our business generates revenue from the following sources : ( i ) franchise revenues , consisting primarily of royalties based on a percentage of sales reported by franchise restaurants and franchise fees paid by franchisees ; ( ii ) property revenues from properties we lease or sublease to franchisees ; and ( iii ) sales at restaurants owned by us ( “ company restaurants ” ) . in addition , our tim hortons business generates revenue from sales to franchisees related to our supply chain operations , including manufacturing , procurement , warehousing and distribution , as well as sales to retailers . 29 recent events and factors affecting comparability transition to new lease accounting standard we transitioned to accounting standards codification topic 842 , leases ( “ asc 842 ” ) , effective january 1 , 2019 on a modified retrospective basis using the effective date transition method . our consolidated financial statements reflect the application of asc 842 guidance beginning in 2019 , while our consolidated financial statements for prior periods were prepared under the guidance of a previously applicable accounting standard . the most significant effects of this transition that affect comparability of our results of operations between 2019 and 2018 include the following : beginning on january 1 , 2019 , we record lease income and lease cost on a gross basis for lessee reimbursements of costs such as property taxes and maintenance when we are the lessor in the lease . although there was no net impact to our consolidated statement of operations from this change , the presentation resulted in total increases to both franchise and property revenues and franchise and property expenses of $ 130 million ( $ 85 million related to our th segment , $ 43 million related to our bk segment and $ 2 million related to our plk segment ) during 2019 , compared to 2018 and 2017 , when such amounts were recorded on a net basis . as described in note 10 , leases , to the accompanying audited consolidated financial statements , the transition provisions of asc 842 required the reclassification of favorable lease assets and unfavorable lease liabilities where we are the lessee in the underlying lease to the right-of-use ( “ rou ” ) asset recorded for the underlying lease . as a result of this reclassification , the amortization period for certain favorable lease assets and unfavorable lease liabilities was reduced , resulting in a $ 5 million net increase in non-cash amortization expense during 2019 compared to 2018 and 2017. favorable lease assets and unfavorable lease liabilities associated with leases where we are the lessor were not impacted by our transition to asc 842. please refer to note 10 , leases , to the accompanying audited consolidated financial statements for further details of the effects of this change in accounting principle . transition to new revenue recognition accounting standard we transitioned to accounting standards codification topic 606 , revenue from contracts with customers ( “ asc 606 ” ) , effective january 1 , 2018 using the modified retrospective method . our consolidated financial statements for 2019 and 2018 reflect the application of asc 606 guidance , while our consolidated financial statements for 2017 were prepared under the guidance of previously applicable accounting standards . tax reform in december 2017 , the u.s. government enacted comprehensive tax legislation commonly referred to as the tax cuts and jobs act ( the “ tax act ” ) that significantly revised the u.s. tax code generally effective january 1 , 2018 by , among other changes , lowering the corporate income tax rate from 35 % to 21 % , limiting deductibility of interest expense and performance based incentive compensation and implementing a modified territorial tax system . as a canadian entity , we generally would be classified as a foreign entity ( and , therefore , a non-u.s. tax resident ) under general rules of u.s. federal income taxation . however , we have subsidiaries subject to u.s. federal income taxation and therefore the tax act impacted our consolidated results of operations in 2019 , 2018 and 2017 , and is expected to continue to impact our consolidated results of operations in future periods . the impacts to our consolidated statements of operations consist of the following ( “ tax act impact ” ) : a provisional benefit of $ 420 million recorded in our provision from income taxes for 2017 and a final favorable adjustment of $ 9 million recorded for 2018 , as a result of the remeasurement of net deferred tax liabilities . provisional charges of $ 103 million recorded in 2017 and a final favorable adjustment of $ 3 million recorded in 2018 , related to certain deductions allowed to be carried forward before the tax act , which potentially may not be carried forward and deductible under the tax act . a provisional estimate for a one-time transitional repatriation tax on unremitted foreign earnings ( the “ transition tax ” ) of $ 119 million recorded in 2017 , most of which had been previously accrued with respect to certain 30 undistributed foreign earnings , and a final favorable adjustment of $ 15 million ( primarily related to utilization of foreign tax credits ) recorded in 2018. no adjustment to these charges and benefits was made in 