shares outstanding . during 2013 , nee and its subsidiaries commenced an enterprise-wide initiative focused mainly on improving productivity and reducing o & m expenses ( cost savings initiative ) , and management expects to continue those efforts over the near term . the transition costs associated with the cost savings initiative recorded by nee in 2013 amounted to approximately $ 72 million ( $ 44 million after-tax ) , of which $ 32 million of such after-tax costs were recorded by fpl and $ 12 million by neer . fpl 's increase in net income in 2013 was primarily driven by continued investments in plant in service while earning a 10.96 % regulatory roe on its retail rate base . in 2013 , fpl began operating under the 2012 rate agreement which increased revenues and cash flows without a material change in the earned regulatory roe . fpl completed the final stage of its generation uprate project at turkey point unit no . 4 , completed the installation of approximately 4.5 million smart meters and placed in service the approximately 1,210 mw natural gas-fired combined-cycle cape canaveral power plant . the fpsc approved 25-year natural gas transportation agreements , pending completion of pipeline construction by sabal trail and florida southeast connection ( see below ) . in 2013 , fpl maintained a typical residential 1,000 kwh bill that was the lowest among reporting electric utilities within florida and 28 % below the national average based on a rate per kwh as of july 2013. neer 's results decreased in 2013 prima rily due to the $ 342 million of after-tax charges associated with the impairment of the spain solar projects , partly offset by the $ 175 million net after-tax gain from discontinued operations and higher results from new investments . in 2013 , neer added approximately 374 mw of wind capacity in the u.s. and canada and 280 mw of solar capacity in the u.s. , and increased its backlog of contracted renewable development projects . story_separator_special_tag the change from december 31 , 2012 to december 31 , 2013 in deferred clause and franchise expenses and in deferred clause and franchise revenues was approximately $ 166 million and negatively affected nee 's and fpl 's cash flows from operating activities in 2013. the decrease in fuel cost recovery revenues in 2013 is primarily due to a lower average fuel factor , partly offset by gas sales associated with an incentive mechanism allowed under the 2012 rate agreement ( incentive gas sales ) and higher interchange power sales ( collectively , approximately $ 200 million ) . the decrease in fuel cost recovery revenues in 2012 is primarily due to a lower average fuel factor of approximately $ 558 million and lower energy sales of $ 43 million . the change in revenues from other cost recovery clauses and pass-through costs in 2013 and 2012 reflects higher revenues in 2012 associated with the fpsc 's nuclear cost recovery rule reflective of higher earnings on additional nuclear capacity investments 48 and the shift , in 2013 , to the collection of nuclear capacity recovery through retail base revenues ( see retail base above ) . the nuclear cost recovery rule provides for the recovery of prudently incurred pre-construction costs and carrying charges ( equal to the pretax afudc rate ) on construction costs and a return on investment for new nuclear capacity through levelized charges under the capacity clause . the same rule provides for the recovery of construction costs , once property related to the new nuclear capacity goes into service , through a retail base rate increase effective beginning the following january . other the increase in other revenues is primarily due to an increase in customer-related fees associated with the 2012 rate agreement . fpl expects revenues from wholesale sales to increase approximately $ 100 million in 2014 primarily due an increase in contracted load served under existing wholesale contracts . other items impacting fpl 's consolidated statements of income fuel , purchased power and interchange the major components of fpl 's fuel , purchased power and interchange expense are as follows : replace_table_token_15_th the decrease in fuel and energy charges in 2013 was primarily due to lower fuel and energy prices of approximately $ 306 million , reflecting additional nuclear generation in 2013 , which has a lower fuel cost , partly offset by gas purchased for incentive gas sales of $ 88 million and higher energy sales of $ 80 million . the additional nuclear generation in 2013 was primarily due to increased capacity of the nuclear units as a result of the nuclear uprate project and higher nuclear production reflecting lower outage duration in 2013. the decrease in fuel and energy charges in 2012 reflects lower fuel and energy prices of $ 526 million and lower energy sales of $ 54 million . o & m expenses fpl 's o & m expenses decreased $ 74 million in 2013 , reflecting lower cost recovery clause costs , which are essentially pass-through costs , of approximately $ 54 million , the absence of nuclear outage costs incurred during an outage in the prior year and company-wide reductions in o & m expenses , partly offset by $ 52 million of transition costs associated with the cost savings initiative . the ideas generated from the cost savings initiative are expected to keep fpl 's o & m expenses recovered through base rates flat through 2016 as compared to 2012. fpl 's o & m expenses increased $ 74 million in 2012 primarily due to higher employee-related and insurance costs , higher fossil plant outage costs primarily due to outage timing and higher cost recovery clause costs of approximately $ 21 million . depreciation and amortization expense the major components of fpl 's depreciation and amortization expense are as follows : replace_table_token_16_th the reserve amortization recorded in 2013 was lower than amortization recorded in the prior year primarily due to additional base revenues collected in 2013 associated with new retail base rates under the 2012 rate agreement . at december 31 , 2013 approximately $ 245 million of the reserve remains available for future amortization over the term of the 2012 rate agreement . beginning in 2013 , reserve amortization is recorded as a reduction of regulatory liabilities - accrued asset removal costs on the consolidated balance sheets . reserve amortization in 2013 did not offset the charges associated with the cost savings initiative . the increase in other depreciation and amortization expense recovered under base rates for 2013 and 2012 is primarily due to higher plant in service balances . the increase in depreciation and amortization recovered under cost recovery clauses and securitized storm-recovery cost amortization in 2013 and 2012 is primarily due to recoveries of prior year investment under the 49 fpsc 's nuclear cost recovery rule and higher plant in service balances associated with environmental projects under the environmental clause . taxes other than income taxes and other taxes other than income taxes and other increased $ 63 million in 2013 primarily due to higher property taxes , reflecting growth in plant in service balances , and higher payroll taxes . the decrease of $ 3 million in 2012 was primarily due to lower franchise fees and revenue taxes ( collectively , approximately $ 31 million ) , both of which are pass-through costs and reflect the decrease in fuel cost recovery clause revenues , partly offset by higher property taxes of $ 28 million reflecting growth in plant in service balances . interest expense the decrease in interest expense in 2013 is primarily due to lower average interest rates and higher afudc - debt , partly offset by higher average debt balances . the increase in interest expense in 2012 is primarily due to higher average debt balances , partly offset by lower average interest rates , lower interest expense on customer deposits reflecting lower rates and lower average customer deposit balances
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources nee and its subsidiaries , including fpl , require funds to support and grow their businesses . these funds are used for , among other things , working capital , capital expenditures , investments in or acquisitions of assets and businesses , payment of maturing debt obligations and , from time to time , redemption or repurchase of outstanding debt or equity securities . it is anticipated that these requirements will be satisfied through a combination of cash flows from operations , short- and long-term borrowings , the issuance , from time to time , of short- and long-term debt and equity securities and proceeds from the sale of differential membership interests , consistent with nee 's and fpl 's objective of maintaining , on a long-term basis , a capital structure that will support a strong investment grade credit rating . in 2013 , nee entered into a confirmation of forward sale transaction to issue 6.6 million shares to a forward counterparty , on a settlement date or dates to be specified at nee 's direction , which settlement will occur no later than december 31 , 2014. see note 10 - issuance of common stock and forward sale agreement . nee , fpl and neech rely on access to credit and capital markets as significant sources of liquidity for capital requirements and other operations that are not satisfied by operating cash flows . the inability of nee , fpl and neech to maintain their current credit ratings could affect their ability to raise short- and long-term capital , their cost of capital and the execution of their respective financing strategies , and could require the posting of additional collateral under certain agreements . cash flows nee 's and fpl 's increase in cash flows from operating activities for 2013 reflect an increase in retail base rates and charges associated with fpl 's 2012 rate agreement and , for nee , also reflects operating cash generated from approximately 1,500 mw of neer wind projects placed in service in 2012 , primarily in the fourth quarter .
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the increase in net income of $ 3.2 million for the twelve months ended december 31 , 2017 compared to the twelve months ended december 31 , 2016 was due primarily to a $ 14.3 million increase in net interest income , but was partially offset by a $ 3.5 million decrease in noninterest income , a $ 5.3 million increase in noninterest expense , a $ 0.5 million increase in provision for loan losses and a $ 1.8 million increase in income tax expense . during the twelve months ended december 31 , 2018 , return on average assets was 0.72 % , compared to 0.66 % for the twelve months ended december 31 , 2017 and 0.74 % for the twelve months ended december 31 , 2016 . during the twelve months ended december 31 , 2018 , return on average shareholders ' equity was 8.44 % , compared to 8.54 % for the twelve months ended december 31 , 2017 and 9.74 % for the twelve months ended december 31 , 2016 . in 2018 , the company recorded a $ 2.4 million write-down of a commercial other real estate owned property that consists of two buildings . the revaluation of the other real estate owned was driven by deteriorating conditions in the market where the property is located and the commencement of a marketing strategy to move the property off the company 's balance sheet . as a 25 result , this write-down decreased 2018 net income by $ 1.9 million and diluted earnings per share by $ 0.20. adjusted for the write-down , 2018 net income was $ 23.8 million and diluted earnings per share was $ 2.50. the write-down also decreased return on average assets by 6 basis points ( “ bps ” ) and return on average shareholders ' equity by 74 bps . adjusted for the write-down , 2018 return on average assets was 0.78 % and return on average shareholders ' equity was 9.18 % . refer to the “ reconciliation of non-gaap financial measures ” section of item 7 of part ii of this report , management 's discussion and analysis of financial condition and results of operations . in 2017 , as a result of the tax cuts and jobs act ( “ tax act ” ) , the company 's net deferred tax asset ( “ net dta ” ) was revalued as of december 31 , 2017. the value of the net dta was reduced by $ 1.8 million with the amount of the reduction recognized as additional income tax expense in 2017. consequently , this revaluation decreased 2017 diluted earnings per share by $ 0.26. adjusted for the net dta revaluation , 2017 net income was $ 17.1 million and diluted earnings per share were $ 2.39. the revaluation also decreased return on average assets by 8 bps and return on average shareholders ' equity by 104 bps . adjusted for the net dta revaluation , 2017 return on average assets was 0.74 % and return on average shareholders ' equity was 9.58 % . refer to the “ reconciliation of non-gaap financial measures ” section of item 7 of part ii of this report , management 's discussion and analysis of financial condition and results of operations . 26 consolidated average balance sheets and net interest income analyses for the periods presented , the following tables provide the average balances of interest-earning assets and interest-bearing liabilities and the related yields and cost of funds . the tables do not reflect any effect of income taxes . balances are based on the average of daily balances . nonaccrual loans are included in average loan balances . replace_table_token_4_th 1 yield on total interest-earning assets minus cost of total interest-bearing liabilities 2 net interest income divided by average interest-earning assets 3 on a fully-taxable equivalent ( `` fte `` ) basis assuming a 21 % tax rate in 2018 and a 35 % tax rate in 2017 and 2016. refer to the `` reconciliation of non-gaap financial measures `` section of item 7 of part ii of this report , management 's discussion and analysis of financial condition and results of operations 27 rate/volume analysis the following table illustrates the impact of changes in the volume of interest-earning assets and interest-bearing liabilities and interest rates on net interest income for the periods indicated . the change in interest not due solely to volume or rate has been allocated in proportion to the absolute dollar amounts of the change in each . rate/volume analysis of net interest income twelve months ended december 31 , 2018 vs. december 31 , 2017 due to changes in twelve months ended december 31 , 2017 vs. december 31 , 2016 due to changes in ( amounts in thousands ) volume rate net volume rate net interest income loans , including loans held-for-sale $ 29,126 $ ( 509 ) $ 28,617 $ 22,580 $ ( 1,169 ) $ 21,411 securities – taxable ( 212 ) 806 594 2,077 633 2,710 securities – non-taxable ( 49 ) 73 24 897 33 930 other earning assets 789 746 1,535 85 662 747 total 29,654 1,116 30,770 25,639 159 25,798 interest expense interest-bearing deposits 9,117 9,392 18,509 5,726 2,396 8,122 other borrowed funds 1,855 2,121 3,976 3,458 ( 75 ) 3,383 total 10,972 11,513 22,485 9,184 2,321 11,505 increase ( decrease ) in net interest income $ 18,682 $ ( 10,397 ) $ 8,285 $ 16,455 $ ( 2,162 ) $ 14,293 2018 v. 2017 net interest income for the twelve months ended december 31 , 2018 was $ 62.3 million , an increase of $ 8.3 million , or 15.3 % , compared to $ 54.0 million for the twelve months ended december 31 , 2017 . story_separator_special_tag in 2018 , both of these initiatives contributed to the increase in total loans as public finance and healthcare finance balances were $ 706.3 million and $ 117.0 million , respectively , at december 31 , 2018. single tenant lease financing had sustained production with balances increasing $ 116.1 million , or 14.5 % , during 2018 as market conditions for this product remained favorable and the company expanded its relationships with borrowers and financing partners . residential mortgage balances increased $ 100.0 million , or 33.3 % , during 2018 due primarily to growth in the company 's local residential construction-to-permanent loan origination efforts . additionally , other consumer loans increased $ 52.2 million , or 23.0 % , during 2018 due to increased originations in horse trailer and recreational vehicle loans . the company completed sales of single tenant lease financing loans , totaling $ 41.1 million in the aggregate in 2018 , resulting in a gain of $ 0.5 million , and totaling $ 24.7 million in the aggregate in 2017 , resulting in a gain of $ 0.4 million . the company also completed sales of portfolio mortgage loans , which consisted of jumbo fixed and adjustable rate mortgages , and supplemented its conventional held-for-sale mortgage production during 2017. these sales totaled $ 42.3 million in the aggregate in 2017 and resulted in a $ 0.3 million gain . loan maturities and rate sensitivity the following table shows the contractual maturity distribution intervals of the outstanding loans in our portfolio as of december 31 , 2018 . replace_table_token_10_th the following table shows the rate sensitivity of the outstanding loans in our portfolio by the contractual maturity distribution intervals as of december 31 , 2018 . beginning in 2017 , the company began hedging certain long-term fixed rate loans with interest rate swaps . refer to note 17 to the company 's consolidated financial statements for further information on derivative financial instruments . the following table does not include the effect of interest rate swaps on fixed-rate loans that have been hedged . replace_table_token_11_th 34 loan approval procedures and authority our lending activities follow written , non-discriminatory policies with loan approval limits approved by the board of directors of the bank . loan officers have underwriting and approval authorization of varying amounts based on their lending experience and product type . additionally , based on the amount of the loan , multiple approvals may be required . based on the company 's legal lending limit , the maximum the bank could lend to any one borrower at december 31 , 2018 was $ 45.6 million . our goal is to have a well-diversified and balanced loan portfolio . in order to manage our loan portfolio risk , we establish concentration limits by borrower , product type , industry and geography . to supplement our internal loan review resources , we have engaged independent third-party loan review groups , which are a key component of our overall risk management process related to credit administration . asset quality replace_table_token_12_th a loan is designated as impaired , in accordance with the impairment accounting guidance when , based on current information or events , it is probable that the company will be unable to collect all amounts due ( principal and interest ) according to the contractual terms of the loan agreement . payments with delays generally not exceeding 90 days outstanding are not considered impaired . certain nonaccrual and substantially all delinquent loans more than 90 days past due may be considered to be impaired . generally , loans are placed on nonaccrual status at 90 days past due and accrued interest is reversed against earnings , unless the 35 loan is well secured and in the process of collection . the accrual of interest on impaired and nonaccrual loans is discontinued when , in management 's opinion , the borrower may be unable to meet payments as they become due . impaired loans include nonperforming loans but also include loans modified in troubled debt restructurings ( “ tdrs ” ) where concessions have been granted to borrowers experiencing financial difficulties . these concessions could include a reduction in the interest rate on the loan , payment extensions , forgiveness of principal , forbearance , or other actions intended to maximize collection . nonperforming loans are comprised of total nonaccrual loans and loans 90 days past due and accruing . nonperforming assets include nonperforming loans , other real estate owned and other nonperforming assets , which consist of repossessed assets . nonperforming assets also included investments that were classified as other-than-temporarily impaired . troubled debt restructurings replace_table_token_13_th total nonperforming assets decreased $ 2.4 million , or 40.5 % , from december 31 , 2017. the decrease in total nonperforming assets was due primarily to a $ 2.4 million write-down of one commercial other real estate owned property . the revaluation of the other real estate owned was driven by deteriorating conditions in the market where the property is located and the commencement of a marketing strategy to move the property off the company 's balance sheet . total nonperforming loans increased less than $ 0.1 million compared to december 31 , 2017. the ratio of nonperforming loans to total loans decreased to 0.03 % as of december 31 , 2018 compared to 0.04 % as of december 31 , 2017 . the ratio of nonperforming assets to total assets decreased to 0.10 % as of december 31 , 2018 compared to 0.21 % as of december 31 , 2017 . as of december 31 , 2018 and december 31 , 2017 , the company had the one aforementioned commercial property in other real estate owned with a carrying value of $ 2.1 million and $ 4.5 million , respectively . this balance primarily consists of a property with two buildings which are residential units adjacent to a university campus . as of december 31 , 2018 and 2017 , the
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources while the company believes it has sufficient liquidity and capital resources to meet its cash and capital expenditure requirements for at least the next twelve months , including any cash dividends it may pay , the company intends to continue pursuing its growth strategy , which may require additional capital . if the company is unable to secure such capital at favorable terms , its ability to execute its growth strategy could be adversely affected . liquidity management is the process used by the company to manage the continuing flow of funds necessary to meet its financial commitments on a timely basis and at a reasonable cost while also maintaining safe and sound operations . liquidity , represented by cash and investment securities , is a product of the company 's operating , investing and financing activities . the primary sources of funds are deposits , principal and interest payments on loans and investment securities , maturing loans and investment securities , access to wholesale funding sources and collateralized borrowings . while scheduled payments and maturities of loans and investment securities are relatively predictable sources of funds , deposit flows are greatly influenced by interest rates , general economic conditions and competition . therefore , the company supplements organic deposit growth and enhances interest rate risk management through brokered deposits and borrowings . the company maintains cash and investment securities that qualify as liquid assets to maintain adequate liquidity to ensure safe and sound operations and meet its financial commitments . at december 31 , 2018 , on a consolidated basis , the company had $ 670.1 million in cash and cash equivalents and investment securities available-for-sale , and $ 18.3 million in loans held-for-sale that were generally available for its cash needs .
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sjap and qzh are both variable interest entities over which we exercise significant control . ( b ) . the operation of hunan shenghua a power agriculture co. ltd. ( “ hsa ” ) in manufacturing and sales of organic fertilizer . · 2. plantation division refers to the operations of jiangmen city heng sheng tai agriculture development co. ltd. ( “ jhst ” ) in the hu plantation business where dragon fruit flowers ( dried and fresh ) and immortal vegetables are sold to wholesale and retail markets . jhst 's financial statements are consolidated into the financial statements of macau eiji company ltd. ( “ meiji ” ) as one entity . · 3. fishery division refers to the operations of capital award inc. ( “ capital award ” or “ ca ” ) covering its engineering , technology and consulting service management of fishery farms and seafood sales operations and marketing , where ; capital award generates revenues from providing engineering consulting services as turnkey contractors to owners and developers of fishery projects that are being designed and engineered into turnkey contracts by capital award in china using its a power module technology systems ( “ apm ” ) as follows : - 53 - ( a ) . engineering and technology services ; via consulting and service contracts ( “ csc 's ” ) for the development , construction , and supply of plant and equipment , and management of fishery ( and prawn or shrimp ) farms and related business operations . ( b ) . seafood sales from ca 's projected farms capital award generates following sales revenues from : ( 1 ) . sales to jfd ( “ fish farm 1 ” or “ ff1 ” ) , which is a sino foreign joint venture company ( “ sfjvc ” ) , and sales derived from seafood sold by jfd ( currently , only the jfd subsidiary is a sfjvc ) , being consolidated into our wholly owned hong kong subsidiary tri-way industries ltd. ( “ trw ” ) as one entity . ff1 generates sales from its production of ( a ) its in-door apm farm with 16 apm production units and ( b ) its open dam farms producing fish and prawns from 310 mu ( 52 acres ) of land leased from zhongshan a power prawn culture farms development co. ltd. ( “ zsapp , ” “ prawn farm 2 ” or “ pf2 ” ) . ( 2 ) . sales to and sales derived from seafood from the unincorporated companies , including enping city a power prawn culture development co. ltd. ( “ ebapcd , ” “ prawn farm 1 ” or “ pf1 ” ) and zsapp , are accounted for independently as follows : ca and pf1 : ( a ) ca purchases prawn and or fish fingerling and feed stocks from third party suppliers and resells them to pf1 at variable small or no profit margins and ( b ) ca purchases matured prawns and fish from pf1 and sells to third parties ( wholesale markets ) pf1 generates sales from its production of ( a ) its indoor apm farm with 4 apm production units in 2014 and 16 apm production units from q3 2015 and ( b ) its open dam farms producing fish and prawns from a 290 mu ( or 48 acres ) of land leased from pf2 . ca and pf2 : ( a ) ca earns commission from the sale of prawn fingerlings that are sold by pf2 to third parties , and in this respect pf2 produces its own prawn fingerlings as compared to ca 's purchasing them from pf2 and reselling them to pf1 or ff1 , as described above , and ( b ) ca purchases matured prawns and fish from pf2 and sells to third parties ( wholesale markets ) . pf2 has 6 indoor apm production units producing mainly prawn fingerling and an open dam farms situated on about 400 mu ( about 66 acres ) producing prawns and fish . · 4. cattle farm division refers to the operations of cattle farm 1 under jiangmen city hang mei cattle farm development co. ltd ( “ jhmc ” ) where cattle are sold live to third party livestock wholesalers who sell them mainly to guangzhou and beijing livestock wholesale markets . the financial statements of jhmc are consolidated into meiji as one entity along with meiji 's operation in the consulting and service for development of other cattle farms ( e.g . , cattle farm 2 ) or related projects . · 5. corporate & others division refers to the business operations of sino agro food , inc. , including import/export business and consulting and service operations provided to projects that are not included in the above categories , and not limited to corporate affairs . - 54 - consolidated results of operations part a. audited income statements of consolidated results of operations for year ended december 31 201 , compared to the year ended december 31 , 2014 and a ( 1 ) income statements ( audited ) replace_table_token_9_th this part a discusses and analyzes certain items ( marked with notes ) that we believe assist stakeholders in obtaining a better understanding on the company 's results of operations and financial condition : - 55 - overview of full fiscal year 2015 compared to full fiscal 2014 ( as illustrated in table a ( 1 ) above ) : notes to table a.1 's 1 , 2 & 3 : ( a ) : information of note ( 1 , 2 & 3 ) sales , cost of sales and gross profit and analysis : the company 's revenues were generated from ( a ) sale of goods and ( b ) consulting and services provided in project and business developments covering technology transfers , engineering , construction , supervision , training , story_separator_special_tag however this sector has been increasing its imported beef and mutton trades and developing more supply sources from other countries ( other than madagascar ) with the aim to improve its bottom line from 2016 , onward . - 64 - replace_table_token_21_th l 5.a . engineering technology consulting and services : notes to table a ( 1 ) note ( 1.1 , 2.1 and 3.1 ) table ( a.5 ) below shows the revenue , cost of services and gross profit generated from consulting , services , commission and management fees for years 2015 , 2014 and 2013. replace_table_token_22_th revenues ( consulting , service , commission and management fee ) : revenues increased by $ 10,586,638 or 13 % from $ 81,680,292 for the year ended december 31 , 2014 to $ 92,266,930 for the year ended december 31 , 2015. the increase was primarily due to an increase in revenue from the construction and development work done on the new zhongshan prawn project of $ 65,446,497 , which contributed 70.9 % of total revenue . ca ( fishery ) : revenue from fishery increased by $ 11,730,648 or 15 % from $ 76,750,308 for the year ended december 31 , 2014 to $ 88,480,956 for the year ended december 31 , 2015. the increase was due primarily to the increase of work in progress from the zhongshan new prawn project . - 65 - siaf ( corporate ) : revenue from corporate decreased by $ 1,144,010 or 23 % from $ 4,929,984 for the year ended december 31 , 2014 to $ 3,785,974 for the year ended december 31 , 2015. the reason for the decrease is due to the reduced pace of work in progress for the construction of restaurant related work during 2015. cost of services ( consulting , service , commission and management fee ) cost of services for consulting , service , commission and management fee increased by $ 12,804,450 or 29 % from $ 44,241,900 for the year ended december 31 , 2014 to $ 57,046,350 for the year ended december 31 , 2015. the increase was primarily due to the increase of work in progress on the zhongshan new prawn project . ca ( fishery ) : cost of services from fishery increased by $ 16,254,178 or 41 % from $ 39,387,359 for the year ended december 31 , 2014 to $ 55,641,537 for the year ended december 31 , 2015. the increase was due primarily due to the increase of work in progress from the zhongshan new prawn project . siaf ( corporate ) : cost of services from corporate decreased by $ 3,449,728 or 71 % from $ 4,854,541 for the year ended december 31 , 2014 to $ 1,404,813 for the year ended december 31 , 2015. the reason for the decrease is because the slow progress for the construction of restaurant related work during the year of 2015. gross profit ( consulting , service , commission and management fee ) gross profit of consulting , service , commission and management fees decreased by $ 2,217,812 or 6 % , from $ 37,438,392 for the year ended december 31 , 2014 to $ 35,220,580 for the year ended december 31 , 2015. ca ( fishery ) : gross profit from fishery decreased by $ 4,523,530 or 12 % from $ 37,362,949 for the year ended december 31 , 2014 to $ 32,839,419 for the year ended december 31 , 2015. the reason for the lower gross profit was primarily due to the lower margin derived from the zhongshan new prawn project that is a much bigger project compared with other farm projects that ca did previously . siaf ( corporate ) : gross profit from corporate increased by $ 2,305,718 from $ 75,443 for the year ended december 31 , 2014 to $ 2,381,161 for the year ended december 31 , 2015. the reason for the increase is because bulk of the costs was billed in the early stages of restaurant developments . - 66 - table ( a.6 ) below highlights on general information of ongoing consulting and services provided by capital award , meiji and siaf , respectively , as of december 31 , 2015 : name of the developments location of development designed capacity per year land area or built up area current phase & stage commencement date of development development 's completion date on or before contractual amount % of completion as of 31.12.2015 notes fish farm ( 1 ) enping city 1,200 mt 9,900 m2 fully operational july 2010 june 2011 $ 5.3 million fully operational prawn farm ( 1 ) enping city 2013=400mt 2014=800mt 2015=1200 mt 23,100 m2 2 phases and road work 2 phases and road work and phase 3 extension of grow-out farm & phase 4 demonstrated hydroponic farm phase 1 on june 2011 phase ( 2.1 ) phase ( 2.2 ) road work started aug. 2012 phase ( 1 ) on december 2012 phase ( 2 ) completed q1 2013 phase ( 1 ) $ 11.6 million phase ( 2 ) 6.39 million road work $ 2.94 million , phase 3 us $ 5.2 million & phase 4 us $ 1.6 million prawn farm ( 1 ) 's 14 apm tanks are in operation and , construction of the hydroponic farm is planned to start in q3 2016. fish farm ( 2 ) `` the fish & eel farm xin hui district , jiang men . 2014=800 mt 2015= 1600 mt 2016=2000mt 165,000 m2 3 phases phase 1 january 15 , 2012 bridge & road oct. 2012 phase ( 3 ) 2013 & ( 4 ) 2014 phase 1 june 2014 bridge & road dec. 2013 phase ( 3 ) & ( 4 ) 2015 phase ( 1 ) $ 8.73m bridge & road $ 2.48m phase ( 3 ) $ 4.38m phase ( 4 ) $ 10.63m phase ( 1 ) & bridge and road completed jan. 2013 phase (
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources as of december 31 2015 , unrestricted cash and cash equivalents amounted to $ 7,229,197 ( see notes to the consolidated financial statements ) , and our working capital as of december 31 , 2015 was $ 322,269,624. replace_table_token_43_th cash provided by operating activities amounted to $ 44,619,333 for the twelve months ended december 31 , 2015. this compared with cash provided by operating activities totaled $ 22,150,719 for the twelve months ended december 31 , 2014. the decrease in cash used in operations primarily resulted from the decrease of inventories of $ ( 16,880,714 ) for the twelve months ended december 31 , 2015 from $ ( 37,819,790 ) for the twelve months ended december 31 , 2014. cash used in investing activities totaled $ ( 54,148,427 ) for the twelve months ended december 31 , 2015. this compares with cash used in investing activities totaling $ ( 31,514,245 ) for the twelve months ended december 31 , 2014. the increase in cash flows used in investing activities primarily resulted from payment for construction of $ ( 49,532,030 ) for the twelve months ended december 31 , 2015 from $ ( 26,693,530 ) for the twelve months ended december 31 , 2014 .
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replace_table_token_9_th provision for credit losses the provision for credit losses is an income adjustment used to maintain the acl at a level deemed appropriate by management to absorb inherent losses on existing loans . the provision for credit losses was $ 18.9 million for the year ended december 31 , 2020 , an increase of $ 16.5 million compared to the year ended december 31 , 2019 , primarily due to the impact of the covid-19 pandemic , the sustained instability of the oil and gas industry , an increase in adversely graded loans and an increase in charge-offs . noninterest income the following table presents components of noninterest income for the years ended december 31 , 2020 and 2019 and the period-over-period changes in the categories of noninterest income : replace_table_token_10_th noninterest income was $ 14.8 million for the year ended december 31 , 2020 and $ 18.6 million for the year ended december 31 , 2019. the decrease in noninterest income during the year ended december 31 , 2020 , compared to the year ended december 31 , 2019 , was primarily due to earnings on bank-owned life insurance . during the year ended december 31 , 2020 , the company received nontaxable death proceeds of $ 2.0 million under the bank-owned life insurance policies and recorded a gain of $ 769,000 over the carrying value recorded . during the year ended december 31 , 2019 , the company received nontaxable death benefit proceeds of $ 4.7 million under bank-owned life insurance policies and a gain of $ 3.3 million over the carrying value recorded . in addition , deposit account service charges decreased due to a reduction in the amount of insufficient funds and overdraft fees charged on deposit accounts and lower transactional volumes . 50 table noninterest expense generally , noninterest expense is composed of employee expenses and costs associated with operating facilities , obtaining and retaining customer relationships and providing bank services . see further analysis of these changes in the related discussions that follow . replace_table_token_11_th noninterest expense was $ 92.1 million for the year ended december 31 , 2020 and $ 90.1 million for the year ended december 31 , 2019. the increase in noninterest expense of $ 2.0 million between the year ended december 31 , 2020 and 2019 was primarily due to a $ 1.3 million increase in professional and director fees , a $ 934,000 increase in data processing and software costs , a $ 660,000 increase in regulatory fees , partially offset by an $ 807,000 decrease in salaries and employee benefits . the increase in professional and director fees during the year ended december 31 , 2020 was primarily due to $ 3.9 million in consulting related fees associated with bsa/aml compliance matters , compared to $ 18,000 during the year ended december 31 , 2019 , partially offset by lower legal fees of $ 721,000 during the year ended december 31 , 2020 , compared to $ 3.7 million during the year ended december 31 , 2019. income tax expense income tax expense was $ 6.0 million and $ 11.6 million for the years ended december 31 , 2020 and 2019 , respectively . the amount of income tax expense for each year was impacted by the amounts of pre-tax income , tax-exempt income and other nondeductible expenses . income tax expense and effective tax rates for the periods shown below were as follows : replace_table_token_12_th the differences between the federal statutory rate of 21 % and the effective tax rates presented in the table above were primarily related to tax-exempt interest and bank-owned life insurance . the decrease in the effective rate for the year ended december 31 , 2020 was primarily due to tax-exempt gains related to the bank-owned life insurance . 51 table year ended december 31 , 2019 vs year ended december 31 , 2018 net income for the year ended december 31 , 2019 increased 6.8 % , compared to the year ended december 31 , 2018. this increase was primarily due to increased net interest income and noninterest income , partially offset by a higher provision for credit losses and higher noninterest expense . see further analysis of these changes in the related discussions that follow . replace_table_token_13_th net interest income net interest income for the year ended december 31 , 2019 was $ 136.0 million , compared to $ 124.7 million for the year ended december 31 , 2018 , an increase of $ 11.3 million , or 9.1 % . net interest income increased in 2019 , compared to 2018 , primarily due to increases in average loan yields and volume , partially offset by increased average rates on interest-bearing deposits and higher average federal home loan bank advances . loan growth during 2019 was funded through increased interest-bearing deposits , noninterest-bearing deposits and federal home loan bank advances . during 2019 , the costs of interest-bearing deposits trended upward due to competitive stress on rates but remain a low-cost source of funds , as compared to other sources of funds such as debt . 52 table the following table presents for the periods indicated , average outstanding balances for each major category of interest-earning assets and interest-bearing liabilities , the interest income or interest expense and the average yield or rate for the periods indicated . replace_table_token_14_th ( 1 ) includes average outstanding balances of loans held for sale . ( 2 ) net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities . ( 3 ) net interest margin is equal to net interest income divided by average interest-earning assets . ( 4 ) tax equivalent adjustments of $ 1.0 million and $ 1.1 million for the years ended december 31 , 2019 and 2018 , respectively , were computed using a federal income tax rate of 21 % . story_separator_special_tag premises and equipment , net premises and equipment , net increased $ 10.3 million during the year ended december 31 , 2020 , primarily due to the purchase of the land and building of a branch that was previously leased for $ 10.7 million . 63 table derivative financial instruments the company has outstanding interest rate swap contracts with certain customers and equal and offsetting interest rate swaps with other financial institutions entered into at the same time . these interest rate swap contracts are not designated as hedging instruments for mitigating interest rate risk . the objective of the transactions is to allow customers to effectively convert a variable rate loan to a fixed rate . at december 31 , 2020 and 2019 , the company had 23 and 19 interest rate swap agreements outstanding with borrowers and financial institutions , respectively . these derivative instruments are not designated as accounting hedges and changes in the net fair value are recognized in other noninterest income . fair value amounts are included in other assets and other liabilities . the company entered into a credit risk participation agreement with another financial institution during the year ended december 31 , 2020. this agreement is associated with an interest rate swap related to a loan for which the company is the lead agent bank and provides credit protection to the company should the borrower fail to perform under the terms of the interest rate swap agreement . the fair value of the agreement is determined based on the market value of the underlying interest rate swap adjusted for credit spreads and recovery rates . derivative instruments outstanding as of the dates shown below were as follows : replace_table_token_33_th deferred tax assets , net deferred income taxes are provided for differences in financial statement carrying amounts of assets and liabilities and their respective tax basis . the increase in deferred taxes , net during the year ended december 31 , 2020 primarily related to timing differences for the acl . please see “ part ii—item 8.—financial statements and supplementary data—note 20 . ” other assets other assets increased $ 12.3 million during the year ended december 31 , 2020 , primarily due to an increase in the fair value of interest rate swaps of $ 6.0 million as noted in the table above and a $ 4.6 million increase in interest receivable on loans , primarily due to interest that was deferred as part of the company 's assistance to borrowers impacted by the covid-19 pandemic . other liabilities other liabilities increased $ 9.8 million during the year ended december 31 , 2020 , primarily due to an increase in the fair value of interest rate swaps of $ 6.0 million as noted in the table above and a $ 3.8 million increase in the acl for unfunded commitments . the company 's unfunded commitments are standby letters of credit and commitments to extend credit that are not unconditionally cancellable by the company . see “ part ii—item 7.—management 's discussion and analysis— 64 table liquidity and capital resources—off-balance sheet arrangements . ” the liability associated with the acl for unfunded commitments was $ 4.2 million at december 31 , 2020 , compared to $ 378,000 at december 31 , 2019. the adoption of cecl increased the acl for unfunded commitments by $ 2.9 million . story_separator_special_tag style= `` font-family : 'times new roman ' , 'times ' , 'serif ' ; font-size:10pt ; font-style : normal ; font-weight : normal ; line-height:1.19 ; text-align : left ; `` > table commitments associated with outstanding standby letters of credit and commitments to extend credit expiring by period as of the dates indicated below were as follows : replace_table_token_37_th standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third-party . in the event of nonperformance by the customer , the company would be required to fund the commitment to the third-party , but the company has rights to the collateral underlying the commitment , which can include commercial real estate , physical plant and property , inventory , receivables , cash and or marketable securities . the company 's credit risk associated with issuing letters of credit is essentially the same as the risk involved in extending loan facilities to its customers . commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract . commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee . since many of the commitments may expire without being fully drawn upon , the total commitment amounts disclosed above do not necessarily represent future cash requirements . capital resources total shareholders ' equity increased to $ 546.5 million as of december 31 , 2020 , compared to $ 535.7 million as of december 31 , 2019. the increase of $ 10.7 million was primarily due to current year income of $ 26.4 million , a $ 4.4 million increase in other comprehensive income and $ 1.9 million of stock compensation expense , partially offset by $ 8.9 million paid to repurchase shares of common stock , $ 3.0 million due to the implementation of cecl and $ 9.9 million of dividends to common shareholders declared during 2020 . during the year ended december 31 , 2020 , the company repurchased 431,814 shares under its share repurchase programs at an average price of $ 20.62 per share and during the year ended december 31 , 2019 , the company repurchased 100 shares at an average price of $ 27.98 per share . shares repurchased during 2020 and 2019 were retired and returned to the status of authorized but unissued . as a general matter , fdic insured depository institutions and their holding companies are required to maintain minimum capital relative to the amount and types
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources liquidity liquidity measures the ability to meet current and future cash flow needs as they become due . liquidity involves having funds for operations on an ongoing basis , maintaining reserve requirements , supporting asset growth and acquisitions or reducing assets to meet deposit withdrawals and other payment obligations and manage unexpected events . the company 's primary source of funds has been customer deposits and the primary use of funds has been funding of loans . historically , the cost of the company 's deposits has been lower than other sources of funds available . as of december 31 , 2020 , the company had no exposure to future cash requirements associated with known uncertainties or capital expenditure of a material nature . the company monitors its liquidity and may seek to obtain additional financing to further support its business if necessary . the composition of funding sources and uses as a percentage of average total assets for the periods indicated was as follows : replace_table_token_34_th cash and cash equivalents as of december 31 , 2020 , cash and cash equivalents was $ 538.0 million , compared to $ 372.1 million at december 31 , 2019. the net increase of $ 165.9 million was primarily due to net deposit inflows of $ 449.4 million , partially offset by outflows to fund the $ 285.0 million increase in loans excluding loans held for sale .
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mueller co. we estimate approximately 70 % of mueller co. 's 2015 net sales were for repair and replacement directly related to municipal water infrastructure spending , approximately 25 % were related to residential construction activity and approximately 5 % were related to natural gas utilities . municipal spending in 2015 was relatively strong compared with the prior year period and economic forecasts predict this trend will continue . according to the u.s. bureau of economic analysis , state and local tax receipts for the quarter ended september 30 , 2015 were up year-over-year and , according to the u.s. department of labor , the trailing twelve-month average consumer price index for water and sewerage rates at september 30 , 2015 increased 4.5 % . however , water conservation efforts , particularly in areas impacted by recent drought conditions , have resulted in lower overall receipts for some u.s. water utilities . the year-over-year percentage change in housing starts is a key indicator of demand for mueller co. 's products sold in the residential construction market . in september 2015 , zelman & associates forecasted a 13 % increase in housing starts for calendar 2016 compared to the prior year . in october 2015 , blue chip consensus also forecasted a 13 % increase in housing starts for calendar 2016 compared to the prior year . we expect mueller co. 's net sales percentage growth in 2016 to be in the mid-single digits , with growth in key markets offset by anticipated unfavorable impacts from changes in canadian currency exchange rates and the divestiture of the municipal castings business in december 2014 . 26 index to financial statements anvil in 2015 , approximately 85 % of anvil 's net sales were generated by non-residential construction spending . several leading indicators related to non-residential construction appear to be signaling growth in this market . for example , the architectural billings index for september 2015 remained above 50 , which indicates growth , and blue chip consensus forecasted a 4.8 % increase in non-residential fixed investment in calendar 2016. sales to the oil & gas market accounted for approximately 10 % of anvil 's net sales in 2015 , down from 20 % in 2014. the trend in rig counts correlates with the direction of demand for anvil 's products that are sold into this market . according to baker hughes incorporated , u.s. land-based rig counts in early october 2015 represent a decline of approximately 58 % year-over-year . we expect anvil 's net sales percentage growth in 2016 to be in the low single digits , driven by the non-residential construction market . we believe anvil 's overall growth will continue to be impacted by an expected decline in net sales to its addressed oil & gas market on a year-over-year basis during the first half of the year , especially in the first quarter . based on current market conditions , we expect anvil 's net sales into this market during the second half of the year to be flat on a year-over-year basis . mueller technologies the municipal market is the key end market for the mueller technologies companies . these businesses are project-oriented and depend on customer adoption of their technology-based products and services . for 2016 , we entered the year with significantly higher ami backlog and projects awarded for mueller systems and higher projects under contract at echologics . we expect mueller technologies ' net sales percentage growth in 2016 to be approximately 10 % to 15 % . we also expect operating income to improve by approximately $ 7 million to $ 10 million . consolidated overall in 2016 for mueller water products , we expect year-over-year net sales percentage growth in the mid-single digits with stronger growth at the mueller co. and mueller technologies segments . we expect higher operating income and operating margin , driven primarily by a favorable mix of our higher-margin products at mueller co. 27 index to financial statements results of operations year ended september 30 , 2015 compared to year ended september 30 , 2014 replace_table_token_4_th consolidated analysis net sales for 2015 declined to $ 1,164.5 million from $ 1,184.7 million in the prior year period due primarily to lower shipment volumes of $ 16.7 million and unfavorable changes in canadian currency exchange rates of $ 10.7 million offset by improved pricing of $ 7.2 million . gross profit for 2015 of $ 347.3 million was essentially flat compared to $ 347.9 million in the prior year period . gross margin increased 40 basis points to 29.8 % in 2015 from 29.4 % in the prior year period due primarily to improved sales pricing . selling , general and administrative expenses ( “ sg & a ” ) for 2015 decreased to $ 216.9 million from $ 220.7 million in the prior year period . sg & a as a percentage of net sales was 18.6 % in both 2015 and in the prior year period . we have a tax-related receivable from walter energy from prior to our spin-off from walter in december 2006. walter filed a petition for reorganization under chapter 11 of the u.s. bankruptcy code in july 2015. as a result of this petition , we recorded a provision for doubtful accounts of $ 11.6 million in 2015 . 28 index to financial statements interest expense , net declined $ 22.0 million in 2015 compared to the prior year period due primarily to the debt refinancing we completed in november 2014 , which replaced the senior subordinated notes and the senior unsecured notes with the lower-rate term loan . also , debt principal outstanding declined by $ 45.0 million due to the november 2014 refinancing . story_separator_special_tag these estimates are based upon experience and on various other assumptions we believe to be reasonable under the circumstances . actual results may differ from these estimates . we consider an accounting estimate to be critical if changes in the estimate that are reasonably likely to occur over time or the use of reasonably different estimates could have a material impact on our financial condition or results of operations . we consider the accounting topics presented below to include our critical accounting estimates . revenue recognition we recognize revenue when delivery of a product or performance of a service has occurred and there is persuasive evidence of a sales arrangement , sales prices are fixed and determinable and collectability from the customers is reasonably assured . sales are recorded net of estimated discounts , returns and rebates . discounts , returns and rebates are estimated based upon current offered sales terms and historical return and allowance rates . receivables the estimated allowance for doubtful receivables is based upon judgments and estimates of expected losses and specific identification of problem accounts . significantly weaker than anticipated industry or economic conditions could impact customers ' ability to pay such that actual losses may be greater than the amounts provided for in this allowance . the periodic evaluation of the adequacy of the allowance for doubtful receivables is based on an analysis of prior collection experience , specific customer creditworthiness and current economic trends within the industries served . in circumstances where a specific customer 's inability to meet its financial obligation is known to us ( e.g . , bankruptcy filings or substantial downgrading of credit ratings ) , we record a specific allowance to reduce the receivable to the amount we reasonably believe will be collected . inventories we record inventories at the lower of first-in , first-out method cost or market value . inventory cost includes an overhead component that can be affected by levels of production and actual costs incurred . we evaluate the need to record adjustments for impairment of inventory at least quarterly . this evaluation includes such factors as anticipated usage , inventory levels and ultimate product sales value . inventory that , in the judgment of management , is obsolete or in excess of our normal usage is written-down to its estimated market value , if less than its cost . significant judgments must be made when establishing the allowance for obsolete and excess inventory . income taxes we recognize deferred tax liabilities and deferred tax assets for the expected future tax consequences of events that have been included in the financial statements or tax returns . deferred tax liabilities and assets are determined based on the differences between the financial statements and the tax basis of assets and liabilities , using enacted tax rates in effect for the years in which the differences are expected to reverse . a valuation allowance is provided to offset any net deferred tax assets when , based upon the available evidence , it is more likely than not that some or all of the deferred tax assets will not be realized . our tax balances are based on our expectations of future operating performance , reversal of taxable temporary differences , tax planning strategies , interpretation of the tax regulations currently enacted and rulings in numerous tax jurisdictions . we only record tax benefits for positions that we believe are more likely than not of being sustained under audit examination based solely on the technical merits of the associated tax position . the amount of tax benefit recognized for any position that meets the more likely than not threshold is the largest amount of the tax benefit that we believe is greater than 50 % likely of being realized . accounting for the impairment of long-lived assets including goodwill and other intangible assets we test indefinite-lived intangible assets for impairment annually ( or more frequently if events or circumstances indicate possible impairment ) . we performed this annual impairment testing at september 1 , and concluded that our indefinite-lived intangible assets were not impaired . we tested the indefinite-lived intangible assets for impairment using a “ royalty savings method , ” which is a variation of the discounted cash flow method . this method estimates a fair value by calculating an estimated discounted future cash flow stream from the hypothetical licensing of the indefinite-lived intangible assets . if this estimated fair value exceeds the carrying value , no impairment is indicated . this analysis is dependent on management 's best estimates of future operating results and the selection of reasonable discount rates and hypothetical royalty rates . significantly 37 index to financial statements different projected operating results could result in a different conclusion regarding impairment . no impairments would have been indicated for any discount rates and hypothetical royalty rates consistent with standard valuation methodologies considered reasonable by management . other long-lived assets , including finite-lived intangible assets , are amortized over their respective estimated useful lives and reviewed for impairment if events or circumstances indicate possible impairment . contingencies we are involved in litigation , investigations and claims arising out of the normal conduct of our business . we estimate and accrue liabilities resulting from such matters based on a variety of factors , including outstanding legal claims and proposed settlements ; assessments by counsel of pending or threatened litigation ; and assessments of potential environmental liabilities and remediation costs . we believe we have adequately accrued for these potential liabilities ; however , facts and circumstances may change and could cause the actual liability to exceed the estimates , or may require adjustments to the recorded liability balances in the future . as we learn new facts concerning contingencies , we reassess our position both with respect to accrued liabilities and other potential exposures . estimates particularly sensitive to future changes include contingent liabilities recorded for environmental remediation , tax and legal matters . estimated future
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash and cash equivalents were $ 113.1 million at september 30 , 2015 compared to $ 161.1 million at september 30 , 2014 . cash and cash equivalents decreased during 2015 as a result of cash used in financing of $ 99.0 million , primarily debt repayments , and cash used in investing of $ 31.6 million , primarily capital expenditures , partially offset by cash provided by operating activities of $ 87.8 million . cash and cash equivalents also decreased by $ 5.2 million during 2015 due to changes in currency exchange rates . receivables , net were $ 175.3 million at september 30 , 2015 compared to $ 182.1 million at september 30 , 2014 . receivables at september 30 , 2015 and september 30 , 2014 represented approximately 51 and 52 days net sales , respectively . inventories were $ 219.1 million at september 30 , 2015 compared to $ 198.0 million at september 30 , 2014 . inventories increased during 2015 due primarily to lower sales into the oil & gas market , lower sales due to adverse weather impacts at mueller co. and a build-up of certain meter components . estimated inventory turns in 2015 were approximately half a turn slower than 2014. property , plant and equipment , net was $ 148.9 million at september 30 , 2015 compared to $ 146.3 million at september 30 , 2014 , and depreciation expense was $ 28.7 million in 2015 . capital expenditures , including external-use software development costs capitalized , were $ 37.5 million in 2015 . intangible assets were $ 507.3 million at september 30 , 2015 compared to $ 533.6 million at september 30 , 2014 . finite-lived intangible assets , $ 202.3 million of net book value at september 30 , 2015 , are amortized over their estimated useful lives . this amortization expense was $ 29.4 million during 2015 and is expected to be $ 20 million to $ 25 million for each of the next five years .
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42 overview we were incorporated in delaware under the name cardigant medical inc. on april 17 , 2009. our initial business plan was to focus on the development of novel biologic and peptide based compounds and enhanced methods for local delivery for the treatment of vascular disease including peripheral artery disease and ischemic stroke . pursuant to the stock purchase agreement dated as of july 31 , 2014 , yong li , an individual purchased a total of 22,185,230 restricted shares of common stock of the company from a group of three former stockholders of the company . in consideration for the shares , mr. li paid the sellers $ 399,344 in cash which came from his own capital . the sellers were jerett a. creed , the company 's former chief executive officer , chief financial officer , director and formerly a controlling stockholder of the company , the creed family limited partnership and ralph sinibaldi . the shares represented approximately 95 % of the company 's then issued and outstanding common stock . the sale was consummated on august 28 , 2014. as a result of the transaction , there was a change in control of the company . on august 27 , 2014 , we entered into a contribution agreement with cardigant neurovascular . pursuant to the contribution agreement , we assigned all our assets , properties , rights , title and interest used or held for use by our business , ( except for certain excluded assets set forth therein ) which was the treatment of atherosclerosis and plaque stabilization in both the coronary and peripheral vasculature using systemic and local delivery of large molecule therapeutics and peptide mimetics based on high density lipoprotein targets ( “ cardigant business ” ) . in consideration for such contribution of capital , cardigant neurovascular agreed to assume all our liabilities raising from the business prior to the date of the contribution agreement and thereafter with regard to certain contributed contacts . we granted cardigant neurovascular an exclusive option for a period of 6 months to purchase the excluded assets for $ 1. cardigant neurovascular exercised this option october 20 , 2014 and the excluded assets were assigned to cardigant neurovascular on october 20 , 2014. also on october 20 , 2014 , we acquired the business of hongkong takung assets and equity of artworks exchange co. , ltd ( “ hong kong takung ” ) through the acquisition of all the share capital of hong kong takung under a share exchange agreement dated september 23 , 2014 in exchange for 209,976,000 ( pre-reverse stock split ) newly-issued restricted shares of our common stock to the shareholders of hong kong takung ( the “ reverse merger ” ) . hong kong takung is a limited liability company incorporated on september 17 , 2012 under the laws of hong kong , special administrative region , china . although takung was incorporated in 2012 , it did not commence business operations until late 2013. as a result of the transfer of the excluded assets pursuant to the contribution agreement and the acquisition of all the issued and outstanding shares of hong kong takung , we are no longer conducting the cardigant business and have now assumed hong kong takung 's business operations as it now our only operating wholly-owned subsidiary . hong kong takung operates an electronic online platform located at http : //eng.takungae.com for artists , art dealers and art investors to offer and trade in valuable artwork . through hong kong takung , we offer on-line listing and trading services that allow artists/art dealers/owners to access a much bigger art trading market where they can engage with a wide range of investors that they might not encounter without our platform . our platform also makes investment in high-end and expensive artwork more accessible to ordinary people without substantial financial resources . on november 5 , 2014 , we filed a certificate of amendment to our certificate of incorporation with the secretary of state of the state of delaware to change our name from “ cardigant medical inc. ” to “ takung art co. , ltd. ” 43 we generate revenue from our services in connection with the offering and trading of artwork ownership units on our system , primarily consisting of listing fees , trading commissions , and management fees . we conduct our business primarily in hong kong , special administrative region , people 's republic of china . our principal executive offices are located at flat/rm 03-04 , 20/f , hutchison house , 10 harcourt road , central hong kong . on july 28 , 2015 , hong kong takung incorporated a wholly owned subsidiary , takung ( shanghai ) co. , ltd. ( “ shanghai takung ” ) , in shanghai free-trade zone ( sftz ) in shanghai , china , with a registered capital of $ 1 million . shanghai takung assists in hong kong takung 's operations by receiving deposits from and making payments to online artwork traders in mainland china on behalf of hong kong takung . on january 27 , 2016 , hong kong takung incorporated a wholly owned subsidiary , takung cultural development ( tianjin ) co. , ltd ( “ tianjin takung ” ) in the tianjin free trade zone ( tjftz ) in tianjin , china with a registered capital of $ 1 million . tianjin takung provides technology development services to hong kong takung and shanghai takung , and also carries out marketing and promotion activities in mainland china . results of operation of takung hong kong takung operates a platform for offering and trading artwork . we generate revenue from our services in connection with the offering and trading of artwork ownership units on our system , primarily consisting of listing fees , trading commissions , and management fees . story_separator_special_tag an additional discount program was offered to vip traders when their trading volumes of certain artworks reach an agreed level each month , a contractually determined flat rate of trading commission was applied to the transactions of these certain artworks . any trading commission charges incurred by the vip traders over the flat rate would be waived and deducted from the commission revenue . from april 9 , 2015 to june 8 , 2015 , we waived all management fees and trading commissions on the buy side as a promotion and this resulted in a decrease in our commission revenue . commission revenues are $ 6,145,261 and $ 2,832,158 ( net of applicable rebates and discounts ) for the years ended december 31 , 2015 and 2014 , respectively . management fee -the company charges management fees for covering the insurance , storage , and transportation for an artwork and trading management of artwork units , which are calculated at $ 0.0013 ( hk $ 0.01 ) per 100 artwork ownership units per day . the management fee is accounted for as revenue , and immediately deducted from the proceeds from the sales of artwork ownership units when a transaction is completed . a discount program is offered to waive the management fee during certain promotion periods . such discount is recognized as a reduction of the revenue in the same period the related revenue is recognized . management fee revenues were $ 115,542 and $ 113,243 for the years ended december 31 , 2015 and 2014 , respectively . annual fee income -the company charges an annual fee for providing traders and offering agents with premium services , including more in-depth information and tools , on the trading platform . this revenue is recognized ratably over the service agreement period . authorized agent subscription revenue - we charge an authorized agent subscription fee which is an annual service fee paid by authorized agents to grant them the right to bring their network of artwork owners to list their artwork on our trading platform . this revenue is recognized ratably over the annual agreement period income taxes the company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years . under the asset and liability approach , deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes . a valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the company is able to realize their benefits , or that future deductibility is uncertain . 50 under asc 740 , a tax position is recognized as a benefit only if it is “ more likely than not ” that the tax position would be sustained in a tax examination , with a tax examination being presumed to occur . the evaluation of a tax position is a two-step process . the first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination , including the resolution of any related appeals or litigations based on the technical merits of that position . the second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements . a tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement . tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met . previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met . penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the year incurred . gaap also provides guidance on de-recognition , classification , interest and penalties , accounting in interim periods , disclosures and transition . earnings per share of common stock the company reports earnings ( loss ) per share in accordance with asc topic 260-10 `` earnings per share . `` basic earnings ( loss ) per share are computed by dividing income ( loss ) available to common shareholders by the weighted average number of common shares available . stock-based compensation the company accounts for stock-based compensation under asc topic 505-50. this standard defines a fair value-based method of accounting for stock-based compensation . the cost of stock-based compensation is measured at the grant date based on the value of the award , and is recognized over the period in which the company expects to receive the benefit , which is generally the vesting period . as of december 31 , 2015 , there were no options or warrants outstanding . recent accounting pronouncements income statement-extraordinary and unusual items : in january 2015 , the financial accounting standards board ( fasb ) issued accounting standards update no . 2015-01 about income statement-extraordinary and unusual items ( subtopic 225-20 ) . asu 2015-01 addresses the elimination from u.s. gaap the concept of extraordinary items . presently , an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item . if an event or transaction meets the criteria for extraordinary classification , an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement , net of tax , after income from continuing operations . this amended guidance will prohibit separate disclosure of extraordinary items in the income statement .
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | sources of liquidity the cash balance at december 31 , 2015 was $ 10,769,456. of the $ 10,769,456 , we had $ 1,849,010 denominated in hong kong dollars in hong kong banks , $ 1,457,247 and $ 953,186 denominated in us dollars deposited in banks in hong kong and china respectively , and $ 6,510,013 denominated in renminbi and deposited in a bank in china . during the year ended december 31 , 2015 , net cash provided by operating activities totaled $ 5,419,693. net cash used in investing activities totaled $ 512,144. net cash provided by financing activities totaled $ 3,510,853. the resulting change in cash for the period was an increase of $ 8,413,617 , which was primarily due to a net income of $ 5,436,109 and the collection from subscription proceeds from the issuance of shares . the cash balance at december 31 , 2014 was $ 2,355,839. during the year ended december 31 , 2014 , net cash provided by operating activities totaled $ 2,591,661. net cash used in investing activities totaled $ 497,942. no cash was generated from financing activities . the resulting change in cash for the period was an increase of $ 2,095,652 , which was primarily due to a net income of $ 1,369,537 and the increase in account payables and other accruals , offset by the increase in payment for the purchase of property and equipment . as of december 31 , 2015 , the company had $ 18,427,281 in total current liabilities , which included $ 667,622 in account payables and other accruals , $ 16,195,289 in customers ' deposits , and $ 1,564,370 tax payables . as of december 31 , 2014 , the company had $ 9,009,168 in total current liabilities , which included $ 1,891,525 in account payables and other accruals , and $ 6,865,821 in customers ' deposits .
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we intend to continue to actively pursue the acquisition of banks and thrifts , including thrifts in the mutual and mutual holding company structure . in the past , 37 we have relied upon organic growth rather than acquisitions to grow our franchise , and there is no guarantee that we will be successful in pursuing our acquisition strategy . maintaining asset quality through the application of a prudent , disciplined approach to credit risk as part of an overall risk management program . we employ a conservative , analytical approach to the assets we acquire that we have tested over many different business and interest rate cycles . this applies to our securities portfolio , which is comprised primarily of liquid , low credit-risk , government agency-backed securities , as well as , our loan portfolio . residential loans are underwritten to secondary market standards and our commercial lending policies are designed to be consistent with industry best practices . we subject our loan portfolio to independent internal and external reviews to validate conformance to policies and stress tests to identify areas of potential risk . we have management information systems that provide regular insight into the quantity and direction of credit risk in our loan portfolio segments , including borrower and industry-specific concentrations . we employ limits on concentration risks , including the ratios of commercial real estate and construction loan portfolios to capital . we have developed reporting , analytics and stress testing that we believe provide effective oversight of these portfolios at higher concentration levels . we employ tools to ensure we are being appropriately compensated for the risks inherent in the lending products we offer , and in the specific transactions . our commercial loan pricing model quantifies the credit and interest rate risk embedded in our new loan originations and provides a target return hurdle . we operate with risk committees , at both the management and board levels , that review changes in the quantity and direction of risk . these committees review our key risk indicators , loan portfolio and liquidity stress tests and operational and cyber risk assessments , which draw from our asset/liability committee data , our loan portfolio credit metrics and treasury risk ( investment/funding ) metrics . enhancing our technology infrastructure to broaden our product capabilities and improve product delivery and efficiency . we have embraced the latest technological developments in the banking industry , which we believe allows us to better leverage our employees by enabling them to focus on developing customer relationships , generate retail deposits in an efficient manner , expand the suite of products that we can offer to customers and allow us to compete more efficiently and effectively as we grow . in 2019 , we implemented a new commercial loan underwriting and a new relationship monitoring system to better support and manage our commercial customer base . in 2020 , faced with the covid-19 pandemic , we were able to quickly enable remote employee access via the digital workplaces initiative , accelerating the release of several digital banking and other fintech solutions to support our customers . we introduced a new digital mortgage system which greatly expedited the handling of mortgage , home equity and heloc applications . internally , we continued to utilize our crm solutions with additional capabilities . we are in the process of introducing a digital small business lending solution , online chat and appointment scheduling and expect to continue to enhance our digital technology platforms to provide more appealing products and services to our customers and support our sales and marketing initiatives . currently , we are in the process of upgrading our current company-wide technology infrastructure to support both organic and inorganic growth in the bank . with the additions of a chief information and digital officer and head of digital technology officer , we are strategically positioned to plan and deliver these efforts . focusing on an enhanced customer experience and continued customer satisfaction . we believe that customer satisfaction is a key to generating sustainable growth and profitability . while continually striving to ensure that our products and services meet our customers ' needs , we also encourage our officers and employees to focus on providing personal service and attentiveness to our customers in a proactive manner . in recent years , we have enhanced our image and brand recognition within our marketplace for banking services . our strategy continues to be focused on providing quality customer service through our convenient branch network , supported by our call center , where customers can speak with a bank representative to answer questions and resolve issues during business and extended hours . we believe that our ability to close transactions and deliver our services in a timely manner is attractive to our customers and distinguishes us from other financial institutions that operate in our marketplace . our customers enjoy access to senior executives and decision makers and the value it brings to their businesses . we also offer convenient online and mobile banking tools for customers to transact business anytime and anywhere . we believe that many opportunities remain to deliver what our customers want in the form of exceptional service and convenience and we intend to continue to focus our operating strategy on taking advantage of these opportunities . 38 employing a stockholder-focused management of capital . we intend to manage our capital position through the growth of assets , as well as the utilization of appropriate capital management tools , consistent with applicable regulations and policies , and subject to market conditions . story_separator_special_tag these changes , when they occur , impact accrued taxes and can materially affect our operating results . the company identified no significant income tax uncertainties through the evaluation of its income tax positions as of december 31 , 2020 and 2019. therefore , the company has no unrecognized income tax benefits as of those dates . 40 as of december 31 , 2020 , we had net deferred tax assets totaling $ 7.2 million . in accordance with accounting standards codification ( “ asc ” ) topic 740 “ income taxes , ” we use the asset and liability method of accounting for income taxes . under this method , deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases . a valuation allowance is established when management is unable to conclude that it is more likely than not that it will realize deferred tax assets based on the nature and timing of these items . the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period enacted . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . we exercise significant judgment in evaluating the amount and timing of recognition of the resulting tax assets and liabilities . these judgments require us to make projections of future taxable income . the judgments and estimates we make in determining our deferred tax assets are inherently subjective and are reviewed on a regular basis as regulatory or business factors change . any reduction in estimated future taxable income may require us to record a valuation allowance against our deferred tax assets . a valuation allowance that results in additional income tax expense in the period in which it is recognized would negatively affect earnings . management believes , based upon current facts , that it is more likely than not that there will be sufficient taxable income in future years to realize the federal deferred tax assets and that it is more likely than not that the benefits from certain state temporary differences will not be realized . in recognition of this risk , we have provided a valuation allowance of $ 3.4 million as of december 31 , 2020 on the deferred tax assets related to the bank 's state net operating losses and temporary differences . post-retirement benefits . we provide certain health care and life insurance benefits , along with a split-dollar boli death benefit , to eligible retired employees . we accrue the cost of retiree health care and other benefits during the employees ' period of active service . we account for benefits in accordance with asc topic 715 “ pension and other post-retirement benefits . ” the guidance requires an employer to : ( a ) recognize in the statement of financial position the over funded or underfunded status of a defined benefit post-retirement plan measured as the difference between the fair value of plan assets and the benefit obligations ; ( b ) measure a plan 's assets and its obligations that determine its funded status as of the end of the company 's fiscal year ( with limited exceptions ) ; and ( c ) recognize as a component of other comprehensive income ( loss ) , net of tax , the actuarial gain and losses and the prior service costs and credits that arise during the period . these assets and liabilities and expenses are based upon actuarial assumptions including interest rates , rates of increase in compensation , expected rate of return on plan assets and the length of time we will have to provide those benefits . actual results may differ from these assumptions . these assumptions are reviewed and updated at least annually and management believes the estimates are reasonable . pending accounting pronouncements in august 2018 , the fasb issued asu 2018-14 , compensation-retirement benefits-defined benefit plans-general ( subtopic 715-20 ) : disclosure framework-changes to the disclosure requirements for defined benefit plans . the amendments in this update modify the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing disclosures that no longer are considered cost beneficial , clarifying the specific requirements of disclosures , and adding disclosure requirements identified as relevant . among other changes , the asu adds disclosure requirements to topic 715-20 for the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in benefit obligation for the period . the amendments remove disclosure requirements for the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year , the amount and timing of plan assets expected to be returned to the employer , and the effects of a one-percentage-point change in assumed health care cost trend rates on the ( a ) aggregate of the service and interest cost components of net periodic benefit costs and ( b ) benefit obligation for post-retirement health care benefits . asu 2018-14 is effective for fiscal years beginning after december 15 , 2020 , including interim reporting periods within that reporting period , with early adoption permitted . the update is to be applied on a retrospective basis . the company adopted this asu effective january 1 , 2021 , and as its adoption is only disclosure related , it did not have a significant impact on the company 's consolidated financial statements . in june 2016 , the fasb issued asu 2016-13 , financial instruments- credit losses ( topic 326 ) : measurement of credit losses on financial instruments ( ``
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | debt securities held to maturity : u.s. government and agency obligations $ 5,000 0.72 % $ — — % $ — — % $ 5,000 0.72 % mortgage-backed securities and collateralized mortgage obligations 71,011 2.68 42,548 3.15 144,161 3.05 257,720 2.96 total $ 76,011 2.55 % $ 42,548 3.15 % $ 144,161 3.05 % $ 262,720 2.92 % loans receivable total gross loans decreased $ 6.8 million , or 0.1 % , to $ 6.16 billion at december 31 , 2020 from $ 6.17 billion at december 31 , 2019. one-to-four family real estate loans and multifamily and commercial real estate loans decreased $ 136.8 million , or 6.6 % , and $ 102.0 million , or 3.5 % , respectively , during 2020 primarily as a result of a high volume of prepayments on loans , which more than offset decreased originations volumes resulting from the pandemic . construction loans increased $ 29.8 million , or 10.0 % , during 2020 to $ 328.7 million from $ 298.9 million at december 31 , 2019. commercial business loans also increased $ 269.7 million , or 55.8 % , to $ 752.9 million from $ 483.2 million at december 31 , 2019 primarily as a result of the loans granted as part of the sba ppp , which totaled $ 344.4 million at december 31 , 2020. our consumer loan originations , which are primarily comprised of home equity loans and advances , continue to be impacted by weak demand . the reduction in volume was influenced by the low interest rate environment , additional tightening of underwriting on these types of loans , and newly enacted restrictions on the tax deductibility of home mortgage interest .
