the company 's industrial products segment contributed $ 66.6 million to the fiscal 2018 total year-over-year increase , driven primarily by the industrial filtration solutions product group . foreign currency translation increased total sales by $ 78.3 million , reflecting increases in the engine and industrial products segments of $ 45.9 million and $ 32.4 million , respectively . acquisitions completed during the prior year increased total sales by $ 25.6 million . the company 's primary engine-related markets , including global agriculture , mining and construction are in various stages of cyclical growth , and certain industrial markets exhibited further signs of recovery during the fiscal year . fiscal 2018 net sales reflected typical seasonality , with a larger percent of full-year revenue realized during the second half of the fiscal year . gross margin cost of sales for the year ended july 31 , 2018 was $ 1,798.7 million , compared with $ 1,548.8 million for the year ended july 31 , 2017 , an increase of $ 249.9 million or 16.1 % . gross margin for the year ended july 31 , 2018 was 34.2 % , or a 0.5 percentage point decrease from 34.7 % for the year ended july 31 , 2017 . the decrease in gross margin reflects higher raw materials and supply chain costs combined with an unfavorable mix of sales . cost of sales for the year ended july 31 , 2017 was $ 1,548.8 million , compared with $ 1,465.5 million for the year ended july 31 , 2016 , an increase of $ 83.3 million or 5.7 % . gross margin for the year ended july 31 , 2017 was 34.7 % , or a 0.7 percentage point increase from 34.0 % for the year ended july 31 , 2016 . the fiscal 2017 rate benefited from greater absorption of fixed costs on the year-over-year sales increase , partially offset by higher variable costs , including raw materials as well as freight charges , related to meeting higher-than-expected customer demand . the fiscal 2017 rate does not include restructuring charges , which negatively affected the fiscal 2016 rate by approximately 0.3 percentage points . operating expenses operating expenses for the year ended july 31 , 2018 were $ 555.5 million , or 20.3 % of net sales , compared with $ 494.5 million , or 20.9 % of net sales , for the year ended july 31 , 2017 . the improvement in operating expenses as a percentage of sales was primarily driven by expense leverage gained on increasing sales , partially offset by higher compensation costs and freight expense . operating expenses for the year ended july 31 , 2017 were $ 494.5 million , or 20.9 % of net sales , compared with $ 480.6 million , or 21.6 % of net sales , for the year ended july 31 , 2016 . the decrease in operating expenses as a percentage of sales was primarily driven by the lack of restructuring charges in fiscal 2017 combined with leverage gained on the year-over-year sales increase , partially offset by higher variable compensation expense than fiscal 2016. non-operating items interest expense for the year ended july 31 , 2018 was $ 21.3 million , compared with $ 19.5 million for the year ended july 31 , 2017 , an increase of $ 1.8 million . the increase reflects a higher average level of debt outstanding than the prior year and interest rate increases on certain portions of the company 's debt . other income , net for the year ended july 31 , 2018 was $ 4.9 million , compared with $ 12.9 million for the year ended july 31 , 2017 . the decrease was primarily due to $ 6.8 million of income recognized in the prior year period that was related to a favorable settlement of claims associated with general representations and warranties in connection with the company 's acquisition of northern technical l.l.c . ( northern technical ) in fiscal 2015. interest expense for the year ended july 31 , 2017 was $ 19.5 million , compared with $ 20.7 million for the year ended july 31 , 2016 , an decrease of $ 1.2 million . the decrease reflects a lower average level of debt outstanding during fiscal 2017 than fiscal 2016. other income , net for the year ended july 31 , 2017 was $ 12.9 million , compared with $ 3.9 million for the year ended july 31 , 2016 . the increase in other income , net for fiscal 2017 was primarily due to the $ 6.8 million favorable settlement . 