2019. however , the provisions of the tax act are complex and likely will be the subject of further regulatory and administrative guidance , which we will evaluate as released and may require us to record an additional charge or benefit . story_separator_special_tag the change in our effective income tax rate to 17.2 % in 2018 from ( 12.1 ) % in 2017 is primarily due to the impact of certain aspects of the tax act , realignment of certain intercompany financings and changes in foreign currency exchange rates , partially offset by the release of a valuation allowance related to use of capital losses . net income we reported net income of $ 1,111 million for 2019 compared to net income of $ 1,144 million for 2018. the decrease in net income is primarily due to a $ 103 million increase in income tax expense , a $ 23 million loss on early extinguishment of debt in the current year , a $ 19 million increase in share-based compensation and non-cash incentive compensation expense , a $ 14 million unfavorable change from the impact of equity method investments , a $ 6 million increase in corporate restructuring and tax advisory fees , and a $ 5 million decrease in th segment income . these factors were partially offset by a $ 66 million increase in bk segment income , a $ 31 million increase in plk segment income , an $ 18 million favorable change in the results from other operating expenses ( income ) , net , a $ 14 million decrease in office centralization and relocation costs and the non-recurrence of $ 10 million of plk transaction costs incurred in the prior period . amounts above include a total unfavorable fx impact to net income of $ 39 million . we reported net income of $ 1,144 million for 2018 compared to net income of $ 1,235 million for 2017. the decrease in net income is primarily due to a $ 372 million increase in income tax expense , a $ 23 million increase in interest expense , net , a $ 23 million increase in corporate restructuring and tax advisory fees , the inclusion of $ 20 million of office centralization and relocation costs , and a $ 9 million decrease in th segment income . these factors were partially offset by the non-recurrence of $ 122 million of loss on early extinguishment of debt recognized in the prior period , a $ 101 million favorable change in results from other operating expenses ( income ) , net , a $ 52 million decrease in plk transaction costs , a $ 50 million increase in plk segment income , primarily as a result of including plk for a full year in 2018 compared to nine months in 2017 , and a $ 25 million increase in bk segment income . amounts above include a total unfavorable fx impact to net income of $ 26 million . non-gaap reconciliations the table below contains information regarding ebitda and adjusted ebitda , which are non-gaap measures . these non-gaap measures do not have a standardized meaning under u.s. gaap and may differ from similar captioned measures of other companies in our industry . we believe that these non-gaap measures are useful to investors in assessing our operating performance , as it provides them with the same tools that management uses to evaluate our performance and is responsive to questions we receive from both investors and analysts . by disclosing these non-gaap measures , we intend to provide investors with a consistent comparison of our operating results and trends for the periods presented . ebitda is defined as earnings ( net income or loss ) before interest expense , net , loss on early extinguishment of debt , income tax ( benefit ) expense , and depreciation and amortization and is used by management to measure operating performance of the business . adjusted ebitda is defined as ebitda excluding the non-cash impact of share-based compensation and non-cash incentive compensation expense and ( income ) loss from equity method investments , net of cash distributions received from equity method investments , as well as other operating expenses ( income ) , net . other specifically identified costs associated with non-recurring projects are also excluded from adjusted ebitda , including plk transaction costs , corporate restructuring and tax advisory fees , and office centralization and relocation costs . adjusted ebitda is used by management to measure operating performance of the business , excluding these non-cash and other specifically identified items that management believes are not 37 relevant to management 's assessment of operating performance or the performance of an acquired business . adjusted ebitda , as defined above , also represents our measure of segment income for each of our three operating segments . replace_table_token_14_th ( a ) represents ( i ) ( income ) loss from equity method investments and ( ii ) cash distributions received from our equity method investments . cash distributions received from our equity method investments are included in segment income . segment income is affected by the application of asc 606 beginning january 1 , 2018 , including the deferral of initial and renewal franchise fees and the timing of advertising fund related revenues and expenses . the increase in adjusted ebitda for 2019 and 2018 reflects the increases in segment income in our bk and plk segments , partially offset by decreases in our th segment . the increase in plk segment for 2018 is primarily a result of including plk for a full year in 2018 compared to nine months in 2017. the increase in ebitda for 2019 is primarily due to an increase in segment income in our bk and plk segments , favorable results from other operating expenses ( income ) , net in the current period , a decrease in office centralization and relocation costs , and the non-recurrence of plk transaction costs , partially offset by an increase in share-based compensation and non-cash incentive compensation expense , unfavorable results from the impact of equity method investments , an increase in corporate restructuring and tax advisory fees , and a decrease in segment income