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we have grown our total revenue from $ 209.6 million in 2014 to $ 445.6 million in 2018. during this period , our operating expenses increased from $ 67.9 million in 2014 to $ 149.8 million in 2018. we have grown our income from operations from $ 60.5 million in 2014 to $ 88.9 million in 2018. our recent growth in revenue and income from operations has been accompanied by increased cost of revenues and operating expenses . we expect to increase investment in our operations to support anticipated future growth as discussed more fully below . in addition , we believe that a number of trends affecting our industry have affected our results of operations and may continue to do so . for example , we believe that many of our target product developer and engineer customers are facing three mega trends , which are disrupting product growth models . we believe our customers are facing increased pressure to shorten product life-cycles , to embed products with internet of things technology , and to deliver products that are personalized and customized to unique customer specifications . we believe we continue to be well positioned to benefit from these trends , given our proprietary technology that enables us to automate and integrate the majority of activities involved in procuring custom parts . while our business may be positively affected by these trends , our results may also be favorably or unfavorably impacted by other trends that affect product developer and engineer orders for custom parts in low volumes , including , among others , changes in product developer and engineer preferences or needs , developments in our industry and among our competitors , and factors impacting new product development volume such as economic conditions . for a more complete discussion of the risks facing our business , see part i , item 1a . “ risk factors ” of this annual report on form 10-k. 32 key financial measures and trends revenue our operations are comprised of three geographic operating segments in the united states , europe and japan . revenue is derived from our injection molding , cnc machining , 3d printing and sheet metal product lines . injection molding revenue consists of sales of custom injection molds and injection-molded parts . cnc machining revenue consists of sales of cnc-machined custom parts . 3d printing revenue consists of sales of 3d-printed parts . sheet metal revenue consists of sales of fabricated sheet metal custom parts . our revenue is generated from a diverse customer base , with no single customer company representing more than 2 % of our total revenue in 2018. our historical and current efforts to increase revenue have been directed at gaining new customers and selling to our existing customer base by increasing marketing and selling activities , including : the introduction of our 3d printing product line through our acquisition of fineline in 2014 ; expanding 3d printing to europe through our acquisition of alphaform in october 2015 ; the introduction of our sheet metal product line through our acquisition of rapid in 2017 ; continuously improving the usability of our product lines such as our web-centric applications ; and expanding the breadth and scope of our products by adding more sizes and materials to our offerings . during 2018 , we served 45,968 unique product developers and engineers who purchased our products through our web-based customer interface , an increase of 22.5 % over the same period in 2017. during 2017 , we served 37,538 unique product developers and engineers who purchased our products through our web-based customer interface , an increase of 19.3 % over the same period in 2016. during 2016 , we served 31,457 unique product developers and engineers who purchased our products through our web-based customer interface , an increase of 15.5 % over the same period in 2015. the 2016 information does not include 3d printing and injection molding customers resulting from the alphaform acquisition who do not utilize our web-based interface . cost of revenue , gross profit and gross margin cost of revenue consists primarily of raw materials , equipment depreciation , employee compensation , benefits , stock-based compensation , facilities costs and overhead allocations associated with the manufacturing process for molds and custom parts . we expect cost of revenue to increase in absolute dollars , but remain relatively constant as a percentage of total revenue . our business model requires that we invest in our capacity well in advance of demand to ensure we can fulfill the expectations for quick delivery of our products to our customers . therefore , during each of 2018 , 2017 and 2016 we made significant investments in additional factory space , equipment , and infrastructure in the united states . we also made significant investments in infrastructure in europe in 2017 and significant investments in additional factory space in japan in 2016. we expect to continue to grow in future periods , which will result in the need for additional investments in factory space and equipment . we expect that these additional costs for factory and equipment expansion can be absorbed by revenue growth , and allow gross margins by product line to remain relatively consistent over time . we define gross profit as our revenue less our cost of revenue , and we define gross margin as gross profit expressed as a percentage of revenue . our gross profit and gross margin are affected by many factors , including our mix of revenue by product line , pricing , sales volume and manufacturing costs , the costs associated with increasing production capacity , the mix between domestic and foreign revenue sources and foreign exchange rates . 33 operating expenses operating expenses consist of marketing and sales , research and development and general and administrative expenses . personnel-related costs are the most significant component in each of these categories . story_separator_special_tag replace_table_token_11_th 39 liquidity and capital resources cash flows the following table summarizes our cash flows for the years ended december 31 , 2018 , 2017 and 2016 : replace_table_token_12_th story_separator_special_tag million in proceeds from exercises of stock options . cash provided by financing activities was $ 9.2 million for the year ended december 31 , 2017 , consisting of $ 5.0 million in short-term debt obligations and $ 8.6 million in proceeds from the exercise of stock options , partially offset by $ 4.4 million for repurchases of common stock . cash provided by financing activities was $ 5.3 million for the year ended december 31 , 2016 , consisting of $ 5.7 million in proceeds from exercises of stock options , partially offset by $ 0.4 million for payments of acquisition-related contingent consideration . operating and capital expenditure requirements we believe , based on our current operating plan , that our cash balances and cash generated through operations and interest income will be sufficient to meet our anticipated cash requirements through at least the next 12 months . from time to time we may seek to sell equity or convertible debt securities or enter into credit facilities . the sale of equity and convertible debt securities may result in dilution to our shareholders . if we raise additional funds through the issuance of convertible debt securities or enter into credit facilities , these securities and debt holders could have rights senior to those of our common stock , and this debt could contain covenants that would restrict our operations . we may require additional capital beyond our currently forecasted amounts . any such required additional capital may not be available on terms acceptable to us , or at all . our future capital requirements will depend on many factors , including the following : the revenue growth in injection molding , cnc machining , 3d printing and sheet metal product lines ; costs of operations , including costs relating to expansion and growth ; the emergence of competing or complementary technological developments ; the costs of filing , prosecuting , defending and enforcing any patent claims and other intellectual product rights , or participating in litigation-related activities ; and the acquisition of businesses , products and technologies , although we currently have no commitments or agreements relating to any of these types of transactions . our recent annual capital expenditures have varied between 10 % and 20 % of annual revenue . we believe future growth capital expenditures , excluding any expenditures for buildings and maintenance capital we might purchase for our operations , are likely to vary between approximately 8 % and 12 % of annual revenue . 41 contractual obligations as of december 31 , 2018 , our contractual obligations and the effect such obligations are expected to have on our liquidity and cash flows in future periods were as follows : replace_table_token_13_th the table above reflects only payment obligations that are fixed and determinable . our commitments for operating leases relate to three of our united states manufacturing facilities ; our european sales , customer service and technical support offices ; manufacturing and office facilities located in germany ; and our japan facility . financing arrangements the following table summarizes our financing arrangements as of december 31 , 2018 and 2017 : december 31 , ( in thousands ) 2018 2017 revolving credit facility , with interest rates from 2.50 % to 2.59 % , due at maturity in november 2019 $ - $ 5,000 total financing obligations $ - $ 5,000 inflation we experience normal inflation and changing prices , primarily on our production materials and labor . we believe that inflation and changing prices have not had a material effect on our financial condition during the three most recent fiscal years . off-balance sheet arrangements since our inception , we have not engaged in any off-balance sheet arrangements , including the use of structured finance , special purpose entities or variable interest entities . critical accounting policies and use of estimates the discussion and analysis of our financial condition and results of operations is based upon our 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 us to make estimates , judgments and assumptions that affect the reported amount of assets , liabilities , revenue , expenses and related disclosures . on an ongoing basis , we evaluate our estimates , including those related to revenue recognition , goodwill , other intangible assets , stock-based compensation , and income taxes . we base our estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that we believe to be reasonable under the circumstances . in many cases , we could reasonably have used different accounting policies and estimates . in some cases , changes in the accounting estimates are reasonably likely to occur from period to period . management has discussed the development , selection and disclosure of these estimates with the audit committee of our board of directors . our actual results may differ significantly from these estimates under different assumptions or conditions . we believe the following critical accounting policies affect our more significant judgments used in the preparation of our consolidated financial statements . see the notes to consolidated financial statements included in item 8 . “ financial statements and supplementary data ” in this annual report on form 10-k for additional information about these critical accounting policies , as well as a description of our other accounting policies . 42 revenue recognition on january 1 , 2018 , we adopted asc 606 , revenue from contracts with customers , using the modified retrospective approach . we manufacture custom parts to specific customer orders that have no alternative use to us , and we believe there is a legally enforceable right to payment for performance
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | sources of liquidity we finance our operations and capital expenditures through cash flow from operations . we had cash and cash equivalents of $ 85.0 million as of december 31 , 2018 , an increase of $ 48.3 million from december 31 , 2017. the increase in our cash was due primarily to cash generated through operations . we had cash and cash equivalents of $ 36.7 million as of december 31 , 2017 , a decrease of $ 32.1 million from december 31 , 2016. the decrease in our cash was due primarily to the acquisition of rapid in november 2017. we had cash and cash equivalents of $ 68.8 million as of december 31 , 2016 , an increase of $ 21.1 million from december 31 , 2015. the increase in our cash was due primarily to cash generated through operations . as of december 31 , 2018 , the amount of cash and cash equivalents held by foreign subsidiaries was $ 46.9 million . the tax cuts and jobs act imposes a transition tax on foreign earnings previously treated as permanently reinvested , resulting in an increase to our u.s. tax liability . however , our intent is to continue to permanently reinvest these funds outside the u.s. and our current plans do not demonstrate a need to repatriate them to fund our domestic operations . we believe that our existing cash and cash equivalents together with cash generated from operations will be sufficient to meet our working capital expenditure requirements for at least the next 12 months . cash flows from operating activities cash flow from operating activities of $ 122.9 million during 2018 primarily consisted of net income of $ 76.6 million , adjusted for certain non-cash items , including depreciation and amortization of $ 26.8 million , stock-based compensation expense of $ 10.9 million and deferred taxes of $ 11.9 million , which were partially offset by changes in operating assets and liabilities and other items totaling $ 3.3 million .
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although our jurisdiction of organization is ireland , we manage our affairs so that we are centrally managed and controlled in the united kingdom ( the `` u.k. `` ) and therefore have our tax residency in the u.k. on september 18 , 2015 , we acquired , as part of electrical , all of the outstanding shares of capital stock of erico global company ( `` erico `` ) for approximately $ 1.8 billion in cash ( the `` erico acquisition `` ) . erico is a leading global manufacturer and marketer of engineered electrical and fastening products for electrical , mechanical and civil applications . erico has employees in 30 countries across the world with recognized brands including caddy fixing , fastening and support products ; erico electrical grounding , bonding and connectivity products and lenton engineered systems . on april 28 , 2017 we completed the sale of the valves & controls business to emerson electric co. for $ 3.15 billion in cash . the sale resulted in a gain of $ 181.1 million , net of tax . the results of the valves & controls business have been presented as discontinued operations and the related assets and liabilities have been reclassified as held for sale for all periods presented . the valves & controls business was previously disclosed as a stand-alone reporting segment . on may 9 , 2017 , we announced that our board of directors approved a plan to separate our water business and electrical business into two independent , publicly-traded companies ( the `` proposed separation `` ) . the proposed separation is expected to occur through a tax-free spin-off of the electrical business to pentair shareholders . completion of the proposed separation is subject to certain customary conditions , including , among other things , final approval of the transaction by pentair 's board of directors , receipt of tax opinions and rulings and effectiveness of appropriate filings with the sec . upon completion of the proposed separation , it is anticipated that electrical 's jurisdiction of organization will be ireland , but that it will manage its affairs so that it will be centrally managed and controlled in the u.k. and therefore will have its tax residency in the u.k. 22 we are targeting april 30 , 2018 for the completion of the proposed separation ; however , there can be no assurance regarding the ultimate timing of the proposed separation or that the proposed separation will be completed . key trends and uncertainties regarding our existing business the following trends and uncertainties affected our financial performance in 2017 and 2016 , and will likely impact our results in the future : during 2017 and 2016 , we continued execution of certain business restructuring initiatives aimed at reducing our fixed cost structure and , during 2017 , began realigning our business in contemplation of the proposed separation . we expect that these actions will contribute to margin growth in 2018. we have identified specific product and geographic market opportunities that we find attractive and continue to pursue , both within and outside the united states . we are reinforcing our businesses to more effectively address these opportunities through research and development and additional sales and marketing resources . unless we successfully penetrate these markets , our core sales growth will likely be limited or may decline . we have experienced material and other cost inflation . we strive for productivity improvements , and we implement increases in selling prices to help mitigate this inflation . we expect the current economic environment will result in continuing price volatility for many of our raw materials , and we are uncertain as to the timing and impact of these market changes . in 2018 , our operating objectives include the following : complete the execution of the proposed separation to create two industry-leading pure-play companies in water and electrical . driving operating excellence through pims , with specific focus on sourcing and supply management , cash flow management and lean operations ; achieving differentiated revenue growth through new products and global and market expansion ; optimizing our technological capabilities to increasingly generate innovative new products ; and focusing on developing global talent in light of our global presence . 23 consolidated results of operations the consolidated results of operations were as follows : replace_table_token_6_th n.m. not meaningful net sales the components of the consolidated net sales change were as follows : replace_table_token_7_th the 1.0 percent increase in consolidated net sales in 2017 from 2016 was primarily the result of : increased sales volume in our industrial business primarily in the u.s. ; increased sales related to business acquisitions that occurred in the fourth quarter of 2016 and the first quarter of 2017 ; and favorable foreign currency effects during the year ended december 31 , 2017. these increase s were partially offset by : continued lower project sales volume particularly in the energy and industrial businesses ; 24 large job adjustments to net sales of $ 9.7 million in 2017. the 5.9 percent increase in consolidated net sales in 2016 from 2015 was primarily the result of : sales of $ 516.1 million in 2016 as a result of the erico acquisition , compared to sales of $ 147.0 million in 2015 ; and increased volume driving core sales growth in our north america pool business . these increase s were partially offset by : continued slowdown in capital spending , driving core sales declines in our industrial and energy businesses ; slowing economic activity in certain developing regions , including china and brazil ; and a strong u.s. dollar causing unfavorable foreign currency effects . story_separator_special_tag dividends on december 5 , 2017 , the board of directors declared a quarterly cash dividend of $ 0.35 that was paid on february 9 , 2018 to shareholders of record at the close of business on january 26 , 2018. additionally , the board of director 's approved a plan to increase the 2018 annual cash dividend to $ 1.40 , which is intended to paid in four quarterly installments . the 2018 increase will mark the 42 nd consecutive year we have increased dividends . we paid dividends in 2017 of $ 251.7 million , or $ 1.38 per ordinary share , compared with $ 243.6 million , or $ 1.34 per ordinary share , in 2016 and $ 231.7 million , or $ 1.28 per ordinary share , in 2015 . under irish law , the payment of future cash dividends and repurchases of shares may be paid only out of pentair plc 's `` distributable reserves `` on its statutory balance sheet . pentair plc is not permitted to pay dividends out of share capital , which includes share premiums . distributable reserves may be created through the earnings of the irish parent company and through a reduction in share capital approved by the irish high court . distributable reserves are not linked to a u.s. generally accepted accounting principles ( `` gaap `` ) reported amount ( e.g . , retained earnings ) . on july 22 , 2014 , the irish high court approved pentair plc 's conversion of approximately $ 14.4 billion of share premium to distributable reserves . on july 29 , 2014 , following the approval of the irish high court , we made the required filing of pentair plc 's initial accounts with the irish companies registration office , which completed the process to allow us to pay future cash dividends and redeem and repurchase shares out of pentair plc 's `` distributable reserves . `` our distributable reserve balance was $ 9.0 billion and $ 9.4 billion as of december 31 , 2017 and 2016 , respectively . authorized shares our authorized share capital consists of 426.0 million ordinary shares with a par value of $ 0.01 per share . ordinary shares held in treasury in august 2015 , we canceled all of our ordinary shares held in treasury . at the time of the cancellation , we held 19.1 million ordinary shares in treasury at a cost of $ 1.2 billion . share repurchases in december 2014 , the board of directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $ 1.0 billion . the authorization expires on december 31 , 2019 . in december 2015 , we repurchased 3.1 million of our ordinary shares for $ 200.0 million under the 2014 authorization . during the year ended december 31 , 2017 , we repurchased 3.0 million of our ordinary shares for $ 200.0 million under the 2014 authorization . we have $ 600.0 million remaining availability for repurchases under the under the 2014 authorization . 32 contractual obligations the following summarizes our significant contractual obligations that impact our liquidity : replace_table_token_14_th the majority of the purchase obligations represent commitments for raw materials to be utilized in the normal course of business . for purposes of the above table , arrangements are considered purchase obligations if a contract specifies all significant terms , including fixed or minimum quantities to be purchased , a pricing structure and approximate timing of the transaction . in addition to the summary of significant contractual obligations , we will incur annual interest expense on outstanding variable rate debt . as of december 31 , 2017 , variable interest rate debt was $ 62.4 million at a weighted average interest rate of 2.67 % . the total gross liability for uncertain tax positions at december 31 , 2017 was estimated to be $ 36.6 million . we record penalties and interest related to unrecognized tax benefits in provision for income taxes and interest expense , respectively , which is consistent with our past practices . as of december 31 , 2017 , we had recorded $ 2.3 million for the possible payment of penalties and $ 9.4 million related to the possible payment of interest . other financial measures in addition to measuring our cash flow generation or usage based upon operating , investing and financing classifications included in the consolidated statements of cash flows , we also measure our free cash flow . we have a long-term goal to consistently generate free cash flow that equals or exceeds 100 percent conversion of adjusted net income . free cash flow is a non-gaap financial measure that we use to assess our cash flow performance . we believe free cash flow is an important measure of liquidity because it provides us and our investors a measurement of cash generated from operations that is available to pay dividends , make acquisitions , repay debt and repurchase shares . in addition , free cash flow is used as a criterion to measure and pay compensation-based incentives . our measure of free cash flow may not be comparable to similarly titled measures reported by other companies . the following table is a reconciliation of free cash flow : replace_table_token_15_th off-balance sheet arrangements at december 31 , 2017 , we had no off-balance sheet financing arrangements . 33 commitments and contingencies we have been made parties to a number of actions filed or have been given notice of potential claims relating to the conduct of our business , including those pertaining to commercial disputes , product liability , asbestos , environmental , safety and health , patent infringement and employment matters . while we believe that a material impact on our consolidated financial position , results of operations or cash flows from any such future claims or potential claims is unlikely , given the inherent uncertainty of litigation , a remote possibility exists
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | . cash used for financing activities in 2016 was primarily due to net repayments of commercial paper and revolving long-term debt and payments of dividends . net cash provided by financing activities was $ 1,286.3 million in 2015 . cash provided by financing activities in 2016 was primarily due to cash proceeds received from the september 2015 issuance of senior notes ( discussed below ) , partially offset by share repurchases , repayment of $ 350 million of senior notes due 2015 and payment of dividends . in october 2014 , pentair plc , pentair investments switzerland gmbh ( `` pisg '' ) , pentair finance s.à r.l . ( `` pfsa '' ) and pentair , inc. entered into an amended and restated credit agreement ( the `` credit facility '' ) , with pentair plc and pisg as guarantors and pfsa and pentair , inc. as borrowers . the credit facility had a maximum aggregate availability of $ 2,100.0 million and a maturity date of october 3 , 2019. borrowings under the credit facility generally bear interest at a variable rate equal to the london interbank offered rate ( `` libor '' ) plus a specified margin based upon pfsa 's credit ratings . pfsa must pay a facility fee ranging from 9.0 to 25.0 basis points per annum ( based upon pfsa 's credit ratings ) on the amount of each lender 's commitment and letter of credit fee for each letter of credit issued and outstanding under the credit facility . in august 2015 , pentair plc , pisg and pfsa entered into a first amendment to the credit facility ( the `` first amendment '' ) , which , among other things , increased the leverage ratio ( as defined below ) .
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in 2019 , the performance coatings group opened 3 new branches and closed 4 locations decreasing the total from 282 to 281 branches open in the united states , canada , mexico , south america , europe and asia at 22 year-end . in 2020 , the performance coatings group plans to continue expanding its worldwide presence and improving its customer base . net sales in the administrative segment , which primarily consists of external leasing revenue of excess headquarters space and leasing of facilities no longer used by the company in its primary business , decreased by an insignificant amount in 2019 . consolidated gross profit increased $ 617.5 million in 2019 compared to the same period in 2018. consolidated gross profit as a percent to consolidated net sales increased to 44.9 % in 2019 from 42.3 % in 2018 . consolidated gross profit dollars and percent improved as a result of higher paint sales volume in north american stores , selling price increases , improved supply chain efficiencies , moderating raw material costs , and lower acquisition-related amortization expense , partially offset by unfavorable currency translation rate changes . the americas group 's gross profit for 2019 increased $ 384.2 million compared to the same period in 2018 . the americas group 's gross profit dollars and margin improved as a result of higher paint sales volume , selling price increases and moderating raw material costs . the consumer brands group 's gross profit increased $ 125.5 million in 2019 compared to the same period in 2018 . the consumer brands group 's gross profit dollars and margin improved due primarily to improved supply chain efficiencies , synergies , moderating raw material costs , and lower acquisition-related depreciation expense , partially offset by lower paint sales volume . the performance coatings group 's gross profit for 2019 increased $ 51.3 million compared to the same period in 2018 . the performance coatings group 's gross profit dollars and margin improved due primarily to selling price increases and moderating raw material costs , partially offset by unfavorable currency translation rate changes . consolidated sg & a increased by $ 241.1 million due primarily to increased expenses to support higher sales levels and net new store openings , partially offset by good cost control . sg & a increased as a percent of sales to 29.5 % in 2019 from 28.7 % in 2018 as a result of softer sales outside of north america . the americas group 's sg & a increased $ 196.7 million for the year due primarily to increased spending due to the number of new store openings and general comparable store expenses to support higher sales levels . the consumer brands group 's sg & a increased by $ 12.7 million for the year primarily due to increased expenses to support new customer programs . the performance coatings group 's sg & a decreased by $ 0.9 million for the year related to softer sales outside of north america . the administrative segment 's sg & a increased $ 32.6 million primarily due to increased investments in information systems and increased compensation , including stock-based compensation . other general expense - net decreased $ 150.0 million in 2019 compared to 2018 . the decrease was mainly caused by a decrease of $ 147.6 million in the administrative segment , which was primarily attributable to a decrease in expense recognized related to provisions for environmental matters . the expense recognized related to environmental provisions decreased $ 153.3 million from the prior year . this decrease was the result of the company reaching a series of agreements in 2018 with the environmental protection agency for remediation plans with cost estimates at one of the company 's four major sites which required significant environmental provisions to be recorded . see notes 10 and 18 to the consolidated financial statements in item 8 for additional information concerning environmental matters and other general expense - net , respectively . as required by the goodwill and other intangibles topic of the asc , management performed an annual impairment test of goodwill and indefinite-lived intangible assets as of october 1 , 2019 . during the fourth quarter of 2019 , the company recognized non-cash pre-tax impairment charges totaling $ 122.1 million related to recently acquired trademarks . these charges included impairments totaling $ 117.0 million in the performance coatings group and $ 5.1 million in the consumer brands group . in the performance coatings group , $ 75.6 million related to trademarks in north america directly associated with strategic decisions made to rebrand industrial products to the sherwin-williams® brand name , $ 25.7 million related to trademarks in the asia pacific region as a direct result of recent performance which reduced the long-term forecasted net sales and $ 15.7 million related to other recently acquired trademarks in various regions . the impairment tests in 2018 did not result in any impairment . see note 6 to the consolidated financial statements in item 8 for additional information . interest expense decreased $ 17.4 million in 2019 primarily due to lower average debt levels . interest and net investment income increased $ 20.7 million in 2019 including an $ 18.8 million gain recognized during the fourth quarter of 2019 after the company received a favorable court decision in brazil related to the recovery of certain indirect taxes previously paid over gross sales . see note 18 to the consolidated financial statements in item 8 for additional information on the brazil indirect tax matter . during 2019 , the company recognized a $ 34.7 million benefit from the resolution of the california public nuisance litigation as a result of the final court approved agreement issued during the third quarter of 2019. during the third quarter of 2018 , the company recognized expense of $ 136.3 million related to the california litigation . story_separator_special_tag see note 19 to the consolidated financial statements in item 8 for more information on deferred taxes . other long-term liabilities other long-term liabilities increased $ 187.4 million during 2019 due primarily to the final court approved agreement to resolve the california public nuisance litigation , which impacted the timing and amount of expected payments , and an increase related to the reversal of net tax benefits recognized in previous tax years from federal renewable energy tax credit funds . see notes 10 and 11 , and 19 to the consolidated financial statements in item 8 for additional information on litigation and income tax matters , respectively . environmental-related liabilities the operations of the company , like those of other companies in the same industry , are subject to various federal , state and local environmental laws and regulations . these laws and regulations not only govern current operations and products , but also impose potential liability on the company for past operations . management expects environmental laws and regulations to impose increasingly stringent requirements upon the company and the industry in the future . management believes that the company conducts its operations in compliance with applicable environmental laws and regulations and has implemented various programs designed to protect the environment and promote continued compliance . depreciation of capital expenditures and other expenses related to ongoing environmental compliance measures were included in the normal operating expenses of conducting business . the company 's capital expenditures , depreciation and other expenses related to ongoing environmental compliance measures were not material to the company 's financial condition , liquidity , cash flow or results of operations during 2019 . management does not expect that such capital expenditures , depreciation and other expenses will be material to the company 's financial condition , liquidity , cash flow or results of operations in 2020 . see note 10 to the consolidated financial statements in item 8 for further information on environmental-related long-term liabilities . contractual obligations and commercial commitments the company has certain obligations and commitments to make future payments under contractual obligations and commercial commitments . the following tables summarize such obligations and commitments as of december 31 , 2019 . 27 replace_table_token_16_th ( 1 ) relate to open purchase orders for raw materials at december 31 , 2019 . ( 2 ) relate primarily to estimated future capital contributions to investments in the u.s. affordable housing and historic renovation real estate partnerships and various other contractual obligations . replace_table_token_17_th warranties the company offers product warranties for certain products . the specific terms and conditions of such warranties vary depending on the product or customer contract requirements . management estimated the costs of unsettled product warranty claims based on historical results and experience and included an amount in other accruals . management periodically assesses the adequacy of the accrual for product warranty claims and adjusts the accrual as necessary . changes in the company 's accrual for product warranty claims during 2019 , 2018 and 2017 , including customer satisfaction settlements during the year , were as follows : replace_table_token_18_th warranty accruals acquired in connection with the valspar acquisition in 2017 include warranties for certain products under extended furniture protection plans . the decrease in the accrual in 2018 was primarily due to the divestiture of the furniture protection plan business during the third quarter of 2018 for an immaterial amount that approximated net book value . shareholders ' equity shareholders ' equity increased $ 392.6 million to $ 4.123 billion at december 31 , 2019 from $ 3.731 billion last year primarily due to an increase in retained earnings of $ 1.120 billion and an increase in other capital of $ 256.6 million , partially offset by purchases of treasury stock and treasury stock received from stock option exercises totaling $ 935.8 million and an increase in accumulated other comprehensive loss of $ 49.6 million . retained earnings increased $ 1.120 billion during 2019 due to net income of $ 1.541 billion , partially offset by $ 420.8 million in cash dividends paid . the increase in other capital of $ 256.6 million was due primarily to the recognition of stock-based compensation expense and stock option exercises . the increase in accumulated other comprehensive loss of $ 49.6 million was due primarily to unfavorable foreign currency translation effects of $ 49.8 million . see the statements of consolidated shareholders equity and statements of consolidated comprehensive income in item 8 for additional information . 28 the company purchased 1.675 million shares of its common stock for treasury during 2019 . the company acquires its common stock for general corporate purposes , and depending on its cash position and market conditions , it may acquire shares in the future . the company had remaining authorization from its board of directors at december 31 , 2019 to purchase 8.45 million shares of its common stock . the company 's 2019 annual cash dividend of $ 4.52 per share represented 38.7 % of 2018 diluted net income per share . the 2019 annual dividend represented the 41 st consecutive year of increased dividend payments since the dividend was suspended in 1978. at a meeting held on february 19 , 2020 , the board of directors increased the quarterly cash dividend to $ 1.34 per share . this quarterly dividend , if approved in each of the remaining quarters of 2020 , would result in an annual dividend for 2020 of $ 5.36 per share or a 32.5 % payout of 2019 diluted net income per share . see the statements of consolidated shareholders ' equity in item 8 for more information concerning shareholders ' equity . cash flow net operating cash increased $ 377.6 million in 2019 to a cash source of $ 2.321 billion from a cash source of $ 1.944 billion in 2018 due primarily to an increase in net income and favorable changes in non-cash items , partially offset by changes in working
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | debt total debt including short-term borrowings decreased by $ 658.5 million to $ 8.685 billion in 2019 . this was primarily attributable to the company repurchasing $ 1.071 billion of its 2.25 % senior notes due may 2020 and $ 490.0 million of its 2.75 % senior notes due june 2022 , partially offset by the company issuing $ 800.0 million of 2.95 % senior notes due 2029 and $ 550.0 million of 3.80 % senior notes due 2049 ( collectively the `` new notes '' ) in a public offering during the third quarter of 2019. the net proceeds from the issuance of the new notes will be used for general corporate purposes . the repurchases of senior notes above resulted in a loss of $ 14.8 million recorded in other expense ( income ) - net . see note 18 to the consolidated financial statements in item 8 for additional information . on may 9 , 2019 , the company entered into a u.s. dollar to euro cross currency swap contract with a total notional amount of $ 400.0 million to hedge the company 's net investment in its european operations . this contract has been designated as a net investment hedge and will mature on january 15 , 2022. during the term of the contract , the company will pay fixed-rate interest in euros and receive fixed-rate interest in u.s. dollars , thereby effectively converting a portion of the company's u.s. dollar denominated fixed-rate debt to euro denominated fixed-rate debt .
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▪ in december 2017 , the company entered into an agreement to sell its entire ownership interest in anchor in a transaction that will result in anchor being majority-owned by members of its management team . the company 's annual goodwill impairment test resulted in a fourth quarter 2017 goodwill impairment charge of $ 24.9 million . the company will receive at closing approximately $ 32 million of cash and future revenue share payments that , at signing , have a net present value of approximately $ 15 million , subject to purchase price adjustments . in addition to the goodwill impairment charge the holding company recorded a $ 1.3 million loss on sale for the estimated closing expenses related to this transaction . this transaction has been approved by the company 's board of directors and is subject to obtaining client consents , anchor raising debt financing , and customary closing conditions . ▪ the company recorded total operating expenses of $ 299.9 million for the year ended december 31 , 2017 , compared to total operating expenses of $ 265.0 million in 2016 . excluding goodwill impairment charges in 2017 and goodwill impairment and restructuring charges in 2016 , total operating expenses increased $ 21.6 million , or 9 % in 2017 from 2016. this increase in operating expense was due to increases in salaries and employee benefits , information systems , occupancy and equipment , and professional fees expenses . ▪ in december 2017 , the tax act was enacted by the u.s. government . substantially all of the provisions of the tax act are effective as of january 1 , 2018. the more significant changes in the tax act that impact the company are the reduction in the federal corporate tax rate from 35 % to 21 % and the changes to the deductibility of executive compensation , both of which are effective as of january 1 , 2018. under asc 740 , the tax effects of changes in tax laws must be recognized in the period in which the law is enacted , or december 2017 for the tax act . asc 740 also requires deferred tax assets and liabilities to be measured at 31 the enacted tax rate expected to apply when temporary differences are to be realized or settled . the company re-measured its deferred tax assets and liabilities at the 21 % federal corporate tax rate , reevaluated its investments in affordable housing projects using the 21 % federal corporate tax rate , and reduced its deferred tax assets associated with executive compensation that is no longer deductible . as a result of these changes , the company recorded a federal tax expense of $ 12.9 million in the fourth quarter of 2017 , which is the primary driver of the higher income tax expense for the year ended december 31 , 2017 as compared to 2016 and 2015 . ▪ assets under management and advisory ( “ aum ” ) , excluding anchor , increased $ 2.4 billion , or 13 % , for the year ended december 31 , 2017 to $ 21.2 billion due to net flows of $ 0.5 billion and market appreciation of $ 2.0 billion . positive net flows were seen in all three wealth management segments . private banking the following table presents a summary of selected financial data for the private banking segment for 2017 , 2016 , and 2015 . replace_table_token_8_th nm - not meaningful ( 1 ) deposits presented in this table do not include intercompany eliminations related to deposits in the bank from wealth and investment affiliates or the holding company . the company 's private banking segment reported net income attributable to the company of $ 53.4 million in the year ended december 31 , 2017 , compared to net income attributable to the company of $ 70.3 million in 2016 and $ 58.0 million in 2015 . the private banking segment reported higher income tax expense due to the re-measurement of deferred tax assets at the new , lower , federal corporate tax rate enacted with the tax act . the re-measurement amounted to $ 14.2 million for the private banking segment and is reflected in the higher income tax expense for the year ended december 31 , 2017 . income before income taxes decreased $ 6.7 million in 2017 as a result of a $ 23.9 million , or 19 % , increase in operating expenses , a decline of $ 8.1 million , or 43 % , in fees and other income , partially offset by an increase of $ 24.6 million , or 12 % in net interest income . the increase in operating expenses we primarily due to increased salaries and employee benefits , information systems , occupancy and equipment , and professional services . the decline in fees in other income was primarily due to lower swap fees . the increase in net interest income was primarily due to increased volume of loans and higher net interest margin . the 2016 increase was due to increased net interest income , increased banking fee income , a higher credit to the provision for loan losses , and a $ 2.9 million gain on sale of offices in southern california , partially offset by increased operating expenses , including in particular higher salaries and employee benefits and occupancy and equipment expenses . total loans at the bank increased $ 0.4 billion , or 6 % , to $ 6.5 billion . total loans were 80 % of total assets at the bank at december 31 , 2017 up from 78 % of total assets at december 31 , 2016 . a discussion of the company 's loan portfolio can be found below in part ii . item 7 . “ management 's discussion and analysis of financial condition and results of operations - loan portfolio and credit quality . story_separator_special_tag in evaluating whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount , an entity assesses relevant events and circumstances , such as the following : macroeconomic conditions , such as a deterioration in general economic conditions , limitations on accessing capital , or other developments in equity and credit markets . industry and market considerations , such as a deterioration in the environment in which an entity operates , an increased competitive environment , a decline in market-dependent multiples or metrics ( considered in both absolute terms and relative to peers ) , a change in the market for an entity 's products or services , or a regulatory or political development . overall financial performance , such as negative or declining cash flows or a decline in actual or planned revenue or earnings compared with actual and projected results of relevant prior periods . other relevant entity-specific events , such as changes in management , key personnel , strategy , or customers ; contemplation of bankruptcy ; or litigation . 37 events affecting a reporting unit , such as a change in the composition or carrying amount of its net assets ; a more-likely-than-not expectation of selling or disposing all , or a portion , of a reporting unit ; the testing for recoverability of a significant asset group within a reporting unit ; or recognition of a goodwill impairment loss in the financial statements of a subsidiary that is a component of a reporting unit . if , after assessing the totality of events or circumstances such as those described in the preceding paragraph , an entity determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount , then the quantitative goodwill impairment test , as described below , is unnecessary . goodwill is tested for impairment by estimating the fair value of a reporting unit . significant judgment is applied when goodwill is assessed for impairment . this judgment includes developing cash flow projections , selecting appropriate discount rates , identifying relevant market comparables , incorporating general economic and market conditions , and selecting an appropriate control premium . the selection and weighting of the various fair value techniques may result in a higher or lower fair value . judgment is applied in determining the weightings that are most representative of fair value . quantitative impairment testing requires a comparison of each reporting unit 's fair value to carrying value to identify potential impairment . if the carrying amount of a reporting unit exceeds the reporting unit 's fair value , an impairment loss is recognized . in adopting asu 2017-04 , the company measures that loss as an amount equal to that excess , limited to the total amount of goodwill allocated to that reporting unit . additionally , the company considers the income tax effect from any tax deductible goodwill on the carrying amount of the reporting unit , if applicable , when measuring the goodwill impairment loss . the fair value of the reporting unit is determined using generally accepted approaches to valuation commonly referred to as the income approach , market approach , and cost approach . within each category , a variety of methodologies exist to assist in the estimation of fair value . generally a valuation consultant will be engaged to assist with the valuation . bpfh has three reportable segments that have goodwill : wealth management and trust , investment management , and wealth advisory . boston private wealth is the only reporting unit within the wealth management and trust segment . anchor and dghm are the reporting units within the investment management segment . dghm does not have any remaining goodwill . bos and kls are the reporting units within the wealth advisory segment . because discrete financial information is available and segment management regularly reviews the operating results of anchor , kls , and bos , they are all considered reporting units . for the reporting units within the investment management , wealth advisory , and wealth management and trust segments , the company utilizes both the income and market approaches to determine fair value of the reporting units . the income approach is primarily based on discounted cash flows derived from assumptions of income statement activity . for the market approach , earnings before interest , taxes , depreciation and amortization ( “ ebitda ” ) and revenue multiples of comparable companies are selected and applied to the financial services reporting unit 's applicable metrics . the aggregate fair values of the reporting units are compared to market capitalization as an assessment of the appropriateness of the fair value measurements . a control premium analysis is performed to determine whether the implied control premium was within range of overall control premiums observed in the market place . if the carrying amount of the reporting unit 's goodwill is greater than the fair value of the reporting unit 's goodwill , an impairment loss must be recognized for the excess ( i.e . , recorded goodwill must be written down to the implied fair value of the reporting unit 's goodwill ) . after a goodwill impairment loss for a reporting unit is measured and recognized , the adjusted carrying amount of the reporting unit 's goodwill becomes the new accounting basis for that goodwill . income tax estimates the company accounts for income taxes in accordance with asc 740 , income taxes ( “ asc 740 ” ) . the deferred tax assets and or liabilities are determined by multiplying the differences between the financial reporting and tax reporting basis for assets and liabilities by the enacted tax rates expected to be in effect when such differences are recovered or settled . the effect on deferred taxes for a change in tax rates is recognized in income tax expense/ ( benefit )
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash and investments . total cash and investments ( consisting of cash and cash equivalents , investment securities , and stock in the fhlb and federal reserve bank ) decreased $ 82.4 million , or 5 % , to $ 1.4 billion , or 17 % of total assets at december 31 , 2017 from $ 1.5 billion , or 19 % of total assets at december 31 , 2016 . the decrease was due to the $ 93.8 million , or 7 % , decrease in available-for-sale securities and the $ 18.5 million , or 20 % , decrease in held-to-maturity securities , partially offset by the $ 15.9 million , or 36 % , increase in stock in the fhlb and federal reserve bank and the $ 14.0 million , or 13 % , increase in cash and cash equivalents . the changes in cash and investments were the net result of short-term fluctuations in liquidity due to changes in levels of deposits , borrowings and loans outstanding . additionally , on july 28 , 2017 , the bank became a member of the federal reserve system , which required the purchase of stock in the federal reserve bank of boston . the majority of the investments held by the company are held by the bank . the bank 's investment policy requires management to maintain a portfolio of securities which will provide liquidity necessary to facilitate funding of loans , to cover deposit fluctuations , and to mitigate the bank 's overall balance sheet exposure to interest rate risk , while at the same time earning a satisfactory return on the funds invested . the securities in which the bank may invest are subject to regulation and are generally limited to securities that are considered “ investment grade. ” purchases of investment securities , net of investment maturities , calls , principal payments , and sales , used $ 109.9 million of cash during the year ended december 31 , 2017 , compared to $ 184.0 million in net purchases for the year ended december 31 , 2016 . net proceeds are generally used to purchase new investments or fund a portion of loan growth .
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in general , we prefer to utilize local third-party property managers for day-to-day property management and as a source of acquisition opportunities . we believe outsourcing property management is cost effective and provides us with operational flexibility . we may directly manage properties in the future if we determine such direct property management is in our best interest . we have no current intention to acquire undeveloped or unimproved industrial land or to pursue greenfield ground up development . nevertheless , we pursue redevelopment , renovation and expansion opportunities of properties that we own , acquire properties and improved land parcels with the intent to redevelop in the near-term , and acquire adjacent land to expand our existing facilities . we expect that we will continue to acquire the significant majority of our investments as equity interests in individual properties or portfolios of properties . we may acquire industrial properties through the acquisition of other corporations or entities that own industrial real estate . we will opportunistically make investments in debt secured by industrial real estate that would otherwise meet our investment criteria with the intention of ultimately acquiring the underlying real estate . we currently do not intend to target specific percentages of holdings of particular types of industrial properties . this expectation is based upon prevailing market conditions and may change over time in response to different prevailing market conditions . 28 the properties we acquire may be stabilized ( fully leased ) or unstabilized ( have near term lease expirations , be partially or fully vacant and may require physical repositioning ) . we sell properties from time to time when we believe the prospective total return from a property is particularly low relative to its market value and or the market value of the property is significantly greater than its estimated replacement cost . capital from such sales is reinvested into properties that are expected to provide better prospective returns or returned to shareholders . we have disposed of 23 properties since inception in 2010 for an aggregate sales price of approximately $ 364.7 million and a total gain of approximately $ 119.9 million . 2020 developments covid-19 the covid-19 pandemic , and mitigation measures put in place by governments to slow it , have caused significant economic disruption . we are headquartered in san francisco and our employees have been working remotely in accordance with recommendations by the city of san francisco since march 2020. we utilize local , third-party property managers , and they are generally working remotely , as recommended by their municipalities . we have business continuity and communication plans that have allowed , and we believe , although there can be no assurance , will continue to allow us to operate and manage our portfolio effectively during such disruptions . we expect that we will , for the intermediate term , employ lower density work arrangements consistent with social distancing and our business continuity plan . while the impact of the covid-19 pandemic on our business is not possible to predict accurately , we continue to work with our customers who have been forced to close or otherwise limit operations or whose businesses have been adversely impacted during the covid-19 pandemic to , on a case-by-case basis , provide rent deferments . through february 8 , 2021 , we have granted rent deferrals to 62 tenants aggregating approximately 2.8 % of annualized base rent . no rent abatements were granted . for the 62 rent deferrals granted : 17 tenants aggregating 0.3 % of annualized base rent ( 11.0 % of total deferrals ) have completed their rent deferral period and have fully repaid the deferral amounts ; 31 tenants aggregating 2.1 % of annualized base rent ( 73.6 % of total deferrals ) have not completed their rent deferral repayment period and are fulfilling the terms of their deferral agreements ; and 14 tenants aggregating 0.4 % of annualized base rent ( 15.4 % of total deferrals ) have defaulted on their rent deferral repayments . the acquisition and disposition markets slowed in the early months of the covid-19 pandemic as market participants searched for price discovery . while transaction markets have returned to more normal volumes , our acquisition volume will remain dependent on both the quality and pricing of the opportunity set and the price of our stock relative to net asset value per share . we believe , although there can be no assurance , that our balance sheet is well positioned to make opportunistic acquisitions as we have only $ 11.3 million of debt maturities expiring in 2021 and no balance outstanding on our $ 250 million revolving credit facility . in addition , we had a cash balance of approximately $ 107.2 million as of december 31 , 2020. see “ item 1a - risk factors ” in this annual report on form 10-k for additional discussion regarding the risks to which we are and may be subject as a result of the covid-19 pandemic . acquisition activity during 2020 , we acquired six industrial buildings containing approximately 0.2 million square feet and five improved land parcels containing approximately 12.0 acres for a total purchase price of approximately $ 96.7 million . the buildings and improved land parcels were acquired from unrelated third parties using existing cash on hand , net proceeds from dispositions and net proceeds from the issuance of common stock . the following table sets forth the industrial buildings and improved land parcels we acquired during 2020 : 29 replace_table_token_6_th 1 the total aggregate initial investment was approximately $ 100.4 million , including $ 1.7 million in closing costs and acquisition costs . additionally , we assumed $ 2.1 million in intangible liabilities . story_separator_special_tag acquisition costs increased $ 0.2 million for the year ended december 31 , 2020 compared to the year ended december 31 , 2019 primarily due to dead deal costs incurred during 2020 with respect to potential acquisitions that did not close . interest and other income . interest and other income decreased approximately $ 2.9 million for the year ended december 31 , 2020 compared to the prior year primarily due to lower interest and fees earned on our senior secured loan , offset by interest earned on higher cash balances held during the year ended december 31 , 2020. interest expense , including amortization . interest expense decreased approximately $ 0.3 million for the year ended december 31 , 2020 compared to the prior year due primarily to lower average interest rate on our term loan and lower average outstanding borrowings on our mortgage loans payable , offset by a decrease of $ 0.1 million in capitalized interest compared to the prior year . gain on sales of real estate investments . gain on sales of real estate investments increased approximately $ 17.4 million for the year ended december 31 , 2020 compared to the prior year . the aggregate sales price for property sales for the year ended december 31 , 2020 was approximately $ 73.5 million as compared to approximately $ 48.9 million for the prior year . the following analysis of our results below for the years ended december 31 , 2019 and 2018 includes the changes attributable to same store properties . the same store pool for the comparison of the 2019 and 2018 fiscal years includes all properties that were owned and in operation as of december 31 , 2019 and since january 1 , 2018 and excludes properties that were either disposed of prior to , held for sale to a third-party or in redevelopment as of december 31 , 2019. as of december 31 , 2019 , the same store pool consisted of 187 buildings aggregating approximately 11.8 million square feet representing approximately 88.6 % of our total square feet owned and ten improved land parcels consisting of approximately 47.2 acres . as of december 31 , 2019 , the non-same store properties , which we acquired or sold during 2018 and 2019 , were held for sale ( if any ) or in redevelopment as of december 31 , 2019 , consisted of 33 buildings aggregating approximately $ 1.5 million square feet , nine improved land parcels consisting of approximately 30.4 acres and four properties under redevelopment expected to contain approximately 0.5 million square feet upon completion . as of december 31 , 2019 and 2018 , our consolidated same store pool occupancy was approximately 98.4 % and 99.1 % , respectively . 35 comparison of the year ended december 31 , 2019 to the year ended december 31 , 2018 : replace_table_token_11_th 1 on january 1 , 2019 , we adopted the practical expedient under asu no . 2018-11 , leases ( topic 842 ) , targeted improvements , which allows us to elect not to separate lease and non-lease rental income . all rental income earned pursuant to tenant leases is reflected as one line , “ rental revenues and tenant expense reimbursements ” on our accompanying consolidated statements of operations . we believe that the above presentation of rental revenues and tenant expense reimbursements is not , and is not intended to be , a presentation in accordance with gaap . we believe this information is frequently used by management , investors , and other interested parties to evaluate our performance . see “ note 2 - significant accounting policies ” in our condensed notes to consolidated financial statements for more information regarding our adoption of this standard . 2 includes 2018 and 2019 acquisitions and dispositions , nine improved land parcels and four properties under redevelopment as of december 31 , 2019 . 3 includes straight-line rents and amortization of lease intangibles . see “ non-gaap financial measures ” in this annual report on form 10-k for a reconciliation of net operating income and same store net operating income from net income and a discussion of why we believe net operating income and same store net operating income are useful supplemental measures of our operating performance . 36 revenues . total revenues increased approximately $ 19.4 million for the year ended december 31 , 2019 compared to the prior year due primarily to property acquisitions during 2019 and 2018 and increased revenue on new and renewed leases . cash rents on new and renewed leases totaling 0.2 million square feet commencing during the year ended december 31 , 2019 increased approximately 17.3 % compared to the same period from the prior year . for the three months and year ended december 31 , 2019 , approximately $ 0.3 million and $ 2.0 million , respectively , was recorded in straight-line rental revenues related to contractual rent abatements given to certain tenants . property operating expenses . total property operating expenses increased approximately $ 4.2 million during the year ended december 31 , 2019 compared to the prior year . the increase in total property operating expenses was due primarily to an increase of approximately $ 3.5 million attributable to property acquisitions during 2019 and 2018. depreciation and amortization . depreciation and amortization increased approximately $ 3.2 million during the year ended december 31 , 2019 compared to the prior year due to property acquisitions during 2019 and 2018. general and administrative expenses . general and administrative expenses increased approximately $ 2.4 million for the year ended december 31 , 2019 compared to the prior year due primarily to increased compensation expense , bonus expense , accounting service fees , and performance share award expense . the increase in performance share award expense primarily related to the expense for performance share awards granted prior to january 1 , 2019 , which varies quarter to quarter based on our
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources the primary objective of our financing strategy is to maintain financial flexibility with a conservative capital structure using retained cash flows , proceeds from dispositions of properties , long-term debt and the issuance of common and perpetual preferred stock to finance our growth . over the long-term , we intend to : limit the sum of the outstanding principal amount of our consolidated indebtedness and the liquidation preference of any outstanding perpetual preferred stock to less than 35 % of our total enterprise value ; maintain a fixed charge coverage ratio in excess of 2.0x ; maintain a debt-to-adjusted ebitda ratio below 6.0x ; limit the principal amount of our outstanding floating rate debt to less than 20 % of our total consolidated indebtedness ; and have staggered debt maturities that are aligned to our expected average lease term ( 5-7 years ) , positioning us to re-price parts of our capital structure as our rental rates change with market conditions . we intend to preserve a flexible capital structure with a long-term goal to maintain our investment grade rating and be in a position to issue additional unsecured debt and perpetual preferred stock . fitch ratings assigned us an issuer rating of bbb with a stable outlook . a security rating is not a recommendation to buy , sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency . there can be no assurance that we will be able to maintain our current credit rating . our credit rating can affect the amount and type of capital we can access , as well as the terms of any financings we may obtain . in the event our current credit rating is downgraded , it may become difficult or expensive to obtain additional 37 financing or refinance existing obligations and commitments . we intend to primarily utilize senior unsecured notes , term loans , credit facilities , dispositions of properties , common stock and perpetual preferred stock . we may also assume debt in connection with property acquisitions which may have a higher loan-to-value ratio .
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at december 31 , 2017 , our annualized net debt-to-adjusted ebitda ratio on a pro-rata basis was 5.4x . leasing activity and significant tenants we believe our high-quality , grocery anchored shopping centers located in densely populated , desirable infill trade areas create attractive spaces for retail tenants . pro-rata occupancy the following table summarizes pro-rata occupancy rates of our combined consolidated and unconsolidated shopping center portfolio : 41 replace_table_token_16_th the decline in shop space percent leased is due to the merger with equity one , which had lower shop space occupancy than regency . pro-rata leasing activity the following table summarizes leasing activity , including our pro-rata share of activity within the portfolio of our co-investment partnerships : year ended december 31 , 2017 leasing transactions ( 1 ) ( 3 ) sf ( in thousands ) base rent psf ( 2 ) tenant improvements psf ( 2 ) leasing commissions psf ( 2 ) anchor leases new 39 895 $ 17.34 $ 9.71 $ 4.92 renewal 87 2,465 14.47 — 0.46 total anchor leases 126 3,360 $ 15.24 $ 2.59 $ 1.65 shop space new 548 952 $ 32.45 $ 12.06 $ 13.17 renewal 1,175 2,005 31.31 1.02 2.40 total shop space leases 1,723 2,957 $ 31.68 $ 4.57 $ 5.87 total leases 1,849 6,317 $ 22.93 $ 3.52 $ 3.62 ( 1 ) number of leasing transactions reported at 100 % ; all other statistics reported at pro-rata share . ( 2 ) totals for base rent , tenant improvements , and leasing commissions reflect the weighted average psf . ( 3 ) for the period ending december 31 , 2017 , amounts include leasing activity of properties acquired from equity one beginning march 1 , 2017. year ended december 31 , 2016 leasing transactions ( 1 ) sf ( in thousands ) base rent psf ( 2 ) tenant improvements psf ( 2 ) leasing commissions psf ( 2 ) anchor leases new 22 729 $ 16.99 $ 7.95 $ 2.42 renewal 84 1,610 14.00 0.50 0.54 total anchor leases ( 1 ) 106 2,339 $ 14.94 $ 2.83 $ 1.13 shop space new 443 774 $ 30.56 $ 12.29 $ 14.01 renewal 987 1,502 31.16 1.26 3.87 total shop space leases ( 1 ) 1,430 2,276 $ 30.95 $ 5.01 $ 7.32 total leases 1,536 4,615 $ 22.84 $ 3.90 $ 4.18 ( 1 ) number of leasing transactions reported at 100 % ; all other statistics reported at pro-rata share . ( 2 ) totals for base rent , tenant improvements , and leasing commissions reflect the weighted average psf . total average pro-rata base rent on signed shop space leases during 2017 was $ 31.68 psf and approximates the pro-rata average annual base rent of all shop space leases due to expire during the next twelve months of $ 31.72 psf . 42 significant tenants and concentrations of risk we seek to reduce our operating and leasing risks through geographic diversification and by avoiding dependence on any single property , market , or tenant . the following table summarizes our most significant tenants , based on their percentage of annualized base rent : december 31 , 2017 anchor number of stores percentage of company- owned gla ( 1 ) percentage of annualized base rent ( 1 ) publix 69 6.2 % 3.1 % kroger 58 6.5 % 3.1 % albertsons/safeway 46 4.0 % 2.9 % tjx companies 58 3.2 % 2.4 % whole foods 27 2.2 % 2.3 % ( 1 ) includes regency 's pro-rata share of unconsolidated properties and excludes those owned by anchors . bankruptcies and credit concerns our management team devotes significant time to researching and monitoring retail trends , consumer preferences , customer shopping behaviors , changes in retail delivery methods , and changing demographics in order to anticipate the challenges and opportunities impacting the retail industry . a greater shift to e-commerce , large-scale retail business failures , unemployment , and tight credit markets could negatively impact consumer spending and have an adverse effect on our results of operations . we seek to mitigate these potential impacts through tenant diversification , re-tenanting weaker tenants with stronger operators , anchoring our centers with market leading grocery stores that drive foot traffic , and maintaining a presence in affluent suburbs and dense infill trade areas . as a result of our research and findings , we may reduce new leasing , suspend leasing , or curtail allowances for construction of leasehold improvements within a certain retail category or to a specific retailer in order to reduce our risk from bankruptcies and store closings . we closely monitor the operating performance and rent collections of tenants in our shopping centers as well as those retailers experiencing significant changes to their business models as a result of reduced customer traffic in their stores and increased competition from e-commerce sales . retailers who are unable to withstand these and other business pressures may file for bankruptcy . although base rent is supported by long-term lease contracts , tenants who file bankruptcy generally have the legal right to reject any or all of their leases and close related stores . any unsecured claim we hold against a bankrupt tenant for unpaid rent might be paid only to the extent that funds are available and only in the same percentage as is paid to all other holders of unsecured claims . as a result , it is likely that we would recover substantially less than the full value of any unsecured claims we hold . additionally , we may incur significant expense to recover our claim and to release the vacated space . in the event that a tenant with a significant number of leases in our shopping centers files bankruptcy and cancels its leases , we could experience a significant reduction in our revenues . story_separator_special_tag 51 same property rollforward : our same property pool includes the following property count , pro-rata gla , and changes therein : 2017 2016 ( gla in thousands ) property count gla property count gla beginning same property count 289 26,392 300 26,508 acquired properties owned for entirety of comparable periods 1 180 6 443 developments that reached completion by beginning of earliest comparable period presented 2 331 2 342 disposed properties ( 7 ) ( 546 ) ( 19 ) ( 933 ) properties acquired through equity one merger 110 14,181 — — sf adjustments ( 1 ) — 63 — 32 ending same property count 395 40,601 289 26,392 ( 1 ) sf adjustments arise from remeasurements or redevelopments . nareit ffo and core ffo : our reconciliation of net income attributable to common stock and unit holders to nareit ffo and core ffo is as follows : ( in thousands , except share information ) 2017 2016 reconciliation of net income to nareit ffo net income attributable to common stockholders $ 159,949 143,860 adjustments to reconcile to nareit ffo : ( 1 ) depreciation and amortization ( excluding ff & e ) 364,908 193,451 provision for impairment to operating properties — 3,159 gain on sale of operating properties , net of tax ( 30,402 ) ( 63,426 ) exchangeable operating partnership units 388 257 nareit ffo attributable to common stock and unit holders $ 494,843 277,301 reconciliation of nareit ffo to core ffo nareit ffo attributable to common stock and unit holders $ 494,843 277,301 adjustments to reconcile to core ffo : ( 1 ) development pursuit costs 1,569 1,503 deferred income tax benefit ( 9,737 ) — acquisition pursuit and closing costs 138 2,007 merger related costs 80,715 6,539 gain on sale of land ( 3,623 ) ( 8,769 ) provision for impairment to land — 580 ( gain ) loss on derivative instruments and hedge ineffectiveness ( 15 ) 40,589 loss on early extinguishment of debt 12,449 14,207 preferred redemption charge 12,227 — merger related debt offering interest 975 — hurricane losses 2,596 — core ffo attributable to common stockholders $ 592,137 333,957 ( 1 ) includes regency 's pro-rata share of unconsolidated investment partnerships , net of pro-rata share attributable to noncontrolling interests . 52 reconciliation of same property noi to nearest gaap measure : our reconciliation of property revenues and property expenses to same property noi , on a pro-rata basis , is as follows : 2017 2016 ( in thousands ) same property other ( 1 ) total same property other ( 1 ) total net income attributable to common stockholders $ 340,455 ( 180,506 ) 159,949 278,322 ( 134,462 ) 143,860 less : management , transaction , and other fees — 26,158 26,158 — 25,327 25,327 gain on sale of real estate , net of tax — 27,432 27,432 — 47,321 47,321 other ( 2 ) 33,935 13,422 47,357 5,849 10,295 16,144 plus : depreciation and amortization 308,311 25,890 334,201 146,708 15,619 162,327 general and administrative — 67,624 67,624 — 65,327 65,327 other operating expense , excluding provision for doubtful accounts 906 74,590 75,496 1,966 10,410 12,376 other expense ( income ) 44,745 96,348 141,093 28,335 119,731 148,066 equity in income ( loss ) of investments in real estate excluded from noi ( 3 ) 51,069 2,221 53,290 31,050 2,902 33,952 net income attributable to noncontrolling interests — 2,903 2,903 — 2,070 2,070 preferred stock dividends and issuance costs — 16,128 16,128 — 21,062 21,062 same property noi for non-ownership periods of equity one ( 4 ) 42,245 — 42,245 248,036 — 248,036 pro-rata noi , as adjusted $ 753,796 38,186 791,982 728,568 19,716 748,284 ( 1 ) includes revenues and expenses attributable to non-same property , sold property , development properties , corporate activities , and noncontrolling interests . ( 2 ) includes straight-line rental income and expense , net of reserves , above and below market rent amortization , other fees , and noncontrolling interest . ( 3 ) includes non-noi expenses incurred at our unconsolidated real estate partnerships , including those separated out above for our consolidated properties . ( 4 ) noi from equity one prior to the merger was derived from the accounting records of equity one without adjustment . equity one 's financial information for the period ended february 28 , 2017 and the period ended december 31 , 2016 was subject to a limited internal review by regency . the table below provides same property noi detail for the non-ownership periods of equity one . replace_table_token_27_th 53 liquidity and capital resources general we use cash flows generated from operating , investing , and financing activities to strengthen our balance sheet , finance our development and redevelopment projects , fund our investment activities , and maintain financial flexibility . we continuously monitor the capital markets and evaluate our ability to issue new debt or equity , to repay maturing debt , or fund our capital commitments . except for the $ 500 million of unsecured public and private placement debt assumed with the equity one merger on march 1 , 2017 , our parent company has no capital commitments other than its guarantees of the commitments of our operating partnership . all remaining debt is held by our operating partnership or by our co-investment partnerships . the operating partnership is a co-issuer and a guarantor on the $ 500 million of outstanding debt of our parent company assumed in the equity one merger . the parent company will from time to time access the capital markets for the purpose of issuing new equity and will simultaneously contribute all of the offering proceeds to the operating partnership in exchange for additional partnership units . based upon our available sources of capital , our current credit ratings , and the number of high quality , unencumbered properties we own , we believe our available capital resources are sufficient to meet our expected capital needs . in addition
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | net cash provided by financing activities : net cash flows generated from financing activities increased by $ 480.2 million during 2017 , as follows : replace_table_token_31_th significant financing activities during the years ended december 31 , 2017 and 2016 include the following : we raised $ 88.5 million during december 2017 upon settling the remaining 1,250,000 shares under the forward equity offering . we raised $ 548.9 million during 2016 by : ◦ issuing 182,787 shares of common stock through our atm program at an average price of $ 68.85 per share resulting in net proceeds of $ 12.3 million , ◦ issuing 1,850,000 shares under our forward equity offering at an average price of $ 74.32 per share resulting in proceeds of $ 137.5 million , and ◦ issuing 5,000,000 shares of common stock at $ 79.78 per share resulting in net proceeds of $ 400.1 million . we repurchased for cash a portion of the common stock related to stock based compensation to satisfy employee federal and state tax withholding requirements . the repurchases increased $ 10.7 million in 2017 primarily due to the vesting of equity one 's stock based compensation program as a result of the merger . we redeemed all of the issued and outstanding shares of our 6.625 % series 6 and 6.000 % series 7 cumulative redeemable preferred stock on february 16 , 2017 and august 23 , 2017 , respectively , for $ 325.0 million . net distributions to consolidated partnerships increased $ 3.9 million primarily due to excess proceeds from property refinancings during 2017. as a result of the shares of common stock issued during 2016 and common shares issued as merger consideration during 2017 , combined with an increase in our quarterly dividend rate , our annual dividend payments increased $ 105.9 million .
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in addition , plus has an early preclinical investigational drug which is a proprietary combination of rhenium nanpoliposomes and liposomal doxorubicin . theoretically , this combination could provide a synergistic combination of both chemotherapy and radiation in a single treatment . current business activities related to both doceplus and doxoplus are focused on identification of potential partners for these two drugs . plus ' rnl technology was a key part of the licensed radiotherapeutic portfolio that we acquired from nanotx , corp. ( “ nanotx ” ) on may 7 , 2020. the licensed radiolabeled nanoliposome platform can be applied toward several cancer targets and was developed by a multi-institutional consortium based in texas at the mays cancer center / ut health san antonio md anderson cancer center now led by dr. andrew brenner , md , phd , who is the kolitz chair in neuro-oncology research and co-leader of the experimental and developmental therapeutics program . the licensed technology was previously funded by both the national institutes of health/national cancer institute ( nih/nci ) and the cancer prevention and research institute of texas ( cprit ) . dr. 42 brenner 's rnl research program has an active $ 3m award from nih/nci which will financially support the continued clinical development of rnl for recurrent glioblastoma through the completion of a phase 2 clinical trial and enrollment of up to 55 patients . plus therapeutics ' lead investigational drug , rnl , is a novel injectable radiotherapy designed to deliver targeted high dose radiation directly into a brain tumor in a safe , effective , and convenient manner to optimize patient outcomes . rnl , which is composed of radionuclide rhenium-186 ( 186 re ) and a nanoliposomal carrier , is infused directly into the brain tumor via precision brain mapping and convection enhanced delivery . the rnl radiation dose delivered to patients may be up to 15-20x greater than what is possible with external beam radiation therapy ( ebrt ) . some additional potential benefits of rnl compared to ebrt include : - rnl can be visualized in real-time during administration , possibly giving doctors better control of radiation dosing and distribution . - potentially more effectively treats the bulk tumor and microscopic disease in surrounding healthy tissue . - using a small catheter , rnl is infused directly into the targeted tumor , which may reduce radiation exposure to healthy cells . by contrast , ebrt is less targeted and selective . - rnl is given during a single 3- to 4-day in-patient hospital visit , while ebrt requires out-patient visits 5 days a week for approximately 6 weeks . recurrent glioblastoma ( gbm ) affects approximately 12,000 patients annually in the u.s. and is the most common and lethal form of brain cancer . the average life expectancy with glioblastoma is less than 24 months , with a one-year survival rate of 40.8 % and a five-year survival rate of only 6.8 % . gbm can cause headaches , seizures , vision changes and other neurological complications . despite the best available medical treatments to eliminate the initial brain tumor , some microscopic disease frequently remains , with tumor regrowth within months . in fact , approximately 90 % of patients experience tumor recurrence . this tumor type is incredibly difficult to remove completely , and often is resistant or quickly develops resistance to most available therapies . the treatment of gbm remains a significant challenge and it has been nearly a decade since the fda approved a new therapy for this disease . there is no clear standard of care for recurrent gbm and even the few currently approved treatments , in aggregate , provide only marginal survival benefit . current approved therapies are associated with significant side effects , which limit dosing and prolonged use . by infusing the rnl drug directly into the tumor , bypassing the blood-brain barrier , normal brain and external tissues may be spared from radiation damage . we believe that radiation in the form of high energy electrons may be effective against glioblastoma if an adequate dose can be effectively delivered . for comparison , current ebrt protocols for recurrent glioblastoma typically recommend a total maximum dose of about 35 gy . in contrast , the most recently dosed patient with rnl in our clinical trial received over 500 gy without significant adverse effects to-date . rnl is currently being evaluated for the treatment of recurrent glioblastoma in the phase 1 multi-center respect dose-finding clinical trial . respect is evaluating the safety , tolerability , and distribution of rnl for the treatment of recurrent glioblastoma . thus far , rnl has demonstrated early potential efficacy signals in patients with adequate dosing and tumor coverage with two patients surviving more than 30 months , compared to a median survival of approximately 9 months with the current standard of care . the sixth dose escalation cohort of this trial has been completed , which increased the rnl drug volume to 8.8 milliliters and radiation dose to 22.3 millicuries . the increased treatment volume in the sixth cohort will allow treatment of tumors up to approximately 4.5 cm in size , which may include the majority of glioblastoma tumors that appear in the recurrent setting . no treatment-related saes have been observed thus far . respect is supported by an award from the national cancer institute ( nci ) , part of the u.s. national institutes of health ( nih ) . in september 2020 , the fda granted both orphan drug designation and fast track designation to rnl for the treatment of patients with glioblastoma . based on substantial preclinical work completed and published , rnl is thought to have potential clinical benefits in other difficult to treat cancers such as leptomeningeal carcinomatosis , peritoneal carcinomatosis , recurrent head and neck cancer , and pediatric brain cancer . story_separator_special_tag on august 19 , 2019 , we received written notice from nasdaq indicating that , based on our stockholders ' deficit of $ 6.3 million as of june 30 , 2019 , as reported in our quarterly report on form 10-q for the quarter ended june 30 , 2019 , we were no longer in compliance with the minimum stockholders ' equity requirement for continued listing on the nasdaq capital market under nasdaq listing rule 5550 ( b ) ( 1 ) , which requires listed companies to maintain stockholders ' equity of at least $ 2.5 million . we continue to seek additional capital through strategic transactions and other financing alternatives . without additional capital , current working capital and cash generated from sales will not provide adequate funding for research and product development activities at their current levels . if sufficient capital is not raised , we will at a minimum need to significantly reduce or curtail our research and development and other operations , and this would negatively affect our ability to achieve corporate growth goals . although the stock markets and our stock price have recovered to some extent in recent weeks , there may likely be continued market volatility due to the pandemic or other events , which could cause our stock price to decline . this in turn will likely negatively impact our ability to raise funds through equity-related financings . further , a continued global economic downturn may impair our ability to obtain additional financing through other means , such as strategic transactions or debt financing . the overall deterioration 48 of the credit and financial markets due to the covid-19 pandemic will likely generally reduce our ability to obtain additional financing to fund our operations . should we be unable to raise additional cash from outside sources or if we are unable to do so in a timely manner or on commercially reasonable terms , it would have a material adverse impact on our operations . cash ( used in ) provided by operating , investing and financing activities for the years ended december 31 , 2020 and 2019 is summarized as follows ( in thousands ) : replace_table_token_6_th operating activities net cash used in operating activities for the year ended december 31 , 2020 was $ 8.4 million compared to $ 5.9 million in the same period of 2019. overall , our operational cash use increased during the year ended december 31 , 2020 as compared to the same period in 2019 , due primarily to timing of cash payments made for operating assets and liabilities . investing activities net cash used in investing activities for year ended december 31 , 2020 was primarily related to cash payments of $ 0.4 million made for in process research and development assets from nanotx , and $ 0.1 million for purchases of fixed assets . net cash provided by investing activities for the year ended december 31 , 2019 were related to the sale of the cell therapy business for gross proceeds of $ 5.6 million . financing activities net cash used for financing activities for the year ended december 31 , 2020 was related to repayment of $ 5.0 million of the term loan in april 2020 , and cash payments of $ 0.1 million for our finance leases , offset by cash proceeds received from issuance of common stock of $ 4.0 million and warrant exercises of $ 1.1 million . net cash provided by financing activities for the year ended december 31 , 2019 was primarily related to net proceeds of $ 16 million received from the september 2019 offering , and the sale of common stock under the purchase agreement dated september 21 , 2018 with lincoln park , proceeds from the exercise of warrants of $ 0.5 million , partially offset by the principal payment of long-term obligations of $ 3.7 million . off-balance sheet arrangements we do not have any off-balance sheet arrangements ( as defined by applicable regulations of the sec ) that are reasonably likely to have a current or future material effect on our financial condition , results of operations , liquidity , capital expenditures or capital resources . critical accounting policies and significant estimates the preparation of financial statements in conformity with accounting principles generally accepted in the united states requires us to make estimates and assumptions that affect the reported amounts of our assets , liabilities , revenue , and expenses , and that affect our recognition and disclosure of contingent assets and liabilities . while our estimates are based on assumptions we consider reasonable at the time they were made , our actual results may differ from our estimates , perhaps significantly . if results differ materially from our estimates , we will make adjustments to our financial statements prospectively as we become aware of the necessity for an adjustment . we believe it is important for you to understand our most critical accounting policies . these are our policies that require us to make our most significant judgments and , as a result , could have the greatest impact on our future financial results . impairment 49 we assess certain of our long-lived assets , such as property and equipment and intangible assets other than goodwill , for potential impairment when there is a change in circumstances that indicates carrying values of assets may not be recoverable . such long-lived assets are deemed to be impaired when the undiscounted cash flows expected to be generated by the asset ( or asset group ) are less than the asset 's carrying amount . any required impairment loss would be measured as the amount by which the asset 's carryi ng value exceeds its fair value and would be recorded as a reduction in the carrying value of the related asset and a charge to operating expense . there was no impairment in 20 20 or 201 9 . g oodwill goodwill
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources short-term and long-term liquidity the following is a summary of our key liquidity measures ( for continuing operations ) at december 31 , 2020 and 2019 ( in thousands ) : replace_table_token_5_th to date , these operating losses have been funded primarily from outside sources of invested capital in our common stock , proceeds raised from the loan and security agreement , and gross profits . we have had , and we will continue to have , an ongoing need to raise additional cash from outside sources to fund our future clinical development programs and other operations . our inability to raise additional cash would have a material and adverse impact on operations and would cause us to default on our loan . on october 23 , 2020 , we entered into the distribution agreement with canaccord , pursuant to which we may issue and sell , from time to time , atm shares , depending on market demand , with canaccord acting as an agent for sales . sales of the atm shares may be made by any method permitted by law deemed to be an “ at the market offering ” as defined in rule 415 ( a ) ( 4 ) of the securities act of 1933 , as amended ( the “ securities act ” ) , including , without limitation , sales made directly on or through the nasdaq capital market . canaccord will use its commercially reasonable efforts to sell the atm shares we request to be sold on our behalf , consistent with canaccord 's normal trading and sales practices , under the terms and subject to the conditions set forth in the distribution agreement . we have no obligation to sell any of the atm shares . we may instruct canaccord not to sell the atm shares if the sales can not be effected at or above the price we designate from time to time and we may at any time suspend sales pursuant to the distribution agreement . during the year ended december 31 , 2020 , we issued 1,616,331 shares under the distribution agreement for net proceeds of approximately $ 3.2 million .
