all costs that are incurred at the bakeries are included in cost of goods sold . we do not allocate any corporate functions into cost of goods sold . 38 our cost of ingredients consists principally of flour , sweeteners , edible oils and cocoa , which are subject to substantial price fluctuations , as is the cost of paper , corrugate , films and plastics used to package our products . the prices for raw materials are influenced by a number of factors , including the weather , crop production , transportation and processing costs , government regulation and policies and worldwide market supply and demand . we also rely on fuel products , such as natural gas , diesel , propane and electricity , to operate our bakeries and produce our products . fluctuations in the prices of the raw materials or fuel products used in the production , packaging or transportation of our products affect the cost of products sold and our product pricing strategy . we utilize forward buying strategies through short-term and long-term advance purchase contracts to lock in prices for certain high-volume raw materials , packaged components and fuel inputs . through these initiatives , we believe we are able to obtain competitive pricing . advertising and marketing our advertising and marketing expenses primarily relate to our advertising campaigns , which include social media , radio , billboard , print , online advertising , local promotional events and monthly agency fees . we also invest in wire and corrugate displays delivered to customers to display our products off shelf , field marketing and merchandising to reset and check the store inventory on a regular basis and marketing employment costs . selling expense selling expenses primarily include sales management , employment , travel , and related expenses , as well as broker fees . we utilize brokers for sales support , including merchandising and order processing . general and administrative general and administrative expenses primarily include employee and related expenses for the accounting , planning , customer service , legal , human resources , corporate operations , research and development , purchasing , logistics and executive functions . also included are professional services relating to our corporate audit and tax fees , legal fees , outsourced fees relating to information technology , transportation planning , and corporate site and insurance costs . the majority of our research and development spend is dedicated to enhancing and expanding our product lines in response to changing consumer preferences and trends and continuing to enhance the taste of our products . in addition , our research and development organization provides technical support to ensure that our core products are consistently produced in accordance with our high quality standards and specifications . finally , this department is charged with developing processes to reduce our costs without adversely affecting the quality of our products . related party expenses for periods prior to the business combination , related party expenses consisted of the normal annual cash payments associated with our employment arrangements with mr. metropoulos as chief executive officer and or executive chairman . for the successor period november 4 , 2016 through december 31 , 2016 , related party expenses consisted of a grant of stock awarded to mr. metropoulos under his new employment arrangements . following the consummation of the business combination , the cash expenses associated with mr. metropoulos 's employment arrangements are estimated to be approximately $ 0.3 million annually . non-controlling interest for the successor period from november 4 , 2016 through december 31 , 2016 , hostess brands , inc. consolidated the financial position and results of operations of hostess holdings . mr. metropoulos and the metropoulos entities hold their equity investment in us primarily through class b limited partnership units in the company 's subsidiary , hostess holdings ( “ class b units ” ) and an equal number of shares of the company 's class b common stock ( “ class b stock ” ) . our class b stock has voting , but no economic rights , while hostess holdings ' class b units have economic , but no voting rights . each class b unit , together with a share of class b stock held by the metropoulos entities , is exchangeable for a share of the company 's class a common stock ( or at the option of the company , the cash equivalent thereof ) . the company holds 100 % of the general partnership interest in hostess holdings and a majority of the limited partnership interests , and consolidates hostess holdings in the company 's consolidated financial statements . the interest of the metropoulos entities in hostess holdings ' class b units is reflected in our consolidated financial statements as a noncontrolling interest . 