million , $ 21.9 million and $ 29.6 million of 2018 , 2017 and 2016 revenue , respectively . digital radiography is the largest product offering in this area , which also includes ultrasound instruments . digital radiography solutions typically consist of a combination of hardware and software placed with a customer , often combined with an ongoing service and support contract . we sell our imaging solutions both in the u.s. and internationally . our experience has been that most of the revenue is generated at the time of sale in this area , in contrast to the point of care diagnostics laboratory placements discussed above where ongoing consumable revenue is often a larger component of economic value as a given instrument is used . other cca revenue , including single use diagnostic and other tests , pharmaceuticals and biologicals , as well as research and development , licensing and royalty revenue , represented $ 28.7 million , $ 28.4 million and $ 29.0 million of our 2018 , 2017 and 2016 revenue , respectively . since items in this area are often single use by their nature , our typical aim is to build customer satisfaction and loyalty for each product , generate repeat annual sales from existing customers and expand our customer base in the future . products in this area are both supplied by third parties and provided by us . major products and services in this area include heartworm diagnostic tests and preventives , and allergy test kits , allergy immunotherapy and testing . of our annual revenue , heartworm produced primarily for private-label accounted for approximately $ 16.8 million in both 2018 and 2017 , and $ 16.7 million in 2016. we consider the cca segment to be our core business and devote most of our management time and other resources to improving the prospects for this segment . maintaining a continuing , reliable and economic supply of products we currently obtain from third parties is critical to our success in this area . virtually all of our sales and marketing expenses occur in the cca segment . the majority of our research and development spending is dedicated to this segment as well . all of our cca products are ultimately sold primarily to or through veterinarians . in many cases , veterinarians will mark up their costs to their customer . the acceptance of our products by veterinarians is critical to our success . cca products are sold directly to end users by us as well as through distribution relationships , such as the sale of kits to conduct blood testing to third party veterinary diagnostic laboratories and independent third party distributors . revenue from direct sales and distribution relationships represented approximately 57 % and 43 % , respectively , of cca 2018 revenue , 58 % and 42 % , respectively , of cca 2017 revenue and 61 % and 39 % , respectively , of cca 2016 revenue . ovp segment the ovp segment includes our approximately 160,000 square foot usda and fda licensed production facility in des moines , iowa . we view this facility as an asset which could allow us to control our cost of goods on any pharmaceuticals and vaccines that we may commercialize in the future . we have increased integration of this facility with our operations elsewhere . for example , virtually all our u.s. inventory , excluding our imaging products , is now stored at this facility and related fulfillment logistics are managed there . cca segment products manufactured at this facility are transferred at cost and are not recorded as revenue for our ovp segment . we view ovp reported revenue as revenue primarily to cover the overhead costs of the facility and to generate incremental cash flow to fund our cca segment . - 33 - historically , a significant portion of our ovp segment 's revenue has been generated from the sale of certain bovine vaccines , which have been sold primarily under the titanium® and masterguard® brands . we have an agreement with eli lilly and company and its affiliates operating through elanco for the production of these vaccines ( the `` elanco agreement `` ) . our ovp segment also produces vaccines and pharmaceuticals for other third parties . critical accounting 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 gaap . 