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total assets increased to $ 913.9 million at december 31 , 2019 from $ 877.3 million at december 31 , 2018. total loans including net deferred fees and unearned income increased by $ 7.3 million , or 1.0 % , to $ 775.6 million as of december 31 , 2019 compared to $ 768.2 million as of december 31 , 2018. total deposits increased by 4.9 % to $ 750.9 million as of december 31 , 2019 from $ 716.0 million as of december 31 , 2018. results of operations the following table sets forth a summary financial overview for the comparable years : replace_table_token_5_th 17 index interest rates and differentials the following table illustrates average yields on interest-earning assets and average rates on interest-bearing liabilities for the periods indicated : replace_table_token_6_th ( 1 ) includes nonaccrual loans . ( 2 ) net interest margin is computed by dividing net interest income by total average earning assets . ( 3 ) net interest spread represents average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities . 18 index replace_table_token_7_th ( 1 ) includes nonaccrual loans . ( 2 ) net interest margin is computed by dividing net interest income by total average earning assets . ( 3 ) net interest spread represents average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities . the table below sets forth the relative impact on net interest income of changes in the volume of earning assets and interest-bearing liabilities and changes in rates earned and paid by the company on such assets and liabilities . for purposes of this table , nonaccrual loans have been included in the average loan balances . replace_table_token_8_th ( 1 ) changes due to both volume and rate have been allocated to volume changes . 19 index comparison of interest income , interest expense and net interest margin commercial loans consist of term loans and revolving business lines of credit . under the terms of the revolving lines of credit , the company grants a maximum loan amount , which remains available to the business during the loan term . the collateral for these loans typically are by uniform commercial code ( “ ucc-1 ” ) lien filings , real estate and personal guarantees . the company does not extend material loans of this type in excess of five years . interest expense for the year ended december 31 , 2019 increased compared to 2018 by $ 2.4 million and increased compared to 2017 by $ 6.7 million , respectively , to $ 11.4 million . the increase for 2019 compared to 2018 was mostly the result of the increase of deposits and increased rates paid on interest-bearing demand deposits and time deposits . the average cost on interest-bearing deposits also increased to 165 basis points in 2019 compared to 128 basis points in 2018. total cost of funds increased by 28 basis points for 2019 compared to 2018 and by 78 basis points compared to 2017. the net impact of the changes in yields on interest-earning assets and the rates paid on interest-bearing liabilities was to decrease the margin for 2019 compared to 2018. the net interest margin was 4.06 % for 2019 compared to 4.07 % for 2018 and 4.34 % in 2017. net interest income increased by $ 0.7 million for 2019 compared to 2018 and $ 1.7 million , compared to 2017. total interest income increased by $ 5.2 million to $ 42.6 million in 2018 compared to 2017. the interest income was impacted by increased yields on earning assets in 2018 which increased to 5.16 % compared to 4.96 % for 2017. the average yield on loans increased to 5.44 % for 2018 compared to 5.24 % for 2017. total interest expense increased by $ 4.3 million in 2018 compared to 2017. this increase was primarily due to increased total cost of funds which include non-interest bearing deposits from 68 basis points for 2017 to 118 basis points for 2018. net interest income increased by $ 1.0 million for 2018 compared to 2017. provision for loan losses the provision for loan losses in each period is reflected as a charge against earnings in that period . the provision for loan losses is equal to the amount required to maintain the allowance for loan losses at a level that is adequate to absorb probable losses inherent in the loan portfolio . the provision ( credit ) for loan losses was $ ( 165,000 ) in 2019 compared to $ 14,000 in 2018 and $ 411,000 in 2017. the provision ( credit ) for loan losses for 2019 resulted primarily from net recoveries and change in the loan portfolio mix . the provision for 2018 resulted primarily from loan growth and change in loan portfolio mix . as a result of improvements in credit quality , decreased historical loss rates , and net recoveries for the year , the ratio of the allowance for loan losses to loans held for investment decreased to 1.19 % at december 31 , 2019 from 1.21 % at december 31 , 2018. additional information regarding improved credit quality can be found beginning on page 26 . 20 index the following table summarizes the provision ( credit ) , charge-offs ( recoveries ) by loan category for the year ended december 31 , 2019 , 2018 and 2017 : replace_table_token_9_th the percentage of net non-accrual loans ( net of government guarantees ) to the total loan portfolio has decreased to 0.31 % as of december 31 , 2019 from 0.44 % at december 31 , 2018 primarily due to commercial loan repayments . story_separator_special_tag the company 's business is concentrated in these areas and the loan portfolio includes significant credit exposure to the manufactured housing and commercial real estate markets of these areas . as of december 31 , 2019 and 2018 , manufactured housing loans comprised 33.2 % and 32.2 % , of total loans , respectively . as of december 31 , 2019 and 2018 , commercial real estate loans accounted for approximately 49.7 % and 47.6 % of total loans , respectively . approximately 31.9 % and 33.8 % of these commercial real estate loans were owner occupied at december 31 , 2019 and 2018 , respectively . substantially all of these loans are secured by first liens with an average loan to value ratios of 54.3 % and 57.9 % at december 31 , 2019 and 2018 , respectively . the company was within established policy limits at december 31 , 2019 and 2018 . 27 index interest reserves interest reserves are generally established at the time of the loan origination as an expense item in the budget for a construction and land development loan . the company 's practice is to monitor the construction , sales and or leasing progress to determine the feasibility of ongoing construction and development projects . if , at any time during the life of the loan , the project is determined not to be viable , the company discontinues the use of the interest reserve and may take appropriate action to protect its collateral position via renegotiation and or legal action as deemed appropriate . at december 31 , 2019 , the company had 11 loans with an outstanding balance of $ 24.0 million with available interest reserves of $ 2.8 million . total construction and land loans are approximately 5 % and 10 % of the company 's loan portfolio at december 31 , 2019 and 2018 , respectively . impaired loans a loan is considered impaired when , based on current information , it is probable that the company will be unable to collect the scheduled payments of principal and or interest under the contractual terms of the loan agreement . factors considered by management in determining impairment include payment status , collateral value and the probability of collecting scheduled principal and or interest payments . loans that experience insignificant payment delays or payment shortfalls generally are not classified as impaired . management determines the significance of payment delays or payment shortfalls on a case-by-case basis . when determining the possibility of impairment , management considers the circumstances surrounding the loan and the borrower , including the length of the delay , the reasons for the delay , the borrower 's prior payment record and the amount of the shortfall in relation to the principal and interest owed . for collateral-dependent loans , the company uses the fair value of collateral method to measure impairment . all other loans are measured for impairment based on the present value of future cash flows . impairment is measured on a loan-by-loan basis for all impaired loans in the portfolio . a loan is considered a troubled debt restructured loan ( “ tdr ” ) when concessions have been made to the borrower and the borrower is in financial difficulty . these concessions include but are not limited to term extensions , rate reductions and principal reductions . forgiveness of principal is rarely granted and modifications for all classes of loans are predominantly term extensions . tdr loans are also considered impaired . the recorded investment in loans that are considered impaired is as follows : replace_table_token_16_th 28 index the following schedule summarizes impaired loans and specific reserves by loan class as of the periods indicated : replace_table_token_17_th $ 0.6 million of the above impaired loans are government guaranteed . replace_table_token_18_th $ 3.1 million of the above impaired loans are government guaranteed . total impaired loans decreased by $ 11.1 million at december 31 , 2019 compared to december 31 , 2018. the manufactured housing impaired loans decreased by $ 4.0 million and commercial impaired loans decreased by $ 6.0 million in 2019 compared to 2018. both the sba and single family real estate impaired loans decreased by $ 0.5 million each in 2019 compared to 2018. impaired manufactured housing loans decreased mainly due to upgrades and payoffs of existing loans . impaired commercial loans decreased in 2019 compared to 2018 primarily due to loan payoffs and payments paired with a couple of foreclosed properties transferred into other real estate owned . 29 index the following schedule reflects recorded investment in certain types of loans at the dates indicated : replace_table_token_19_th the accrual of interest is discontinued when substantial doubt exists as to collectability of the loan ; generally at the time the loan is 90 days delinquent . any unpaid but accrued interest is reversed at that time . thereafter , interest income is usually no longer recognized on the loan . interest income may be recognized on impaired loans to the extent they are not past due by 90 days . interest on nonaccrual loans is accounted for on the cash-basis or cost-recovery method , until qualifying for return to accrual . loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured . the following table summarizes the composition of nonaccrual loans : replace_table_token_20_th total nonaccrual balances decreased $ 3.5 million to $ 2.7 million at december 31 , 2019 , from $ 6.2 million at december 31 , 2018. nonaccrual balances include $ 0.3 million and $ 2.8 million of loans that are government guaranteed at december 31 , 2019 and 2018 , respectively . nonaccrual loans net of government guarantees decreased $ 1.0 million or 29 % , from $ 3.4 million at december 31 , 2018 to $ 2.4 million at december 31 , 2019. the percentage of nonaccrual loans to the total loan
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | capital resources the federal banking agencies have adopted risk-based capital adequacy guidelines that are used to assess the adequacy of capital in supervising a bank holding companies and banks . in july 2013 , the federal banking agencies approved the final rules ( “ final rules ” ) to establish a new comprehensive regulatory capital framework with a phase-in period beginning january 1 , 2015 and ending january 1 , 2019. the final rules implement the third installment of the basel accords ( “ basel iii ” ) regulatory capital reforms and changes required by the dodd-frank wall street reform and consumer protection act ( “ dodd-frank act ” ) and substantially amended the regulatory risk-based capital rules applicable to the company . basel iii redefined the regulatory capital elements and minimum capital ratios , introduced regulatory capital buffers above those minimums , revised rules for calculating risk-weighted assets and added a new component of tier 1 capital called common equity tier 1 , which includes common equity and retained earnings and excludes preferred equity . the following tables illustrates the bank 's regulatory ratios and the current adequacy guidelines as of december 31 , 2019 and 2018. the fully-phased in guidelines applicable on january 1 , 2019 are also summarized . replace_table_token_30_th contractual obligations and off-balance sheet arrangements the company enters into contracts for services in the ordinary course of business that may require payment for services to be provided in the future and may contain penalty clauses for early termination of the contracts . to meet the financing needs of customers , the company has financial instruments with off-balance sheet risk , including commitments to extend credit and standby letters of credit . the company does not believe that these off-balance sheet arrangements have or are reasonably likely to have a material effect on its financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures , or capital resources . however , there can be no assurance that such arrangements will not have a future effect .
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key factors affecting our business investment in semiconductor manufacturing equipment the design and manufacturing of semiconductor devices is constantly evolving and becoming more complex in order to achieve greater performance and efficiency . to keep pace with these changes , oems need to refine their existing products and invest in developing new products . in addition , semiconductor device manufacturers will continue to invest in new wafer fabrication equipment to expand their production capacity and to support new manufacturing processes . outsourcing of subsystems by semiconductor oems faced with increasing manufacturing complexities , more complex subsystems , shorter product lead times , shorter industry spend cycles , and significant capital requirements , outsourcing of subsystems and components by oems has continued to grow . in the past two decades , oems have outsourced most of their gas delivery systems to suppliers such as us . oems have also started to outsource their chemical delivery systems in recent years . our results will be affected by the degree to which outsourcing of these fluid delivery systems by oems continues to grow . cyclicality of semiconductor device industry our business is indirectly subject to the cyclicality of the semiconductor device industry . in 2017 , we derived approximately 93 % of our sales from the semiconductor device industry . demand for semiconductor devices can fluctuate significantly based on changes in general economic conditions , including consumer spending , demand for the products that include these devices and other factors . these fluctuations have in the past resulted in significant variations in our results of operations . the cyclicality of the semiconductor device industries will continue to impact our results of operations in the future . 30 customer concentration the number of capital equipment manufacturers for the semiconductor device industry has undergone significant consolidation in recent years , resulting in a small number of large manufacturers . our customers have led much of this consolidation , resulting in our sales being concentrated in a few customers . in 2017 , our two largest customers were lam research and applied materials , which accounted for approximately 53 % and 40 % of sales , respectively . the sales we generated from these customers in 2017 were spread across 35 different product lines utilized in 13 unique manufacturing process steps . we believe the diversity of products that we provide to these customers , combined with the fact that our customers use our products on numerous types of process equipment , lessens the impact of the inherent concentration in the industry . our customers often require reduced prices or other pricing , quality or delivery commitments as a condition to their purchasing from us in any given period or increasing their purchase volume , which can , among other things , result in reduced gross margins in order to maintain or expand our market share . although we do not have any long-term contracts that require customers to place orders with us , lam research and applied materials have been our customers for over 10 years . acquisitions we acquired cal‑weld , a california-based leader in the design and fabrication of precision , high purity industrial components , subsystems , and systems , in july 2017 for $ 56.9 million . we also acquired talon , a minnesota-based leader in the design and manufacturing of high precision machined parts used in leading edge semiconductor tools , in december 2017 for $ 137.0 million . on a combined basis , these acquisitions contributed approximately $ 57.5 million to sales in 2017. we intend to continue to evaluate opportunistic acquisitions to supplement our organic growth , and any such acquisitions could have a material impact on our business and results of operations . discontinued operations discontinued operations consist of the results of operations for our systems integration business with the primary purpose of building modules and tools ( metal organic chemical vapor deposition or ion implant ) for veeco instruments , inc. in january 2016 , our management and the board of directors decided to discontinue this business because it consumed a significant amount of resources while generating low gross margins and contributing only a small amount to our net income . we completed our final builds of these products at the end of may 2016. components of our results of operations the following discussion sets forth certain components of our statements of operations as well as significant factors that impact those items . sales we generate sales primarily from the design , manufacture and sale of subsystems and components for semiconductor capital equipment . sales are recognized when persuasive evidence of an arrangement exists , transfer of title has occurred , the fee is fixed or determinable , and collectability is reasonably assured . our shipping terms are fob shipping point or fob destination , or equivalent terms , and accordingly , sales are recognized when legal title has passed to the customer upon shipment or delivery . cost of sales and gross profit cost of sales consists primarily of purchased materials , direct labor , indirect labor , factory overhead cost and depreciation expense for our manufacturing facilities and equipment , as well as certain engineering costs that are related to non-recurring engineering services that we provide to , and for which we invoice , our customers in connection with their product development activities . our business has a highly variable cost structure with a low fixed overhead structure as a percentage of cost of sales . in addition , our existing global manufacturing plant capacity is scalable and we are able to adjust to increased customer demand for our products without significant additional capital investment . we operate our business in this manner in order to avoid having excessive fixed costs during a cyclical downturn while retaining flexibility to expand our production volumes during periods of growth . story_separator_special_tag non-gaap adjusted net income from continuing operations is defined as : ( 1 ) net income from continuing operations ; ( 2 ) excluding amortization of intangible assets , share-based compensation expense , non-recurring expenses including adjustments to the cost of goods sold and a loss on the ajax acquisition arbitration settlement , and the tax adjustments related to those non-gaap adjustments ; and ( 3 ) non-recurring discrete tax items including tax benefits from acquisitions , the tax benefit from re-characterizing intercompany debt to equity , and the tax impact from enactment of the tax act . non-gaap adjusted diluted eps is defined as non-gaap adjusted net income from continuing operations divided by adjusted diluted ordinary shares , which assumes the ipo shares sold , conversion of preferred shares into ordinary shares , and vesting of restricted shares and options that vested at the ipo occurred at the beginning of the measurement period . no adjustment to gaap diluted ordinary shares was necessary for 2017. the following table presents our non-gaap adjusted net income from continuing operations and a reconciliation from net income from continuing operations , the most comparable gaap measure , for the periods indicated : replace_table_token_10_th ( 1 ) included in this amount for 2017 are ( i ) acquisition-related expenses , ( ii ) expenses incurred in connection with sales or other dispositions of our ordinary shares by affiliates of francisco partners , ( iii ) executive search expenses incurred in connection with replacing the company 's chief financial officer , ( iv ) a refund of previously paid consulting fees from francisco partners consulting ( “ fpc ” ) , and ( v ) a gain on sale of our investment in chawk . included in this amount for 2016 and 2015 are 38 ( i ) acquisit ion-related expenses , ( ii ) bonuses paid to members of our management in connection with the cash dividend paid by us in august 2015 , ( iii ) consulting fees paid to fpc , and ( iv ) ipo preparation expenses . ( 2 ) we recorded $ 7.6 million in tax benefits during 2017 in connection with our acquisitions of talon and cal-weld . we recorded $ 2.3 million in tax benefits in 2016 in connection with its acquisition of ajax . ( 3 ) in the third quarter of 2017 we re-characterized intercompany debt to equity between our u.s. and singapore entities resulting in a tax benefit of $ 1.6 million related to the reversal of previously accrued withholding taxes . ( 4 ) this adjustment represents the impact of the tax cuts and jobs act , including revaluing our deferred tax assets from 35 % to 21 % . ( 5 ) during the second quarter of 2017 , we corrected an error related to translating the inventory balances at our malaysia and singapore subsidiaries at an incorrect foreign currency rate . the error arose in prior period financial statements beginning in periods prior to 2014 and through 2016. the correction resulted in a $ 1.75 million increase in cost of sales and a corresponding decrease in gross profit in our consolidated statement of operations and a decrease to inventories in our consolidated balance sheet during the second quarter of 2017 . ( 6 ) as part of our purchase price allocation for our acquisition of talon and cal‑weld , we recorded inventory at fair value , resulting in a fair value step‑up to acquired inventory of $ 6.2 million and $ 3.6 million , respectively . as the related inventory was sold during 2017 , we released $ 1.6 million and $ 3.6 million of talon and cal‑weld 's step‑up , respectively , to cost of sales . ( 7 ) during the third quarter of 2017 , we received a final arbitration ruling on our working capital claim with the sellers of ajax . the ruling was outside the one year measurement period and therefore could not be considered an adjustment to goodwill , resulting in a charge to selling , general , and administrative expense . ( 8 ) for 2016 and 2015 , assumes the shares sold , the conversion of preferred shares into ordinary shares , and vesting of restricted shares and options in connection with our december 2016 ipo occurred at the beginning of each period , for comparability between periods . no adjustment to gaap diluted ordinary shares was necessary for 2017. non-gaap adjusted net income from continuing operations has limitations as an analytical tool , and you should not consider it in isolation or as a substitute for net income or any of our other operating results reported under gaap . other companies may calculate adjusted net income differently or may use other measures to evaluate their performance , both of which could reduce the usefulness of our adjusted net income as a tool for comparison . because of these limitations , you should consider non-gaap adjusted net income from continuing operations alongside other financial performance measures , including net income from continuing operations and other financial results presented in accordance with gaap . in addition , in evaluating non-gaap adjusted net income , you should be aware that in the future we will incur expenses such as those that are the subject of adjustments in deriving adjusted net income and you should not infer from our presentation of adjusted net income that our future results will not be affected by these expenses or any unusual or non-recurring items . 39 unaudited quarterly financial results the following table set forth statement of operations data for the periods indicated . the information for each of these periods is unaudited and has been prepared on the same basis as our audited consolidated financial statements included herein and includes all adjustments , consisting only of normal recurring adjustments that we consider necessary for a fair presentation of our unaudited operations data for the periods presented . historical
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources we had cash and restricted cash of $ 69.3 million as of december 29 , 2017 , compared to $ 52.6 million as of december 30 , 2016. our principal uses of liquidity are to fund our working capital needs , satisfy our debt obligations , and purchase new capital equipment . the increase in cash is primarily due to proceeds from the issuance of $ 150.0 million in long-term debt and cash from operations of $ 38.8 million , partially offset by cash paid for our acquisitions of cal‑weld and talon of $ 181.0 million and capital expenditures of $ 8.2 million . we believe that our cash , the amounts available under our credit facilities and our cash flows from operations , together with the net proceeds from our ipo , will be sufficient to meet our anticipated cash needs for working capital and capital expenditures for at least the next 12 months . 41 cash flow analysis the following table sets forth a summary of operating , investing , and financing activities for the periods presented : replace_table_token_13_th operating activities we generated $ 38.8 million of cash from operating activities during 2017 due to net income of $ 56.5 million , partially offset by net non‑cash charges of $ ( 0.2 ) million and an increase in our net operating assets and liabilities of $ 17.4 million . non‑cash charges primarily related to $ 12.5 million in depreciation and amortization , $ 2.2 million in share-based compensation , and $ 0.6 million in amortization of debt issuance cost , offset by $ 15.3 million in deferred tax benefit and a gain on the sale of our investment in chawk of $ 0.2 million . the increase in net operating assets and liabilities was primarily due to an increase in inventories of $ 43.4 million in order to meet sales demand in the first quarter of 2018 , partially offset by an increase in accounts payable of $ 22.6 million and prepaid expenses and other assets of $ 3.4 million .
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the company recognizes revenue equal to costs incurred on unapproved change orders when realization of price approval is probable . unapproved change orders involve the use of estimates , and it is reasonably possible that revisions to the estimated costs and recoverable amounts may be required in future reporting periods to reflect changes in estimates or final agreements with customers . change orders that are unapproved as to both price and scope are evaluated as claims . 25 the company considers claims to be amounts in excess of agreed contract prices that we seek to collect from our customers or others for customer-caused delays , errors in specifications and designs , contract terminations , change orders that are either in dispute or are unapproved as to both scope and price , or other causes of unanticipated additional contract costs . claims are included in the calculation of revenue when realization is probable and amounts can be reliably determined . to support these requirements , the existence of the following items must be satisfied : 1. the contract or other evidence provides a legal basis for the claim ; or a legal opinion has been obtained , stating that under the circumstances there is a reasonable basis to support the claim ; 2. additional costs are caused by circumstances that were unforeseen at the contract date and are not the result of deficiencies in the contractor 's performance ; 3. costs associated with the claim are identifiable or otherwise determinable and are reasonable in view of the work performed ; and 4. the evidence supporting the claim is objective and verifiable , not based on management 's subjective evaluation of the situation or on unsupported representations . revenues in excess of contract costs incurred on claims are recognized when an agreement is reached with customers as to the value of the claims , which in some instances may not occur until after completion of work under the contract . costs associated with claims are included in the estimated costs to complete the contracts and are treated as project costs when incurred . our contracts generally take 12 to 36 months to complete . the company generally provides a one- to two-year warranty for workmanship under its contracts when completed . warranty claims historically have been insignificant . the accuracy of our revenue and profit recognition in a given period is dependent on the accuracy of our estimates of the revenues and costs to finish uncompleted contracts . our estimates for all of our significant contracts use a highly detailed “ bottom up ” approach . however , our projects can be highly complex , and in almost every case , the profit margin estimates for a contract will either increase or decrease to some extent from the amount that was originally estimated at the time of bid . because we have a large number of projects of varying levels of size and complexity in process at any given time , these changes in estimates can sometimes offset each other without materially impacting our overall profitability . however , large changes in revenue or cost estimates can have a significant effect on profitability . there are a number of factors that can contribute to changes in estimates of contract cost and profitability . the most significant of these include the completeness and accuracy of the original bid , recognition of costs associated with scope changes , extended overhead due to customer-related and weather-related delays , subcontractor and supplier performance issues , site conditions that differ from those assumed in the original bid ( to the extent contract remedies are unavailable ) , the availability and skill level of workers in the geographic location of the project and changes in the availability and proximity of materials . the foregoing factors , as well as the stage of completion of contracts in process and the mix of contracts at different margins , may cause fluctuations in gross profit between periods , and these fluctuations may be significant . results for 2016 , 2015 and 2014 were adversely affected by certain weather conditions and revisions to estimated profitability on our construction projects . see “ recent developments ― financial results for 2016 , operational issues and outlook for 2017 financial results ” above and “ results of operations ― fiscal year ended december 31 , 2016 compared with fiscal year ended december 31 , 2015 ” for further discussion of the impact on our financial results . contracts receivable , including retainage . contracts receivable are generally based on amounts billed to the customer and currently due in accordance with our contracts . many of the contracts under which the company performs work contain retainage provisions . retainage refers to that portion of billings made by the company but held for payment by the customer pending satisfactory completion of the project . retainage on active contracts is classified as a current asset regardless of the term of the contract and is generally collected within one year of the completion of a contract . at december 31 , 2016 and 2015 , contracts receivable included $ 23.4 million and $ 19.8 million of retainage , respectively , which is being contractually withheld by customers until completion of the contracts . there are certain contracts that are completed in advance of full payment . when the receivable will not be collected within our normal operating cycle , we consider it a long-term contract receivable and it is recorded in “ other assets , net ” in our balance sheet . we consider the credit quality of the borrower to assess the appropriate discount rate to apply and continuously monitor the borrower 's credit quality . at december 2016 and 2015 , there were no such long-term contract receivables recorded in our consolidated balance sheets . story_separator_special_tag the company is proceeding with its contractual rights to recoup additional costs incurred from its customers based upon completing work associated with change orders with pending change order pricing or claims related to significant changes in scope which resulted in substantial delays and additional costs in completing the work . unapproved change order and claim information has been provided to our customers and negotiations with the customers are ongoing . if additional progress with an acceptable resolution is not reached , legal action may be taken . based upon our review of the provisions of our contracts , specific costs incurred and other related evidence supporting the unapproved change orders , claims and our entitled unpaid project price , together with the views of the company 's outside claim consultants , we concluded that including the unapproved change order , claim and entitled unpaid project price amounts of $ 2.2 million , $ 9.2 million and $ 3.9 million , respectively , at december 31 , 2016 , and $ 1.6 million , $ 5.2 million and $ 3.9 million , respectively , at december 31 , 2015 , in “ costs and estimated earnings in excess of billings on uncompleted contracts ” on our consolidated balance sheets was in accordance with gaap . we expect these matters will be resolved without a material adverse effect on our financial statements . however , unapproved change order and claim amounts are subject to negotiations which may cause actual results to differ materially from estimated and recorded amounts . other operating ( expense ) income , net . other operating ( expense ) income , net , includes 50 % of earnings and losses related to members ' interests , gains and losses from sales of property , plant and equipment , and other miscellaneous operating income or expense . members ' interest earnings are treated as an expense while losses are treated as income as earnings would increase the amount in our liability account “ members ' interest subject to mandatory redemption and undistributed earnings , ” and losses would decrease this liability . other operating expense increased to $ 10.0 million in 2016 from $ 1.5 million in 2015 , with the increase being primarily the result of an increase in members ' interest earnings of approximately $ 8.9 million and $ 1.2 million related to our jbc earn-out expense . general and administrative expenses . general and administrative expenses decreased $ 3.3 million during 2016 to $ 38.6 million from $ 41.9 million in 2015. this decrease is primarily the result of certain non-recurring costs related to consulting services performed and employee severance payments of $ 1.2 million and $ 2.9 million , respectively , recognized in 2015 offset by an increase in certain employee and employee benefit costs in 2016. as a percentage of revenues , general and administrative expenses decreased to 5.6 % in 2016 from 6.7 % in 2015. the decreases in general and administrative expenses , as a percentage of revenue , are primarily the result of the leverage generated from generally fixed costs and increases in revenues . income taxes . our effective income tax rates for 2016 and 2015 were minimal in both periods . in 2016 and 2015 , our effective income tax rate varied from the statutory rate primarily as a result of our deferred tax asset valuation allowance . we expect our tax rate to remain low due to our net operating losses available to offset taxable income . in order to determine that a valuation allowance was necessary , management assessed the available positive and negative evidence to estimate whether sufficient future taxable income would be generated to use the existing deferred tax assets . a significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended december 31 , 2016. the cumulative three-year period loss that ended in the fourth quarter of 2016 was the result of the write-downs recorded during the past three years . such objective evidence limits the ability to consider other subjective evidence such as our projections for future growth . on the basis of this evaluation , as of december 31 , 2016 , a full valuation allowance of $ 58.0 million has been recorded on our net deferred tax assets including federal and state net operating loss carryforwards as they are not likely to be realized . the amount of the deferred tax asset considered realizable could be adjusted if objective negative evidence is no longer present and additional weight may be given to subjective evidence such as our projections for growth . 31 net income attributable to noncontrolling interests . the decrease of $ 1.4 million to $ 1.8 million from $ 3.2 million in net income attributable to noncontrolling interest owners for the year ended december 31 , 2016 compared with the same period in 2015 is primarily related to the november 2015 agreement entered with myers . this agreement changed our accounting treatment of our myers 50 % noncontrolling interest , which was included in “ noncontrolling owners ' interests in earnings of subsidiaries and joint ventures , ” to “ other operating ( expense ) income , net ” after the agreement was executed . the myers ' 50 % portion of earnings totaled $ 3.7 million , $ 3.2 million of which was recorded in “ noncontrolling owners ' interest in earnings of subsidiaries and joint ventures ” and $ 0.5 million was recorded in “ other operating expense ( income ) , net . ” during 2016 , the only income attributable to noncontrolling interests was primarily from our utah construction joint venture where our joint venture partner has a 40 % noncontrolling interest . net income attributable to noncontrolling interest from construction joint ventures was $ 1.8 million and an immaterial amount in 2016 and 2015 , respectively . revaluation of noncontrolling interest due to a new agreement .
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash and working capital . cash at december 31 , 2016 , was $ 42.8 million which increased from the prior year based on the items mentioned above . our working capital largely remained flat with a slight decrease of $ 1.0 million to $ 29.3 million from $ 30.6 million at december 31 , 2016 and 2015 , respectively . credit facility and other sources of capital . in addition to our available cash , cash equivalents and cash provided by operations , from time to time , we use borrowings under our available credit or equipment-based credit facilities to finance our capital expenditures and working capital needs . in may 2015 , the company and its wholly-owned subsidiaries entered into a $ 40.0 million loan and security agreement with nations equipment finance , llc ( “ nations ” ) , consisting of a $ 20.0 million term loan and a $ 20.0 million revolving loan ( combined , the “ equipment-based facility ” ) , which replaced the company 's prior credit facility . the sum of the outstanding balances of the equipment-based facility may not exceed the lesser of $ 40.0 million or 65 % of the appraised value of the collateral pledged for the loans . at december 31 , 2016 , the company had a borrowing base of approximately $ 24.4 million , which was the result of calculating 65 % of the appraised value ( where appraised value equals net operating liquidated value ) of the company 's collateral . the amount of the revolving loan that may be borrowed from time to time is the lesser of $ 20.0 million or the available borrowing base . the revolving loan may be utilized to provide ongoing working capital and for other general corporate purposes .
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power disruptions are an important driver of customer awareness and have historically influenced demand for generators . increased frequency and duration of major power outage events , that have a broader impact beyond a localized level , increases product awareness and may drive consumers to accelerate their purchase of a standby or portable generator during the immediate and subsequent period , which we believe may last for six to twelve months for standby generators . for example , the multiple major outage events that occurred during the second half of both 2011 and 2012 drove strong demand for portable and home standby generators , and the increased awareness of these products contributed to substantial organic revenue growth in 2012 with strong growth continuing during 2013. major power disruptions are unpredictable by nature and , as a result , our sales levels and profitability may fluctuate from period to period . in addition , there are smaller , more localized power outages that occur frequently across the u.s. that drive the baseline level of demand for back-up power solutions . the level of baseline power outage activity occurring across the u.s. can also fluctuate , and may cause our financial results to fluctuate from year to year . impact of residential investment cycle . the market for residential generators is also affected by the residential investment cycle and overall consumer confidence and sentiment . when homeowners are confident of their household income , the value of their home and overall net worth , they are more likely to invest in their home . these trends can have an impact on demand for residential generators . trends in the new housing market highlighted by residential housing starts can also impact demand for our residential products . impact of business capital investment cycle . the market for our commercial and industrial products is affected by the overall capital investment cycle , including non-residential building construction , durable goods and infrastructure spending as well as investments in the exploration and production of oil & gas , as businesses or organizations either add new locations or make investments to upgrade existing locations or equipment . these trends can have a material impact on demand for these products . the capital investment cycle may differ for the various commercial and industrial end markets that we serve including light commercial , retail , telecommunications , industrial , data centers , healthcare , construction , oil & gas and municipal infrastructure , among others . the market for these products is also affected by general economic conditions and credit availability in the geographic regions that we serve . in addition , we believe demand for our mobile power products will continue to benefit from a secular shift towards renting versus buying this type of equipment . f actors affecting results of o perations we are subject to various factors that can affect our results of operations , which we attempt to mitigate through factors we can control , including continued product development , expanded distribution , pricing and cost control . certain operational and other factors that affect our business include the following : effect of commodity , currency and component price fluctuations . industry-wide price fluctuations of key commodities , such as steel , copper and aluminum and other components we use in our products , together with foreign currency fluctuations , can have a material impact on our results of operations . we have historically attempted to mitigate the impact of rising commodity , currency and component prices through improved product design and sourcing , manufacturing efficiencies , price increases and select hedging transactions . our results are also influenced by changes in fuel prices in the form of freight rates , which in some cases are borne by our customers and in other cases are paid by us . seasonalit y. although there is demand for our products throughout the year , in each of the past three years approximately 23 % to 27 % of our net sales occurred in the first quarter , 20 % to 25 % in the second quarter , 24 % to 26 % in the third quarter and 25 % to 29 % in the fourth quarter , with different seasonality depending on the presence , timing and severity of major power outage activity in each year . major outage activity is unpredictable by nature and , as a result , our sales levels and profitability may fluctuate from period to period . for example , there were multiple major power outage events that occurred during the second half of both 2011 and 2012 , which were significant in terms of severity . as a result , the seasonality experienced during this time period , and for the subsequent quarters following the time period , varied relative to other periods where no major outage events occurred . we maintain a flexible production and supply chain infrastructure in order to respond to outage-driven peak demand . 25 factors influencing interest expense and cash interest expense . interest expense can be impacted by a variety of factors , including market fluctuations in libor , interest rate election periods , interest rate swap agreements and repayments of indebtedness . cash interest expense decreased during 2014 compared to 2013 , primarily due to a reduction in interest rate from the credit agreement refinancing completed in may 2013 and the 25 basis point reduction in borrowing costs during the second quarter of 2014 as a result of our net debt leverage ratio , as defined in our new term loan credit agreement , falling below 3.0 times . refer to note 11 , “ credit agreements , ” to the consolidated financial statements in item 8 of this annual report on form 10-k for additional details . factors influencing provision for income taxes and cash income taxes paid . story_separator_special_tag gross profit increased $ 129.2 million , or 29.3 % , to $ 569.6 million for the year ended december 31 , 2013 from $ 440.4 million for the year ended december 31 , 2012. gross profit margin for the year ended december 31 , 2013 increased to 38.3 % from 37.4 % for the year ended december 31 , 2012. this gross margin improvement reflects improved product mix , improved pricing and a moderation in product costs due to lower commodity prices and execution of cost reduction initiatives . these margin improvements were partially offset by the mix impact from recent acquisitions . operating expenses . operating expenses increased $ 1.3 million to $ 218.1 million for the year ended december 31 , 2013 from $ 216.8 million for the year ended december 31 , 2012. this increase resulted from the impact of recent acquisitions , as well as increased sales , engineering and administrative infrastructure to support the strategic growth initiatives and higher sales levels of the company . these increases were mostly offset by warranty rate improvements resulting in a $ 17.6 million favorable adjustment to warranty reserves driven by better claims experience , which impacted selling and service expense , as well as a decline in the amortization of intangibles . other expense . other expense increased $ 5.5 million , or 8.3 % , to $ 72.7 million for the year ended december 31 , 2013 from $ 67.2 million for the year ended december 31 , 2012. these additional expenses were primarily driven by a $ 5.3 million increase in interest expense due to the higher debt levels from the may 2012 and 2013 refinancing transactions , partially offset by a slight reduction in interest rate on the new credit facility . income tax expense . income tax expense increased $ 41.1 million to $ 104.2 million for the year ended december 31 , 2013 from $ 63.1 million for the year ended december 31 , 2012. the increase was primarily driven by the increase in pre-tax income during 2013 compared to 2012 , partially offset by a lower effective tax rate . the decrease in the effective income tax rate year-over-year is primarily due to the lower tax rate of a foreign subsidiary acquired during the fourth quarter of 2012 and the reinstatement of the federal research and development tax credit in 2013. net income . as a result of the factors identified above , we generated net income of $ 174.5 million for the year ended december 31 , 2013 compared to $ 93.2 million for the year ended december 31 , 2012. adjusted ebitda . adjusted ebitda , as defined and reconciled in item 6 , “ selected financial data , ” increased to $ 402.6 million in 2013 as compared to $ 289.8 million in 2012 due to the factors discussed above . adjusted net income . adjusted net income , as defined and reconciled in item 6 , “ selected financial data , ” increased to $ 301.7 million in 2013 compared to $ 220.8 million in 2012 due to the factors discussed above . 30 liquidity and financial p osition our primary cash requirements include payment for our raw material and component supplies , salaries & benefits , operating expenses , interest and principal payments on our debt and capital expenditures . we finance our operations primarily through cash flow generated from operations and , if necessary , borrowings under our abl revolving credit facility . in february 2012 , we paid in full our previously existing debt and entered into a new credit agreement ( credit agreement ) . the credit agreement provided for borrowings under a $ 150.0 million revolving credit facility , a $ 325.0 million tranche a term loan facility and a $ 250.0 million tranche b term loan facility . proceeds received from loans made under the credit agreement were used to repay in full all outstanding borrowings under the former credit agreement , dated as of november 10 , 2006 , as amended from time to time , and for general corporate purposes . in may 2012 , we amended and restated our then existing credit agreement by entering into a new credit agreement ( term loan credit agreement ) and a new revolving credit agreement ( abl credit agreement ) . the term loan credit agreement provided for a $ 900.0 million term loan b credit facility ( term loan ) and included a $ 125.0 million uncommitted incremental term loan facility and the abl credit agreement provided for borrowings under a $ 150.0 million senior secured abl revolving credit facility and an uncommitted $ 50.0 million incremental revolving credit facility . a portion of the proceeds from the term loan were used to repay outstanding borrowings under the previous credit agreement . the remaining proceeds from the term loan were used , together with cash on hand , to pay a special cash dividend of $ 6.00 per share on our common stock ( 2012 dividend recapitalization ) . on may 31 , 2013 , we amended and restated our then existing term loan credit agreement by entering into a new term loan credit agreement ( new term loan credit agreement ) . the new term loan credit agreement provided for a $ 1.2 billion term loan b credit facility ( new term loan ) and included a $ 300.0 million uncommitted incremental term loan facility . the new term loan credit agreement matures on may 31 , 2020. proceeds from the new term loan were used to repay outstanding borrowings under the previous term loan credit agreement and to fund a special cash dividend of $ 5.00 per share on our common stock ( 2013 dividend recapitalization ) . remaining funds from the new term loan were used for general corporate purposes and to pay related financing fees and expenses . the new term loan initially bore interest at
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash f low year ended december 31 , 2014 compared to year ended december 31 , 2013 the following table summarizes our cash flows by category for the periods presented : replace_table_token_13_th 31 net cash provided by operating activities was $ 253.0 million for 2014 compared to $ 259.9 million in 2013. this decrease of $ 6.9 million , or 2.7 % , is primarily attributable to lower operating income , after adding back non-cash items , in the current year , partially offset by a reduction in working capital investment due to a slight decrease in inventory levels in 2014 as compared to a significant increase in inventory in 2013. the prior year period included a significant use of cash to replenish finished good inventory levels that had been depleted by demand driven from major power outages . net cash used for investing activities for the year ended december 31 , 2014 was $ 95.5 million . this included cash payments of $ 61.2 million related to the acquisition of businesses and $ 34.7 million for the purchase of property and equipment . net cash used for investing activities for the year ended december 31 , 2013 was $ 144.6 million . this included cash payments of $ 116.1 million related to the acquisition of businesses and $ 30.8 million for the purchase of property and equipment , partially offset by cash proceeds of $ 2.3 million from the sale of a business .
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our adr , occupancy percentage and revpar performance may be impacted by macroeconomic factors such as u.s. economic conditions generally , regional and local employment growth , personal income and corporate earnings , office vacancy rates and business relocation decisions , airport and other business and leisure travel , new hotel construction and the pricing strategies of competitors . in addition , our adr , occupancy percentage and revpar performance is dependent on the continued success of our hotels ' global brands . we also use ebitda , ebitda re , adjusted ebitda , ffo and adjusted ffo as measures of the financial performance of our business . see “ non-gaap financial measures . ” overview of 2019 - 44 - key highlights for 2019 include the following : financing activity . on july 25 , 2019 , we entered into an amended and restated credit agreement that provides for a $ 400 million senior unsecured revolving credit facility and a five-year $ 350 million unsecured term loan . we used the proceeds from the new term loan to repay our previously existing $ 100 million and $ 200 million term loans . the senior unsecured credit facility matures in july 2023 , with a one-year extension option , and the term loan matures in july 2024. insurance settlement . frenchman 's reef is currently closed due to damage incurred by hurricanes irma and maria in september 2017 and is expected to re-open at the end of 2020 as two separate hotels . in december 2019 , the company and the insurers reached a definitive settlement of our outstanding insurance claim related to hurricane irma . under the terms of the settlement agreement , we agreed to resolve the claim for total insurance payments of $ 246.8 million , of which $ 238.5 million related to frenchman 's reef and $ 8.3 million related to amounts previously agreed to for the havana cabana key west . the settlement amount includes proceeds previously received of $ 85.0 million and $ 10.0 million during the years ended december 31 , 2018 and 2017 , respectively . during the year ended december 31 , 2019 , we recognized $ 8.8 million of business interruption insurance income under the insurance claim . outlook for 2020 although economic indicators such as gdp growth , corporate earnings , consumer confidence and employment reflect a stable u.s. economy , we expect revpar growth to modestly decelerate in 2020 , due to growth in the supply of competitive accommodations and the negative impact on travel demand related to the expanding outbreak of coronavirus and the united states presidential election . our portfolio is primarily composed of destination resorts and hotels in the 25 largest urban markets . we expect our destination hotels will continue to outperform the broader u.s. market as a result of strong , secular demand for experiential travel , low growth in competitive supply , and investments to renovate and resposition hotels , including non-room revenue sources such as re-imagined spa and food and beverage outlets . revpar growth at hotels in the 25 largest urban markets has generally trailed the national average in recent years due to significant growth in the competitive supply . in 2020 , we expect our urban hotels will benefit from favorable citywide event calendars . our portfolio entered 2020 with group booking pace , as measured by revenue , 14.1 % ahead of the same time last year . group revenues comprise approximately one-third of our total rooms revenue . we anticipate industry profit growth will be challenged by rising labor costs , but we continue to work closely with our hotel managers to identify operating efficiencies . we continue to invest in our hotels to maximize profitability and long-term value creation . following $ 103 million of hotel renovations and capital improvements at operating hotels in 2019 , we expect modestly lower renovation disruption in 2020. despite the expectation of slow growth for the u.s. lodging industry , we enter 2020 with several favorable factors , including : ( 1 ) ownership of a high-quality portfolio concentrated in urban and resort locations ; ( 2 ) favorable market strength in the boston and chicago markets ; ( 3 ) internal growth from the continuation of our asset management initiatives ; ( 4 ) a low leveraged capital structure relative to our peers ; and ( 5 ) an unrestricted cash balance of $ 123 million and $ 325 million of borrowing capacity available under our senior unsecured credit facility . results of operations discussion of the comparison of the results of operations from the year ended december 31 , 2018 to the year ended december 31 , 2017 is found in our annual report on form 10-k for the year ended december 31 , 2018 under part ii , item 7 , which was filed with the sec on february 26 , 2019. the following table sets forth certain operating information for the year ended december 31 , 2019 for each of the hotels we owned during 2019 . - 45 - replace_table_token_6_th ( 1 ) frenchman 's reef closed on september 6 , 2017 due to hurricane irma and remains closed . accordingly , there is no operating information for the year ended december 31 , 2019 . ( 2 ) the percentage change from 2018 revpar reflects the comparable period in 2018 to our 2019 ownership period for all hotels . ( 3 ) havana cabana key west closed on september 6 , 2017 due to hurricane irma and reopened in april 2018. accordingly , there is no operating information for the period from january 1 , 2018 to march 31 , 2018. the revpar change from 2018 compares the period from april 1 , 2019 to december 31 , 2019 to the comparable period of 2018 . ( 4 ) hotel emblem closed on september 4 , 2018 for a comprehensive renovation . story_separator_special_tag we retired all repurchased shares on their respective settlement dates . as of february 28 , 2020 , we have $ 175.2 million of authorized capacity remaining under our share repurchase program . short-term borrowings other than borrowings under our senior unsecured credit facility , we do not utilize short-term borrowings to meet liquidity requirements . senior unsecured credit facility on july 25 , 2019 , we entered into a fifth amended and restated credit agreement . the credit agreement increased the capacity of our senior unsecured credit facility from $ 300 million to $ 400 million , decreased the pricing and extended the maturity date from may 2020 to july 2023. the maturity date may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions . in connection with the amendment and restatement of our credit agreement , we repaid our existing $ 100 million and $ 200 million term loans . information about our senior unsecured credit facility is found in note 8 to the accompanying consolidated financial statements . as of december 31 , 2019 , we had $ 75.0 million of outstanding borrowings on our senior unsecured credit facility . unsecured term loans as of december 31 , 2019 , we are party to a $ 50 million unsecured term loan expiring in october 2023 and a $ 350 million unsecured term loan expiring in july 2024 . information about our unsecured term loans is found in note 8 to the accompanying consolidated financial statements . story_separator_special_tag worthington renaissance : we completed a transformational renovation of the lobby and food and beverage outlets during 2019 , including a new toro toro restaurant by richard sandoval . the landing resort & spa lake tahoe : in third quarter of 2019 , we added five new guestrooms at the hotel from areas that were previously non-revenue producing . additionally , we spent approximately $ 96.6 million on the rebuild of frenchman 's reef during the year ended december 31 , 2019 . we expect to spend approximately $ 90 million to $ 100 million on capital improvements at our operating hotels in 2020 , which includes carryover from certain projects that commenced in 2019. significant projects in 2020 include the following : the lodge at sonoma : we will reposition the resort during 2020 in order to capture rate potential against the luxury and lifestyle competitive sets . integral parts of this project include opening a new restaurant by celebrity chef michael mina , upgrading the spa with a luxury spa operator and enhancing the grounds with additions such as firepit gathering areas . hilton boston downtown : we expect to renovate the hotel 's guestrooms and lobby during 2020. we will also convert underutilized meeting space into 29 new guestrooms . this hotel will become unencumbered of brand in 2022. hilton burlington : we expect to complete a comprehensive renovation of the hotel 's guestrooms and public spaces during 2020. contractual obligations the following table outlines the timing of payment requirements related to our debt and other commitments of our operating partnership as of december 31 , 2019 . replace_table_token_13_th ( 1 ) the interest expense for our variable rate loans is calculated based on the rate as of december 31 , 2019 . ( 2 ) as of december 31 , 2019 , purchase orders and letters of commitment totaling approximately $ 140.4 million had been issued for renovations at our properties . we have committed to these projects and anticipate making similar arrangements in the future with our existing properties or any future properties that we may acquire . off-balance sheet arrangements we have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources that is material to investors . non-gaap financial measures we use the following non-gaap financial measures that we believe are useful to investors as key measures of our operating performance : ebitda , ebitda re , adjusted ebitda , ffo and adjusted ffo . these measures should not be considered in isolation or as a substitute for measures of performance in accordance with u.s. gaap . ebitda , ebitda re , adjusted ebitda , ffo and adjusted ffo , as calculated by us , may not be comparable to other companies that do not define such terms exactly as the company . - 53 - use and limitations of non-gaap financial measures our management and board of directors use ebitda , ebitda re , adjusted ebitda , ffo and adjusted ffo to evaluate the performance of our hotels and to facilitate comparisons between us and other lodging reits , hotel owners who are not reits and other capital intensive companies . the use of these non-gaap financial measures has certain limitations . these non-gaap financial measures as presented by us , may not be comparable to non-gaap financial measures as calculated by other real estate companies . these measures do not reflect certain expenses or expenditures that we incurred and will incur , such as depreciation , interest and capital expenditures . we compensate for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance . our reconciliations to the most comparable u.s. gaap financial measures , and our consolidated statements of operations and cash flows , include interest expense , capital expenditures , and other excluded items , all of which should be considered when evaluating our performance , as well as the usefulness of our non-gaap financial measures . these non-gaap financial measures are used in addition to and in conjunction with results presented in accordance with u.s. gaap . they should not be considered as alternatives to operating profit , cash
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | sources and uses of cash our principal sources of cash are net cash flow from hotel operations , sales of common stock , borrowings under mortgage debt , term loans and our senior unsecured credit facility , and proceeds from hotel dispositions . our principal uses of cash are acquisitions of hotel properties , debt service and maturities , repayments of borrowings under our senior unsecured credit facility , repayments of unsecured term loans , share repurchases , capital expenditures , operating costs , corporate expenses , natural disaster remediation and repair costs and distributions to holders of common stock and units . as of december 31 , 2019 , we had $ 122.5 million of unrestricted corporate cash and $ 57.3 million of restricted cash , and $ 75.0 million of outstanding borrowings on our senior unsecured credit facility . our net cash provided by operations was $ 193.3 million for the year ended december 31 , 2019 . our cash from operations generally consists of the net cash flow from hotel operations and insurance proceeds , offset by cash paid for corporate expenses and other working capital changes . our net cash used in investing activities was $ 65.7 million for the year ended december 31 , 2019 , which is composed of capital expenditures at our operating hotels of $ 102.7 million and capital expenditures at frenchman 's reef of $ 96.6 million , offset by $ 133.5 million of proceeds from our property insurance policy related to our hotels impacted by hurricanes irma and maria .
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in december 2015 , we acquired , through a subsidiary of heico electronic , certain assets of a company that designs and manufactures underwater locator beacons used to locate aircraft cockpit voice recorders , flight data recorders , marine ship voyage recorders and other devices which have been submerged under water . in august 2015 , we acquired , through heico flight support corp. , all of the stock of astroseal products mfg . corporation ( “ astroseal ” ) . astroseal manufactures expanded foil mesh , which is integrated into composite aerospace structures for lighting strike protection in fixed and rotary wing aircraft . in august 2015 , we acquired , through heico electronic , 80.1 % of the equity of midwest microwave solutions , inc. ( “ mms ” ) . mms designs , manufactures and sells unique size , weight , power and cost ( swap-c ) optimized communications and electronic intercept receivers and tuners for military and intelligence applications . the remaining 19.9 % continues to be owned by certain members of mms ' management team . in august 2015 , we acquired , through heico flight support corp. , 80.1 % of the assets and assumed certain liabilities of aerospace & commercial technologies , llc ( “ act ” ) . act is a provider of products and services necessary to maintain up-to-date f-16 fighter aircraft 31 index operational capabilities . the remaining 19.9 % continues to be owned by certain members of act 's management team . in may 2015 , we acquired , through heico flight support corp , all of the stock of thermal energy products , inc. ( “ tep ” ) . tep engineers , designs and manufactures removable/reusable insulation systems for industrial , commercial , aerospace and defense applications . in january 2015 , we acquired , through heico flight support corp. , 80.1 % of the equity of harter aerospace , llc ( `` harter `` ) . harter is a globally recognized component and accessory maintenance , repair , and overhaul ( mro ) station specializing in commercial aircraft accessories , including thrust reverse actuation systems and pneumatics , and electromechanical components . the remaining 19.9 % interest continues to be owned by certain members of harter 's management team . in january 2015 , we acquired , through heico flight support corp. , 80 % of the equity of aeroworks international holding b.v. ( “ aeroworks ” ) . aeroworks , which is headquartered in the netherlands and maintains a significant portion of its production facilities in thailand and laos , is a manufacturer of both composite and metal parts used primarily in aircraft interior applications , including seating , galleys , lavatories , doors , and overhead bins . the remaining 20 % interest continues to be owned by a certain member of aeroworks ' management team . in june 2014 , we created a new legal entity , seal q corp. , within heico flight support corp. , which acquired certain assets and liabilities of quest aviation supply , inc. ( “ quest aviation ” ) . quest aviation is a niche supplier of parts to repair thrust reversers on various aircraft engines . the purchase price of each of the above referenced acquisitions was paid in cash principally using proceeds from our revolving credit facility . the aggregate amount paid in cash for acquisitions , including additional purchase consideration payments , was $ 263.8 million , $ 166.8 million and $ 8.7 million in fiscal 2016 , 2015 and 2014 , respectively . in february 2014 , we acquired the 20 % noncontrolling interest held by lufthansa technik ag ( “ lht ” ) in four of our existing subsidiaries principally operating in the specialty products and distribution businesses within heico aerospace . for further information regarding this acquisition , see note 8 , shareholder 's equity , of the notes to consolidated financial statements . critical accounting policies we believe that the following are our most critical accounting policies , which require management to make judgments about matters that are inherently uncertain . assumptions utilized to determine fair value in connection with business combinations , contingent consideration arrangements and in goodwill and intangible assets impairment tests are highly judgmental . if there is a material change in such assumptions or if there is a material 32 index change in the conditions or circumstances influencing fair value , we could be required to recognize a material impairment charge . see item 1a . , risk factors , for a list of factors which may cause our actual results to differ materially from anticipated results . revenue recognition revenue from the sale of products and the rendering of services is recognized when title and risk of loss passes to the customer , which is generally at the time of shipment . revenue from certain fixed price contracts for which costs can be dependably estimated is recognized on the percentage-of-completion method , measured by the percentage of costs incurred to date to estimated total costs for each contract . this method is used because management considers costs incurred to be the best available measure of progress on these contracts . revisions in cost estimates as contracts progress have the effect of increasing or decreasing profits in the period of revision . revisions in cost estimates may be caused by factors such as the price or availability of raw materials and component parts or variations in the amount of labor required and or the materials necessary to meet customer specifications and requirements . provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined . the percentage of our net sales recognized under the percentage-of-completion method was approximately 3 % , 4 % and 3 % in fiscal 2016 , 2015 and 2014 , respectively . story_separator_special_tag 39 index comparison of fiscal 2015 to fiscal 2014 net sales our net sales in fiscal 2015 increased by 5 % to a record $ 1,188.6 million , as compared to net sales of $ 1,132.3 million in fiscal 2014. the increase in consolidated net sales reflects an increase of $ 46.9 million ( a 6 % increase ) to a record $ 809.7 million in net sales within the fsg as well as an increase of $ 11.6 million ( a 3 % increase ) to a record $ 391.0 million in net sales within the etg . the net sales increase in the fsg reflects net sales of $ 54.9 million contributed by our fiscal 2015 acquisitions as well as additional net sales in our aftermarket replacement parts and repair and overhaul services product lines of $ 11.4 million principally from new product and service offerings . the net sales increase within the fsg was partially offset by a $ 19.4 million organic net sales decrease in our specialty products lines principally reflecting lower net sales of certain industrial products that are attributable to the completion of a customer 's multi-year orders in late fiscal 2014. as a result of the net sales decrease of certain industrial products , the fsg experienced a 1 % organic revenue decline in fiscal 2015. excluding industrial net sales , the fsg experienced organic growth of 3 % in fiscal 2015. the net sales increase in the etg reflects net sales of $ 8.0 million contributed by a fiscal 2015 acquisition as well as organic growth of 1 % resulting from an aggregate net sales increase of $ 7.6 million attributed to higher demand for certain of our defense , other electronics and aerospace products . the net sales increase within the etg was partially offset by a $ 3.9 million net sales decrease from lower demand for certain of the etg 's space and telecommunications products . sales price changes were not a significant contributing factor to the fsg and etg net sales growth in fiscal 2015. our net sales in fiscal 2015 and 2014 by market consisted of approximately 57 % and 56 % , respectively , from the commercial aviation industry , 27 % and 26 % , respectively , from the defense and space industries , and 16 % and 18 % , respectively , from other industrial markets including medical , electronics and telecommunications . gross profit and operating expenses our consolidated gross profit margin increased to 36.5 % in fiscal 2015 as compared to 35.2 % in fiscal 2014 and principally reflects an increase of 3.8 % in the etg 's gross profit margin as well as a .2 % increase in the fsg 's gross profit margin . the increase in the etg 's gross profit margin is mainly attributed to a more favorable product mix and increased net sales of certain of our defense products . total new product r & d expenses included within our consolidated cost of sales increased to $ 38.7 million in fiscal 2015 compared to $ 37.4 million in fiscal 2014. sg & a expenses were $ 204.5 million and $ 194.9 million in fiscal 2015 and 2014 , respectively , and were a constant 17.2 % of net sales in both fiscal 2015 and 2014. the increase in sg & a expenses principally reflects a $ 28.1 million reduction in the estimated fair value of accrued contingent consideration recorded in the prior year associated with a fiscal 2013 acquisition , partially offset by the impact of $ 13.1 million of impairment losses recorded in the 40 index prior year related to certain intangible assets of the acquired entity and a $ 5.2 million decrease in performance-based compensation expense . see note 7 , fair value measurements , of the notes to consolidated financial statements for additional information . operating income operating income in fiscal 2015 increased by 13 % to a record $ 229.7 million as compared to operating income of $ 203.4 million in fiscal 2014. the increase in operating income reflects a $ 13.3 million increase ( a 10 % increase ) to a record $ 149.8 million in operating income of the fsg in fiscal 2015 , up from $ 136.5 million in fiscal 2014 and a $ 9.9 million increase ( an 11 % increase ) in operating income of the etg to a record $ 98.8 million in fiscal 2015 , up from $ 88.9 million in fiscal 2014. the increase in operating income of the fsg principally reflects the aforementioned net sales growth , a $ 2.6 million decrease in performance-based compensation expense , the improved gross profit margin and $ 1.4 million of unrealized gains from foreign currency transaction adjustments on our euro denominated contingent consideration liability , partially offset by a $ 3.2 million increase in amortization expense of intangible assets recognized in connection with the fiscal 2015 acquired businesses . the increase in operating income of the etg principally reflects the previously mentioned improved gross profit margin and net sales growth , a $ 15.0 million impact from prior year intangible asset impairment losses and a $ 4.0 million decrease in amortization expense of intangible assets , partially offset by the impact of the prior year reduction in the estimated fair value of accrued contingent consideration . additionally , the increase in consolidated operating income reflects a $ 3.3 million decrease in corporate expenses principally due to $ 2.3 million of unrealized gains from foreign currency transaction adjustments on euro borrowings and lower performance-based compensation expense . consolidated operating income as a percentage of net sales increased to 19.3 % in fiscal 2015 , up from 18.0 % in fiscal 2014. the increase in consolidated operating income as a percentage of net sales is mainly attributed to an increase in the etg 's operating income as a percentage of net sales to 25.3 % in fiscal 2015 , up
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources our capitalization was as follows ( in thousands ) : replace_table_token_10_th our principal uses of cash include acquisitions , capital expenditures , cash dividends , distributions to noncontrolling interests and working capital needs . capital expenditures in fiscal 2017 are anticipated to approximate $ 38 million . we finance our activities primarily from our operating and financing activities , including borrowings under our revolving credit facility . as of december 13 , 2016 , we had approximately $ 353 million of unused committed availability under the terms of our revolving credit facility . based on our current outlook , we believe that net cash provided by operating activities and available borrowings under our revolving credit facility will be sufficient to fund our cash requirements for at least the next twelve months . operating activities net cash provided by operating activities was $ 249.2 million in fiscal 2016 and consisted primarily of net income from consolidated operations of $ 176.2 million , depreciation and amortization expense of $ 60.3 million ( a non-cash item ) and an increase in working capital ( current assets minus current liabilities ) of $ 8.1 million . net cash provided by operating activities increased by $ 76.3 million in fiscal 2016 from $ 172.9 million in fiscal 2015. the increase in net cash provided by operating activities in fiscal 2016 is principally due to a $ 36.7 million decrease in working capital , a $ 22.6 million increase in net income from consolidated operations and a $ 12.4 million increase in depreciation and amortization expense ( a non-cash item ) .
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our exceptional maximum consumer broadband speed allows us to continue to meet the needs of our customers and the demand for higher speed resulting from the growing trend of over-the-top ( ott ) content viewing . the availability of 1gbps data speed also complements our wireless home networking ( wi-fi ) that supports our tv everywhere service which launched in 2013 , and allows our subscribers to watch their favorite programs at home or away on a computer , smartphone or tablet . as of december 31 , 2014 , our video service was available to approximately 579,000 homes in the markets we serve , with an approximate 21 % penetration rate . as of december 31 , 2014 , we had approximately 123,000 video subscribers , an 11 % increase from 2013 primarily as a result of the enventis acquisition . we are continually expanding our commercial product offerings for both small and large businesses to capitalize on industry technological advances . in 2014 , we gained strategic advantage through the acquisition of enventis , which earlier in the year launched a suite of cloud services that increases efficiency and reduces it costs for our customers . in addition , we launched an enhanced hosted voice product , which enables greater scalability and reliability for businesses . we anticipate future momentum in new business revenue as these new products gain traction . the increase in our operating revenues during 2014 was offset in part by an anticipated industry wide trend of a decline in access lines and related network access . many consumers are choosing to subscribe to alternative communications services and competition for these subscribers continues to increase . competition from wireless providers , competitive local exchange carriers and in some cases cable television providers has increased in recent years in the markets we serve . we have been able to mitigate some of the access line losses through marketing initiatives and product offerings , such as our voip service . in addition , our video connection growth is decelerating . excluding enventis subscribers of approximately 12,000 , our increase in connections was less than 1 % over 2013. this trend is driven by changing consumer viewing habits , which we believe will continue to impact our business model and strategy of providing consumers the necessary broadband speed to facilitate ott content viewing . as discussed in the regulatory matters section below , our operating revenues are also impacted by legislative or regulatory changes at the federal and state levels , which could reduce or eliminate the current subsidies revenue we receive . a number of proceedings and recent orders relate to universal service reform , intercarrier compensation and network access charges . there are various ongoing legal challenges to the orders that have been issued . as a result , it is not yet possible to determine fully the impact of the regulatory changes on our operations . significant recent developments enventis merger on october 16 , 2014 , we completed our merger with enventis corporation , a minnesota corporation ( enventis ) , and acquired all the issued and outstanding shares of enventis in exchange for shares of our common stock . as a result , enventis became a wholly-owned subsidiary of the company . each share of common stock , no par value , of enventis converted into and became the right to receive 0.7402 shares of common stock , par value of $ 0.01 per share , of our common stock plus cash in lieu of fractional shares as set forth in the merger agreement . based on the closing price of our common stock at $ 25.40 per share on the date preceding the merger , the total value of the purchase consideration exchanged was $ 257.7 million , excluding $ 149.9 million paid to extinguish enventis ' outstanding debt . on the date of the merger , we issued an aggregate total of 10.1 million shares of our common stock to the former enventis shareholders . enventis is an advanced communications provider , which services business and residential customers primarily in the upper midwest . the acquisition reflects our strategy to diversify revenue and cash flows amongst multiple products and to expand our network to new markets . the financial results for enventis have been included in our consolidated financial statements as of the acquisition date . 39 in conjunction with the acquisition , we completed an offering of $ 200.0 million aggregate principal amount of 6.50 % senior notes due in 2022 ( the 2022 notes ) . the net proceeds from the issuance of the 2022 notes were used to finance the acquisition of enventis including related fees and expenses and for the repayment of the existing indebtedness of enventis . a portion of the proceeds , together with cash on hand , was also used to repurchase $ 46.8 million of our 10.875 % senior notes due 2020 ( the 2020 notes ) , as described in the liquidity and capital resources section below . discontinued operations on september 13 , 2013 , we completed the sale of the assets and contractual rights used to provide communications services to thirteen county jails located in illinois . the sale was completed for an aggregate purchase price of $ 2.5 million , resulting in a gain of $ 1.3 million , net of tax . the financial results of the operations for prison services have been reported as discontinued operations in our consolidated financial statements for the years ended on or before december 31 , 2013. surewest merger on july 2 , 2012 , we completed the merger with surewest , which resulted in the acquisition of 100 % of all the outstanding shares of surewest for $ 23.00 per share in a cash and stock transaction . story_separator_special_tag failure to meet the annual data and certification deadlines can result in reduced support to the etc based on the length of the delay in certification . for the calendar year 2013 , the california state certification was due to be filed with the fcc on or before october 1 , 2012. we were notified in january 2013 that surewest communications ( surewest ) did not submit the required certification to the california public utilities commission ( cpuc ) in time to be included in its october 1 , 2012 , submission to the fcc . on january 24 , 2013 , we filed a certification with the cpuc and filed a petition with the fcc for a waiver of the filing deadline for the annual state certification . on february 19 , 2013 , the cpuc filed a certification with the fcc with respect to surewest . on october 29 , 2013 , the wireline competition bureau of the fcc denied our petition for a waiver of the annual certification deadline . on november 26 , 2013 , we applied for a review of the decision made by the fcc staff by the full commission . management is optimistic , based on the change in surewest telephone 's usf filing status caused by the change in the ownership of surewest telephone , the lack of formal notice by the fcc regarding this change in filing status , the fact that surewest telephone had a previously-filed certification of compliance in effect with the fcc for the two quarters for which usf was withheld , and the fcc 's past practice of granting waivers to accept late filings in similar situations , that the company may prevail in its application to the commission and receive usf funding for the period january 1 , 2013 , through june 30 , 2013. however , due to the denial of our petition by the wireline competition bureau and the uncertainty of the collectability of the previously recognized revenues , in december 2013 we reversed the $ 3.0 million of previously recognized revenues until such time that the commission has the opportunity to reach a decision on our application for review . our recently acquired enventis ilec properties are cost based rate of return companies . historically , under fcc rules governing rate making , these ilecs were required to establish rates for their interstate telecommunications services based on projected demand usage for the various services . we projected our earnings through the use of annual cost separation studies , which utilized estimated total cost information and projected demand usage . carriers were required to follow fcc rules in the preparation of these annual studies . we determined actual earnings from our interstate rates as actual volumes and costs became known . effective january 1 , 2015 , our enventis ilecs are treated as price cap companies for universal service purposes . we anticipate filing a petition for waiver in the first quarter of 2015 to keep them as rate of return for switched access . if the petition is denied , then they would convert to price cap companies effective july 1 , 2015. we expect certain adjustments to take place over 18 months as a result of exiting the national exchange carrier association ( neca ) pool ; however , we do not anticipate that they will be material to our consolidated financial statements or results of operations . an order adopted by the fcc in 2011 ( the order ) may significantly impact the amount of support revenue we receive from usf/caf and icc . the order reformed core parts of the usf , broadly recast the existing icc scheme and established the caf to replace support revenues provided by the current usf and redirects support from voice services to broadband services . in 2012 , phase i of the caf was implemented freezing usf support to price cap holding companies until the fcc implemented a broadband cost model to shift support from voice service to broadband . the order also modified the methodology used for icc traffic exchanged between carriers . the initial phase of icc reform was effective on july 1 , 2012 , beginning the transition of our terminating switched access rates to bill-and-keep over a seven year period . as a result of implementing the provisions of the order , during 2014 our network access revenues decreased approximately $ 1.4 million compared to 2013. on december 19 , 2014 , the fcc released a report and order that addresses , among other things , the transition to caf phase ii for price cap carriers , the acceptance criteria of caf phase ii funding , and the rules for the competitive bidding process . for companies that accept the caf phase ii model based support , there will be a three year transition period in instances where their current phase i frozen funding exceeds the phase ii funding . if phase ii support exceeds phase i , then transitional support is waived and phase ii funding begins immediately . companies are required to commit to a statewide build out requirement to 10 mbps downstream and 1 mbps upstream in funded locations , with funding received over six years beginning in mid-2015 . the fcc is expected to release the final model support in the first quarter of 2015 , with funding retroactive to january 2015 . 46 companies that do not accept the caf phase ii funding will continue to receive phase i frozen support amounts until funding for their service area is awarded to another carrier through the competitive bidding process , which is expected to be completed in 2016. in addition , companies that do not accept the model based support will be eligible to participate in the competitive bidding process . there is no statewide commitment associated with the auction process ; ilecs will only be required to build to the locations won , and funding
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources outlook and overview our operating requirements have historically been funded from cash flows generated from our business and borrowings under our credit facilities . we expect that our future operating requirements will continue to be funded from cash flows from operating activities , existing cash and cash equivalents , and , if needed , from borrowings under our revolving credit facility and our ability to obtain future external financing . we anticipate that we will continue to use a substantial portion of our cash flow to fund capital expenditures , meet scheduled payments of long-term debt , make dividend payments and to invest in future business opportunities . 50 the following table summarizes our cash flows : replace_table_token_12_th cash flows provided by operating activities net cash provided by operating activities from continuing operations was $ 187.8 million in 2014 , an increase of $ 19.3 million as compared to 2013. cash provided by operating activities increased primarily as a result of the additional cash flows provided by the addition of the enventis operations of $ 12.4 million . additionally , cash provided by operating activities increased primarily due to the timing in payments to suppliers and the payment of accrued transaction costs in 2013. these increases were offset in part by an increase in accounts receivable and an increase in income taxes paid during 2014. cash flows used in investing activities net cash used in investing activities from continuing operations was $ 246.9 million during 2014 and consisted primarily of cash used for the acquisition of enventis and for capital expenditures . acquisition of enventis in 2014 , we acquired all of the issued and outstanding shares of enventis for shares of our common stock and cash in lieu of fractional shares . the purchase price consisted of cash and the repayment of debt of $ 139.6 million , net of cash acquired , and the issuance of shares of the company 's common stock valued at $ 257.7 million .
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we plan to continue to invest in the expansion of our chegg services to provide a more compelling and personalized solution and deepen engagement with students . in addition , we believe that the investments we have made to achieve our current scale will allow us to drive increased operating margins over time that , together with increased contributions of chegg services , will enable us to accomplish profitability and become cash-flow positive in the long-term . our ability to achieve these long-term objectives is subject to numerous risks and uncertainties , including our ability to attract , retain , and increasingly engage the student population , intense competition in our markets , the ability to achieve sufficient contributions to revenue from chegg services and other factors described in greater detail in part i , item 1a , “ risk factors . ” we have presented revenues for our two product lines , chegg services and required materials , based on how students view us and the utilization of our products by them . more detail on our two product lines is discussed in the next two sections titled `` chegg services `` and `` required materials . `` 40 chegg services our chegg services for students primarily includes chegg study , chegg writing , chegg tutors , chegg math solver , and thinkful , our skills-based learning platform . students typically pay to access chegg services such as chegg study on a monthly basis . we also work with leading brands to provide students with discounts , promotions , and other products that , based on student feedback , delight them . in the aggregate , chegg services revenues were 81 % and 79 % and of net revenues during the years ended december 31 , 2019 and 2018 , respectively . required materials our required materials product line includes a revenue share , upon fulfillment , on the total transactional amount of a rental and sale transaction for print textbooks . we have entered into agreements with partners to provide our customers a wide variety of print textbooks for which they have title and risk of loss . these agreements have allowed us to reduce capital requirements and operating expenses . additionally , required materials includes revenues from etextbooks , which we offer on a standalone basis or as a rental-equivalent solution and for free to students awaiting the arrival of their print textbook rental for select print textbooks . etextbooks and supplemental course materials are available from approximately 120 publishers as of december 31 , 2019 . in the aggregate , required materials revenues were 19 % and 21 % of net revenues during the years ended december 31 , 2019 and 2018 , respectively . in october 2019 , we signed a strategic logistics agreement with fedex which will transition the logistics and warehousing for print textbooks transactions to fedex in 2020. in january 2020 , we began making purchases of print textbooks for our print textbook library , in which we will have title and risk of loss . required materials will also include revenues from print textbooks that we will own , which will be recognized as the total transaction amount ratably over the term of a rental period , which is generally two to five months . seasonality of our business chegg services , rental revenues from print textbooks that we own , and etextbooks revenues are primarily recognized ratably over the term a student subscribes to our chegg services or rents a print textbook or etextbook . this has generally resulted in our highest revenues and profitability in the fourth quarter as it reflects more days of the academic year . our variable expenses related to marketing activities remain highest in the first and third quarter such that our profitability may not provide meaningful insight on a sequential basis . as a result of these factors , the most concentrated periods for our revenues and expenses do not necessarily coincide , and comparisons of our historical quarterly results of operations on a sequential basis may not provide meaningful insight into our overall financial performance . components of results of operations net revenues we recognize revenues from our chegg services and required materials product lines , net of allowances for refunds or charge backs from our payment processors who process payments from credit cards , debit cards , and paypal . revenues from our chegg services product line primarily includes chegg study , chegg writing , chegg tutors , chegg math solver , and thinkful . chegg services are offered to students primarily through weekly or monthly subscriptions , and we recognize revenues ratably over the respective subscription period . revenues from thinkful , our skills-based learning platform , are recognized either ratably over the term of the course , generally six months , or upon completion of the lessons , depending on the instruction type of the course . revenues from our required materials product line includes a revenue share , upon fulfillment , on the total transactional amount of a rental and sale transaction for print textbooks and revenues from etextbooks . the revenue share on the rental and sale of print textbooks is recognized immediately when a book ships to the student . shipping and handling activities are performed after we recognize revenues and we have elected to account for them as activities to fulfill a print textbook rental or sale order . revenues from the rental of etextbooks is recognized ratably over the contractual period , generally two to five months . revenues from the sale of etextbooks is recognized immediately when the etextbook sale occurs . story_separator_special_tag in addition , based on our current and future needs , we believe our current funding and capital resources for our international operations are adequate . the following table sets forth our cash flows ( in thousands ) : replace_table_token_9_th story_separator_special_tag have the ability to direct the use of the good or service and obtain substantially all of the remaining benefits from the good or service . in relation to print textbook rental and sale agreements with our partners , we recognize revenues on a net basis based on our role in the transaction as an agent as we have concluded that we do not control the use of the print textbooks , and therefore record only the revenue share we earn upon the shipment of a print textbook to a student . for the rental or sale of etextbooks , we have concluded that we control the service , therefore we recognize revenues and cost of revenues on a gross basis ratably over the term the student has access to the etextbook . rental revenues from print textbooks that we own will be recognized at the gross amount of the total transaction as a principal as we have concluded that we do control the use of print textbooks that we own . some of our customer arrangements include multiple performance obligations . we have determined these performance obligations qualify as distinct performance obligations , as the customer can benefit from the service on its own or together with other resources that are readily available to the customer and our promise to transfer the service is separately identifiable from other promises in the contract . for these arrangements that contain multiple performance obligations , we allocate the transaction price based on the relative standalone selling price method by comparing the standalone selling price ( ssp ) of each distinct performance obligation to the total value of the contract . we determine the ssp based on our historical pricing and discounting practices for the distinct performance obligation when sold separately . if the ssp is not directly observable , we estimate the ssp by considering information such as market conditions , and information about the customer . our agreements with print textbook partners may include an amount of variable consideration in addition to a fixed revenue share that we earn . this variable consideration can either increase or decrease the total transaction price depending on the nature of the variable consideration . we estimate the amount of variable consideration that we will earn at the inception of the contract , adjusted during each period , and include an estimated amount each period . in determining this estimate , we consider the single most likely amount in a range of possible amounts . this estimated amount of variable consideration requires management to make a judgment based on the forecasted amount of consideration that we expect we will earn as well as the time period in which we can reasonably rely on the accuracy of the forecast . our estimate of variable consideration is constrained to only include three to four years of estimated variable consideration . this is the amount of variable consideration for which it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur , as the amounts that we could potentially earn in the outer years can change significantly based on factors that are out of our control . if our forecasts are inaccurate , the estimated amount of variable consideration could be inaccurate which could impact our revenue recognition in a given period . impairment of acquired intangible assets and other long-lived assets we assess the impairment of acquired intangible assets and other long-lived assets at least annually and whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable . factors that we consider in determining when to perform an impairment review include significant negative industry or economic trends or significant changes or planned changes in the use of the assets . when measuring the recoverability of these assets , we will make assumptions regarding our estimated future cash flows expected to be generated by the assets . if our estimates or related assumptions change in the future , we may be required to impair these assets . we did not record any impairment charges related to acquired intangible assets or other long-lived assets during the years ended december 31 , 2019 and 2018 . as of december 31 , 2019 and 2018 , we had intangible assets , net , of $ 34.7 million and $ 25.9 million , respectively and property and equipment , net of $ 87.4 million and $ 59.9 million , respectively . 50 goodwill and indefinite lived intangible asset goodwill and our indefinite lived intangible asset are tested for impairment at least annually or whenever events or changes in circumstances indicate that their carrying values may not be recoverable . we first assess qualitative factors to determine whether it is necessary to perform a quantitative impairment test . in our qualitative assessment , we consider factors including economic conditions , industry and market conditions and developments , overall financial performance and other relevant entity-specific events in determining whether it is more likely than not that the fair value of our reporting unit is less than the carrying amount . our qualitative assessment requires management to make judgments based on the factors listed above in our determination of whether events or changes in circumstances indicate that the carrying values may not be recoverable . should we conclude that it is more likely than not that our carrying values have been impaired , we would recognize an impairment charge for the amount by which the carrying amount of goodwill and our indefinite lived intangible asset exceed our fair value . we have not recognized any impairment of goodwill or our indefinite lived intangible asset since our inception . as of
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash flows from operating activities although we incurred net losses during the years ended december 31 , 2019 and 2018 , our net losses were fully offset by non-cash expenditures such as other depreciation and amortization expense , share-based compensation expense , and amortization of debt discount and issuance costs expense . net cash provided by operating activities during the year ended december 31 , 2019 was $ 113.4 million . our net loss of $ 9.6 million was offset by significant non-cash operating expenses , including other depreciation and amortization expense of $ 30.2 million , share-based compensation expense of $ 64.9 million , and the amortization of debt discount and issuance costs related to the 2025 notes and 2023 notes of $ 43.2 million . net cash provided by operating activities during the year ended december 31 , 2018 was $ 75.1 million . our net loss of $ 14.9 million was offset by significant non-cash operating expenses , including other depreciation and amortization expense of $ 22.8 million , share-based compensation expense of $ 52.0 million , and the amortization of debt discount and issuance costs related to the 2023 notes of $ 10.5 million . cash flows from investing activities cash flows from investing activities have been primarily related to the purchases of investments , acquisition of businesses , and purchases of property and equipment , offset by proceeds from the sale and maturity of investments . net cash used in investing activities during the year ended december 31 , 2019 was $ 703.4 million and was related to the purchases of investments of $ 959.9 million , purchases of property and equipment of $ 42.3 million , and the acquisition of business of $ 79.1 million , partially offset by the maturity of investments of $ 324.7 million and proceeds from the sale of investments of $ 53.3 million .