39 for the predecessor periods , hostess holdings consolidated the financial position and results of operations of new hostess holdco llc . the portion of new hostess holdco , llc not owned by hostess holdings was recognized as a noncontrolling interest in the consolidated financial statements . the non-controlling interest presented in the accompanying consolidated balance sheet represents the amount of cash that would be payable to the non-controlling interest holders if the company were liquidated at book value as of the balance sheet date . the difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period , is the share of the earnings or losses allocated to non-controlling interest for the period . factors impacting recent results long-term debt refinancing on november 18 , 2016 , we refinanced our first and second lien term loans ( the “ former first and second lien term loans ” ) into one new first lien term loan in the aggregate principal amount of $ 998.8 million and with a maturity date of august 3 , 2022 ( the “ new first lien term loan ” ) . story_separator_special_tag 45 unaudited pro forma combined statement of operations for the year ended december 31 , 2016 historical ( i ) ( successor ) ( predecessor ) pro forma combined ( unaudited ) ( in thousands except per share data ) from november 4 , 2016 to december 31 , 2016 from january 1 , 2016 to november 3 , 2016 pro forma adjustments year ended december 31 , 2016 net revenue $ 111,998 $ 615,588 $ — $ 727,586 cost of goods sold 73,284 346,864 ( 8,541 ) ii 411,607 special employee incentive compensation — 2,195 ( 2,195 ) iii — gross profit 38,714 266,529 10,736 315,979 operating costs and expenses : advertising and marketing 5,245 30,626 — 35,871 selling expenses 5,033 25,730 — 30,763 general and administrative 7,322 38,391 ( 3,902 ) iv 41,811 special employee incentive compensation — 2,503 ( 2,503 ) iii — amortization of customer relationships 3,922 1,185 20,050 v 25,157 impairment of property and equipment — 7,300 — 7,300 loss on sale/abandonment of property and equipment and bakery shutdown costs — 2,551 — 2,551 business combination transaction costs — 31,832 ( 31,257 ) vi 575 related party expenses 26,799 3,539 ( 26,747 ) vii 3,591 total operating costs and expenses 48,321 143,657 44,359 147,619 operating income ( loss ) ( 9,607 ) 122,872 55,095 168,360 other ( income ) expense : interest expense , net 6,649 60,384 ( 15,592 ) viii 51,441 gain on debt extinguishment ( 763 ) — — ( 763 ) other ( income ) expense 754 1,624 — 2,378 total other ( income ) expense 6,640 62,008 ( 15,592 ) 53,056 pretax net income ( loss ) ( 16,247 ) 60,864 70,687 115,304 income tax expense ( 7,762 ) 439 40,185 ix 32,862 net income ( loss ) $ ( 8,485 ) $ 60,425 $ 30,502 $ 82,442 less : net income ( loss ) attributable to the non-controlling interest ( 4,081 ) 3,214 29,565 x 28,698 net income ( loss ) attributable to class a shareholders ( 4,404 ) 57,211 937 53,744 earnings ( loss ) per class a share : basic $ ( 0.05 ) $ 0.55 diluted $ ( 0.05 ) $ 0.54 weighted-average shares outstanding : basic 97,792 ( 180 ) xi 97,612 diluted 97,792 2,393 xii 100,185 46 i. the amounts in these columns represent the successor 's and predecessor 's historical results of operations for the periods reflected . ii . the adjustment reflects the incremental depreciation expense associated with the allocation of purchase price to property and equipment and is recorded in cost of goods sold . in addition , for cost of goods sold , approximately $ 8.9 million reflects the non-cash impact of the re-measurement of inventory at fair value as a result of the business combination . iii . for cost of goods sold , this adjustment represents special payments we made to certain employees at our bakery facilities of $ 2.2 million and for operating costs this adjustment represents special payments to corporate employees of $ 2.5 million as compensation for their efforts in connection with the business combination iv . represents compensation for management profits interest plan of approximately $ 3.9 million that was recognized as part of the business combination . see note 1 to the consolidated financial statements for additional information . v. represents additional amortization expense associated with the fair value recognized for customer relationship in connection with the business combination . vi . this adjustment consists primarily of legal and professional fees , and other costs associated with the business combination . vii . represents non-cash expenses incurred by successor for stock awarded to mr. metropoulos as required under his new employment arrangements . viii . represents the reduction in interest expense due to the repayment of a portion of hostess holdings debt as part of the business