13 income taxes the effective tax rate for the year ended july 31 , 2018 was 50.4 % , as compared with 27.7 % for the year ended july 31 , 2017 . income taxes for the current year includes a provisional estimate for tax charges of $ 84.1 million related to the tcja . excluding the impact of the tcja adjustments ( refer to note 12 in the notes to consolidated financial statements included in item 8 of this report for further discussion of tcja ) , the effective tax rate for the year ended july 31 , 2018 was 27.3 % . the decrease of 0.4 percentage points was primarily due to a reduced u.s. corporate tax rate , excess tax benefits on stock-based compensation resulting from the adoption of asu 2016-09 ( refer to note 1 in the notes to consolidated financial statements included in item 8 of this report for further discussion of the new accounting standard ) and the favorable settlement of tax audits , which combined to decrease the company 's effective tax rate by 4.5 percentage points . story_separator_special_tag there was 24.0 million ( approximately $ 28.2 million at july 31 , 2018 ) outstanding under this program at july 31 , 2018 and no amounts outstanding at july 31 , 2017 . the weighted average interest rate on these short-term borrowings outstanding at july 31 , 2018 was 0.26 % . additionally , the company 's european operations have lines of credit with an available limit of 39.9 million ( approximately $ 46.8 million at july 31 , 2018 ) . there were no amounts outstanding at july 31 , 2018 or 2017 . other international subsidiaries may borrow under various credit facilities . there were no amounts outstanding under these credit facilities as of july 31 , 2018 and $ 4.1 million was outstanding as of july 31 , 2017 . at july 31 , 2018 and 2017 , there was approximately $ 42.8 million and $ 39.8 million , respectively , available for use under these facilities . certain debt agreements , including the $ 500.0 million revolving credit facility and the company 's long-term private placements , contain financial covenants related to interest coverage and leverage ratios , as well as other non-financial covenants . as of july 31 , 2018 , the company was in compliance with all such covenants . the company believes that the liquidity available from the combination of the expected cash generated by operating activities , existing cash and available credit under existing credit facilities will be adequate to meet cash requirements for the next twelve months , including working capital needs , debt service obligations , payment of anticipated dividends , share repurchase activity , potential acquisitions and capital expenditures . story_separator_special_tag resources . contractual obligations the following table summarizes the company 's contractual obligations as of july 31 , 2018 , for the years indicated ( in millions ) : replace_table_token_18_th ( 1 ) purchase obligations consist primarily of inventory , tooling and capital expenditures . the company 's purchase orders for inventory are based on expected customer demand and , as a result , quantities and dollar volumes are subject to change . ( 2 ) pension and deferred compensation consists of long-term pension liabilities and salary and bonus deferrals elected by certain executives under the company 's deferred compensation plan . deferred compensation balances earn interest based on a treasury bond rate as defined by the plan ( 10-year treasury bond strip rate plus two percent for deferrals prior to january 1 , 2011 and 10-year treasury bond rates for deferrals after december 31 , 2010 ) , are approved by the human resources committee of the board of directors and are payable at the election of the participants . ( 3 ) in addition to the above contractual obligations , the company may be obligated for additional cash outflows of $ 20.2 million for potential tax obligations , including accrued interest and penalties . the payment and timing of any such payments is affected by the ultimate resolution of the tax years that are under audit or remain subject to examination by the relevant taxing authorities . therefore , quantification of an estimated range and timing of future payments can not be made at this time . additionally , the transition tax on deemed repatriated earnings of non-u.s. subsidiaries resulting from the tcja is not included in contractual obligations . critical accounting policies the company 's consolidated financial statements are prepared in conformity with gaap . the preparation of these financial statements requires the use of estimates and judgments that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the periods presented . management bases estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about recorded amounts . the company believes its use of estimates and underlying accounting assumptions adheres to gaap and are reasonable and consistently applied . the company 's critical accounting policies are those that require more significant estimates and judgments used in the preparation of its consolidated financial statements and that are the most important to aid in fully understanding its financial results . the company 's critical accounting policies are the following : revenue recognition the company sells a wide range of filtration solutions into many industries around the globe . revenue is recognized when both product ownership and the risk of loss have transferred to the customer , the company has no remaining obligations , the selling price is fixed and determinable and collectability is reasonably