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in addition to launching new projects for our future growth , we continue to analyze our asset portfolio to ensure capital discipline in all aspects of our business . as a result , we have decided to discontinue the operation of our ammonia pipeline system later this year due to its low profitability and challenging economic outlook . we are also no longer pursuing our delaware basin crude oil pipeline construction project on a stand-alone basis and are actively evaluating a lower cost solution to meet the needs of our customers . these decisions demonstrate our commitment to manage all aspects of our business in a disciplined manner . growth projects additional energy infrastructure to support our nation 's growing export needs remains an important theme for our industry . we have made significant progress to advance our strategy to grow our marine capabilities along the gulf coast for both crude oil and refined products . our seabrook joint venture initiated its first crude oil export in august 2018 , and we announced plans to further expand this terminal with additional storage and dock capabilities . we believe the export options provided through seabrook increases the attractiveness of our service offering to seamlessly deliver crude oil from the permian basin to the gulf coast waterway to meet our customers ' growing interest in crude exports . the first phase of our newly constructed mvp joint venture marine terminal in pasadena , texas became operational in january 2019 to meet our customers ' increasing desire for refined products storage and export solutions . we continue to make significant progress on the next phase of the terminal at pasadena , with an additional 4 million barrels of storage and additional dock capabilities expected to come online by the end of 2019. discussions with a number of industry participants continue for additional infrastructure needs at this new facility . we remain optimistic about future expansions at pasadena that could double the capacity of this new marine terminal . industry demand for additional pipeline infrastructure continues as well , and construction is underway for a new refined products pipeline segment in central texas that will expand capacity between houston and the dallas-ft. worth metropolitan area . this new pipeline segment is expected to be in-service during mid-2019 . we are also expanding the western leg of our texas refined products pipeline by mid-2020 . our texas refined products pipeline system has been oversubscribed for quite some time , and we are pleased to meet the industry 's need for more capacity through these strategic enhancements to our essential refined products pipeline system . in 2018 , we also announced plans to form a new crude oil pipeline joint venture with energy transfer , mplx and delek to deliver crude oil from the permian basin to our terminal in the houston area and energy transfer 's terminal in nederland , texas . this permian gulf coast ( “ pgc ” ) pipeline is intended to serve the gulf coast refining complex from texas to louisiana as well as multiple crude oil export facilities . while advancing the pgc stand-alone project , we also remain in discussions with other industry players to assess the potential to combine similar projects to capture capital and operating efficiencies that may be available for all parties . recent developments cash distribution . in january 2019 , the board of directors of our general partner declared a quarterly cash distribution of $ 0.9975 per unit for the period of october 1 , 2018 through december 31 , 2018. this quarterly cash distribution was paid on february 14 , 2019 to unitholders of record on february 7 , 2019. the total distribution paid on 228.4 million limited partner units outstanding was $ 227.8 million . 48 debt issuance . in january 2019 , we issued $ 500.0 million of 4.85 % senior notes due 2049 in an underwritten public offering . the notes were issued at 99.371 % of par . net proceeds from this offering were approximately $ 492.5 million after underwriting discounts . the net proceeds from this offering along with cash on hand were used to redeem our 6.55 % senior notes due 2019 , which were paid on february 11 , 2019. ammonia pipeline . in december 2018 , we made the decision to discontinue commercial operations of our ammonia pipeline beginning in late 2019 due to the system 's low profitability and challenging economic outlook . as a result , we have recognized a $ 49.1 million impairment charge . results of operations we believe that investors benefit from having access to the same financial measures utilized by management . operating margin , which is presented in the following tables , is an important measure used by management to evaluate the economic performance of our core operations . operating margin is not a generally accepted accounting principles ( “ gaap ” ) measure , but the components of operating margin are computed using amounts that are determined in accordance with gaap . a reconciliation of operating margin to operating profit , which is its nearest comparable gaap financial measure , is included in the following tables . operating profit includes expense items , such as depreciation , amortization and impairment expense and general and administrative ( “ g & a ” ) expenses , which management does not focus on when evaluating the core profitability of our separate operating segments . additionally , product margin , which management primarily uses to evaluate the profitability of our commodity-related activities , is provided in these tables . product margin is a non-gaap measure ; however , its components of product sales revenue and cost of product sales are determined in accordance with gaap . our butane blending , fractionation and other commodity-related activities generate significant revenue . story_separator_special_tag for purposes of this table , we have reflected no assumed borrowings under our revolving credit facility or commercial paper program for any periods presented . we have included interest obligations based on the stated amounts of our fixed-rate obligations . ( 2 ) we have entered into product storage contracts with third parties . the cost of storage services is recognized in cost of product sales on our consolidated statements of income . ( 3 ) represents the projected benefit obligation of our pension and postretirement medical plans less the fair value of plan assets . ( 4 ) includes product purchase commitments for which the price provisions are indexed based on the date of delivery . we have estimated the value of these commitments using the related index price curve as of december 31 , 2018. also , we have excluded certain product purchase agreements for which there is no specified or minimum quantity . ( 5 ) as of december 31 , 2018 , we had entered into exchange-traded futures contracts representing 4.1 million barrels of petroleum products that we expect to sell in the future and 0.9 million barrels of butane we expect to purchase in the future . at december 31 , 2018 , we had recorded a net asset of $ 55.0 million and held margin deposits of $ 37.3 million . we have excluded from this table the future net cash outflows , if any , under these futures contracts and the amounts of future margin deposit requirements because those amounts are uncertain . ( 6 ) settlements of our ltip awards will differ from these reported amounts primarily due to differences between actual and current estimates of payout percentages and completion of the remaining portion of the requisite service periods . environmental our operations are subject to federal , state and local environmental laws and regulations . we have accrued liabilities for estimated costs at our facilities and properties . we record liabilities when environmental costs are probable and can be reasonably estimated . the determination of amounts recorded for environmental liabilities involves significant judgments and assumptions by management . due to the inherent uncertainties involved in determining environmental liabilities , it is reasonably possible that the actual amounts required to extinguish these liabilities could be materially different from those we have recognized . other items pipeline tariff increase . the federal energy regulatory commission ( “ ferc ” ) regulates the rates charged on interstate common carrier pipeline operations primarily through an indexing methodology , which establishes the maximum amount by which index-based tariffs can be adjusted each year . approximately 40 % of our refined products tariffs are subject to this indexing methodology . the remaining 60 % of our refined products tariffs are either subject to regulations by the states in which we operate or are approved for market-based rates by the ferc , 59 and in both cases these rates can be adjusted at our discretion based on market factors . the current ferc-approved indexing method is the annual change in the producer price index for finished goods ( “ ppi-fg ” ) plus 1.23 % . based on the preliminary estimates for this indexing methodology in 2018 , we expect to increase virtually all of our refined products pipeline rates by approximately 4.3 % on july 1 , 2019. most of the tariffs on our crude oil pipelines are established at negotiated rates that generally provide for annual adjustments in line with changes in the ferc index , subject to certain modifications . we also expect to increase the rates of our crude oil pipelines by approximately 4 % on average in july 2019. sale of interest in bridgetex . in september 2018 , we sold a 20 % interest in bridgetex to an affiliate of omers infrastructure management inc. , which reduced our ongoing ownership in bridgetex to a 30 % interest . we received $ 575.6 million in cash from the sale and recorded a gain of $ 353.8 million on our consolidated statements of income . we continue to serve as the operator of bridgetex . crude oil pipeline contract renewals . due to increased competition , recent contract renewals have resulted in lower average crude oil tariff rates for term commitments . for example , the initial term of our contracts for the longhorn pipeline expired in september 2018 , and some shippers elected to extend their contracts under current terms for an additional two years , while others executed new contracts with lower incentive tariff rates and terms up to 10 years , resulting in an average contract term of five years and a lower average tariff rate . although we continue to believe that demand for capacity on longhorn and our other crude oil pipelines remains strong , the pricing environment for term commitments on crude oil pipelines is very competitive , and we continue to assume the average tariff rates agreed to for term commitments on our crude oil pipelines , including the crude oil pipelines of our joint ventures , will be lower upon future renewals . commodity derivative agreements . certain of the business activities in which we engage result in our owning various commodities , which exposes us to commodity price risk . we use forward physical commodity contracts and exchange-based futures contracts to help manage this commodity price risk . we use forward physical contracts to purchase butane and sell refined products . we account for these forward physical contracts as normal purchase and sale contracts , using traditional accrual accounting . we use futures contracts to hedge against changes in prices of petroleum products that we expect to sell or purchase in future periods . we use and account for those futures contracts that qualify for hedge accounting treatment as either cash flow or fair value hedges , and we use and account for those futures contracts that do not qualify for hedge accounting treatment
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources cash flows and capital expenditures operating activities . net cash provided by operating activities was $ 973.3 million , $ 1,131.2 million and $ 1,353.0 million for the years ended december 31 , 2016 , 2017 and 2018 , respectively . the $ 221.8 million increase from 2017 to 2018 was due to higher net income as previously described and changes in our working capital , partially offset by adjustments for non-cash items . the $ 157.9 million increase from 2016 to 2017 was due to higher net income as previously described , adjustments to non-cash items and changes in our working capital . investing activities . net cash used by investing activities for the years ended december 31 , 2016 , 2017 and 2018 was $ 866.6 million , $ 593.2 million and $ 119.3 million , respectively . during 2018 , we sold a portion of our interest in bridgetex for cash proceeds of $ 575.6 million . also during 2018 , we spent $ 562.3 million on capital expenditures , which included $ 88.7 million for maintenance capital , $ 425.0 million for our expansion capital projects and $ 48.6 million for undivided joint interest projects for which cash was received from a third party . additionally , we contributed capital of $ 216.4 million in conjunction with our joint venture capital projects , which we account for as investments in non-controlled entities .
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except as required by applicable law , we do not intend to update or revise forward-looking statements contained in this annual report on form 10-k to reflect future events or circumstances . overview we are a biotechnology company focused on the discovery and development of lipidomic-based therapeutic antibodies , an emerging field of medical science that targets bioactive signaling lipids to treat a wide range of human diseases . we have two product candidates that are currently in clinical development , and one in pre-clinical evaluation . isonep is the ocular formulation of sonepcizumab , a humanized monoclonal antibody ( mab ) against sphingosine-1-phosphate ( s1p ) . sphingomab is the original mouse version of this monoclonal antibody . isonep is administered by intravitreal injection , and has demonstrated multiple mechanisms of action in ocular models of disease , including anti-angiogenesis , anti-inflammatory , anti-fibrotic and anti-vascular permeability . this combination of mechanisms would suggest : ( i ) isonep might have a comparative advantage over currently marketed products for wet age-related macular degeneration ( wet amd ) and ( ii ) isonep might demonstrate clinical efficacy in a broad range of retinal diseases where there is currently a significant unmet medical need , including diabetic retinopathy , dry amd , and glaucoma-related surgery . in december 2010 , we entered into an agreement with pfizer inc. ( the pfizer agreement ) , which provides pfizer with an exclusive option for a worldwide license to develop and commercialize isonep . under the original terms of the pfizer agreement , pfizer and the company planned to conduct two studies , including a phase 1b study in wet amd patients with pigment epithelial detachment ( ped ) , a complication of wet amd ( the pedigree trial `` ) , and a larger phase 2a study in wet amd patients generally ( the nexus trial `` ) . the company began enrolling patients in the pedigree and nexus trials in september 2011 and october 2011 , respectively . the food and drug administration ( fda ) placed the pedigree and nexus trials on clinical hold in january 2012 following a determination by the fda that the fill-and-finish contractor that had filled the isonep clinical trial vials was not in compliance with the fda 's current good manufacturing practice ( cgmp `` ) standards during the time period it provided those services to the company . thereafter , we manufactured new isonep drug substance with an alternate fill-and-finish contractor and resumed dosing patients in the nexus trial in september 2012. as a result of the clinical hold and the requirement to manufacture new drug substance , the projected costs to complete the isonep trials increased significantly and pfizer requested the company to consider potential alternatives to reduce the increased costs of the isonep trials . in december 2012 , lpath and pfizer amended the pfizer agreement to among other things , reflect the parties ' agreement to discontinue the pedigree trial and to focus on the nexus trial . the parties agreed to continue to pursue and share the cost of the isonep trials , including any costs associated with discontinuing the pedigree trial . in october 2013 , lpath announced that it had received notice from pfizer that pfizer would be seeking to divest certain ophthalmology research and development assets , including pfizer 's rights and obligations under the pfizer agreement . lpath presented offers to pfizer to reacquire those rights . however , in december 2013 , pfizer informed lpath that its offers were not competitive with other offers . therefore , lpath believes that a number of third parties may have an interest in acquiring pfizer 's rights . acquisition of pfizer 's rights and obligations under the terms of the pfizer agreement by a third party would not affect the terms of the pfizer agreement , as the existing rights and obligations currently held by pfizer will be assumed by to the third party or remain with pfizer based on the terms of the agreement between pfizer and the third party . as of december 31 , 2013 , pfizer had paid the company $ 20.0 million pursuant to the terms of the pfizer agreement , including the $ 14 million upfront payment . the amendment to the pfizer agreement did not modify the company 's obligation to fund $ 6.0 million of nexus trial expenses , which it completed during 2013. the terms of the pfizer agreement specify that , since the company has fulfilled its funding obligation , pfizer ( or any third party who acquires pfizer 's rights ) will fund the remaining expenses necessary to complete the nexus trial . 30 as of march 14 , 2014 , 135 patients have been enrolled in the nexus trial , with 25 additional patients required to complete enrollment . we expect to complete dosing the last nexus trial patient during the second half of 2014. the actual time required to complete our clinical trials will depend upon a number of factors outside of our direct control , including those discussed in risk factors we may have delays in completing our clinical trials , and we may not complete them at all. following completion of the nexus study , pfizer ( or a third party who may acquire pfizer 's rights ) has the right to exercise its option for worldwide rights to isonep for an undisclosed option fee and , if pfizer ( or a third party who may acquire pfizer 's rights ) exercises its option , we will be eligible to receive development , regulatory , and commercial milestone payments that could total up to $ 497.5 million . story_separator_special_tag in some years , such as 2010 and 2011 , the california state government has suspended the use of existing california nol carryforwards . in those years companies have not been permitted to utilize nol carryforwards to reduce the amount of taxes payable to the state . if that fiscal policy were to continue then the california benefits could be deferred , modified , or lost . as of december 31 , 2013 , we also had federal and california research and development tax credit carryforwards of $ 1.2 million and $ 0.6 million , respectively . these tax credits may be available to offset future taxes . the federal credits begin expiring in 2014 , and the state credits do not expire . a valuation allowance has been established to reserve the potential benefits of these carryforwards in our consolidated financial statements to reflect the uncertainty of future taxable income required to utilize available tax loss carryforwards and other deferred tax assets . under the provisions of section 382 of the internal revenue code , substantial changes in our ownership may limit the amount of net operating loss carryforwards that we can utilize annually in the future to offset taxable income . if a change in our ownership is deemed to have occurred or occurs in the future , our ability to use our net operating loss and tax credit carryforwards in any fiscal year may be significantly limited . 34 fair value of warrant liability we measure fair value in accordance with the applicable accounting standards in the financial accounting standards board ( fasb ) codification . fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability . as a basis for considering such assumptions , there exists a three-tier fair value hierarchy , which prioritizes the inputs used in measuring fair value as follows : · level 1unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access as of the measurement date . · level 2inputs other than quoted prices included within level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data . · level 3unobservable inputs for the asset or liability only used when there is little , if any , market activity for the asset or liability at the measurement date . this hierarchy requires us to use observable market data , when available , and to minimize the use of unobservable inputs when determining fair value . we determined the fair value of the warrants using a black-scholes . the model considered amounts and timing of future possible equity and warrant issuances and historical volatility of our stock price . results of operations comparison of years ended december 31 , 2013 and 2012 grant and royalty revenue . grant and royalty revenue for 2013 increased to $ 1.5 million from $ 1.0 million in 2012. the increase of $ 0.5 million is principally due to the january 2012 suspension of the isonep clinical trials . the clinical trials were resumed in september 2012. the suspension resulted in reduced reimbursable costs for outside services in 2012 compared to 2013. research and development revenue under collaborative agreements . as described in note 2 to the consolidated financial statements , in december 2010 we entered into an agreement with pfizer , inc. , which agreement was amended in 2012 , that provides financial support for our isonep and asonep development programs . we recognized revenues as follows : replace_table_token_2_th the increase in revenue in 2013 is attributable principally to the suspension of the isonep clinical trials from january to september 2012. reduced expenditures during that time period resulted in lower amortization of deferred revenues . research and development expenses . research and development expenses for 2013 totaled $ 11.3 million compared to $ 8.2 million for 2012 , an increase of $ 3.1 million . in january 2012 , we temporarily suspended dosing patients in our isonep clinical trials . the increase in research and development costs in 2013 is due principally to the resumption of the clinical trials in september 2012. general and administrative expenses . general and administrative expenses were $ 4.2 million for the year ended december 31 , 2013 compared to $ 4.1 million for 2012 , an increase of $ 0.1 million . the increase in 2013 is principally to increases in legal and investor relations expenses . change in fair value of warrants . various factors are considered in the black-scholes model we use to value outstanding warrants , including our current stock price , the remaining life of the warrants , the volatility of our stock price , and the risk-free interest rate . future changes in these factors will have a significant impact on the computed fair value of the warrant liability . the most significant factor in the valuation model is our stock price . our stock has been thinly traded and relatively small transactions can impact our quoted stock price significantly . as a result , our stock price volatility factor is approximately 44 % . as such , we expect future changes in the fair value of the warrants to continue to vary significantly from quarter to quarter . we caution that the change in fair value of the warrants should not be given undue importance when considering our financial condition and our results of operations . we do not believe that these adjustments , which are required by current generally accepted accounting principles , reflect economic activities or financial obligations undertaken by us . 35 story_separator_special_tag p style= `` margin:0in 0in .0001pt ; text-indent : .5in ; `` > further , our expenses may exceed our current plans and expectations . for example , we believe we have adequate supplies of clinical material to complete the phase 2 clinical trial for isonep ,
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources since inception , our operations have been financed primarily through the sale of equity and debt securities and funds received from corporate partners pursuant to research and development collaboration agreements . from inception through december 31 , 2013 , we had received net proceeds of approximately $ 61.3 million from the sale of equity securities and the issuance of convertible promissory notes . in addition , we had received a total of $ 37.7 million from corporate partners . we received a total of $ 20.0 million in funding from our research and development arrangement with pfizer during the years ended december 31 , 2011 through 2013. at december 31 , 2013 , we had cash and cash equivalents totaling $ 11.9 million . cash and cash equivalents consist of cash in demand deposit accounts , money market accounts that hold only u.s treasury securities , and federally insured certificates of deposits . net cash used in investing activities during year ended december 31 , 2013 was $ 391,000 , including $ 45,000 invested in equipment and leasehold improvements and $ 346,000 invested in the prosecution of patents . during 2012 , net cash used in investing activities totaled $ 344,000 , including $ 155,000 invested in equipment and leasehold improvements and $ 189,000 invested in the prosecution of patents . net cash provided by financing activities totaled $ 771,000 , including $ 803,000 from the sale of common stock . on august 15 , 2013 , lpath entered into an at-the-market issuance sales agreement , ( the sales agreement ) with mlv & co. llc ( mlv ) and jmp securities llc ( jmp together with mlv , the sales agents ) , pursuant to which the company may issue and sell shares of its common stock having an aggregate offering price of up to $ 20 million from time to time , at the company 's option , through the sales agents .
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ssgt was focused on opportunistic self storage properties , including development , and lease-up properties . see note 3 , real estate facilities—merger with strategic storage growth trust , inc. , for additional information related to the ssgt mergers . in our initial public offering , which commenced on january 10 , 2014 and ended on january 9 , 2017 , we offered a maximum of $ 1.0 billion in common shares for sale to the public ( the “ primary offering ” ) and $ 95.0 million in common shares for sale pursuant to our distribution reinvestment plan ( collectively , the “ offering ” ) and sold approximately 48.4 million class a shares and approximately 7.3 million class t shares for approximately $ 493 million and $ 73 million , respectively . 45 as of december 31 , 2019 , we owned 112 self storage properties located in 17 states ( alabama , arizona , california , colorado , florida , illinois , indiana , maryland , massachusetts , michigan , new jersey , nevada , north carolina , ohio , south carolina , texas and washington ) and ontario , canada ( the greater toronto area ) comprising of approximately 72,0 00 units and approximately 8.2 million rentable square feet . critical accounting policies we have established accounting policies which conform to generally accepted accounting principles ( “ gaap ” ) . preparing financial statements in conformity with gaap requires management to use judgment in the application of accounting policies , including making estimates and assumptions . following is a discussion of the estimates and assumptions used in setting accounting policies that we consider critical in the presentation of our financial statements . many estimates and assumptions involved in the application of gaap may have a material impact on our financial condition or operating performance , or on the comparability of such information to amounts reported for other periods , because of the subjectivity and judgment required to account for highly uncertain items or the susceptibility of such items to change . these estimates and assumptions affect our reported amounts of assets and liabilities , our disclosure of contingent assets and liabilities at the dates of the financial statements and our reported amounts of revenue and expenses during the period covered by this report . if management 's judgment or interpretation of the facts and circumstances relating to various transactions had been different , it is possible that different accounting policies would have been applied or different amounts of assets , liabilities , revenues and expenses would have been recorded , thus resulting in a materially different presentation of the financial statements or materially different amounts being reported in the financial statements . additionally , other companies may use different estimates and assumptions that may impact the comparability of our financial condition and results of operations to those companies . we believe that our critical accounting policies include the following : real estate purchase price allocations ; the evaluation of whether any of our long-lived assets have been impaired ; the valuation of goodwill and related impairment considerations , the valuation of our trademarks and related impairment considerations , the determination of the useful lives of our long-lived assets ; and the evaluation of the consolidation of our interests in joint ventures . the following discussion of these policies supplements , but does not supplant the description of our significant accounting policies , as contained in note 2 of the notes to the consolidated financial statements contained in this report , and is intended to present our analysis of the uncertainties involved in arriving upon and applying each policy . real estate purchase price allocation we account for acquisitions in accordance with gaap which requires that we allocate the purchase price of a property to the tangible and intangible assets acquired and the liabilities assumed based on their relative fair values . this guidance requires us to make significant estimates and assumptions , including fair value estimates , which requires the use of significant unobservable inputs as of the acquisition date . the value of the tangible assets , consisting of land and buildings is determined as if vacant . because we believe that substantially all of the leases in place at properties we will acquire will be at market rates , as the majority of the leases are month-to-month contracts , we do not expect to allocate any portion of the purchase prices to above or below market leases . we also consider whether in-place , market leases represent an intangible asset . acquisitions of portfolios of facilities are allocated to the individual facilities based upon an income approach or a cash flow analysis using appropriate risk adjusted capitalization rates which take into account the relative size , age , and location of the individual facility along with current and projected occupancy and rental rate levels or appraised values , if available . our allocations of purchase prices are based on certain significant estimates and assumptions , variations in such estimates and assumptions could result in a materially different presentation of the consolidated financial statements or materially different amounts being reported in the consolidated financial statements . impairment of long-lived assets the majority of our assets consist of long-lived real estate assets as well as intangible assets related to our acquisitions . we evaluate such assets for impairment based on events and changes in circumstances that may arise in the future and that may impact the carrying amounts of our long-lived assets . when indicators of potential impairment are present , we will assess the recoverability of the particular asset by determining whether the carrying value of the asset will be recovered , through an evaluation of the undiscounted future operating cash flows expected from the use of the asset and its eventual disposition . this evaluation is based on a number of estimates and assumptions . story_separator_special_tag the increase in total self storage revenues of approximately $ 22.8 million , or 28.3 % , is primarily attributable to the 28 operating self storage facilities acquired in january 2019 and one operating property acquired in july 2019 in connection with the ssgt mergers ( approximately $ 22.0 million ) , incremental tenant program revenues generated on our wholly owned assets primarily as a result of the self administration transaction ( approximately $ 1.5 million ) , and same-store increases , excluding the impact of the incremental tenant program revenues , of approximately $ 1.1 million , or 1.6 % ( see same-store facility results table and related footnotes for the years ended december 31 , 2019 and 2018 for further discussion ) , partially offset by the impact of adopting asu 2016-02 , which reduced total self storage revenues by approximately $ 1.7 million as amounts previously recorded to bad debt expense within property operating expenses are now presented as a reduction to self storage rental revenue . we expect total self storage revenues to increase in future periods as the ssgt properties become economically and physically stabilized . managed reit platform revenue managed reit platform revenue for the years ended december 31 , 2019 and 2018 was approximately $ 3.1 million and none , respectively . such revenue consisted of approximately $ 1.5 million of asset management fee revenue , approximately $ 0.7 million of property management fee revenue and approximately $ 0.9 million of other revenue earned pursuant to our management contracts with the managed reits . this revenue was derived from the managed reit platform business , effective june 28 , 2019 , as a result of the self administration transaction . we expect our managed reit platform revenue will grow in future periods as we own the platform for the full fiscal period and as our managed reits acquire additional properties . 50 reimbursable costs from managed reits reimbursable costs from managed reits for the years ended december 31 , 2019 and 2018 were approximately $ 3.3 million and none , respectively . such revenues consist of costs incurred by us as we provide property management and advisory services to the managed reits , which are reimbursed by our managed reits , pursuant to our related contracts with the managed reits . we expect reimbursable costs from managed reits to increase in future periods as we own the platform for the full fiscal period and as our managed reits acquire additional properties . property operating expenses property operating expenses for the years ended december 31 , 2019 and 2018 were approximately $ 35.7 million ( or 34.6 % of self storage revenue ) and $ 25.2 million ( or 31.4 % of self storage revenue ) , respectively . property operating expenses includes the costs to operate our facilities including payroll expense , utilities , insurance , real estate taxes , and marketing . the increase in property operating expenses of approximately $ 10.5 million , is primarily attributable to the 28 operating self storage facilities acquired in january 2019 and one operating property acquired in july 2019 in connection with the ssgt mergers ( approximately $ 9.4 million ) , an increase of approximately $ 0.5 million related to increased compensation expense as a result of the self administration transaction , and an increase in same-store operating expenses of approximately $ 1.6 million , primarily attributable to repairs and maintenance , and property taxes , partially offset by the impact of adopting asu 2016-02 , which reduced 2019 same store property operating expenses by approximately $ 1.2 million . we expect property operating expenses to decrease as a percentage of revenue as overall occupancy grows and therefore revenues increases , particularly in the ssgt properties . property operating expenses – affiliates property operating expenses – affiliates for the years ended december 31 , 2019 and 2018 were approximately $ 6.6 million and $ 10.3 million , respectively . property operating expenses – affiliates includes property management fees and asset management fees . the decrease in property operating expenses – affiliates of approximately $ 3.6 million is primarily attributable to the self administration transaction , offset by costs related to the 28 operating self storage facilities acquired in january 2019 in connection with the ssgt mergers . as a result of the self administration transaction , we no longer incur such expenses . managed reit platform expenses managed reit platform expenses for the years ended december 31 , 2019 and 2018 were approximately $ 2.7 million and none , respectively . such expenses primarily consisted of expenses related to the administrative services agreement ( as defined in note 4 , self administration transaction , of the notes to the consolidated financial statements contained in this report ) , and other non-reimbursable costs associated with the operation of the managed reit platform we acquired on june 28 , 2019. we expect managed reit platform expenses to increase in future periods as we own the platform for the full fiscal period and , to a lesser extent , as our managed reits acquire additional properties . reimbursable costs from managed reits reimbursable costs from managed reits for the years ended december 31 , 2019 and 2018 were approximately $ 3.3 million and none , respectively . such expenses consist of costs incurred by us as we provide property management and advisory services to the managed reits , which are reimbursed by our managed reits , pursuant to our related contracts with the managed reits . we expect reimbursable costs from managed reits to increase in future periods as we own the platform for the full fiscal period and as our managed reits acquire additional properties . general and administrative expenses general and administrative expenses for the years ended december 31 , 2019 and 2018 were approximately $ 10.5 million and $ 4.8 million , respectively . such expenses have historically consisted primarily of legal expenses ,
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | net loss on extinguishment of debt net loss on extinguishment of debt for the years ended december 31 , 2019 and 2018 was approximately $ 2.6 million and none , respectively . the increase in net loss on debt extinguishment is primarily attributable to prepayment penalties related to the early pay off of the raleigh/myrtle beach promissory note , and the write-off of unamortized debt issuance costs on loans that were paid off in connection with the ssgt mergers and the loans that were paid off in connection with the issuance of series a convertible preferred stock . gain resulting from acquisition of unconsolidated affiliates gain resulting from acquisition of unconsolidated affiliates for the years ended december 31 , 2019 and 2018 was approximately $ 8.0 million and none , respectively . the gain was related to our remeasurement to fair value of the tenant programs joint ventures upon our acquisition of 100 % of such entities in the self administration transaction . 52 gain on sale of real estate gain on sale of real estate for the years ended december 31 , 2019 and 2018 was approximately $ 3.9 million and none , respectively . the gain was related to the october 18 , 2019 sale of a self storage facility we owned in san antonio , texas ( the “ san antonio ii property ” ) . other other for the years ended december 31 , 2019 and 2018 represented net expenses of approximately $ 0.6 million and $ 0.7 million , respectively . other consists primarily of state and federal tax expense , accretion of deferred tax liabilities , foreign currency fluctuations , and changes in value related to our foreign currency and interest rate hedges not designated for hedge accounting .
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on june 17 , 2011 , in response to a request from the alliance for telecommunications industry solutions , or atis , the north american organizational partner for 3gpp , we also agreed to make available a non-exclusive patent license to 3gpp members desiring to implement the technical specifications identified by us , as set forth in the updated licensing declaration under atis ' ipr policy . we believe that we are positioned to license our essential security patents to 3gpp members as they move into 4g . we intend to license our patent portfolio , technology and software , including our secure domain name registry service , to domain infrastructure providers , communication service providers as well as to system integrators . we believe that the market opportunity for our software and technology solutions is large and expanding as secure domain names are now an integral part of securing the next generation 4g/lte wireless networks . we also believe that all 4g mobile devices will require unique secure domain names and become part of a secure domain name registry . our software and technology solutions provide the security platform required by next-generation internet-based applications such as instant messaging , or im , voice over internet protocol , or voip , mobile services , streaming video , file transfer and remote desktop . our technology generates secure connections on a “ zero-click ” or “ single-click ” basis , significantly simplifying the deployment of secure real-time communication solutions by eliminating the need for end-users to enter any encryption information . in connection with the settlement of our lawsuit against microsoft corporation in 2010 , microsoft became our first licensee . pursuant to the settlement and license agreement between us and microsoft , microsoft paid us $ 200 million , which has been recognized as gain on settlement and microsoft was granted a worldwide , irrevocable , nonexclusive , non-sublicenseable fully paid up license for our patents for microsoft products . we intend to seek further license of our technology , including our gabriel connection technology to enterprise customers , developers and original equipment manufacturers , or oems , of chips , servers , smart phones , tablets , e-readers , laptops , net books and other devices , within the ip-telephony , mobility , fixed-mobile convergence and unified communications markets including 4g/lte . our employees include the core development team behind our patent portfolio , technology and software . this team has worked together for over ten years and is the same team that invented and developed this technology while working at science application international corporation , or saic . saic is a fortune 500® scientific , engineering and technology applications company that uses its deep domain knowledge to solve problems of vital importance to the nation and the world , in national security , energy and the environment , critical infrastructure and health . the team has continued its research and development work started at saic and expanded the set of patents we acquired in 2006 from saic into a larger portfolio with 46 issued u.s. and foreign patents and numerous pending u.s. and foreign patent applications . this portfolio now serves as the foundation of our licensing business and planned service offerings and is expected to generate the majority of our future revenue in license fees and royalties . we intend to continue our research and development efforts to further strengthen and expand our patent portfolio . please see item 7 – management 's discussion and analysis of financial condition and results of operations – operations – research and development expenses for a description of our research and development expenses for the past three fiscal years . we intend to continue using an outsourced and leveraged model to maintain efficiency and manage costs as we grow our licensing business by offering incentives to early licensing targets or asserting our rights for use of our patents . we also intend to expand our design pilot in participation with leading 4g/lte companies ( domain infrastructure providers , chipset manufacturers , service providers , and others ) and build our secure domain name registry . 21 index developments in the year ended december 31 , 2011 litigation on january 12 , 2011 , we initiated a lawsuit by filing a complaint against siemens and mitel in the united states district court for the eastern district of texas , tyler division , pursuant to which we allege that these companies infringe two of our patents . on february 4 , 2011 , we amended our original complaint , filed on august 11 , 2010 , against aastra , apple , cisco and nec in the united states district court for the eastern district of texas , tyler division , to assert u.s. patent no . 7,418,504 against apple and aastra . on april 5 , 2011 , we again amended our complaint against aastra , apple , cisco and nec in the united states district court for the eastern district of texas , tyler division , to include apple 's ipad 2 in the list of apple products that are accused of infringing our patents . we also asserted our newly-issued patent , u.s. patent no . 7,921,211 against all of the defendants in that lawsuit . also on april 5 , 2011 , we amended our original complaint , filed on january 12 , 2011 , against siemens and mitel in the united states district court for the eastern district of texas , tyler division , to assert our newly-issued patent , u.s. patent no . 7,921,211 against all of the defendants in that lawsuit . story_separator_special_tag in addition , we record stock and options granted to non-employees at fair value of the consideration received or the fair value of the equity investments issued as they vest over the performance period . fair value of financial instruments fair value is the price that would result from an orderly transaction between market participants at the measurement date . a fair value hierarchy prioritizes the inputs used to measure fair value . the hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities ( level 1 measurement ) and the lowest priority to unobservable inputs ( level 3 measurement ) . level 2 measurements utilize observable inputs in markets other than active markets . our financial instruments are stated at amounts that equal , or are intended to approximate , fair value . when we approximate fair value , we utilize market data or assumptions that we believe market participants would use in pricing the financial instrument , including assumptions about risk and inputs to the valuation technique . we use quoted valuation techniques , primarily the income and market approach that maximize the use of observable inputs and minimize the use of unobservable inputs for recurring fair value measurements . 24 index new accounting pronouncements in may 2011 , the fasb issued a new accounting standard update , which amends the fair value measurement guidance and includes some enhanced disclosure requirements . the most significant change in disclosures is an expansion of the information required for level 3 measurements based on unobservable inputs . the standard is effective for fiscal years beginning after december 15 , 2011. the adoption will not have a material impact on our consolidated financial statements and disclosures . in june 2011 , the fasb issued an amendment to an existing accounting standard which requires companies to present net income and other comprehensive income in one continuous statement or in two separate , but consecutive , statements . in addition , in december 2011 , the fasb issued an amendment to an existing accounting standard which defers the requirement to present components of reclassifications of other comprehensive income on the face of the income statement . we will adopt this standard in the first quarter of 2012. in september 2011 , the fasb issued an amendment to an existing accounting standard , which provides entities an option to perform a qualitative assessment to determine whether further impairment testing on goodwill is necessary . specifically , an entity has the option to first assess qualitative factors to determine whether it is necessary to perform the current two-step test . if an entity believes , as a result of its qualitative assessment , that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount , the quantitative impairment test is required . otherwise , no further testing is required . this standard is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after december 15 , 2011. the adoption will not have a material impact on our consolidated financial statements . 25 index operations revenue - royalties revenue generated for the twelve months ended december 31 , 2011 was approximately $ 20 compared to $ 68 for the twelve months ended december 31 , 2010 and $ 26 for the twelve months ended december 31 , 2009. our revenue in 2011 , 2010 and 2009 , was solely limited to the royalties earned under our single license agreement through our japanese subsidiary . we expect the revenue from this license will continue to be insignificant in the future . we do not intend to seek additional licenses or other revenue through our japanese subsidiary . gain on settlement in june 2010 , we received $ 200,000 from microsoft corporation related to a licensing agreement and originally classified it as revenue . upon further analysis , we determined that we could not practically and objectively separate any settlement portion from the revenue element as discussed under the guidance of u.s. gaap accounting standards codification topic 605 : revenue recognition , or asc topic 605. as a result , we reclassified this amount in our 2010 financial statements to present it as a gain on settlement . this reclassification had no impact on our net income , financial position or cash flows for any period . we did not receive a gain on settlement for the twelve months ended december 31 , 2011 or 2009 , respectively . royalty expense there was no royalty expense for the year ended december 31 , 2011 , compared to $ 59,207 for the year ended december 31 , 2010 , and zero for the year ended december 31 , 2009. under our agreements with saic , we were obligated to pay saic 35 % of the proceeds from the settlement of litigation with microsoft after reduction for costs , including legal fees and expenses , incurred by us and saic in connection with the microsoft litigation . research and development expenses research and development costs include expenses paid to outside development consultants and compensation-related expenses for our engineering staff . research and development costs are expensed as incurred . our research and development expenses for the year ended december 31 , 2011 was $ 1,464 compared to $ 2,412 for the year ended december 31 , 2010 and $ 864 for the year ended december 31 , 2009. the decrease in 2011 was primarily due to the decrease in bonuses paid in 2011 compared to 2010. the increase in 2010 as compared to 2009 , was primarily due to the increase in wages and medical costs and bonuses paid to our research and development staff . selling , general and administrative expenses selling , general and administrative expenses include compensation expense for management and administrative personnel , as well as expenses for outside legal , accounting , and consulting services . our selling
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources for the year ended december 31 , 2011 , our cash and cash equivalents totaled $ 49,482 and our short-term investments totaled $ 14,438 compared to $ 34,635 and $ 43,457 , respectively , for the year ended december 31 , 2010 and $ 2,011 and zero , respectively , as of december 31 , 2009. we recognized an unrealized loss on our investments of $ 4 for the year ended december 31 , 2011 compared to $ 984 for the year ended december 31 , 2010 and no gain or loss for the twelve months ended december 31 , 2009 , as we did not have any investments available for sale as of december 31 , 2009. we have determined that this loss in 2011 and 2010 is temporary because the fair value of our investment securities is below the carrying value due to the changes in interest rates and we anticipate that this loss will be reversed over the securities remaining lives . 26 index before entering into the microsoft settlement , we allocated a large amount of cash to legal fees and other expenses associated with the microsoft litigation . we expect that our cash and cash equivalents as of december 31 , 2011 , will be sufficient to fund our operations and provide working capital for general corporate purposes and legal expenses includingthe expenses for our ongoing complaints against aastra , apple , cisco , nec , siemens , mitel and avaya in the united states district court of the eastern district of texas , tyler division , as well as the complaint with the u.s. international trade commission , for at least the next 36 months .
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on september 13 , 2016 , the company entered into an asset purchase agreement with extreme networks , inc. to divest of its wireless lan ( “ wlan ” ) business ( “ divestiture group ” ) . wlan operating results are reported in the enterprise segment through the closing date of the wlan divestiture of october 28 , 2016. see note 3 business combinations and divestitures for additional information . segments the company 's operations consist of two reportable segments : legacy zebra and enterprise . legacy zebra the legacy zebra segment is an industry leader in barcode printing and asset tracking technologies . its major product lines include barcode and card printers , location solutions , supplies , and services . industries served include retail , transportation and logistics , manufacturing , healthcare , and other end markets within the following regions : north america ; europe , middle east , and africa ; asia-pacific ; and latin america . enterprise the enterprise segment is an industry leader in automatic information and data capture solutions . its major product lines include mobile computing , data capture , rfid , and services . industries served include retail , transportation and logistics , manufacturing , healthcare , and other end markets within the following regions : north america ; europe , middle east , and africa ; asia-pacific ; and latin america . geographic information . for the year ended december 31 , 2016 , the company recorded $ 3.6 billion of net sales in its consolidated statements of operations , of which approximately 48.7 % were attributable to north america ; approximately 31.8 % were attributable to europe , middle east , and africa ( “ emea ” ) ; and other foreign locations accounted for the remaining 19.5 % . net sales attributable from each region are relatively consistent with the prior year period . 26 results of operations : year ended 2016 versus 2015 and year ended 2015 versus 2014 consolidated results of operations ( amounts in millions , except percentages ) replace_table_token_4_th net sales by product category were as follows ( amounts in millions , except percentages ) : replace_table_token_5_th net sales to customers by geographic region were as follows ( in millions , except percentages ) : replace_table_token_6_th operating expenses are summarized below ( in millions , except percentages ) : replace_table_token_7_th 27 the company 's non-operating income and expense items are summarized in the following tables ( in millions , except percentages ) : replace_table_token_8_th ( 1 ) the businesses included in our enterprise segment were acquired as part of the acquisition . the consolidated results for the year ended december 31 , 2014 include only two months ( november and december 2014 ) of the enterprise segment . the increase in net sales , gross profit , operating expenses and operating income , for the year ended december 31 , 2014 was primarily related to the acquisition . 2016 compared to 2015 net sales decreased by $ 76 million or 2.1 % compared with the prior year period . the decline in net sales is due to lower hardware sales in north america , emea , and latin america , including the unfavorable impact of foreign currency changes , partially offset by higher hardware sales in asia-pacific . the decline in hardware sales is largely attributable to lower sales of barcode printer , data capture , wireless lan products , and location solutions . on a constant currency basis and excluding purchase accounting adjustments , overall net sales declined approximately 1 % compared to the prior year period , reflecting growth of approximately 4 % in asia-pacific , offset by declines of approximately 2 % , 1 % , and 3 % in north america , emea , and latin america , respectively . gross margin as a percent of sales was 45.9 % compared to the prior year period of 45.0 % . this improvement in gross margin reflects an increase in the enterprise segment gross margin primarily due to lower services and hardware product costs . legacy zebra segment gross margin decreased primarily due to lower sales demand and the impact of incentive programs , including the concessions to distributors of printer products imported into china , partially offset by product cost improvements . operating expenses for the year ended december 31 , 2016 and 2015 , were $ 1.6 billion , or 43.7 % and 44.0 % of net sales , respectively . the reduction in operating expenses as a percentage of net sales reflects the company 's continued focus on improving operating efficiency and controlling expenses . selling and marketing expenses were lower compared to the prior year due to the full-year impact of staff reductions implemented in 2015 and lower discretionary expenses and promotional spending . the decrease in research and development costs was primarily due to a reduction in headcount and other third-party resources , the impact from the divestiture of the wireless lan business , and shifting of headcount to lower cost engineering locations . the increase in general and administrative costs was primarily due to higher it related expenses , including increased support and maintenance costs for it infrastructure and business systems as we exit transition services agreements with motorola solutions , and increased legal fees and litigation related expenses . the decrease in amortization of intangibles was due to impairment charges taken in the current year along with other intangible assets becoming fully amortized . impairment of goodwill and other intangibles of $ 62 million was recorded during the third quarter related to the wireless lan business divestiture . the company has made significant progress on its integration activities associated with the acquisition , including exiting many transition services agreements with motorola solutions . story_separator_special_tag the refinancing amendment lowered the index rate spread for libor loans from libor + 400 bp to libor + 325 bp . during the second quarter of 2016 , the company recorded a one-time $ 2.7 million expense , primarily related to costs incurred with third parties for arranger , legal and other services and the loss incurred on the extinguished debt . these expenses are reflected as non-operating expenses within the consolidated statement of operations . additionally , the company paid $ 4.9 million to the creditors in exchange for the modification and reported it as debt discount which is being amortizing over the life of the modified debt using the interest method . borrowings under the modified term loan bear interest at a variable rate subject to a floor of 4.00 % . on december 6 , 2016 , the company entered into the second amendment to our existing credit agreement dated as of october 27 , 2014 ( the “ refinancing amendment 2 ” ) . the refinancing amendment lowered the index rate spread for libor loans from libor + 325 bp to libor + 250 bp . as a result of the december 6 , 2016 refinancing transaction , the company recorded a one-time $ 1.7 million expense , primarily related to costs incurred with third parties for arranger , legal and other services and the loss incurred on the modified debt . the company had no costs due to creditors associated with fees for the modification . as of december 31 , 2016 , the term loan interest rate was 3.45 % . interest payments are payable quarterly . the company has entered into interest rate swaps to manage interest rate risk on its long-term debt . see note 8 derivative instruments for further details . the credit agreement requires the company to prepay the term loan and revolving credit facility , under certain circumstances or transactions defined in the credit agreement . also , the company may voluntarily prepay its obligations under the term loan at any time in whole or in part , without premium or penalty . the company has made such optional principal prepayments of $ 382 million in 2016. through february 2017 , the company made an additional optional principal prepayment 33 of $ 20 million . unless satisfied by further optional prepayments , the company is required to make a scheduled principal payment of $ 1.6 billion on october 27 , 2021. the revolving credit facility is available for working capital and other general corporate purposes including letters of credit . the amount ( including letters of credit ) shall not exceed $ 250 million . as of december 31 , 2016 , the company had established letters of credit totaling $ 4 million , which reduced funds available for other borrowings under the agreement to $ 246 million . the revolving credit facility will mature and the commitments thereunder will terminate on october 27 , 2019. borrowings under the revolving credit facility bear interest at a variable rate plus an applicable margin . the applicable margin for borrowings under the revolving credit facility ranges from 2.25 % to 2.75 % depending on the company 's consolidated total secured net leverage ratio , which is evaluated on a quarterly basis . interest payments are payable quarterly . as of december 31 , 2016 , the company did not have any borrowings outstanding against the revolving credit facility . the revolving credit facility contains certain covenants limiting among other things , the ability of the company and its restricted subsidiaries , with certain exceptions as described in the credit agreement , to : ( i ) incur indebtedness , make guarantees or issue certain equity securities ; ( ii ) pay dividends on its capital stock or redeem , repurchase or retire its capital stock ; ( iii ) make certain investments , loans and acquisitions ; ( iv ) sell certain assets or issue capital stock of restricted subsidiaries ; ( v ) create liens or engage in sale-leaseback transactions ; ( vi ) merge , consolidate or transfer or dispose of substantially all of their assets ; ( vii ) engage in certain transactions with affiliates ; ( viii ) alter the business it conducts ; ( ix ) amend , prepay , redeem or purchase subordinated debt ; and ( x ) enter into agreements limiting subsidiary dividends and distributions . the revolving credit facility also requires the company to comply with a financial covenant consisting of a quarterly maximum consolidated total secured net leverage ratio , ( as defined in the credit agreement ) . this test is only required to be performed at the end of the fiscal quarter and when 20 % of the commitments under the revolving credit facility have been drawn and remain outstanding . the term loan and obligations under the revolving credit facility are collateralized by a security interest in substantially all of the company 's assets as defined in the security agreement and guaranteed by its direct and indirect wholly-owned existing and future domestic restricted subsidiaries , subject to certain exceptions . certain domestic subsidiaries of the company ( the “ guarantor subsidiaries ” ) guarantee the notes , the term loan and the revolving credit facility on a senior basis : for the year ended december 31 , 2016 , the non-guarantor subsidiaries would have ( a ) accounted for 45 % of our total revenue and ( b ) held 24 % or $ 1 billion of our total assets and approximately 12 % or $ 0.4 billion of our total liabilities including trade payables but excluding intercompany liabilities . on december 31 , 2016 , the company was in compliance with all covenants . historically , significant portions of our cash inflows were generated by our operations . we currently expect this trend to continue throughout 2017. we believe that our existing cash and investments ,
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources the primary factors that influence our liquidity include , but are not limited to , the amount and timing of our revenues , cash collections from our customers , capital expenditures , repatriation of foreign cash and investments , and acquisitions of third-parties . management believes that our existing capital resources and funds generated from operations are sufficient to meet anticipated capital requirements and service our indebtedness . the following table summarizes our cash flow activities for the years indicated ( in millions ) : replace_table_token_10_th the change in our cash and cash equivalents balance is reflective of the following : 2016 vs. 2015 cash flows from operations increased $ 262 million during 2016 to $ 372 million . this improvement was driven by lower net losses of $ 21 million , which included significant non-cash drivers of a lower deferred income tax benefit of $ 98 million and asset impairment for goodwill , intangibles and other assets of $ 69 million , primarily related to the wireless lan business divestiture . additionally , the company had improved working capital of $ 85 million during 2016. working capital improvements consisted primarily of accounts payable increases due to the company successfully renegotiating longer payment terms with vendors being partially offset by an increase in income tax cash outflows . net cash used in investing activities during 2016 included capital expenditures of $ 77 million compared to $ 122 million in 2015. the decrease consisted primarily of a reduction in integration and real estate related capital expenditures . this was offset somewhat by the sale of the wireless lan business resulting in net cash received of $ 39 million .
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the relatively low level of market interest rates during the five years ended december 31 , 2015 has reduced the spread between interest rates on earning assets and interest bearing liabilities . the company 's net interest margin and net interest income declined as market interest rates on newly originated loans remain below the yields earned on older-dated loans and on the overall loan portfolio . the company has been reducing its exposure to rising interest rates by purchasing shorter-duration investment securities with lower yields than longer-duration securities . the company 's credit quality continued to improve , as nonperforming loans at december 31 , 2015 declined 15.5 percent compared with december 31 , 2014 and net loan losses have also declined from $ 3.0 million in 2014 to $ 1.7 million in 2015. the improvement in credit quality has resulted in management reducing the provision for loan losses to zero in 2015 from $ 2.8 million in 2014 and $ 8.0 million in 2013. management is focused on controlling all noninterest expense levels , particularly due to market interest rate pressure on net interest income . the company reported net income of $ 58.8 million or $ 2.30 diluted earnings per common share for the year ended december 31 , 2015 compared with net income of $ 60.6 million or $ 2.32 diluted earnings per common share for the year ended december 31 , 2014 and net income of $ 67.2 million or $ 2.50 diluted earnings per common share for the year ended december 31 , 2013 . - 19 - components of net income replace_table_token_5_th ( 1 ) fully taxable equivalent ( fte ) comparing 2015 with 2014 , net income decreased $ 1.9 million or 3.1 % , primarily due to lower net interest and loan fee income ( fte ) and lower noninterest income , partially offset by decreases in loan loss provision , noninterest expense and income tax provision ( fte ) . the lower net interest and loan fee income ( fte ) was primarily caused by a lower average volume of loans and lower yields on interest-earning assets , partially offset by higher average balances of investments and lower average balances of higher-costing interest-bearing liabilities . the provision for loan losses was reduced , reflecting management 's evaluation of losses inherent in the loan portfolio ; net loan losses and nonperforming loan volumes have declined relative to earlier periods . lower noninterest income was mostly attributable to lower merchant processing service fees and lower service charges on deposit accounts . noninterest expense decreased primarily due to reduced personnel costs and other operational expenses . comparing 2014 with 2013 , net income decreased $ 6.5 million primarily due to lower net interest and fee income ( fte ) and lower noninterest income , partially offset by decreases in the provision for loan losses , noninterest expense and income tax provision ( fte ) . the lower net interest and fee income ( fte ) was primarily caused by a lower average volume of loans and lower yields on interest earning assets , partially offset by higher average balances of investments and lower average balances of higher-costing interest-bearing liabilities . the provision for loan losses was reduced , reflecting management 's evaluation of losses inherent in the loan portfolio . lower noninterest income was mostly attributable to lower merchant processing service fees and lower service charges on deposit accounts . noninterest expense decreased mostly due to reduced oreo expense net of disposition gains , lower personnel costs and other operational expenses . net interest and loan fee income ( fte ) the company 's primary source of revenue is net interest income , or the difference between interest income earned on loans and investment securities and interest expense paid on interest-bearing deposits and other borrowings . components of net interest and loan fee income ( fte ) replace_table_token_6_th ( 1 ) fully taxable equivalent ( fte ) - 20 - comparing 2015 with 2014 , net interest and fee income ( fte ) decreased $ 4.4 million or 2.9 % primarily due to a lower average volume of loans ( down $ 155 million ) and lower yields on interest-earning assets ( fte ) ( down 37 basis points “ bp ” ) , partially offset by higher average balances of investments ( up $ 436 million ) and lower average balances of higher-costing interest-bearing liabilities . comparing 2014 with 2013 , net interest and fee income ( fte ) decreased $ 15.1 million or 9.0 % primarily due to a lower average volume of loans ( down $ 182 million ) and lower yields on interest-earning assets ( fte ) ( down 41 basis points “ bp ” ) , partially offset by higher average balances of investments ( up $ 206 million ) and lower average balances of higher-costing interest-bearing liabilities . loan volumes have declined due to problem loan workout activities ( such as chargeoffs , collateral repossessions and principal payments ) , particularly with purchased loans , and reduced volumes of loan originations . in management 's opinion , current levels of competitive loan pricing do not provide adequate forward earnings potential . as a result , the company has not currently taken an aggressive posture relative to loan portfolio growth . management has maintained relatively stable interest-earning asset volumes by increasing investment securities as loan volumes have declined . yields on interest-earning assets have declined due to relatively low interest rates prevailing in the market . the net interest margin ( fte ) was 3.36 % in 2015 , 3.70 % in 2014 and 4.08 % in 2013. during the three years ended december 31 , 2015 , the net interest margin ( fte ) was affected by declining market interest rates . the volume of older-dated higher-yielding loans declined due to principal maturities and paydowns . newly originated loans have lower yields . story_separator_special_tag loan portfolio the company originates loans with the intent to hold such assets until principal is repaid . management follows written loan underwriting policies and procedures which are approved by the bank 's board of directors . loans are underwritten following approved underwriting standards and lending authorities within a formalized organizational structure . the board of directors also approves independent real estate appraisers to be used in obtaining estimated values for real property serving as loan collateral . prevailing economic trends and conditions are also taken into consideration in loan underwriting practices . all loan applications must be for clearly defined legitimate purposes with a determinable primary source of repayment , and as appropriate , secondary sources of repayment . all loans are supported by appropriate documentation such as current financial statements , tax returns , credit reports , collateral information , guarantor asset verification , title reports , appraisals , and other relevant documentation . commercial loans represent term loans used to acquire durable business assets or revolving lines of credit used to finance working capital . underwriting practices evaluate each borrower 's cash flow as the principal source of loan repayment . commercial loans are generally secured by the borrower 's business assets as a secondary source of repayment . commercial loans are evaluated for credit-worthiness based on prior loan performance , borrower financial information including cash flow , borrower net worth and aggregate debt . commercial real estate loans represent term loans used to acquire real estate to be operated by the borrower in a commercial capacity . underwriting practices evaluate each borrower 's global cash flow as the principal source of loan repayment , independent appraisal of value of the property , and other relevant factors . commercial real estate loans are generally secured by a first lien on the property as a secondary source of repayment . real estate construction loans represent the financing of real estate development . loan principal disbursements are controlled through the use of project budgets , and disbursements are approved based on construction progress , which is validated by project site inspections . the real estate serves as collateral , secured by a first lien position on the property . residential real estate loans generally represent first lien mortgages used by the borrower to purchase or refinance a principal residence . for interest-rate risk purposes , the company offers only fully-amortizing , adjustable-rate mortgages . in underwriting first lien mortgages , the company evaluates each borrower 's ability to repay the loan , an independent appraisal of the value of the property , and other relevant factors . the company does not offer riskier mortgage products , such as non-amortizing “ interest-only ” mortgages and “ negative amortization ” mortgages . for loans secured by real estate , the bank requires title insurance to insure the status of its lien and each borrower is obligated to insure the real estate collateral , naming the company as loss payee , in an amount sufficient to repay the principal amount outstanding in the event of a property casualty loss . - 33 - consumer installment and other loans are predominantly comprised of indirect automobile loans with underwriting based on credit history and scores , personal income , debt service capacity , and collateral values . for management purposes , the company segregates its loan portfolio into three segments . loans originated by the company following its loan underwriting policies and procedures are separated from loans purchased from the fdic . loan volumes have declined due to problem loan workout activities , particularly with purchased loans , and reduced volumes of loan originations . in management 's opinion , current levels of competitive loan pricing do not provide adequate forward earnings potential . as a result , the company has not currently taken an aggressive posture relative to loan portfolio growth . the following table shows the composition of the loan portfolio of the company by type of loan and type of borrower , on the dates indicated : loan portfolio replace_table_token_22_th the following table shows the maturity distribution and interest rate sensitivity of commercial , commercial real estate , and construction loans at december 31 , 2015. balances exclude residential real estate loans and consumer loans totaling $ 509.2 million . these types of loans are typically paid in monthly installments over a number of years . loan maturity distribution replace_table_token_23_th commitments and letters of credit the company issues formal commitments on lines of credit to well-established and financially responsible commercial enterprises . such commitments can be either secured or unsecured and are typically in the form of revolving lines of credit for seasonal working capital needs . occasionally , such commitments are in the form of letters of credit to facilitate the customers ' particular business transactions . commitment fees are generally charged for commitments and letters of credit . commitments on lines of credit and letters of credit typically mature within one year . for further information , see the accompanying notes to the consolidated financial statements . loan portfolio credit risk the company extends loans to commercial and consumer customers which expose the company to the risk borrowers will default , causing loan losses . the company 's lending activities are exposed to various qualitative risks . all loan segments are exposed to risks inherent in the economy and market conditions . significant risk characteristics related to the commercial loan segment include the borrowers ' business performance and financial condition , and the value of collateral for secured loans . significant risk characteristics related to the commercial real estate segment include the borrowers ' business performance and the value of properties collateralizing the loans . significant risk characteristics related to the construction loan segment include the borrowers ' performance in successfully developing the real estate into the intended purpose and the value of the property collateralizing the loans . significant risk characteristics related to the residential real estate segment
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | capital resources the company has historically generated high levels of earnings , which provides a means of accumulating capital . the company 's net income as a percentage of average shareholders ' equity ( “ return on equity ” or “ roe ” ) has been 11.3 % in 2015 , 11.6 % in 2014 and 12.5 % in 2013. the company also raises capital as employees exercise stock options . capital raised through the exercise of stock options was $ 5 million in 2015 compared with $ 12 million in 2014 and $ 21 million in 2013. the company paid common dividends totaling $ 39 million in 2015 , $ 40 million in 2014 and $ 40 million in 2013 , which represent dividends per common share of $ 1.53 , $ 1.52 and $ 1.49 , respectively . the company 's earnings have historically exceeded dividends paid to shareholders . the amount of earnings in excess of dividends provides the company resources to finance growth and maintain appropriate levels of shareholders ' equity . in the absence of profitable growth opportunities , the company has repurchased and retired its common stock as another means to return earnings to shareholders .
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initiatives in furtherance of this strategy include the april 2013 bluegreen merger and the currently proposed merger with bbx capital , as well as our investment with bbx capital in renin , in each case as described in further detail below . additionally , we may invest in operating businesses and real estate joint ventures for the development of residential and commercial real estate projects , including those in which our affiliates may participate . in furtherance of this goal , we expect to evaluate various financing transactions , including debt or equity financings as well as other alternative sources of new capital . bfc 's investments or acquisitions , and the business and investment strategies of bfc 's subsidiaries , may not prove to be successful or even if successful may not initially generate income , or may generate income on an irregular basis and may involve a long term investment , causing our results of operations to vary significantly on a quarterly basis . the following events had a significant financial impact on bfc during 2013 : · on april 2 , 2013 , woodbridge acquired all of the shares of bluegreen 's common stock not previously owned by woodbridge in a cash merger transaction . the aggregate merger consideration was approximately $ 149.2 million . bbx capital funded $ 60.0 million of the merger consideration through its investment in woodbridge . bbx capital also issued an $ 11.75 million promissory note in woodbridge 's favour . in exchange for its $ 71.75 million investment , bbx capital received a 46 % equity interest in woodbridge . as a result , woodbridge is currently owned 54 % by bfc and 46 % by bbx . · on october 30 , 2013 , renin holdings , llc , a newly formed joint venture entity currently beneficially owned 81 % by bbx and 19 % by bfc , through newly formed acquisition subsidiaries , a cquired substantially all of 70 the assets of renin corp. and its subsidiaries , manufacturers of interior closet doors , wall décor , hardware and fabricated glass products , for approximately $ 12.8 million in cash , net of $ 1.7 million which was distributed to renin holdings , llc during the first quarter of 2014 following finalization of the working capital adjustment and indemnification obligations of renin corp. and its subsidiaries under the terms of the purchase agreement . · on december 10 , 2013 , a wholly-owned subsidiary of bbx capital acquired all of the outstanding common shares and membership interests in hoffman 's and its subsidiaries , boca bons and good fortunes , for $ 2.5 million . hoffman 's is a manufacturer of gourmet chocolates , with four retail locations throughout south florida . gaap requires that bfc consolidate the financial results of the entities in which it has controlling interest . as a consequence , the assets and liabilities of all such entities , including bbx capital , woodbridge , and bluegreen , are presented on a consolidated basis in bfc 's financial statements . however , except as otherwise noted , the debts and obligations of the consolidated entities are not direct obligations of bfc and are non-recourse to bfc . similarly , the assets of those entities are not available to bfc absent a dividend or distribution from those entities . the recognition by bfc of income from controlled entities is determined based on the total percent of economic ownership in those entities , as described above . we currently report the results of our business activities through four segments : real estate operations ; bluegreen resorts ; bbx ; and far . discontinued operations include bankatlantic 's community banking , investments , tax certificates , and capital services components , bluegreen communities , core 's commercial leasing projects , and cypress creek holdings . see note 3 to the consolidated financial statements included in item 8 of this report for additional information regarding discontinued operations . recent events proposed bfc-bbx merger on may 7 , 2013 , bfc , bbx merger sub , llc , a wholly-owned acquisition subsidiary of bfc ( “ bbx merger sub ” ) , and bbx capital entered into a merger agreement pursuant to which , subject to the terms and conditions of the agreement , bbx capital will merge with and into bbx merger sub , with bbx merger sub continuing as the surviving company and a wholly-owned subsidiary of bfc . under the terms of the m erger a greement , which was approved by a special committee comprised of bbx capital 's independent directors as well as the full boards of directors of both bfc and bbx capital , if the merger is consummated , bbx capital 's shareholders ( other than bfc and shareholders of bbx capital who exercise and perfect their appraisal rights in accordance with florida law ) will be entitled to receive 5.39 shares of bfc 's class a common stock in exchange for each share of bbx capital 's class a common stock that they hold at the effective time of the m erger ( as such exchange ratio may be adjusted in accordance with the terms of the m erger a greement , the “ exchange ratio ” ) . if the merger is consummated , e ach option to acquire shares of bbx capital 's class a common stock that is outstanding at the effective time of the m erger , whether or not then exercisable , will be converted into an option to acquire shares of bfc 's class a common stock and be subject to the same terms and conditions as in effect at the effective time of the m erger , except that the number of shares which may be acquired upon exercise of the option will be multiplied by the exchange ratio and the exercise price of the option will be divided by the exchange ratio . story_separator_special_tag in preparing the financial statements , management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated statements of financial condition and assumptions that affect the recognition of income and expenses on the consolidated statements of operations for the periods presented . on an ongoing basis , management evaluates its estimates , including those that relate to the determination of the allowance for loan losses , the estimated future sales value of inventory , the recognition of revenue , including revenue recognition under the percentage-of-completion method of accounting , the recovery of the carrying value of real estate inventories , the fair value of assets measured at , or compared to , fair value on a non-recurring basis such as assets held for sale , intangible assets and other long-lived assets , the valuation of securities , as well as the determination of other-than-temporary declines in value , the valuation of real estate acquired in connection with foreclosure or in satisfaction of loans , the determination of the fair value of assets and liabilities in the application of the acquisition method of accounting , the estimate of contingent liabilities related to litigation and other claims and assessments , and assumptions used in the valuation of stock based compensation . the accounting policies that we have identified as critical accounting policies are : ( i ) revenue recognition and inventory cost allocation ; ( ii ) the carrying value of completed voi inventory ; ( iii ) the carrying value of vois held for and under 75 development ; ( iv ) allowance for credit and loan losses , including with respect to notes receivable secured by vois ; ( v ) the impairment of long-lived assets , including intangible assets ; and ( vi ) the valuation of bluegreen 's notes receivable which for accounting purposes were treated as having been acquired by bfc during 2009 in connection with our purchase of additional shares of bluegreen 's common stock at that time . management bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ materially from these estimates under different assumptions and conditions . if actual results significantly differ from management 's estimates , our results of operations and financial condition could be materially and adversely impacted . revenue recognition and inventory cost allocation sales of real estate in accordance with the requirements of financial accounting standards board ( “ fasb ” ) accounting standards codification ( “ asc ” ) 970-605 , real estate-revenue recognition , bluegreen recognizes revenue on voi sales when a minimum of 10 % of the sales price has been received in cash ( buyer 's commitment ) , the legal rescission period has expired , collectability of the receivable representing the remainder of the sales price is reasonably assured and bluegreen has completed substantially all of its obligations with respect to any development related to the real estate sold . bluegreen believes that it uses a reasonably reliable methodology to estimate the collectability of the receivables representing the remainder of the sales price of real estate sold . see the further discussion of bluegreen 's policies regarding the estimation of credit losses on bluegreen 's notes receivable below . should bluegreen become unable to reasonably estimate the collectability of its receivables , bluegreen may have to defer the recognition of sales and bluegreen 's results of operations could be negatively impacted . under timeshare accounting rules , the buyer 's minimum cash down payment towards the purchase of bluegreen 's vois is met only if the cash down payment received , reduced by the value of certain incentives provided to the buyer at the time of sale , is at least 10 % of the sales price . if , after consideration of the value of the incentive , the total down payment received from the buyer is less than 10 % of the sales price , the voi sale , and the related cost of sales and direct selling expenses , are deferred until such time that sufficient cash is received from the customer , generally through receipt of mortgage payments . changes to the quantity , type or value of sales incentives that bluegreen provides to buyers of its vois may increase the number of voi sales being deferred or extend the period during which a sale is deferred , which could materially adversely impact bluegreen 's results of operations . in cases where development has not been substantially completed , bluegreen recognizes revenue in accordance with the percentage-of-completion method of accounting . should bluegreen 's estimates of the total anticipated cost of completing projects increase , bluegreen may be required to defer a greater amount of revenue or may be required to defer revenue for a longer period of time than expected , which could materially adversely impact bluegreen 's results of operations . timeshare accounting rules require the use of an industry-specific relative sales value method for relieving voi inventory and recording cost of sales . under the relative sales value method , cost of sales is calculated as a percentage of net sales using a cost-of-sales percentage — the ratio of total estimated development cost to total estimated voi revenue , including the estimated incremental revenue from the resale of repossessed voi inventory , generally as a result of the default of the related receivable . as a result of bluegreen 's sale of substantially all of the assets that comprised bluegreen communities in may 2012 , the revenues of bluegreen communities , including homesite sales , are included within the results of discontinued operations for all
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources bbx capital 's principal sources of liquidity are its cash holdings , funds obtained from scheduled payments on loans and sales of its loans , loan payoffs , sales of real estate held-for-sale , income from income producing real estate and distributions received from woodbridge . the company anticipates funding operating expenses , capital expenditures for the renin and hoffman 's businesses , if required , as well as any additional acquisitions of operating businesses , investments in joint ventures and real estate properties through the company 's principal sources of liquidity . while far is consolidated in the company 's financial statements , the cash held in far and generated from its assets will be used primarily to pay far 's operating expenses and to pay bb & t 's 95 % preferred membership interest and the related priority return and will generally not be available for distribution to bbx capital beyond its 5 % preferred return until such time as bb & t 's preferred membership interest is fully repaid . the balance of bb & t 's preferred membership interest in far was approximately $ 68.5 million at december 31 , 2013. bbx capital held cash of $ 33.0 million at december 31 , 2013. this does not include $ 8.4 million , $ 1.0 million and $ 0.7 million of cash held in far , renin and hoffman 's , respectively . the company had $ 6.2 million of current liabilities as of december 31 , 2013. as of december 31 , 2013 renin could borrow up to $ 2.3 million of additional funds under its credit facility with bluegreen ; however , the bluegreen borrowings are subject to available collateral . the company expects that it will receive dividends from time to time from its 46 % ownership interest in woodbridge .
