as a member of the group of companies consolidated for u.s. federal income tax purposes with contran , the parent of our consolidated u.s. federal income tax group , we compute our provision for income taxes on a separate company basis , using the tax elections made by contran . our effective income tax rate was 23 % in 2017 , 25 % in 2018 and 24 % in 2019. on december 22 , 2017 , h.r.1 , formally known as the “ tax cuts and jobs act ” ( “ 2017 tax act ” ) was enacted into law . this tax legislation , among other changes , ( i ) reduced the u.s federal corporate income tax rate from 35 % to 21 % effective january 1 , 2018 ; ( ii ) eliminated the domestic production activities deduction beginning in 2018 ; and ( iii ) allowed the expensing of certain capital expenditures . following the enactment of the 2017 tax act , the securities and exchange commission issued staff accounting bulletin ( sab ) 118 to provide guidance on the accounting and reporting impacts of the 2017 tax act . sab 118 required that companies account for changes related to the 2017 tax act in - 13 - the period of enactment unless the impact of such changes coul d not be reasonably estimated . such revaluation resulted in a non-cash deferred income tax benefit of $ 1.9 million recognized in continuing operations for the period ended december 31 , 2017 , reducing our net deferred income tax liability as of that date . during 2018 we finalized our analys is of the 2017 tax act and recorded an immaterial adjustment within the defined measurement period . see notes 7 and 10 to our consolidated financial statements . while our effective income tax rate for 2018 was favorably impacted by the reduction in the u.s. federal statutory income tax rate from 35 % to 21 % , our effective income tax rate was higher in 2018 as compared to 2017 due to the $ 1.9 million non-cash deferred income tax benefit recognized in 2017 resulting from the revaluation of our net deferred income tax liability discussed above . our effective income tax rate was lower in 2019 as compared to 2018 primarily due to recognizing a current cash tax benefit of $ 0.2 million in 2019 resulting from a deduction under the foreign derived intangible income provisions ( $ 0.1 million of such current cash tax benefit is related to 2018 ) . segment results the key performance indicator for our segments is the level of their operating income ( see discussion below ) . for additional information regarding our segments refer to note 2 to our consolidated financial statements . replace_table_token_3_th security products . security products net sales increased 1 % to $ 99.3 million in 2019 compared to $ 98.4 million in 2018 , primarily due to higher sales to government security and medical cart manufacturing markets , partially offset by lower sales to the transportation , electronic control panel and distribution markets . as a percentage of sales , gross margin and operating income for 2019 declined as compared to 2018 primarily due to increased labor rates and associated payroll costs resulting from regional pressure on wages for certain skilled labor positions , partially offset by favorable medical costs . security products net sales increased 2 % to $ 98.4 million in 2018 compared to $ 96.6 million in 2017 , primarily due to higher sales to the transportation and office furniture markets . as a percentage of sales , gross margin for 2018 increased slightly over 2017 due to lower production costs , including headcount reductions made during the second quarter of 2017 , and improved coverage of fixed costs over increased production volumes . operating costs and expenses for 2018 were slightly lower than 2017. as a result , security products operating income as a percentage of net sales for 2018 exceeded 2017 . - 14 - replace_table_token_4_th marine components . marine components net sales increased 26 % in 2019 as compared to 2018 primarily due to increased sales to the towboat market , primarily wake enhancement systems and surf pipes to an original equipment boat manufacturer . gross margin as a percentage of sales in 2019 was comparable to 2018. operating income as a percentage of net sales increased in 2019 compared to 2018 principally due to improved leverage on operating costs and expenses facilitated by higher production volumes . marine components net sales increased 29 % in 2018 as compared to 2017 as a result of continued strong demand for our products , particularly those sold to the ski/wakeboard boat market as well as to manufacturers of large center-console boats and industrial customers . gross margin and operating income as a percentage of net sales increased in 2018 compared to 2017 principally due to improved fixed cost leverage facilitated by higher production volumes . outlook . 