as a result , the company recognized currency related losses of $ 474,000 during 2016. in 2015 , the company recognized other expense of only $ 12,000. income tax expense . income tax expense was $ 6,975,000 for twelve months of 2016 , compared to $ 7,603,000 for the same period in 2015 , decreasing by $ 628,000 ( 8.3 % ) , largely in correlation with the change in income before taxes . the company 's effective tax rate in 2016 approximates the 2015 rate and does not differ materially from expected statutory rates . - 19 - twelve-months ended december 31 , 2015 vs. december 31 , 2014 the company reported comparative results from operations for the twelve-month period ended december 31 , 2015 and 2014 as follows : replace_table_token_6_th net sales . the company 's sales for the full year of 2015 were $ 93,278,000 , ending $ 8,059,000 ( 9.5 % ) above 2014 sales of $ 85,219,000. the increase in net sales between periods was the mostly the result of an increase in unit volume . net sales during 2015 were also aided by a small increase in selling prices implemented in late 2014 to combat an anticipated rise in raw material costs from the company 's vendors . conversely , the company experienced a deflation in net sales due to an increase in sales deductions , largely related to promotional incentives , as customers were able to achieve higher growth tiers . gross profit . the company 's gross profit margins have increased between the two periods , being 61.3 % and 58.7 % for the twelve-months ended december 31 , 2015 and 2014 , respectively . the improvement resulted from the company 's ability to find various manufacturing related efficiencies , along with the sales price actions noted above to supersede an anticipated increase in the company 's core raw material costs . selling expenses . selling expenses consist primarily of employee salaries and associated overhead costs , commissions , and the cost of marketing programs such as advertising , trade shows and related communication costs , and freight . selling expense was $ 15,252,000 and $ 14,109,000 for the twelve-months ended december 31 , 2015 and 2014 , respectively , representing an increase of $ 1,143,000. although no particular item was the main contributor or represented a significant increase on its own , there were a few components that were higher than others and make up the majority of the difference . commissions and freight increased compared to last year , largely in relation with the increase in sales . advertising costs increased due to various campaigns , and the annual sales meeting was more expensive largely due to the increased size of the event associated with company 's 40 th anniversary . selling expense as a percentage of net sales was mostly in-line with the prior year , being 16.4 % for 2015 , and 16.6 % in 2014. general and administrative expenses . general and administrative expenses consist primarily of employee salaries , benefits for administrative , executive and finance personnel , legal and accounting , insurance , and corporate general and administrative services . general and administrative expenses were $ 15,707,000 and $ 12,351,000 for 2015 and 2014 , respectively , increasing $ 3,356,000 between periods . the majority of the change pertained to a $ 2,639,000 increase in legal and insurance related expenses primarily associated with product liability claims and coverage . while the overall pace of claims has softened , there were a few claims that required a heightened defense , which inflated the expense for the year . staffing related expenses also increased , mostly related to incentive compensation earned in connection with the strong profits generated during the year . as a percentage of sales , general and administrative expenses increased , being 16.8 % in 2015 and 14.5 % in 2014. engineering expense . engineering expenses consist of costs associated with the development of new products , and costs related to enhancements of existing products and manufacturing processes . engineering expenses have decreased $ 237,000 between periods , as they were $ 2,684,000 and $ 2,921,000 for the twelve-months ended december 31 , 2015 and 2014 , respectively . engineering expenses as a percentage of sales were 2.9 % in 2015 and 3.4 % in 2014. operating profit . reflecting all of the factors mentioned above , operating profits increased $ 2,858,000 or 13.8 % , ending with a profit of $ 23,503,000 for 2015 , compared to $ 20,645,000 in 2014. interest income . interest income is earned on cash investments , and interest expense is incurred at times when the company has debt amounts outstanding on its line of credit . there was $ 73,000 and $ 36,000 of interest income recorded during 2015 and 2014 . - 20 - other expense . other expense