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 . we evaluate our estimates on an ongoing basis . we base our estimates on historical experience and on various assumptions that we believe 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 from these estimates . `` part ii , item 8. note 1 summary of significant accounting policies `` to the consolidated financial statements included in this annual report on form 10-k describes the significant accounting policies used in preparation of these consolidated financial statements . we believe the following critical accounting estimates and assumptions may have a material impact on reported financial condition and operating performance and involve significant levels of judgment to account for highly uncertain matters or are susceptible to significant change . revenue recognition effective january 1 , 2018 , we adopted fasb accounting standards codification ( `` asc `` ) topic 606 , revenue from contracts with customers ( the `` new revenue standard `` ) , using the modified retrospective method for all contracts not completed as of the date of adoption . story_separator_special_tag - 39 - income tax ( benefit ) expense in 2018 , we had total income tax benefit of $ 2.1 million , including approximately $ 1.9 million related to employee share-based payment awards which are recorded in the income statement . in 2017 and 2016 respectively , we had total income tax expense of $ 8.9 million and $ 4.3 million . in 2017 , our deferred income tax expense was increased by $ 5.9 million ( i.e . the write down of deferred tax asset balances and the valuation allowance ) for tax reform legislation and our current income tax expense was reduced by $ 5.5 million for employee share-based payment awards . see `` part ii , item 8. financial statements and supplementary data , note 4. income taxes `` in the accompanying notes to the consolidated financial statements for additional information regarding our income taxes . net income attributable to heska corporation net income attributable to heska corporation was $ 5.9 million in 2018 , compared to net income attributable to heska corporation of $ 10.0 million in 2017 and net income attributable to heska corporation of $ 10.5 million in 2016 . the difference between this line item and `` net income , after equity in losses of unconsolidated affiliates `` is the net income or loss attributable to our minority interest in u.s. imaging , which we purchased on may 31 , 2017. as a result of the purchase , there was no difference between these line items for 2018 . the difference between these line items was a gain of $ 0.5 million in 2017 , and a loss of $ 1.7 million in 2016 . - 40 - non-gaap financial measures the following tables provide a summary of our results for the year ended december 31 , 2018 , after adjusting for one-time non-recurring expenses associated with the pending settlement arrangement ( see `` part ii , item 8. financial statements and supplementary data , note 13. commitments and contingencies `` ) and other legal and consulting fees described elsewhere herein , and our results for the year ended december 31 , 2017 , after adjusting for the impact of the act . the following tables reconcile our adjusted non-gaap financial measures to our most directly comparable as-reported financial measures calculated in accordance with gaap . these adjusted results are non-gaap financial measures that have been included for the reasons discussed below . replace_table_token_6_th replace_table_token_7_th a non-gaap financial measure includes a numerical measure of a company 's financial performance , financial position or cash flows that excludes amounts , or is subject to adjustments that have the effect of excluding amounts , that are included in the most directly comparable measure calculated and presented in accordance with gaap in the statement of income , balance sheet or statement of cash flows ( or equivalent statements ) of the company . the non-gaap financial measures included in the table above exclude the impact of the following one-time items . we exclude these one-time items and the related tax effects as management monitors litigation judgments , settlements and distinct extraordinary items separately from ongoing operations and evaluates ongoing performance without these amounts . - 41 - during the year ended december 31 , 2018 , we recorded a one-time settlement charge of $ 6.75 million and approximately $ 0.3 million in related legal fees in general and administrative expenses , relating to the pending settlement of the shaun fauley complaint filed on march 12 , 2015. see `` part ii , item 8. financial statements and supplementary data , note 13. commitments and contingencies `` in the accompanying notes to the consolidated financial statements for further discussion of the settlement . other one-time costs were approximately $ 0.4 million for the year ended december 31 , 2018 . during the year ended december 31 , 2017 , our deferred income tax expense was increased by $ 5.9 million due to the revaluation of our deferred tax assets as a result of the act . our management believes that the non-gaap financial measures presented facilitate an understanding of our operating performance and provide a more meaningful comparison of our results between periods . our management uses non-gaap financial measures to , among other things , evaluate our ongoing operations in relation to historical results and for internal planning and forecasting purposes . operating expenses , operating income , income tax ( benefit ) expense , net income attributable to heska and basic and diluted earnings per share , adjusted for one-time items , are non-gaap financial measures and should not be relied upon as substitutes for measures calculated in accordance with gaap . impact of inflation in recent years , inflation has not had a significant impact on our operations . liquidity , capital resources and financial condition we believe that adequate liquidity and cash generation is important to the execution of our strategic initiatives . our ability to fund our operations , acquisitions , capital expenditures and product development efforts may depend on our ability to generate cash from operating activities , which is subject to future operating performance , as well as general economic , financial , competitive , legislative , regulatory and other conditions , some of which may be beyond our control . our primary sources of liquidity are our available cash , cash generated from current operations and availability under our credit facility noted below . for the year ended december 31 , 2018 , we had net income of $ 5.9 million and net cash provided by operations of $ 13.3 million . at december 31 , 2018 , we had $ 13.4 million of cash and cash equivalents , working capital of $ 42.0 million and $ 6.0 million outstanding borrowings under our revolving line of credit , discussed below . on july 27 , 2017 , and as subsequently amended in may and december of 2018 ,

net cash provided by operating activities was $ 13.3 million in 2018 , compared to net cash provided by operating activities of $ 10.4 million in 2017 , an increase of approximately $ 2.9 million . net cash provided by operating activities increased due to significant working capital fluctuations such as a $ 19.9 million increase in cash provided by inventories , due to the timing of inventory purchases in 2017 ; a $ 7.5 million increase in cash provided by accrued liabilities , largely due to a preliminary settlement agreement relating to outstanding litigation in the amount of $ 6.75 million which we expect to pay in the first half of 2019 ( see note 13 -commitments and contingencies in our consolidated financial statements included in item 8 of this form 10-k ) ; and a $ 2.8 million increase in cash provided by current and non-current lease receivables due to a lower level of capital lease placements and timing of collections on existing leases . these factors were partially offset by a $ 3.6 million decrease in net income , as well as a $ 15.2 million increase in cash used by the aggregate of accounts receivable , accounts payable , related party balances , deferred revenue and other current assets , due to the timing of collections and payments in the ordinary course of business . non-cash transactions impacting cash provided by operating activities included a $ 11.1 million increase in our deferred tax benefit , net , offset by a $ 2.5 million increase in stock-based compensation . net cash provided by operating activities was $ 10.4 million in 2017 , compared to net cash provided by operating activities of $ 5.9 million in 2016 , an increase of approximately $ 4.6 million .


 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 was $ 13.3 million in 2018 , compared to net cash provided by operating activities of $ 10.4 million in 2017 , an increase of approximately $ 2.9 million . net cash provided by operating activities increased due to significant working capital fluctuations such as a $ 19.9 million increase in cash provided by inventories , due to the timing of inventory purchases in 2017 ; a $ 7.5 million increase in cash provided by accrued liabilities , largely due to a preliminary settlement agreement relating to outstanding litigation in the amount of $ 6.75 million which we expect to pay in the first half of 2019 ( see note 13 -commitments and contingencies in our consolidated financial statements included in item 8 of this form 10-k ) ; and a $ 2.8 million increase in cash provided by current and non-current lease receivables due to a lower level of capital lease placements and timing of collections on existing leases . these factors were partially offset by a $ 3.6 million decrease in net income , as well as a $ 15.2 million increase in cash used by the aggregate of accounts receivable , accounts payable , related party balances , deferred revenue and other current assets , due to the timing of collections and payments in the ordinary course of business . non-cash transactions impacting cash provided by operating activities included a $ 11.1 million increase in our deferred tax benefit , net , offset by a $ 2.5 million increase in stock-based compensation . net cash provided by operating activities was $ 10.4 million in 2017 , compared to net cash provided by operating activities of $ 5.9 million in 2016 , an increase of approximately $ 4.6 million .