2019 was a breakout year for our marine components segment which sustained the significant growth we experienced in the second half of 2018 for the full year of 2019. we expect growth of this segment to be more normalized in 2020. our security products segment experienced modest sales growth in 2019 ; however we began to notice headwinds late in 2019 which may carry into 2020. in 2020 , we plan to capitalize on the positive momentum our marine components segment has experienced over the last two years while maintaining strong results in our security products segment . story_separator_special_tag we will continue to monitor economic conditions and sales order rates and respond to fluctuations in customer demand through continuous evaluation of staffing levels and consistent execution of our lean manufacturing and cost improvement initiatives . additionally , we continue to seek opportunities to gain market share in markets we currently serve , to expand into new markets and to develop new product features in order to mitigate the impact of changes in demand as well as broaden our sales base . critical accounting policies and estimates our significant accounting policies are more fully described in note 1 to our consolidated financial statements . our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the united states of america ( gaap ) which requires us to make estimates , judgments , and assumptions we believe are reasonable based on our historical experience , contract terms , observations of known trends in our company and the industry as a whole and information available from other outside sources . our estimates affect the reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the date of the financial statements , and the reported amounts of revenue and expense during the reporting period . actual results may differ from initial estimates . we believe the most critical accounting policies and estimates involving significant judgments and estimates primarily relate to the considerations in the impairment assessments for goodwill and certain long-lived assets . we have discussed the development , selection and disclosure of our critical accounting estimates with the audit committee of our board of directors . goodwill – our goodwill totaled $ 23.7 million at december 31 , 2019 , all relating to our security products segment . goodwill is required to be tested annually or at other times whenever an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below - 15 - its carrying value . we pe rform our annual goodwill impairment test in the third quarter of each year . in addition , adverse industry or economic trends , lower projections of profitability , or a sustained decline in our market capitalization , among other items , may be indications of potential impairment issues which are triggering events requiring the testing of an asset 's carrying value for recoverability . an entity may first assess qualitative factors to determine whether it is necessary to complete the two-step quantitative impair ment test using a more-likely-than-not criteria . if an entity believes it is more-likely-than-not the fair value of a reporting unit is greater than its carrying value , including goodwill , the two-step quantitative impairment test can be bypassed . alternat ively , an entity has an unconditional option to bypass the qualitative assessment and proceed directly to performing the two-step quantitative impairment test . when performing a qualitative assessment considerable management judgment is necessary to evaluate the qualitative impact of events and circumstances on the fair value of a reporting unit . events and circumstances considered in our impairment evaluations , such as historical profits and stability of the markets served , are consistent with factors utilized with our internal projections and operating plan . however , future events and circumstances could result in materially different findings which could result in the recognition of a material goodwill impairment . evaluations of possible impairment utilizing the two-step quantitative impairment test require us to estimate , among other factors : forecasts of future operating results , revenue growth , operating margin , tax rates , capital expenditures , depreciation , working capital , weighted average cost of capital , long-term growth rates , risk premiums , terminal values , and fair values of our reporting units and assets . the goodwill impairment test is subject to uncertainties arising from such events as changes in competitive conditions , the current general economic environment , material changes in growth rate assumptions that could positively or negatively impact anticipated future operating conditions and cash flows , changes in the discount rate , and the impact of strategic decisions . if any of these factors were to materially change such change may require revaluation of our goodwill . changes in estimates or the application of alternative assumptions could produce significantly different results . in 2019 , we used the qualitative assessment for our annual impairment test and determined it was not necessary to perform the quantitative goodwill impairment test , as we concluded it is more-likely- than-not the fair value of the security products reporting unit exceeded its carrying amount . see notes 1 and 5 to our consolidated financial statements . long-lived assets – the net book value of our property and equipment totaled $ 31.0 million at december 31 , 2019. we assess property and equipment for impairment only when circumstances indicate an impairment may exist . our determination is based upon , among other things , our estimates of the amount of future net cash flows to be generated by the long-lived asset ( level 3 inputs ) and our estimates of the current fair value of the asset . significant judgment is required in estimating such cash flows . adverse changes in such estimates of future net cash flows or estimates