17 results of operations the following table provides a summary of our financial results , including information presented as a percentage of net sales ( dollars in millions ) : replace_table_token_5_th the following table provides net sales by geographic market ( dollars in millions ) : replace_table_token_6_th year ended december 31 , 2017 compared to year ended december 31 , 2016 - consolidated results net sales net sales increased 5.4 % in 2017 compared to 2016 , primarily driven by volume increases . the increase in volume was primarily due to market growth in our residential heating and cooling and commercial heating and cooling segments . changes in foreign currency exchange rates and the effects of price and mix also had positive impacts on net sales . gross profit gross profit margins for 2017 decreased 30 basis points ( `` bps `` ) to 29.3 % compared to 29.6 % in 2016. we saw margin decreases of 80 bps from higher commodity costs , 50 bps for investments in distribution expansion , and 40 bps from other product costs . these decreases were offset by increases of 100 bps from sourcing and engineering-led cost reductions and 40 bps from favorable price and mix . 18 selling , general and administrative expenses sg & a expenses increased by $ 17 million in 2017 compared to 2016. as a percentage of net sales , sg & a expenses decreased 50 bps from 17.1 % to 16.6 % in the same periods . sg & a increased due to general wage inflation , increased healthcare costs and increased investment in information technology and research and development partially offset by decreases in incentive compensation . losses and other expenses , net losses and other expenses , net for 2017 and 2016 included the following ( in millions ) : replace_table_token_7_th the realized gains on settled futures contracts in 2017 was attributable to changes in commodity prices relative to our settled futures contract prices , as commodity prices have increased in 2017 relative to 2016. additionally , the change in unrealized losses , net on unsettled futures contracts was due to lower commodity prices relative to the unsettled futures contract prices . for more information on our derivatives , see note 8 in the notes to the consolidated financial statements . foreign currency exchange gains increased in 2017 primarily due to improvement in foreign exchange rates in our primary markets . the special legal contingency charges increased primarily due to costs associated with the matter reported to the securities and exchange commission and department of justice . the asbestos-related litigation relates to known and estimated future asbestos matters . the environmental liabilities relate to estimated remediation costs for contamination at some of our facilities . the contractor tax payments relate to a charge for underpaid contractor taxes at one of our non-u.s. subsidiaries . refer to note 10 in the notes to the consolidated financial statements for more information on litigation , including the asbestos-related litigation , and the environmental liabilities . restructuring charges restructuring charges were $ 3.2 million in 2017 compared to $ 1.8 million in 2016. the charges in 2017 and 2016 were primarily for projects to realign resources and enhance distribution capabilities . for more information on our restructuring activities , see note 16 in the notes to the consolidated financial statements . goodwill we performed a qualitative impairment analysis and noted no indicators of goodwill impairment through december 31 , 2017 . also , we did not record any goodwill impairments in 2016. refer to note 4 in the notes to the consolidated financial statements for more information on goodwill . asset impairment we did not have any impairments of assets related to continuing operations in 2017 and 2016 . 19 pension settlement in 2016 our unfunded pension liability declined by $ 33 million to $ 89 million as the favorable impact of our $ 50 million discretionary contribution was partially offset by lower discount rates across all plans . in addition , we recorded a pension settlement charge of $ 31 million in the fourth quarter of 2016. we did not have similar funding or pension buyout activity in 2017. refer to note 12 in the notes to the consolidated financial statements for more information on pensions and employee benefit plans . income from equity method investments investments over which we do not exercise control but have significant influence are accounted for using the equity method of accounting . income from equity method investments was $ 18 million in 2017 compared to $ 18 million in 2016 due to flat earnings from our joint ventures . interest expense , net net interest expense of $ 31 million in 2017 increased from $ 27 million in 2016 primarily due to an increase in our average borrowings . income taxes the income tax provision was $ 157 million in 2017 compared to $ 124 million in 2016 , and the effective tax rate was 34 % in 2017 compared to 31 % in 2016. the 2017 effective tax rate was negatively impacted by recent changes in u.s. tax legislation that reduced the value of our deferred tax assets by $ 31.8 million , partially offset by the benefit from the impact of excess tax benefits of $ 23.6 million . the 2016 effective tax rate was not impacted by either u.s. tax rate changes or the impact of excess tax benefits . we expect our effective tax rate will be between 22 % and 24 % in future years due to the changes in u.s. tax legislation excluding the impact of excess tax benefits . refer to note 9 in the notes to the consolidated financial statements for more information on the impact of recent changes in tax legislation . story_separator_special_tag the agreement contains customary lease covenants and events of default as well as financial covenants consistent with our credit agreement and we believe we were in compliance with those covenants as of december 31 , 2017 . in 2008 , we expanded our tifton , georgia manufacturing facility using the proceeds from industrial development bonds ( “ idbs ” ) . we entered into a lease agreement with the owner of the property and the issuer of the idbs , and through our lease payments fund the interest payments to investors in the idbs . we also guaranteed the repayment of the idbs and have oustanding letters of credit totaling $ 14.3 million to fund a potential repurchase of the idbs in the event investors exercised their right to tender the idbs to the trustee . as of december 31 , 2017 and 2016 , we had capital lease obligations of $ 14.3 million related to these transactions , with $ 2.6 million of payments due in 2018. refer to note 10 in the notes to the consolidated financial statements for more details on our leasing commitments . off balance sheet arrangements in addition to the credit facilities , promissory notes and leasing commitments described above , we also lease real estate and machinery and equipment pursuant to operating leases that are not capitalized on the balance sheet , including high-turnover equipment such as autos and service vehicles and short-lived equipment such as personal computers . rent expense for these leases was $ 58 million , $ 58 million , and $ 54 million in 2017 , 2016 , and 2015 , respectively . refer to notes 10 and 22 of the notes to the consolidated financial statements for more information on our lease commitments and rent expense , respectively . contractual obligations summarized below are our contractual obligations as of december 31 , 2017 and their expected impact on our liquidity and cash flows in future periods ( in millions ) : replace_table_token_17_th ( 1 ) contractual obligations related to capital leases are included as part of long-term debt . ( 2 ) estimated interest payments are based on current contractual requirements and do not reflect seasonal changes in the balance of our domestic credit facility . ( 3 ) purchase obligations consist of inventory that is part of our third party logistics programs . the table above does not include pension , post-retirement benefit and warranty liabilities because it is not certain when these liabilities will be funded . for additional information regarding our contractual obligations , see notes 10 and 11 of the notes to the consolidated financial statements . see note 12 of the notes to the consolidated financial statements for more information on our pension and post-retirement benefits obligations . 28 fair value measurements fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date . fair value is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date and requires consideration of our creditworthiness when valuing certain liabilities . our framework for measuring fair value is based on a three-level hierarchy for fair value measurements . the three-level fair value hierarchy for disclosure of fair value measurements is defined as follows : level 1 - quoted prices for identical instruments in active markets at the measurement date . level 2 - quoted prices for similar instruments in active markets ; quoted prices for identical or similar instruments in markets that are not active ; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at the measurement date and for the anticipated term of the instrument . level 3 - valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable inputs that reflect the reporting entity 's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances . where available , the fair values were based upon quoted prices in active markets . however , if quoted prices were not available , then the fair values were based upon quoted prices for similar assets or liabilities or independently sourced market parameters , such as credit default swap spreads , yield curves , reported trades , broker/dealer quotes , interest rates and benchmark securities . for assets and liabilities without observable market activity , if any , the fair values were based upon discounted cash flow methodologies incorporating assumptions that , in our judgment , reflect the assumptions a marketplace participant would use . valuation adjustments to reflect either party 's creditworthiness and ability to pay were incorporated into our valuations , where appropriate , as of december 31 , 2017 and 2016 , the measurement dates . see note 19 of the notes to the consolidated financial