crude oil and natural gas prices are impacted by supply and demand , which are influenced by geopolitical , macroeconomic and local events and have historically been subject to substantial volatility and cyclicality . future higher crude oil and natural gas prices typically translate into higher exploration and production budgets . rig count , footage drilled and exploration and production investment by oil and gas operators have often been used as leading indicators for the level of drilling and development activity in the oil and gas sector . 27 market conditions and outlook oil supply markets tightened in the back half of 2017 and through the third quarter of 2018 , driving 2018 average west texas intermediate ( “ wti ” ) crude oil prices higher . in late 2018 and while oil and gas prices were experiencing significant volatility , opec members announced production cuts that began in 2019 and which are likely to lead to global oil markets returning to more balanced conditions during the latter half of 2019. we expect low to modest growth in rig count , as well as footage drilled , in 2019 as the supply and demand for oil and gas become more balanced . we believe that demand for oil and gas will continue to grow in 2019 and commodity prices will remain constructive . given the current market conditions , we remain focused on ( i ) growing our esp product line in the u.s. unconventional markets , ( ii ) capitalizing on existing well conversions to rod lift as production declines , ( iii ) further adoption of our digital products to improve our customers ' productivity and economics , ( iv ) continued innovation and advancement of our technology in diamond sciences , and ( v ) continued adoption of our diamond bearings offering for downhole applications . we believe our growth initiatives will allow us to meet our operational and financial growth targets in 2019. recently announced tariffs by the u.s. government , and retaliatory tariffs and other trade restrictions instituted by other countries , introduce uncertainty to our business since some of our products are impacted by the tariffs . we are actively working to mitigate the impacts of higher costs through various measures , including customer price increases , stronger supplier relationships as well as operational productivity improvement initiatives . in addition , we remain ready to respond to any changes in our customers ' activity levels based on the recent takeaway capacity issues in the permian basin . although risk remains that crude oil prices and activity levels could deteriorate from current levels , we believe the long-term outlook for our businesses is favorable . increasing global demand for oil and gas , in combination with ongoing depletion of existing reservoirs , is expected to drive continued investment in the drilling and completion of new wells . in addition , productivity and efficiency are becoming increasingly important in the oil and gas industry as operators focus on improving per-well economics . average crude oil and natural gas prices , rig counts and well completions are summarized below : replace_table_token_3_th _ ( a ) source : u.s. energy information administration ( eia ) , as of january 15 , 2019 . ( b ) source : baker hughes rig count , as of january 15 , 2019 . 28 consolidated results of operations years ended december 31 , 2018 , 2017 and 2016 replace_table_token_4_th _ * not meaningful 2018 compared with 2017 revenue . revenue increased $ 206.2 million , or 20.4 % , in 2018 compared to the prior year driven by broad-based volume growth in our production & automation technologies ' artificial lift and digital offerings due to improving oil and gas markets , particularly in the united states , primarily as a result of increased well completion activity . in addition , revenue increased in our drilling technologies segment year-over-year due to increased volumes driven by increased u.s. rig counts and continued adoption of diamond bearings . gross profit . gross profit increased $ 95.8 million , or 29.9 % , in 2018 compared to the prior year , reflecting benefits of increased sales volumes in both our production & automation technologies and drilling technologies segments , combined with realization of productivity initiatives . selling , general and administrative ( sg & a ) expense . selling , general and administrative expense increased $ 44.1 million , or 20.2 % , in 2018 compared to the prior year . the increase was due to increased headcount in support of our growth initiatives , higher incentive compensation resulting from improved business performance and $ 14.6 million in professional fees and other related charges associated with the separation . interest expense , net . interest expense , net increased $ 26.7 million in 2018 compared to the prior year due to the issuances of our term loan facility and senior notes during the second quarter of 2018 related to the separation . provision for ( benefit from ) income taxes . our provision for ( benefit from ) income taxes reflected effective tax rates of 23.4 % and ( 24.1 ) % in 2018 and 2017 , respectively . the year-over-year increase in the effective tax rate was primarily due to a non-recurring net tax benefit of $ 49.3 million recorded in 2017 due to the tax reform act . the tax reform act reduced the u.s. corporate income tax rate from a maximum of 35 % to 21 % , effective january 1 , 2018 , and resulted in the re-valuation of deferred tax assets and liabilities which produced the 2017 net tax benefit . 