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the most significant accounting policies followed by fnb are presented in note 1 , “ summary of significant accounting policies ” in the notes to consolidated financial statements , which is included in item 8 of this report . these policies , along with the disclosures presented in the notes to consolidated financial statements , provide information on how we value significant assets and liabilities in the consolidated financial statements , how we determine those values and how we record transactions in the consolidated financial statements . 41 management views critical accounting policies to be those which are highly dependent on subjective or complex judgments , estimates and assumptions , and where changes in those estimates and assumptions could have a significant impact on the consolidated financial statements . management currently views the determination of the allowance for credit losses , accounting for acquired loans , fair value of financial instruments , goodwill and other intangible assets , litigation , income taxes and deferred tax assets to be critical accounting policies . allowance for credit losses the allowance for credit losses addresses credit losses inherent in the existing loan portfolio and in unfunded loan commitments and standby letters of credit at the balance sheet date , and is presented as a reserve against loans and other liabilities , respectively , on the consolidated balance sheets . management 's assessment of the appropriateness of the allowance for credit losses considers individual impaired loans , pools of homogeneous loans with similar risk characteristics and other risk factors concerning the economic environment . these analyses involve a high degree of judgment in estimating the amount of loss associated with specific impaired loans , including estimating the amount and timing of future cash flows , current fair value of the underlying collateral and other qualitative risk factors that may affect the loan , all of which may be susceptible to significant change . the evaluation of this component of the allowance for credit losses requires considerable judgment in order to reasonably estimate inherent loss exposures . loans with similar risk characteristics are categorized into pools based on loan type and by internal risk rating for commercial loans , or payment performance and credit score for consumer loans . there is considerable judgment involved in setting internal commercial risk ratings , including an evaluation of the borrower 's current financial condition and ability to repay the loan . transition matrices are generated on a monthly basis to determine probabilities of default , while historical loss experience is used to generate loss given default results for the pools . inherent but undetected losses may arise due to uncertainties in economic conditions , delays in obtaining information , including unfavorable information about a borrower 's financial condition , the difficulty in identifying triggering events that correlate to subsequent loss rates and risk factors that have not yet manifested themselves in loss allocation factors . uncertainty surrounding the strength and timing of economic cycles also affects estimates of loss . the historical loss experience used in the transition matrices and historical loss experience analysis may not be representative of actual unrealized losses inherent in the portfolio . management evaluates the impact of various qualitative factors which pose additional risks that may not be adequately addressed in the analyses described above . expected loss rates for each loan category may be adjusted for levels of and trends in loan volumes , net charge-offs , delinquency and non-performing loans . in addition , management takes into consideration the impact of changes to lending policies ; the experience and depth of lending management and staff ; the results of internal loan reviews ; concentrations of credit ; competition , legal and regulatory risk ; market uncertainty and collateral illiquidity ; national and local economic trends ; or any other common risk factor that might affect loss experience across one or more components of the portfolio . economic factors influencing management 's estimate of allowance for credit losses include , but are not limited to , uncertainty of the labor markets , industrial presence , commercial real estate activity and residential real estate values . the determination of this qualitative component of the allowance for credit losses is particularly dependent on the judgment of management . to the extent actual outcomes differ from management estimates , additional provisions for credit losses could be required that may affect our earnings or financial position in future periods . the provision for credit losses section in the results of operations includes a discussion of the factors affecting changes in the allowance for credit losses during the current period . see note 1 , “ summary of significant accounting policies ” and note 6 , “ loans and leases ” in the notes to consolidated financial statements for further information on the allowance for credit losses . accounting for acquired loans all acquired loans are initially measured at fair value at the date of acquisition . the fair value of acquired loans is based on a discounted cash flow methodology that involves assumptions and judgments as to credit risk , default rates , loss severity , collateral values , discount rates , prepayment speeds , prepayment risk and liquidity risk . the measurement of fair value on acquired loans prohibits the carryover or establishment of an allowance for loan losses at acquisition date . acquired loans are considered impaired if there is evidence of credit deterioration since origination and if it is probable at time of acquisition that all contractually required payments will not be collected . the present value of any decreases in expected cash flows after the acquisition date will generally result in an impairment charge recorded as a provision for credit losses . story_separator_special_tag balance sheet highlights total assets were $ 31.4 billion at december 31 , 2017 , compared to $ 21.8 billion at december 31 , 2016 . total stockholders ' equity was $ 4.4 billion at december 31 , 2017 , compared to $ 2.6 billion at december 31 , 2016 . average loans grew 36.8 % for 2017 , compared to 2016 , through continued organic growth and the loans added through the ydkn acquisition . average deposits grew 32.9 % , compared to 2016 , through continued growth and the deposits added through the ydkn acquisition . the ratio of loans to deposits was 93.7 % at december 31 , 2017 , compared to 92.7 % at december 31 , 2016 . asset quality was satisfactory with a delinquency ratio of 0.88 % on the originated portfolio at december 31 , 2017 , compared to 1.04 % at december 31 , 2016 . 46 results of operations year ended december 31 , 2017 compared to year ended december 31 , 2016 net income available to common stockholders for 2017 was $ 191.2 million or $ 0.63 per diluted common share , compared to net income available to common stockholders for 2016 of $ 162.9 million or $ 0.78 per diluted common share . operating earnings per diluted common share ( non-gaap ) was $ 0.93 for 2017 compared to $ 0.90 for 2016 . the results for 2017 included $ 56.5 million , or $ 0.13 per diluted common share , in merger costs and reflect costs and benefits associated with the ydkn acquisition that closed on march 11 , 2017. the results for 2016 included $ 37.4 million , or $ 0.12 per diluted common share , in merger costs and reflect costs and benefits associated with the metr acquisition that closed on february 13 , 2016 , combined with the fifth third branch purchase that closed on april 22 , 2016. average diluted common shares outstanding increased 96.1 million shares , or 46.2 % , to 303.9 million shares for 2017 , primarily as a result of the ydkn acquisition , for which we issued 111.6 million shares . the major categories of the income statement and their respective impact to the increase ( decrease ) in net income are presented below : table 1 replace_table_token_5_th the following table presents selected financial ratios and other relevant data used to analyze our performance . table 2 replace_table_token_6_th ( 1 ) period-end ( 2 ) non-gaap average equity for 2017 reflects the impact of the ydkn acquisition . 47 the following table provides information regarding the average balances and yields earned on interest-earning assets ( non-gaap ) and the average balances and rates paid on interest-bearing liabilities : table 3 replace_table_token_7_th ( 1 ) the average balances and yields earned on securities are based on historical cost . ( 2 ) the interest income amounts are reflected on an fte basis ( non-gaap ) , which adjusts for the tax benefit of income on certain tax-exempt loans and investments using the federal statutory tax rate of 35 % for each period presented . the yield on earning assets and the net interest margin are presented on an fte basis . we believe this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts . ( 3 ) average balances include non-accrual loans . loans and leases consist of average total loans less average unearned income . 48 net interest income in 2017 , net interest income , which comprised 77.0 % of revenue ( net interest income plus non-interest income ) compared to 75.2 % in 2016 , was affected by the general level of interest rates , changes in interest rates , the timing of repricing of assets and liabilities , the shape of the yield curve , the level of non-accrual loans and changes in the amount and mix of interest-earning assets and interest-bearing liabilities . net interest income on an fte basis ( non-gaap ) of $ 865.2 million for 2017 increased $ 242.4 million or 38.9 % from $ 622.8 million for 2016 . average interest earning assets increased $ 6.8 billion or 36.9 % and average interest-bearing liabilities increased $ 5.5 billion or 39.0 % from 2016 , primarily due to our acquisitions and organic growth in loans and deposits . our net interest margin ( non-gaap ) was 3.43 % for 2017 , compared to 3.38 % for 2016 , due to an extended low interest rate environment and a competitive landscape for earning assets , offset by higher purchase accounting accretion and fomc interest rate increases . the tax-equivalent adjustment ( non-gaap ) to net interest income from amounts reported on our financial statements are shown in the preceding table . the following table provides certain information regarding changes in net interest income on an fte basis ( non-gaap ) attributable to changes in the average volumes and yields earned on interest-earning assets and the average volume and rates paid for interest-bearing liabilities for the periods indicated : table 4 replace_table_token_8_th ( 1 ) the amount of change not solely due to rate or volume changes was allocated between the change due to rate and the change due to volume based on the net size of the rate and volume changes . ( 2 ) interest income amounts are reflected on an fte basis ( non-gaap ) which adjusts for the tax benefit of income on certain tax-exempt loans and investments using the federal statutory tax rate of 35.0 % for each period presented . we believe this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts . interest income on an fte basis ( non-gaap ) of $ 999.1 million for 2017 , increased $ 308.9 million or 44.8 % from 2016 , primarily due to increased interest-earning assets ,
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity our goal in liquidity management is to satisfy the cash flow requirements of customers and the operating cash needs of fnb with cost-effective funding . our board of directors has established an asset/liability management policy in order to guide management in achieving and maintaining earnings performance consistent with long-term goals , while maintaining acceptable levels of interest rate risk , a “ well-capitalized ” balance sheet and adequate levels of liquidity . our board of directors has also established a contingency funding policy to guide management in addressing stressed liquidity conditions . these policies designate our asset/liability committee ( alco ) as the body responsible for meeting these objectives . the alco , which is comprised of members of executive management , reviews liquidity on a continuous basis and approves significant changes in strategies that affect balance sheet or cash flow positions . liquidity is centrally managed on a daily basis by our treasury department . fnbpa generates liquidity from its normal business operations . liquidity sources from assets include payments from loans and investments , as well as the ability to securitize , pledge or sell loans , investment securities and other assets . liquidity sources from liabilities are generated primarily through the banking offices of fnbpa in the form of deposits and customer repurchase agreements . fnb also has access to reliable and cost-effective wholesale sources of liquidity . short- and long-term funds can be acquired to help fund normal business operations , as well as to serve as contingency funding in the event that we would be faced with a liquidity crisis . the principal sources of the parent company 's liquidity are its strong existing cash resources plus dividends it receives from its subsidiaries . these dividends may be impacted by the parent 's or its subsidiaries ' capital needs , statutory laws and regulations , corporate policies , contractual restrictions , profitability and other factors .
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the note is for a six-month term and accrues interest at a rate of 10 % per annum . as at september 30 , 2016 the note remained unpaid . the company made the offer and sale in reliance on the exemption from registration afforded by section 4 ( 2 ) of the securities act of 1933 , as amended , as it was a transaction by an issuer not involving a public offering . no commission was paid in connection with the sale of the promissory note . on april 29 , 2016 the company issued an unsecured promissory note in the principal amount of $ 4,700 to adam elmquist to evidence funds loaned by mr. elmquist in order to retire invoices as they came due . the note is for a six month term and accrues interest at a rate of 10 % per annum . as at september 30 , 2016 the note remained unpaid . the company made the offer and sale in reliance on the exemption from registration afforded by section 4 ( 2 ) story_separator_special_tag the following discussion should be read in conjunction with our financial statements and the notes thereto included in this report beginning on page f-1 . the results shown herein are not necessarily indicative of the results to be expected in any future periods . this discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties , such as our plans , objectives , expectations and intentions . actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors . we use words such as “ anticipate , ” “ estimate , ” “ plan , ” “ project , ” “ continuing , ” “ ongoing , ” “ expect , ” “ believe , ” “ intend , ” “ may , ” “ will , ” “ should , ” “ could , ” and similar expressions to identify forward-looking statements . significant accounting policies our discussion and analysis of our results of operations and liquidity and capital resources are based on our financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and disclosure of contingent assets and liabilities . on an ongoing basis , we evaluate our estimates and judgments , including those related to revenue recognition , valuation of intangible assets and investments , share-based payments , income taxes and litigation . we base our estimates on historical and anticipated results and trends and on various other assumptions that we believe are reasonable under the circumstances , including assumptions as to future events . these estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . by their nature , estimates are subject to an inherent degree of uncertainty . actual results that differ from our estimates could have a significant adverse effect on our operating results and financial position . we believe that the significant accounting policies as included in note 1 of the financial statements contained herein and management 's ongoing assumptions may involve a higher degree of judgment and complexity than others . emerging growth company we qualify as an “ emerging growth company ” under the jobs act . as a result , we are permitted to , and intend to , rely on exemptions from certain disclosure requirements . for so long as we are an emerging growth company , we will not be required to : · have an auditor report on our internal controls over financial reporting pursuant to section 404 ( b ) of the sarbanes-oxley act ; · comply with any requirement that may be adopted by the public company accounting oversight board regarding mandatory audit firm rotation or a supplement to the auditor 's report providing additional information about the audit and the financial statements ( i.e . , an auditor discussion and analysis ) ; · submit certain executive compensation matters to shareholder advisory votes , such as “ say-on-pay ” and “ say-on-frequency ; ” and · disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the ceo 's compensation to median employee compensation . in addition , section 107 of the jobs act also provides that an emerging growth company can take advantage of the extended transition period provided in section 7 ( a ) ( 2 ) ( b ) of the securities act for complying with new or revised accounting standards . in other words , an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies . we have elected to take advantage of the benefits of this extended transition period . our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards . we will remain an “ emerging growth company ” for up to five years , or until the earliest of ( i ) the last day of the first fiscal year in which our total annual gross revenues exceed $ 1 billion , ( ii ) the date that we become a “ large accelerated filer ” as defined in rule 12b-2 under the securities exchange act of 1934 , which would occur if the market value of our ordinary shares that is held by non-affiliates exceeds $ 700 million as of the last business day of our most recently completed second fiscal quarter or ( iii ) the date on which we have issued more than $ 1 billion in non-convertible debt during the preceding three year period story_separator_special_tag the note is for a six-month term and accrues interest at a rate of 10 % per annum . as at september 30 , 2016 the note remained unpaid . the company made the offer and sale in reliance on the exemption from registration afforded by section 4 ( 2 ) of the securities act of 1933 , as amended , as it was a transaction by an issuer not involving a public offering . no commission was paid in connection with the sale of the promissory note . on april 29 , 2016 the company issued an unsecured promissory note in the principal amount of $ 4,700 to adam elmquist to evidence funds loaned by mr. elmquist in order to retire invoices as they came due . the note is for a six month term and accrues interest at a rate of 10 % per annum . as at september 30 , 2016 the note remained unpaid . the company made the offer and sale in reliance on the exemption from registration afforded by section 4 ( 2 ) story_separator_special_tag the following discussion should be read in conjunction with our financial statements and the notes thereto included in this report beginning on page f-1 . the results shown herein are not necessarily indicative of the results to be expected in any future periods . this discussion contains forward-looking statements based upon current expectations that involve risks and uncertainties , such as our plans , objectives , expectations and intentions . actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors . we use words such as “ anticipate , ” “ estimate , ” “ plan , ” “ project , ” “ continuing , ” “ ongoing , ” “ expect , ” “ believe , ” “ intend , ” “ may , ” “ will , ” “ should , ” “ could , ” and similar expressions to identify forward-looking statements . significant accounting policies our discussion and analysis of our results of operations and liquidity and capital resources are based on our financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and disclosure of contingent assets and liabilities . on an ongoing basis , we evaluate our estimates and judgments , including those related to revenue recognition , valuation of intangible assets and investments , share-based payments , income taxes and litigation . we base our estimates on historical and anticipated results and trends and on various other assumptions that we believe are reasonable under the circumstances , including assumptions as to future events . these estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . by their nature , estimates are subject to an inherent degree of uncertainty . actual results that differ from our estimates could have a significant adverse effect on our operating results and financial position . we believe that the significant accounting policies as included in note 1 of the financial statements contained herein and management 's ongoing assumptions may involve a higher degree of judgment and complexity than others . emerging growth company we qualify as an “ emerging growth company ” under the jobs act . as a result , we are permitted to , and intend to , rely on exemptions from certain disclosure requirements . for so long as we are an emerging growth company , we will not be required to : · have an auditor report on our internal controls over financial reporting pursuant to section 404 ( b ) of the sarbanes-oxley act ; · comply with any requirement that may be adopted by the public company accounting oversight board regarding mandatory audit firm rotation or a supplement to the auditor 's report providing additional information about the audit and the financial statements ( i.e . , an auditor discussion and analysis ) ; · submit certain executive compensation matters to shareholder advisory votes , such as “ say-on-pay ” and “ say-on-frequency ; ” and · disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the ceo 's compensation to median employee compensation . in addition , section 107 of the jobs act also provides that an emerging growth company can take advantage of the extended transition period provided in section 7 ( a ) ( 2 ) ( b ) of the securities act for complying with new or revised accounting standards . in other words , an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies . we have elected to take advantage of the benefits of this extended transition period . our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards . we will remain an “ emerging growth company ” for up to five years , or until the earliest of ( i ) the last day of the first fiscal year in which our total annual gross revenues exceed $ 1 billion , ( ii ) the date that we become a “ large accelerated filer ” as defined in rule 12b-2 under the securities exchange act of 1934 , which would occur if the market value of our ordinary shares that is held by non-affiliates exceeds $ 700 million as of the last business day of our most recently completed second fiscal quarter or ( iii ) the date on which we have issued more than $ 1 billion in non-convertible debt during the preceding three year period
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources as of september 30 , 2016 we had $ 15,467 in cash and $ 15,488 in total assets , and $ 37,039 in total liabilities as compared to $ nil in cash and $ 262 in total assets , and $ 6,000 in total liabilities as of september 30 , 2015. the company is looking to raise up to $ 100,000 to fund its proposed operations for the next twelve months and has successfully raised a total of $ 24,725 under its s-1 registration statement to date . shortfalls in available funds , should they occur , are expected to be provided by management and other loan and or equity based financing arrangements . there can be no assurance that continued funding will be available on satisfactory terms . for the year ending september 30 , 2016 we used net cash of $ 17,458 in operating activities , compared to net cash provided of $ 4,800 in operating activities duringthe same period in fiscal 2015. during the year ended september 30 , 2016 , net cash of $ 32,925 was provided by financing activities compared to net cash of $ nil during the same period in fiscal 2015. further , net cash of $ 4,800 was used in investing activities during fiscal 2015 with no comparative expenditures in fiscal 2016. off-balance sheet arrangements we have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources that are material to stockholders .
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a discussion regarding results of operations and analysis of financial condition for the year ended december 31 , 2019 , as compared to the year ended december 31 , 2018 , is included in part ii , item 7 , management 's discussion and analysis of financial condition and results of operations to our annual report on form 10-k for the fiscal year ended december 31 , 2019 , which discussion is incorporated herein by reference . acquisition of aclara on february 2 , 2018 the company acquired aclara for approximately $ 1.1 billion . aclara is a leading global provider of smart infrastructure solutions for electric , gas , and water utilities , with advanced metering solutions and grid monitoring sensor technology , as well as leading software enabled installation services . the acquisition extends the utility solutions segment 's capabilities into smart automation technologies , accelerates ongoing innovation efforts to address utility customer demand for data and integrated solutions , and expands the segment 's reach to a broader set of utility customers . for additional information about the aclara acquisition , refer to note 3 — business acquisitions and dispositions in the notes to the consolidated financial statements . hubbell incorporated - form 10-k 21 organizational changes effective january 1 , 2021 the company consolidated the three business groups within its electrical segment , and renamed the segment as hubbell electrical solutions ( `` electrical solutions `` ) . the electrical solutions segment unites businesses with similar operating models , products , and go to market strategies under one operating banner and common leadership to drive synergies and long-term growth opportunities . also effective january 1 , 2021 the company moved its hubbell gas connectors and accessories business , from the electrical solutions segment to the utility solutions segment to create synergies with the existing gas products offered within the utility solutions segment and to better serve its utility customers . the hubbell gas connectors and accessories business represented approximately $ 157.1 million of net sales and $ 19.4 million of operating profit in 2020. the company will report its segment results under this revised reporting structure beginning with the filing of its quarterly report on form 10-q for the first quarter ended march 31 , 2021 . 22 hubbell incorporated - form 10-k impact of the covid-19 pandemic during march 2020 , a global pandemic was declared by the world health organization related to the rapidly growing outbreak of a novel strain of coronavirus ( covid-19 ) , which began to affect the company 's business and operations late in the first quarter of 2020 and became more pronounced during the second quarter of 2020 as foreign and u.s. federal , state and local governments reacted to the public health crisis with mitigation measures , including the shutdown of large portions of the u.s. and global economies . the pandemic continues to significantly affect u.s. and global economic conditions as governments , businesses and individuals react to the covid-19 pandemic and efforts to reopen their respective economies . as of december 31 , 2020 , there continues to be significant uncertainty around the scope , severity , and duration of the pandemic , as well as the breadth and duration of business disruptions related to it and the overall impact on the u.s. and global economies . the extent to which the coronavirus pandemic affects our business , operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict including new information that may emerge concerning the severity of the covid-19 pandemic , additional outbreaks or resurgence of covid-19 , the timing and availability of vaccines and effective treatments and the actions taken to contain it or respond to its health and economic effects . most of our manufacturing operations are currently deemed essential and continue to operate . our top priority has been to take appropriate actions to protect the health and safety of our employees . we have adjusted standard operating procedures within our business operations to ensure the continued safety of those within our locations and continually monitor health guidelines to ensure ongoing compliance and protection of our employees . these procedures include expanded and more frequent cleaning within facilities , implementation of appropriate social distancing programs , shift changes , requiring use of certain personal protective equipment , screening protocols and work from home programs , as applicable . despite these efforts , the covid-19 pandemic continues to pose the risk that our employees , contractors , suppliers , customers and other business partners may be prevented from conducting business activities , partially or completely , for an indefinite period of time , including due to shutdowns that may be requested or mandated by governmental authorities or imposed by our management , or that the pandemic may otherwise interrupt or impair business activities . we have developed action plans for a wide range of scenarios , but given the uncertainty regarding the magnitude and duration of the pandemic 's effects , it is impossible to predict with specificity or quantify the future impact on our business , financial condition and results of operations . in the second quarter of 2020 certain of our manufacturing operations and installation services were temporarily disrupted by shutdowns mandated by government authorities and from actual and potential exposure to covid-19 , negatively affecting sales volume and contributing to operating inefficiencies , such as a decrease in manufacturing cost absorption in the quarter . these temporary disruptions included work stoppages in several of our manufacturing operations in the u.s. , mexico , and the united kingdom . we also experienced a temporary stoppage of certain large meter installation services within our aclara business . story_separator_special_tag as a result , earnings per diluted share in 2020 decreased 12.0 % compared to 2019. adjusted earnings per diluted share in 2020 decreased 6.7 % as compared to 2019. segment results electrical solutions replace_table_token_5_th the following table reconciles our organic net sales to the directly comparable gaap financial measure ( in millions and percentage change ) : replace_table_token_6_th net sales of the electrical solutions segment in 2020 were $ 2.3 billion and decreased by $ 362.1 million , or 13.8 % as compared to 2019. organic net sales in 2020 declined by 13.6 % as compared to the same prior year period due to lower unit volume , primarily driven by the unfavorable effects of the covid-19 pandemic on demand . net sales in 2020 also declined , by less than 1 % from the effect of acquisitions and dispositions , as the decline from the disposal of the haefely business was greater than net sales added by acquisitions . within the segment , the aggregate net sales of our commercial and industrial and construction and energy business groups decreased in 2020 by approximately 14 percentage points as compared to the prior year , primarily due to lower volume driven by the unfavorable impact of the covid-19 pandemic on demand , partially offset by favorable price realization . net sales of our lighting business group in 2020 declined by approximately 14 percentage points as compared to the prior year period due to lower unit volumes also driven by the unfavorable effects of the covid-19 pandemic on demand . within the lighting business group , net sales of commercial and industrial lighting products in 2020 decreased by approximately 22 % compared to the prior year period driven by lower overall market demand , as well as softness in our national accounts . net sales of residential lighting products increased by approximately 6 % in 2020 as compared to the same prior year period due to strength in home center and e-commerce sales , partially offset by weakness in home builder markets in 2020 as compared to the prior year . operating income of the electrical solutions segment in 2020 was $ 234.8 million and decreased approximately 27 % compared to 2019 , while operating margin in 2020 decreased by 180 basis points to 10.4 % . excluding amortization of acquisition-related intangibles , adjusted operating margin decreased by 170 basis points to 11.4 % in 2020 as compared to 2019. the decrease in operating income and operating margin in 2020 is primarily due to lower net sales volume and inefficiencies related to the pandemic and higher stock based compensation expense due to the change in timing of our annual equity grants . these items were partially offset by favorable price realization and material costs , higher savings from our restructuring and related activities , savings from productivity initiatives and lower costs due in part to the impact of compensation actions and other cost reductions associated with the covid-19 pandemic . 28 hubbell incorporated - form 10-k utility solutions replace_table_token_7_th the following table reconciles our organic net sales to the directly comparable gaap financial measure ( in millions and percentage change ) : replace_table_token_8_th net sales in the utility solutions segment in 2020 were $ 1.9 billion , down 2.2 % as compared to 2019 , due to a 3.1 % decline in organic net sales resulting from restrictions associated with the pandemic on project deployments and installations , partially offset by higher end-market demand in the electrical transmission and distribution markets , an increase in storm-related sales as compared to the prior year , and favorable price realization . acquisitions contributed 1.3 % to net sales growth in 2020 and foreign exchange was slightly unfavorable by 0.4 % . within the utility solutions segment , net sales of our power systems business group in 2020 increased by approximately 5 % as compared to the prior year driven by domestic demand in the utility transmission and distribution markets as well as net sales growth from acquisitions and higher storm-related sales as compared to the prior year . net sales of the aclara business group in 2020 decreased by approximately 15 % as compared to the prior year primarily driven by restrictions associated with the pandemic on project deployments and installations . operating income in the utility solutions segment in 2020 increased by 8 % to $ 298.2 million as compared to 2019. operating margin in 2020 increased to 15.5 % as compared to 14.1 % in 2019. excluding amortization of acquisition-related intangibles the adjusted operating margin in 2020 increased by 160 basis points to 18.2 % as compared to the prior year . that increase was primarily driven by savings from our productivity initiatives and lower cost inflation , due in part to the impact of compensation actions and other cost reductions associated with the covid-19 pandemic , favorable price realization , higher savings from restructuring programs and lower restructuring and related costs , and favorable net sales mix . those favorable items were partially offset by the impact of lower volume , covid-19 pandemic related inefficiencies and higher stock based compensation expense due to the change in timing of our annual equity grants . hubbell incorporated - form 10-k 29 financial condition , liquidity and capital resources cash flow replace_table_token_9_th the following table reconciles our cash flows from operating activities to free cash flows for 2020 , 2019 and 2018 : replace_table_token_10_th free cash flow is a non-gaap measure that we define as cash flow from operations less capital expenditures . management believes that free cash flow provides useful information regarding hubbell 's ability to generate cash without reliance on external financing . in addition , management uses free cash flow to evaluate the resources available for investments in the business , strategic acquisitions and further strengthening the balance sheet . 2020 compared to 2019 cash provided by operating activities in 2020 was $ 648.0 million compared to cash provided by
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | debt to capital at december 31 , 2020 and 2019 , the company had $ 1,436.9 million and $ 1,506.0 million , respectively , of long-term debt outstanding , net of unamortized discount and the unamortized balance of capitalized debt issuance costs . at december 31 , 2020 the company had no long-term debt with maturities due within the next twelve months . at december 31 , 2019 the company also had $ 34.4 million of long-term debt classified as short-term on the consolidated balance sheets , reflecting maturities due within the next 12 months . borrowings under revolving credit facility the company has a five-year revolving credit agreement ( the `` 2018 credit facility '' ) with a syndicate of lenders that provides a $ 750.0 million committed revolving credit facility . commitments under the 2018 credit facility may be increased ( subject to certain conditions ) to an aggregate amount not to exceed $ 1.250 billion . the interest rate applicable to borrowings under the 2018 credit facility is generally either the adjusted libor plus an applicable margin ( determined by a ratings-based grid ) or the alternate base rate . the single financial covenant in the 2018 credit facility requires that total debt not exceed 65 % of total capitalization as of the last day of each fiscal quarter of the company . the 2018 credit facility expires in february 2023. in march 2020 , the company borrowed $ 100.0 million and in april 2020 , the company borrowed an additional $ 125.0 million under the 2018 credit facility .
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in 2018 , u.s. gdp is expected to show solid growth of 3.0 % , according to the most recent estimate , led by tax cuts and corporate spending increases which drove an acceleration in growth through mid-2018 , ahead of gdp growth of 2.2 % in 2017 and 1.6 % in 2016. looking ahead to 2019 , economists have mixed views on the broader u.s. economy , with current estimates for u.s. real gdp growth indicating a rate of growth between 2 % and 3 % , despite the administration 's goal to raise the pace of expansion to 4 % per year through increased fiscal stimulus . meanwhile , the global environment 's rebound in economic activity that began in mid-2016 is expected to moderate somewhat from recent peak levels , influenced by international trade tensions , tightening financial conditions , and rising geopolitical uncertainty . as a result , 2019 gdp growth in world economies is expected to grow by approximately 3.5 % , below the 2018 growth rate of 3.7 % , according to the international monetary fund . this outlook is expected to be driven by a moderation in u.s. and european economic growth rates , as well as a flattening of growth in emerging market and developing economies . looking ahead to the next few years , we remain cautiously optimistic that our economically-sensitive commercial and industrial markets will improve based on normalized global conditions . defense we have a well-diversified portfolio of products and services that supply all branches of the u.s. military , with content on many high performance programs and platforms , as well as a growing international defense business . a significant portion of our defense business operations is attributed to the united states market , and characterized by long-term programs and contracts driven primarily by the department of defense ( dod ) budgets and funding levels . the u.s. defense budget serves as a leading indicator of our growth in the defense market . following across-the-board sequestration mandated by the bca , defense spending and related supplemental budgets bottomed in 2015. however , growth has stabilized in recent years , and in early 2018 , congress signed a bill to provide relief against the spending caps associated with the bca . further , a two-year budget agreement , signed in 2018 , paved the way for lawmakers to fund defense at $ 700 billion in fiscal year 2018 and $ 716 billion in fiscal year 2019 , both significant increases from the fiscal year 2017 budget . these growth rates are expected to provide the dod with additional stability and flexibility to enter into multi-year contracts without the impact of sequestration . in addition , the fiscal year 2019 defense appropriations bill , signed by the president in september 2018 , was the first to be signed into law on time in over a decade . looking ahead , the fiscal year 2020 budget is expected to range from $ 700 to $ 750 billion , with most reports indicating the likelihood of a $ 733 billion budget and continued growth in defense . we derive revenue from the naval defense , aerospace defense , and ground defense markets . in the naval defense market , we expect continued solid funding for the u.s. shipbuilding program , particularly as it relates to production on the ford class aircraft carrier , as well as the columbia class and virginia class submarine programs . we have a long legacy of providing products that support nuclear propulsion systems on naval vessels . in addition , through our service centers , we are a critical provider of ship repair and maintenance for the u.s. navy 's atlantic and pacific fleets . in the aerospace defense market , we expect to benefit from increased funding levels on command , control , communications , computers , intelligence , surveillance , and reconnaissance ( c4isr ) , electronic warfare , unmanned systems , and communications programs . as a leading supplier of cots and cots+ solutions , we continue to demonstrate that electronics technology will enhance our ability to design and develop future generations of advanced systems and products for high performance applications , while also meeting the military 's size , weight , and power considerations . we are also a leading designer and manufacturer of high-technology data acquisition and comprehensive flight test instrumentation systems . in the ground defense market , the modernization of the existing u.s. ground vehicle fleet is expected to recover slowly , while international demand should remain solid , particularly for our turret drive stabilization systems ( tdss ) . while we monitor the budget process as it relates to programs in which we participate , we can not predict the ultimate impact of future dod budgets , which tend to fluctuate year-by-year and program-by-program . commercial aerospace 22 curtiss-wright derives revenue from the global commercial aerospace market , principally to the commercial jet market , and to a lesser extent the regional jet and commercial helicopter markets . our primary focus in this market is oem products and services for commercial jets , which is highly dependent on new aircraft production from our primary customers - boeing and airbus . we provide a combination of flight control and utility actuation systems , sensors , and other sophisticated electronics , as well as shot and laser peening services utilized on highly stressed components of turbine engine fan blades , landing gear , and aircraft structures . steady growth in airline travel , along with the demand for and delivery of new aircraft to replace an aging fleet , continue to be key drivers in the commercial aerospace market . fiscal 2011 marked the beginning of a multi-year production up-cycle for the commercial aerospace market . story_separator_special_tag results by business segment commercial/industrial sales in the commercial/industrial segment are primarily generated from the general industrial and commercial aerospace markets and , to a lesser extent , the defense and power generation markets . the following tables summarize sales , operating income and margin , and new orders within the commercial/industrial segment . replace_table_token_11_th components of sales and operating income growth ( decrease ) : replace_table_token_12_th year ended december 31 , 2018 compared to year ended december 31 , 2017 sales increased $ 46 million , or 4 % , to $ 1,209 million , from the comparable prior year period . in the general industrial market , we experienced higher sales of $ 25 million , primarily due to increased demand for our industrial vehicle , industrial controls , and industrial valve products . sales in the naval defense market increased $ 9 million , primarily due to higher valve production 27 on the cvn-80 aircraft carrier program . aerospace defense sales increased $ 6 million , primarily due to higher sales of actuation systems on fighter jets . sales in the commercial aerospace market increased as higher sales of surface treatment services and sensors and controls products were partially offset by the timing of faa directive revenues . favorable foreign currency translation benefited sales $ 9 million . operating income increased $ 15 million , or 9 % , to $ 183 million , and operating margin increased 60 basis points to 15.1 % . the increase s in operating income and operating margin were primarily due to higher sales volumes and favorable overhead absorption for industrial vehicle and industrial valve products as well as the benefits of our ongoing margin improvement initiatives . new orders decreased $ 9 million as compared to the prior year , as higher demand for aerospace defense products and surface treatment services of $ 26 million and $ 18 million , respectively , was more than offset by the timing of commercial aerospace and naval defense orders of $ 33 million and $ 20 million , respectively . year ended december 31 , 2017 compared to year ended december 31 , 2016 sales increased $ 44 million , or 4 % , to $ 1,163 million , from the comparable prior year period . in the general industrial market , we experienced higher sales of $ 50 million , primarily due to increased demand for our industrial vehicle products . the commercial aerospace market benefited from higher sales of surface treatment services and actuation system products . these increases were partially offset by lower sales of $ 15 million in the naval defense market , primarily due to the timing of production on the virginia-class submarine program . operating income increased $ 12 million , or 8 % , to $ 168 million , and operating margin increased 50 basis points to 14.5 % . the increases in operating income and operating margin were primarily driven by ongoing margin improvement initiatives and higher sales volumes of our industrial vehicle products and surface treatment services . new orders increased $ 61 million as compared to the prior year , primarily due to growth in our industrial vehicle products of $ 56 million and higher demand of $ 30 million for both our actuation and sensors and controls products to the aerospace defense and naval defense markets . this increase was partially offset by a decline in naval valve new orders of $ 37 million due to the timing of funding . defense sales in the defense segment are primarily to the defense markets and , to a lesser extent , the commercial aerospace and the general industrial markets . the following tables summarize sales , operating income and margin , and new orders , within the defense segment . replace_table_token_13_th components of sales and operating income growth ( decrease ) : replace_table_token_14_th 28 year ended december 31 , 2018 compared to year ended december 31 , 2017 sales decreased $ 1 million , or less than 1 % , to $ 554 million , from the comparable prior year period , as higher sales in the aerospace defense market were more than offset by declines in the naval defense market . in the aerospace defense market , we experienced higher demand for embedded computing products and data acquisition and flight test equipment on fighter jet programs , partially offset by lower sales of embedded computing products supporting various uav programs . sales in the naval defense market decreased primarily due to lower submarine sales , while sales in the ground defense and commercial aerospace markets were essentially flat . operating income increased $ 19 million , or 17 % , to $ 128 million , compared with the same period in 2017 , while operating margin increased 350 basis points to 23.2 % . the increases in operating income and operating margin were primarily due to improved profitability as we moved beyond first year purchase accounting costs from our ttc acquisition , favorable contract adjustments within our naval defense business , and the benefits of our ongoing margin improvement initiatives . new orders decreased $ 16 million as compared to the prior year , primarily due to the timing of naval defense orders . year ended december 31 , 2017 compared to year ended december 31 , 2016 sales increased $ 89 million , or 19 % , to $ 555 million , from the comparable prior year period , primarily due to the incremental impact of our ttc acquisition , which contributed $ 65 million in sales . excluding the impact of ttc , sales to the aerospace defense , ground defense , and naval defense markets increased $ 9 million , $ 6 million , and $ 9 million , respectively , while sales to the commercial aerospace market were essentially flat . the increase in sales to the aerospace defense market was primarily due to increased uav production and
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | debt issuances there were no debt issuances in 2018 or 2017 . in 2018 , we made a discretionary $ 50 million prepayment on our 2013 notes . in 2017 , we fully repaid the $ 150 million 2005 senior notes that had matured . revolving credit agreement as of december 31 , 2018 , the corporation had no borrowings outstanding under the revolving credit agreement ( the credit agreement or credit facility ) and $ 22 million in letters of credit supported by the credit facility . the unused credit available under the credit agreement as of december 31 , 2018 was $ 478 million , which could be borrowed in full without violating any of our debt covenants . 32 repurchase of common stock during 2018 , the company repurchased approximately 1,700,000 shares of its common stock for $ 199 million . in 2017 , the company repurchased approximately 526,000 shares of its common stock for $ 52 million . dividends during 2018 and 2017 , the company made dividend payments of approximately $ 26 million and $ 25 million , respectively . year ended december 31 , 2017 compared to year ended december 31 , 2016 operating activities cash provided by operating activities decreased $ 34 million to $ 389 million during the year ended december 31 , 2017 , as compared to the prior year period . the decrease in cash provided by operating activities was primarily due to prior year collections related to the ap1000 china direct program of $ 102 million and a one-time $ 20 million benefit in the prior year as a result of the interest rate swap termination . this was partially offset by the timing of advanced collections of $ 48 million and higher cash earnings of $ 36 million during the current period .
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the overall revenue from online sales of auto parts and accessories is expected to increase from $ 5.1 billion in 2013 to $ 16.56 billion in 2020 , according to a forecast from frost and sullivan . lower prices and consumers ' growing comfort with digital platforms are driving the shift to online sales . we believe that we are well positioned for the shift to online sales due to our history of being a leading source for aftermarket automotive parts through online marketplaces and our network of websites . our history . we were formed in delaware in 1995 as a distributor of aftermarket auto parts and launched our first website in 2000. we rapidly expanded our online operations , increasing the number of skus sold through our e-commerce network , adding additional websites , improving our internet marketing proficiency and commencing sales in online marketplaces . additionally , in august 2010 , through our acquisition of whitney automotive group , inc. ( referred to herein as “ wag ” ) , we expanded our product-lines and increased our customer reach in the do-it-yourself ( “ diy ” ) automobile and off-road accessories market . international operations . in april 2007 , we established offshore operations in the philippines . our offshore operations allow us to access a workforce with the necessary technical skills at a significantly lower cost than comparably experienced u.s.-based professionals . our offshore operations are responsible for a majority of our website development , catalog management , and back office support . our offshore operations also house our main call center . we had 714 employees in the philippines as of december 28 , 2013 . we had 704 employees in the philippines as of january 3 , 2015 . we believe that the cost advantages of our offshore operations provide us with the ability to grow our business in a cost-effective manner . automd . on october 8 , 2014 , automd entered into a common stock purchase agreement to sell seven million shares of automd common stock at a purchase price of $ 1.00 per share to third-party investors , reducing the company 's ownership interest in automd to 64.1 % . automd 's mission is to be the repair shop advocate for all vehicle owners , increase their confidence in the repair process and provide the most affordable and high quality options for automobile repair . automd 's current focus is on marketing and technology . automd 's current marketing strategy involves driving growth in their repair shop network . during 2014 , marketing efforts resulted in approximately 1,700 repair shops joining automd 's network , rising from about 400 repair shops in january 2014 to approximately 2,100 at the end of fiscal 2014. automd now has repair shops participating in 41 states . in addition to marketing , automd continues to refine the online experience , including their mobile presence . e-commerce . to understand revenue generation through our network of e-commerce websites , we monitor several key business metrics , including the following : replace_table_token_4_th 1 excludes online marketplaces and media properties ( e.g . automd ) . 25 unique visitors : a unique visitor to a particular website represents a user with a distinct ip address that visits that particular website . we define the total number of unique visitors in a given month as the sum of unique visitors to each of our websites during that month . we measure unique visitors to understand the volume of traffic to our websites and to track the effectiveness of our online marketing efforts . the number of unique visitors has historically varied based on a number of factors , including our marketing activities and seasonality . included in the unique visitors are mobile device based customers , who are becoming an increasing part of our business . shifting consumer behavior and technology enhancements indicates that customers are becoming more inclined to purchase auto parts through their mobile devices . user sophistication and technological advances have increased consumer expectations around the user experience on mobile devices , including speed of response , functionality , product availability , security , and ease of use . we believe enhancements to online solutions specifically catering to mobile based shopping can result in an increase in the number of orders and revenues . we believe an increase in unique visitors to our websites will result in an increase in the number of orders . we seek to increase the number of unique visitors to our websites by attracting repeat customers and improving search engine marketing and other internet marketing activities . during fiscal year 2014 , our unique visitors decreased by 9.9 % compared to the fiscal year 2013 . we expect the total number of unique visitors in 2015 to marginally improve , as we believe we have addressed the challenges we experienced from changes search engines have made to the formulas , or algorithms , that they use to optimize their search results , as described in further detail under “ —executive summary ” below . total number of orders : we monitor the total number of orders as an indicator of future revenue trends . during the fiscal year 2014 , the total number of orders was up by 14.1 % compared to the fiscal year 2013 , with e-commerce and online marketplace orders improving by 4.1 % and 41.6 % , respectively . we believe that e-commerce orders improved through an improved customer experience and pricing strategies . we believe that the increase in online marketplace orders was primarily due to competitive pricing strategies . we expect the total number of orders in 2015 to marginally improve over our results for 2014. we recognize revenue associated with an order when the products have been delivered , consistent with our revenue recognition policy . story_separator_special_tag e-commerce and online marketplace sales also include inbound telephone sales through our call center that supports these sales channels . online marketplaces consist primarily of sales of our products on online auction websites , where we sell through auctions as well as through storefronts that we maintain on third-party owned websites . we sell advertising and sponsorship positions on our e-commerce websites to highlight vendor brands and offer complementary products and services that benefit our customers . advertising is targeted to specific sections of the websites and can also be targeted to specific users based on the vehicles they drive . advertising partners primarily include part vendors , national automotive aftermarket brands and automobile manufacturers . our offline sales channel represents our distribution of products directly to commercial customers by selling auto parts to collision repair shops . our offline sales channel also includes the distribution of our kool-vue mirror line to auto parts distributors nationwide . we also serve consumers by operating a retail outlet store in lasalle , illinois . cost of sales . cost of sales consists of the direct costs associated with procuring parts from suppliers and delivering products to customers . these costs include direct product costs , outbound freight and shipping costs , warehouse supplies and warranty costs , partially offset by purchase discounts and cooperative advertising . depreciation and amortization expenses are excluded from cost of sales and included in marketing , general and administrative and fulfillment expenses as noted below . marketing expense . marketing expense consists of online advertising spend , internet commerce facilitator fees and other advertising costs , as well as payroll and related expenses associated with our marketing catalog , customer service and sales personnel . these costs are generally variable and are typically a function of net sales . marketing expense also includes depreciation and amortization expense and share-based compensation expense . general and administrative expense . general and administrative expense consists primarily of administrative payroll and related expenses , merchant processing fees , legal and professional fees and other administrative costs . general and administrative expense also includes depreciation and amortization expense and share-based compensation expense . fulfillment expense . fulfillment expense consists primarily of payroll and related costs associated with our warehouse employees and our purchasing group , facilities rent , building maintenance , depreciation and other costs associated with inventory management and our wholesale operations . fulfillment expense also includes share-based compensation expense . technology expense . technology expense consists primarily of payroll and related expenses of our information technology personnel , the cost of hosting our servers , communications expenses and internet connectivity costs , computer support and software development amortization expense . technology expense also includes share-based compensation expense . amortization of intangible assets . amortization of intangibles consists of the amortization expense associated with our definite-lived intangible assets . impairment loss . impairment loss is recorded as a result of impairment testing performed for goodwill and indefinite-lived intangible assets in accordance with asc 350 intangibles – goodwill and other , and long-lived assets , including intangible assets subject to amortization , in accordance with asc 360 property , plant and equipment . other income , net . other income , net consists of miscellaneous income or expense such as gains/losses from disposition of assets , and interest income comprised primarily of interest income on investments . interest expense . interest expense consists primarily of interest expense on our outstanding loan balance , deferred financing cost amortization and capital lease interest . segment data the company operates in two reportable segments identified as base usap , which is the core auto parts business , and automd , an online automotive repair source of which the company is a majority stockholder . segment information is prepared on the same basis that our chief executive officer , who is our chief operating decision maker , manages the segments , evaluates financial results , and makes key operating decisions . management evaluates the performance of its operating segments based on net sales , gross profit and loss from operations . the accounting policies of the operating segments are the same as those described in “ note 1 - summary of significant accounting policies ” of our notes to consolidated financial statements . operating income represents earnings before other income , interest expense and income taxes . the identifiable assets by segment disclosed in this note are those assets specifically identifiable within each segment . 30 summarized segment information for our continuing operations from the two reportable segments for the periods presented is as follows ( in thousands ) : replace_table_token_7_th ( 1 ) operating costs for automd primarily consist of depreciation on fixed assets and personnel costs . 31 results of operations the following table sets forth selected statement of operations data for the periods indicated , expressed as a percentage of net sales : replace_table_token_8_th fifty-three weeks ended january 3 , 2015 compared to the fifty-two weeks ended december 28 , 2013 net sales and gross margin replace_table_token_9_th net sales increased $ 28,755 , or 11.3 % , for fiscal year 2014 compared to fiscal year 2013 . our net sales consisted of online sales , which included mobile based online sales , representing 90.7 % of the total for fiscal year 2014 ( compared to 90.0 % in fiscal year 2013 ) , and offline sales , representing 9.3 % of the total for fiscal year 2014 ( compared to 10.0 % in fiscal year 2013 ) . the net sales increase was due to an increase of $ 27,764 , or 12.1 % , in online sales and a $ 992 , or 3.9 % , increase in offline sales . online sales increased primarily due to a 14.1 % increase in number of orders . gross profit increased $ 4,317 , or 5.8 % , in fiscal year 2014 compared to fiscal year 2013 . gross margin decreased 1.4 % to
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash flows the following table summarizes the key cash flow metrics from our consolidated statements of cash flows for fiscal year 2014 , 2013 and 2012 , respectively ( in thousands ) : replace_table_token_27_th operating activities cash provided by operating activities is primarily comprised of net loss , adjusted for non-cash activities such as depreciation and amortization expense , amortization of intangible assets , impairment losses and share-based compensation expense . these non-cash adjustments represent charges reflected in net loss and , therefore , to the extent that non-cash items increase or decrease our operating results , there will be no corresponding impact on our cash flows . net loss adjusted for non-cash adjustments to operating activities was $ 4,689 ( adjusted for non-cash charges primarily consisting of depreciation and amortization expense of $ 8,923 ) for the period ended january 3 , 2015 compared to $ 4,398 ( adjusted for non-cash charges primarily consisting of impairment losses of $ 6,077 and depreciation and amortization expense of $ 12,175 ) for the period ended december 28 , 2013 . net loss adjusted for non-cash adjustments to operating activities was $ 4,398 ( adjusted for non-cash charges primarily consisting of impairment losses of $ 6,077 and depreciation and amortization expense of $ 12,175 ) for the period ended december 28 , 2013 compared to $ 8,161 ( adjusted for non-cash charges primarily consisting of impairment losses of $ 26,427 and depreciation and amortization expense of $ 15,204 ) for the period ended december 29 , 2012. after excluding the effects of the non-cash charges , the primary changes in cash flows relating to operating activities resulted from changes in operating assets and liabilities . accounts receivable decreased to $ 3,804 at january 3 , 2015 from $ 5,029 at december 28 , 2013 , resulting in a decrease in operating assets and reflecting a cash inflow of $ 1,225 for the fiscal year ended january 3 , 2015 . accounts receivable decreased primarily due to the closure of the carson warehouse and the related accounts receivable associated with offline sales processed through the carson warehouse .
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this includes , but is not limited to , the humoral immune defect in common variable immunodeficiency , x-linked agammaglobulinemia , congenital agammaglobulinemia , wiskott-aldrich syndrome and severe combined immunodeficiency . these pis are a group of genetic disorders . based on recent estimates , these disorders are no longer considered to be very rare , with as many as one in every 1,200 people in the united states having some form of pi.bpc had originally received fda approval for bivigam on december 19 , 2012 , prior to our acquisition of btbu , and product sales had commenced in the first quarter of 2013. on may 9 , 2019 , the fda approved the prior approval supplement ( the “ pas ” ) for the use of our ivig manufacturing process , thereby enabling us to re-launch and commercialize this product in the united states . we resumed production of bivigam during the fourth quarter of 2017 after the closing of the biotest transaction and commercial production is ongoing , using our fda-approved ivig manufacturing process under u.s. department of health and human services ( “ hhs ” ) license no . 2019. the commercial re-launch and first commercial sales commenced in august of 2019. asceniv asceniv is a plasma-derived ivig that contains naturally occurring polyclonal antibodies , which are proteins that are used by the body 's immune system to neutralize microbes , such as bacteria and viruses and prevent against infection and disease . we manufacture asceniv under a hhs license no . 2019 using a process known as fractionation . as part of our proprietary manufacturing process for asceniv , we leverage our unique , patented plasma donor screening methodology and tailored plasma pooling design , which blends normal source plasma and plasma from donors tested to have high levels of neutralizing titers to rsv using our proprietary microneutralization assay . we are able to identify the high titer plasma that meets our internal specifications for asceniv with our patented testing assay . this type of high titer plasma is typically found in less than 10 % of the total donor collection samples we test . asceniv is approved for the treatment of pidd , a class of inherited genetic disorders that causes a deficient or absent immune system in adults and adolescents ( 12 to 17 years of age ) . our pivotal phase 3 clinical trial in 59 pidd patients met the primary endpoint of no serious bacterial infections reported during 12 months of treatment . secondary efficacy endpoints further demonstrated the benefits of asceniv in the low incidence of infection , therapeutic antibiotic use , days missed from work/school/daycare and unscheduled medical visits and hospitalizations . we believe this clinical data together with the fda approval for the treatment of pidd better positions adma to further evaluate asceniv in immune-compromised patients infected with or at-risk for rsv infection . we plan to work with the fda and the immunology and infectious disease community to design a clinical trial to evaluate the use of asceniv in this patient population in the near future . commercial sales of asceniv commenced in october of 2019. nabi-hb nabi-hb is a hyperimmune globulin that is rich in antibodies to the hepatitis b virus . nabi-hb is a purified human polyclonal antibody product collected from plasma donors who have been previously vaccinated with a hepatitis b vaccine . nabi-hb is indicated for the treatment of acute exposure to blood containing hbsag , prenatal exposure of infants born to hbsag-positive mothers , sexual exposure to hbsag-positive persons and household exposure to persons with acute hepatitis b virus infection in specific , listed settings . hepatitis b is a potentially life-threatening liver infection caused by the hepatitis b virus . it is a major global health problem . it can cause chronic infection and puts people at high risk of death from cirrhosis and liver cancer . nabi-hb has a well-documented record of long-term safety and effectiveness since its initial market introduction . fda approval for nabi-hb was received on march 24 , 1999. biotest acquired nabi-hb from nabi biopharmaceuticals in 2007. production of nabi-hb at the boca facility has continued under our leadership since the third quarter of 2017. in early 2018 , we received authorization from the fda for the release of our first commercial batch of nabi-hb for commercial distribution in the u.s. and continue to manufacture under hhs license no . 2019 . 53 results of operations critical accounting policies and estimates this management 's discussion and analysis of financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states of america ( “ u.s . gaap ” ) . the preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues and expenses . on an ongoing basis , we evaluate these estimates and assumptions , including those described below . we base our estimates on our historical experience and on various other assumptions that we believe to be reasonable under the circumstances . these estimates and assumptions form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results and experiences may differ materially from these estimates . significant estimates include the realizable value of accounts receivable , valuation of inventory , assumptions used in the fair value of awards granted under our equity incentive plans and warrants issued in connection with the issuance of notes payable and the valuation allowance for our deferred tax assets . some of the estimates and assumptions we have to make under u.s. gaap require difficult , subjective and or complex judgments about matters that are inherently uncertain and , as a result , actual results could differ from those estimates . story_separator_special_tag selling , general and administrative expenses sg & a was $ 25.9 million for the year ended december 31 , 2019 , an increase of $ 3.4 million as compared to the year ended december 31 , 2018. the increase reflects professional services of $ 1.8 million in 2019 related to enhancements to our information technology and customer support infrastructure necessary to support our overall growth and commercialization plans , as well as $ 0.9 million of higher employee related expenses due to increased headcount , increased marketing expenses of $ 0.4 million resulting from new product launches and $ 0.3 million of increased insurance expense . amortization of intangibles amortization expense for intangible assets acquired in the biotest transaction was $ 0.8 million for the years ended december 31 , 2019 and 2018. loss from operations our operating loss was $ 41.4 million for the year ended december 31 , 2019 , as compared to $ 60.3 million for the year ended december 31 , 2018. the decrease was mainly due to the increase in revenues and to decreases in cost of product revenue and other operating expenses aggregating to $ 6.5 million . interest expense interest expense was $ 9.0 million for the year ended december 31 , 2019 , as compared to $ 5.5 million for the year ended december 31 , 2018. the increase reflects a higher average debt principal balance carried in 2019 as compared to 2018 due to the senior debt refinancing transaction in february 2019 and the amendment to our senior credit facility in may 2019 ( see “ liquidity and capital resources ” ) , which resulted in additional debt principal of $ 42.5 million . story_separator_special_tag href= `` https : //www.sec.gov/archives/edgar/data/0001368514/000119380520000348/ # toc `` style= `` font-style : italic `` > in february 2020 , we completed an underwritten public offering of 27,025,000 shares of our common stock and received net proceeds , after underwriting discounts and other expenses associated with the offering , of approximately $ 88.5 million . the proceeds from this offering are expected to be used ( i ) for the procurement of raw materials for the manufacturing of bivigam and asceniv ; ( ii ) to support the ongoing commercial sales of bivigam and asceniv ; ( iii ) to expand the manufacturing capacity of our boca facility and enhance our supply chain capabilities ; ( iv ) to expand our plasma collection facility network ; ( v ) for research and development and business development opportunities ; and ( vi ) for general corporate purposes and other capital expenditures . on may 21 , 2019 , we issued 12,937,500 shares of our common stock in an underwritten public offering for gross proceeds of $ 51.75 million , before deducting underwriting discounts and commissions and other offering expenses payable by us . the net proceeds of $ 48.4 million from the offering have been used ( i ) to support the commercial launch of asceniv , which commenced in october 2019 , ( ii ) for the commercial re-launch of bivigam , ( iii ) to expand the manufacturing capacity of the boca facility , ( iv ) for the procurement of raw materials for the manufacturing of asceniv and bivigam , ( v ) to expand our plasma collection facility network ; and ( vi ) for general corporate purposes and other capital expenditures . on february 11 , 2019 ( the “ perceptive closing date ” ) , we and all of our subsidiaries entered into the perceptive credit agreement with perceptive . the perceptive credit agreement provided for the perceptive credit facility in a principal amount of up to $ 72.5 million , comprised of ( i ) the perceptive tranche i loan in the principal amount of $ 45.0 million , and ( ii ) the perceptive tranche ii loan in the principal amount of up to $ 27.5 million , but no less than $ 10.0 million . the perceptive credit facility has a maturity date of march 1 , 2022 ( the “ perceptive maturity date ” ) , subject to acceleration pursuant to the perceptive credit agreement , including upon an event of default ( as defined in the perceptive credit agreement ) . on the perceptive closing date , we used $ 30.0 million of the perceptive tranche i loan to terminate and pay in full all of the outstanding obligations under our previously existing credit agreement with marathon healthcare finance fund , l.p. ( “ marathon ” ) ( the “ marathon credit facility ” ) that we entered into in october 2017. we also used proceeds from the perceptive tranche i loan to ( i ) pay a deferred facility fee to marathon of $ 2.8 million , ( ii ) pay a prepayment penalty to marathon of $ 6.5 million , ( iii ) pay outstanding accrued interest to marathon of $ 0.7 million and ( iv ) pay certain fees and expenses incurred in connection with the perceptive credit facility of approximately $ 1.5 million . in addition , on the perceptive closing date , marathon released to us the $ 4.0 million of cash held in a debt service reserve account , per the terms of the marathon credit facility . as consideration for the perceptive credit agreement , we issued to perceptive , on the perceptive closing date , a warrant to purchase 1,360,000 shares of our common stock ( the “ perceptive warrant ” ) . the perceptive warrant has an exercise price equal to $ 3.28 per share , which is equal to the trailing 10-day volume weighted average price ( “ vwap ” ) of our common stock on the business day immediately prior to the perceptive closing date multiplied by 1.15. we valued the perceptive warrant at $ 2.7 million as of the perceptive closing date , and it has an expiration date of february 11 , 2029.
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | loss on extinguishment of debt in connection with the refinancing of our senior credit facility in 2019 , we incurred a loss on the extinguishment debt for the retirement of our previously existing credit facility , consisting of a $ 6.5 million prepayment penalty , and the write-off of $ 3.5 million of unamortized debt discount related to the previous credit facility . gain on transfer of plasma center assets as part of the purchase price for the biotest assets , we agreed to transfer two of our plasma collection centers to bpc effective january 1 , 2019. we had estimated the combined fair value of the two facilities to be $ 12.6 million , and we recorded a liability in our financial statements for this amount as of the date of the biotest transaction . on january 1 , 2019 , the two plasma collection facilities were transferred to bpc and we recorded a gain on this transfer in the amount of $ 11.5 million , which reflects the derecognition of the obligation to transfer ownership of the two facilities net of the carrying value of the assets associated with these facilities , primarily property and equipment and inventory , in the amount of $ 1.1 million . net loss net loss was $ 48.3 million for the year ended december 31 , 2019 , as compared to $ 65.7 million for the year ended december 31 , 2018. the reduction in net loss of $ 17.5 million was due to the decrease in operating loss and the gain on transfer of plasma center assets , partially offset by the loss on extinguishment of debt and the increased interest expense .
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18 the canada business is focused on stabilizing volume performance in 2019 after completing the majority of its cost structure reset . in other businesses , the company is focused on growing the endless assortment businesses profitably , investing in product assortment and innovating around customer acquisition by building marketing and analytics capabilities . the high-touch , high-service international businesses are focused on the same initiatives as the u.s. business , as mentioned above . matters affecting comparability there were 255 sales days in the full years 2018 and 2016 versus 254 sales days in the full year 2017 . grainger completed one divestiture in 2017 , which was immaterial . results of operations the following table is included as an aid to understanding changes in grainger 's consolidated statements of earnings ( in millions of dollars ) : replace_table_token_7_th 2018 compared to 2017 grainger 's net sales of $ 11,221 million for 2018 increased $ 796 million , or 8 % , compared to the same period in 2017. on a daily basis , net sales increased 7 % . the increase in net sales was primarily driven by volume increases in the u.s. business due to market share gain and an improved demand environment and continued double digit growth in the endless assortment businesses , offset by lower sales in the canada business . see note 17 to the financial statements and refer to the segment analysis below for further details . gross profit of $ 4,348 million for 2018 increased $ 250 million , or 6 % compared with the same period in 2017 . the gross profit margin of 38.7 % decreased 0.6 percentage points when compared to the same period in 2017. the lower gross profit margin reflects a 0.5 percentage point decline from the implementation of the financial accounting standards board ( fasb ) new revenue recognition standard that primarily reclassified certain costs related to keepstock® services from selling , general and administrative expenses ( sg & a ) to cost of goods sold ( cogs ) . excluding this impact , gross profit margin would have decreased 0.1 percentage point compared to the prior year . the tables below reconcile reported sg & a , operating earnings and net earnings attributable to w.w. grainger , inc. , determined in accordance with generally accepted accounting principles ( gaap ) in the united states of america to adjusted sg & a , operating earnings and net earnings attributable to w.w. grainger , inc. , which are all considered non-gaap measures . the company believes that these non-gaap measures provide meaningful information to assist shareholders in understanding financial results and assessing prospects for future performance as they provide a better baseline for analyzing the ongoing performance of its businesses by excluding items that may not be indicative of core operating results . because non-gaap financial measures are not standardized , it may not be possible to 19 compare these measures with other companies ' non-gaap measures having the same or similar names . all tables below are in millions of dollars : twelve months ended december 31 , 2018 2017 % sg & a reported $ 3,190 $ 3,063 4 % restructuring ( u.s. ) 19 43 branch gains ( u.s. ) ( 10 ) ( 33 ) other ( gains ) charges ( u.s. ) — ( 4 ) restructuring ( canada ) 36 31 branch gains ( canada ) ( 1 ) — restructuring ( other businesses ) 5 51 impairment charges ( other businesses ) 139 — restructuring ( unallocated expense ) ( 2 ) 11 subtotal 186 99 sg & a adjusted $ 3,004 $ 2,964 1 % 2018 2017 % operating earnings reported $ 1,158 $ 1,035 12 % total restructuring and impairment charges , net of branch gains and other charges 186 112 operating earnings adjusted $ 1,344 $ 1,147 17 % 2018 2017 % net earnings attributable to w.w. grainger , inc. reported $ 782 $ 586 33 % total restructuring and impairment charges , net of branch gains and other charges 186 112 tax effect ( 1 ) ( 16 ) ( 13 ) u.s. tax legislation ( 2 ) — ( 3 ) discrete tax items — ( 12 ) total restructuring and impairment charges , net of branch gains and other charges and tax 170 84 net earnings attributable to w.w. grainger , inc. adjusted $ 952 $ 670 42 % ( 1 ) the tax impact of adjustments is calculated based on the income tax rate in each applicable jurisdiction , subject to deductibility and the company 's ability to realize the associated tax benefits . ( 2 ) u.s. tax legislation reflects the 2017 impact of the benefit of remeasurement of deferred taxes , partially offset by one-time deemed repatriation tax . 20 sg & a of $ 3,190 million for 2018 increased $ 127 million , or 4 % from $ 3,063 million compared with the same period in 2017 . in the third quarter of 2018 grainger recorded $ 139 million of impairment charges related to goodwill and tradename intangible asset at the cromwell business . excluding restructuring and impairment charges net of branch gains and other charges in both periods as noted in the table above , sg & a increased $ 40 million or 1 % , driven primarily by higher variable costs in connection with higher sales . operating earnings of $ 1,158 million for 2018 increased $ 123 million , or 12 % from $ 1,035 million for 2017 . excluding restructuring and impairment charges net of branch gains and other charges in both periods as noted in the table above , operating earnings increased $ 197 million , or 17 % , driven primarily by higher sales and improved sg & a leverage . story_separator_special_tag on a daily basis , the 13 % increase consisted of the following : percent increase/ ( decrease ) volume 15 foreign exchange ( 2 ) total 13 % 26 operating earnings for other businesses were $ 56 million for 2017 compared to $ 40 million for 2016. excluding restructuring charges in 2017 and the goodwill and intangible impairment charges of $ 52 million in the fabory and colombia businesses in the prior year , operating earnings increased $ 18 million or 19 % , due to strong performance from the endless assortment businesses . financial condition grainger expects its strong working capital position , cash flows from operations and borrowing capacity to continue , allowing it to fund its operations , growth initiatives and capital expenditures as well as pay cash dividends , repurchase shares and repay its long-term debt obligations while maintaining an adequate credit rating . story_separator_special_tag style= `` font-family : arial ; font-size:10pt ; `` > december 31 , 2018 . this amount is excluded from the table above , as grainger can not predict the timing of these cash payments by period . see note 15 to the financial statements . off-balance sheet arrangements grainger does not have any material exposures to off-balance sheet arrangements . all significant contractual obligations are recorded on the company 's consolidated balance sheet or disclosed in the notes to grainger 's consolidated financial statements . critical accounting estimates note 1 to the financial statements describes the significant accounting policies used in the preparation of the consolidated financial statements . as discussed in note 1 , the preparation of financial statements , in conformity with u.s. gaap , requires management to make judgments , estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes . accounting policies and estimates are considered critical when they require management to make subjective and complex judgments , estimates and assumptions about matters that have a material impact on grainger 's financial statements and accompanying notes . 29 the company believes that the following discussion addresses grainger 's most critical accounting policies and estimates . inventory reserves grainger establishes inventory reserves for excess and obsolete inventory . grainger regularly reviews inventory to evaluate continued demand and identify any obsolete or excess quantities . grainger records provisions for the difference between excess and obsolete inventory cost and its estimated realizable value . estimated realizable value is based on anticipated future product demand , market conditions and liquidation values . as grainger 's inventory consists of approximately 1.7 million stocked products , it is not practical to quantify the actual disposition of excess and obsolete inventory against estimated amounts at a stock keeping unit ( sku ) level and no individual sku is material . there were no material differences noted between reserve levels compared to the level of write-offs historically . grainger 's methodology for estimating reserves is continually evaluated based on current experience and provides for a materially accurate level of reserves at any reporting date . actual results could differ materially from projections and require changes to reserves that could have a material effect on grainger 's results of operations , based on significant changes in product demand , market conditions or liquidation value . if business or economic conditions change , grainger 's estimates and assumptions may be revised as appropriate . for fiscal years 2018 , 2017 and 2016 , actual results did not vary materially from estimated amounts . goodwill and indefinite-lived intangible assets grainger 's goodwill and indefinite-lived intangible assets are evaluated for impairment annually during the fourth quarter , or more frequently if an event occurs or circumstances change . the company tests for impairment by first assessing qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying value . some of the factors considered in the assessment include general macroeconomic , industry and market trends and significant events impacting reporting units ' current and future performance . if the company concludes that it is more likely than not that goodwill and intangible assets may be impaired , a quantitative impairment test is performed . in the quantitative impairment tests , the company uses the discounted cash flow , market approach and royalty relief methods , which require significant assumptions and judgments with respect to future volume , revenue and expense growth rates , capital investments , changes in working capital use , the selection of an appropriate discount rate and terminal growth rate , among other assumptions and estimates . the use of alternative estimates and assumptions could impact the company 's estimated fair values of reporting units and indefinite-lived intangible assets and potentially result in different impacts on the company 's results of operations . actual results could differ from the company 's assumptions and estimates . see note 4 to the financial statements for further information . income taxes the tax balances and income tax expense recognized by grainger are based on management 's interpretations of the tax laws of multiple jurisdictions . income tax expense reflects grainger 's best estimates and assumptions regarding , among other items , the level of future taxable income , interpretation of tax laws and tax planning opportunities , plans for reinvestment of cash overseas and uncertain tax positions . on december 22 , 2017 , the tax cuts and jobs act was signed into law , which significantly revised the u.s. corporate income tax system including lowering the corporate income tax rates from 35 % to 21 % effective january 1 , 2018. see note 15 to the financial statements for additional information . future rulings by tax authorities and future changes in tax laws and their interpretation , changes in projected levels of taxable income , changes in planned need for cash overseas and future tax planning strategies could impact the actual
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash and cash equivalents at december 31 , 2018 , 2017 and 2016 , grainger had cash and cash equivalents of $ 538 million , $ 327 million and $ 274 million , respectively . approximately 49 % , 66 % and 71 % were outside the u.s. business as of december 31 , 2018 , 2017 and 2016 , respectively . grainger has no material limits or restrictions on its ability to use these foreign liquid assets . cash flow 2018 compared to 2017 net cash provided by operating activities was $ 1,057 million for the twelve months ended december 31 , 2018 and 2017 , as increased net earnings were offset by investment in inventory and timing of payables . net cash used in investing activities was $ 166 million and $ 146 million for the twelve months ended december 31 , 2018 and 2017 , respectively . the increase in net cash used in investing activities was driven by lower proceeds primarily from the sales of branch real estate assets in the u.s. and a u.s. business divestiture when compared to the prior year . net cash used in financing activities was $ 670 million and $ 867 million in the twelve months ended december 31 , 2018 and 2017 , respectively . the decrease in net cash used in financing activities was primarily driven by lower stock repurchases in 2018 compared to 2017 and higher proceeds from the exercise of stock options . 2017 compared to 2016 net cash provided by operating activities was $ 1,057 million and $ 1,024 million for the twelve months ended december 31 , 2017 and 2016 , respectively . the increase in cash provided by operating activities is primarily the result of higher accruals related to employee benefits , partially offset by lower earnings and higher working capital . net cash used in investing activities was $ 146 million and $ 262 million for the twelve months ended december 31 , 2017 and 2016 , respectively .