statements for more information on the assets and liabilities measured at fair value . market risk commodity price risk we enter into commodity futures contracts to stabilize prices expected to be paid for raw materials and parts containing high copper and aluminum content . these contracts are for quantities equal to or less than quantities expected to be consumed in future production . fluctuations in metal commodity prices impact the value of the futures contracts that we hold . when metal commodity prices rise , the fair value of our futures contracts increases . conversely , when commodity prices fall , the fair value of our futures contracts decreases . information about our exposure to metal commodity price market risks and a sensitivity analysis related to our metal commodity hedges is presented below ( in millions ) : replace_table_token_18_th refer to note 8 of the notes to the consolidated financial statements for additional information regarding our commodity futures contracts

net cash provided by operating activities - net cash provided by operating activities decreased $ 49 million to $ 325 million in 2017 compared to $ 374 million in 2016 . this decrease was primarily attributable to the increases in working capital , partially offset by a reduction in pension contributions and an increase in net income . net cash used in investing activities - capital expenditures were $ 98 million , $ 84 million and $ 70 million in 2017 , 2016 and 2015 , respectively . capital expenditures in 2017 were primarily related to an expansion of manufacturing capacity and equipment , investments in systems and software to support the overall enterprise , and continued investments in our distribution network . net cash used in financing activities - net cash used in financing activities decreased to $ 218 million in 2017 from $ 275 million in 2016 , primarily attributable to a decrease in the amount of share repurchases in 2017 as compared to 2016. cash continues to be provided by an increase in net borrowings and used to fund share repurchases and dividend payments . we used $ 250.0 million in 2017 to purchase 1.5 million shares of stock under our share repurchase plans . 25 debt position the following table details our lines of credit and financing arrangements as of december 31 , 2017 ( in millions ) : replace_table_token_16_th ( 1 ) the maximum securitization amount ranges from $ 225.0 million to $ 380.0 million , depending on the period , after consideration of the november 13 , 2017 amendment . the maximum capacity of the asset securitization program ( `` asp '' ) is the lesser of the maximum securitization amount or 100 % of the net pool balance less reserves , as defined under the asp . ( 2 ) the available future borrowings on our domestic credit facility are $ 500.1 million after being reduced by the outstanding borrowings and $ 2.9 million in outstanding standby letters of credit . we also had $ 34.7 million in outstanding standby letters of credit outside of the domestic credit facility as of december 31 , 2017 .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```net cash provided by operating activities - net cash provided by operating activities decreased $ 49 million to $ 325 million in 2017 compared to $ 374 million in 2016 . this decrease was primarily attributable to the increases in working capital , partially offset by a reduction in pension contributions and an increase in net income . net cash used in investing activities - capital expenditures were $ 98 million , $ 84 million and $ 70 million in 2017 , 2016 and 2015 , respectively . capital expenditures in 2017 were primarily related to an expansion of manufacturing capacity and equipment , investments in systems and software to support the overall enterprise , and continued investments in our distribution network . net cash used in financing activities - net cash used in financing activities decreased to $ 218 million in 2017 from $ 275 million in 2016 , primarily attributable to a decrease in the amount of share repurchases in 2017 as compared to 2016. cash continues to be provided by an increase in net borrowings and used to fund share repurchases and dividend payments . we used $ 250.0 million in 2017 to purchase 1.5 million shares of stock under our share repurchase plans . 25 debt position the following table details our lines of credit and financing arrangements as of december 31 , 2017 ( in millions ) : replace_table_token_16_th ( 1 ) the maximum securitization amount ranges from $ 225.0 million to $ 380.0 million , depending on the period , after consideration of the november 13 , 2017 amendment . the maximum capacity of the asset securitization program ( `` asp '' ) is the lesser of the maximum securitization amount or 100 % of the net pool balance less reserves , as defined under the asp . ( 2 ) the available future borrowings on our domestic credit facility are $ 500.1 million after being reduced by the outstanding borrowings and $ 2.9 million in outstanding standby letters of credit . we also had $ 34.7 million in outstanding standby letters of credit outside of the domestic credit facility as of december 31 , 2017 .