```    
 Suspicious Activity Report : million , $ 21.9 million and $ 29.6 million of 2018 , 2017 and 2016 revenue , respectively . digital radiography is the largest product offering in this area , which also includes ultrasound instruments . digital radiography solutions typically consist of a combination of hardware and software placed with a customer , often combined with an ongoing service and support contract . we sell our imaging solutions both in the u.s. and internationally . our experience has been that most of the revenue is generated at the time of sale in this area , in contrast to the point of care diagnostics laboratory placements discussed above where ongoing consumable revenue is often a larger component of economic value as a given instrument is used . other cca revenue , including single use diagnostic and other tests , pharmaceuticals and biologicals , as well as research and development , licensing and royalty revenue , represented $ 28.7 million , $ 28.4 million and $ 29.0 million of our 2018 , 2017 and 2016 revenue , respectively . since items in this area are often single use by their nature , our typical aim is to build customer satisfaction and loyalty for each product , generate repeat annual sales from existing customers and expand our customer base in the future . products in this area are both supplied by third parties and provided by us . major products and services in this area include heartworm diagnostic tests and preventives , and allergy test kits , allergy immunotherapy and testing . of our annual revenue , heartworm produced primarily for private-label accounted for approximately $ 16.8 million in both 2018 and 2017 , and $ 16.7 million in 2016. we consider the cca segment to be our core business and devote most of our management time and other resources to improving the prospects for this segment . maintaining a continuing , reliable and economic supply of products we currently obtain from third parties is critical to our success in this area . virtually all of our sales and marketing expenses occur in the cca segment . the majority of our research and development spending is dedicated to this segment as well . all of our cca products are ultimately sold primarily to or through veterinarians . in many cases , veterinarians will mark up their costs to their customer . the acceptance of our products by veterinarians is critical to our success . cca products are sold directly to end users by us as well as through distribution relationships , such as the sale of kits to conduct blood testing to third party veterinary diagnostic laboratories and independent third party distributors . revenue from direct sales and distribution relationships represented approximately 57 % and 43 % , respectively , of cca 2018 revenue , 58 % and 42 % , respectively , of cca 2017 revenue and 61 % and 39 % , respectively , of cca 2016 revenue . ovp segment the ovp segment includes our approximately 160,000 square foot usda and fda licensed production facility in des moines , iowa . we view this facility as an asset which could allow us to control our cost of goods on any pharmaceuticals and vaccines that we may commercialize in the future . we have increased integration of this facility with our operations elsewhere . for example , virtually all our u.s. inventory , excluding our imaging products , is now stored at this facility and related fulfillment logistics are managed there . cca segment products manufactured at this facility are transferred at cost and are not recorded as revenue for our ovp segment . we view ovp reported revenue as revenue primarily to cover the overhead costs of the facility and to generate incremental cash flow to fund our cca segment . - 33 - historically , a significant portion of our ovp segment 's revenue has been generated from the sale of certain bovine vaccines , which have been sold primarily under the titanium® and masterguard® brands . we have an agreement with eli lilly and company and its affiliates operating through elanco for the production of these vaccines ( the `` elanco agreement `` ) . our ovp segment also produces vaccines and pharmaceuticals for other third parties . critical accounting 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 gaap . 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 . we evaluate our estimates on an ongoing basis . we base our estimates on historical experience and on various assumptions that we believe 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 from these estimates . `` part ii , item 8. note 1 summary of significant accounting policies `` to the consolidated financial statements included in this annual report on form 10-k describes the significant accounting policies used in preparation of these consolidated financial statements . we believe the following critical accounting estimates and assumptions may have a material impact on reported financial condition and operating performance and involve significant levels of judgment to account for highly uncertain matters or are susceptible to significant change . revenue recognition effective january 1 , 2018 , we adopted fasb accounting standards codification ( `` asc `` ) topic 606 , revenue from contracts with customers ( the `` new revenue standard `` ) , using the modified retrospective method for all contracts not completed as of the date of adoption . story_separator_special_tag - 39 - income tax ( benefit ) expense in 2018 , we had total income tax benefit of $ 2.1 million , including approximately $ 1.9 million related to employee share-based payment awards which are recorded in the income statement . in 2017 and 