combination . ix . represents the effective income tax rate of 28.5 % for the successor , giving effect to the noncontrolling interest , and not giving effect to the adjustment made to the valuation allowance on the company 's historical deferred tax assets . x. represents the elimination of historical income attributable to the noncontrolling interest and attributes a portion of the pro forma income to the noncontrolling interest created in the business combination . income is allocated to the noncontrolling interest based on its pro rata share of the total equity of hostess holdings . xi . this adjustment annualized the basic weighted average number of class a shares outstanding . xii . this adjustment includes the dilutive impact of the outstanding warrants that are considered anti-dilutive on a historical basis . 47 results of operations—for the unaudited pro forma combined year ended december 31 , 2016 compared to the year ended december 31 , 2015 replace_table_token_8_th net revenue pro forma combined net revenue was $ 727.6 million for 2016 , an increase of $ 106.8 million , or 17.2 % , compared to net revenue of $ 620.8 million for 2015 , primarily due to new product launches in 2016 of $ 44.0 million and contribution of superior net revenue of $ 26.7 million from the date of its acquisition . new products in 2016 included deep fried twinkies ® , hostess sweet shop brownies , plus the relaunch of suzy qs ® snack cakes . 48 cost of goods sold cost of goods sold increased 15.6 % , or $ 55.6 million , to $ 411.6 million for the pro forma combined year ended december 31 , 2016 , compared to $ 356.0 million for the year ended december 31 , 2015 , primarily due to the increase in volume . as a percentage of net revenue , pro forma combined cost of goods sold was 56.6 % for the year ended december 31 , 2016 and cost of goods sold was 57.3 % for the year ended december 31 , 2015. this decrease is due primarily to higher ingredient costs for the

cash flows from investing activities cash flows provided by ( used in ) investing activities for the period november 4 , 2016 through december 31 , 2016 were $ ( 428.2 ) million ( successor ) and $ ( 76.6 ) million for the period january 1 , 2016 through november 3 , 2016 ( predecessor ) , and $ 17.9 million and $ ( 91.4 ) million ( predecessor ) for the years ended december 31 , 2015 , and 2014 , respectively . cash outflows from investing activities include purchases of property and equipment of $ ( 6.5 ) million for the period november 4 , 2016 through december 31 , 2016 ( successor ) and $ ( 28.6 ) million for the period january 1 , 2016 through november 3 , 2016 ( predecessor ) , and $ ( 25.1 ) million and $ ( 51.1 ) million for the years ended december 31 , 2015 , and 2014 , respectively . our property and equipment capital expenditures primarily consisted of strategic growth initiatives , maintenance and productivity improvements . we expect that our cash outflows for capital expenditures will be approximately $ 30.0 million to $ 40.0 million during 2017. we paid $ ( 49.7 ) million for the acquisition of superior , net of cash acquired , in the predecessor period january 1 , 2016 through november 3 , 2016. for the year ended december 31 , 2015 , we received proceeds from the sale of marketable securities of $ 43.0 million and used cash to partially fund member distributions .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash flows from investing activities cash flows provided by ( used in ) investing activities for the period november 4 , 2016 through december 31 , 2016 were $ ( 428.2 ) million ( successor ) and $ ( 76.6 ) million for the period january 1 , 2016 through november 3 , 2016 ( predecessor ) , and $ 17.9 million and $ ( 91.4 ) million ( predecessor ) for the years ended december 31 , 2015 , and 2014 , respectively . cash outflows from investing activities include purchases of property and equipment of $ ( 6.5 ) million for the period november 4 , 2016 through december 31 , 2016 ( successor ) and $ ( 28.6 ) million for the period january 1 , 2016 through november 3 , 2016 ( predecessor ) , and $ ( 25.1 ) million and $ ( 51.1 ) million for the years ended december 31 , 2015 , and 2014 , respectively . our property and equipment capital expenditures primarily consisted of strategic growth initiatives , maintenance and productivity improvements . we expect that our cash outflows for capital expenditures will be approximately $ 30.0 million to $ 40.0 million during 2017. we paid $ ( 49.7 ) million for the acquisition of superior , net of cash acquired , in the predecessor period january 1 , 2016 through november 3 , 2016. for the year ended december 31 , 2015 , we received proceeds from the sale of marketable securities of $ 43.0 million and used cash to partially fund member distributions .