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 Suspicious Activity Report : 17 results of operations the following table provides a summary of our financial results , including information presented as a percentage of net sales ( dollars in millions ) : replace_table_token_5_th the following table provides net sales by geographic market ( dollars in millions ) : replace_table_token_6_th year ended december 31 , 2017 compared to year ended december 31 , 2016 - consolidated results net sales net sales increased 5.4 % in 2017 compared to 2016 , primarily driven by volume increases . the increase in volume was primarily due to market growth in our residential heating and cooling and commercial heating and cooling segments . changes in foreign currency exchange rates and the effects of price and mix also had positive impacts on net sales . gross profit gross profit margins for 2017 decreased 30 basis points ( `` bps `` ) to 29.3 % compared to 29.6 % in 2016. we saw margin decreases of 80 bps from higher commodity costs , 50 bps for investments in distribution expansion , and 40 bps from other product costs . these decreases were offset by increases of 100 bps from sourcing and engineering-led cost reductions and 40 bps from favorable price and mix . 18 selling , general and administrative expenses sg & a expenses increased by $ 17 million in 2017 compared to 2016. as a percentage of net sales , sg & a expenses decreased 50 bps from 17.1 % to 16.6 % in the same periods . sg & a increased due to general wage inflation , increased healthcare costs and increased investment in information technology and research and development partially offset by decreases in incentive compensation . losses and other expenses , net losses and other expenses , net for 2017 and 2016 included the following ( in millions ) : replace_table_token_7_th the realized gains on settled futures contracts in 2017 was attributable to changes in commodity prices relative to our settled futures contract prices , as commodity prices have increased in 2017 relative to 2016. additionally , the change in unrealized losses , net on unsettled futures contracts was due to lower commodity prices relative to the unsettled futures contract prices . for more information on our derivatives , see note 8 in the notes to the consolidated financial statements . foreign currency exchange gains increased in 2017 primarily due to improvement in foreign exchange rates in our primary markets . the special legal contingency charges increased primarily due to costs associated with the matter reported to the securities and exchange commission and department of justice . the asbestos-related litigation relates to known and estimated future asbestos matters . the environmental liabilities relate to estimated remediation costs for contamination at some of our facilities . the contractor tax payments relate to a charge for underpaid contractor taxes at one of our non-u.s. subsidiaries . refer to note 10 in the notes to the consolidated financial statements for more information on litigation , including the asbestos-related litigation , and the environmental liabilities . restructuring charges restructuring charges were $ 3.2 million in 2017 compared to $ 1.8 million in 2016. the charges in 2017 and 2016 were primarily for projects to realign resources and enhance distribution capabilities . for more information on our restructuring activities , see note 16 in the notes to the consolidated financial statements . goodwill we performed a qualitative impairment analysis and noted no indicators of goodwill impairment through december 31 , 2017 . also , we did not record any goodwill impairments in 2016. refer to note 4 in the notes to the consolidated financial statements for more information on goodwill . asset impairment we did not have any impairments of assets related to continuing operations in 2017 and 2016 . 19 pension settlement in 2016 our unfunded pension liability declined by $ 33 million to $ 89 million as the favorable impact of our $ 50 million discretionary contribution was partially offset by lower discount rates across all plans . in addition , we recorded a pension settlement charge of $ 31 million in the fourth quarter of 2016. we did not have similar funding or pension buyout activity in 2017. refer to note 12 in the notes to the consolidated financial statements for more information on pensions and employee benefit plans . income from equity method investments investments over which we do not exercise control but have significant influence are accounted for using the equity method of accounting . income from equity method investments was $ 18 million in 2017 compared to $ 18 million in 2016 due to flat earnings from our joint ventures . interest expense , net net interest expense of $ 31 million in 2017 increased from $ 27 million in 2016 primarily due to an increase in our average borrowings . income taxes the income tax provision was $ 157 million in 2017 compared to $ 124 million in 2016 , and the effective tax rate was 34 % in 2017 compared to 31 % in 2016. the 2017 effective tax rate was negatively impacted by recent changes in u.s. tax legislation that reduced the value of our deferred tax assets by $ 31.8 million , partially offset by the benefit from the impact of excess tax benefits of $ 23.6 million . the 2016 effective tax rate was not impacted by either u.s. tax rate changes or the impact of excess tax benefits . we expect our effective tax rate will be between 22 % and 24 % in future years due to the changes in u.s. tax legislation excluding the impact of excess tax benefits . refer to note 9 in the notes to the consolidated financial statements for more information