these results were driven by continued growth in our regulated businesses from infrastructure investment , acquisitions and organic growth , combined with growth in our market-based businesses from our homeowner services group and keystone . these increases were partially offset by lower water services demand in our regulated businesses and lower capital upgrades in our military services group . adjustments to gaap adjusted diluted earnings per share represents a non-gaap financial measure and is calculated as gaap diluted earnings per share , excluding the impact of one or more of the following events : ( i ) a gain in the third quarter of 2018 on the sale of the majority of our contract services group 's o & m contracts ; ( ii ) a goodwill and intangible impairment charge in the third quarter of 2018 resulting from narrowing the scope of the keystone business ; ( iii ) insurance settlements received in the third quarter of 2017 and the second quarter of 2018 related to the freedom industries chemical spill in west virginia ; ( iv ) non-cash re-measurement charges recorded in the fourth quarters of 2017 and 2018 resulting from the impact of the change in the federal corporate income tax rate on the company 's deferred income taxes from the enactment of the tcja ; ( v ) an early extinguishment of debt charge at the parent company in the third quarter of 2017 ; and ( vi ) a charge in the fourth quarter of 2016 related to the binding global agreement in principle to settle claims related to the freedom industries chemical spill . we believe that this non-gaap measure provides investors with useful information by excluding certain matters that may not be indicative of our ongoing operating results , and that providing this non-gaap measure will allow investors to understand better our businesses ' operating performance and facilitate a meaningful year-to-year comparison of our results of operations . although management uses this non-gaap financial measure internally to evaluate our results of operations , we do not intend results excluding the adjustments to represent results as defined by gaap , and the reader should not consider them as indicators of performance . this non-gaap financial measure is derived from our consolidated financial information and it should be considered in addition to , and not as a substitute for , measures of financial performance prepared in accordance with gaap . in addition , this non-gaap financial measure as defined and used above may not be comparable to similarly titled non-gaap measures used by other companies , and , accordingly , it may have significant limitations on its use . achievements and strategic focus we believe our success has , and will continue to be , guided by the following strategic philosophies : purpose driven— “ we keep life flowing ” is our trademark purpose , for our customers and our communities , because we provide the most precious of life 's critical needs . people powered—a company is its people . people who have a safe place to work , both physically and emotionally . customer obsessed—without customers , we do n't exist . they are why we are here . trusted source of everything water— best in class , ensuring we have safe , reliable and affordable water . 43 our strategy , which is driven by our vision and values , will continue to be anchored on our five central themes : safety—safety is both a strategy and a value at american water . we put safety first in everything that we do . in 2018 , we : finished the year with fewer employee injuries than the prior year , improving both our occupational safety and health administration recordable incident rate ( “ orir ” ) and days away , restricted or transferred ( “ dart ” ) injury severity rate ; continued to strengthen our safety culture as measured by employee responses to safety-related questions in the company 's culture survey , and feedback from our in-person , labor-management conferences ; initiated a frontline safety leadership strategic action group , developed to provide recommendations to improve safety leadership training , tools , and engagement ; and championed , through our safety council which consists of management and labor employees , our annual safety day , the ceo safety award and other recognition programs . looking forward , we will : strive toward zero workplace incidents and eliminate hazards to reduce the potential for incidents ; continue our focus on “ near miss reporting ” and promoting continuous learning and corrective action regarding potential safety hazards before incidents can occur ; improve toward the achievement of our orir and dart targets ; continue our focus on requiring contractors that perform work for the company be held to the same safety standards as our employees ; and continue to promote the company 's employee stop work authority , where every employee is