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 Suspicious Activity Report : all costs that are incurred at the bakeries are included in cost of goods sold . we do not allocate any corporate functions into cost of goods sold . 38 our cost of ingredients consists principally of flour , sweeteners , edible oils and cocoa , which are subject to substantial price fluctuations , as is the cost of paper , corrugate , films and plastics used to package our products . the prices for raw materials are influenced by a number of factors , including the weather , crop production , transportation and processing costs , government regulation and policies and worldwide market supply and demand . we also rely on fuel products , such as natural gas , diesel , propane and electricity , to operate our bakeries and produce our products . fluctuations in the prices of the raw materials or fuel products used in the production , packaging or transportation of our products affect the cost of products sold and our product pricing strategy . we utilize forward buying strategies through short-term and long-term advance purchase contracts to lock in prices for certain high-volume raw materials , packaged components and fuel inputs . through these initiatives , we believe we are able to obtain competitive pricing . advertising and marketing our advertising and marketing expenses primarily relate to our advertising campaigns , which include social media , radio , billboard , print , online advertising , local promotional events and monthly agency fees . we also invest in wire and corrugate displays delivered to customers to display our products off shelf , field marketing and merchandising to reset and check the store inventory on a regular basis and marketing employment costs . selling expense selling expenses primarily include sales management , employment , travel , and related expenses , as well as broker fees . we utilize brokers for sales support , including merchandising and order processing . general and administrative general and administrative expenses primarily include employee and related expenses for the accounting , planning , customer service , legal , human resources , corporate operations , research and development , purchasing , logistics and executive functions . also included are professional services relating to our corporate audit and tax fees , legal fees , outsourced fees relating to information technology , transportation planning , and corporate site and insurance costs . the majority of our research and development spend is dedicated to enhancing and expanding our product lines in response to changing consumer preferences and trends and continuing to enhance the taste of our products . in addition , our research and development organization provides technical support to ensure that our core products are consistently produced in accordance with our high quality standards and specifications . finally , this department is charged with developing processes to reduce our costs without adversely affecting the quality of our products . related party expenses for periods prior to the business combination , related party expenses consisted of the normal annual cash payments associated with our employment arrangements with mr. metropoulos as chief executive officer and or executive chairman . for the successor period november 4 , 2016 through december 31 , 2016 , related party expenses consisted of a grant of stock awarded to mr. metropoulos under his new employment arrangements . following the consummation of the business combination , the cash expenses associated with mr. metropoulos 's employment arrangements are estimated to be approximately $ 0.3 million annually . non-controlling interest for the successor period from november 4 , 2016 through december 31 , 2016 , hostess brands , inc. consolidated the financial position and results of operations of hostess holdings . mr. metropoulos and the metropoulos entities hold their equity investment in us primarily through class b limited partnership units in the company 's subsidiary , hostess holdings ( “ class b units ” ) and an equal number of shares of the company 's class b common stock ( “ class b stock ” ) . our class b stock has voting , but no economic rights , while hostess holdings ' class b units have economic , but no voting rights . each class b unit , together with a share of class b stock held by the metropoulos entities , is exchangeable for a share of the company 's class a common stock ( or at the option of the company , the cash equivalent thereof ) . the company holds 100 % of the general partnership interest in hostess holdings and a majority of the limited partnership interests , and consolidates hostess holdings in the company 's consolidated financial statements . the interest of the metropoulos entities in hostess holdings ' class b units is reflected in our consolidated financial statements as a noncontrolling interest . 39 for the predecessor periods , hostess holdings consolidated the financial position and results of operations of new hostess holdco llc . the portion of new hostess holdco , llc not owned by hostess holdings was recognized as a noncontrolling interest in the consolidated financial statements . the non-controlling interest presented in the accompanying consolidated balance sheet represents the amount of cash that would be payable to the non-controlling interest holders if the company were liquidated at book value as of the balance sheet date . the difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period , is the share of the earnings or losses allocated to non-controlling interest for the period . factors impacting recent results long-term debt refinancing on november 18 , 2016 , we refinanced our first and second lien term loans ( the “ former first and second lien term loans ” ) into one new first lien term loan in the aggregate principal amount of $ 998.8 million and with a maturity date of august 3 , 2022 ( the “ new first lien term loan ” ) . story_separator_special_tag 45 unaudited pro forma combined statement of operations for the year ended december 31 , 2016 historical ( i ) ( successor ) ( predecessor ) pro forma combined ( unaudited ) ( in thousands except per share data ) from november 4 , 2016 to december 31 , 2016 from january 1 , 2016 to november 3 , 2016 pro forma adjustments year ended december 31 , 2016 net revenue $ 111,998 $ 615,588 $ — $ 727,586 cost of goods sold 73,284 346,864 ( 8,541 ) ii 411,607 special employee incentive compensation — 2,195 ( 2,195 ) iii — gross profit 38,714 266,529 10,736 315,979 operating costs and expenses : advertising and marketing 5,245 30,626 — 35,871 selling expenses 5,033 25,730 — 30,763 general and administrative 7,322 38,391 ( 3,902 ) iv 41,811 special employee incentive compensation — 2,503 ( 2,503 ) iii — amortization of customer relationships 3,922 1,185 20,050 v 25,157 impairment of property and equipment — 7,300 — 7,300 loss on sale/abandonment of property and equipment and bakery shutdown costs — 2,551 — 2,551 business combination transaction costs — 31,832 ( 31,257 ) vi 575 related party expenses 26,799 3,539 ( 26,747 ) vii 3,591 total operating costs and expenses 48,321 143,657 44,359 147,619 operating income ( loss ) ( 9,607 ) 122,872 55,095 168,360 other ( income ) expense : interest expense , net 6,649 60,384 ( 15,592 ) viii 51,441 gain on debt extinguishment ( 763 ) — — ( 763 ) other ( income ) expense 754 1,624 — 2,378 total other ( income ) expense 6,640 62,008 ( 15,592 ) 53,056 pretax net income ( loss ) ( 16,247 ) 60,864 70,687 115,304 income tax expense ( 7,762 ) 439 40,185 ix 32,862 net income ( loss ) $ ( 8,485 ) $ 60,425 $ 30,502 $ 82,442 less : net income ( loss ) attributable to the non-controlling interest ( 4,081 ) 3,214 29,565 x 28,698 net income ( loss ) attributable to class a shareholders ( 4,404 ) 57,211 937 53,744 earnings ( loss ) per class a share : basic $ ( 0.05 ) $ 0.55 diluted $ ( 0.05 ) $ 0.54 weighted-average shares outstanding : basic 97,792 ( 180 ) xi 97,612 diluted 97,792 2,393 xii 100,185 46 i. the amounts in these columns represent the successor 's and predecessor 's historical results of operations for the periods reflected . ii . the adjustment reflects the incremental depreciation expense associated with the allocation of purchase price to property and equipment and is recorded in cost of goods sold . in addition , for cost of goods sold , approximately $ 8.9 million reflects the non-cash impact of the re-measurement of inventory at fair value as a result of the business combination . iii . for cost of goods sold , this adjustment represents special payments we made to certain employees at our bakery facilities of $ 2.2 million and for operating costs this adjustment represents special payments to corporate employees of $ 2.5 million as compensation for their efforts in connection with the business combination iv . represents compensation for management profits interest plan of approximately $ 3.9 million that was recognized as part of the business combination . see note 1 to the consolidated financial statements for additional information . v. represents additional amortization expense associated with the fair value recognized for customer relationship in connection with the business combination . vi . this adjustment consists primarily of legal and professional fees , and other costs associated with the business combination . vii . represents non-cash expenses incurred by successor for stock awarded to mr. metropoulos as required under his new employment arrangements . viii . represents the reduction in interest expense due to the repayment of a portion of hostess holdings debt as part of the business combination . ix . represents the effective income tax rate of 28.5 % for the successor , giving effect to the noncontrolling interest , and not giving effect to the adjustment made to the valuation allowance on the company 's historical deferred tax assets . x. represents the elimination of historical income attributable to the noncontrolling interest and attributes a portion of the pro forma income to the noncontrolling interest created in the business combination . income is allocated to the noncontrolling interest based on its pro rata share of the total equity of hostess holdings . xi . this adjustment annualized the basic weighted average number of class a shares outstanding . xii . this adjustment includes the dilutive impact of the outstanding warrants that are considered anti-dilutive on a historical basis . 47 results of operations—for the unaudited pro forma combined year ended december 31 , 2016 compared to the year ended december 31 , 2015 replace_table_token_8_th net revenue pro forma combined net revenue was $ 727.6 million for 2016 , an increase of $ 106.8 million , or 17.2 % , compared to net revenue of $ 620.8 million for 2015 , primarily due to new product launches in 2016 of $ 44.0 million and contribution of superior net revenue of $ 26.7 million from the date of its acquisition . new products in 2016 included deep fried twinkies ® , hostess sweet shop brownies , plus the relaunch of suzy qs ® snack cakes . 48 cost of goods sold cost of goods sold increased 15.6 % , or $ 55.6 million , to $ 411.6 million for the pro forma combined year ended december 31 , 2016 , compared to $ 356.0 million for the year ended december 31 , 2015 , primarily due to the increase in volume . as a percentage of net revenue , pro forma combined cost of goods sold was 56.6 % for the year ended december 31 , 2016 and cost of goods sold was 57.3 % for the year ended december 31 , 2015. this decrease is due primarily to higher ingredient costs for the