primarily consists of foreign currency exchange gains ( losses ) on transactions with our united kingdom subsidiaries . for the year , there was expense of $ 12,000 in 2015 , and $ 82,000 in 2014 , both largely the result of a weakened british pound . income tax expense . income tax expense was $ 7,603,000 in 2015 , compared to $ 6,994,000 for the same period in 2014 , increasing by $ 609,000 largely in correlation with the change in income before taxes . the company 's effective tax rate in 2015 was approximately 32 % of pretax income compared to 34 % in 2014. the rates in both years do not differ materially from expected statutory rates , based upon the jurisdictions in which the income was earned . commitments and contingencies see note 11 to the company 's financial statements for a detailed description of commitments and contingencies . story_separator_special_tag valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs . the standard creates a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows : level 1 inputs are quoted prices ( unadjusted ) in active markets for identical assets or liabilities ; level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability , either directly or indirectly ; and level 3 inputs are unobservable inputs that reflect the company 's own assumptions about the assumptions market participants would use in pricing the asset or liability . the company relies on its actively traded share value – a level 1 input – in determining the fair value of the reporting unit in its annual impairment test as described in the fasb asc topic 350 , intangibles - goodwill and other . - 22 - earnings per common share basic earnings per share have been computed using the weighted-average number of common shares outstanding . for the periods presented , there are no dilutive securities . consequently , basic and dilutive earnings per share are the same . currency translation assets and liabilities denominated in foreign currencies are translated into u.s. dollars at exchange rates prevailing on the balance sheet dates . the statements of operations are translated into u.s. dollars at average exchange rates for the period . adjustments resulting from the translation of financial statements are excluded from the determination of income and are accumulated in a separate component of shareholders ' equity . exchange gains and losses resulting from foreign currency transactions are included in the statements of operations ( other income ( expense ) ) in the period in which they occur . income taxes the company accounts for tax liabilities in accordance with asc topic 740 , income taxes . under this method the company recorded tax expense , related deferred taxes and tax benefits , and uncertainties in tax positions . deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . the effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that includes the enactment date . a valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the company is able to realize the benefit , or that future deductibility is uncertain . also , in accordance with fasb asc topic 740 , the company had a reserve for uncertainties in tax positions of $ 0 at december 31 , 2016 , and $ 110,000 at december 31 , 2015. these reserves are reviewed each quarter . story_separator_special_tag serif ; margin : 0 ; text-indent : 0.5in `` > in july 2015 , the fasb issued asu 2015-11 , simplifying the measurement of inventory ( topic 330 ) . under this asu , inventory will be measured at the “ lower of cost and net realizable value ” and options that currently exist for “ market value ” will be eliminated . the asu defines net realizable value as the “ estimated selling prices in the ordinary course of business , less reasonably predictable costs of completion , disposal , and transportation . ” no other changes were made to the current guidance on inventory measurement . asu 2015-11 is effective for interim and annual periods beginning after december 15 , 2016. early application is permitted and should be applied prospectively . the company has evaluated the provisions of this statement , and concluded that the adoption of asu 2015-11 will not have a material impact on the company 's financial position or results of operations . in february 2016 , the fasb issued asu 2016-02 , leases ( topic 842 ) . under this asu , lessees are required to recognize right-of-use assets and lease liabilities for all leases not considered short-term leases . by definition , a short-term lease is one in which : ( a ) the lease term is 12 months or less and ( b ) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise . for short-term leases , lessees may elect an accounting policy by class of underlying asset under which right-of-use assets and lease