empowered to stop any work he or she perceives as unsafe , and to initiate a review to resolve concerns and to eliminate safety hazards . customer—our customers are at the center of everything we plan and do . customer input , their ideas and experiences will drive how we improve our processes and systems . we want to be the best , and if our customers have a choice as to who serves them , we want it to be us . in 2018 , we : achieved a customer satisfaction rating in the top quartile among our industry peer group ; expanded our customer experience initiative , designed to make it easier for customers to do business with us , and enhanced our quality of service through implementation and upgrades of technology tools ; and continued to make needed infrastructure investments while implementing operational efficiency improvements to keep customer bills affordable . story_separator_special_tag 49 infrastructure surcharges a number of states have authorized the use of regulatory mechanisms that permit rates to be adjusted outside of a general rate case for certain costs and investments , such as infrastructure surcharge mechanisms that permit recovery of capital investments to replace aging infrastructure . the following table provides annualized incremental revenues resulting from infrastructure surcharge authorizations that became effective during 2016 through 2018 , assuming a constant water sales volume : replace_table_token_7_th ( a ) in 2018 , the effective date was january 1. in 2016 , $ 1 million was effective january 1 and $ 6 million was effective august 1 . ( b ) in 2017 , $ 10 million was effective june 1 and $ 4 million was effective december 10. in 2016 , $ 9 million was effective june 1 and $ 10 million was effective december 1 . ( c ) in 2017 , the effective date was january 1. in 2016 , $ 11 million , $ 2 million , $ 6 million and $ 9 million were effective january 1 , april 1 , july 1 and october 1 , respectively . on february 8 , 2019 , our west virginia subsidiary received authorization for additional annualized revenues of $ 2 million from an infrastructure surcharge filing , effective january 1 , 2019 . on december 20 , 2018 , our illinois subsidiary filed for an infrastructure surcharge requesting $ 8 million in additional annualized revenues , which will become effective on january 1 , 2019 . pending infrastructure surcharge filings on november 16 , 2018 , our tennessee subsidiary filed for an infrastructure surcharge requesting $ 2 million in additional annualized revenues . there is no assurance that all or any portion of these requests will be granted . tax matters tax cuts and jobs act on december 22 , 2017 , the tcja was signed into law , which , among other things , enacted significant and complex changes to the internal revenue code of 1986 , including a reduction in the federal corporate income tax rate from 35 % to 21 % as of january 1 , 2018 , and certain other provisions related specifically to the public utility industry , including continuation of interest expense deductibility , the exclusion from utilizing bonus depreciation and the normalization of deferred income tax . the enactment of the tcja required a re-measurement of our deferred income taxes that materially impacted our 2017 results of operations and financial position . the portion of this re-measurement related to our regulated businesses was substantially offset by a regulatory liability , as we believe it is probable that the deferred income tax excesses created by the tcja will benefit our regulated customers in future rates . the remaining portion of this re-measurement of the net deferred income tax liability was recorded as a non-cash charge to earnings during the fourth quarter of 2017. during 2018 , we continued to gather , assess and evaluate additional guidance and regulations related to the changes related to the tcja . as a result of this process , we have recorded additional adjustments to finalize our initial 2017 estimates . see note 14—income taxes in the notes to consolidated financial statements for additional information . 50 during 2018 , the company 's 14 regulatory jurisdictions began to consider the impacts of the tcja . the company has adjusted customer rates to reflect the lower income tax rate in 10 states . in one of those 10 states , a portion of the tax savings is being used to reduce certain regulatory assets . in one additional state , we are using the tax savings to offset additional capital investment and to reduce a regulatory asset . proceedings in the other three jurisdictions remain pending . with respect to excess accumulated deferred income taxes , regulators in the eight states that have considered the issue have agreed with our overall timeline of passing the excess back to customers beginning no earlier than 2019 , when the company is able to produce the normalization schedule using