of fair value could result in an inability to recover the carrying value of the long-lived asset , thereby possibly requiring an impairment charge to be recognized in the future . we do not assess our property and equipment for impairment unless certain impairment indicators are present . we did not evaluate any long-lived assets for impairment during 2019 because no such impairment indicators were present . - 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liquidity and capital resources summary our primary source of liquidity on an on-going basis is our cash flow from operating activities , which is generally used to ( i ) fund capital expenditures , ( ii ) repay short-term or long-term indebtedness incurred primarily for capital expenditures , business combinations or buying back shares of our outstanding stock and ( iii ) provide for the payment of dividends ( if declared ) . from time-to-time , we may incur indebtedness to fund capital expenditures , business combinations or other investment activities . in addition , from time-to-time , we may also sell assets outside the ordinary course of business , the proceeds of which are generally used to repay indebtedness ( including indebtedness which may have been collateralized by the assets sold ) or to fund capital expenditures or business combinations . consolidated cash flows operating activities . trends in cash flows from operating activities , excluding changes in assets and liabilities , for the last three years have generally been similar to the trends in our earnings . depreciation and amortization were comparable in each of 2019 , 2018 and 2017. see note 1 to our consolidated financial statements . changes in assets and liabilities result primarily from the timing of production , sales and purchases . such changes in assets and liabilities generally tend to even out over time . however , year-to-year relative changes in assets and liabilities can significantly affect the comparability of cash flows from operating activities . cash provided by operating activities was $ 18.5 million in 2019 compared to $ 17.2 million in 2018. the $ 1.3 million increase in cash provided by operating activities is primarily the net result of : a $ 1.1 million increase in interest received in 2019 , a $ 0.7 million increase in cash paid for taxes in 2019 due to the relative timing of payments , and a lower amount of net cash used by relative changes in inventories , receivables , payables and non-tax accruals of $ 0.6 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.
     ```liquidity and capital resources summary our primary source of liquidity on an on-going basis is our cash flow from operating activities , which is generally used to ( i ) fund capital expenditures , ( ii ) repay short-term or long-term indebtedness incurred primarily for capital expenditures , business combinations or buying back shares of our outstanding stock and ( iii ) provide for the payment of dividends ( if declared ) . from time-to-time , we may incur indebtedness to fund capital expenditures , business combinations or other investment activities . in addition , from time-to-time , we may also sell assets outside the ordinary course of business , the proceeds of which are generally used to repay indebtedness ( including indebtedness which may have been collateralized by the assets sold ) or to fund capital expenditures or business combinations . consolidated cash flows operating activities . trends in cash flows from operating activities , excluding changes in assets and liabilities , for the last three years have generally been similar to the trends in our earnings . depreciation and amortization were comparable in each of 2019 , 2018 and 2017. see note 1 to our consolidated financial statements . changes in assets and liabilities result primarily from the timing of production , sales and purchases . such changes in assets and liabilities generally tend to even out over time . however , year-to-year relative changes in assets and liabilities can significantly affect the comparability of cash flows from operating activities . cash provided by operating activities was $ 18.5 million in 2019 compared to $ 17.2 million in 2018. the $ 1.3 million increase in cash provided by operating activities is primarily the net result of : a $ 1.1 million increase in interest received in 2019 , a $ 0.7 million increase in cash paid for taxes in 2019 due to the relative timing of payments , and a lower amount of net cash used by relative changes in inventories , receivables , payables and non-tax accruals of $ 0.6 million .