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during the fourth quarter of 2011 , we received a total of $ 14,000,000 in milestone payments from genentech relating to the fda 's acceptance of genentech 's new drug application , or nda , for erivedge and the european medicines agency 's , or ema 's , acceptance for review of a marketing authorization application , or maa for erivedge , that was submitted by roche in december 2011. the genentech nda and roche maa applications were based on positive clinical data from erivance bcc/shh4476g , a pivotal phase ii study of erivedge in patients with advanced bcc . we will receive an additional milestone payment if erivedge also receives ema marketing authorization , as well as royalties on any future sales in this territory . genentech is also conducting a separate phase ii clinical trial of erivedge in patients with operable nodular basal cell carcinoma , which is a less severe form of the disease and accounts for a significant percentage of the approximately two million bccs diagnosed annually in the united states . we anticipate that the study will be completed during early 2013. in addition to the bcc clinical trials being conducted directly by genentech and roche , erivedge is also currently being tested in other cancers in trials under collaborative agreements between genentech and either third-party investigators or the u.s. national cancer institute , or nci . 47 network-targeted cancer programs our internal drug development efforts are focused on our network-targeted cancer programs , in which we are seeking to design single novel small molecule drug candidates that inhibit multiple signaling pathways that are believed to play roles in cancer cell proliferation . we refer to this approach as cancer network disruption . we believe that our approach of targeting multiple nodes in cancer signaling pathway networks may provide a better therapeutic effect than many of the cancer drugs currently marketed or in development since our drug candidates are being designed to disrupt multiple targets in the cancer network environment as compared to most other cancer drugs which are designed to disrupt only one target . cudc-101 . our lead candidate from these programs is cudc-101 , a first-in-class small molecule compound designed to simultaneously target histone deacetylase , or hdac , epidermal growth factor receptor , or egfr , and human epidermal growth factor receptor 2 , or her2 , all of which are validated cancer targets . a significant amount of our capital resources are focused on the ongoing clinical development of this molecule . to date , we have completed a phase i dose escalation clinical trial of cudc-101 in 25 patients with advanced , refractory solid tumors and we have completed enrollment in a phase i expansion trial to test cudc-101 in 46 patients with specific tumor types , including breast , gastric , head and neck , liver and non-small cell lung cancers . the phase i expansion trial is designed as an open-label study in which patients are treated with cudc-101 at the maximum tolerated dose , which was determined in the phase i dose escalation study to be 275 milligrams per meter 2 . the primary objectives of this study are to compare the safety and tolerability of cudc-101 in subjects with these specific advanced solid tumors when the drug is administered via one-hour intravenous infusion either on a five days per week schedule ( one week on/one week off ) or on a three days per week schedule ( three weeks on/one week off ) . during the second quarter of 2011 , we initiated a phase i clinical trial of cudc-101 in locally advanced head and neck cancer patients whose cancer is human papilloma virus , or hpv , negative . we have treated four patients in this trial as of february 24 , 2012. the primary objectives of this study are to evaluate the safety and tolerability of cudc-101 when administered in combination with the current standard-of-care of cisplatin , a chemotherapeutic drug , and radiation . upon determination of the maximum tolerated dose and assuming the otherwise successful completion of the phase i trial , we intend to conduct a randomized phase ii two-arm clinical trial in which head and neck cancer patients will receive cisplatin and radiation plus or minus cudc-101 . the phase ii study would seek to evaluate whether the addition of cudc-101 can improve the efficacy of cisplatin and radiation therapy in this patient population . we currently estimate initiating this phase ii study in the first half of 2013. we are also working on an oral formulation of cudc-101 , which we believe has the potential to make cudc-101 more competitive in certain cancers such as non-small cell lung cancer or in other cancers where there are investigational or competing commercially available molecules that are orally administered . pending the successful completion of ongoing formulation and preclinical development work , we intend to begin a phase i study of an oral formulation of cudc-101 in the second half of 2012. cudc-907 . in january 2011 , we selected development candidate cudc-907 , an orally bioavailable , network-targeted small molecule that is designed to inhibit hdac and phosphatidylinositol-3-kinase , or pi3k . our scientists are developing cudc-907 based on published and internally generated data demonstrating that hdac and pi3k inhibitors have synergistic interaction in certain preclinical cancer models . we believe that this synergistic mechanism of cancer signaling network disruption , which demonstrated efficacy and a favorable safety profile in a number of preclinical xenograft models , could translate into clinical advantages over single agents . in november 2011 , we entered into an agreement under which the leukemia & lymphoma society , or lls , will provide a portion of the funding of the development of cudc-907 if we succeed in advancing this development candidate into a clinical trial for patients with b-cell lymphoma and multiple myeloma . story_separator_special_tag maa review means that roche has filed an maa with the ema , and the ema has accepted and is currently reviewing the application for potential approval to commercialize erivedge in europe . phase ii means that genentech is currently treating human patients in a phase ii clinical trial , the primary objective of which is a therapeutic response in the patient population . phase i expansion means that we are currently treating human patients with specific tumor types in an extension of our phase i dose escalation trial , at the maximum tolerated dose from such trial , the principal purpose of which is to evaluate the safety and tolerability of the compound being tested . phase ib means that debiopharm is further assessing the safety profile , pharmacokinetics and pharmacodynamics of debio 0932 at the recommended phase ii dose level , and seeking to make a preliminary assessment of anti-tumor activity in patients with advanced solid tumors . phase i means that we are currently treating human patients in separate phase i clinical trials with cudc-101 , the principal purpose of which is to evaluate the safety and tolerability of the compound being tested . development candidate means that we have selected a single lead candidate for potential future clinical 52 development and are seeking to complete the relevant safety , toxicology , and other studies required to submit an ind application with the fda seeking to commence a phase i clinical trial based on our testing in several preclinical models of human disease of various compounds from a particular compound class . preclinical means that we are seeking to obtain evidence of therapeutic efficacy and safety in preclinical models of human disease of one or more compounds within a particular class of drug candidates . because of the early stages of development of these programs , our ability and that of our collaborators and licensees to successfully complete preclinical studies and clinical trials of these drug candidates , and the timing of completion of such programs , is highly uncertain . there are numerous risks and uncertainties associated with developing drugs which may affect our and our collaborators ' future results , including : the scope , quality of data , rate of progress and cost of clinical trials and other research and development activities undertaken by us or our collaborators ; the results of future preclinical studies and clinical trials ; the cost and timing of regulatory approvals ; the cost and timing of establishing sales , marketing and distribution capabilities ; the cost of establishing clinical and commercial supplies of our drug candidates and any products that we may develop ; the effect of competing technological and market developments ; and the cost and effectiveness of filing , prosecuting , defending and enforcing any patent claims and other intellectual property rights . we can not reasonably estimate or know the nature , timing and estimated costs of the efforts necessary to complete the development of , or the period in which material net cash inflows are expected to commence from any of our drug candidates . any failure to complete the development of our drug candidates in a timely manner could have a material adverse effect on our operations , financial position and liquidity . a further discussion of some of the risks and uncertainties associated with completing our research and development programs on schedule , or at all , and some consequences of failing to do so , are set forth above in part i , item 1arisk factors. general and administrative . general and administrative expense consists primarily of salaries , stock-based compensation expense and other related costs for personnel in executive , finance , accounting , business development , legal , information technology , corporate communications and human resource functions . other costs include facility costs not otherwise included in research and development expense , insurance , and professional fees for legal , patent and accounting services . patent costs include certain patents covered under collaborations , a portion of which is reimbursed by collaborators and a portion of which is borne by us . we expect that our general and administration expenses will increase in future periods as patent costs related to our hedgehog pathway inhibitor collaboration with genentech increase as well as an increase in our non-cash stock-based compensation expense in 2012 as compared to prior periods . critical accounting policies and estimates the preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the united states requires that we make estimates and assumptions that affect the reported amounts and disclosure of certain assets and liabilities at our balance sheet date . such estimates and judgments include the carrying value of property and equipment and intangible assets , revenue recognition , the value of certain liabilities , including our warrant liability , and stock-based compensation . we base our estimates on historical experience and on various other factors that we believe to be appropriate under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . 53 while our significant accounting policies are more fully described in our consolidated financial statements , we believe that the following accounting policies are critical to understanding the judgments and estimates we use in preparing our financial statements : revenue recognition our business strategy includes entering into collaborative license and development agreements with biotechnology and pharmaceutical companies for the development and commercialization of our product candidates . the terms of the agreements typically include non-refundable license fees , funding of research and development , payments based upon achievement of clinical development milestones and royalties on product sales . we follow the provisions of the financial accounting standards board , or fasb , codification topic 605 , revenue recognition
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources sources of liquidity we have financed our operations primarily through license fees , contingent cash payments and research and development funding from our collaborators and licensors , the private and public placement of our equity securities , debt financings and the monetization of certain royalty rights . during the fourth quarter of 2011 , we received $ 14,000,000 in milestone payments from genentech for the achievement of clinical development objectives for erivedge . erivedge received fda approval in january 2012 for which we received an additional milestone payment of $ 10,000,000 and we will be entitled to receive royalties on any future sales . if erivedge receives ema marketing authorization , we will be entitled to receive an additional milestone payment and royalties on any future sales . on june 13 , 2011 , we entered into an at market issuance sales agreement , or atm agreement , with mcnicoll , lewis & vlak llc , or mlv , pursuant to which we may issue and sell shares of our common stock , $ 0.01 par value per share , with an aggregate offering price of up to $ 20,000,000 from time to time through mlv . upon delivery of a 64 placement notice and subject to the terms and conditions of the atm agreement , mlv may sell the common stock by methods deemed to be an at-the-market offering as defined in rule 415 of the securities act of 1933 , including without limitation , sales made directly on the nasdaq global market , on any other existing trading market for the common stock or to or through a market maker . with our prior written approval , mlv may also sell the common stock by any other method permitted by law , including in privately negotiated transactions . we or mlv may suspend or terminate the offering of common stock upon notice and subject to other conditions . mlv will act as sales agent on a commercially reasonable best efforts basis consistent with its normal trading and sales practices and applicable state and federal law , rules and regulations and the rules of nasdaq .
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on august 5 , 2014 , tribune publishing became a separate publicly-traded company with its own board of directors and senior management team . shares of tribune publishing common stock are listed on the new york stock exchange under the symbol “ tpub . ” in connection with the separation and distribution , tribune publishing paid a $ 275.0 million cash dividend to tco from a portion of the proceeds of a senior secured credit facility entered into by tribune publishing . in connection with the separation and distribution , tco entered into a transition services agreement ( the “ tsa ” ) and certain other agreements with tribune publishing that govern the relationships between tribune publishing and tco following the separation and distribution . under the tsa , the providing company is generally allowed to fully recover all out-of-pocket costs and expenses it actually incurs in connection with providing the services , plus , in some cases , the allocated direct costs of providing the services , generally without profit . pursuant to the tsa , tco provides tribune publishing with certain specified services on a transitional basis , including support in areas such as human resources , risk management , treasury , technology , legal , real estate , procurement and advertising and marketing in a single market . tribune 28 publishing provides tco with certain specified services on a transitional basis , including in areas such as human resources , technology , legal , procurement , accounting , digital advertising operations , and advertising , marketing , event management and fleet maintenance in a single market . tco has received a private letter ruling ( “ plr ” ) from the internal revenue service ( “ irs ” ) which provides that the distribution of tribune publishing stock and certain related transactions will qualify as tax-free to tco , tribune publishing and tco 's stockholders and warrantholders for u.s. federal income tax purposes . although a plr from the irs generally is binding on the irs , the plr does not rule that the distribution satisfies every requirement for a tax-free distribution , and the parties will rely solely on the opinion of the tco 's special tax counsel that such additional requirements have been satisfied . results of operations year ended december 28 , 2014 compared to the year ended december 29 , 2013 consolidated —operating results for the years ended december 28 , 2014 and december 29 , 2013 are shown in the table below ( in thousands ) . references in this discussion to individual markets include daily newspapers in those markets and their related businesses . replace_table_token_2_th operating revenues decreased 4.9 % , or $ 87.1 million , in the year ended december 28 , 2014 compared to the prior year period due to a $ 91.3 million decline in advertising revenues and a $ 1.8 million decrease in other revenues , partially offset by an increase of $ 6.0 million in circulation revenues . advertising revenues , excluding acquisitions , decreased 10.4 % , or $ 109.7 million , compared to the prior year . income from operations decreased 47.9 % , or $ 79.8 million , in the year ended december 28 , 2014 due mainly to lower advertising revenues and costs associated with the spin-off . 29 operating revenues —total operating revenues , by classification , for the years ended december 28 , 2014 and december 29 , 2013 were as follows ( in thousands ) : replace_table_token_3_th advertising revenues —total advertising revenues decreased 8.7 % , or $ 91.3 million , in the year ended december 28 , 2014 compared to the prior year end . retail advertising fell 9.8 % , or $ 54.5 million , due to declines in most categories . the categories with the largest declines were department stores , specialty merchandise , food/drug stores , general merchandise and electronics categories , which comprised $ 35.3 million of the year-over-year decline . preprint revenues , which are primarily included in retail advertising , decreased 8.9 % , or $ 31.3 million . national advertising revenues fell 13.8 % , or $ 29.5 million , due to declines in several categories , most notably movies , wireless/telecom , financial , and package goods , which together declined by a total of $ 27.1 million . classified advertising revenues decreased 2.6 % , or $ 7.3 million , compared to the prior year period , primarily due to a decrease of $ 12.2 million related to the careerbuilder contract amendment and a decrease of $ 3.3 million related to the classified ventures sale of apartments.com in april 2014 , which resulted in the termination of the apartments.com contract . these declines also resulted in the decrease in digital advertising revenues , which are included in the above categories , and decreased 6.4 % , or $ 12.2 million , in the year ended december 28 , 2014 compared to the prior year . the declines in advertising revenues were partially offset by year-to-date contributions of $ 18.5 million from the baltimore and chicago acquisitions occurring during 2014. circulation revenues —circulation revenues were up 1.4 % , or $ 6.0 million , in the year ended december 28 , 2014 compared to the prior year due largely to an increase of $ 7.8 million from acquisitions . this increase was partially offset by decreases in print edition sales . though total daily net paid circulation , including digital editions , averaged 1.8 million copies for the year ended december 28 , 2014 , up 5.6 % from the comparable prior year period , total sunday net paid circulation , including digital editions , for the year ended december 28 , 2014 averaged 2.9 million copies , down 0.7 % from the comparable prior year period . story_separator_special_tag see “ transfer of real estate ” discussed later in this item 7 for more information on the sale-leaseback transaction . promotion and marketing expense —promotion and marketing expense decreased 2.6 % , or $ 1.4 million , in the year ended december 29 , 2013 due primarily to decreased marketing and general advertising . outside printing and production expense —outside printing and production expense increased 2.6 % , or $ 1.1 million , in the year ended december 29 , 2013 primarily due to increased print production . affiliate fees expense —affiliate fees expense includes fees paid to classified ventures and careerbuilder . affiliate fees expense increased 9.3 % , or $ 2.7 million , in the year ended december 29 , 2013 due primarily to an increase in classified ventures auto fees . other general and administrative expenses —other general and administrative expenses includes repairs and maintenance and other miscellaneous expenses . other general and administrative expenses decreased 0.8 % , or $ 1.0 million , in the year ended december 29 , 2013 due primarily to costs subsequent to the distribution date that were previously included in corporate allocations as well as a one-time litigation reserve from outstanding balances due . the litigation reserve related to the termination of a third-party distribution contract and represents the balance due for work performed prior to the expiration of the agreement . depreciation and amortization expense —depreciation and amortization expense decreased 67.2 % , or $ 58.2 million , in the year ended december 29 , 2013 primarily as a result of the adoption of fresh-start reporting on the effective date , which lowered the value of depreciable properties . loss on equity investments , net —loss on equity investments , net for the years ended december 29 , 2013 and december 30 , 2012 was as follows ( in thousands ) : year ended successor predecessor december 29 , 2013 december 30 , 2012 % change loss on equity investments , net $ ( 1,187 ) $ ( 2,349 ) ( 49.5 % ) loss on equity investments , net totaled $ 1.2 million in the year ended december 29 , 2013 and was down 49.5 % , or $ 1.2 million , from the year ended december 30 , 2012 . the decrease in the loss was primarily due to stronger operating results reported by cips and mct and the absence of losses from an equity method investment that was written down in 2012. write-down of investment —write-down of investment for the years ended december 29 , 2013 and december 30 , 2012 was as follows ( in thousands ) : year ended successor predecessor december 29 , 2013 december 30 , 2012 % change write-down of investment $ — ( 6,141 ) * * represents positive or negative change in excess of 100 % 36 tribune publishing recorded a non-cash pretax charge of $ 6.1 million related to the write-off of the locality labs , llc investment in the year ended december 30 , 2012. this write-off resulted from a decline in the fair value of the investment that tribune publishing determined to be other than temporary . tco retained the investment in locality labs , llc effective with the spin-off . interest income ( expense ) —interest income for the year ended december 29 , 2013 was essentially unchanged from the year ended december 30 , 2012 . interest income ( expense ) for the years ended december 29 , 2013 and december 30 , 2012 was as follows ( in thousands ) : year ended successor predecessor december 29 , 2013 december 30 , 2012 % change interest income ( expense ) , net $ 14 ( 31 ) * * represents positive or negative change in excess of 100 % income tax expense —income tax expense for the years ended december 29 , 2013 and december 30 , 2012 , was as follows ( in thousands ) : year ended successor predecessor december 29 , 2013 december 30 , 2012 % change income tax expense $ 70,992 $ 3,294 * * represents positive or negative change in excess of 100 % for the year ended december 29 , 2013 , tribune publishing recorded income tax expense of $ 71.0 million with an effective tax rate on pretax income of 43.0 % . this rate differs from the u.s. federal statutory rate of 35 % primarily due to state income taxes , net of federal benefit and the impact of non-deductible expenses . for the year ended december 30 , 2012 , tribune publishing recorded income tax expense of $ 3.3 million with an effective tax rate on pretax income of 10.4 % . this rate differs from the u.s. federal statutory rate of 35 % primarily due to the company being a member of a s corporation during the year ended december 30 , 2012 . the company was a member of an entity that converted to a c corporation beginning on december 31 , 2012 which made the company subject to a higher effective tax rate beginning on that date . story_separator_special_tag 30 , 2012 , which primarily represents transactions with tco . dividends on november 4 , 2014 , the board of directors of tribune publishing declared its first quarterly dividend of $ 0.175 per share of common stock outstanding . the $ 4.6 million of dividends were paid on december 10 , 2014 , to stockholders of record on november 19 , 2014. on march 17 , 2015 , the board of directors of tribune publishing declared a dividend of $ 0.175 per share on common stock outstanding , to be paid on may 15 , 2015 , to stockholders of record on april 15 , 2015. as discussed previously under “ spin-off transaction , ” in connection with the spin-off , tribune publishing paid a $ 275.0 million cash dividend to tco from a portion of the proceeds of a
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources prior to the distribution date , tco provided capital , cash management and other treasury services to tribune publishing . as part of these services , a majority of the cash balances were swept from tribune publishing to tco on a daily basis . following the separation , tribune publishing no longer participates in capital management with tco and tribune publishing 's ability to fund its future cash needs depends on its ongoing ability to generate and raise cash in the future . tribune publishing believes that it has adequate resources to fund its operating and financing needs for the foreseeable future . those resources include future cash from operations , approximately $ 50 million of net proceeds from the senior term facility remaining after funding the $ 275 million cash dividend to tco and establishing the $ 27.5 million letter of credit agreement discussed below , and access to borrowings under the senior abl facility discussed below . sources and uses the company expects to fund capital expenditures , interest and principal payments due in 2015 and other operating requirements through a combination of cash flows from operations and available borrowings under the company 's senior abl facility .
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our most advanced investigational clinical programs include : etrasimod , which we are evaluating in a phase 3 program for ulcerative colitis , or uc , a phase 2b/3 program for crohn 's disease , or cd , and a phase 2b program in atopic dermatitis , or ad . we also plan to evaluate etrasimod in a phase 2b program for eosinophilic esophagitis , or eoe , and a phase 2 program in alopecia areata , or aa . olorinab , which we are evaluating for a broad range of visceral pain conditions associated with gastrointestinal diseases and is currently in a phase 2b trial for treatment of abdominal pain associated with irritable bowel syndrome , or ibs . apd418 , which we are evaluating in a phase 1 trial for acute heart failure , or ahf . we continue to leverage our two decades of world-class g-protein-coupled receptor , or gpcr , target discovery research to develop breakthrough drugs and ultimately deliver these to patients with large unmet needs . our long-term pipeline prospects include an enhanced collaboration with beacon discovery across a broad range of immune-mediated inflammatory targets and compounds and the buildout of arena neuroscience to focus on treating neurological conditions with microglial neuroinflammation . we have license agreements or collaborations with various companies , including : united therapeutics ( ralinepag in a phase 3 program for pulmonary arterial hypertension ) , everest medicines limited ( etrasimod in greater china and select countries in asia ) , beacon discovery ( early research platform for gpcr targets ) , boehringer ingelheim international gmbh ( undisclosed orphan gpcr program for central nervous system – preclinical ) , and eisai co. , ltd. and eisai inc. , collectively , eisai ( belviq®/belviq xr® ) . program development update . in january 2020 , we announced acceptance of our investigational new drug application and were granted fast track designation for apd418 . we have initiated a phase 1 clinical trial . in december 2019 , we initiated our phase 2/3 program to evaluate etrasimod in crohn 's disease . the program consists of a phase 2 dose ranging trial that is intended to provide an operationally seamless transition into the phase 3. cultivate is a phase 2b dose-ranging multicenter , randomized , double-blinded , placebo-controlled study to assess the safety and efficacy of once-daily etrasimod in subjects with moderate to severely active crohn 's disease . the primary efficacy endpoint in the cultivate trial will be endoscopic response at week 14 , in addition to a variety of scales of crohn 's disease activity , including abdominal pain and stool 48 frequency . the cultivate trial aims to enroll approximately 225 patients in study sites globally . the phase 3 will include two induction trials with re-randomization of clinical responders into a single maintenanc e trial . in october 2019 , we announced that the first subject has been dosed in the phase 2 advise trial evaluating two dose levels etrasimod in development for the treatment of ad . advise is a multicenter , randomized , double-blinded , placebo-controlled 16-week study ( with a 52-week open-label extension ) to assess the safety and efficacy of once-daily etrasimod in approximately 120 subjects with moderate-to-severe ad . in july 2019 , we announced the first subject dosed in the phase 2 captivate trial evaluating olorinab in development for the treatment of visceral pain associated with ibs . the trial will evaluate the efficacy and safety of three dose levels of olorinab for 12-weeks in approximately 240 subjects experiencing abdominal pain associated with ibs , including ibs with constipation or ibs with diarrhea . captivate is a phase 2 , multi-center , randomized , double-blind , placebo-controlled , 12-week study . we expect data in the second half of 2020. in june 2019 , we announced that the first subject has been dosed in elevate uc 52 , the first of two planned pivotal trials within the phase 3 elevate uc registrational program evaluating etrasimod 2 mg in subjects with moderately to severely active ulcerative colitis . elevate uc 52 is a treat-through trial with a 12-week induction period followed by 40 weeks of maintenance . collaborations and license agreement update . in october 2019 , everest announced that the first subject has been dosed in a phase 3 trial evaluating etrasimod in development for the treatment of ulcerative colitis in greater china and south korea . everest paid us a $ 5.0 million milestone payment earned from this achievement . other corporate events . in january 2019 , we announced that steven spector , our executive vice president , general counsel and secretary , will retire from his positions with arena in march 2020. joan schmidt was appointed as executive vice president , general counsel and secretary and will join arena in march 2020. in general , developing drugs and obtaining marketing approval is a long , uncertain and expensive process , and our ability to execute on our plans and achieve our goals depends on numerous factors , many of which we do not control . to date , we have generated limited revenues . we expect to continue to incur substantial net losses for at least the short term as we advance our clinical development programs and support our collaborators . see the above “ business ” section for a more complete discussion of our business . results of operations we are providing the following summary of our revenues , research and development expenses and general and administrative expenses to supplement the more detailed discussion below . story_separator_special_tag iv ) allocate the transaction price to performance obligations in the contract . if the contract contains a single performance obligation , the entire transaction price is allocated to that performance obligation . contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price . v ) recognize revenue when or as we satisfy a performance obligation . revenue is recognized at the time the related performance obligation is satisfied by transferring the promised goods or services to a customer . we recognize revenue when we transfer control of the goods or services to our customers for an amount that reflects the consideration that we expect to receive in exchange for those services . performance obligations . the following is a description of principal goods and services from which we generate revenue . intellectual property licenses we generate revenue from licensing our intellectual property including know-how and development and commercialization rights . these licenses provide customers with a term-based license to further research , develop and commercialize our internally- 54 discovered drug candidates . the consideration we receive in the form of nonrefundable upfront consideration related to the functional intellectual property licenses is recognized when we transfer such license to the customer unless the license is combined with other goods or services into one performance obligation , in which case the revenue is recognized over a period of tim e based on our estimated pattern in which we satisfy the combined performance obligation . our licensing agreements are generally cancelable . customers have the right to terminate their contracts upon notice . we have the right to terminate the contracts gen erally only if the customer is in breach of the contract and fails to remedy the breach in accordance with the contractual terms . intellectual property sales we generate royalty revenue from sales of our intellectual property . we estimate the future royalty payments and recognize revenue with a corresponding contract asset at a point in time when we transfer the intellectual property to the customer . we periodically reassess our estimate of the future royalty payments and recognize any estimate adjustments as revenue in the current period . research , development and regulatory services we generate revenue from research , development and regulatory services we provide to our customers in connection with the licensed intellectual property . the services we provide to our customers primarily include scientific research activities , preparation for and management of clinical trials , and assistance during the regulatory approval application process . revenue associated with these services is recognized based on our estimate of total consideration to be received for such services and the pattern in which we perform the services . the pattern of performance is generally determined to be the amount of incurred expenses reimbursed by the customer as a percentage of total expected reimbursable expenses associated with the contract . clinical trial expenses . we accrue clinical trial expenses based on work performed . in determining the amount to accrue , we rely on estimates of total costs incurred based on enrollment , the completion of trials and other events . we follow this method because we believe reasonably dependable estimates of the costs applicable to various stages of a clinical trial can be made . however , the actual costs and timing of clinical trials are uncertain , subject to risks and may change depending on a number of factors . differences between the actual clinical trial costs and the estimated clinical trial costs that we have accrued in any prior period are recognized in the subsequent period in which the actual costs become known . historically , these differences have not been material ; however , material differences could occur in the future . share-based compensation . our share-based awards are measured at fair value and recognized over the requisite service or performance period . we estimate the fair value of each stock option on the date of grant using the black-scholes option pricing model which requires the input of subjective assumptions , including price volatility of the underlying stock , risk-free interest rate , dividend yield , and expected life of the option . expected volatility is computed using historical volatility for a period equal to the expected term . the expected term of options is determined based on historical experience of similar awards , giving consideration to the contractual terms of the share-based awards , vesting schedules and post-vesting terminations . the risk-free interest rates are based on the us treasury yield curve , with a remaining term approximately equal to the expected term used in the option pricing model . we account for the forfeitures in the period they occur . the fair value of each restricted stock unit award is determined based on the market price of the underlying common stock on the date of the grant . we estimate the fair value of restricted stock unit awards that include market-based performance conditions on the date of grant using a monte carlo simulation model , based on the market price of the underlying common stock , expected performance measurement period , expected stock price volatility and expected risk-free interest rate . income taxes . significant judgment is required by management to determine our provision for income taxes , our deferred tax assets and liabilities , and the valuation allowance to record against our net deferred tax assets , which are based on complex and evolving tax regulations throughout the world . our tax calculation is impacted by tax rates in the jurisdictions in which we are subject to tax and the relative amount of income earned in each jurisdiction . our deferred tax assets and liabilities are determined using the enacted tax rates expected to be in effect for the years in which those tax assets are expected to be realized . the effect of an uncertain income tax position is
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | short term liquidity at december 31 , 2019 , we had $ 1.1 billion in cash and cash equivalents , and available-for-sale investments . our potential sources of liquidity in the short term include ( i ) milestone and other payments from collaborators , ( ii ) entering into new collaboration , licensing or commercial agreements for one or more of our drug candidates or programs , ( iii ) the lease of our facilities or sale of other assets and ( iv ) sale of equity , issuance of debt or other transactions . long term liquidity it will require substantial cash to achieve our objectives of discovering , developing and commercializing drugs , and this process typically takes many years and potentially several hundreds of millions of dollars for an individual drug . we may not have adequate available cash , or assets that could be readily turned into cash , to meet these objectives in the long term . we will need to obtain significant funds under our existing collaborations , under new collaboration , licensing or other commercial agreements for one or more of our drug candidates and programs or patent portfolios , or from other potential sources of liquidity , which may include the sale of equity , issuance of debt or other transactions . in addition to potential payments from our current collaborators , as well as funds from public and private financial markets , potential sources of liquidity in the long term include ( i ) upfront , milestone , royalty and other payments from any future collaborators or licensees and ( ii ) revenues from sales of any drugs we obtain regulatory approval to commercialize on our own .
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these purchases are necessary because large portions of our members ' loads in nebraska are located in the eastern interconnection and are generally isolated from our facilities that are located in the western interconnection . these long‑term purchase commitments represent a majority of our electric power purchases . at the same time , we have agreed to supply electric power to non‑members . in addition , we utilize market purchases to optimize our position by routinely purchasing power when the market price is lower than our incremental production cost and routinely selling power to the short‑term market when we have excess power available above our firm commitments to both members and non‑members . we also use short-term energy purchases during periods of generation outages at our facilities . 2016 developments kcec withdrawal . on june 30 , 2016 , kcec withdrew from membership in us pursuant to the withdrawal agreement . the withdrawal agreement provided for the termination of the wholesale electric service contract between us and kcec that extended through 2040 and the withdrawal of kcec from membership in us . as part of the withdrawal agreement , we received $ 37 million net cash , which consisted of $ 49.5 million as an early termination fee for withdrawing from membership in us offset by $ 12.5 million for the retirement of kcec 's patronage capital . this resulted in $ 47.6 million in other income , which was deferred by our board , and is recorded in deferred credits and other liabilities on the statement of financial position . for each of the fiscal years ending in 2015 , 2014 , and 2013 and the six months ended june 30 , 2016 , kcec constituted an average of approximately 2 percent of our revenue from member sales . generating station retirements . on september 1 , 2016 , we announced that the owners of craig station unit 1 reached an agreement with the colorado department of public health and environment , epa , wildearth guardians and the national parks conservation association to revise the colorado visibility and regional haze state implementation plan . under the proposed revision to the sip , the owners of craig station unit 1 intend to retire craig station unit 1 by december 31 , 2025. the retirement date was previously estimated to be december 31 , 2051. we are the operator of craig station and own 24 percent of craig station unit 1. craig station unit 2 and unit 3 will continue to operate . our share of craig station unit 1 is 102 megawatts with a net book value of $ 28.9 million as of december 31 , 2016. the shortened life increased depreciation expense in the amount of $ 0.8 million for the period september 1 , 2016 through december 31 , 2016. as part of the above mentioned agreement on proposed revisions to the sip , as previously disclosed , we intend to retire the nucla generating station by december 31 , 2022. the retirement date was previously estimated to be december 31 , 2049. we are the operator and sole owner of nucla generating station with a net book value of $ 62.6 million as of december 31 , 2016. the shortened life increased depreciation expense in the amount of $ 2.8 million for the period september 1 , 2016 through december 31 , 2016 , and increased the asset retirement obligation in the amount of $ 2.9 million as of december 31 , 2016. the new horizon mine , which supplies coal to nucla generating station , will cease coal production with the retirement of nucla generating station . reclamation efforts at the new horizon mine will continue . under the federal regional haze regulations , the state of colorado develops and implements a sip to address visibility in national parks and wilderness areas . colorado 's plan requires reductions of nox emissions from generation sources . several procedural steps are required to implement the terms of the agreement , including approval by the state legislature and the epa . critical accounting policies the preparation of our financial statements in conformity with gaap requires that our management make estimates and assumptions that affect the amounts reported in our consolidated financial statements . we base these estimates and assumptions on information available as of the date of the financial statements and they are not necessarily indicative of the results to be expected for the year . we consider the following accounting policies to be critical accounting policies due to the estimation involved or due to the particular significance they have on our consolidated financial statements . 39 accounting for rate regulation . we are a rate-regulated entity and , as a result , are subject to the accounting requirements of accounting for regulated operations . in accordance with these accounting requirements , some revenues and expenses have been deferred at the discretion of our board , which has budgetary and rate‑setting authority , if it is probable that these amounts will be refunded or recovered through future rates . regulatory assets are costs we expect to recover from members based on rates approved by our board in accordance with our rate policy . regulatory liabilities represent probable future reductions in rates associated with amounts that are expected to be refunded to members based on rates approved by our board in accordance with our rate policy . we recognize regulatory assets and liabilities as expenses or as a reduction in expenses concurrent with their recovery in rates . leases . the accounting for lease transactions in conformity with gaap requires management to make various assumptions , including the discount rate , the fair market value of the leased assets and the estimated useful life , in order to determine whether a lease should be classified as operating or capital . story_separator_special_tag the increase was partially offset by a decrease in long-term firm revenue of $ 4.3 million due to the expiration of several long-term power sales arrangements on december 31 , 2015 and march 31 , 2016 that were not renewed . other operating revenue consists primarily of wheeling , transmission and lease revenues , coal sales , and revenue from supplying steam and water to a paper manufacturer located adjacent to the escalante station . wheeling revenue is received when we charge other energy companies for transmitting electricity over our transmission lines . transmission revenue is from our membership in the spp , a regional transmission organization , which we joined on january 1 , 2016. the lease revenue is primarily from certain power sales arrangements that are required to be accounted for as operating leases since the arrangements are in substance leases because they convey to others the right to use power generating equipment for a stated period of time . coal sales revenue results from the sale of a portion of the coal from the colowyo mine per a contract ending in 2017 to other joint owners in the yampa project . other revenue decreased $ 2.5 million to $ 87.0 million in 2016 compared to $ 89.5 million in 2015. the decrease in other operating revenue was primarily due to a decrease in lease revenue of $ 12.6 million due to the expiration of power sales arrangements at our knutson and limon generating stations . this decrease was partially offset by a $ 7.9 million increase in transmission revenue resulting from our membership in the spp and a $ 1.1 million increase in wheeling revenue . 43 operating expenses purchased power expense increased $ 36.3 million , or 11.9 percent , to $ 341.3 million in 2016 compared to $ 305.0 million in 2015. the increase in expense was primarily due to higher renewable energy purchases resulting from two new facilities in 2016 with expense of $ 13.3 million and an increase in firm purchased power with expense of $ 28.8 million primarily due to a power sales arrangement that began in june 2016. in addition , there was also a 6.6 percent increase in the average cost per mwh of purchased power ( partially resulting from the august 2016 basin rate increase ) . fuel expense includes coal , natural gas and other fuel consumed at the generating stations . fuel expense increased $ 4.1 million to $ 235.6 million in 2016 compared to $ 231.5 million for the same period in 2015. the increase in expense was primarily due to lower coal expense in the second quarter of 2015 resulting from the one-time recognition of $ 24.4 million as a reduction to fuel expense because of the bnsf rate settlement . excluding the effect of the bnsf rate settlement , fuel expense decreased $ 20.3 million to $ 235.6 million in 2016 compared to $ 255.9 million for the same period in 2015. the decrease was primarily due to reduced coal consumption due to a decrease in generation of 587,253 mwhs , or 4.9 percent in 2016 compared to 2015. production expense decreased $ 17.4 million , or 7.4 percent , to $ 218.0 million in 2016 compared to $ 235.4 million for the same period in 2015. the decrease in expense was primarily due to a decrease in maintenance outages in 2016 ( generation maintenance expense was lower in 2016 than in 2015 due to scheduled generation maintenance expenses that occurred in 2015 at craig station and laramie river generating station ) . this decrease was partially offset by a maintenance outage at springerville unit 3 during the fourth quarter of 2016. depreciation , amortization and depletion expense increased $ 21.3 million , or 13.9 percent , to $ 174.0 million in 2016 compared to $ 152.7 million for the same period in 2015. depreciation expense increased in 2016 due to the shortened lives at three generating stations . san juan generating station unit 3 depreciation expense increased $ 3.2 million in 2016 compared to 2015 due to a shortened life associated with the anticipated december 31 , 2017 retirement date of the unit . beginning september 1 , 2016 , the nucla generating station depreciation expense increased $ 2.8 million and craig station unit 1 increased $ 0.8 million for 2016 due to the shortened lives associated with the anticipated retirement dates by december 31 , 2022 and december 31 , 2025 , respectively . the remaining increase in expense was primarily due to additions of equipment throughout our transmission system and at our generating stations . effective january 1 , 2017 , we adopted depreciation rates that reflect rates determined in a depreciation rate study completed in january 2017 for our transmission plant and most of our general plant . we expect that the new rates will result in a reduction in 2017 depreciation expense of approximately $ 21.0 million . it is also anticipated that a depreciation rate study will be performed and completed during 2017 for most of our generation plant and that these rates will be adopted prospectively in 2017 from the date the study is completed . we do not currently know what the impact of this study will be on our 2017 depreciation expense . other income capital credits from cooperatives increased $ 11.1 million , or 120.7 percent , to $ 20.3 million in 2016 compared to $ 9.2 million for the same period in 2015. the increase was primarily due to a patronage allocation from basin of $ 14.4 million in 2016 compared to $ 4.6 million for the same period in 2015. income taxes income taxes were $ ( 1.4 ) million in 2016 compared to $ 0 for the same period in 2015. this resulted from a $ 1.9 million alternative minimum tax credit in lieu of bonus depreciation , partially offset by the current alternative minimum tax expense of $ 0.5 million
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity we finance our operations , working capital needs and capital expenditures from operating revenues and issuance of debt . as of december 31 , 2016 , we had $ 165.9 million in cash and cash equivalents . our committed credit arrangement as of december 31 , 2016 is as follows ( dollars in thousands ) : available authorized december 31 , amount 2016 revolving credit agreement $ 750,000 ( 1 ) $ 582,357 ( 2 ) ( 1 ) the amount of this facility that can be used to support commercial paper is limited to $ 500 million . ( 2 ) of the portion of this facility that was unavailable at december 31 , 2016 , $ 47.7 million was related to a letter of credit issued to support variable rate demand bonds and $ 119.9 million was dedicated to support outstanding commercial paper . the revolving credit agreement has aggregate commitments of $ 750 million which includes a swingline sublimit of $ 100 million , a letter of credit sublimit of $ 200 million , and a commercial paper back-up sublimit of $ 500 million , of which $ 100 million of the swingline sublimit , $ 152 million of the letter of credit sublimit , and $ 380.1 million of the commercial paper back-up sublimit remained available as of december 31 , 2016. under our commercial paper program , which we began in may 2016 , our board authorized us to issue commercial paper in amounts that do not exceed the commercial paper back-up sublimit under our revolving credit agreement , which is the lesser of $ 500 million or the amount available under the revolving credit agreement , thereby providing 100 % dedicated support for any commercial paper outstanding .
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as a result of this closure , we incurred $ 0.5 million of severance expense , $ 0.3 million of lease impairment expense and $ 0.1 million of vendor contract related costs , offset by $ 1.3 million of restricted stock forfeitures . the severance expense and restricted stock forfeitures were recognized within `` employee compensation and benefits , `` the lease impairment expense was recognized in `` general and administrative , `` and the vendor contract costs were recognized within `` information technology `` on the consolidated statements of comprehensive income ( loss ) . additionally , we repatriated previously undistributed income to the united states from canada and incurred $ 1.1 million of canadian withholding taxes ( net of u.s. federal tax deduction ) . the withholding taxes were recognized in `` income tax expense `` on the consolidated statements of comprehensive income ( loss ) . westwood trust provides trust and custodial services and participation in common trust funds to institutions and high net worth individuals . our revenues are generally derived from fees based on a percentage of aum . westwood international advisors provided investment advisory services to an irish investment company authorized pursuant to the european communities ( undertakings for collective investment in transferable securities ) regulation 2011 ( as amended ) ( the “ ucits fund ” ) , which was liquidated in june 2020. we continue to closely monitor the impact of the covid-19 pandemic on all aspects of our business , particularly the impact on global stock markets . in 2020 we took a number of precautionary measures designed to help minimize the risk of the spread of the virus to our employees , including suspending all non-essential travel for our employees and encouraging our employees to work remotely . the investments we have made in technology over the past several years , particularly our significant investments in cloud-based systems and business continuity planning , have allowed our entire team to serve our clients from their homes . while our ability to meet with clients declined at the beginning of the pandemic , we were able to rebound in the second half of the year as our clients embraced digital interactions . our revenues are generally derived from fees based on a percentage of aum , and at december 31 , 2020 , westwood management and westwood trust collectively managed assets valued at approximately $ 13.0 billion . we have established a track record of delivering competitive , risk-adjusted returns for our clients . with respect to most of our client aum , we utilize a “ value ” investment style focused on achieving superior long-term , risk-adjusted returns by investing in companies with high levels of free cash flow , improving returns on equity and strengthening balance sheets that are well positioned for growth but whose value is not fully recognized in the marketplace . this investment approach is designed to preserve capital during unfavorable periods and provide superior real returns over the long term . our investment teams have significant industry experience . our investment team members have average investment experience of over fifteen years . we have focused on building a foundation in terms of personnel and infrastructure to support a much larger business . we have also developed investment strategies that we believe will be desirable within our target institutional , wealth management and intermediary markets . the cost of developing new products and growing the organization as a whole has resulted in our incurring expenses that , in some cases , have not generated significant offsetting revenues . while we continue to evolve our products , we believe that the appropriate foundation and products are in place such that investors will recognize the value in these products and services , thereby generating new revenue streams for westwood . however , there is no guarantee that this will occur . 2020 highlights the following items impacted the year ended december 31 , 2020 : 21 aum as of december 31 , 2020 was $ 13.0 billion , a 14 % decrease compared to december 31 , 2019. quarterly average aum decreased 21 % to $ 12.4 billion for 2020 compared to 2019 , which contributed to the 23 % decrease in total revenue from 2019. our largecap value , smidcap , allcap value , high income , alternative income , income opportunity and total return strategies exhibited strong performance by beating their primary benchmarks for the year . we had a $ 4.2 million non-cash reclassification of foreign currency translation adjustments from accumulated other comprehensive income ( loss ) to net income ( loss ) , with no impact on stockholder 's equity , following the closure of westwood international advisors . we had a $ 3.4 million non-cash write-off of historical advisory goodwill due to to the company 's lower market capitalization and advisory net outflows . the effective tax rate decreased to ( 17.9 ) % for 2020 compared to 37.1 % for 2019 , primarily due to the closure of our westwood international advisors office ( net of withholding tax paid to canada ) , permanent differences between book and tax restricted stock expense based on a decrease in our stock price between the grant and vesting dates , and permanent differences related to goodwill impairment , partially offset by a state tax refund . we repurchased 679,756 shares of our common stock for an aggregate purchase price of $ 13.0 million . our financial position remains strong with liquid cash and short-term investments of $ 82.6 million and no debt as of december 31 , 2020 . revenues we derive our revenues from investment advisory fees , trust fees and other revenues . our advisory fees are generated by westwood management and westwood international advisors ( prior to its closure , effective september 30 , 2020 ) , which manage client accounts under investment advisory and sub-advisory agreements . story_separator_special_tag in applying accounting principles , we often must make individual estimates and assumptions regarding expected outcomes or uncertainties . our estimates , judgments and assumptions are continually evaluated based on available information and experience . because of the use of estimates inherent in the financial reporting process , actual results could differ from those estimates . we believe the following are areas where the degree of judgment and complexity in determining amounts recorded in our consolidated financial statements make accounting policies critical . consolidation we assess each legal entity that we manage to determine whether consolidation is appropriate at the onset of the relationship . we first determine whether the entity is a variable interest entity ( “ vie ” ) , or a voting interest entity ( “ voe ” ) , under gaap and whether we have a controlling financial interest in the entity . assessing whether or not an entity is a voe or vie and if it requires consolidation involves judgment and analysis . factors considered in this assessment include , but are not limited to , the legal organization of the entity , our equity ownership and contractual involvement with the entity and any related party or de facto agent implications of our involvement with the entity . we reconsider whether entities are a vie or voe 30 whenever contractual arrangements change , the entity receives additional equity or returns equity to its investors or changes in facts and circumstances occur that change the investors ' abilities to direct the activities of the entity . a vie is an entity in which ( i ) the total equity investment at risk is not sufficient to enable the entity to finance its activities without subordinated financial support , ( ii ) the at-risk equity holders , as a group , lack the characteristics of a controlling financial interest or ( iii ) the entity is structured with disproportionate voting rights , and substantially all of the activities are conducted on behalf of an investor with disproportionately few voting rights . that is , the at-risk equity holders do not have the obligation to absorb significant losses , the right to receive residual returns and the right to direct the activities of the entity that most significantly impact the entity 's economic performance . an enterprise must consolidate all vies of which it is the primary beneficiary . we determine if a sponsored investment meets the definition of a vie by considering whether the fund 's equity investment at risk is sufficient to finance its activities without additional subordinated financial support and whether the fund 's at-risk equity holders absorb any losses , have the right to receive residual returns and have the right to direct the activities of the entity most responsible for the entity 's economic performance . the primary beneficiary of a vie is defined as the party that , considering the involvement of related parties and de facto agents , has ( i ) the power to direct the activities of the vie that most significantly affect its economic performance and ( ii ) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the vie . this evaluation is updated on a continuing basis . a voe is an entity that is outside the scope of the guidance for vies . consolidation of a voe is required when a reporting entity owns a controlling financial interest in a voe . ownership of a majority of the voting interests is the usual condition for a controlling financial interest . we evaluated ( i ) our relationship as sponsor of the common trust funds ( “ ctfs ” ) and managing member of the private equity funds westwood hospitality fund i , llc and westwood technology opportunities fund i , lp ( collectively the “ private funds ” ) , ( ii ) our advisory relationships with the westwood funds® and ( iii ) our investments in investcloud and charis discussed in note 5 “ investments ” to our consolidated financial statements included in part ii . item 8 “ financial statements and supplementary data ” ( “ private equity ” ) to determine whether each of these entities is a variable interest entity ( “ vie ” ) or voting ownership entity ( “ voe ” ) . based on our analyses , we determined that the ctfs and private funds were vies , as the at-risk equity holders do not have the ability to direct the activities that most significantly impact the entities ' economic performance , and the company and its representatives have a majority control of the entities ' respective boards of directors and can influence the respective entities ' management and affairs . based on our analyses , we determined the westwood funds® and private equity ( i ) have sufficient equity at risk to finance the entities ' activities independently , ( ii ) have the obligation to absorb losses , the right to receive residual returns and the right to direct the activities of the entities that most significantly impact the entities ' economic performance and ( iii ) are not structured with disproportionate voting rights . based on our analyses of our investments in these entities for the periods ending december 31 , 2020 and 2019 , we have not consolidated the ctfs or private funds under the vie method or the westwood funds® or private equity under the voe method , and therefore the financial results of these entities are not included in the company 's consolidated financial results . goodwill goodwill is tested at least annually for impairment . we assess the recoverability of the carrying amount of goodwill either qualitatively or quantitatively as of july 1 of each fiscal year , or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources replace_table_token_12_th we fund our operations and cash requirements with cash generated from operating activities . we may also use cash from operations to pay dividends to our stockholders . we suspended dividends in the second quarter of 2020 in order to preserve capital and provide additional financial flexibility amid the uncertainties created by the covid-19 pandemic . as of december 31 , 2020 and 2019 , we had no debt . the changes in net cash provided by operating activities generally reflect changes in earnings plus the effects of non-cash items and changes in working capital , including liquidation of investments used to cover current liabilities . changes in working capital , especially accounts receivable and accounts payable , are generally the result of timing differences between collection of fees billed and payment of operating expenses . we had cash and short-term investments of $ 82.6 million and $ 100.1 million as of december 31 , 2020 and 2019 , respectively . on july 27 , 2020 , westwood 's board of directors approved the closure of westwood international advisors , effective september 30 , 2020. following that decision by the board of directors , we repatriated over $ 37.0 million to the united states and primarily invested the cash in short-term investments . at december 31 , 2020 and 2019 , working capital aggregated $ 84.5 million and $ 95.6 million , respectively .
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during 2020 , we recorded charges to earnings of $ 34.5 million for withdrawal events at multiemployer pension funds to which we contribute . as we obtain updated information regarding multiemployer pension funds , the factors used in deriving our estimated withdrawal liabilities will be subject to change , which may adversely impact our reserves for withdrawal costs . fire-damage related costs . during the three months ended december 31 , 2019 , certain of our owned and operated facilities in our group 1 segment were impacted by separate fire-related events . although our business may incur fire-related damage to our leased or owned property , plant and equipment from time to time , we specifically identify in the table above fire-damage related costs of $ 7.7 million incurred during 2019 , due to its magnitude . bridgeton insurance recovery . during 2020 and 2019 , we recognized insurance recoveries of $ 10.8 million and $ 24.0 million , respectively , related to our closed bridgeton landfill in missouri , which we recognized as a reduction of remediation expenses in our cost of operations . incremental contract start-up costs - large municipal contract . although our business regularly incurs startup costs under municipal contracts , we specifically identify in the table above the startup costs with respect to an individual municipal contract ( and do not adjust for other startup costs under other contracts in 2020 or 2019 ) . we do this because of the magnitude of the costs involved with this particular municipal contract and the unusual nature for the time period in which they were incurred . during 2019 , we incurred costs of $ 0.7 million related to the implementation of this large municipal contract . these costs did not meet the capitalization criteria prescribed by accounting standards update 2014-09 , revenue from contracts with customers ( topic 606 ) and other assets and deferred costs-contracts with customers ( subtopic 340-40 ) . results of operations revenue we generate revenue by providing environmental services to our customers , including the collection and processing of recyclable materials , collection , transfer and disposal of non-hazardous solid waste , and other environmental solutions . our residential , small-container and large-container collection operations in some markets are based on long-term contracts with municipalities . certain of our municipal contracts have annual price escalation clauses that are tied to changes in an underlying base index such as a consumer price index . we generally provide small-container and large-container collection services to customers under contracts with terms up to three years . our transfer stations and landfills generate revenue from disposal or tipping fees charged to third parties . our recycling processing centers generate revenue from tipping fees charged to third parties and the sale of recycled commodities . our revenue from environmental solutions consists mainly of fees we charge for disposal of non-hazardous solid and liquid material and in-plant services , such as transportation and logistics . environmental solutions waste is generated from the by-product of oil and natural gas exploration and production activity . additionally , it is generated by the daily operations of industrial , petrochemical and refining facilities , including maintenance , plant turnarounds and capital projects . other non-core revenue consists primarily of revenue from national accounts , which represents the portion of revenue generated from nationwide or regional contracts in markets outside our operating areas where the associated material handling is subcontracted to local operators . consequently , substantially all of this revenue is offset with related subcontract costs , which are recorded in cost of operations . 35 table of contents the following table reflects our revenue by service line for the years ended december 31 , 2020 and 2019 ( in millions of dollars and as a percentage of revenue ) : replace_table_token_7_th the following table reflects changes in components of our revenue , as a percentage of total revenue , for the years ended december 31 , 2020 and 2019 : replace_table_token_8_th average yield is defined as revenue growth from the change in average price per unit of service , expressed as a percentage . core price is defined as price increases to our customers and fees , excluding fuel recovery , net of price decreases to retain customers . we also measure changes in average yield and core price as a percentage of related-business revenue , defined as total revenue excluding recycled commodities and fuel recovery fees , to determine the effectiveness of our pricing strategies . average yield as a percentage of related-business revenue was 2.8 % and 2.9 % for 2020 and 2019 , respectively . core price as a percentage of related-business revenue was 5.0 % for both 2020 and 2019. during 2020 , we experienced the following changes in our revenue as compared to 2019 : average yield increased revenue by 2.6 % due to positive pricing changes in all lines of business . the fuel recovery fee program , which mitigates our exposure to increases in fuel prices , decreased revenue by ( 0.7 ) % , primarily due to a decrease in fuel prices compared to the same period in 2019 and a decrease in the total revenue subject to the fuel recovery fees . volume decreased revenue by ( 3.1 ) % primarily due to a reduction in service levels attributable to the covid-19 36 table of contents pandemic . we experienced volume declines in our small- and large-container lines of business as a result of a reduction in the frequency of pickups or a temporary pause in service for certain of our customers . in addition , we experienced declines in special waste volumes disposed at certain of our landfills and a decrease in volumes at our transfer stations . story_separator_special_tag as a result of recent changes in u.s. tax law , the current macroeconomic environment and our ongoing efforts to streamline and maximize the efficiency of our tax footprint , we completed our restructuring plan which optimized our tax structure to better align with our overall operational footprint . this resulted in a reduction to our valuation allowance of $ 17.2 million for the year and three months ended december 31 , 2020. we have deferred tax assets related to state net operating loss carryforwards of approximately $ 99 million available as of december 31 , 2020. these state net operating loss carryforwards expire at various times between 2021 and 2040. we believe that it is more likely than not that the benefit from some of our state net operating loss carryforwards will not be realized due to limitations on these loss carryforwards in certain states . in recognition of this risk , as of december 31 , 2020 , we have provided a valuation allowance of approximately $ 44 million . reportable segments in december 2020 , our senior management began evaluating , overseeing and managing the financial performance of our operations through three operating segments . group 1 primarily consists of geographic areas located in the western united states , and group 2 primarily consists of geographic areas located in the southeastern and mid-western united states , and the eastern seaboard of the united states . our environmental solutions operating segment , which provides waste management solutions for daily operations of industrial , petrochemical and refining facilities , is aggregated with corporate entities and other as it only represents approximately 1 % of our consolidated revenue . each of our reportable segments provides integrated environmental services , including collection , transfer , recycling , and disposal services . summarized financial information concerning our reportable segments for the years ended december 31 , 2020 and 2019 is shown in the following table ( in millions of dollars and as a percentage of revenue in the case of operating margin ) : replace_table_token_13_th financial information for the year ended december 31 , 2019 reflects the transfer of our environmental solutions operating segment from group 2 to corporate entities and other . corporate entities and other include legal , tax , treasury , information technology , risk management , human resources , closed landfills , environmental solutions , and other administrative functions . national accounts revenue included in corporate entities represents the portion of revenue generated from nationwide and regional contracts in markets outside our operating areas where the associated material handling is subcontracted to local 41 table of contents operators . consequently , substantially all of this revenue is offset with related subcontract costs , which are recorded in cost of operations . significant changes in the revenue and operating margins of our reportable segments for 2020 compared to 2019 are discussed below . group 1 revenue for 2020 increased 1.1 % from 2019 primarily due to an increase in average yield in all lines of business and one additional workday during 2020. this increase was partially offset by volume declines in our small- and large-container collection , transfer station , and landfill lines of business . operating income for group 1 increased from $ 1,231.7 million for 2019 , or a 24.6 % operating margin , to $ 1,343.3 million for 2020 , or a 26.6 % operating margin . the following cost categories impacted our operating income margin : cost of operations favorably impacted operating income margin during 2020 , primarily due to a decrease in labor and related benefits , maintenance and repairs expenses , disposal fees and taxes , and fuel costs as a result of decreased service levels attributable to the covid-19 pandemic . fuel costs further decreased due to cng tax credits that were enacted in december 2019 and recognized during 2020. landfill depletion and amortization favorably impacted operating income margin during 2020 , primarily due to lower landfill disposal volumes primarily driven by decreased special waste volumes , and by favorable amortization adjustments to our asset retirement obligations during 2020 compared to the adjustments recognized in 2019. depreciation unfavorably impacted operating margin , primarily due to additional assets acquired with our acquisitions . group 2 revenue for 2020 decreased ( 3.1 ) % from 2019 due to volume declines in our collection lines of business as well as a decrease in special waste volumes in our landfill line of business . these decreases were partially offset by an increase in average yield in all lines of business , increases in construction and demolition and municipal solid waste volumes in our landfill line of business , and one additional workday during 2020. operating income for group 2 increased from $ 926.5 million for 2019 , or an 18.7 % operating margin , to $ 966.4 million for 2020 , or a 20.2 % operating margin . the following cost categories impacted our operating income margin : cost of operations favorably impacted operating income margin during 2020 , primarily due to a decrease in labor and related benefits , transfer and disposal costs , maintenance and repairs expenses and fuel costs as a result of decreased service levels attributable to the covid-19 pandemic . fuel costs further decreased due to cng tax credits that were enacted in december 2019 and recognized during 2020. landfill depletion and amortization unfavorably impacted operating income margin during 2020 , primarily due to an increase in our overall average depletion rate , and by decreased favorable amortization adjustments to our asset retirement obligations during 2020 compared to the adjustments recognized in 2019. depreciation unfavorably impacted operating income margin , primarily due to additional assets acquired with our acquisitions . corporate entities and other operating loss in our corporate entities and other segment increased from $ 371.0 million for 2019 to $ 600.6 million for 2020. during 2020 , we recorded a net loss on business divestitures and impairments of $
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash flows used in financing activities the most significant items affecting the comparison of our cash flows used in financing activities for 2020 and 2019 are summarized below : during 2020 , we issued $ 2,750.0 million of senior notes for cash proceeds , net of discounts and fees of $ 2,716.1 million . during 2019 , we issued $ 900.0 million of senior notes for cash proceeds , net of discounts and fees of $ 891.1 million . net payments of notes payable and long-term debt were $ 2,595.9 million during 2020 , compared to net payments of $ 581.4 million in 2019. for a more detailed discussion , see the financial condition section of this management 's discussion and analysis of financial condition and results of operations . during 2020 , we paid $ 99.1 million in cash premiums on the redemption of senior notes . during 2020 , we repurchased 1.2 million shares of our stock for $ 98.8 million . during 2019 , we repurchased 4.9 million shares of our stock for $ 399.4 million . in july 2020 , our board of directors approved an increase in our quarterly dividend to $ 0.425 per share . dividends paid were $ 522.5 million and $ 491.2 million for 2020 and 2019 , respectively . during 2020 and 2019 , cash paid for purchase price holdback releases and contingent purchase price related to acquisitions was $ 15.5 million and $ 17.2 million , respectively .
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the quality and pricing of our data and access services ; the demand by companies and other organizations for the products sold by our corporate solutions business , which is largely driven by the overall state of the economy and the attractiveness of our offerings ; 35 the demand for licensed exchange traded products and other financial products based on our indices as well as changes to the underlying assets associated with existing licensed financial products ; the challenges created by the automation of market data consumption , including competition and the quickly evolving nature of the market data business ; the outlook of our technology customers for capital market activity ; continuing pressure in transaction fee pricing due to intense competition in the u.s. and europe ; competition for listings and trading related to pricing , product features and service offerings ; regulatory changes imposed upon certain types of instruments , transactions , or capital market participants ; and technological advancements and customers ' demand for speed , efficiency , and reliability . currently our business drivers are defined by investors ' and companies ' cautiously optimistic outlook about the pace of global economic recovery . although some major market indices reached record levels in 2013 , european equity markets have not performed as well and remain below their pre-financial crisis highs . as the global economy continues to avoid the intermittent crisis environments of 2010 through 2012 , we are experiencing modest growth in many of our non-transactional businesses . since a number of significant structural issues continue to confront the global economy , instability could return at any time , resulting in an increased level of market volatility , oscillating trading volumes , and a return of market uncertainty . in contrast , many of the largest customers of our transactional businesses continue to adapt their business models as they address the implementation of regulatory changes initiated following the global financial crisis , leading to lower trading volumes . in 2013 , the u.s. and european cash equity trading businesses and the european derivative trading and clearing business experienced a decrease in volumes due to lower overall industry trading volumes . steady performances by major stock market indices and consistently low volatility throughout 2013 helped to boost the u.s. ipo market . additional impacts on our business drivers included the international enactment and implementation of new legislative and regulatory initiatives , and the continued rapid evolution and deployment of new technology in the financial services industry . the business environment that influenced our financial performance for 2013 may be characterized as follows : a strong pace of new equity issuance in the u.s. in 2013 with 126 ipos on the nasdaq stock market , up from 72 in 2012. ipo activity improved in the nordics with 14 ipos in 2013 compared to six ipos in 2012 on the exchanges that comprise nasdaq omx nordic and nasdaq omx baltic ; average daily matched equity options volume for our three u.s. options exchanges increased 3 . 3 % in 2013 compared to 2012 , while overall average daily u.s. options volume increased 0.7 % . the increase in our average daily matched options volume was driven by an increase in our combined matched market share for our three u.s. options exchanges of 0.7 percentage points as well as a slight increase in overall u.s. options volume ; average daily matched share volume for all of our u.s. cash equity markets decreased by 13 . 1 % , while average daily u.s. share volume fell by 3.9 % relative to 2012. volatility , often a driver of volume levels , was lower in 2013 than 2012. losses in matched share volume were due to both lower u.s. consolidated volume and a decrease in matched market share from 20.8 % in 2012 ( nasdaq 17.0 % ; nasdaq omx bx 2.7 % ; nasdaq omx psx 1.1 % ) to 18.8 % in 2013 ( nasdaq 15.6 % ; nasdaq omx bx 2.5 % ; nasdaq omx psx 0.7 % ) ; continuous cost focus in the industry has further increased the growth of our nasdaq basic product , which is a low cost alternative to the consolidated tape . the number of nasdaq basic subscribers increased 128 % in 2013 compared to 2012 ; an increase in information services revenues of 8.9 % in 2013 relative to 2012 , primarily due to increases in both u.s. market data products and index licensing and services revenues ; a 4.4 % decrease relative to 2012 in the average daily number of cash equity trades on our nordic and baltic exchanges ; a 6.9 % increase relative to 2012 in the sek value of cash equity transactions on our nordic and baltic exchanges ; a decline of 1.0 % experienced by our nordic and baltic exchanges relative to 2012 in the number of traded and cleared options , futures and fixed-income contracts ( excluding finnish option contracts traded on eurex ) ; intense competition among u.s. exchanges and dealer-owned systems for trading volume and strong competition between multilateral trading facilities and exchanges in europe for trading volume ; globalization of exchanges , customers and competitors extending the competitive horizon beyond national markets ; and market trends requiring continued investment in technology to meet customers ' demands for speed , capacity , and reliability as markets adapt to a global financial industry , as increasing numbers of new companies are created , and as emerging countries show ongoing interest in developing their financial markets . story_separator_special_tag for u.s. derivative trading , we credit a portion of the per share execution charge to the market participant that provides the liquidity and record the transaction rebate as a cost of revenues in the consolidated statements of income . these transaction rebates are paid on a monthly basis and the amounts due are included in accounts payable and accrued expenses in the consolidated balance sheets . also , we pay section 31 fees to the sec for supervision and regulation of securities markets . we pass these costs along to our customers through our derivative trading and clearing fees . we collect the fees as a pass-through charge from organizations executing eligible trades on our options exchanges and we recognize these amounts in u.s. derivative trading and clearing cost of revenues when incurred . section 31 fees received are included in cash and cash equivalents in the consolidated balance sheets at the time of receipt and , as required by law , the amount due to the sec is remitted semiannually and recorded as section 31 fees payable to the sec in the consolidated balance sheets until paid . since the amount recorded as revenues is equal to the amount recorded as cost of revenues , there is no impact on our revenues less transaction rebates , brokerage , clearance and exchange fees . as we hold the cash received until payment to the sec , we earn interest income on the related cash balances . european derivative trading and clearing european derivative trading and clearing revenues are variable , based on the volume and value of traded and cleared contracts , and recognized when executed or when contracts are cleared . the principal types of derivative contracts traded and cleared are stock options and futures , index options and futures , international power derivatives , carbon and other commodity products , and fixed-income options and futures . we also generate clearing revenues for otc traded derivatives for the freight market and seafood derivatives market , interest rate swaps , and resale and repurchase agreements . these clearing revenues are based on the value and 40 length of the contract and are recognized when cleared . in addition , nasdaq omx commodities members are billed an annual fee which is recognized ratably over the following 12-month period . nasdaq omx commodities and the exchanges that comprise nasdaq omx nordic and nasdaq omx baltic do not have any revenue sharing agreements or cost of revenues , such as transaction rebates and brokerage , clearance and exchange fees . cash equity trading revenues u.s. cash equity trading u.s. cash equity trading revenues are variable , based on individual customer share volumes , and recognized as transactions occur . we charge transaction fees for executing cash equity trades in nasdaq-listed and other listed securities on our u.s. cash equity exchanges , as well as on orders that are routed to other market venues for execution . similar to u.s. derivative trading and clearing , we record cash equity trading revenues from transactions on a gross basis as revenues and record related expenses as cost of revenues , as we have certain risk associated with trade execution . for further discussion see “ u.s . derivative trading and clearing ” above . for the nasdaq stock market and nasdaq omx psx , we credit a portion of the per share execution charge to the market participant that provides the liquidity and for nasdaq omx bx , we credit a portion of the per share execution charge to the market participant that takes the liquidity . we record these credits as transaction rebates that are included in cost of revenues in the consolidated statements of income . these transaction rebates are paid on a monthly basis and the amounts due are included in accounts payable and accrued expenses in the consolidated balance sheets . as discussed under u.s. derivative trading and clearing , we also pay section 31 fees to the sec for supervision and regulation of securities markets . we pass these costs along to our customers through our cash equity trading fees . we collect the fees as a pass-through charge from organizations executing eligible trades on our cash equity platforms and we recognize these amounts in cost of revenues when incurred . european cash equity trading we charge transaction fees for executing trades on the exchanges that comprise nasdaq omx nordic and nasdaq omx baltic . these transaction fees are charged per executed order and as per value traded . the exchanges that comprise nasdaq omx nordic and nasdaq omx baltic do not have any revenue sharing agreements or cost of revenues , such as transaction rebates and brokerage , clearance and exchange fees . fixed income trading revenues we operate espeed , an electronic trading platform for u.s. treasuries . the electronic trading platform provides real-time institutional trading of benchmark u.s. treasury s ecurities . customer contracts may be on a fixed or variable rate basis . revenues from customers with a fixed rate basis are recognized ratably over the contract period . revenues from customers with a variable rate basis are based upon individual customer share volume and are recognized as revenues as the transaction occurs . access and broker services revenues access services we generate revenues by providing market participants with several alternatives for accessing our markets for a fee . the type of connectivity is determined by the level of functionality a customer needs . as a result , access services revenues vary depending on the type of connection provided to customers . we provide co-location services to market participants whereby firms may lease space for equipment within our data center . these participants are charged monthly fees for cabinet space , connectivity and support . we also earn revenues from annual and monthly exchange membership and registration fees . revenues for providing access to our markets , co-location services and revenues for monthly exchange membership and
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | debt obligations the following table summarizes our debt obligations by contractual maturity : replace_table_token_17_th 60 in addition to the $ 750 million revolving credit commitment , we also have other credit facilities related to our clearinghouses in order to meet liquidity and regulatory requirements . at december 31 , 2013 , these credit facilities , which are available in multiple currencies , primarily swedish krona , totaled $ 312 million ( $ 219 million in available liquidity and $ 93 million to satisfy regulatory requirements ) , of which $ 11 million was utilized . at december 31 , 2012 , these credit facilities , which are available in multiple currencies , primarily swedish krona , totaled $ 310 million ( $ 217 million in available liquidity and $ 93 million to satisfy regulatory requirements ) , none of which was utilized . at december 31 , 2013 , we were in compliance with the covenants of all of our debt obligations . see note 9 , “ debt obligations , ” to the consolidated financial statements for further discussion of our debt obligations . clearing and broker-dealer net capital requirements clearing operations regulatory capital requirements we are required to maintain minimum levels of regulatory capital for our clearing operations for nasdaq omx nordic clearing and nos clearing . the level of regulatory capital required to be maintained is dependent upon many factors , including market conditions and creditworthiness of the counterparty . at december 31 , 2013 , our required regulatory capital consisted of $ 94 million of swedish government debt securities , that are included in financial investments , at fair value in the consolidated balance sheets and $ 68 million of cash that is included in restricted cash in the consolidated balance sheets . in addition , we have available credit facilities of $ 93 million which can be utilized to satisfy our regulatory capital requirements . see “ debt obligations ” above for further discussion . broker-dealer net capital requirements our broker-dealer subsidiaries , nasdaq execution services , nasdaq options services and execution access , are subject to regulatory requirements intended to ensure their general financial soundness and liquidity .
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pursuant to the terms of the exchange agreement , paradigm became the wholly-owned subsidiary of pct ltd after the exchange transaction . pct ltd is a holding company , which through paradigm is engaged in the business of marketing new products and technologies through licensing and joint ventures . pct ltd had not recorded revenues for the two fiscal years prior to its acquisition of paradigm and was dependent upon financing to continue basic operations . paradigm has recorded revenue since it initiated operations in 2012 ; however , those revenues have not been sufficient to finance operations , recording annual net losses of $ 2,721,536 and $ 2,249,653 for the years ended december 31 , 2017 and 2016. pct ltd remains dependent upon additional financing to continue operations . the company intends to raise additional financing through private placements of its common stock and note payable issuances . we expect that we would issue such stock pursuant to exemptions to the registration requirements provided by federal and state securities laws . the purchasers and manner of issuance will be determined according to our financial needs , as discussed below , and the available exemptions to the registration requirements of the securities act of 1933. we also note that if we issue more shares of our common stock , then our stockholders may experience dilution in the value per share of their common stock . the expected costs for the next twelve months include : continuation of commercial launch of non-toxic sanitizing , disinfecting and sterilizing products and technologies with a strong emphasis on health care facilities , including hospitals , nursing homes , assisted living facilities , clinics and medical , dental and veterinarian offices ; continued research and development on product generation units including those designed for on-site deployment at customers ' facilities ; accelerated research and development and initial commercialization on applications of the products in the agricultural sector , most specifically with respect to abatement of a specific crop disease crisis caused by a bacterium in the u.s. and elsewhere ; acquiring available complementary technology rights ; payment of short-term debt ; hiring of additional personnel in 2018 ; and general and administrative operating costs . management projects these costs to total approximately $ 2,500,000. to minimize these costs , the company intends to maintain its practice of controlling operating overheads with efficient facilities commitments , generally below market salaries and consulting fees , and rigorous prioritization of expenditure requirements . based on its understanding of the commercial readiness of its products and technologies , the capabilities of its personnel ( current and being hired ) , established business relationships and the general market conditions , management believes that the company expects to be at or close to profitability by the end of the third quarter of 2018 . 18 story_separator_special_tag which with a hiring bonus ) , opening a larger production and office location , revenue costs , research and development , and increased stock-based compensation . general and administrative expenses increased to $ 1,745,792 for the 2017 year compared to $ 774,476 for the 2016 year . general and administrative expense increases for 2017 were due to an increase in operations from a result of increased revenue , hiring new employees , and opening a larger production , office location and increased stock-based compensation . research and development expenses increased to $ 315,385 for the 2017 year compared to $ 147,917 for the 2016 year . research and development expenses increased for 2017 due to testing of the application of the hydrolyte® technology in the oil and gas industry ; as a biocide in institutional facilities , such as , hospitals , jails and medical facilities ; and in agriculture and food processing . depreciation and amortization expenses increased to $ 291,590 for the 2017 year compared to $ 37,996 for the 2016 year . depreciation and amortization expenses increased in 2017 due to placing equipment into service during the year and amortization of new intangible assets . total other expenses decreased to $ 452,634 for the 2017 year compared to $ 1,303,988 for the 2016 year . the overall decrease was from not having any loss from settlements of debt in 2017 compared to a loss on settlement of debt of $ 1,255,928 in 2016. interest expense and other expense increased in 2017 as there was an increase in notes payable outstanding accruing interest during 2017. as a result of the changes described above , the net loss increased to $ 2,721,536 for the 2017 year compared to $ 2,249,653 for the 2016 year . 20 off-balance sheet arrangements we have not entered into any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources and would be considered material to investors . critical accounting policies our financial statements and accompanying notes have been prepared in accordance with united states generally accepted accounting principles applied on a consistent basis . the preparation of financial statements in conformity with u.s. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities , the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods . we regularly evaluate the accounting policies and estimates that we use to prepare our financial statements . a complete summary of these policies is included in the notes to our financial statements . in general , management 's estimates are based on historical experience , on information from third party professionals , and on various other assumptions that are believed to be reasonable under the facts and circumstances . actual results could differ from those estimates made by management . story_separator_special_tag pursuant to the terms of the exchange agreement , paradigm became the wholly-owned subsidiary of pct ltd after the exchange transaction . pct ltd is a holding company , which through paradigm is engaged in the business of marketing new products and technologies through licensing and joint ventures . pct ltd had not recorded revenues for the two fiscal years prior to its acquisition of paradigm and was dependent upon financing to continue basic operations . paradigm has recorded revenue since it initiated operations in 2012 ; however , those revenues have not been sufficient to finance operations , recording annual net losses of $ 2,721,536 and $ 2,249,653 for the years ended december 31 , 2017 and 2016. pct ltd remains dependent upon additional financing to continue operations . the company intends to raise additional financing through private placements of its common stock and note payable issuances . we expect that we would issue such stock pursuant to exemptions to the registration requirements provided by federal and state securities laws . the purchasers and manner of issuance will be determined according to our financial needs , as discussed below , and the available exemptions to the registration requirements of the securities act of 1933. we also note that if we issue more shares of our common stock , then our stockholders may experience dilution in the value per share of their common stock . the expected costs for the next twelve months include : continuation of commercial launch of non-toxic sanitizing , disinfecting and sterilizing products and technologies with a strong emphasis on health care facilities , including hospitals , nursing homes , assisted living facilities , clinics and medical , dental and veterinarian offices ; continued research and development on product generation units including those designed for on-site deployment at customers ' facilities ; accelerated research and development and initial commercialization on applications of the products in the agricultural sector , most specifically with respect to abatement of a specific crop disease crisis caused by a bacterium in the u.s. and elsewhere ; acquiring available complementary technology rights ; payment of short-term debt ; hiring of additional personnel in 2018 ; and general and administrative operating costs . management projects these costs to total approximately $ 2,500,000. to minimize these costs , the company intends to maintain its practice of controlling operating overheads with efficient facilities commitments , generally below market salaries and consulting fees , and rigorous prioritization of expenditure requirements . based on its understanding of the commercial readiness of its products and technologies , the capabilities of its personnel ( current and being hired ) , established business relationships and the general market conditions , management believes that the company expects to be at or close to profitability by the end of the third quarter of 2018 . 18 story_separator_special_tag which with a hiring bonus ) , opening a larger production and office location , revenue costs , research and development , and increased stock-based compensation . general and administrative expenses increased to $ 1,745,792 for the 2017 year compared to $ 774,476 for the 2016 year . general and administrative expense increases for 2017 were due to an increase in operations from a result of increased revenue , hiring new employees , and opening a larger production , office location and increased stock-based compensation . research and development expenses increased to $ 315,385 for the 2017 year compared to $ 147,917 for the 2016 year . research and development expenses increased for 2017 due to testing of the application of the hydrolyte® technology in the oil and gas industry ; as a biocide in institutional facilities , such as , hospitals , jails and medical facilities ; and in agriculture and food processing . depreciation and amortization expenses increased to $ 291,590 for the 2017 year compared to $ 37,996 for the 2016 year . depreciation and amortization expenses increased in 2017 due to placing equipment into service during the year and amortization of new intangible assets . total other expenses decreased to $ 452,634 for the 2017 year compared to $ 1,303,988 for the 2016 year . the overall decrease was from not having any loss from settlements of debt in 2017 compared to a loss on settlement of debt of $ 1,255,928 in 2016. interest expense and other expense increased in 2017 as there was an increase in notes payable outstanding accruing interest during 2017. as a result of the changes described above , the net loss increased to $ 2,721,536 for the 2017 year compared to $ 2,249,653 for the 2016 year . 20 off-balance sheet arrangements we have not entered into any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources and would be considered material to investors . critical accounting policies our financial statements and accompanying notes have been prepared in accordance with united states generally accepted accounting principles applied on a consistent basis . the preparation of financial statements in conformity with u.s. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities , the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods . we regularly evaluate the accounting policies and estimates that we use to prepare our financial statements . a complete summary of these policies is included in the notes to our financial statements . in general , management 's estimates are based on historical experience , on information from third party professionals , and on various other assumptions that are believed to be reasonable under the facts and circumstances . actual results could differ from those estimates made by management .