29 2017 compared with 2016 revenue . revenue increased $ 259.1 million , or 34.5 % , in 2017 compared to the prior year , driven by significant growth in u.s. and canadian rig counts and increased well completion activity . gross profit . story_separator_special_tag employee benefit plans our pension and other post-retirement obligations are described in note 16 to our consolidated financial statements included in part ii , item 8 of this annual report on form 10-k. in order to measure the expense and obligations associated with our employee benefit plans , management must make a variety of estimates , including discount rates used to value certain liabilities , expected return on plan assets set aside to fund these costs , rate of compensation increases , employee turnover rates , retirement rates , mortality rates and other factors . we update these estimates on an annual basis or more frequently upon the occurrence of significant events . these accounting estimates bear the risk of change due to the uncertainty associated with each estimate , as well as the fact that these estimates are difficult to measure . different estimates used by management could result in our recognizing different amounts of expense over different periods of time . due to the specialized and statistical nature of these calculations which attempt to anticipate future events , we engage third-party specialists to assist management in evaluating our assumptions as well as appropriately measuring the costs and obligations associated with these employee benefits . the discount rate and expected return on plan assets are primarily based on investment yields available and the historical performance of our plan assets , respectively . these elements are critical accounting estimates because they are subject to management 's judgment and can materially affect net income . our expected long-term rate of return on plan assets is reviewed annually based on actual returns , economic trends and portfolio allocation . our discount rate assumption is determined by developing a yield curve based on high quality corporate bonds with maturities matching the plans ' expected benefit payment streams . the plans ' expected cash flows are then discounted by the resulting year-by-year spot rates . holding other assumptions constant , a 25 basis point decrease in the discount rate used for our plans would have a $ 1.0 million increase in the projected benefit obligations as of december 31 , 2018. accounting for income taxes prior to the separation , our income tax expense and deferred tax balances have been estimated as if we had filed income tax returns on a stand-alone basis separate from dover . income taxes payable computed under the stand-alone return basis are classified within “ net parent investment in apergy ” at each balance sheet date prior to the separation since dover is legally liable for the tax . accordingly , changes in income taxes payable prior to the separation are recorded as a component of “ distributions to dover corporation , net ” in financing activities in the consolidated statements of cash flows . as a stand-alone entity , our deferred taxes and effective tax rates may differ from those of dover for periods prior to the separation . our income tax expense , deferred tax assets and liabilities , and reserves for uncertain tax positions reflect management 's best assessment of estimated future taxes to be paid . we are subject to income taxes in the united states and certain foreign jurisdictions . significant judgments and estimates are required in determining our consolidated income tax expense . in determining our current income tax provision , we assess temporary differences resulting from differing treatments of items for tax and accounting purposes . these differences result in deferred tax assets and liabilities , which are recorded in our consolidated balance sheets . deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled . when we maintain deferred tax assets , we must assess the likelihood that these assets will be recovered through adjustments to future taxable income . to the extent we believe recovery is not likely , we establish a valuation allowance to reduce the asset to a value we believe will be recoverable based on our expectation of future taxable income . we believe the accounting estimate related to the valuation allowance is a critical accounting estimate because it is susceptible to change from period to period , requires management to make assumptions about our future income over the lives of the deferred tax assets , and because the impact of increasing or decreasing the valuation allowance is potentially material to our results of operations . 