debt instruments and debt service requirements as of december 31 , 2019 , our long-term debt consists primarily of borrowings under our credit facilities , amounts outstanding under our 2017 4.25 % senior notes , 2019 3.875 % senior notes , 2017 5.00 % senior notes , 2019 4.375 % senior notes and th facility ( each as defined below ) , and obligations under finance leases . for further information about our long-term debt , see note 9 to the accompanying consolidated financial statements included in part ii , item 8 `` financial statements and supplementary data '' of our annual report . credit facilities on september 6 , 2019 , two of our subsidiaries ( the `` borrowers '' ) entered into a fourth incremental facility amendment ( the `` fourth incremental amendment '' ) to the credit agreement governing our senior secured term loan facilities ( the `` term loan facilities '' ) and our senior secured revolving credit facility ( including revolving loans , swingline loans and letters of credit ) ( the `` revolving credit facility '' and together with the term loan facilities , the `` credit facilities '' ) . under the fourth incremental amendment , ( i ) we obtained a new term loan in the aggregate principal amount of $ 750 million ( the `` term loan a '' ) with a maturity date of october 7 , 2024 ( subject to earlier maturity in specified circumstances ) , ( ii ) the interest rate applicable to the term loan a and revolving credit facility is , at our option , either ( a ) a base rate , subject to a floor of 1.00 % , plus an applicable margin varying from 0.00 % to 0.50 % , or ( b ) a eurocurrency rate , subject to a floor of 0.00 % , plus an applicable margin varying between 0.75 % and 1.50 % , in each case , determined by reference to a net first lien leverage based 39 pricing grid , ( iii ) the aggregate principal amount of the commitments under our revolving


 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.
     ```debt instruments and debt service requirements as of december 31 , 2019 , our long-term debt consists primarily of borrowings under our credit facilities , amounts outstanding under our 2017 4.25 % senior notes , 2019 3.875 % senior notes , 2017 5.00 % senior notes , 2019 4.375 % senior notes and th facility ( each as defined below ) , and obligations under finance leases . for further information about our long-term debt , see note 9 to the accompanying consolidated financial statements included in part ii , item 8 `` financial statements and supplementary data '' of our annual report . credit facilities on september 6 , 2019 , two of our subsidiaries ( the `` borrowers '' ) entered into a fourth incremental facility amendment ( the `` fourth incremental amendment '' ) to the credit agreement governing our senior secured term loan facilities ( the `` term loan facilities '' ) and our senior secured revolving credit facility ( including revolving loans , swingline loans and letters of credit ) ( the `` revolving credit facility '' and together with the term loan facilities , the `` credit facilities '' ) . under the fourth incremental amendment , ( i ) we obtained a new term loan in the aggregate principal amount of $ 750 million ( the `` term loan a '' ) with a maturity date of october 7 , 2024 ( subject to earlier maturity in specified circumstances ) , ( ii ) the interest rate applicable to the term loan a and revolving credit facility is , at our option , either ( a ) a base rate , subject to a floor of 1.00 % , plus an applicable margin varying from 0.00 % to 0.50 % , or ( b ) a eurocurrency rate , subject to a floor of 0.00 % , plus an applicable margin varying between 0.75 % and 1.50 % , in each case , determined by reference to a net first lien leverage based 39 pricing grid , ( iii ) the aggregate principal amount of the commitments under our revolving