the average rate assumption method . in one of those states , we will use the amortization of the excess accumulated deferred income taxes to offset future infrastructure investments . on march 23 , 2018 , president trump signed the consolidated appropriations act of 2018 ( the “ caa ” ) . the caa corrects and clarifies some aspects of the tcja related to bonus depreciation eligibility . specifically , property that was acquired , or the construction began , prior to september 27 , 2017 , is eligible for bonus depreciation . this clarification allowed the company to benefit from additional bonus depreciation deductions on the 2017 tax return , and as a result , we believe that we will likely begin paying federal income taxes towards the end of 2019 , when we expect our federal nol carryforwards balance will be fully used , and expect to be a full year cash taxpayer by 2020 , although this timing could be impacted by any significant changes in our future results of operations and the outcome of pending regulatory proceedings regarding the tcja . on november 26 , 2018 , the u.s. department of the treasury released proposed regulations concerning interest expense limitation rules . the tcja revised and broadened the existing interest expense limitation regulations . the company has considered all the rules set forth in the proposed regulation including allocated interest expense and interest income based on the relative amounts of the company 's adjusted basis in the assets used in its excepted and non-excepted trades or business , or our regulated businesses and market-based businesses . based on our interpretation of the new guidance , the company reasonably believes the deductibility of its interest expense will not be limited under the new regulations . other tax matters on june 1 , 2018 , the state of missouri enacted

cash flows used in investing activities the following table provides a summary of the major items affecting our cash flows used in investing activities : replace_table_token_18_th ( a ) includes removal costs from property , plant and equipment retirements and proceeds from sale of assets . 62 in 2018 and 2017 , cash flows used in investing activities increased primarily due to an increase in our regulated capital expenditures , principally from incremental investments associated with the replacement and renewal of our transmission and distribution infrastructure in our regulated businesses , as well as acquisitions in both our regulated businesses and market-based businesses , as discussed below . our infrastructure investment plan consists of both infrastructure renewal programs , where we replace infrastructure , as needed , and major capital investment projects , where we construct new water and wastewater treatment and delivery facilities to meet new customer growth and water quality regulations . our projected capital expenditures and other investments are subject to periodic review and revision to reflect changes in economic conditions and other factors . the following table provides a summary of our historical capital expenditures related to the upgrading of our infrastructure and systems : replace_table_token_19_th in 2018 , our capital expenditures increased $ 152 million , or 10.6 % , primarily due to investment across the majority of our infrastructure categories .


 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 used in investing activities the following table provides a summary of the major items affecting our cash flows used in investing activities : replace_table_token_18_th ( a ) includes removal costs from property , plant and equipment retirements and proceeds from sale of assets . 62 in 2018 and 2017 , cash flows used in investing activities increased primarily due to an increase in our regulated capital expenditures , principally from incremental investments associated with the replacement and renewal of our transmission and distribution infrastructure in our regulated businesses , as well as acquisitions in both our regulated businesses and market-based businesses , as discussed below . our infrastructure investment plan consists of both infrastructure renewal programs , where we replace infrastructure , as needed , and major capital investment projects , where we construct new water and wastewater treatment and delivery facilities to meet new customer growth and water quality regulations . our projected capital expenditures and other investments are subject to periodic review and revision to reflect changes in economic conditions and other factors . the following table provides a summary of our historical capital expenditures related to the upgrading of our infrastructure and systems : replace_table_token_19_th in 2018 , our capital expenditures increased $ 152 million , or 10.6 % , primarily due to investment across the majority of our infrastructure categories .