liabilities are not recognized and lease payments are generally recognized as expense over the lease term on a straight-line basis . this change will result in lessees recognizing right-of-use assets and lease liabilities for most leases currently accounted for as operating leases under the legacy lease accounting guidance . asu 2016-02 is effective for interim and annual periods beginning after december 15 , 2018. early adoption is permitted . the company is evaluating the provisions of this statement , including which period to adopt , and has not determined what impact the adoption of asu 2016-02 will have on the company 's financial position or results of operations . - 24 - off-balance sheet obligations or arrangements none . tabular disclosure of contractual obligations and off-balance sheet arrangements contractual obligation and commercial commitments the company 's primary contractual obligations as of december 31 , 2016 are summarized in the following table and are more fully explained in notes to the consolidated financial statements . replace_table_token_7_th the company is obligated to make payments related to a deferred compensation plan , as detailed in note 11 , commitments and contingencies . the timing of all of these payments are currently not known as

liquidity and capital resources historically , the company 's primary cash needs have been related to working capital items , which the company has largely funded through cash generated from operations . with regards to liquidity and capital resources , the company had a cash balance of $ 35,318,000 at december 31 , 2016 , and also has the full use of a $ 15,000,000 line of credit available with santander bank , as discussed in detail in note 5. at december 31 , 2015 , the company had cash of $ 30,152,000. operating activities cash provided by operating activities is net income adjusted for certain non-cash items and changes in certain assets and liabilities , such as those included in working capital . for 2016 , the company 's cash provided from operating activities was $ 14,758,000 , compared to $ 13,250,000 of cash provided during 2015 , thus increasing by $ 1,508,000 between periods . with regards to creating the generation of cash , it was recognized that the timing of accounts receivable cash collections was accelerated , and there was also a decrease in inventory purchases . these items were partially offset by the posting of security to proceed with further hearings related to the company 's 2010 pennsylvania claim , which is under appeal ( see note 11 , commitments and contingencies of the notes to the consolidated financial statements ) , and there was an increase in disbursements of sales incentives as more customers were able to achieve growth tiers in 2015 , enabling greater payouts in 2016. as a general trend ,the company tends to deplete cash early in the year , as significant payments are typically made for accrued promotional incentives , incentive compensation , and taxes .


 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.
     ```liquidity and capital resources historically , the company 's primary cash needs have been related to working capital items , which the company has largely funded through cash generated from operations . with regards to liquidity and capital resources , the company had a cash balance of $ 35,318,000 at december 31 , 2016 , and also has the full use of a $ 15,000,000 line of credit available with santander bank , as discussed in detail in note 5. at december 31 , 2015 , the company had cash of $ 30,152,000. operating activities cash provided by operating activities is net income adjusted for certain non-cash items and changes in certain assets and liabilities , such as those included in working capital . for 2016 , the company 's cash provided from operating activities was $ 14,758,000 , compared to $ 13,250,000 of cash provided during 2015 , thus increasing by $ 1,508,000 between periods . with regards to creating the generation of cash , it was recognized that the timing of accounts receivable cash collections was accelerated , and there was also a decrease in inventory purchases . these items were partially offset by the posting of security to proceed with further hearings related to the company 's 2010 pennsylvania claim , which is under appeal ( see note 11 , commitments and contingencies of the notes to the consolidated financial statements ) , and there was an increase in disbursements of sales incentives as more customers were able to achieve growth tiers in 2015 , enabling greater payouts in 2016. as a general trend ,the company tends to deplete cash early in the year , as significant payments are typically made for accrued promotional incentives , incentive compensation , and taxes .