38 the calculation of our income tax expense involves dealing with uncertainties in the application of complex tax laws and regulations in numerous jurisdictions in which we operate . we recognize tax benefits related to uncertain tax positions when , in our judgment , it is more likely than not that such positions will be sustained on examination , including resolutions of any related appeals or litigation , based on the technical merits . we adjust our liabilities for uncertain tax positions when our judgment changes as a result of new information previously unavailable . we routinely monitor the potential impact of these situations . we had no reserves recorded for uncertain tax positions as of december 31 , 2018 or 2017. reserves related to tax accruals and valuations related to deferred tax assets can be impacted by changes in tax codes and rulings , changes in statutory tax rates and our future taxable income levels . the tax reform act , enacted on december 22 , 2017 , significantly changed u.s. tax law by , among other things , lowering corporate income tax rates , implementing a territorial tax system and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries . the tax reform act reduced the u.s. corporate income tax rate from a maximum of 35 % to a flat 21 % rate , effective january 1 , 2018. the tax reform act also provided for a one-time deemed repatriation of

cash required by financing activities was $ 90.8 million in 2018 , and was the result of net transfers to dover of $ 736.6 million , primarily comprised of our $ 700 million payment to dover related to the separation , and $ 45.0 million of debt repayment on our term loan . these payments were partially offset by issuances of long-term debt , net of debt issuance costs and original issue discounts , of $ 698.0 million . cash required by financing activities of $ 36.7 million and $ 90.0 million in 2017 and 2016 , respectively , was primarily due to net transfers to dover . debt and liquidity total borrowings were comprised of the following : replace_table_token_8_th senior notes on may 3 , 2018 , and in connection with the separation , we completed the private placement of $ 300 million in aggregate principal amount of 6.375 % senior notes due may 2026 ( “ senior notes ” ) . interest on the senior notes is payable semi-annually in arrears on may 1 and november 1 of each year commencing on november 1 , 2018. net proceeds of $ 293.8 million from the offering were utilized to partially fund the cash payment to dover and to pay fees and expenses incurred in connection with the separation . on november 15 , 2018 , we filed a registration statement on form s-4 with the sec in accordance with the registration rights agreement outlining our offer to exchange the senior notes for substantially identical notes without transfer restrictions . the registration statement was declared effective on november 20 , 2018 , and the exchange offer for the senior notes was completed in december 2018 with full participation .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash required by financing activities was $ 90.8 million in 2018 , and was the result of net transfers to dover of $ 736.6 million , primarily comprised of our $ 700 million payment to dover related to the separation , and $ 45.0 million of debt repayment on our term loan . these payments were partially offset by issuances of long-term debt , net of debt issuance costs and original issue discounts , of $ 698.0 million . cash required by financing activities of $ 36.7 million and $ 90.0 million in 2017 and 2016 , respectively , was primarily due to net transfers to dover . debt and liquidity total borrowings were comprised of the following : replace_table_token_8_th senior notes on may 3 , 2018 , and in connection with the separation , we completed the private placement of $ 300 million in aggregate principal amount of 6.375 % senior notes due may 2026 ( “ senior notes ” ) . interest on the senior notes is payable semi-annually in arrears on may 1 and november 1 of each year commencing on november 1 , 2018. net proceeds of $ 293.8 million from the offering were utilized to partially fund the cash payment to dover and to pay fees and expenses incurred in connection with the separation . on november 15 , 2018 , we filed a registration statement on form s-4 with the sec in accordance with the registration rights agreement outlining our offer to exchange the senior notes for substantially identical notes without transfer restrictions . the registration statement was declared effective on november 20 , 2018 , and the exchange offer for the senior notes was completed in december 2018 with full participation .