assured . the vast majority of the company 's sales contracts are for standard products with product ownership and risk of loss transferring to the customer when the product has shipped , at which point revenue is recognized . although less common , the company does have sales contracts with customers requiring product ownership and risk of loss to transfer at the customer 's location . for these non-standard terms , the company defers revenue on these product sales until the product has been delivered . for the company 's gas turbine systems sales , which typically consist of multiple shipments of components that will comprise the entire gas turbine systems project , the company must carefully monitor the transfer of title related to each portion of a system 20 sale . the company defers revenue recognition until product ownership and risk of loss has transferred to the customer for all components and when all terms specified in the contract are met , which may include requirements such as the company delivering technical documentation to the customer or a quality inspection approved by the customer . in limited circumstances , the company enters into sales contracts that involve multiple elements ( such as equipment , replacement filter elements and installation services ) . in these instances , the company

cash flow summary cash flows for the years ended july 31 , 2018 , 2017 and 2016 are summarized as follows ( in millions ) : replace_table_token_16_th operating activities cash provided by operating activities for the year ended july 31 , 2018 was $ 262.9 million , as compared with $ 317.8 million for the year ended july 31 , 2017 , a decrease of $ 54.9 million . this decrease is primarily the result of $ 35.0 million of discretionary pension plan contributions and changes in working capital , as cash flows provided by accounts payable decreased by $ 34.3 million and cash flows used in accounts receivable increased by $ 9.9 million . the decrease is partially offset by an increase in pretax earnings of $ 41.6 million . cash provided by operating activities for the year ended july 31 , 2017 was $ 317.8 million , as compared with $ 291.3 million for the year ended july 31 , 2016 , an increase of $ 26.5 million . the increase in cash generated by operating activities resulted from higher net earnings of $ 42.0 million , partially offset by several changes in working capital items that resulted in a net cash reduction . 18 investing activities cash used in investing activities for the year ended july 31 , 2018 was $ 95.4 million , as compared with $ 95.7 million for the year ended july 31 , 2017 , a decrease of $ 0.3 million . the primary changes in cash used in investing activities include an increase in capital expenditures of $ 31.6 million to expand capacity and invest in technology , offset by a decrease in net cash used for acquisitions of $ 32.7 million . cash used in investing activities for the year ended july 31 , 2017 was $ 95.7 million , as compared with $ 55.6 million for the year ended july 31 , 2016 , an increase of $ 40.1 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.
     ```cash flow summary cash flows for the years ended july 31 , 2018 , 2017 and 2016 are summarized as follows ( in millions ) : replace_table_token_16_th operating activities cash provided by operating activities for the year ended july 31 , 2018 was $ 262.9 million , as compared with $ 317.8 million for the year ended july 31 , 2017 , a decrease of $ 54.9 million . this decrease is primarily the result of $ 35.0 million of discretionary pension plan contributions and changes in working capital , as cash flows provided by accounts payable decreased by $ 34.3 million and cash flows used in accounts receivable increased by $ 9.9 million . the decrease is partially offset by an increase in pretax earnings of $ 41.6 million . cash provided by operating activities for the year ended july 31 , 2017 was $ 317.8 million , as compared with $ 291.3 million for the year ended july 31 , 2016 , an increase of $ 26.5 million . the increase in cash generated by operating activities resulted from higher net earnings of $ 42.0 million , partially offset by several changes in working capital items that resulted in a net cash reduction . 18 investing activities cash used in investing activities for the year ended july 31 , 2018 was $ 95.4 million , as compared with $ 95.7 million for the year ended july 31 , 2017 , a decrease of $ 0.3 million . the primary changes in cash used in investing activities include an increase in capital expenditures of $ 31.6 million to expand capacity and invest in technology , offset by a decrease in net cash used for acquisitions of $ 32.7 million . cash used in investing activities for the year ended july 31 , 2017 was $ 95.7 million , as compared with $ 55.6 million for the year ended july 31 , 2016 , an increase of $ 40.1 million .