```    
 Suspicious Activity Report : as a result , the company recognized currency related losses of $ 474,000 during 2016. in 2015 , the company recognized other expense of only $ 12,000. income tax expense . income tax expense was $ 6,975,000 for twelve months of 2016 , compared to $ 7,603,000 for the same period in 2015 , decreasing by $ 628,000 ( 8.3 % ) , largely in correlation with the change in income before taxes . the company 's effective tax rate in 2016 approximates the 2015 rate and does not differ materially from expected statutory rates . - 19 - twelve-months ended december 31 , 2015 vs. december 31 , 2014 the company reported comparative results from operations for the twelve-month period ended december 31 , 2015 and 2014 as follows : replace_table_token_6_th net sales . the company 's sales for the full year of 2015 were $ 93,278,000 , ending $ 8,059,000 ( 9.5 % ) above 2014 sales of $ 85,219,000. the increase in net sales between periods was the mostly the result of an increase in unit volume . net sales during 2015 were also aided by a small increase in selling prices implemented in late 2014 to combat an anticipated rise in raw material costs from the company 's vendors . conversely , the company experienced a deflation in net sales due to an increase in sales deductions , largely related to promotional incentives , as customers were able to achieve higher growth tiers . gross profit . the company 's gross profit margins have increased between the two periods , being 61.3 % and 58.7 % for the twelve-months ended december 31 , 2015 and 2014 , respectively . the improvement resulted from the company 's ability to find various manufacturing related efficiencies , along with the sales price actions noted above to supersede an anticipated increase in the company 's core raw material costs . selling expenses . selling expenses consist primarily of employee salaries and associated overhead costs , commissions , and the cost of marketing programs such as advertising , trade shows and related communication costs , and freight . selling expense was $ 15,252,000 and $ 14,109,000 for the twelve-months ended december 31 , 2015 and 2014 , respectively , representing an increase of $ 1,143,000. although no particular item was the main contributor or represented a significant increase on its own , there were a few components that were higher than others and make up the majority of the difference . commissions and freight increased compared to last year , largely in relation with the increase in sales . advertising costs increased due to various campaigns , and the annual sales meeting was more expensive largely due to the increased size of the event associated with company 's 40 th anniversary . selling expense as a percentage of net sales was mostly in-line with the prior year , being 16.4 % for 2015 , and 16.6 % in 2014. general and administrative expenses . general and administrative expenses consist primarily of employee salaries , benefits for administrative , executive and finance personnel , legal and accounting , insurance , and corporate general and administrative services . general and administrative expenses were $ 15,707,000 and $ 12,351,000 for 2015 and 2014 , respectively , increasing $ 3,356,000 between periods . the majority of the change pertained to a $ 2,639,000 increase in legal and insurance related expenses primarily associated with product liability claims and coverage . while the overall pace of claims has softened , there were a few claims that required a heightened defense , which inflated the expense for the year . staffing related expenses also increased , mostly related to incentive compensation earned in connection with the strong profits generated during the year . as a percentage of sales , general and administrative expenses increased , being 16.8 % in 2015 and 14.5 % in 2014. engineering expense . engineering expenses consist of costs associated with the development of new products , and costs related to enhancements of existing products and manufacturing processes . engineering expenses have decreased $ 237,000 between periods , as they were $ 2,684,000 and $ 2,921,000 for the twelve-months ended december 31 , 2015 and 2014 , respectively . engineering expenses as a percentage of sales were 2.9 % in 2015 and 3.4 % in 2014. operating profit . reflecting all of the factors mentioned above , operating profits increased $ 2,858,000 or 13.8 % , ending with a profit of $ 23,503,000 for 2015 , compared to $ 20,645,000 in 2014. interest income . interest income is earned on cash investments , and interest expense is incurred at times when the company has debt amounts outstanding on its line of credit . there was $ 73,000 and $ 36,000 of interest income recorded during 2015 and 2014 . - 20 - other expense . other expense primarily consists of foreign currency exchange gains ( losses ) on transactions with our united kingdom subsidiaries . for the year , there was expense of $ 12,000 in 2015 , and $ 82,000 in 2014 , both largely the result of a weakened british pound . income tax expense . income tax expense was $ 7,603,000 in 2015 , compared to $ 6,994,000 for the same period in 2014 , increasing by $ 609,000 largely in correlation with the change in income before taxes . the company 's effective tax rate in 2015 was approximately 32 % of pretax income compared to 34 % in 2014. the rates in both years do not differ materially from