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 Suspicious Activity Report : crude oil and natural gas prices are impacted by supply and demand , which are influenced by geopolitical , macroeconomic and local events and have historically been subject to substantial volatility and cyclicality . future higher crude oil and natural gas prices typically translate into higher exploration and production budgets . rig count , footage drilled and exploration and production investment by oil and gas operators have often been used as leading indicators for the level of drilling and development activity in the oil and gas sector . 27 market conditions and outlook oil supply markets tightened in the back half of 2017 and through the third quarter of 2018 , driving 2018 average west texas intermediate ( “ wti ” ) crude oil prices higher . in late 2018 and while oil and gas prices were experiencing significant volatility , opec members announced production cuts that began in 2019 and which are likely to lead to global oil markets returning to more balanced conditions during the latter half of 2019. we expect low to modest growth in rig count , as well as footage drilled , in 2019 as the supply and demand for oil and gas become more balanced . we believe that demand for oil and gas will continue to grow in 2019 and commodity prices will remain constructive . given the current market conditions , we remain focused on ( i ) growing our esp product line in the u.s. unconventional markets , ( ii ) capitalizing on existing well conversions to rod lift as production declines , ( iii ) further adoption of our digital products to improve our customers ' productivity and economics , ( iv ) continued innovation and advancement of our technology in diamond sciences , and ( v ) continued adoption of our diamond bearings offering for downhole applications . we believe our growth initiatives will allow us to meet our operational and financial growth targets in 2019. recently announced tariffs by the u.s. government , and retaliatory tariffs and other trade restrictions instituted by other countries , introduce uncertainty to our business since some of our products are impacted by the tariffs . we are actively working to mitigate the impacts of higher costs through various measures , including customer price increases , stronger supplier relationships as well as operational productivity improvement initiatives . in addition , we remain ready to respond to any changes in our customers ' activity levels based on the recent takeaway capacity issues in the permian basin . although risk remains that crude oil prices and activity levels could deteriorate from current levels , we believe the long-term outlook for our businesses is favorable . increasing global demand for oil and gas , in combination with ongoing depletion of existing reservoirs , is expected to drive continued investment in the drilling and completion of new wells . in addition , productivity and efficiency are becoming increasingly important in the oil and gas industry as operators focus on improving per-well economics . average crude oil and natural gas prices , rig counts and well completions are summarized below : replace_table_token_3_th _ ( a ) source : u.s. energy information administration ( eia ) , as of january 15 , 2019 . ( b ) source : baker hughes rig count , as of january 15 , 2019 . 28 consolidated results of operations years ended december 31 , 2018 , 2017 and 2016 replace_table_token_4_th _ * not meaningful 2018 compared with 2017 revenue . revenue increased $ 206.2 million , or 20.4 % , in 2018 compared to the prior year driven by broad-based volume growth in our production & automation technologies ' artificial lift and digital offerings due to improving oil and gas markets , particularly in the united states , primarily as a result of increased well completion activity . in addition , revenue increased in our drilling technologies segment year-over-year due to increased volumes driven by increased u.s. rig counts and continued adoption of diamond bearings . gross profit . gross profit increased $ 95.8 million , or 29.9 % , in 2018 compared to the prior year , reflecting benefits of increased sales volumes in both our production & automation technologies and drilling technologies segments , combined with realization of productivity initiatives . selling , general and administrative ( sg & a ) expense . selling , general and administrative expense increased $ 44.1 million , or 20.2 % , in 2018 compared to the prior year . the increase was due to increased headcount in support of our growth initiatives , higher incentive compensation resulting from improved business performance and $ 14.6 million in professional fees and other related charges associated with the separation . interest expense , net . interest expense , net increased $ 26.7 million in 2018 compared to the prior year due to the issuances of our term loan facility and senior notes during the second quarter of 2018 related to the separation . provision for ( benefit from ) income taxes . our provision for ( benefit from ) income taxes reflected effective tax rates of 23.4 % and ( 24.1 ) % in 2018 and 2017 , respectively . the year-over-year increase in the effective tax rate was primarily due to a non-recurring net tax benefit of $ 49.3 million recorded in 2017 due to the tax reform act . the tax reform act reduced the u.s. corporate income tax rate from a maximum of 35 % to 21 % , effective january 1 , 2018 , and resulted in the re-valuation of deferred tax assets and liabilities which produced the 2017 net tax benefit . 