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources replace_table_token_2_th the company recorded a net loss of $ 2,721,536 and had a working deficit of $ 1,415,877 for the year ended december 31 , 2017. we have recorded a relatively small amount of revenues from operations since inception and we have not established an ongoing source of revenue sufficient to cover our operating costs . during 2017 and 2016 the company has relied on raising equity capital and borrowing from stockholders and third parties to fund its ongoing day-to-day operations and its corporate overhead . as december 31 , 2017 we had $ 7,838 in cash compared to $ 21,078 in cash at december 31 , 2016. we had total liabilities of $ 1,456,198 at december 31 , 2017 compared to $ 555,838 at december 31 , 2016. total assets increased by $ 4,475,327 at december 31 , 2017 compared to december 31 , 2016. this increase is primarily from new intangible assets of approximately $ 4,282,250 ( net of amortization ) and property and equipment of approximately $ 305,004 ( net of depreciation ) acquired during the year ended december 31 , 2017. total liabilities increased by $ 900,360 at december 31 , 2017 compared to december 31 , 2016. this increase is primarily additions to related party notes payable of approximately $ 474,198 , notes payable ( net of discount ) of approximately $ 171,766 and to accounts payable and accrued liabilities of approximately $ 254,396 related to administrative and professional services during the year ended december 31 , 2017. our current cash flowis not sufficient to meet our monthly expenses of approximately $ 210,000 and to fund future research and development .
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60 through december 31 , 2020 , the balance of loans that had received a covid-19 modification was $ 1.0 billion , of which approximately 48 % were for full payment deferrals ( both interest and principal ) and 52 % were for deferral of only principal payments , and included $ 616.6 million of commercial real estate loans , including construction loans , $ 132.9 million of commercial and industrial loans , $ 133.4 million of business banking loans , $ 102.8 million of residential real estate loans and $ 28.7 million of consumer loans , including home equity loans . most of these deferrals ended in the third or fourth quarter of the year ended december 31 , 2020 , and $ 703.1 million of these loans have resumed payments and were not 30 days or more past due at december 31 , 2020. the loans remaining in a modified status as of december 31 , 2020 compared to total modifications executed through september 30 , 2020 are presented by portfolio below . these modifications met the criteria of either section 4013 of the cares act or the interagency statement on loan modifications and reporting for financial institutions working with customers affected by the coronavirus ( revised ) and therefore are not deemed troubled debt restructurings ( `` tdrs `` ) . replace_table_token_7_th ( 1 ) remaining covid-19 modifications reflect only those loans which underwent a modification and have not yet resumed payment . we define a modified loan to have resumed payment if it is one month past the modification end date and not more than 30 days past due . 61 as of the date of this annual report on form 10-k , we are unable to reasonably estimate the aggregate amount of loans that will likely become delinquent after the respective deferral period . the following table shows certain data , as of december 31 , 2020 , related to loans to our borrowers in the industry categories that we believe will likely experience the most adverse effects of the covid-19 pandemic . loans included in the table that had been modified as of december 31 , 2020 represented approximately 3.4 % of our aggregate outstanding loan balances to all borrowers in those categories as of december 31 , 2020. replace_table_token_8_th ( 1 ) the percentage of loans in each category , calculated as a percentage of aggregate outstanding loan balances for each such category as of december 31 , 2020 , that we modified primarily due to the effects on borrowers of the covid-19 pandemic and related economic slowdown beginning in late march 2020 . ( 2 ) the retail segment includes all retail commercial real estate loans and non-essential commercial and industrial retail loans . as of december 31 , 2020 , we concluded the first round of originations of ppp loans under the cares act . we disbursed $ 1.2 billion of loans to approximately 8,900 borrowers under the ppp of the cares act during the year ended december 31 , 2020 , $ 1.0 billion of which was outstanding at december 31 , 2020. the vast majority of our ppp borrowers are existing commercial and small business borrowers , non-profit customers , retail banking customers and clients of eastern wealth management and eastern insurance group llc . we anticipate that the vast majority of our remaining ppp exposure will be forgiven in the year ending december 31 , 2021 . $ 28.8 million of our ppp exposure at december 31 , 2020 had a maturity of five years ; all of our other ppp loans outstanding at december 31 , 2020 have a maturity of two years . through december 31 , 2020 , we received approximately $ 37.1 million of ppp loan origination fees from the sba . we also deferred certain origination costs , totaling $ 4.6 million , related to ppp loans . our net ppp fee accretion ( fee accretion less cost amortization ) for the year ended december 31 , 2020 totaled $ 13.9 million . as of the date of this annual report on form 10-k , we have commenced ppp lending under the latest government stimulus package . the following table shows certain data related to our remaining ppp loans as of december 31 , 2020 : replace_table_token_9_th 62 our operating results . the covid-19 pandemic has had a significant impact on our operating results for the year ended december 31 , 2020 , and we believe it will continue to have a significant impact during the year ending december 31 , 2021. during march 2020 , the federal reserve took multiple steps to lower interest rates and reduced the target range for the federal funds rate to between 0.0 % and 0.25 % , compared to the previous target of between 1.00 % and 1.25 % . these interest rate reductions , combined with the decline in longer term rates , have lowered and will continue to lower our net interest income over time from the levels we experienced in the year ended december 31 , 2019. our loan loss provision for the year ended december 31 , 2020 was $ 38.8 million compared to $ 6.3 million for the year ended december 31 , 2019. we expect our loan loss provision to continue to be elevated until the economy has recovered from the covid-19 pandemic . the economic uncertainties caused by the covid-19 pandemic are significant , and the timing and pace of the economic recovery both locally and nationally will determine the severity and timing of our future loan losses . non-gaap financial measures we present certain non-gaap financial measures , which management uses to evaluate our performance , and which exclude the effects of certain transactions , non-cash items and gaap adjustments that we believe are unrelated to our core business and are therefore not necessarily indicative of our current performance or financial position . story_separator_special_tag as of december 31 , 2020 , 67.4 % of retail borrowers , based on loan balance , have a fico score of 740 or greater . the following table shows the balances by borrower 's current fico score as of december 31 , 2020 : replace_table_token_25_th ( 1 ) borrower fico scores are updated on a semi-annual basis , and the most recent update occurred in july 2020 . ( 2 ) insufficient data available to report . our philosophy toward managing our loan portfolios is predicated upon careful monitoring , which stresses early detection and response to delinquent and default situations . we seek to make arrangements to resolve any delinquent or default situation over the shortest possible time frame . reflecting in part the loan modifications that continued through december 31 , 2020 ( see “ outlook and trends—covid-19 pandemic—our borrowers ” within this section ) , the delinquency rate of our total loan portfolio remained constant at 0.49 % at both december 31 , 2020 and 2019. the following table provides details regarding our delinquency rates as of the dates indicated : loan delinquency rates replace_table_token_26_th ( 1 ) in the calculation of the delinquency rate as of december 31 , 2020 , the total amount of loans outstanding includes $ 1.0 billion of ppp loans . 73 the following table provides details regarding the age analysis of past due loans as of the dates indicated : age analysis of past due loans replace_table_token_27_th as a general rule , loans more than 90 days past due with respect to principal or interest are classified as non-accrual loans . however , based on our assessment of collateral and or payment prospects , certain loans that are more than 90 days past due may be kept on an accruing status . income accruals are suspended on all non-accrual loans and all previously accrued and uncollected interest is reversed against current income . a loan is expected to remain on non-accrual status until it becomes current with respect to principal and interest , the loan is liquidated , or the loan is determined to be uncollectible and is charged-off against the allowance for loan losses . non-performing assets ( “ npas ” ) are comprised of non-performing loans ( “ npls ” ) , other real estate owned ( “ oreo ” ) and non-performing securities . npls consist of non-accrual loans and loans that are more than 90 days past due but still accruing interest . oreo consists of real estate properties , which primarily serve as collateral to secure our loans , that we control due to foreclosure . these properties are recorded at the lower of cost or fair value less estimated costs to sell on the date we obtain control . 74 the following table sets forth information regarding npas held as of the dates indicated : non-performing assets replace_table_token_28_th npls decreased $ 0.5 million , or 1.2 % , to $ 43.3 million at december 31 , 2020 from $ 43.8 million at december 31 , 2019. npls as a percentage of total loans decreased to 0.45 % at december 31 , 2020 from 0.49 % at december 31 , 2019 as a result of an increase in npls in our business banking and residential real estate portfolios , offset by a decrease in our commercial and industrial portfolio due to a single , larger loan payoff and a reduction in the outstanding balance of a single , larger asset based lending ( “ abl ” ) credit , and an increase in loan balances due to ppp . non-accrual loans decreased $ 1.4 million , or 3.4 % , to $ 41.0 million at december 31 , 2020 from $ 42.5 million at december 31 , 2019 , primarily due to a $ 9.8 million decrease in commercial and industrial non-accruals and partially offset by an $ 8.9 million increase in business banking non-accruals . the total amount of interest recorded on npls was $ 1.0 million for the year ended december 31 , 2020. the gross interest income that would have been recorded under the original terms of those loans if they had been performing amounted to $ 3.4 million for the year ended december 31 , 2020. the total amount of interest recorded on npls was $ 1.0 million for the year ended december 31 , 2019. the gross interest income that would have been recorded under the original terms of those loans if they had been performing amounted to $ 3.1 million for the year ended december 31 , 2019. in the course of resolving npls , we may choose to restructure the contractual terms of certain loans . we attempt to work-out alternative payment schedules with the borrowers in order to avoid foreclosure actions . we review any loans that are modified to identify whether a tdr has occurred . tdrs involve situations in which , for economic or legal reasons related to the borrower 's financial difficulties , we grant a concession to the borrower that we would not otherwise consider . as noted previously , loan modifications made in response to the covid-19 pandemic met the criteria of either section 4013 of the cares act or the interagency statement on loan modifications and reporting for financial institutions working with customers affected by the coronavirus ( revised ) and therefore are not deemed tdrs . all tdr loans are considered impaired and therefore are subject to a specific review for impairment loss . the impairment analysis discounts the present value of the anticipated cash flows by the loan 's contractual rate of interest in effect prior to the loan 's modification or the fair value of collateral if the loan is collateral dependent . the amount of impairment loss , if any , is recorded as a specific reserve to each individual loan in the allowance for loan losses . commercial loans ( commercial and industrial , commercial
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity . liquidity describes our ability to meet the financial obligations that arise in the normal course of business . liquidity is primarily needed to meet deposit withdrawals and anticipated loan fundings , as well as current and planned expenditures . we seek to maintain sources of liquidity that are deep and diversified and that may be used during the normal course of business as well as on a contingency basis . the net proceeds from our ipo significantly increased our liquidity and capital resources at both eastern bankshares , inc. and eastern bank . over time , the initial level of liquidity will be reduced as net proceeds from the stock offering are used for general corporate purposes , including the funding of loans . our financial condition and results of operations will be enhanced by the net proceeds from the stock offering , resulting in increased net interest-earning assets and net interest and dividend income . however , due to the increase in equity resulting form the net proceeds raised in our ipo , our return on equity has been and will continue to be adversely affected until we can effectively employ the proceeds of the offering . our primary sources of funds are deposits , principal and interest payments on loans and securities , and proceeds from calls , maturities and sales of securities . while maturities and scheduled amortization of loans and securities are predictable sources of funds , deposit flows and loan prepayments are greatly influenced by general interest rates , economic conditions , and competition . our most liquid assets are cash and due from banks and securities classified as available for sale . in the future , our liquidity position will be affected by the level of customer deposits and payments , as well as acquisitions , dividends , and stock repurchases in which we may engage .
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as an essential business providing motor fuels , the safety of our employees and the continued operation of our assets are our top priorities and we will continue to operate in accordance with federal and state health guidelines and safety protocols . we have implemented several new policies and provided employee training to help maintain the health and safety of our workforce . the future impact of the outbreak is highly uncertain and we can not predict the impact on our volume demand , gross profit or collections from customers . we can not assure you that covid-19 will not have other material adverse impacts on the partnership 's future results . see part i . `` item 1a . risk factors `` for further discussion . on january 15 , 2021 , we repurchased the remaining outstanding portion of our 2023 notes , discussed in the below paragraph . on november 9 , 2020 , we completed a private offering of $ 800 million in aggregate principal amount of 4.500 % senior notes due 2029 ( the “ 2029 notes ” ) . we used the proceeds to fund the repurchase of a portion of our 4.875 % senior notes due 2023 ( the “ 2023 notes ” ) . approximately $ 564 million aggregate principal amount , or 56 % , of the then-outstanding 2023 notes were tendered . in connection with our issuance of the 2029 notes , we entered into a registration rights agreement with the initial purchasers pursuant to which we agreed to complete an offer to exchange the 2029 notes for an issue of registered notes with terms substantively identical to the 2029 notes and evidencing the same indebtedness as the 2029 notes on or before november 9 , 2021. acquisition on december 15 , 2020 , we acquired a terminal in new york for approximately $ 12 million plus working capital adjustments . market and industry trends and outlook we expect that certain trends and economic or industry-wide factors will continue to affect our business , both in the short-term and long-term . we base our expectations on information currently available to us and assumptions made by us . to the extent our underlying assumptions about or interpretation of available information prove to be incorrect , our actual results may vary materially from our expected results . read “ item 1a . risk factors ” included herein for additional information about the risks associated with purchasing our common units . seasonality our business exhibits some seasonality due to our customers ' increased demand for motor fuel during the late spring and summer months , as compared to the fall and winter months . travel , recreation , and construction activities typically increase in these months , driving up the demand for motor fuel sales . our gallons sold are typically somewhat higher in the second and third quarters of our fiscal years due to this seasonality . results of operations may therefore vary from period to period . key measures used to evaluate and assess our business management uses a variety of financial measurements to analyze business performance , including the following key measures : motor fuel gallons sold . one of the primary drivers of our business is the total volume of motor fuel sold through our channels . fuel distribution contracts with our customers generally provide that we distribute motor fuel at a fixed , volume-based profit margin or at an agreed upon level of price support . as a result , gross profit is directly tied to the volume of motor fuel that we distribute . total motor fuel gross profit dollars earned from the product of gross profit per gallon and motor fuel gallons sold are used by management to evaluate business performance . gross profit per gallon . gross profit per gallon is calculated as the gross profit on motor fuel ( excluding non-cash inventory adjustments ) divided by the number of gallons sold , and is typically expressed as cents per gallon . our gross profit per gallon varies amongst our third-party relationships and is impacted by the availability of certain discounts and rebates from suppliers . retail gross profit per gallon is heavily impacted by volatile pricing and intense competition from retail stores , supermarkets , club stores and other retail formats , which varies based on the market . adjusted ebitda . adjusted ebitda , as used throughout this document , is defined as earnings before net interest expense , income taxes , depreciation , amortization and accretion expense , allocated non-cash unit-based compensation expense , unrealized gains and losses on commodity derivatives and inventory adjustments , and certain other operating expenses reflected in net income that we do not believe are indicative of ongoing core operations , such as gain or loss on disposal of assets and non-cash impairment charges . inventory adjustments that are excluded from the calculation of adjusted ebitda represent changes in lower of cost or market reserves on the partnership 's inventory . these amounts are unrealized valuation adjustments applied to fuel volumes remaining in inventory at the end of the period . 37 adjusted ebitda is a non-gaap financial measure . for a reconciliation of adjusted ebitda to the most directly comparable financial measure calculated and presented in accordance with gaap , read “ key operating metrics and results of operations ” below . story_separator_special_tag we periodically enter into derivatives , such as futures and options , to manage our fuel price risk on inventory in the distribution system . fuel hedging positions are not significant to our operations . on a consolidated basis , the partnership had a position of 1.3 million barrels with an aggregated unrealized loss of $ 6.0 million at december 31 , 2020 . 46 off-balance sheet arrangements we do not maintain any off-balance sheet arrangements for the purpose of credit enhancement , hedging transactions or other financial or investment purposes . impact of inflation inflation has a minimal impact on our results of operations , because we are generally able to pass along energy cost increases in the form of increased sales prices to our customers . inflation in energy prices impacts our sales and cost of motor fuel products and working capital requirements . increased fuel prices may also require us to post additional letters of credit or other collateral if our fuel purchases exceed unsecured credit limits extended to us by our suppliers . although we believe we have historically been able to pass on increased costs through price increases and maintain adequate liquidity to support any increased collateral requirements , there can be no assurance that we will be able to do so in the future . critical accounting estimates we prepare our consolidated financial statements in conformity with gaap . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues , expenses and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . actual results could differ from those estimates . critical accounting policies are those we believe are both most important to the portrayal of our financial condition and results of operations , and require our most difficult , subjective or complex judgments , often as a result of the need to make estimates about the effects of matters that are inherently uncertain . judgments and uncertainties affecting the application of those policies may result in materially different amounts being reported under different conditions or using different assumptions . we believe the following policies will be the most critical in understanding the judgments that are involved in preparation of our consolidated financial statements . impairments of goodwill , intangible assets and long-lived assets . our recorded identifiable intangible assets primarily include the estimated value assigned to certain customer related and contract-based assets . identifiable intangible assets with finite lives are amortized over their estimated useful lives , which is the period over which the asset is expected to contribute directly or indirectly to our future cash flows . supply agreements are amortized on a straight-line basis over the remaining terms of the agreements , which generally range from five to fifteen years . the determination of the fair market value of the intangible asset and the estimated useful life are based on an analysis of all pertinent factors including ( 1 ) the use of widely-accepted valuation approaches , the income approach or the cost approach , ( 2 ) the expected use of the asset by us , ( 3 ) the expected useful life of related assets , ( 4 ) any legal , regulatory or contractual provisions , including renewal or extension periods that would cause substantial costs or modifications to existing agreements , and ( 5 ) the effects of obsolescence , demand , competition , and other economic factors . should any of the underlying assumptions indicate that the value of the intangible assets might be impaired , we may be required to reduce the carrying value and subsequent useful life of the asset . if the underlying assumptions governing the amortization of an intangible asset were later determined to have significantly changed , we may be required to adjust the amortization period of such asset to reflect any new estimate of its useful life . any write-down of the value or unfavorable change in the useful life of an intangible asset would increase expense at that time . customer relations and supply agreements are amortized over a weighted average period of approximately 5 to 20 years . non-competition agreements are amortized over the terms of the respective agreements . loan origination costs are amortized over the life of the underlying debt as an increase to interest expense . at december 31 , 2020 , we had goodwill recorded in conjunction with past business acquisitions and “ push down ” accounting totaling $ 1.6 billion . under gaap , goodwill is not amortized . instead , goodwill is subject to annual reviews on the first day of the fourth fiscal quarter for impairment at a reporting unit level . the reporting unit or units used to evaluate and measure goodwill for impairment are determined primarily from the manner in which the business is managed or operated . a reporting unit is an operating segment or a component that is one level below an operating segment . we have assessed the reporting unit definitions and determined that we have three reporting units that are appropriate for testing goodwill impairment . long-lived assets are required to be tested for recoverability whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable . goodwill and intangibles with indefinite lives must be tested for impairment annually or more frequently if events or changes in circumstances indicate that the related asset might be impaired . an impairment loss should be recognized only if the carrying amount of the asset/goodwill is not recoverable and exceeds its fair value . during the fourth quarter of 2020 , management performed the annual impairment tests on our indefinite-lived intangible assets and goodwill for its reporting units . impairment testing involved qualitative assessments for the reporting units . no impairments were
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | loss on extinguishment of debt . loss on extinguishment of debt of $ 13 million in 2020 was related to the repurchase of approximately $ 564 million aggregate principal amount , or 56 % , of the partnership 's outstanding 2023 notes , pursuant to the previously-disclosed tender offer . unrealized gain ( loss ) on commodity derivatives . the unrealized gains and losses on our commodity derivatives represent the changes in fair value of our commodity derivatives . the change in unrealized gains and losses between periods is impacted by the notional amounts and commodity price changes on our commodity derivatives . additional information on commodity derivatives is included in “ item 7a . quantitative and qualitative disclosures about market risk ” below . 40 inventory adjustments . inventory adjustments represent changes in lower of cost or market reserves on the partnership 's inventory . these amounts are unrealized valuation adjustments applied to fuel volumes remaining in inventory at the end of the period . for 2020 , a decline in fuel prices increased lower of cost or market reserve requirements for the period by $ 82 million , creating an adverse impact to net income . for 2019 , an increase in fuel prices reduced lower of cost or market reserve requirements for the period by $ 79 million , creating a favorable impact to net income . income tax expense/ ( benefit ) . income tax expense for 2020 was $ 24 million , an increase of $ 41 million from income tax benefit of $ 17 million in 2019. this increase is primarily attributable to higher earnings from the partnership 's consolidated corporate subsidiaries in 2020 and a change to the state income tax estimate in 2019. the following table sets forth , for the periods indicated , information concerning key measures we rely on to gauge our operating performance : replace_table_token_7_th _ ( 1 ) excludes depreciation , amortization and accretion . ( 2 ) we define adjusted ebitda , which is a non-gaap financial measure , as described above under “ key measures used to evaluate and assess our business. ” ( 3 ) includes amounts from discontinued operations in 2018 .
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drive profitable long-term growth the “ drive profitable long-term growth ” objective of operation north star is focused on a series of initiatives to grow our net sales , including : strengthen our home offerings ( “ home ” ) , which spans our furniture , seasonal , and soft home merchandise categories , as a destination for jennifer ; grow store traffic through various traffic driver initiatives ; continue responsible investment in our “ store of the future ” growth platform and other store presentation initiatives ; grow our store count , which increased in 2019 for the first time since 2012 ; and grow our e-commerce sales , including buy online pick up in store ( “ bopis ” ) activities . fund the journey the “ fund the journey ” objective of operation north star is focused on a series of initiatives to reduce costs so we can invest those savings in the growth areas of our business . those initiatives include : restructure our field and corporate headquarters teams to streamline our leadership structure , reduce overhead costs , and align our resources with operating north star objectives ; restructure our store management structure to better serve jennifer and optimize overall payroll hours ; and analyze our purchasing habits and vendor agreements for retail merchandise and other goods and services to ensure we are maximizing our buying power and making cost-effective decisions . additionally , we continue to evolve our supply chain capabilities and we have established several enablement workstreams to ensure we have the technology and processes in place to achieve our “ drive profitable long-term growth ” and “ fund the journey ” objectives . create long-term shareholder value the “ create long-term shareholder value ” objective is the culmination of our “ drive profitable long-term growth ” and “ fund the journey ” objectives . if we effectively execute the first two objectives of operation north star , we believe that we will deliver value to our shareholders through earnings growth over time . 21 merchandising we focus our merchandising strategy on being the authority on price and value to jennifer in all of our merchandise categories and by providing a merchandise assortment that surprises and delights her . under operation north star , our merchandising strategy is also focused on strengthening our home offerings . home is an area where we believe jennifer gives us the right to play and where we believe we can play to win . strengthening home begins with growth of our own brands , particularly the broyhill ® brand , an iconic brand that we acquired in 2018. we launched the broyhill ® brand of product offerings in late 2019 with initial product offerings in our furniture , seasonal , soft home , and hard home merchandise categories . available both in-store and online , we believe the broyhill ® assortment strengthens our home assortment with a high-quality product offering at a value-based price that jennifer finds attractive . we plan to launch an expanded assortment of broyhill ® products in 2020. we believe our merchandising strategies for furniture , seasonal , and soft home position us to surprise and delight jennifer with our home offerings : our furniture category primarily focuses on being a destination for our core customer 's home furnishing needs , such as upholstery , mattresses , case goods , and ready-to-assemble . in furniture , we believe our competitive advantage is attributable to our sourcing relationships , our in-store availability , and everyday value offerings . a significant majority of our offerings in this category consist of replenishable products sold under our own brands or sourced from recognized brand-name manufacturers . our long-standing relationships with certain brand-name manufacturers , most notably in our mattresses and upholstery departments , allow us to work directly with them to create product offerings specifically for us , which enables us to provide a high-quality product at a competitive price . additionally , we believe our “ buy today , take home today ” practice of carrying in-stock inventory of our core furniture offerings , which allows jennifer to take home her purchase at the end of her shopping experience , positively differentiates us from our competition . we encourage jennifer to shop and buy our products online anytime and anywhere , and we invite her into our stores to touch and feel the quality and comfort of our products . we believe that offering a focused assortment , which is displayed in furniture vignettes , provides jennifer a solution for decorating her home when combined with our home décor offerings . supplementing our merchandising and presentation strategies , we provide multiple third-party financing options for our customers who may be more challenged for approval in traditional credit channels . our financing partners are solely responsible for the credit approval decisions and carry the financial risk . our seasonal category strengthens home with our patio furniture , gazebos , and christmas trim departments . we believe we have a competitive advantage in this category by offering trend-right products with a strong value proposition in our own brands . we have a large selection of samples assembled and displayed throughout the seasonal section of our store and have packaged the box stock so that it is very easy for jennifer to purchase and take home . much of this merchandise is sourced on an import basis , which allows us to maintain our competitive pricing . additionally , our seasonal category offers a mix of departments and products that complement her outdoor experience and holiday decorating desires . we continue to work with our vendors to expand the product assortment in our seasonal category to respond to jennifer 's evolving wants and needs . our soft home category complements our furniture and seasonal categories in making our stores a destination for a broader range of home needs . story_separator_special_tag by the decreased net sales and negative comps in our food , hard home , and electronics , toys , & accessories merchandise categories : our food category experienced decreased net sales and negative comps driven by competitive pressures on our staple food offerings and the impact of our store of the future conversions , which places our food merchandise at the back of the store . the decrease in net sales and comps in the electronics , toys , & accessories category was due to an intentionally narrowed assortment , specifically in our electronics department , as part of the reduction in the allocation of square footage to this category due to our store of the future conversions . 26 hard home experienced decreased net sales and negative comps as a result of gradual space reduction , as we convert stores to our store of the future concept , and the exit from our greeting card offering during the second quarter of 2019. gross margin gross margin dollars decreased $ 7.2 million , or 0.3 % , to $ 2,114.7 million in 2019 , compared to $ 2,121.9 million in 2018 . the decrease in gross margin dollars was primarily due to a lower gross margin rate , which decreased gross margin dollars by approximately $ 41.7 million , partially offset by an increase in net sales , which increased gross margin dollars by approximately $ 34.5 million . gross margin as a percentage of net sales , or gross margin rate , decreased 80 basis points to 39.7 % in 2019 compared to 40.5 % in 2018 . the gross margin rate decrease was due to a $ 6.0 million impairment of inventory in our greeting cards department , which we chose to exit in the first quarter of 2019 , a higher markdown rate from increased promotional activities , particularly in the fourth quarter of 2019 , and a higher shrink rate compared to 2018. the decrease in gross margin rate was partially offset by a higher initial mark-up compared to 2018. selling and administrative expenses selling and administrative expenses were $ 1,823.4 million in 2019 , compared to $ 1,778.4 million in 2018 . the increase of $ 45.0 million , or 2.5 % , was primarily due to $ 38.3 million in costs associated with our transformational restructuring initiative , “ operation north star , ” that we announced in the first quarter of 2019 , store-related occupancy costs of $ 23.9 million , $ 12.7 million in accrued bonus expense , $ 11.3 million in distribution and transportation expense , $ 7.3 million in estimated costs associated with employee wage and hour claims brought against us in the state of california , and an increase in advertising expense of $ 2.5 million , partially offset by store-related payroll of $ 10.9 million , share-based compensation expense of $ 9.1 million , store repairs and maintenance costs of $ 8.3 million , the 2018 impact of both the retirement of our former chief executive officer of $ 7.0 million and the $ 3.5 million in charges incurred related to the settlement of shareholder and derivative litigation matters filed in 2012 , and decreases in self-insurance costs of $ 3.7 million . the costs associated with our transformational restructuring initiative consisted of consulting expenses and employee separation costs in our corporate headquarters and our store organization incurred during 2019. store-related occupancy costs increased in 2019 primarily due to the impact of the adoption of a new lease accounting standard in conjunction with our store of the future remodel program , the impact of rent associated with leases acquired in 2018 through bankruptcy proceedings in locations that generated rent expense beginning in the first quarter of 2019 , but did not open until the second and third quarters of 2019 , normal rent increases for lease renewals , and the impact of right-of-use asset impairments on a few early store closings . the increase in accrued bonus expense was driven by stronger performance in 2019 relative to our quarterly and annual operating plans as compared to our performance in 2018 relative to our quarterly and annual operating plans . distribution and transportation expense was higher than 2018 due to occupancy and pre-opening costs associated with our new california distribution center , as well as higher transportation rates . the increase in advertising cost was primarily a result of higher spend on video media advertising and social media marketing . the decrease in store-related payroll was primarily due to the strategic reorganization of our store workforce at the end of the second quarter of 2019 , which optimized our store management structure to better serve our customers and resulted in a lower average wage rate and a reduction in total payroll hours . our share-based compensation expense decreased as a result of lower attainment of the long-term target on our 2017 performance share units ( “ psus ” ) expensed in 2019 , relative to the attainment of the 2016 psus expensed in 2018. our share-based compensation expense also decreased due to the lower average grant date fair value on awards expensed in 2019 compared to those recorded in 2018. the lower expense in store repairs and maintenance was driven by improved expense management . the decrease in our self-insurance costs resulted from favorable actuarial trends realized in 2019 , partially offset by a decrease in the discount rate for our self-insurance reserves . as a percentage of net sales , selling and administrative expenses increased by 30 basis points to 34.3 % in 2019 compared to 34.0 % in 2018 . our future selling and administrative expense as a percentage of net sales depends on many factors , including our level of net sales , and our ability to implement additional efficiencies , principally in our store and distribution center operations . depreciation expense depreciation expense increased $ 10.0 million to $ 135.0 million in 2019 compared
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | capital resources and liquidity on august 31 , 2018 , we entered into the 2018 credit agreement which provides for a $ 700 million five -year unsecured credit facility . the 2018 credit agreement expires on august 31 , 2023. borrowings under the 2018 credit agreement are available for general corporate purposes and working capital . the 2018 credit agreement includes a $ 30 million swing loan sublimit , a $ 75 million letter of credit sublimit , a $ 75 million sublimit for loans to foreign borrowers , and a $ 200 million optional currency sublimit . the interest rates , pricing and fees under the 2018 credit agreement fluctuate based on our debt rating . the 2018 credit agreement allows us to select our interest rate for each borrowing from multiple interest rate options . the interest rate options are generally derived from the prime rate or libor . we may prepay revolving loans made under the 2018 credit agreement . the 2018 credit agreement contains financial and other covenants , including , but not limited to , limitations on indebtedness , liens and investments , as well as the maintenance of two financial ratios – a leverage ratio and a fixed charge coverage ratio . additionally , we are subject to cross-default provisions associated with the synthetic lease . a violation of any of the covenants could result in a default under the 2018 credit agreement that would permit the lenders to restrict our ability to further access the 2018 credit agreement for loans and letters of credit and require the immediate repayment of any outstanding loans under the 2018 credit agreement . at february 1 , 2020 , we were in compliance with the covenants of the 2018 credit agreement . we use the 2018 credit agreement , as necessary , to provide funds for ongoing and seasonal working capital , capital expenditures , dividends , share repurchase programs , and other expenditures .
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the most advanced partner program is roche 's marketed product , kadcyla ( ado-trastuzumab emtansine ) , the first adc to demonstrate superiority over standard of care in a randomized pivotal trial , emilia , and gain fda approval . our adc platform is used in candidates in clinical development with amgen , bayer , biotest , cytomx , debiopharm , lilly , novartis , and sanofi . we also have a partnership with takeda , and expect they will advance their first candidate with our adc technology deploying our ign payload into clinical testing for solid tumors in the first half of 2018. we expect that substantially all of our revenue for the foreseeable future will result from payments under our collaborative arrangements . for more information concerning 41 these relationships , including their ongoing financial and accounting impact on our business , please read note c , significant collaborative agreements , to our consolidated financial statements included in this report . to date , we have not generated revenues from commercial sales of internal products and we expect to incur significant operating losses for the foreseeable future . as of december 31 , 2017 , we had $ 267.1 million in cash and cash equivalents compared to $ 160.0 million as of december 31 , 2016. change in fiscal year as previously reported , we changed our fiscal year end to december 31 from june 30 effective january 1 , 2017. this annual report on form 10-k is for the twelve months ended december 31 , 2017 , and we previously filed a transition report for the six-month period of july 1 , 2016 through december 31 , 2016 , which we refer to as the transition period . critical accounting policies we prepare our consolidated financial statements in accordance with accounting principles generally accepted in the u.s. the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues , and expenses and related disclosure of contingent assets and liabilities . on an on‑going basis , we evaluate our estimates , including those related to our collaborative agreements , clinical trial accruals , inventory , and stock‑based compensation . we base our estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances . actual results may differ from these estimates . we believe the following critical accounting policies reflect our more significant judgments and estimates used in the preparation of our consolidated financial statements . revenue recognition we enter into licensing and development agreements with collaborators for the development of adc therapeutics . the terms of these agreements contain multiple deliverables which may include ( i ) licenses , or options to obtain licenses , to our adc technology , ( ii ) rights to future technological improvements , ( iii ) research activities to be performed on behalf of the collaborative partner , ( iv ) delivery of cytotoxic agents , and ( v ) the manufacture of preclinical or clinical materials for the collaborative partner . payments to us under these agreements may include upfront fees , option fees , exercise fees , payments for research activities , payments for the manufacture of preclinical or clinical materials , payments based upon the achievement of certain milestones , and royalties on product sales . we follow the provisions of the financial accounting standards board , or fasb , accounting standards codification , or asc , topic 605‑25 , “ revenue recognition—multiple‑element arrangements , ” and asc topic 605‑28 , “ revenue recognition—milestone method , ” in accounting for these agreements . in order to account for these agreements , we must identify the deliverables included within the agreement and evaluate which deliverables represent separate units of accounting based on whether certain criteria are met , including whether the delivered element has stand‑alone value to the collaborator . the consideration received is allocated among the separate units of accounting , and the applicable revenue recognition criteria are applied to each of the separate units . at december 31 , 2017 , we had three material types of agreements with the parties identified below : · development and commercialization licenses , which provide the party with the right to use our adc technology and or certain other intellectual property to develop compounds to a specified antigen target : - amgen ( two exclusive single-target licenses – one of which has been sublicensed to oxford biotherapeutics ltd. ) - bayer ( one exclusive single-target license ) - biotest ( one exclusive single-target license ) - cytomx ( one exclusive single-target license ) - fusion pharmaceuticals ( one exclusive single-target license ) 42 - lilly ( three exclusive single-target licenses ) - novartis ( five exclusive single-target licenses and one license to two related targets : one target on an exclusive basis and the second target on a non-exclusive basis ) - roche , through its genentech unit ( five exclusive single-target licenses ) - sanofi ( five fully-paid , exclusive single-target licenses ) - takeda , through its wholly owned subsidiary , millennium pharmaceuticals , inc. ( one exclusive single-target license ) - debiopharm ( one exclusive single-compound license ) · research license/option agreement for a defined period of time to secure development and commercialization licenses to use our adc technology to develop anticancer compounds to specified targets on established terms ( referred to herein as right‑to‑test agreements ) : - takeda , through its wholly owned subsidiary , millennium pharmaceuticals , inc. · collaboration and option agreement for a defined period of time to secure development and commercialization licenses to develop and commercialize specified anticancer compounds on established terms : - jazz pharmaceuticals there are no performance , cancellation , termination or refund provisions in any of the arrangements that contain material financial consequences to us . story_separator_special_tag during the years ended december 31 , 2017 and 2016 , the six months ended december 31 , 2016 and 2015 and fiscal years 2016 and 2015 , we obtained additional quantities of dmx from our supplier which amounted to more material than would be required by our collaborators over the next twelve months and as a result , we recorded $ 403,000 , $ 302,000 , $ 150,000 , $ 966,000 , $ 1.1 million , and $ 1.0 million , respectively , of charges to research and development expense related to raw material inventory identified as excess . our collaborators ' estimates of their clinical material requirements are based upon expectations of their clinical trials , including the timing , size , dosing schedule and the maximum tolerated dose likely to be reached for the compound being evaluated . our collaborators ' actual requirements for clinical materials may vary significantly from their projections . significant differences between our collaborators ' actual manufacturing orders and their projections could result in our actual twelve‑month usage of raw materials varying significantly from our estimated usage at an earlier reporting period . such differences and or reductions in collaborators ' projections could indicate that we have excess raw material inventory and we would then evaluate the need to record write‑downs , which would be included as charges to research and development expense . stock‑based compensation as of december 31 , 2017 , we are authorized to grant future awards under one share‑based compensation plan , which is the immunogen , inc. 2016 employee , director and consultant equity incentive plan . the stock‑based awards are accounted for under asc topic 718 , “ compensation—stock compensation , ” pursuant to which the estimated grant 46 date fair value of awards is charged to the statement of operations over the requisite service period , which is the vesting period . such amounts have been reduced by our estimate of forfeitures for unvested awards . the fair value of each stock option is estimated on the date of grant using the black‑scholes option‑pricing model . expected volatility is based exclusively on historical volatility data of our stock . the expected term of stock options granted is based exclusively on historical data and represents the period of time that stock options granted are expected to be outstanding . the expected term is calculated for and applied to one group of stock options as we do not expect substantially different exercise or post‑vesting termination behavior amongst our employee population . the risk‑free rate of the stock options is based on the u.s. treasury rate in effect at the time of grant for the expected term of the stock options . estimated forfeitures are based on historical data as well as current trends . stock compensation cost related to stock options and restricted stock incurred during the years ended december 31 , 2017 and 2016 , the six months ended december 31 , 2016 and 2015 , and fiscal years 2016 and 2015 was $ 11.1 , $ 19.8 , $ 8.1 , $ 10.2 , $ 21.9 and $ 15.3 million , respectively . during each of calendar and fiscal years 2016 , we recorded $ 3.1 million of stock compensation cost related to the modification of certain outstanding common stock options with the former chief executive officer 's succession plan . stock compensation cost related to director deferred share units recorded during the years ended december 31 , 2017 and 2016 , the six months ended december 31 , 2016 and 2015 and fiscal years 2016 and 2015 was $ 206,000 , $ 431,000 , $ 215,000 , $ 164,000 , $ 380,000 and $ 389,000 , respectively . future stock‑based compensation may significantly differ based on changes in the fair value of our common stock and our estimates of expected volatility and the other relevant assumptions . results of operations revenues our total revenues for the year ended december 31 , 2017 were $ 115.4 million compared with $ 48.6 million for the year ended december 31 , 2016. the $ 66.8 million increase in revenues in calendar year 2017 compared to 2016 is attributable to an increase in license and milestone fees , non-cash royalty revenue and clinical materials revenue , partially offset by a decrease in research and development support revenue . our total revenues for the six months ended december 31 , 2016 were $ 21.5 million compared with $ 32.9 million for the six months ended december 31 , 2015. the $ 11.4 million decrease in revenues in the six-month transition period is attributable to a decrease in license and milestone fees and clinical materials revenue , partially offset by an increase in non-cash royalty revenue and research and development support revenue . our total revenues for the fiscal year ended june 30 , 2016 were $ 60.0 million compared with $ 85.5 million for the year ended june 30 , 2015. the $ 25.5 million decrease in revenues in fiscal year 2016 compared to fiscal 2015 is attributable to a decrease in license and milestone fees , royalty revenue and clinical materials revenue , partially offset by an increase in non‑cash royalty revenue and research and development support revenue , all of which are discussed below . 47 license and milestone fees the amount of license and milestone fees we earn is directly related to the number of our collaborators , the collaborators ' advancement of the product candidates , and the overall success in the clinical trials of the product candidates . as such , the amount of license and milestone fees may vary widely from quarter to quarter and year to year . total revenue recognized from license and milestone fees from each of our collaborators in the years ended december 31 , 2017 and 2016 , the six month periods ended december 31 , 2016 and 2015 , and the fiscal years ended june 30 , 2016
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash flows we require cash to fund our operating expenses , including the advancement of our own clinical programs , and to make capital expenditures . historically , we have funded our cash requirements primarily through equity financings in public markets and payments from our collaborators , including license fees , milestones , research funding , royalties and more recently , convertible debt . we have also sold our rights to receive royalties on kadcyla for up-front consideration . as of december 31 , 2017 , we had $ 267.1 million in cash and cash equivalents . net cash provided ( used ) for operating activities was $ 7.6 , $ ( 142.6 ) , $ ( 83.7 ) , $ ( 65.5 ) , $ ( 124.5 ) and $ ( 55.3 ) million during the years ended december 31 , 2017 and 2016 , the six months ended december 31 , 2016 and 2015 and for the years ended june 30 , 2016 and 2015 , respectively . the principal use of cash in operating activities for all periods presented was to fund our net loss , adjusted for non‑cash items , with the year ended december 31 , 2017 benefiting from payments by jazz , debiopharm and sanofi , totaling $ 137.8 million resulting in cash provided by operations . cash used for operating activities in fiscal year 2015 benefited from the $ 20 million upfront payment received from takeda in march 2015 with the execution of a right‑to‑test agreement between the companies . net cash used for investing activities was $ 1.1 , $ 6.7 , $ 1.4 , $ 5.1 , $ 10.4 , and $ 7.4 million for the years ended december 31 , 2017 and 2016 , the six months ended december 31 , 2016 and 2015 and the years ended june 30 , 2016 and 55 2015 , respectively , and represent cash outflows from capital expenditures .
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the safety and service measures currently in place include : ( 1 ) creating and implementing a safety training program for all associates ; ( 2 ) maintaining a three-month supply of masks , gloves , shoe covers , and hand sanitizer for field teams ; ( 3 ) continuing to leverage self-show and virtual-tour technology as both safety measures and competitive advantages ; ( 4 ) adhering to strict safety protocols for maintenance service trips ; and ( 5 ) adapting to offer virtual options for resident move-in orientations and pre-move-out visits . neither these procedural adjustments nor the overall impact of the covid-19 pandemic created significant disruptions to our business model during the year ended december 31 , 2020. however , the pandemic did impact our business , including operating , investment management , and capital markets activities as more fully described below . operations the direct impacts on our results of operations and key operating metrics from the effects of the covid-19 pandemic include , but are not limited to : ( 1 ) a decrease in gross rental revenues and other property income ( before concessions and bad debt ) due to jurisdictional restrictions on rent increases and late fees and or forgiveness of late fees for residents who have requested leniency ; ( 2 ) an increase in occupancy due to lower turnover partially driven by residents ' decisions not to relocate during the pandemic , strong demand for homes that become vacant , and the impact of eviction moratoriums ; ( 3 ) an increase in uncollectible revenues ( or decline in rent collections percentages ) due to resident hardships and eviction moratoriums ; and ( 4 ) a decrease in property operating and maintenance expenses for turnover costs ( lower turnover rates ) and property administrative fees ( eviction moratoriums ) . in march 2020 , to act on our core values of `` genuine care `` and `` standout citizenship , `` we began to offer solutions for residents experiencing financial hardship when requested , including the ongoing creation of payment plans , without late fees , for residents requiring flexibility to meet rental obligations over time . additionally , we continue to adhere to federal , state , and local restrictions on items such as evictions , collections , rent increases , and late fees as appropriate . the ongoing covid-19 outbreak in the united states has led entities directed by , or notionally affiliated with , the federal government as well as certain states and cities , including those in which we own properties and where our principal places of business are located , to impose and continue to implement measures intended to control the spread of covid-19 , including instituting quarantines , restrictions on travel , “ shelter in place ” rules , and restrictions on types of business that may continue to operate . we depend on rental revenues and other property income from residents for substantially all of our revenues . overall revenue collections as a percentage of monthly billings was 96 % for the period from april 2020 through december 2020 , compared to a historical average of 99 % . while collection of revenues has remained near historical levels thus far through the pandemic , the covid-19 outbreak , as well as continuing measures taken by governmental authorities and private actors to limit the spread of this virus or mitigate its impact , are interfering with the ability of some of our residents to meet their lease obligations and make their rent payments on time or at all . in addition , entities directed by , or notionally affiliated with , the federal government as well as some state and local jurisdictions across the united states , have imposed temporary eviction moratoriums if certain criteria are met by residents , are allowing residents to defer missed rent payments without incurring late fees , and are prohibiting rent increases . jurisdictions and other local and national authorities may expand or extend measures imposing restrictions on our ability to enforce residents ' contractual rental obligations and limiting our ability to increase rents . we can not predict if states , municipalities , local , and or national authorities will expand existing restrictions , if additional states or municipalities will implement similar restrictions , or when restrictions currently in place will expire . such measures are likely to enable residents to stay in their homes despite an inability to pay because of financial or other hardship stemming from the pandemic . certain other restrictions imposed by jurisdictions across the united states are intended to limit operations by businesses not deemed “ essential businesses . ” while none of the current restrictions have materially impacted our ability to provide services to our residents or homes , future measures may negatively impact our ability to access our homes , complete service requests , or make our homes ready for new residents . unless the residents report symptoms of or exposure to covid-19 , we are completing all service calls . in all cases , we work with the residents to ensure service requests are addressed in a timely and safe manner . while covid-19 and related containment measures may interfere with the ability of our associates , suppliers , and other business partners to carry out their assigned tasks or to supply materials and services at ordinary levels of performance relative to the conduct of our business in the future , to date we have not experienced significant disruptions of these types . 56 the majority of our office-based associates continue to work from home and will do so until we determine it is in our and their best interests to fully return to our offices . additionally , changes to the working environment have not had a material effect on our internal controls over financial reporting since the pandemic began ( see part ii . item 9a . story_separator_special_tag property management expense property management expense represents personnel and other costs associated with the oversight and management of our portfolio of homes , including those within our unconsolidated joint ventures . all of our homes are managed through our internal property manager . general and administrative general and administrative expense represents personnel costs , professional fees , and other costs associated with our day-to-day activities . general and administrative expense also includes merger and transaction-related expenses , among other things , that are of a non-recurring nature . share-based compensation expense all share-based compensation expense is recognized in our consolidated statements of operations as components of general and administrative expense and property management expense . we issue share-based awards to align the interests of our associates with those of our investors . interest expense interest expense includes interest payable on our debt instruments , payments and receipts related to our interest rate swap agreements , amortization of discounts and deferred financing costs , unrealized gains ( losses ) on non-designated hedging instruments , and non-cash interest expense related to our interest rate swap agreements . depreciation and amortization we recognize depreciation and amortization expense associated with our homes and other capital expenditures over their expected useful lives . impairment and other impairment and other represents provisions for impairment when the carrying amount of our single-family residential properties is not recoverable and casualty ( gains ) losses , net of any insurance recoveries . unrealized gains on investments in equity securities unrealized gains on investments in equity securities includes gains resulting from mark to market adjustments made for our equity securities . other , net other , net includes interest income , asset and property management fee income , income ( loss ) from investments in unconsolidated joint ventures , and other miscellaneous income and expenses . gain on sale of property , net of tax gain on sale of property , net of tax consists of net gains and losses resulting from sales of our homes . 62 results of operations year ended december 31 , 2020 compared to year ended december 31 , 2019 the following table sets forth a comparison of the results of operations for the years ended december 31 , 2020 , and 2019 : replace_table_token_3_th portfolio information as of december 31 , 2020 and 2019 , we owned 80,177 and 79,505 single-family rental homes , respectively , in our total portfolio . during the years ended december 31 , 2020 , and 2019 , we acquired 2,252 and 2,153 homes , respectively , and sold 1,580 and 3,455 homes , respectively . during the years ended december 31 , 2020 , and 2019 , we owned an average of 79,530 and 80,372 single-family rental homes , respectively . we believe presenting information about the portion of our total portfolio that has been fully operational for the entirety of both a given reporting period and its prior year comparison period provides investors with meaningful information about the performance of our comparable homes across periods , and about trends in our organic business . to do so , we provide information regarding the performance of our same store portfolio . as of december 31 , 2020 , our same store portfolio consisted of 71,433 single-family rental homes . rental revenues and other property income for the years ended december 31 , 2020 , and 2019 , total portfolio rental revenues and other property income totaled $ 1,822.8 million and $ 1,764.7 million , respectively , an increase of 3.3 % , driven by an increase in average occupancy , average monthly rent per occupied home , and utilities reimbursements , partially offset by an increase in bad debt , reduced fee income , and a 842 home decrease between periods in the average number of homes owned . average occupancy for the years ended december 31 , 2020 , and 2019 for the total portfolio was 96.1 % and 94.2 % , respectively . average monthly rent per occupied home for the total portfolio for the years ended december 31 , 2020 , and 2019 was $ 1,875 and $ 1,809 , respectively , a 3.6 % increase . for our same store portfolio , average occupancy was 97.5 % and 96.2 % for the years ended december 31 , 2020 , and 2019 , respectively , and average monthly rent per occupied home for the years ended december 31 , 2020 , and 2019 was $ 1,874 and $ 1,810 , respectively , a 3.5 % increase . 63 the annual turnover rate for the same store portfolio for the years ended december 31 , 2020 , and 2019 was 26.1 % and 29.7 % , respectively . for the same store portfolio , an average home remained unoccupied for 36 and 46 days between residents for the years ended december 31 , 2020 , and 2019 , respectively . the decreases in these two metrics contributed to our increase in occupancy on a year over year basis . furthermore , we believe the decrease in turnover is partially attributable to the effects of the covid-19 pandemic ( e.g . , eviction moratoriums and residents who are not inclined to relocate during this period ) . we can not predict how long eviction moratoriums will remain in place nor when the general effects of the pandemic will subside and how those items may affect our turnover and occupancy rates . to monitor prospective changes in average monthly rent per occupied home , we compare the monthly rent from an expiring lease to the monthly rent from the next lease for the same home , in each case , net of any amortized non-service concessions , to calculate net effective rental rate growth . leases are either renewal leases , where our current resident stays for a subsequent lease term , or new leases , where our previous resident moves out and a new resident signs a
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash flows year ended december 31 , 2020 compared to year ended december 31 , 2019 the following table summarizes our cash flows for the years ended december 31 , 2020 and 2019 : replace_table_token_11_th 76 operating activities our cash flows provided by operating activities depend on numerous factors , including the occupancy level of our homes , the rental rates achieved on our leases , the collection of rent from our residents , and the amount of our operating and other expenses . net cash provided by operating activities was $ 696.7 million and $ 662.1 million for the years ended december 31 , 2020 , and 2019 , respectively , an increase of 5.2 % . the increase in cash provided by operating activities was driven by improved operational profitability , which was partially offset by changes in operating assets and liabilities . investing activities net cash provided by ( used in ) investing activities consists primarily of the acquisition costs of homes , capital improvements , and proceeds from property sales . net cash provided by ( used in ) investing activities was $ ( 425.2 ) million and $ 102.2 million for the years ended december 31 , 2020 , and 2019 , respectively , a decrease of $ 527.4 million .
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adjusted after-tax earnings from continuing operations attributable to fmc stockholders of $ 368.3 million increased approximately $ 110.6 million or 43 percent due to higher results in fmc agricultural solutions and fmc lithium . see the disclosure of our adjusted earnings non-gaap financial measurement below under the section titled “ results of operations ” . other 2017 highlights in fmc lithium , we are seeing the benefits of our strategy to grow our business in the technology-driven specialty end markets , where demand continues to accelerate and pricing trends across our portfolio remain favorable . in march , we announced our intention to separate fmc lithium into a publicly traded company during 2018. in june , we started commercial sales from our new lithium hydroxide facility in china . we expanded production of lithium carbonate at our argentina site through debottlenecking projects , and we also announced plans to more than double lithium carbonate production at that same site to at least 40,000 metric tons by 2022 . 18 on august 1 , 2017 , we completed the sale of the omega-3 business to pelagia as for $ 38 million . in may 2017 , we entered into a new $ 1.5 billion term loan facility to fund the transaction agreement with dupont.we also entered into an amended and restated $ 1.5 billion revolving credit facility and amended the existing term loan facility at that time . among other things , the amendments temporarily increased the maximum leverage ratio financial covenant in order to permit the debt incurred under the contemplated new term loan facility along with certain other changes to permit the expected transaction . 2018 outlook we believe the crop protection chemical market will be flat to up low single digits and we believe that the lithium market will continue to see significant demand growth in 2018. we believe that our 2018 plan is very achievable , as it relies on things we control rather than on expectations of positive external events . we expect to deliver segment revenue and earnings growth in each business . in fmc agricultural solutions , we will focus on the integration of the dupont crop protection business and on creating a stronger combined business to capitalize on the products and expertise of these two former organizations . we expect to outperform the crop protection market in 2018 , owing to our recently acquired products and to our proactive competitive positioning of our legacy business . we believe that fmc lithium will increase earnings significantly through volume and price increases in 2018. on a long-term basis , we are a technology-driven company with low-cost operations , a world class research and development organization that balances short-and mid-term developments with long-term innovations , and global scale with strong regional expertise to support local customers . please see segment discussions under the section entitled “ results of operations ” for 2018 outlook for each segment . 19 results of operations— 2017 , 2016 and 2015 overview the following presents a reconciliation of our segment operating profit to the net income attributable to fmc stockholders as seen through the eyes of our management . for management purposes , we report the operating performance of each of our business segments based on earnings before interest and income taxes excluding corporate expenses , other income ( expense ) , net and corporate special income ( charges ) . replace_table_token_6_th ( 1 ) see note 7 to the consolidated financial statements included within this form 10-k for details of restructuring and other ( charges ) income by segment : replace_table_token_7_th ( 2 ) our non-operating pension and postretirement costs are defined as those costs related to interest , expected return on plan assets , amortized actuarial gains and losses and the impacts of any plan curtailments or settlements . these costs are primarily related to changes in pension plan assets and liabilities which are tied to financial market performance and we consider these costs to be outside our operational performance . we exclude these non-operating pension and postretirement costs from our segments as we believe that removing them provides a better understanding of the underlying profitability of our businesses , provides increased transparency and clarity in the performance of our retirement plans and enhances period-over-period comparability . we continue to include the service cost and amortization of prior service cost in our operating segments noted above . we believe these elements reflect the current year operating costs to our businesses for the employment benefits provided to active employees . these expenses are included as a component of the line item `` selling , general and administrative expenses `` on the consolidated statements of income ( loss ) . ( 3 ) charges relate to the expensing of the inventory fair value step-up resulting from the application of purchase accounting , transaction costs , costs for transitional employees , other acquired employee related costs , integration related legal and professional third-party fees and gains or losses on hedging purchase price associated with the acquisitions . amounts represent the following : 20 replace_table_token_8_th ( 1 ) represents transaction costs , costs for transitional employees , other acquired employee related costs and integration related legal and professional third-party fees . ( 2 ) these charges are included in “ selling , general and administrative expense `` on the consolidated statements of income ( loss ) . ( 3 ) these charges are included in “ costs of sales and services ” on the consolidated statements of income ( loss ) . ( 4 ) acquisition-related charges and restructuring charges to integrate cheminova with fmc agricultural solutions were completed at the end of 2016. adjusted earnings reconciliation the following chart , which is provided to assist the readers of our financial statements , depicts certain after-tax charges ( gains ) . these items are excluded from the measures we use to evaluate business performance and determine certain performance-based compensation . story_separator_special_tag other charges ( income ) , net in 2015 consisted of environmental charges of $ 21.7 million , the impacts of the argentina currency devaluation in december of 2015 of $ 10.7 million , and $ 20.5 million of expenses associated with acquired in-process research and development activity . partially offsetting these amounts was a gain of $ 26.6 million related to the sale of our remaining ownership interest in a belgian-based pesticide distribution company , belchim crop protection n.v. ( `` belchim `` ) . non-operating pension and postretirement ( charges ) income non-operating pension and postretirement ( charges ) income are included in “ selling , general and administrative expenses ” on our consolidated statements of income ( loss ) . 2017 vs. 2016 the charge for 2017 was $ 18.2 million compared to $ 23.4 million in 2016 . the decrease was the result of $ 22.8 million lower amortization of net actuarial losses as a result of a change in estimate in fiscal 2017 to amortize the gains and losses over the expected life time of the inactive population rather than the average remaining service period of the active participants which was partially offset by an increase of $ 15.4 million for recognized losses due to plan settlements . see note 13 for more information . 2016 vs. 2015 the charge for 2016 was $ 23.4 million compared to $ 29.8 million in 2015. the decrease in charges was in part due to the estimation method used in 2016 to calculate the interest cost components of our net periodic benefit cost as described in the critical accounting policies section of item 7 within this form 10-k. the decrease was also the result of $ 15.1 million lower amortization of net actuarial losses . these decreases were partially offset by an increase of $ 17.7 million for recognized losses due to plan settlements . see note 13 for more information . acquisition-related charges a detailed description of the acquisition related charges is included in note 19 to the consolidated financial statements included within this form 10-k and in the segment results reconciliation above within the `` results of operations `` section of the management 's discussion and analysis . provision for income taxes a significant amount of our earnings is generated by our foreign subsidiaries ( e.g . denmark , singapore and hong kong ) , which tax earnings at lower rates than the united states federal statutory rate . our future effective tax rates may be materially impacted by numerous items including : a future change in the composition of earnings from foreign and domestic tax jurisdictions , as earnings in foreign jurisdictions are typically taxed at more favorable rates than the united states federal statutory rate ; accounting for uncertain tax positions ; business combinations ; expiration of statute of limitations or settlement of tax audits ; changes in valuation allowance ; changes in tax law ; and the potential decision to repatriate certain future foreign earnings on which united states or foreign withholding taxes have not been previously accrued . as a result of the act , we currently estimate our effect tax rate for 2018 will increase by low single digits as a result of a minimum tax on overseas income , combined with a restriction on the use of foreign tax credits to offset this additional tax . in foreign jurisdictions , with a tax rate outside the u.s. of less than around 13 percent , we will have an additional u.s. tax bill under the gilti provisions of the act . provision for income taxes for 2017 was expense of $ 264.1 million resulting in an effective tax rate of 146.1 percent primarily attributable to the $ 315.9 million of provisional tax expense associated with the act . provision for income taxes for 2016 was 26 expense of $ 50.1 million resulting in an effective tax rate of 27.7 percent and provision for income taxes for 2015 was $ 5.2 million resulting in an effective tax rate of negative 2.5 percent . during 2015 , our fmc agricultural solutions business in brazil experienced significant current and cumulative losses driven by unfavorable market conditions . as of december 31 , 2016 , sufficient positive evidence to realize the net deferred tax assets in brazil was not available and a full valuation allowance against those assets remains established . note 11 to the consolidated financial statements included in this form 10-k includes more details on the drivers of the gaap effective rate and year-over-year changes . we believe showing the reconciliation below of our gaap to non-gaap effective tax rate provides investors with useful supplemental information about our tax rate on the core underlying business . replace_table_token_15_th _ ( 1 ) tax adjustments in 2017 were primarily associated with the provisional income tax expense recorded as a result of the enactment of the act in december 2017. see note 11 for additional discussion . tax adjustments in 2016 were primarily associated with valuation allowance adjustments to u.s. state deferred tax balances . tax adjustments in 2015 were primarily associated with valuation allowance adjustments taken in our brazil subsidiaries . the primary drivers for the decrease in the year-to-date effective tax rate for 2017 compared to 2016 are shown in the table above . the remaining change was due to reduced domestic earnings in our fmc agricultural solutions business and the impact of the full integration of cheminova into our global supply chain . discontinued operations , net of income taxes our discontinued operations , in periods up to its sale , represent our discontinued fmc health and nutrition and fmc alkali chemicals business results as well as adjustments to retained liabilities from other previously discontinued operations . the primary liabilities retained include environmental liabilities , other postretirement benefit liabilities , self-insurance , long-term obligations related to legal proceedings and historical restructuring activities . see note 9 to the consolidated financial statements for additional
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash and cash equivalents at december 31 , 2017 and 2016 , were $ 283.0 million and $ 64.2 million , respectively . of the cash and cash equivalents balance at december 31 , 2017 , $ 97.2 million was held by our foreign subsidiaries . as a result of the act , we recognized a one-time transition tax on the deemed repatriation of foreign earnings and the remeasurement of the company 's u.s. net deferred tax asset . see note 11 to these consolidated financial statements for more information . the cash held by foreign subsidiaries for permanent reinvestment is generally used to finance the subsidiaries ' operating activities and future foreign investments . we have not provided additional income taxes for any additional outside basis differences inherent in our investments in subsidiaries because the investments are essentially permanent in duration or we have concluded that no additional tax liability will arise upon disposal . determining the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings not subject to the transition tax and additional outside basis difference in these entities ( i.e. , basis difference in excess of that subject to the one-time transition tax ) is not practicable or in process and not yet complete . we are still in the process of analyzing the impact of the act on our indefinite reinvestment assertion .
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16 we continue to focus on reducing product costs and improving manufacturing efficiencies across all of our businesses . we started our “ 80/20 ” efficiency initiatives in 2010 , and they have been a critical part of the steady improvement in our margins . our 80/20 initiatives have also helped us to focus on delivering the right products and services at the right prices to better capture the value-add that we create . leveraging invested capital we remain focused on return on invested capital ( “ roic ” ) in 2015 and we continue to use an roic metric in our long-term incentive compensation programs . this increased focus contributed to a significant year-over-year improvement in roic , which we define as net operating profit after taxes divided by average invested capital . we continue to adapt our flexible manufacturing model which allows us to shift production among facilities to optimize capacity and capabilities . the sale of our bronto skylift business removed a low-margin operation that required a disproportionate amount of invested capital . we continue to generate strong cash flow from our improved operating performance , with cash flow provided by continuing operations for the year ended december 31 , 2015 of $ 91.1 million , up 12 % compared to 2014 . the cash generated from operations has helped us to significantly increase our cash position , return value to shareholders and reduce our total debt . at december 31 , 2015 , cash and cash equivalents exceeded total debt by $ 31.9 million , compared to a net debt balance of $ 26.1 million at december 31 , 2014 . as a result of the reduction in debt , we reduced our interest expense by 36 % in 2015 , to $ 2.3 million from $ 3.6 million in 2014 . our debt leverage remains low , at 0.4 times adjusted ebitda as of december 31 , 2015 . diversifying customer base historically , 60 % or more of our domestic net sales were derived from municipal and other government markets . municipalities will continue to be important customers , and our leadership in municipal and government markets remains a strength of our company . at the same time , our organic and acquisition growth initiatives generally will focus on expanding our industrial customer base . although near-term industrial demand has been soft , notably in relation to oil and gas markets , we continue to believe that industrial markets tend to offer better margin and growth opportunities over the longer term . we have also continued to focus on new product development in 2015 and are encouraged that these efforts will provide additional opportunities to further diversify our customer base . specific examples for industrial markets include investments in new excavator designs to better target utility markets and in internationally certified safety products to expand our global reach . 17 results of operations the following table summarizes our consolidated statements of operations and illustrates the key financial indicators used to assess our consolidated financial results : replace_table_token_4_th year ended december 31 , 2015 vs. year ended december 31 , 2014 net sales net sales decreased by $ 11.1 million , or 1 % , for the year ended december 31 , 2015 compared to the prior year . net sales in the environmental solutions group decreased by $ 2.5 million , with lower sales of vacuum trucks and sewer cleaners being partially offset by improved sales of street sweepers . in the safety and security systems group , net sales were down $ 8.6 million , largely due to an $ 11.4 million reduction in sales of industrial products associated with lower demand within oil and gas markets , as well as an unfavorable foreign currency impact of $ 8.2 million , partially offset by a $ 10.9 million improvement in sales into european public safety markets . cost of sales for the year ended december 31 , 2015 , cost of sales decreased by $ 28.0 million , or 5 % , compared to the prior year , largely driven by a decrease of $ 18.0 million within the environmental solutions group , principally associated with favorable product mix , as well as productivity and capacity improvements at our manufacturing facilities . the safety and security systems group also reported a $ 10.0 million cost of sales reduction , primarily due to a favorable foreign currency impact of $ 6.2 million , as well as favorable sales mix effects . gross profit for the year ended december 31 , 2015 , gross profit increased by $ 16.9 million , or 8 % , compared to the prior year . gross margin for the year ended december 31 , 2015 was 29.4 % , up from 26.8 % in the prior year . the improvement in gross margin was primarily the result of productivity and facilities utilization improvements and improved pricing within the environmental solutions group , as well as favorable product mix and lower costs in the safety and security systems group . 18 selling , engineering , general and administrative expenses seg & a expenses increased by $ 2.0 million for the year ended december 31 , 2015 compared to the prior year , largely due to increases of $ 0.8 million within the safety and security systems group , associated with higher engineering expenses for new product development , and $ 0.7 million within corporate , primarily due to increased employee costs . the environmental solutions group also reported a $ 0.5 million increase , primarily due to higher employee compensation costs , partially offset by decreased product liability and workers ' compensation expenses . operating income operating income for the year ended december 31 , 2015 increased by $ 14.5 million , or 16 % , to $ 103.2 million , reflecting an operating margin of 13.4 % compared to 11.4 % in the prior year . story_separator_special_tag orders for street sweepers and sewer cleaners benefited from solid municipal demand and an influx of fleet orders , including significant orders from large municipalities . improved vacuum truck orders are inclusive of hydro-excavation products with applications in industrial markets . non-u.s. orders decreased by $ 0.6 million for the year ended december 31 , 2014. compared with the prior year , orders for street sweepers and sewer cleaners in canada were $ 7.0 million lower , while orders for sewer cleaners in the middle east were also down $ 3.3 million . partially offsetting these decreases were increased orders of $ 8.8 million for street sweepers in the middle east , which were largely driven by a large fleet order during the second quarter of 2014. net sales increased by $ 62.6 million , or 13 % , for the year ended december 31 , 2014. u.s. sales increased $ 43.1 million , primarily driven by increased shipments of vacuum trucks and street sweepers of $ 25.5 million and $ 10.4 million , respectively . vacuum truck shipments exceeded prior-year levels , largely due to increased production throughput and productivity improvements within our manufacturing facilities which have facilitated increased sales of hydro-excavator products . higher sales of street sweepers reflected improving municipal demand . non-u.s. sales increased $ 19.5 million , or 25 % , primarily due to increased street sweeper sales to the middle east and canada , and increased sewer cleaner shipments to mexico and canada . cost of sales increased by $ 33.8 million for the year ended december 31 , 2014. the increase was primarily due to higher sales volumes , which resulted in a $ 31.5 million increase in cost of sales , as well as increased costs associated with product mix relating to higher-content products within our industrial markets , partially offset by productivity improvements . gross margin for the year ended december 31 , 2014 improved to 23.3 % from 20.3 % in the prior year largely due to favorable mix associated with higher sales to industrial customers , including increased shipments of hydro-excavation products . gross margin further benefited from favorable pricing , improved productivity and manufacturing facilities utilization improvements . seg & a expenses increased by $ 5.1 million for the year ended december 31 , 2014. the higher seg & a expenses were largely the result of increased employee incentive and stock-based compensation expense , product liability costs and consulting expenses of $ 1.9 million , $ 1.6 million and $ 1.1 million , respectively . operating income increased by $ 23.7 million , or 41 % , for the year ended december 31 , 2014. the increase in operating income was a result of higher gross profit of $ 28.8 million , primarily attributable to operating leverage and favorable product mix , offset by a $ 5.1 million increase in seg & a expenses . backlog was $ 218.3 million at december 31 , 2014 , up 10 % compared to $ 199.3 million at december 31 , 2013. backlog for street sweepers increased by $ 30.3 million , largely as a result of significant fleet orders , while backlog for sewer cleaners and vacuum trucks declined by $ 12.1 million , primarily as a result of measures taken to increase production capacity to manage backlog and shorten lead times for sewer cleaners and vacuum trucks . 24 safety and security systems the following table summarizes the safety and security systems group 's operating results as of and for the years ended december 31 , 2015 , 2014 and 2013 : replace_table_token_7_th year ended december 31 , 2015 vs. year ended december 31 , 2014 total orders decreased by $ 14.9 million , or 6 % , for the year ended december 31 , 2015 . u.s. orders decreased by $ 4.4 million , primarily due to a $ 5.4 million decrease in orders for outdoor warning systems when compared to the prior year that included two large orders that did not repeat , and a $ 6.8 million decrease in industrial orders attributable to lower demand in oil and gas markets and domestic coal markets . these decreases were partially offset by a $ 7.8 million improvement in orders from public safety markets , largely driven by improved police orders . non-u.s. orders decreased by $ 10.5 million , or 10 % , primarily due to an $ 8.3 million unfavorable foreign currency effect . excluding the unfavorable foreign currency effect , non-u.s orders were adversely impacted by a $ 6.5 million decline in industrial orders , primarily due to softness in the international oil and gas markets , a $ 3.5 million reduction in orders for products sold into international coal markets and a $ 2.8 million decrease in orders for outdoor warning systems . these reductions were offset by a $ 10.6 million increase in orders from european and other international public safety markets associated with improved demand , as well as the effects of several large orders received during the year . net sales decreased by $ 8.6 million for the year ended december 31 , 2015 . u.s. sales decreased by $ 3.4 million , largely due to a $ 6.0 million decrease in sales of industrial products , attributable to lower demand in oil and gas markets and domestic coal markets , which was partially offset by a $ 2.7 million improvement in sales into public safety markets . non-u.s. sales decreased by $ 5.2 million , principally due to an unfavorable foreign currency impact of $ 8.2 million . excluding unfavorable foreign currency effects , non-u.s. sales increased by $ 3.0 million , largely due to a $ 10.9 million improvement in sales into european public safety markets and a $ 1.2 million increase in other international public safety markets . these increases were partially offset by a $ 5.4 million reduction in sales of industrial products into international oil and
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | debt settlement charges there were no debt settlement charges in 2014. in the first quarter of 2013 , the company recorded $ 8.7 million of charges related to the termination of our prior debt facilities . the expenses included the write-off of deferred financing fees of $ 4.5 million and a prepayment penalty of $ 4.2 million . other expense , net other expense , net totaled $ 1.7 million for the year ended december 31 , 2014 , as compared to $ 0.1 million in the prior year . the increase was largely driven by higher realized losses from foreign currency transactions . income tax ( expense ) benefit the company recognized income tax expense of $ 23.7 million for the year ended december 31 , 2014 , compared to an income tax benefit of $ 108.6 million in the prior year . the company 's effective tax rate for the year ended december 31 , 2014 was 28.4 % , compared to ( 247.4 ) % in 2013. in the second quarter of 2013 , it was determined that $ 102.4 million of valuation allowance previously recorded against u.s. deferred tax assets could be released . this evaluation was based on a qualitative and quantitative analysis of current and expected domestic earnings , industry and market trends , tax planning strategies and general business risks , that resulted in a more likely than not conclusion of being able to realize a significant portion of our u.s. deferred tax assets .