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 Suspicious Activity Report : these results were driven by continued growth in our regulated businesses from infrastructure investment , acquisitions and organic growth , combined with growth in our market-based businesses from our homeowner services group and keystone . these increases were partially offset by lower water services demand in our regulated businesses and lower capital upgrades in our military services group . adjustments to gaap adjusted diluted earnings per share represents a non-gaap financial measure and is calculated as gaap diluted earnings per share , excluding the impact of one or more of the following events : ( i ) a gain in the third quarter of 2018 on the sale of the majority of our contract services group 's o & m contracts ; ( ii ) a goodwill and intangible impairment charge in the third quarter of 2018 resulting from narrowing the scope of the keystone business ; ( iii ) insurance settlements received in the third quarter of 2017 and the second quarter of 2018 related to the freedom industries chemical spill in west virginia ; ( iv ) non-cash re-measurement charges recorded in the fourth quarters of 2017 and 2018 resulting from the impact of the change in the federal corporate income tax rate on the company 's deferred income taxes from the enactment of the tcja ; ( v ) an early extinguishment of debt charge at the parent company in the third quarter of 2017 ; and ( vi ) a charge in the fourth quarter of 2016 related to the binding global agreement in principle to settle claims related to the freedom industries chemical spill . we believe that this non-gaap measure provides investors with useful information by excluding certain matters that may not be indicative of our ongoing operating results , and that providing this non-gaap measure will allow investors to understand better our businesses ' operating performance and facilitate a meaningful year-to-year comparison of our results of operations . although management uses this non-gaap financial measure internally to evaluate our results of operations , we do not intend results excluding the adjustments to represent results as defined by gaap , and the reader should not consider them as indicators of performance . this non-gaap financial measure is derived from our consolidated financial information and it should be considered in addition to , and not as a substitute for , measures of financial performance prepared in accordance with gaap . in addition , this non-gaap financial measure as defined and used above may not be comparable to similarly titled non-gaap measures used by other companies , and , accordingly , it may have significant limitations on its use . achievements and strategic focus we believe our success has , and will continue to be , guided by the following strategic philosophies : purpose driven— “ we keep life flowing ” is our trademark purpose , for our customers and our communities , because we provide the most precious of life 's critical needs . people powered—a company is its people . people who have a safe place to work , both physically and emotionally . customer obsessed—without customers , we do n't exist . they are why we are here . trusted source of everything water— best in class , ensuring we have safe , reliable and affordable water . 43 our strategy , which is driven by our vision and values , will continue to be anchored on our five central themes : safety—safety is both a strategy and a value at american water . we put safety first in everything that we do . in 2018 , we : finished the year with fewer employee injuries than the prior year , improving both our occupational safety and health administration recordable incident rate ( “ orir ” ) and days away , restricted or transferred ( “ dart ” ) injury severity rate ; continued to strengthen our safety culture as measured by employee responses to safety-related questions in the company 's culture survey , and feedback from our in-person , labor-management conferences ; initiated a frontline safety leadership strategic action group , developed to provide recommendations to improve safety leadership training , tools , and engagement ; and championed , through our safety council which consists of management and labor employees , our annual safety day , the ceo safety award and other recognition programs . looking forward , we will : strive toward zero workplace incidents and eliminate hazards to reduce the potential for incidents ; continue our focus on “ near miss reporting ” and promoting continuous learning and corrective action regarding potential safety hazards before incidents can occur ; improve toward the achievement of our orir and dart targets ; continue our focus on requiring contractors that perform work for the company be held to the same safety standards as our employees ; and continue to promote the company 's employee stop work authority , where every employee is empowered to stop any work he or she perceives as unsafe , and to initiate a review to resolve concerns and to eliminate safety hazards . customer—our customers are at the center of everything we plan and do . customer input , their ideas and experiences will drive how we improve our processes and systems . we want to be the best , and if our customers have a choice as to who serves them , we want it to be us . in 2018 , we : achieved a customer satisfaction rating in the top quartile among our industry peer group ; expanded our customer experience initiative , designed to make it easier for customers to do business with us , and enhanced our quality of service through implementation and upgrades of technology tools ; and continued to make needed infrastructure investments while implementing operational efficiency improvements to keep customer bills affordable . story_separator_special_tag 