29 2017 compared with 2016 revenue . revenue increased $ 259.1 million , or 34.5 % , in 2017 compared to the prior year , driven by significant growth in u.s. and canadian rig counts and increased well completion activity . gross profit . story_separator_special_tag employee benefit plans our pension and other post-retirement obligations are described in note 16 to our consolidated financial statements included in part ii , item 8 of this annual report on form 10-k. in order to measure the expense and obligations associated with our employee benefit plans , management must make a variety of estimates , including discount rates used to value certain liabilities , expected return on plan assets set aside to fund these costs , rate of compensation increases , employee turnover rates , retirement rates , mortality rates and other factors . we update these estimates on an annual basis or more frequently upon the occurrence of significant events . these accounting estimates bear the risk of change due to the uncertainty associated with each estimate , as well as the fact that these estimates are difficult to measure . different estimates used by management could result in our recognizing different amounts of expense over different periods of time . due to the specialized and statistical nature of these calculations which attempt to anticipate future events , we engage third-party specialists to assist management in evaluating our assumptions as well as appropriately measuring the costs and obligations associated with these employee benefits . the discount rate and expected return on plan assets are primarily based on investment yields available and the historical performance of our plan assets , respectively . these elements are critical accounting estimates because they are subject to management 's judgment and can materially affect net income . our expected long-term rate of return on plan assets is reviewed annually based on actual returns , economic trends and portfolio allocation . our discount rate assumption is determined by developing a yield curve based on high quality corporate bonds with maturities matching the plans ' expected benefit payment streams . the plans ' expected cash flows are then discounted by the resulting year-by-year spot rates . holding other assumptions constant , a 25 basis point decrease in the discount rate used for our plans would have a $ 1.0 million increase in the projected benefit obligations as of december 31 , 2018. accounting for income taxes prior to the separation , our income tax expense and deferred tax balances have been estimated as if we had filed income tax returns on a stand-alone basis separate from dover . income taxes payable computed under the stand-alone return basis are classified within “ net parent investment in apergy ” at each balance sheet date prior to the separation since dover is legally liable for the tax . accordingly , changes in income taxes payable prior to the separation are recorded as a component of “ distributions to dover corporation , net ” in financing activities in the consolidated statements of cash flows . as a stand-alone entity , our deferred taxes and effective tax rates may differ from those of dover for periods prior to the separation . our income tax expense , deferred tax assets and liabilities , and reserves for uncertain tax positions reflect management 's best assessment of estimated future taxes to be paid . we are subject to income taxes in the united states and certain foreign jurisdictions . significant judgments and estimates are required in determining our consolidated income tax expense . in determining our current income tax provision , we assess temporary differences resulting from differing treatments of items for tax and accounting purposes . these differences result in deferred tax assets and liabilities , which are recorded in our consolidated balance sheets . deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled . when we maintain deferred tax assets , we must assess the likelihood that these assets will be recovered through adjustments to future taxable income . to the extent we believe recovery is not likely , we establish a valuation allowance to reduce the asset to a value we believe will be recoverable based on our expectation of future taxable income . we believe the accounting estimate related to the valuation allowance is a critical accounting estimate because it is susceptible to change from period to period , requires management to make assumptions about our future income over the lives of the deferred tax assets , and because the impact of increasing or decreasing the valuation allowance is potentially material to our results of operations . 38 the calculation of our income tax expense involves dealing with uncertainties in the application of complex tax laws and regulations in numerous jurisdictions in which we operate . we recognize tax benefits related to uncertain tax positions when , in our judgment , it is more likely than not that such positions will be sustained on examination , including resolutions of any related appeals or litigation , based on the technical merits . we adjust our liabilities for uncertain tax positions when our judgment changes as a result of new information previously unavailable . we routinely monitor the potential impact of these situations . we had no reserves recorded for uncertain tax positions as of december 31 , 2018 or 2017. reserves related to tax accruals and valuations related to deferred tax assets can be impacted by changes in tax codes and rulings , changes in statutory tax rates and our future taxable income levels . the tax reform act , enacted on december 22 , 2017 , significantly changed u.s. tax law by , among other things , lowering corporate income tax rates , implementing a territorial tax system and imposing a repatriation tax on deemed repatriated earnings of foreign subsidiaries . the tax reform act reduced the u.s. corporate income tax rate from a maximum of 35 % to a flat 21 % rate , effective january 1 , 2018. the tax reform act also provided for a one-time deemed repatriation of