on the impact of recent changes in tax legislation . story_separator_special_tag the agreement contains customary lease covenants and events of default as well as financial covenants consistent with our credit agreement and we believe we were in compliance with those covenants as of december 31 , 2017 . in 2008 , we expanded our tifton , georgia manufacturing facility using the proceeds from industrial development bonds ( “ idbs ” ) . we entered into a lease agreement with the owner of the property and the issuer of the idbs , and through our lease payments fund the interest payments to investors in the idbs . we also guaranteed the repayment of the idbs and have oustanding letters of credit totaling $ 14.3 million to fund a potential repurchase of the idbs in the event investors exercised their right to tender the idbs to the trustee . as of december 31 , 2017 and 2016 , we had capital lease obligations of $ 14.3 million related to these transactions , with $ 2.6 million of payments due in 2018. refer to note 10 in the notes to the consolidated financial statements for more details on our leasing commitments . off balance sheet arrangements in addition to the credit facilities , promissory notes and leasing commitments described above , we also lease real estate and machinery and equipment pursuant to operating leases that are not capitalized on the balance sheet , including high-turnover equipment such as autos and service vehicles and short-lived equipment such as personal computers . rent expense for these leases was $ 58 million , $ 58 million , and $ 54 million in 2017 , 2016 , and 2015 , respectively . refer to notes 10 and 22 of the notes to the consolidated financial statements for more information on our lease commitments and rent expense , respectively . contractual obligations summarized below are our contractual obligations as of december 31 , 2017 and their expected impact on our liquidity and cash flows in future periods ( in millions ) : replace_table_token_17_th ( 1 ) contractual obligations related to capital leases are included as part of long-term debt . ( 2 ) estimated interest payments are based on current contractual requirements and do not reflect seasonal changes in the balance of our domestic credit facility . ( 3 ) purchase obligations consist of inventory that is part of our third party logistics programs . the table above does not include pension , post-retirement benefit and warranty liabilities because it is not certain when these liabilities will be funded . for additional information regarding our contractual obligations , see notes 10 and 11 of the notes to the consolidated financial statements . see note 12 of the notes to the consolidated financial statements for more information on our pension and post-retirement benefits obligations . 28 fair value measurements fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date . fair value is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date and requires consideration of our creditworthiness when valuing certain liabilities . our framework for measuring fair value is based on a three-level hierarchy for fair value measurements . the three-level fair value hierarchy for disclosure of fair value measurements is defined as follows : level 1 - quoted prices for identical instruments in active markets at the measurement date . level 2 - quoted prices for similar instruments in active markets ; quoted prices for identical or similar instruments in markets that are not active ; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets at the measurement date and for the anticipated term of the instrument . level 3 - valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable inputs that reflect the reporting entity 's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances . where available , the fair values were based upon quoted prices in active markets . however , if quoted prices were not available , then the fair values were based upon quoted prices for similar assets or liabilities or independently sourced market parameters , such as credit default swap spreads , yield curves , reported trades , broker/dealer quotes , interest rates and benchmark securities . for assets and liabilities without observable market activity , if any , the fair values were based upon discounted cash flow methodologies incorporating assumptions that , in our judgment , reflect the assumptions a marketplace participant would use . valuation adjustments to reflect either party 's creditworthiness and ability to pay were incorporated into our valuations , where appropriate , as of december 31 , 2017 and 2016 , the measurement dates . see note 19 of the notes to the consolidated financial statements for more information on the assets and liabilities measured at fair value . market risk commodity price risk we enter into commodity futures contracts to stabilize prices expected to be paid for raw materials and parts containing high copper and aluminum content . these contracts are for quantities equal to or less than quantities expected to be consumed in future production . fluctuations in metal commodity prices impact the value of the futures contracts that we hold . when metal commodity prices rise , the fair value of our futures contracts increases . conversely , when commodity prices fall , the fair value of our futures contracts decreases . information about our exposure to metal commodity price market risks and a sensitivity analysis related to our metal commodity hedges is presented below ( in millions ) : replace_table_token_18_th refer to note 8 of the notes to the consolidated financial statements for additional information regarding our commodity futures contracts