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 Suspicious Activity Report : our business generates revenue from the following sources : ( i ) franchise revenues , consisting primarily of royalties based on a percentage of sales reported by franchise restaurants and franchise fees paid by franchisees ; ( ii ) property revenues from properties we lease or sublease to franchisees ; and ( iii ) sales at restaurants owned by us ( “ company restaurants ” ) . in addition , our tim hortons business generates revenue from sales to franchisees related to our supply chain operations , including manufacturing , procurement , warehousing and distribution , as well as sales to retailers . 29 recent events and factors affecting comparability transition to new lease accounting standard we transitioned to accounting standards codification topic 842 , leases ( “ asc 842 ” ) , effective january 1 , 2019 on a modified retrospective basis using the effective date transition method . our consolidated financial statements reflect the application of asc 842 guidance beginning in 2019 , while our consolidated financial statements for prior periods were prepared under the guidance of a previously applicable accounting standard . the most significant effects of this transition that affect comparability of our results of operations between 2019 and 2018 include the following : beginning on january 1 , 2019 , we record lease income and lease cost on a gross basis for lessee reimbursements of costs such as property taxes and maintenance when we are the lessor in the lease . although there was no net impact to our consolidated statement of operations from this change , the presentation resulted in total increases to both franchise and property revenues and franchise and property expenses of $ 130 million ( $ 85 million related to our th segment , $ 43 million related to our bk segment and $ 2 million related to our plk segment ) during 2019 , compared to 2018 and 2017 , when such amounts were recorded on a net basis . as described in note 10 , leases , to the accompanying audited consolidated financial statements , the transition provisions of asc 842 required the reclassification of favorable lease assets and unfavorable lease liabilities where we are the lessee in the underlying lease to the right-of-use ( “ rou ” ) asset recorded for the underlying lease . as a result of this reclassification , the amortization period for certain favorable lease assets and unfavorable lease liabilities was reduced , resulting in a $ 5 million net increase in non-cash amortization expense during 2019 compared to 2018 and 2017. favorable lease assets and unfavorable lease liabilities associated with leases where we are the lessor were not impacted by our transition to asc 842. please refer to note 10 , leases , to the accompanying audited consolidated financial statements for further details of the effects of this change in accounting principle . transition to new revenue recognition accounting standard we transitioned to accounting standards codification topic 606 , revenue from contracts with customers ( “ asc 606 ” ) , effective january 1 , 2018 using the modified retrospective method . our consolidated financial statements for 2019 and 2018 reflect the application of asc 606 guidance , while our consolidated financial statements for 2017 were prepared under the guidance of previously applicable accounting standards . tax reform in december 2017 , the u.s. government enacted comprehensive tax legislation commonly referred to as the tax cuts and jobs act ( the “ tax act ” ) that significantly revised the u.s. tax code generally effective january 1 , 2018 by , among other changes , lowering the corporate income tax rate from 35 % to 21 % , limiting deductibility of interest expense and performance based incentive compensation and implementing a modified territorial tax system . as a canadian entity , we generally would be classified as a foreign entity ( and , therefore , a non-u.s. tax resident ) under general rules of u.s. federal income taxation . however , we have subsidiaries subject to u.s. federal income taxation and therefore the tax act impacted our consolidated results of operations in 2019 , 2018 and 2017 , and is expected to continue to impact our consolidated results of operations in future periods . the impacts to our consolidated statements of operations consist of the following ( “ tax act impact ” ) : a provisional benefit of $ 420 million recorded in our provision from income taxes for 2017 and a final favorable adjustment of $ 9 million recorded for 2018 , as a result of the remeasurement of net deferred tax liabilities . provisional charges of $ 103 million recorded in 2017 and a final favorable adjustment of $ 3 million recorded in 2018 , related to certain deductions allowed to be carried forward before the tax act , which potentially may not be carried forward and deductible under the tax act . a provisional estimate for a one-time transitional repatriation tax on unremitted foreign earnings ( the “ transition tax ” ) of $ 119 million recorded in 2017 , most of which had been previously accrued with respect to certain 30 undistributed foreign earnings , and a final favorable adjustment of $ 15 million ( primarily related to utilization of foreign tax credits ) recorded in 2018. no adjustment to these charges and benefits was made in 2019. however , the provisions of the tax act are complex and likely will be the subject of further regulatory and administrative guidance , which we will evaluate as released and may require us to record an additional charge or benefit . story_separator_special_tag the change in our effective income tax rate to 17.2 % in 2018 from ( 12.1 ) % in 2017 is primarily due to the impact of certain aspects of the tax act , realignment of certain intercompany financings and changes in foreign currency exchange rates , partially offset by the release of a valuation allowance related to use of capital losses . net income we reported net income of $ 1,111 million for 2019 compared to net income of $ 1,144 