expected statutory rates , based upon the jurisdictions in which the income was earned . commitments and contingencies see note 11 to the company 's financial statements for a detailed description of commitments and contingencies . story_separator_special_tag valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs . the standard creates a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows : level 1 inputs are quoted prices ( unadjusted ) in active markets for identical assets or liabilities ; level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability , either directly or indirectly ; and level 3 inputs are unobservable inputs that reflect the company 's own assumptions about the assumptions market participants would use in pricing the asset or liability . the company relies on its actively traded share value – a level 1 input – in determining the fair value of the reporting unit in its annual impairment test as described in the fasb asc topic 350 , intangibles - goodwill and other . - 22 - earnings per common share basic earnings per share have been computed using the weighted-average number of common shares outstanding . for the periods presented , there are no dilutive securities . consequently , basic and dilutive earnings per share are the same . currency translation assets and liabilities denominated in foreign currencies are translated into u.s. dollars at exchange rates prevailing on the balance sheet dates . the statements of operations are translated into u.s. dollars at average exchange rates for the period . adjustments resulting from the translation of financial statements are excluded from the determination of income and are accumulated in a separate component of shareholders ' equity . exchange gains and losses resulting from foreign currency transactions are included in the statements of operations ( other income ( expense ) ) in the period in which they occur . income taxes the company accounts for tax liabilities in accordance with asc topic 740 , income taxes . under this method the company recorded tax expense , related deferred taxes and tax benefits , and uncertainties in tax positions . deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . the effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that includes the enactment date . a valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the company is able to realize the benefit , or that future deductibility is uncertain . also , in accordance with fasb asc topic 740 , the company had a reserve for uncertainties in tax positions of $ 0 at december 31 , 2016 , and $ 110,000 at december 31 , 2015. these reserves are reviewed each quarter . story_separator_special_tag serif ; margin : 0 ; text-indent : 0.5in `` > in july 2015 , the fasb issued asu 2015-11 , simplifying the measurement of inventory ( topic 330 ) . under this asu , inventory will be measured at the “ lower of cost and net realizable value ” and options that currently exist for “ market value ” will be eliminated . the asu defines net realizable value as the “ estimated selling prices in the ordinary course of business , less reasonably predictable costs of completion , disposal , and transportation . ” no other changes were made to the current guidance on inventory measurement . asu 2015-11 is effective for interim and annual periods beginning after december 15 , 2016. early application is permitted and should be applied prospectively . the company has evaluated the provisions of this statement , and concluded that the adoption of asu 2015-11 will not have a material impact on the company 's financial position or results of operations . in february 2016 , the fasb issued asu 2016-02 , leases ( topic 842 ) . under this asu , lessees are required to recognize right-of-use assets and lease liabilities for all leases not considered short-term leases . by definition , a short-term lease is one in which : ( a ) the lease term is 12 months or less and ( b ) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise . for short-term leases , lessees may elect an accounting policy by class of underlying asset under which right-of-use assets and lease liabilities are not recognized and lease payments are generally recognized as expense over the lease term on a straight-line basis . this change will result in lessees recognizing right-of-use assets and lease liabilities for most leases currently accounted for as operating leases under the legacy lease accounting guidance . asu 2016-02 is effective for interim and annual periods beginning after december 15 , 2018. early adoption is permitted . the company is evaluating the provisions of this statement , including which period to adopt , and has not determined what impact the adoption of asu 2016-02 will have on the company 's financial position or results of operations . - 24 - off-balance sheet obligations or arrangements none . tabular disclosure of contractual obligations and off-balance sheet arrangements contractual obligation and commercial commitments the company 's primary contractual obligations as of december 31 , 2016 are summarized in the following table and are more fully explained in notes to the consolidated financial statements . replace_table_token_7_th the company is obligated to make payments related to a deferred compensation plan , as detailed in note 11 , commitments and contingencies . the timing of all of these payments are currently not known as