49 infrastructure surcharges a number of states have authorized the use of regulatory mechanisms that permit rates to be adjusted outside of a general rate case for certain costs and investments , such as infrastructure surcharge mechanisms that permit recovery of capital investments to replace aging infrastructure . the following table provides annualized incremental revenues resulting from infrastructure surcharge authorizations that became effective during 2016 through 2018 , assuming a constant water sales volume : replace_table_token_7_th ( a ) in 2018 , the effective date was january 1. in 2016 , $ 1 million was effective january 1 and $ 6 million was effective august 1 . ( b ) in 2017 , $ 10 million was effective june 1 and $ 4 million was effective december 10. in 2016 , $ 9 million was effective june 1 and $ 10 million was effective december 1 . ( c ) in 2017 , the effective date was january 1. in 2016 , $ 11 million , $ 2 million , $ 6 million and $ 9 million were effective january 1 , april 1 , july 1 and october 1 , respectively . on february 8 , 2019 , our west virginia subsidiary received authorization for additional annualized revenues of $ 2 million from an infrastructure surcharge filing , effective january 1 , 2019 . on december 20 , 2018 , our illinois subsidiary filed for an infrastructure surcharge requesting $ 8 million in additional annualized revenues , which will become effective on january 1 , 2019 . pending infrastructure surcharge filings on november 16 , 2018 , our tennessee subsidiary filed for an infrastructure surcharge requesting $ 2 million in additional annualized revenues . there is no assurance that all or any portion of these requests will be granted . tax matters tax cuts and jobs act on december 22 , 2017 , the tcja was signed into law , which , among other things , enacted significant and complex changes to the internal revenue code of 1986 , including a reduction in the federal corporate income tax rate from 35 % to 21 % as of january 1 , 2018 , and certain other provisions related specifically to the public utility industry , including continuation of interest expense deductibility , the exclusion from utilizing bonus depreciation and the normalization of deferred income tax . the enactment of the tcja required a re-measurement of our deferred income taxes that materially impacted our 2017 results of operations and financial position . the portion of this re-measurement related to our regulated businesses was substantially offset by a regulatory liability , as we believe it is probable that the deferred income tax excesses created by the tcja will benefit our regulated customers in future rates . the remaining portion of this re-measurement of the net deferred income tax liability was recorded as a non-cash charge to earnings during the fourth quarter of 2017. during 2018 , we continued to gather , assess and evaluate additional guidance and regulations related to the changes related to the tcja . as a result of this process , we have recorded additional adjustments to finalize our initial 2017 estimates . see note 14—income taxes in the notes to consolidated financial statements for additional information . 50 during 2018 , the company 's 14 regulatory jurisdictions began to consider the impacts of the tcja . the company has adjusted customer rates to reflect the lower income tax rate in 10 states . in one of those 10 states , a portion of the tax savings is being used to reduce certain regulatory assets . in one additional state , we are using the tax savings to offset additional capital investment and to reduce a regulatory asset . proceedings in the other three jurisdictions remain pending . with respect to excess accumulated deferred income taxes , regulators in the eight states that have considered the issue have agreed with our overall timeline of passing the excess back to customers beginning no earlier than 2019 , when the company is able to produce the normalization schedule using the average rate assumption method . in one of those states , we will use the amortization of the excess accumulated deferred income taxes to offset future infrastructure investments . on march 23 , 2018 , president trump signed the consolidated appropriations act of 2018 ( the “ caa ” ) . the caa corrects and clarifies some aspects of the tcja related to bonus depreciation eligibility . specifically , property that was acquired , or the construction began , prior to september 27 , 2017 , is eligible for bonus depreciation . this clarification allowed the company to benefit from additional bonus depreciation deductions on the 2017 tax return , and as a result , we believe that we will likely begin paying federal income taxes towards the end of 2019 , when we expect our federal nol carryforwards balance will be fully used , and expect to be a full year cash taxpayer by 2020 , although this timing could be impacted by any significant changes in our future results of operations and the outcome of pending regulatory proceedings regarding the tcja . on november 26 , 2018 , the u.s. department of the treasury released proposed regulations concerning interest expense limitation rules . the tcja revised and broadened the existing interest expense limitation regulations . the company has considered all the rules set forth in the proposed regulation including allocated interest expense and interest income based on the relative amounts of the company 's adjusted basis in the assets used in its excepted and non-excepted trades or business , or our regulated businesses and market-based businesses . based on our interpretation of the new guidance , the company reasonably believes the deductibility of its interest expense will not be limited under the new regulations . other tax matters on june 1 , 2018 , the state of missouri enacted