2016 respectively , we had total income tax expense of $ 8.9 million and $ 4.3 million . in 2017 , our deferred income tax expense was increased by $ 5.9 million ( i.e . the write down of deferred tax asset balances and the valuation allowance ) for tax reform legislation and our current income tax expense was reduced by $ 5.5 million for employee share-based payment awards . see `` part ii , item 8. financial statements and supplementary data , note 4. income taxes `` in the accompanying notes to the consolidated financial statements for additional information regarding our income taxes . net income attributable to heska corporation net income attributable to heska corporation was $ 5.9 million in 2018 , compared to net income attributable to heska corporation of $ 10.0 million in 2017 and net income attributable to heska corporation of $ 10.5 million in 2016 . the difference between this line item and `` net income , after equity in losses of unconsolidated affiliates `` is the net income or loss attributable to our minority interest in u.s. imaging , which we purchased on may 31 , 2017. as a result of the purchase , there was no difference between these line items for 2018 . the difference between these line items was a gain of $ 0.5 million in 2017 , and a loss of $ 1.7 million in 2016 . - 40 - non-gaap financial measures the following tables provide a summary of our results for the year ended december 31 , 2018 , after adjusting for one-time non-recurring expenses associated with the pending settlement arrangement ( see `` part ii , item 8. financial statements and supplementary data , note 13. commitments and contingencies `` ) and other legal and consulting fees described elsewhere herein , and our results for the year ended december 31 , 2017 , after adjusting for the impact of the act . the following tables reconcile our adjusted non-gaap financial measures to our most directly comparable as-reported financial measures calculated in accordance with gaap . these adjusted results are non-gaap financial measures that have been included for the reasons discussed below . replace_table_token_6_th replace_table_token_7_th a non-gaap financial measure includes a numerical measure of a company 's financial performance , financial position or cash flows that excludes amounts , or is subject to adjustments that have the effect of excluding amounts , that are included in the most directly comparable measure calculated and presented in accordance with gaap in the statement of income , balance sheet or statement of cash flows ( or equivalent statements ) of the company . the non-gaap financial measures included in the table above exclude the impact of the following one-time items . we exclude these one-time items and the related tax effects as management monitors litigation judgments , settlements and distinct extraordinary items separately from ongoing operations and evaluates ongoing performance without these amounts . - 41 - during the year ended december 31 , 2018 , we recorded a one-time settlement charge of $ 6.75 million and approximately $ 0.3 million in related legal fees in general and administrative expenses , relating to the pending settlement of the shaun fauley complaint filed on march 12 , 2015. see `` part ii , item 8. financial statements and supplementary data , note 13. commitments and contingencies `` in the accompanying notes to the consolidated financial statements for further discussion of the settlement . other one-time costs were approximately $ 0.4 million for the year ended december 31 , 2018 . during the year ended december 31 , 2017 , our deferred income tax expense was increased by $ 5.9 million due to the revaluation of our deferred tax assets as a result of the act . our management believes that the non-gaap financial measures presented facilitate an understanding of our operating performance and provide a more meaningful comparison of our results between periods . our management uses non-gaap financial measures to , among other things , evaluate our ongoing operations in relation to historical results and for internal planning and forecasting purposes . operating expenses , operating income , income tax ( benefit ) expense , net income attributable to heska and basic and diluted earnings per share , adjusted for one-time items , are non-gaap financial measures and should not be relied upon as substitutes for measures calculated in accordance with gaap . impact of inflation in recent years , inflation has not had a significant impact on our operations . liquidity , capital resources and financial condition we believe that adequate liquidity and cash generation is important to the execution of our strategic initiatives . our ability to fund our operations , acquisitions , capital expenditures and product development efforts may depend on our ability to generate cash from operating activities , which is subject to future operating performance , as well as general economic , financial , competitive , legislative , regulatory and other conditions , some of which may be beyond our control . our primary sources of liquidity are our available cash , cash generated from current operations and availability under our credit facility noted below . for the year ended december 31 , 2018 , we had net income of $ 5.9 million and net cash provided by operations of $ 13.3 million . at december 31 , 2018 , we had $ 13.4 million of cash and cash equivalents , working capital of $ 42.0 million and $ 6.0 million outstanding borrowings under our revolving line of credit , discussed below . on july 27 , 2017 , and as subsequently amended in may and december of 2018 ,