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 Suspicious Activity Report : as a member of the group of companies consolidated for u.s. federal income tax purposes with contran , the parent of our consolidated u.s. federal income tax group , we compute our provision for income taxes on a separate company basis , using the tax elections made by contran . our effective income tax rate was 23 % in 2017 , 25 % in 2018 and 24 % in 2019. on december 22 , 2017 , h.r.1 , formally known as the “ tax cuts and jobs act ” ( “ 2017 tax act ” ) was enacted into law . this tax legislation , among other changes , ( i ) reduced the u.s federal corporate income tax rate from 35 % to 21 % effective january 1 , 2018 ; ( ii ) eliminated the domestic production activities deduction beginning in 2018 ; and ( iii ) allowed the expensing of certain capital expenditures . following the enactment of the 2017 tax act , the securities and exchange commission issued staff accounting bulletin ( sab ) 118 to provide guidance on the accounting and reporting impacts of the 2017 tax act . sab 118 required that companies account for changes related to the 2017 tax act in - 13 - the period of enactment unless the impact of such changes coul d not be reasonably estimated . such revaluation resulted in a non-cash deferred income tax benefit of $ 1.9 million recognized in continuing operations for the period ended december 31 , 2017 , reducing our net deferred income tax liability as of that date . during 2018 we finalized our analys is of the 2017 tax act and recorded an immaterial adjustment within the defined measurement period . see notes 7 and 10 to our consolidated financial statements . while our effective income tax rate for 2018 was favorably impacted by the reduction in the u.s. federal statutory income tax rate from 35 % to 21 % , our effective income tax rate was higher in 2018 as compared to 2017 due to the $ 1.9 million non-cash deferred income tax benefit recognized in 2017 resulting from the revaluation of our net deferred income tax liability discussed above . our effective income tax rate was lower in 2019 as compared to 2018 primarily due to recognizing a current cash tax benefit of $ 0.2 million in 2019 resulting from a deduction under the foreign derived intangible income provisions ( $ 0.1 million of such current cash tax benefit is related to 2018 ) . segment results the key performance indicator for our segments is the level of their operating income ( see discussion below ) . for additional information regarding our segments refer to note 2 to our consolidated financial statements . replace_table_token_3_th security products . security products net sales increased 1 % to $ 99.3 million in 2019 compared to $ 98.4 million in 2018 , primarily due to higher sales to government security and medical cart manufacturing markets , partially offset by lower sales to the transportation , electronic control panel and distribution markets . as a percentage of sales , gross margin and operating income for 2019 declined as compared to 2018 primarily due to increased labor rates and associated payroll costs resulting from regional pressure on wages for certain skilled labor positions , partially offset by favorable medical costs . security products net sales increased 2 % to $ 98.4 million in 2018 compared to $ 96.6 million in 2017 , primarily due to higher sales to the transportation and office furniture markets . as a percentage of sales , gross margin for 2018 increased slightly over 2017 due to lower production costs , including headcount reductions made during the second quarter of 2017 , and improved coverage of fixed costs over increased production volumes . operating costs and expenses for 2018 were slightly lower than 2017. as a result , security products operating income as a percentage of net sales for 2018 exceeded 2017 . - 14 - replace_table_token_4_th marine components . marine components net sales increased 26 % in 2019 as compared to 2018 primarily due to increased sales to the towboat market , primarily wake enhancement systems and surf pipes to an original equipment boat manufacturer . gross margin as a percentage of sales in 2019 was comparable to 2018. operating income as a percentage of net sales increased in 2019 compared to 2018 principally due to improved leverage on operating costs and expenses facilitated by higher production volumes . marine components net sales increased 29 % in 2018 as compared to 2017 as a result of continued strong demand for our products , particularly those sold to the ski/wakeboard boat market as well as to manufacturers of large center-console boats and industrial customers . gross margin and operating income as a percentage of net sales increased in 2018 compared to 2017 principally due to improved fixed cost leverage facilitated by higher production volumes . outlook . 2019 was a breakout year for our marine components segment which sustained the significant growth we experienced in the second half of 2018 for the full year of 2019. we expect growth of this segment to be more normalized in 2020. our security products segment experienced modest sales growth in 2019 ; however we began to notice headwinds late in 2019 which may carry into 2020. in 2020 , we plan to capitalize on the positive momentum our marine components segment has experienced over the last two years while maintaining strong results in our security products segment . story_separator_special_tag we will continue to monitor economic conditions and sales order rates and respond to fluctuations in customer demand through continuous evaluation of staffing levels and consistent execution of our lean manufacturing and cost improvement initiatives . additionally , we continue to seek opportunities to gain market share in markets we currently serve , to expand into new markets and to develop new product features in order to mitigate the impact of changes in demand as well as broaden our sales base . critical accounting policies and estimates our significant accounting policies are more fully described in note 1 to our consolidated financial statements . our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the