million for 2018. the decrease in net income is primarily due to a $ 103 million increase in income tax expense , a $ 23 million loss on early extinguishment of debt in the current year , a $ 19 million increase in share-based compensation and non-cash incentive compensation expense , a $ 14 million unfavorable change from the impact of equity method investments , a $ 6 million increase in corporate restructuring and tax advisory fees , and a $ 5 million decrease in th segment income . these factors were partially offset by a $ 66 million increase in bk segment income , a $ 31 million increase in plk segment income , an $ 18 million favorable change in the results from other operating expenses ( income ) , net , a $ 14 million decrease in office centralization and relocation costs and the non-recurrence of $ 10 million of plk transaction costs incurred in the prior period . amounts above include a total unfavorable fx impact to net income of $ 39 million . we reported net income of $ 1,144 million for 2018 compared to net income of $ 1,235 million for 2017. the decrease in net income is primarily due to a $ 372 million increase in income tax expense , a $ 23 million increase in interest expense , net , a $ 23 million increase in corporate restructuring and tax advisory fees , the inclusion of $ 20 million of office centralization and relocation costs , and a $ 9 million decrease in th segment income . these factors were partially offset by the non-recurrence of $ 122 million of loss on early extinguishment of debt recognized in the prior period , a $ 101 million favorable change in results from other operating expenses ( income ) , net , a $ 52 million decrease in plk transaction costs , a $ 50 million increase in plk segment income , primarily as a result of including plk for a full year in 2018 compared to nine months in 2017 , and a $ 25 million increase in bk segment income . amounts above include a total unfavorable fx impact to net income of $ 26 million . non-gaap reconciliations the table below contains information regarding ebitda and adjusted ebitda , which are non-gaap measures . these non-gaap measures do not have a standardized meaning under u.s. gaap and may differ from similar captioned measures of other companies in our industry . we believe that these non-gaap measures are useful to investors in assessing our operating performance , as it provides them with the same tools that management uses to evaluate our performance and is responsive to questions we receive from both investors and analysts . by disclosing these non-gaap measures , we intend to provide investors with a consistent comparison of our operating results and trends for the periods presented . ebitda is defined as earnings ( net income or loss ) before interest expense , net , loss on early extinguishment of debt , income tax ( benefit ) expense , and depreciation and amortization and is used by management to measure operating performance of the business . adjusted ebitda is defined as ebitda excluding the non-cash impact of share-based compensation and non-cash incentive compensation expense and ( income ) loss from equity method investments , net of cash distributions received from equity method investments , as well as other operating expenses ( income ) , net . other specifically identified costs associated with non-recurring projects are also excluded from adjusted ebitda , including plk transaction costs , corporate restructuring and tax advisory fees , and office centralization and relocation costs . adjusted ebitda is used by management to measure operating performance of the business , excluding these non-cash and other specifically identified items that management believes are not 37 relevant to management 's assessment of operating performance or the performance of an acquired business . adjusted ebitda , as defined above , also represents our measure of segment income for each of our three operating segments . replace_table_token_14_th ( a ) represents ( i ) ( income ) loss from equity method investments and ( ii ) cash distributions received from our equity method investments . cash distributions received from our equity method investments are included in segment income . segment income is affected by the application of asc 606 beginning january 1 , 2018 , including the deferral of initial and renewal franchise fees and the timing of advertising fund related revenues and expenses . the increase in adjusted ebitda for 2019 and 2018 reflects the increases in segment income in our bk and plk segments , partially offset by decreases in our th segment . the increase in plk segment for 2018 is primarily a result of including plk for a full year in 2018 compared to nine months in 2017. the increase in ebitda for 2019 is primarily due to an increase in segment income in our bk and plk segments , favorable results from other operating expenses ( income ) , net in the current period , a decrease in office centralization and relocation costs , and the non-recurrence of plk transaction costs , partially offset by an increase in share-based compensation and non-cash incentive compensation expense , unfavorable results from the impact of equity method investments , an increase in corporate restructuring and tax advisory fees , and a decrease in segment income