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the net proceeds of the offering , including the full exercise of the option , were approximately $ 10.6 million , after deducting the underwriting discounts and commissions and the other estimated offering expenses payable by us . in june 2017 , we entered into a controlled equity offering sm sales agreement ( sales agreement ) with cantor fitzgerald & co. ( cantor ) , as sales agent , pursuant to which we may offer and sell , from time to time through cantor , shares of our common stock , par value $ 0.001 per share , providing for aggregate sales proceeds of up to $ 20,000,000. under the sales agreement , cantor may sell such shares of common stock in sales deemed to be an at the market offering ( atm ) as defined in rule 415 ( a ) ( 4 ) promulgated under the securities act of 1933 , as amended , with us setting the parameters for the sale of shares thereunder , including the number of shares to be issued , the time period during which sales are requested to be made , any limits on the number of shares that may be sold in any one trading day , 63 and any minimum price below which sales may not be made . the sales agreement provides that cantor will be entitled to compensation for its services equal to 3.0 % of the gross proceeds from the sale of shares sold pursuant to the sales agreement . we have no obligation to sell any shares under the sales agreement , and may at any time suspend solicitations and offers under the sales agreement . from january 1 , 2018 through march 29 , 2018 , we sold an aggregate of 527,000 shares of our common stock and received $ 4.1 million after deducting commissions related to the sales agreement . in september 2017 , we closed an underwritten public offering in which we sold an aggregate of 3,967,500 shares of common stock , including 517,500 shares sold in connection with the exercise in full by the underwriters of their option to purchase additional shares . the net proceeds of the offering , including the full exercise of the option , were approximately $ 26.9 million , after deducting underwriting discounts , commissions , and other offering expenses payable by us . we will need to raise additional capital in the form of debt or equity or through partnerships to fund additional development of our product candidates , and we may in-license , acquire , or invest in complementary businesses or products . in addition , as capital resources permit , we may augment or otherwise modify the clinical development plans described herein . research and development expenses we expense all of our research and development expenses as they are incurred . research and development costs that are paid in advance of performance are capitalized as a prepaid expense until incurred . research and development expenses primarily include : non-clinical development , preclinical research , and clinical trial and regulatory-related costs ; expenses incurred under agreements with sites and consultants that conduct our clinical trials ; and employee-related expenses , including salaries , benefits , travel , and stock-based compensation expense . substantially all of our research and development expenses to date have been incurred in connection with reproxalap . we expect our research and development expenses to increase for the foreseeable future as we advance reproxalap and other compounds through preclinical and clinical development . the process of conducting clinical trials necessary to obtain regulatory approval is costly and time consuming . we are unable to estimate with any certainty the costs we will incur in the continued development of reproxalap and our other product candidates . clinical development timelines , the probability of success , and development costs can differ materially from expectations . we may never succeed in achieving marketing approval for our product candidates . the costs of clinical trials may vary significantly over the life of a project owing to , but not limited to , the following : per patient trial costs ; the number of sites included in the trials ; the countries in which the trials are conducted ; the length of time required to enroll eligible patients ; the design of the trials ; the cost of manufacturing the drug ; the number of patients that participate in the trials ; the number of doses that patients receive ; the cost of vehicle or active comparative agents used in trials ; the drop-out or discontinuation rates of patients ; potential additional safety monitoring or other studies requested by regulatory agencies ; the duration of patient follow-up ; and the efficacy and safety profile of the product candidate . 64 we do not expect reproxalap and our other product candidates to be commercially available , if at all , for the next several years . general and administrative expenses general and administrative expenses consist primarily of salaries and related benefits , including stock-based compensation . our general and administrative expenses consisted primarily of payroll expenses for our full-time employees during the years ended december 31 , 2017 and 2016. other general and administrative expenses include professional fees for auditing , tax , and legal services , including patent related costs . we expect that general and administrative expenses will increase in the future as we expand our operating activities , continue to incur additional costs associated with being a publicly-traded company , and maintain compliance with exchange listing and sec requirements . these increases will likely include higher consulting costs , legal fees , accounting fees , directors ' and officers ' liability insurance premiums , and fees associated with investor relations . story_separator_special_tag losses have resulted principally from costs incurred in our clinical trials and other research and development programs , as well as from our general and administrative expenses . research and development expenses . research and development expenses were $ 16.3 million for the year ended december 31 , 2017 compared to $ 13.2 million for the same period in 2016. the increase of $ 3.1 million is primarily related to the increase in our external research and development expenditures , including clinical and manufacturing costs , and a decrease in personnel and preclinical costs . general and administrative expenses . general and administrative expenses were $ 6.2 million for the year ended december 31 , 2017 , compared to $ 5.5 million for the year ended 2016. the increase of approximately $ 0.7 million is primarily related to an increase in personnel , legal , and professional service costs . other income ( expense ) . total other income ( expense ) was approximately $ 148,000 for the year ended december 31 , 2017 compared to $ ( 3,000 ) for the year ended december 31 , 2015 , and consisted of interest income partially offset by interest expense related to our credit facility . story_separator_special_tag the outcome , costs , and timing of seeking and obtaining regulatory approvals from the fda , and any similar regulatory agencies ; the timing and costs associated with manufacturing reproxalap and our other product candidates for clinical trials and other studies and , if approved , for commercial sale ; our need and ability to hire additional management , development , and scientific personnel ; the cost to maintain , expand and defend the scope of our intellectual property portfolio , including the amount and timing of any payments we may be required to make , or that we may receive , in connection with licensing , filing , prosecuting , defending , and enforcing of any patents or other intellectual property rights ; the timing and costs associated with establishing sales and marketing capabilities ; market acceptance of reproxalap and our other product candidates ; the costs of acquiring , licensing , or investing in additional businesses , products , product candidates , and technologies ; and our need to remediate any material weaknesses and implement additional internal systems and infrastructure , including financial and reporting systems . we may need or desire to obtain additional capital to finance our operations through debt , equity , or alternative financing arrangements . we may also seek capital through collaborations or partnerships with other companies . the issuance of debt could require us to grant additional liens on certain of our assets that may limit our flexibility . if we raise additional capital by issuing equity securities , the terms and prices for these financings may be much more favorable to the new investors than the terms obtained by our existing stockholders . these financings also may significantly dilute the ownership of our existing stockholders . if we are unable to obtain additional financing , we may be required to reduce the scope of our future activities , which could harm our business , financial condition , and operating results . there can be no assurance that any additional financing required in the future will be available on acceptable terms , if at all . 71 we will continue to incur costs as a public company including , but not limited to , costs and expenses for directors fees ; increased directors and officers insurance ; investor relations fees ; expenses for compliance with the sarbanes-oxley act of 2002 and rules implemented by the sec and nasdaq , on which our common stock is listed ; and various other costs . the sarbanes-oxley act of 2002 requires that we maintain effective disclosure controls and procedures and internal controls . the following table summarizes our cash flows for the years ended december 31 , 2017 and 2016 : replace_table_token_3_th operating activities . net cash used in operating activities was $ 19.2 million in 2017 , compared to net cash used in operating activities of $ 15.1 million in 2016. the primary use of cash was to fund our operations . the increase in the amount of cash used in operating activities for 2017 as compared to 2016 was due to an increase in research and development expenses , in addition to general and administrative expenses . investing activities . net cash used in investing activities in 2017 were $ 10.2 million , related primarily to the purchase of marketable securities partially offset by sales and maturities of marketable securities , compared to net cash used in investing activities in 2016 of $ 0.2 million , related primarily to the purchase of marketable securities partially offset by sales and maturities of marketable securities . financing activities . net cash provided by financing activities was $ 37.4 million for the year ended december 31 , 2017 , related to our underwritten public offerings , compared to net cash provided by financing activities of $ 12.7 million for year ended 2016 , related to our underwritten public offerings . off-balance sheet arrangements through december 31 , 2017 , we have not entered into and did not have any relationships with unconsolidated entities or financial collaborations , such as entities often referred to as structured finance or special purpose entities , which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purpose . contractual obligations and commitments in september 2017 , we executed a lease agreement ( the office lease ) , which was amended in november 2017. the amended lease as of december 31 , 2017 , consisted of approximately 9,351 square feet of office space of office space located in lexington , massachusetts ( the premises ) . we intend to use the premises as our corporate headquarters . the term of the office lease is through december
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources we have funded our operations primarily from the sale of equity securities and convertible equity securities and borrowings under our credit facility , discussed below . we have incurred operating losses since inception and negative cash flows from operating activities in devoting substantially all of our efforts towards research and development . at december 31 , 2017 , we had total stockholders ' equity of approximately $ 39.6 million , and cash , cash equivalents , and marketable securities of $ 42.9 million . during the year ended december 31 , 2017 , we had net loss of approximately $ 22.3 million . we expect to generate operating losses for the foreseeable future . we are a party to a loan and security agreement ( the credit facility ) with pacific western bank ( pacific western , formerly square 1 bank ) , which was originally entered into in april 2012 and has been subsequently amended . pursuant to the credit facility , pacific western agreed to make term loans in a principal amount of up to $ 5.0 million available to us to fund expenses related to our clinical trials and general working capital purposes . the term loans were made available to us upon the following terms : ( i ) $ 2.0 million was made available in 69 november 2014 ( which was used in part to refinance then outstanding loans from pacific western ) ; and ( ii ) $ 3.0 million became available to us in may 2016 following the satisfaction of certain conditions , including receipt of positive phase 2 clinical trial results in noninfectious anterior uveitis . in november 2017 , we amended our credit facility such that any term loan we draw is payable as interest only prior to october 2018 and thereafter is payable in monthly installments of principal plus accrued interest over 36 months . each term loan accrues interest from its date of issue at a variable annual interest rate equal to the greater of 2.0 % plus prime or 5.25 % per annum . the annualized interest rate as of december 31 , 2017 was 6.56 % .
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our debt financing strategy is focused on raising unsecured debt in the global bank and debt capital markets , with a limited utilization of export credit or other forms of secured financing . in 2018 , we issued a total of $ 3.03 billion in senior unsecured notes bearing interest at fixed rates ranging from 2.50 % to 4.625 % with one note bearing interest at a floating rate of libor plus 1.125 % , with maturities ranging from 2021 to 2028. in addition , we increased our unsecured revolving credit facility capacity to approximately $ 4.6 billion , representing a 21.7 % increase from 2017 and extended the final maturity to may 5 , 2022 with an interest of libor plus 1.05 % . we ended 2018 with total debt outstanding , net of discounts and issuance costs , of $ 11.5 billion , of which 86.4 % was at a fixed rate and 96.5 % of which was unsecured . as of december 31 , 2018 , our composite cost of funds was 3.46 % . 46 in 2018 , total revenues increased by 10.8 % to $ 1.7 billion , compared to 2017. the increase in our total revenues is primarily due to the $ 2.4 billion increase in the net book value of our operating lease portfolio . income before taxes increased 5.0 % to $ 640.1 million for the year ended december 31 , 2018 as compared to $ 609.5 million for the year ended december 31 , 2017. the increase in our income before taxes was principally driven by the continued growth of our fleet , partially offset by a reduction of our aircraft sales and trading activity . our pre-tax profit margin for the year ended december 31 , 2018 was 38.1 % as compared to 40.2 % for the year ended december 31 , 2017. during the year ended december 31 , 2018 , our net income was $ 510.8 million , or $ 4.60 per diluted share compared to $ 756.2 million , or $ 6.82 per diluted share for the year ended december 31 , 2017. the decrease was primarily due to the enactment of the u.s. tax cuts and jobs act ( the “ tax reform act ” ) , which was effective beginning january 1 , 2018 , which resulted in a tax benefit of $ 354.1 million , or $ 3.17 per diluted share during the year ended december 31 , 2017. this decrease in net income was partially offset by the continued growth in our fleet . our adjusted net income before income taxes excludes the effects of certain non-cash items , one-time or non-recurring items , such as settlement expense , net of recoveries , that are not expected to continue in the future and certain other items . our adjusted net income before income taxes for the year ended december 31 , 2018 was $ 690.3 million or $ 6.20 per diluted share , compared to $ 657.8 million , or $ 5.94 per diluted share for the year ended december 31 , 2017. the increase in our adjusted net income before income taxes was principally driven by the continued growth of our fleet , partially offset by a reduction of our aircraft sales and trading activity . our adjusted margin before income taxes for the year ended december 31 , 2018 was 41.1 % compared to 43.4 % for the year ended december 31 , 2017. adjusted net income before income taxes , adjusted margin before income taxes and adjusted diluted earnings per share before income taxes are measures of financial and operational performance that are not defined by generally accepted accounting principles ( “ gaap ” ) . see note 3 in “ item 6. selected financial data ” of this annual report on form 10-k for a discussion of adjusted net income before income taxes and adjusted diluted earnings per share before income taxes as non-gaap measures and a reconciliation of these measures to net income . our fleet we have continued to build one of the world 's youngest operating lease portfolios , including some of the most fuel-efficient commercial jet transport aircraft . our fleet , based on net book value , increased by 18.3 % , to $ 15.7 billion as of december 31 , 2018 , compared to $ 13.3 billion as of december 31 , 2017. during the year ended december 31 , 2018 , we took delivery of 37 aircraft from our new order pipeline , purchased nine incremental aircraft and sold 15 aircraft , ending the year with a total of 275 aircraft . our weighted average fleet age and weighted average remaining lease term as of december 31 , 2018 were 3.8 years and 6.8 years , respectively . we also managed 61 aircraft as of december 31 , 2018 . 47 portfolio metrics of our fleet as of december 31 , 2018 and 2017 are as follows : replace_table_token_13_th ( 1 ) weighted‑average fleet age and remaining lease term calculated based on net book value . ( 2 ) as of december 31 , 2018 , we had options to acquire up to five airbus a350-1000 aircraft and 45 boeing 737-8 max aircraft . as of december 31 , 2017 , we had options to acquire up to five airbus a350-1000 aircraft . the following table sets forth the net book value and percentage of the net book value of our flight equipment subject to operating lease in the indicated regions based on each airline 's principal place of business as of december 31 , 2018 and 2017 : replace_table_token_14_th 48 the following table sets forth the number of aircraft we owned by aircraft type as of december 31 , 2018 and 2017 : replace_table_token_15_th ( 1 ) as of december 31 , 2018 , we had six aircraft held for sale . story_separator_special_tag the outstanding balance under our secured term facilities as of december 31 , 2018 was comprised of a $ 0.5 million fixed rate debt facility with an interest rate of 4.58 % and $ 370.7 million of floating rate debt with interest rates ranging from libor plus 1.15 % to libor plus 2.99 % . as of december 31 , 2018 , the remaining maturities of all secured term facilities ranged from approximately 0.1 years to approximately 4.5 years . 55 as of december 31 , 2017 , the outstanding balance on our secured term facilities was $ 484.0 million and we had pledged 19 aircraft as collateral with a net book value of $ 1.1 billion . the outstanding balance under our secured term facilities as of december 31 , 2017 was comprised of a $ 2.6 million fixed rate debt facility with an interest rate of 4.58 % and $ 481.5 million floating rate debt with interest rates ranging from libor plus 1.15 % to libor plus 2.99 % . export credit financings in march 2013 , we issued $ 76.5 million in secured notes due 2024 guaranteed by the export-import bank of the united states . the notes mature on august 15 , 2024 and bear interest at a rate of 1.617 % per annum . we used the proceeds of the offering to refinance a portion of the purchase price of two boeing aircraft , which serve as collateral for the notes , and the related premium charged by export-import bank for its guarantee of the notes . as of december 31 , 2018 and 2017 , we had $ 38.3 million and $ 44.9 million in export credit financing outstanding , respectively . credit ratings our investment grade credit ratings help us to lower our cost of funds and broaden our access to attractively priced capital . our long-term debt financing strategy is focused on continuing to raise unsecured debt in the global bank and investment grade capital markets . in 2018 , kroll bond ratings , standard and poor 's and fitch ratings each reaffirmed their issuer and senior unsecured debt ratings and outlook . the following table summarizes our current credit ratings : rating agency long-term debt corporate rating outlook date of last ratings action kroll bond ratings a- a- stable outlook december 14 , 2018 standard and poor 's bbb bbb stable outlook december 18 , 2018 fitch ratings bbb bbb stable outlook july 17 , 2018 while a ratings downgrade would not result in a default under any of our debt agreements , it could adversely affect our ability to issue debt and obtain new financings , or renew existing financings , and it would increase the cost of our financings . 56 results of operations replace_table_token_19_th ( 1 ) on december 22 , 2017 , the u.s. tax cuts and jobs act ( the “ tax reform act ” ) was signed into law . the tax reform act significantly revised the u.s. corporate income tax law by , among other things , lowering the u.s. corporate tax rate from 35 % to 21 % , effective january 1 , 2018. accounting standards codification ( “ asc ” ) 740 requires that the impact of tax legislation be recognized in the period in which the law was enacted . as a result of the tax reform act , we recorded a tax benefit of $ 354.1 million due to the remeasurement of deferred tax assets and liabilities in the year ended december 31 , 2017 . ( 2 ) adjusted net income before income taxes ( defined as net income excluding the effects of certain non-cash items , one-time or non-recurring items , such as settlement expense , net of recoveries , that are not expected to continue in the future and certain other items ) , adjusted margin before income taxes ( defined as adjusted net income before income taxes divided by total revenues , excluding insurance recoveries ) , adjusted pre-tax return on equity ( defined as adjusted net income before income taxes divided by average shareholders ' equity ) and adjusted diluted earnings per share before income taxes ( defined as adjusted net income before income taxes plus assumed conversions divided by the weighted average diluted common shares outstanding ) are measures of operating performance that are not defined by gaap and should not be considered as an alternative to net income , pre-tax profit margin , earnings per share , pre-tax return on equity and diluted earnings per share , or any other performance measures 57 derived in accordance with gaap . adjusted net income before income taxes , adjusted margin before income taxes , adjusted pre-tax return on equity and adjusted diluted earnings per share before income taxes , are presented as supplemental disclosure because management believes they provide useful information on our earnings from ongoing operations . management and our board of directors use adjusted net income before income taxes , adjusted margin before income taxes , adjusted pre-tax return on equity and adjusted diluted earnings per share before income taxes to assess our consolidated financial and operating performance . management believes these measures are helpful in evaluating the operating performance of our ongoing operations and identifying trends in our performance , because they remove the effects of certain non-cash items , one-time or non-recurring items that are not expected to continue in the future and certain other items from our operating results . adjusted net income before income taxes , adjusted margin before income taxes , adjusted pre-tax return on equity and adjusted diluted earnings per share before income taxes , however , should not be considered in isolation or as a substitute for analysis of our operating results or cash flows as reported under gaap . adjusted net income before income taxes , adjusted margin before income taxes , adjusted pre-tax return on equity and adjusted diluted earnings per share before income
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | debt our debt financing was comprised of the following at december 31 , 2018 and 2017 : replace_table_token_18_th ( 1 ) this rate does not include the effect of upfront fees , undrawn fees or issuance cost amortization . senior unsecured notes ( including medium-term note program ) we issued $ 2.95 billion in aggregate principal amount of senior unsecured notes during 2018 , comprised of ( i ) $ 700.0 million in aggregate principal amount of 3.500 % notes due 2022 ; ( ii ) $ 500.0 million in aggregate principal amount of 4.625 % notes due 2028 ; ( iii ) $ 500.0 million in aggregate principal amount of 3.875 % notes due 2023 ; ( iv ) $ 550.0 million in aggregate principal amount of 2.50 % notes due 2021 ; and ( v ) $ 700.0 million in aggregate principal amount of 3.250 % notes due 2025. in november 2018 , we also issued $ 75.0 million aggregate principal amount of senior unsecured notes due 2022 in a private placement that was not registered with the securities and exchange commission , bearing interest at libor plus a margin of 1.125 % per year . furthermore , on november 20 , 2018 , we established a medium-term note program , under which we may issue , from time to time , up to $ 15.0 billion of debt securities designated as our medium-term notes , series a. in january 2019 , we issued $ 700.0 million in aggregate principal amount of 4.250 % medium-term notes , series a , due february 1 , 2024 under our medium-term note program . as of december 31 , 2018 , we had $ 10.0 billion in aggregate principal amount of senior unsecured notes outstanding with remaining terms ranging from 0.1 years to 9.8 years and bearing interest at fixed rates ranging from 2.125 % to 7.375 % with one note bearing interest at a floating rate of libor plus 1.125 % . as of december 31 , 2017 , we had $ 8.0 billion in aggregate principal amount of senior unsecured notes outstanding bearing interest at fixed rates ranging from 2.125 % to 7.375 % . public senior notes ( including medium-term note program ) . of our $ 10.0
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the allowance is based on two basic principles of accounting : ( 1 ) “ accounting for contingencies , ” which requires that losses be accrued when it is probable that a loss has occurred at the balance sheet date and such loss can be reasonably estimated ; and ( 2 ) the “ receivables ” topic , which requires that losses be accrued on impaired loans based on the differences between the value of collateral , present value of future cash flows or values that are observable in the secondary market and the loan balance . the allowance for loan losses is determined based upon estimates that can and do change when the actual risk , loss events , or changes in other factors , occur . the analysis of the allowance uses a historical loss view as an indicator of future losses and as a result could differ from the actual losses incurred in the future . although management believes the allowance to be adequate , ultimate losses may vary from its estimates . at least quarterly , the board of directors reviews the adequacy of the allowance , including consideration of the relative risks in the portfolio , current economic conditions and other factors . if the board of directors and management determine that changes are warranted based on those reviews , the allowance is adjusted . for further information regarding our allowance for loan losses , see “ allowance for loan losses activity . ” overview the company recorded net income in 2020 of $ 7,055,000 , an increase of $ 1,555,000 ( 28.3 % ) from $ 5,500,000 in 2019. diluted earnings per share were $ 1.20 for 2020 and $ 0.94 for 2019. for 2020 , the company realized a return on average equity of 7.94 % and a return on average assets of 0.86 % , compared to 6.92 % and 0.78 % , respectively , in 2019. net income for 2019 increased $ 600,000 ( 12.2 % ) from $ 4,900,000 in 2018. diluted earnings per share for 2018 were $ 0.83. for 2018 , the company realized a return on average equity of 6.77 % and return on average assets of 0.72 % . table one below provides a summary of the components of net income for the years indicated ( dollars in thousands ) : 38 table one : components of net income replace_table_token_7_th * fully taxable equivalent basis ( fte ) during 2020 , total assets of the company increased $ 148,638,000 ( 20.6 % ) from $ 720,353,000 at december 31 , 2019 to $ 868,991,000 at december 31 , 2020. at december 31 , 2020 , loans totaled $ 480,278,000 , an increase of $ 80,617,000 ( 20.2 % ) from the ending balance of $ 399,661,000 at december 31 , 2019. deposits increased $ 139,340,000 or 23.0 % from $ 604,837,000 at december 31 , 2019 to $ 744,177,000 at december 31 , 2020. shareholders ' equity increased $ 10,186,000 or 12.3 % from $ 82,909,000 at december 31 , 2019 to $ 93,095,000 at december 31 , 2020. the company ended 2020 with a leverage capital ratio of 8.3 % and a total risk-based capital ratio of 16.2 % compared to a leverage capital ratio of 9.2 % and a total risk-based capital ratio of 15.9 % at the end of 2019. results of operations net interest income and net interest margin net interest income represents the excess of interest and fees earned on interest earning assets ( loans , securities , federal funds sold and interest-bearing deposits in other banks ) over the interest paid on deposits and borrowed funds . net interest margin is net interest income expressed as a percentage of average earning assets . the company 's fully taxable equivalent net interest margin was 3.52 % in 2020 , 3.60 % in 2019 , and 3.41 % in 2018. the fully taxable equivalent net interest income increased $ 3,121,000 ( 13.3 % ) , from $ 23,423,000 in 2019 to $ 26,544,000 in 2020. the fully taxable equivalent net interest income increased $ 2,570,000 ( 12.3 % ) , from $ 20,853,000 in 2018 to $ 23,423,000 in 2019. the fully taxable equivalent interest income component increased $ 2,242,000 ( 8.7 % ) from $ 25,884,000 in 2019 to $ 28,126,000 in 2020. the increase in the fully taxable equivalent interest income for 2020 compared to the same period in 2019 is comprised of two components - rate ( down $ 2,312,000 ) and volume ( up $ 4,554,000 ) . the primary driver in this rate decrease was a decrease in the yields on loans which decreased from 4.95 % in 2019 to 4.80 % in 2020 , on the investment portfolio which decreased from 2.81 % in 2019 to 2.46 % in 2020 , and a decrease in the yields on interest-bearing balances in banks which decreased from 2.04 % in 2019 to 0.22 % in 2020. the decreased yield in 2020 compared to 2019 was due to the overall lower interest rate environment . the decreased yield earned on loans , investments and interest-bearing balances in banks was the reason the yield on earning assets decreased from 3.98 % in 2019 to 3.73 % in 2020. the volume increase of $ 4,554,000 was primarily from an increase in loans ( $ 4,346,000 ) and interest-bearing deposits in banks ( $ 627,000 ) , partially offset by a decrease in investment and federal fund balances ( $ 419,000 ) . story_separator_special_tag partially offsetting these increases was a reduction in telephone expense which decreased $ 91,000 ( 26.6 % ) from $ 342,000 in 2018 to $ 251,000 in 2019 and relates to the company converted to a more cost-effective telephone system . the overhead efficiency ratio on a taxable equivalent basis for 2019 was 67.1 % compared to 69.4 % in 2018. provision for income taxes the effective tax rate on income was 26.6 % , 25.6 % , and 24.3 % in 2020 , 2019 and 2018 , respectively . the effective tax rate differs from the federal statutory tax rate due to state tax expense ( net of federal tax effect ) of $ 805,000 , $ 610,000 , and $ 523,000 in these years . tax-exempt income of $ 1,413,000 , $ 1,361,000 , and $ 1,315,000 from investment securities , loans , and bank-owned life insurance in these years helped to reduce the effective tax rate . the higher effective tax rate in 2020 compared 2019 is related to the tax treatment of equity based compensation under accounting standards update 2016-09 ( “ asu 2016-09 ” ) . under asu 2016-09 , if the market value of the company 's stock price on the date restricted stock vests is higher than the company 's stock price on the date the restricted stock was awarded the company receives a tax credit for the difference in values and if the market price on the vesting date is lower than the stock price on the award date the company recognizes additional tax expense . during 2019 , the company recognized a $ 34,000 tax credit under asu 2016-09 and in 2020 the company recognized a $ 39,000 tax expense under asu 2016-09. the company 's taxable income in 2020 was $ 9,611,000 , an increase of $ 2,220,000 ( up 30.0 % ) from $ 7,391,000 in 2019. the company 's taxable income in 2019 increased $ 917,000 ( up 14.2 % ) from $ 6,474,000 in 2018. balance sheet analysis the company 's total assets were $ 868,991,000 at december 31 , 2020 compared to $ 720,353,000 at december 31 , 2019 , representing an increase of $ 148,638,000 ( 20.6 % ) . the average balances of total assets during 2020 were $ 820,587,000 , up $ 117,382,000 or 16.7 % from the 2019 average balances of total assets of $ 703,205,000. story_separator_special_tag single-family residences . other real estate loans consist primarily of loans secured by first trust deeds on commercial , multi-family , and residential properties typically with maturities from three to ten years and original loan-to-value ratios generally from 65 % to 75 % . agriculture loans consist primarily of first trust deed loans on properties that produce grapes , fruit , and nut loans . in general , except in the case of loans under sba programs or farm services agency guarantees , the company does not make long-term residential mortgage loans . average loans in 2020 were $ 447,028,000 , which represents an increase of $ 87,699,000 ( 24.4 % ) compared to the average in 2019. of the $ 87,699,000 increase in 2020 , $ 45,846,000 was comprised of ppp loans . average loans in 2019 were $ 359,329,000 , which represents an increase of $ 50,964,000 ( 16.5 % ) compared to the average in 2018. risk elements the company assesses and manages credit risk on an ongoing basis through a total credit culture that emphasizes excellent credit quality , extensive internal monitoring and established formal lending policies . additionally , the company contracts with an outside loan review consultant to periodically review the existing loan portfolio . management believes its ability to identify and assess risk and return characteristics of the company 's loan portfolio is critical for profitability and growth . management strives to continue its emphasis on credit quality in the loan approval process , through active credit administration and regular monitoring . with this in mind , management has designed and implemented a comprehensive loan review and grading system that functions to continually assess the credit risk inherent in the loan portfolio . 47 ultimately , underlying trends in economic and business cycles influence credit quality . american river bank 's business is concentrated in the sacramento metropolitan statistical area , which is a diversified economy , but with a large state of california government presence and employment base ; in sonoma county , which is focused on businesses within the two communities in which the bank has offices ( santa rosa and healdsburg ) ; and in amador county , in which the bank is primarily focused on businesses within the three communities in which it has offices ( jackson , pioneer , and ione ) . the economy of sonoma county is diversified with professional services , manufacturing , agriculture and real estate investment and construction , while the economy of amador county is reliant upon government , services , retail trade , manufacturing industries and indian gaming . the company has significant extensions of credit and commitments to extend credit that are secured by real estate . the ultimate repayment of these loans is generally dependent on personal or business cash flows or the sale or refinancing of the real estate . the company monitors the effects of current and expected market conditions and other factors on the collectability of real estate loans . the more significant factors management considers involve the following : lease rates and terms , vacancy rates , absorption and sale rates and capitalization rates ; real estate values , supply and demand factors , and rates of return ; operating expenses ; inflation and deflation ; and sufficiency of repayment sources independent of the real estate including , in some instances , personal guarantees . in extending credit and commitments to borrowers , the company generally requires collateral and or guarantees as security . the repayment of such loans is
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash and cash equivalents the balance held in cash and cash equivalents at december 31 , 2020 was $ 42,509,000 , compared to $ 17,810,000 at december 31 , 2019 , an increase of $ 24,699,000 ( 138.7 % ) . the primary reason for the increase in cash and cash equivalents since december 31 , 2019 is directly related to the increase in deposit balances during the same period . investment securities the company classifies its investment securities as trading , held-to-maturity or available-for-sale . the company 's intent is to hold all securities classified as held-to-maturity until maturity and management believes that it has the ability to do so . securities classified as available-for-sale may be sold to implement asset/liability management strategies as part of our contingency funding plan and in response to changes in interest rates , prepayment rates and similar factors . table six below summarizes the values of the company 's investment securities held on december 31 of the years indicated . the company did not have any investment securities classified as trading in any of the years indicated below . 45 table six : investment securities composition ( dollars in thousands ) replace_table_token_13_th net unrealized gains on available-for-sale investment securities totaling $ 8,739,000 were recorded , net of $ 2,583,000 in tax liabilities , as accumulated other comprehensive income within shareholders ' equity at december 31 , 2020 and net unrealized gains on available-for-sale investment securities totaling $ 2,544,000 were recorded , net of $ 752,000 in tax liabilities , as accumulated other comprehensive income within shareholders ' equity at december 31 , 2019. management periodically evaluates each investment security in a loss position for other than temporary impairment relying primarily on industry analyst reports , observation of market conditions and interest rate fluctuations .
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recognition of an insurance settlement gain . our 2019 net income per share attributable to nl stockholders includes : a loss of $ .31 per share , net of income tax benefit , related to the litigation settlement expense , recognized mainly in the second quarter , income of $ .08 per share , net of income tax expense , related to insurance recoveries , recognized mainly in the second quarter , income of $ .07 per share , net of income tax expense , related to a gain from a sale of excess property , recognized in the third quarter , income of $ .05 per share , net of income tax expense , related to a gain from the sale of our insurance and risk management business , recognized in the fourth quarter , a loss of $ .03 per share related to kronos ' fourth quarter recognition of a non-cash deferred income tax expense primarily related to the revaluation of kronos ' net deferred income tax asset in germany as a result of a decrease in the german trade tax rate , income of $ .01 per share related to kronos ' fourth quarter recognition of an income tax benefit related to the favorable settlement of a prior year tax matter in germany , and income of $ .01 per share related to kronos ' insurance settlement gain recognized in the fourth quarter . our 2018 net loss per share attributable to nl stockholders includes : a loss of $ 1.01 per share related to the litigation settlement expense , recognized in the second quarter , a loss of $ .02 per share related to kronos ' tax on global intangible low-tax income , recognized in the fourth quarter , and a loss of $ .01 per share related to kronos ' reserve for uncertain tax positions , recognized in the first and fourth quarters . outlook we currently expect our net income attributable to nl stockholders in 2021 to be higher than 2020 primarily due to higher expected equity in earnings from kronos partially offset by higher litigation fees and related costs and higher environmental remediation and related costs . - 34 - income ( loss ) from operations the following table shows the components of our income ( loss ) from operations . replace_table_token_5_th n.m. not meaningful . the following table shows the components of our income ( loss ) before income taxes exclusive of our income ( loss ) from operations . replace_table_token_6_th n.m. not meaningful compx international inc. replace_table_token_7_th net sales - net sales decreased approximately $ 9.7 million in 2020 compared to 2019 primarily due to lower security products sales across a variety of markets due to reduced demand resulting from the covid-19 pandemic , offset slightly by higher marine component sales to the towboat market . relative changes in selling prices did not have a material impact on net sales comparisons . - 35 - net sales increased approximately $ 6.0 million in 2019 compared to 2018 primarily due to higher marine components sales to the towboat market . relative changes in selling prices did not have a material impact on net sales comparisons . cost of sales and gross margin - cost of sales decreased in 2020 compared to 2019 primarily due to the effects of lower sales for compx 's security products business slightly offset by the higher compx marine component sales discussed above . gross margin as a percentage of sales decreased over the same period primarily as a result of the lower gross margin percentage at security products . cost of sales increased in 2019 compared to 2018 due to the effects of increased sales for both compx 's security products and marine components businesses and increased labor costs at security products . as a result , gross margin as a percentage of sales decreased over the same period . the decrease in gross margin percentage is the result of the decline in security products gross margin percentage in 2019 as compared to 2018. operating costs and expenses - operating costs and expenses consist primarily of sales and administrative-related personnel costs , sales commissions and advertising expenses directly related to product sales and administrative costs relating to compx 's businesses and its corporate management activities , as well as gains and losses on property and equipment . operating costs and expenses as a percentage of sales increased in 2020 compared to 2019 due to the effect of lower sales . operating costs and expenses as a percentage of sales in 2019 were comparable to 2018. income from operations - as a percentage of net sales , operating income decreased from 2019 to 2020 and decreased from 2018 to 2019. operating margins were primarily impacted by the factors impacting net sales , cost of sales , gross margin and operating costs discussed above . general - compx 's profitability primarily depends on its ability to utilize production capacity effectively , which is affected by , among other things , the demand for its products and its ability to control manufacturing costs , primarily comprised of labor costs and materials . the materials used in its products consist of purchased components and raw materials some of which are subject to fluctuations in the commodity markets such as zinc , brass and stainless steel . total material costs represented approximately 43 % of compx 's cost of sales in 2020 , with commodity-related raw materials accounting for approximately 12 % of cost of sales . during 2019 and 2020 , markets for the primary commodity-related raw materials used in the manufacture of its locking mechanisms , primarily zinc and brass , remained relatively stable . over those same periods , the market for stainless steel , the primary raw material used for the manufacture of marine exhaust headers and pipes and wake enhancement systems , also remained relatively stable . story_separator_special_tag kronos experienced lower sales volumes in all major markets in 2020 as compared to sales volumes in 2019 , primarily due to demand contraction related to the covid-19 pandemic , which mainly impacted the second and third quarters . the following table shows kronos ' capacity utilization rates during 2019 and 2020. kronos ' production rates in 2020 were impacted by the covid-19 pandemic as it decreased production levels early in the third quarter to correspond with a temporary decline in market demand , then increased production levels later in the third quarter and into the fourth quarter to align with improved demand and its market expectations for the near term . replace_table_token_11_th - 41 - net sales - kronos ' net sales decreased $ 92.3 million , or 5 % , in 2020 compared to 2019 , primarily due to a 6 % decrease in sales volumes ( which decreased net sales by approximately $ 104 million ) and a 2 % decrease in average tio 2 selling prices ( which decreased net sales by approximately $ 35 million ) . in addition to the impact of lower sales volumes and lower average selling prices , kronos estimates that changes in currency exchange rates ( primarily the euro ) increased its net sales by approximately $ 9 million , or 1 % , as compared to 2019. kronos ' sales volumes decreased 6 % in 2020 as compared to the sales volumes of 2019 due to lower sales volumes in all major markets , with the european and export markets experiencing the most significant reductions . a significant portion of the sales volume decrease occurred in the second and third quarters as a result of the demand contraction related to the covid-19 pandemic . kronos ' net sales increased $ 69.2 million , or 4 % , in 2019 compared to 2018 , primarily due to the net effect of a 6 % decrease in average tio 2 selling prices ( which decreased net sales by approximately $ 100 million ) , a 15 % increase in sales volumes ( which increased net sales by approximately $ 249 million ) and changes in currency exchange rates . tio 2 selling prices will increase or decrease generally as a result of competitive market pressures , changes in the relative level of supply and demand as well as changes in raw material and other manufacturing costs . kronos ' sales volumes increased 15 % in 2019 as compared to the sales volumes of 2018 primarily due to strength in the european , north american and export markets in 2019 as compared to 2018. in addition to the impact of changes in average tio 2 selling prices and sales volumes , kronos estimates that changes in currency exchange rates decreased its net sales by approximately $ 49 million , or 3 % , as compared to 2018. cost of sales and gross margin - kronos ' cost of sales decreased $ 57.3 million , or 4 % , in 2020 compared to 2019 due to the net effect of a 6 % decrease in sales volumes , higher raw materials and other production costs of approximately $ 6 million ( including higher cost for third-party feedstock and other raw materials ) and currency exchange rate fluctuations . kronos ' cost of sales per metric ton of tio 2 sold in 2020 was higher as compared to 2019 ( excluding the effect of changes in currency exchange rates ) primarily due to a moderate rise in the cost of third-party feedstock we procured in 2019 and the first half of 2020. kronos ' cost of sales as a percentage of net sales increased to 79 % in 2020 compared to 78 % in 2019 primarily due to the unfavorable effects of lower average tio 2 selling prices and higher raw materials and other production costs , as discussed above , partially offset by improved sales and production volumes from its ilmenite mine operations . kronos ' gross margin as a percentage of net sales decreased to 21 % in 2020 compared to 22 % in 2019. as discussed and quantified above , kronos ' gross margin as a percentage of net sales decreased primarily due to the net effect of lower sales volumes , lower average tio 2 selling prices , higher raw materials and other production costs and higher sales from its ilmenite mine operations . kronos ' cost of sales increased $ 245.2 million or 22 % in 2019 compared to 2018 primarily due to the net impact of a 15 % increase in sales volumes , higher raw materials and other production costs of approximately $ 122 million ( including higher cost for third-party feedstock costs , energy and other raw materials ) and currency fluctuations ( primarily the euro ) . kronos ' cost of sales as a percentage of net sales increased to 78 % in 2019 compared to 66 % in 2018 primarily due to the unfavorable effects of lower average selling prices and higher raw materials and other production costs , as discussed above . kronos ' gross margin as a percentage of net sales decreased to 22 % in 2019 compared to 34 % in 2018. as discussed and quantified above , kronos ' gross margin decreased primarily due to the net effect of lower average selling prices , higher sales volumes and higher raw materials and other production costs . other operating income and expense , net - kronos ' selling , general and administrative expenses decreased $ 9.6 million , or 4 % , in 2020 compared to 2019 primarily due to variable costs related to lower overall sales volumes . kronos ' selling , general and administrative expenses were $ 228.2 million in 2019 , which were comparable to such expenses in 2018. income from operations - income from operations decreased by $ 29.6 million , from $ 145.8 million in 2019
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | liquidity and capital resources consolidated cash flows operating activities trends in cash flows from operating activities , excluding the impact of deferred taxes and relative changes in assets and liabilities , are generally similar to trends in our income ( loss ) from operations . changes in working capital are primarily related to changes in receivables and inventories ( as discussed below ) and payables and accrued liabilities . net cash provided by operating activities was $ 19.0 million in 2020 compared to $ 27.4 million in 2019. the $ 8.4 million net decrease in cash provided by operating activities includes the net effects of : first annual installment payment of $ 12.0 million in 2020 compared to the initial cash payment of $ 25.0 million in 2019 related to the litigation settlement discussed in note 17 to our consolidated financial statements ; higher net cash used for relative changes in receivables , inventories , prepaid expenses , payables and accrued liabilities in 2020 of $ 14.8 primarily due to the reclassification of $ 15.0 million from accrued insurance recovery receivable to noncurrent restricted cash in 2019 ; lower income from operations from compx in 2020 of $ 5.9 million ; lower cash received for insurance recoveries in 2020 of $ 5.3 million ; lower cash paid for environmental remediation and related costs in 2020 of $ 2.0 million related to settlement of an environmental site in 2019 ; and a $ 2.8 million decrease in interest received in 2020 due to lower average interest rates and to a lesser extent a lower average affiliate receivable balance , partially offset by the relative timing of interest received .
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however , the drought conditions encountered during the growing season resulted in significantly decreased corn yields . for this reason , the drought had an unfavorable impact on space income for the grain business for the fourth quarter of 2012 and will likely impact space income into the first half of 2013 as well . looking ahead , planted corn acreage is anticipated to be as high as 100 million acres which should benefit our grain and other agricultural businesses . 21 ethanol group our ethanol business holds investments in four ethanol production facilities organized as separate limited liability companies , three of which are accounted for under the equity method ( the `` unconsolidated ethanol llcs `` ) and one that is consolidated ( `` the andersons denison ethanol llc `` or `` tade `` ) . the business purchases and sells ethanol , offers facility operations , risk management , and ethanol , corn oil and distillers dried grains ( “ ddg ” ) marketing to the ethanol plants in which it invests in and operates , as well as third parties . on may 1 , 2012 , the company and its subsidiary , tade completed the purchase of certain assets of an ethanol production facility in denison , iowa for a purchase price of $ 77.4 million . the company holds a majority interest of 85 % . previously owned by amaizing energy denison llc and amaizing energy holding company , llc , the operations consist of a 55 million gallon capacity ethanol facility with an adjacent 2.7 million bushel grain terminal , with direct access to two class 1 railroads in iowa . ethanol volumes shipped for the year ended december 31 , 2012 and 2011 were as follows : replace_table_token_8_th the ethanol llcs incurred operating losses for the year as a result of poor margins resulting from weak gasoline demand , an oversupply of ethanol and high corn costs caused by the 2012 drought . looking ahead , we anticipate the first three quarters of 2013 being tough for the ethanol group due to regional corn shortages . although the market is not indicating positive margins until the latter half of 2013 , there has been a recent improvement in margins . in addition , a record corn planting in the spring should have positive benefits for our ethanol group in the last three to four months of the year . of course , this is dependent on numerous external factors , such as favorable weather during the growing season . plant nutrient group our plant nutrient group is a leading manufacturer , distributor and retailer of agricultural and related plant nutrients and pelleted lime and gypsum products in the u.s. corn belt , florida and puerto rico . the plant nutrient group provides warehousing , packaging and manufacturing services to basic manufacturers and other distributors . the business also manufactures and distributes a variety of industrial products throughout the u.s. and puerto rico including nitrogen reagents for air pollution control systems used in coal-fired power plants , water treatment products , and de-icers and anti-icers for airport runways , roadways , and other commercial applications . the major nutrient products sold by the business principally contain nitrogen , phosphate , potassium and sulfur . the company continues to identify opportunities to strategically grow the plant nutrient business . on january 31 , 2012 , the company purchased 100 % of the stock of new eezy gro , inc. ( “ neg ” ) for a purchase price of $ 16.8 million . new eezy gro is a manufacturer and wholesale marketer of specialty agricultural nutrients and industrial products . storage capacity at our wholesale nutrient and farm center facilities was approximately 470,000 tons for dry nutrients and approximately 400,000 tons for liquid nutrients at december 31 , 2012. fertilizer tons shipped ( including sales and service tons ) for the years ended december 31 , 2012 and 2011 were 2.1 million tons and 1.8 million tons , respectively . the group had a strong fourth quarter due to the dry and warm fall weather which was ideal for fall nutrient application . although margins were not as strong as in the prior year , volume was higher . looking ahead , the reductions in 2012 crop volume and quality may cause continued rises in grain prices into 2013 and corn acres planted in 2013 are anticipated to be up to 100 million acres , which should support good nutrient demand moving into the next crop cycle . 22 rail group our rail business buys , sells , leases , rebuilds and repairs various types of used railcars and rail equipment . the business also provides fleet management services to fleet owners . rail has a diversified fleet of car types ( boxcars , gondolas , covered and open top hoppers , tank cars and pressure differential cars ) and locomotives . railcars and locomotives under management ( owned , leased or managed for financial institutions in non-recourse arrangements ) at december 31 , 2012 were 23,278 compared to 22,675 at december 31 , 2011. the average utilization rate ( railcars and locomotives under management that are in lease service , exclusive of railcars managed for third party investors ) is 84.6 % for the year ended december 31 , 2012 which is consistent with prior year . story_separator_special_tag other income was higher in 2010 primarily due to settlements received from customers for railcars returned at the end of a lease that were not in the required operating condition , as well as gains from the sale of certain assets . 29 turf & specialty group replace_table_token_21_th operating results for the turf & specialty group decreased $ 1.4 million from its 2010 results . sales increased $ 6.2 million . sales in the lawn fertilizer business increased $ 5.2 million due to a 5 % increase in the average price per ton sold . sales in the cob business increased $ 1.0 million as the average price per ton sold was up nearly 7 % . cost of sales increased $ 6.9 million from prior year due to higher raw material costs . gross profit decreased $ 0.7 million primarily due to a 7.8 % increase in the average cost per ton due to higher raw material costs . operating expenses increased $ 0.5 million over the prior year due to a variety of variable expenses . there were no significant fluctuations in interest expense or other income . retail group replace_table_token_22_th operating results for the retail group improved $ 1.0 million over its 2010 results . sales increased $ 7.0 million over 2010. while the average sale per customer increased by 6.5 % , customer counts decreased by almost 2 % . cost of sales increased $ 4.3 million and gross profit increased $ 2.7 million due to the increased sales as well as a slight increase in gross margin percentage . operating expenses for retail increased $ 1.9 million mainly due to higher labor , benefits and performance incentives due to overall company performance . there were no significant changes in interest expense or other income . other replace_table_token_23_th 30 the corporate operating loss ( costs not allocated back to the business units ) increased $ 4.5 million over 2010 and relates primarily to an increase in performance incentives due to favorable operating performance and an increase in charitable contributions . as a result of the operating performances noted above , income attributable to the andersons , inc. of $ 95.1 million for 2011 was 47 % higher than the income attributable to the andersons , inc. of $ 64.7 million in 2010. income tax expense of $ 51.1 million was provided at 34.5 % . in 2010 , income tax expense of $ 39.3 million was provided at 37.7 % . the higher effective tax rate for 2010 was due primarily to the impact of federal legislation on medicare part d. the 2011 effective tax rate also benefited from the permanent tax deduction related to domestic production activities . liquidity and capital resources working capital at december 31 , 2012 , the company had working capital of $ 304.3 million , a decrease of $ 8.6 million from the prior year . this decrease was attributable to changes in the following components of current assets and current liabilities : replace_table_token_24_th in comparison to the prior year , accounts receivable increased largely due to an increase in grain trade receivables , which fluctuate with the timing of sales along with variations in the prices of commodities which are consistent with the increase in sales and merchandising revenues for 2012. while grain inventory levels are relatively flat year over year due to the 2012 drought , commodity prices were higher during the year compared to 2011 and caused an overall increase for our grain business . ethanol inventories were significantly higher due to the acquisition of tade in the second quarter of 2012. these increases were partially offset by a decrease in inventories of the plant nutrient businesses caused by lower levels of inventory and a decrease in the average cost . restricted cash decreased as a result of reimbursement of spending related to an industrial development revenue bond . see the discussion below on sources and uses of cash for an understanding of the change in cash from prior year . commodity derivatives have also increased due to a rise in grain prices . other current assets have increased primarily due to an increase in railcars available for sale and higher prepaid income tax . current liabilities increased primarily as a result of an increase in grain and other accounts payable . the increase in grain payables is partly attributed to higher hold pay for corn ( grain we have purchased but not yet paid for ) , but this account also tends to fluctuate with the timing of grain receipts along with variations in the prices of grain . the increase in other accounts payable is consistent with the increase in cost of sales and merchandising revenues . customer prepayments and deferred revenues 31 increased primarily as a result of the movement of a liability to cargill for the marketing agreement due to be settled in 2013. commodity derivative liabilities also increased due to rising commodity prices . these increases were partially offset by lower borrowings on our short-term line of credit and a decrease in current maturities of long-term debt ( see note 10 for more information ) . story_separator_special_tag style= `` text-decoration : underline ; color : # 0000ff ; font-size:8pt ; `` > certain of our long-term borrowings include covenants that , among other things , impose minimum levels of equity and limitations on additional debt . we are in compliance with all such covenants as of december 31 , 2012. in addition , certain of our long-term borrowings are collateralized by first mortgages on various facilities or are collateralized by railcar assets . because the company is a significant consumer of short-term debt in peak seasons and the majority of this is variable rate debt , increases in interest rates could have a significant impact on the profitability of the company . in addition , periods of high grain prices and / or unfavorable market conditions could require the company to make
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | sources and uses of cash operating activities and liquidity our operating activities provided cash of $ 328.5 million in 2012 compared to cash provided by operations of $ 290.3 million in 2011. the significant amount of operating cash flows in 2012 relates primarily to the changes in working capital ( before short-term borrowings ) discussed above along with strong earnings . there was also a $ 31.7 million change in cash distributions in excess of income of unconsolidated affiliates due to current year losses in our ethanol affiliates . in 2012 , the company paid income taxes of $ 36.3 million compared to $ 48.9 million in 2011. the company makes quarterly estimated tax payments based on year to date annualized taxable income . the decrease in income taxes paid in 2012 from 2011 is primarily due to the decrease in pre-tax book income . investing activities investing activities used $ 290.6 million compared to $ 86 million used in 2011. there have been significant additions to property , plant and equipment in 2012 primarily related to business acquisitions , construction of a grain storage and load-out facility and the phased implementation of an enterprise resource planning system . in the third quarter , our grain group completed construction of a grain load-out facility in anselmo , nebraska . correspondingly , restrictions related to a substantial majority of cash received related to industrial revenue bonds for the project were released .
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collectively , the alphatec executive leadership team has over 150 years of combined spine-experience . we have also reconstituted our board of directors since late 2016 , adding significant spine industry and capital markets expertise . recent developments on march 8 , 2018 , we announced the acquisition of safeop surgical , inc. , or safeop . safeop was a privately-held provider of neuromonitoring technology designed to enable effective intra-operative nerve health assessment . with the full integration of safeop 's technology , we expect to be able to introduce an unprecedented level of neuromonitoring and intraoperative nerve safety to the spine market in early 2019. safeop 's patented technology has been designed to enable both nerve avoidance and nerve health assessment to prevent the risk of nerve injury that is widely associated with direct lateral spine fusion surgery . on march 8 , 2018 , we completed a $ 39.7 million first close of a $ 45.2 million private placement of our securities to certain institutional and accredited investors , including certain directors and executive officers of the company . the second close of the private placement is expected to occur within five business days . the private placement was led by l-5 healthcare partners , an institutional investor , and provides for the sale by the company of approximately 14.3 shares of newly created series b convertible preferred stock , which are automatically convertible into approximately 14.3 million shares of common stock ( representing a purchase price of $ 3.15 per common share ) , upon approval by alphatec 's stockholders , as required in accordance with the nasdaq global select market rules . purchasers also received warrants to purchase up to approximately 12.2 million shares of common stock at an exercise price of $ 3.50 per share . in addition , the company entered into an agreement with armistice capital , an existing investor , to exercise 2.4 million warrants to purchase common shares for gross proceeds of $ 4.8 million in exchange for warrants to purchase up to 1,800,000 shares of common stock at an exercise price of $ 3.50 per share . the new warrants will be exercisable following approval by alphatec stockholders , and will expire 5 years from the date of such stockholder approval . certain directors and 40 executive officers of alphatec agreed to purchase an aggregate of $ 6.4 mil lion of shares of series b convertible preferred stock , which shares are convertible into approximately 2.1 million shares of common stock ( representing a purchase price of $ 3.15 per common share ) , and warrants to purchase up to 1.7 million shares of commo n stock at a price of $ 3.50 per share . we paid $ 15 million of the net proceeds from the private placement fund the cash purchase price for safeop , and will use the remaining net proceeds for working capital and general corporate purposes , including the in tegration of next-generation neuromonitoring solutions , advancement of our product pipeline , and investment in sales and marketing to expand our market presence . sale of international business on september 1 , 2016 , we completed the sale of our international distribution operations and agreements , including our wholly-owned subsidiaries in japan , brazil , australia , china and singapore and substantially all of the assets of our other sales operations in the united kingdom and italy , or collectively the international business , to an affiliate of globus ( “ globus transaction ” ) . following the closing of the globus transaction , we now operate in the u.s. market only and are prohibited from marketing and selling our products in foreign markets pursuant to the terms and conditions , and for the time periods , set forth in the definitive documents related to the globus transaction . at the closing of the globus transaction on september 1 , 2016 , globus paid us $ 80 million in cash . on september 1 , 2016 , we used approximately $ 66 million of the consideration received to ( i ) repay in full all amounts outstanding and due under the deerfield facility agreement , and ( ii ) repay certain of our outstanding indebtedness under our amended credit facility , in each case , including debt-related costs . also on september 1 , 2016 , we entered into the credit , security and guaranty agreement with globus , or the globus facility agreement , pursuant to which globus has agreed to loan us up to $ 30 million , subject to the terms and conditions set forth in the globus facility agreement . on august 24 , 2016 , we filed a certificate of amendment to the company 's certificate of incorporation with the secretary of state of the state of delaware to effectuate a 1-for-12 reverse stock split of our issued and outstanding common stock . the share and per share amounts in the discussion below gives retrospective effect to the 1-for-12 reverse stock split for all periods presented . revenue and expense components the following is a description of the primary components of our revenues and expenses : revenues . we derive our revenues primarily from the sale of spinal surgery implants used in the treatment of spine disorders . spinal implant products include pedicle screws and complementary implants , interbody devices , plates , and tissue-based materials . our revenues are generated by our direct sales force and independent distributors . our products are requested directly by surgeons and shipped and billed to hospitals and surgical centers . currently , most of our business is conducted with customers within markets in which we have experience and with payment terms that are customary to our business . we may defer revenues until the time of collection if circumstances related to payment terms , regional market risk or customer history indicate that collectability is not reasonably assured . cost of revenues . story_separator_special_tag operating losses and negative cash flows may continue for at least the next year as we continue to incur costs related to the execution of our operating plan and introduction of new products . on march 8 , 2018 , we completed a $ 39.7 million first close of a $ 45.2 million private placement of our securities to certain institutional and accredited investors , including certain directors and executive officers of the company . the second close of the private placement is expected to occur within five business days . the private placement was led by l-5 healthcare partners , an institutional investor , and provides for the sale by the company of approximately 14.3 shares of newly created series b convertible preferred stock , which are automatically convertible into approximately 14.3 million shares of common stock ( representing a purchase price of $ 3.15 per common share ) , upon approval by alphatec 's stockholders , as required in accordance with the nasdaq global select market rules . purchasers also received warrants to purchase up to approximately 12.2 million shares of common stock at an exercise price of $ 3.50 per share . in addition , the company entered into an agreement with armistice capital , an existing investor , to exercise 2.4 million warrants to purchase common shares for gross proceeds of $ 4.8 million in exchange for warrants to purchase up to 1,800,000 shares of common stock at an exercise price of $ 3.50 per share . the new warrants will be exercisable following approval by alphatec stockholders , and will expire 5 years from the date of such stockholder approval . certain directors and 45 executive officers of alphatec agreed to p urchase an aggregate of $ 6.4 million of shares of series b convertible preferred stock , which shares are convertible into approximately 2.1 million shares of common stock ( representing a purchase price of $ 3.15 per common share ) , and warrants to purchase up to 1.7 million shares of common stock at a price of $ 3.50 per share . we paid $ 15 million of the net proceeds from the private placement fund the cash purchase price for safeop , and will use the remaining net proceeds for working capital and general cor porate purposes , including the integration of next-generation neuromonitoring solutions , advancement of our product pipeline , and investment in sales and marketing to expand our market presence . on october 2 , 2017 , we entered into securities purchase agreements ( collectively , the “ purchase agreements ” ) with accredited investors patrick miles and quentin blackford ( collectively , the “ purchasers ” ) , pursuant to which messrs. miles and blackford have agreed to purchase from the company , collectively , no less than 1,549,116 and as many as 1,769,912 shares of its common stock at a purchase price of $ 2.26 per share . in december 2017 , the company issued 1,769,912 shares for gross proceeds of $ 4 million . in connection with the private placement in march 2017 where we issued series a convertible preferred stock and common stock , we also issued warrants to purchase 9.4 million shares of our common stock at an exercise price of $ 2.00 per share and warrants to purchase 0.5 million shares of our common stock at an exercise price of $ 2.50 per share , for aggregate proceeds , if exercised , of approximately $ 20.0 million . during 2017 we received proceeds of approximately $ 3.3 million in connection with exercise of approximately 1.7 million warrants . we may seek additional funds from public and private equity or debt financings , borrowings under new or existing debt facilities or other sources to fund our projected operating requirements . however , there is no guarantee that we will be able to obtain further financing , or do so on reasonable terms . if we are unable to raise additional funds on a timely basis , or at all , we would be materially adversely affected . a substantial portion of our available cash funds is held in business accounts with reputable financial institutions . at times , however , our deposits , may exceed federally insured limits and thus we may face losses in the event of insolvency of any of the financial institutions where our funds are deposited . we did not hold any marketable securities as of december 31 , 2017. story_separator_special_tag roman ; font-size:10pt ; font-weight : normal ; text-transform : none ; font-variant : normal ; `` > investing activities we used cash of $ 6.5 million in investing activities for the year ended december 31 , 2017 , primarily for the purchase of surgical instruments of $ 7.6 million , net of $ 1.1 million of cash received from sale of instruments . financing activities financing activities provided net cash of $ 17.8 million for the year ended december 31 , 2017 , primarily attributable to our 2017 private placement , which provided net cash proceeds of $ 17.1 million , and issuance of common stock to certain board of directors for $ 3.7 million , exercise of warrants issued in our 2017 private placement of $ 3.3 million and issuance of common stock under the employee stock purchase plan of $ 0.2 million . under the midcap amended credit facility , we made net payments of $ 2.2 million during the year ended december 31 , 2017. we also made principal payments on notes payable and capital leases totaling $ 4.4 million in the year ended december 31 , 2017 . 47 contractual obligations and commercial commitments total contractual obligations and commercial commitments as of december 31 , 2017 are summarized in the following table ( in thousands ) : replace_table_token_5_th ( 1 ) based on our closing stock price as of december 30 , 2017 , the last trading date of the fiscal year , of
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | amended credit facility and other debt on august 30 , 2013 , we entered into the amended credit facility , which amended and restated the prior credit facility that we had with midcap . on september 1 , 2016 , we entered into a fifth amendment to the midcap amended facility agreement , or the midcap fifth amendment , that : ( a ) permitted ( i ) the globus transaction , ( ii ) the release of alphatec international llc and alphatec pacific , inc. as credit parties , ( iii ) the payment in full of all obligations to deerfield under the facility agreement between us and deerfield , dated as of march 17 , 2014 , as amended to date , or the deerfield facility agreement , and ( iv ) the incurrence of debt under the globus facility agreement and the granting of liens in favor of globus , ( b ) reduced the revolving credit commitment to $ 22.5 million and the term loan commitment to $ 5 million , ( c ) revised the existing financial covenant package , and ( d ) extended the commitment expiry date from december 31 , 2016 to december 31 , 2019. in connection with the prepayment of the term loan under the amended credit facility , we incurred a prepayment fee of $ 0.6 million payable to midcap . on march 30 , 2017 , we entered into a sixth amendment to the amended credit facility to extend the date that the financial covenants of the amended credit facility are effective from april 2017 to april 2018 , and on march 8 , 2018 , we entered into a seventh amendment to the amended credit facility to extend the date that the financial covenants of the amended credit facility are effective from april 2017 to april 2019 , and established a minimum liquidity covenant of $ 5.0 million through march 31 , 2019. the term loan interest rate is priced at the london interbank offered rate , or libor , plus 8.0 % , subject to a 9.5 % floor , and the revolving line of credit interest rate remains priced at libor plus 6.0 % , reset monthly .
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· labor costs – labor costs in 2017 increased slightly both in dollar amount and as a percentage of sales , in spite of decreased sales in comparison to 2016. approximately one-third of bel 's total sales are generated from labor intensive magnetic products , which are primarily manufactured in the prc . wage rates in the prc , which are mandated by the government , now have higher minimum wage and overtime requirements . effective february 1 , 2018 , the prc issued an increase to the minimum wage in a region where one of bel 's factories is located . we anticipate this increase in minimum wage to result in higher labor costs of approximately $ 1.0 million - $ 1.4 million per year at this facility going forward . this and any future increases in minimum wage rates will have an unfavorable impact on bel 's profit margins . 19 return to index · restructuring – the company continues to implement restructuring programs to increase operational efficiencies . the company incurred $ 0.3 million of restructuring charges during 2017 , primarily related to the closure of its manufacturing facility in shanghai , prc and transition of those operations to other existing bel facilities which began in late 2016. additional restructuring efforts are expected to continue throughout 2018 as we realign our r & d resources dedicated to our power solutions and protection group . we are also in the process of transitioning our bcm product line from a third party factory in malaysia to an existing bel facility in the prc . we anticipate completing these two initiatives by the end of the third quarter of 2018 , with minimal restructuring costs incurred . annual savings of approximately $ 1.4 million are expected from these initiatives once fully implemented ( primarily within cost of sales ) . · impact of foreign currency – during 2017 , the company incurred foreign exchange losses of $ 2.8 million . since we are a u.s. domiciled company , we translate our foreign currency-denominated financial results into u.s. dollars . due to the changes in the value of foreign currencies relative to the u.s. dollar , translating our financial results and the revaluation of certain intercompany as well as third-party transactions to and from foreign currencies to u.s. dollars may result in a favorable or unfavorable impact to our consolidated statements of operations and cash flows . the company monitors changes in foreign currencies and may implement pricing actions to help mitigate the impact that changes in foreign currencies may have on its consolidated operating results . · effective tax rate – the company 's effective tax rate will fluctuate based on the geographic segment in which our pretax profits are earned . of the geographic segments in which we operate , the u.s. has the highest tax rates ; europe 's tax rates are generally lower than u.s. tax rates ; and asia has the lowest tax rates of the company 's three geographical segments . see note 9 , `` income taxes `` and the `` tax reform `` discussion below . · refinancing of credit facility - we successfully refinanced our credit facility during the fourth quarter of 2017 with several changes that will benefit the company in the near and long term . the new agreement provides more favorable pricing from an interest rate perspective ; it reduces mandatory payments over the next four years , giving us flexibility in how we choose to utilize our u.s. cash ; and it includes additional borrowing capacity under the revolver which can be used for future acquisitions . our top priority for 2018 is growing the company 's top line . overall , the company 's backlog increased to $ 146.5 million at december 31 , 2017 , which represents a 29 % increase from its level at december 31 , 2016. while we are unable to predict the effect that this increase will ultimately have on 2018 sales , it is a good barometer that we are well positioned for organic growth in future periods . in addition , our new credit facility , coupled with availability of foreign earnings provided for with the transition tax , will enable future acquisitions to be a key component of our growth strategy should appropriate opportunities arise . the preceding discussions represent forward-looking statements . see `` cautionary notice regarding forward-looking statements . `` summary by operating segment net sales to external customers by reportable operating segment for the years ended december 31 , 2017 , 2016 and 2015 were as follows ( dollars in thousands ) : replace_table_token_5_th net sales and income ( loss ) from operations by operating segment for the years ended december 31 , 2017 , 2016 and 2015 were as set forth in the following table ( dollars in thousands ) . segment net sales are attributed to individual segments based on the geographic source of the billing for such customer sales . 20 return to index replace_table_token_6_th the decline in north america sales in 2017 was primarily attributable to a $ 13.7 million reduction in sales of power solutions and protection products , of which $ 10.1 million related to lower sales from the previously-divested nps product line . north america segment sales were also impacted by a decline in sales of our modular plugs and cable assemblies within our stewart connector business where two major customers merged and in-sourced much of these products . this resulted in lower sales of $ 5.1 million during 2017 compared to 2016. these declines were partially offset by higher sales of our connectivity solutions products , driven by increased demand from our u.s. military customers and stronger sales through our distribution channels . story_separator_special_tag fluctuations of the u.s. dollar against other major currencies have not significantly affected our foreign operations as most sales continue to be denominated in u.s. dollars or currencies directly or indirectly linked to the u.s. dollar . most significant expenses , including raw materials , labor and manufacturing expenses , are incurred primarily in u.s. dollars or the chinese renminbi , and to a lesser extent in british pounds and mexican pesos . the chinese renminbi depreciated by approximately 2 % in 2017 as compared to 2016 and the mexican peso depreciated by 1 % in 2017 as compared to 2016 . to the extent the renminbi or peso appreciate in future periods , it could result in the company 's incurring higher costs for most expenses incurred in the prc and mexico . the company 's european entities , whose functional currencies are euros , british pounds and czech korunas , enter into transactions which include sales that are denominated principally in euros , british pounds and various other european currencies , and purchases that are denominated principally in u.s. dollars and british pounds . such transactions , as well as those related to our multi-currency intercompany payable and receivable transactions , resulted in net realized and unrealized currency exchange ( losses ) gains of ( $ 2.8 ) million , $ 3.1 million and $ 5.1 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively , which were included in sg & a expenses on the consolidated statements of operations . the currency exchange losses recorded in 2017 were primarily related to a u.s. denominated intercompany receivable balance on our swiss entity 's books . the currency exchange gains recorded in 2016 were primarily due to the favorable impact of the depreciation of the chinese renminbi and euro against the u.s. dollar . the currency exchange gains recorded in 2015 were primarily due to the favorable impact of the depreciation of the euro against the u.s. dollar on a $ 34 million multi-currency intercompany loan . this loan was settled by the end of 2015. translation of subsidiaries ' foreign currency financial statements into u.s. dollars resulted in translation adjustments , net of taxes , of $ 12.4 million , ( $ 9.7 ) million and ( $ 10.0 ) million for the years ended december 31 , 2017 , 2016 and 2015 , respectively , which are included in accumulated other comprehensive income ( loss ) on the consolidated balance sheets . liquidity and capital resources our primary sources of cash are the collection of trade receivables generated from the sales of our products and services to our customers and amounts available under our existing lines of credit , including our credit facility . our primary uses of cash are payments for operating expenses , investments in working capital , capital expenditures , interest , taxes , dividends , debt obligations and other long-term liabilities . we believe that our current liquidity position and future cash flows from operations will enable us to fund our operations , including all of the items mentioned above in the next twelve months . at december 31 , 2017 and 2016 , $ 50.5 million and $ 61.1 million , respectively ( or 73 % and 83 % , respectively ) , of cash and cash equivalents was held by foreign subsidiaries of the company . management is currently analyzing our global working capital and cash requirements and the potential tax liabilities attributable to repatriation , and we have yet to determine whether we plan to repatriate these funds outside the u.s. to fund the company 's u.s. operations in the future . in the event these funds were needed for bel 's u.s. operations , the company would be required to accrue and pay u.s. state taxes and any applicable foreign withholding taxes to repatriate these funds . see `` income taxes `` above for further details . in june 2014 , the company entered into a senior credit and security agreement , which was subsequently amended in march 2016 , and further amended and refinanced in december 2017 ( see note 10 , `` debt , `` for additional details ) . the credit and security agreement contains customary representations and warranties , covenants and events of default and financial covenants that measure ( i ) the ratio of the company 's total funded indebtedness , on a consolidated basis , to the amount of the company 's consolidated ebitda , as defined ( `` leverage ratio `` ) , and ( ii ) the ratio of the amount of the company 's consolidated ebitda to the company 's consolidated fixed charges ( `` fixed charge coverage ratio `` ) . if an event of default occurs , the lenders under the credit and security agreement would be entitled to take various actions , including the acceleration of amounts due thereunder and all actions permitted to be taken by a secured creditor . at december 31 , 2017 , the company was in compliance with its debt covenants , including its most restrictive covenant , the leverage ratio . the unused credit available under the credit facility at december 31 , 2017 was $ 75.0 million , of which we had the ability to borrow $ 34.1 million without violating our leverage ratio covenant based on the company 's existing consolidated ebitda . at december 31 , 2017 , the company had $ 125.0 million outstanding under its credit agreement . scheduled principal payments of the long-term debt outstanding are included in `` contractual obligations `` below and in note 10 , `` debt . `` for information regarding further commitments under the company 's operating leases , see note 16 , `` commitments and contingencies . `` we are currently engaged in a multi-year process of conforming the majority of our operations onto one global erp . the erp is designed to
| Write a concise summary of the following text delimited by triple quote marks. Return your response as a narrative which covers the key points highlighting the location, dates, entity names and account holder and financial information (when available) in chronological order of the text. | cash flows during the year ended december 31 , 2017 , the company 's cash and cash equivalents decreased by $ 4.1 million . this decline was primarily due to repayments of long-term debt of $ 18.8 million , the purchase of property , plant and equipment of $ 6.4 million , $ 3.3 million for payments of dividends and payments of $ 2.0 million for deferred financing costs related to the refinancing of our credit facility during 2017. these cash outflows were partially offset by cash provided by operations of $ 24.1 million . cash provided by operations decreased by $ 14.5 million in 2017 as compared to 2016 , primarily due to higher year-end inventory levels and accounts receivable balances in 2017. during the year ended december 31 , 2016 , the company 's cash and cash equivalents decreased by $ 11.6 million . this decrease was primarily due to repayments of long-term debt of $ 43.4 million , the purchase of property , plant and equipment of $ 8.2 million and $ 3.2 million for payments of dividends . these cash outflows were partially offset by net cash provided by operations of $ 38.6 million and cash proceeds received from the sale of properties in hong kong and san diego of $ 5.8 million . cash provided by operating activities decreased by $ 27.2 million in 2016 as compared to 2015 , primarily due to lower earnings on the reduced sales volume in 2016 and an increase in year-end inventory levels in 2016. during the year ended december 31 , 2015 , the company 's cash and cash equivalents increased by $ 7.9 million . this resulted primarily from $ 65.8 million of cash provided by operating activities , including the impact of the changes in accounts receivable and inventories described below , proceeds of $ 9.0 million received from the nps sale and related transactions and $ 4.2 million received for an acquisition-related settlement payment during 2015.
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