united states of america ( gaap ) which requires us to make estimates , judgments , and assumptions we believe are reasonable based on our historical experience , contract terms , observations of known trends in our company and the industry as a whole and information available from other outside sources . our estimates affect the reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the date of the financial statements , and the reported amounts of revenue and expense during the reporting period . actual results may differ from initial estimates . we believe the most critical accounting policies and estimates involving significant judgments and estimates primarily relate to the considerations in the impairment assessments for goodwill and certain long-lived assets . we have discussed the development , selection and disclosure of our critical accounting estimates with the audit committee of our board of directors . goodwill – our goodwill totaled $ 23.7 million at december 31 , 2019 , all relating to our security products segment . goodwill is required to be tested annually or at other times whenever an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below - 15 - its carrying value . we pe rform our annual goodwill impairment test in the third quarter of each year . in addition , adverse industry or economic trends , lower projections of profitability , or a sustained decline in our market capitalization , among other items , may be indications of potential impairment issues which are triggering events requiring the testing of an asset 's carrying value for recoverability . an entity may first assess qualitative factors to determine whether it is necessary to complete the two-step quantitative impair ment test using a more-likely-than-not criteria . if an entity believes it is more-likely-than-not the fair value of a reporting unit is greater than its carrying value , including goodwill , the two-step quantitative impairment test can be bypassed . alternat ively , an entity has an unconditional option to bypass the qualitative assessment and proceed directly to performing the two-step quantitative impairment test . when performing a qualitative assessment considerable management judgment is necessary to evaluate the qualitative impact of events and circumstances on the fair value of a reporting unit . events and circumstances considered in our impairment evaluations , such as historical profits and stability of the markets served , are consistent with factors utilized with our internal projections and operating plan . however , future events and circumstances could result in materially different findings which could result in the recognition of a material goodwill impairment . evaluations of possible impairment utilizing the two-step quantitative impairment test require us to estimate , among other factors : forecasts of future operating results , revenue growth , operating margin , tax rates , capital expenditures , depreciation , working capital , weighted average cost of capital , long-term growth rates , risk premiums , terminal values , and fair values of our reporting units and assets . the goodwill impairment test is subject to uncertainties arising from such events as changes in competitive conditions , the current general economic environment , material changes in growth rate assumptions that could positively or negatively impact anticipated future operating conditions and cash flows , changes in the discount rate , and the impact of strategic decisions . if any of these factors were to materially change such change may require revaluation of our goodwill . changes in estimates or the application of alternative assumptions could produce significantly different results . in 2019 , we used the qualitative assessment for our annual impairment test and determined it was not necessary to perform the quantitative goodwill impairment test , as we concluded it is more-likely- than-not the fair value of the security products reporting unit exceeded its carrying amount . see notes 1 and 5 to our consolidated financial statements . long-lived assets – the net book value of our property and equipment totaled $ 31.0 million at december 31 , 2019. we assess property and equipment for impairment only when circumstances indicate an impairment may exist . our determination is based upon , among other things , our estimates of the amount of future net cash flows to be generated by the long-lived asset ( level 3 inputs ) and our estimates of the current fair value of the asset . significant judgment is required in estimating such cash flows . adverse changes in such estimates of future net cash flows or estimates of fair value could result in an inability to recover the carrying value of the long-lived asset , thereby possibly requiring an impairment charge to be recognized in the future . we do not assess our property and equipment for impairment unless certain impairment indicators are present . we did not evaluate any long-lived assets for impairment during 2019 because no such impairment indicators were present . - 16 - story_separator_special_tag style= `` text-align : justify ; margin-bottom:0pt ; margin-top:12pt ; text-indent:0 % ; font-weight : bold ; font-style : italic ; font-size:10pt ; font-family : times new roman ; text-transform : none ; font-variant : normal ; `` > commitments and contingencies