```    
 Suspicious Activity Report : the company 's industrial products segment contributed $ 66.6 million to the fiscal 2018 total year-over-year increase , driven primarily by the industrial filtration solutions product group . foreign currency translation increased total sales by $ 78.3 million , reflecting increases in the engine and industrial products segments of $ 45.9 million and $ 32.4 million , respectively . acquisitions completed during the prior year increased total sales by $ 25.6 million . the company 's primary engine-related markets , including global agriculture , mining and construction are in various stages of cyclical growth , and certain industrial markets exhibited further signs of recovery during the fiscal year . fiscal 2018 net sales reflected typical seasonality , with a larger percent of full-year revenue realized during the second half of the fiscal year . gross margin cost of sales for the year ended july 31 , 2018 was $ 1,798.7 million , compared with $ 1,548.8 million for the year ended july 31 , 2017 , an increase of $ 249.9 million or 16.1 % . gross margin for the year ended july 31 , 2018 was 34.2 % , or a 0.5 percentage point decrease from 34.7 % for the year ended july 31 , 2017 . the decrease in gross margin reflects higher raw materials and supply chain costs combined with an unfavorable mix of sales . cost of sales for the year ended july 31 , 2017 was $ 1,548.8 million , compared with $ 1,465.5 million for the year ended july 31 , 2016 , an increase of $ 83.3 million or 5.7 % . gross margin for the year ended july 31 , 2017 was 34.7 % , or a 0.7 percentage point increase from 34.0 % for the year ended july 31 , 2016 . the fiscal 2017 rate benefited from greater absorption of fixed costs on the year-over-year sales increase , partially offset by higher variable costs , including raw materials as well as freight charges , related to meeting higher-than-expected customer demand . the fiscal 2017 rate does not include restructuring charges , which negatively affected the fiscal 2016 rate by approximately 0.3 percentage points . operating expenses operating expenses for the year ended july 31 , 2018 were $ 555.5 million , or 20.3 % of net sales , compared with $ 494.5 million , or 20.9 % of net sales , for the year ended july 31 , 2017 . the improvement in operating expenses as a percentage of sales was primarily driven by expense leverage gained on increasing sales , partially offset by higher compensation costs and freight expense . operating expenses for the year ended july 31 , 2017 were $ 494.5 million , or 20.9 % of net sales , compared with $ 480.6 million , or 21.6 % of net sales , for the year ended july 31 , 2016 . the decrease in operating expenses as a percentage of sales was primarily driven by the lack of restructuring charges in fiscal 2017 combined with leverage gained on the year-over-year sales increase , partially offset by higher variable compensation expense than fiscal 2016. non-operating items interest expense for the year ended july 31 , 2018 was $ 21.3 million , compared with $ 19.5 million for the year ended july 31 , 2017 , an increase of $ 1.8 million . the increase reflects a higher average level of debt outstanding than the prior year and interest rate increases on certain portions of the company 's debt . other income , net for the year ended july 31 , 2018 was $ 4.9 million , compared with $ 12.9 million for the year ended july 31 , 2017 . the decrease was primarily due to $ 6.8 million of income recognized in the prior year period that was related to a favorable settlement of claims associated with general representations and warranties in connection with the company 's acquisition of northern technical l.l.c . ( northern technical ) in fiscal 2015. interest expense for the year ended july 31 , 2017 was $ 19.5 million , compared with $ 20.7 million for the year ended july 31 , 2016 , an decrease of $ 1.2 million . the decrease reflects a lower average level of debt outstanding during fiscal 2017 than fiscal 2016. other income , net for the year ended july 31 , 2017 was $ 12.9 million , compared with $ 3.9 million for the year ended july 31 , 2016 . the increase in other income , net for fiscal 2017 was primarily due to the $ 6.8 million favorable settlement . 13 income taxes the effective tax rate for the year ended july 31 , 2018 was 50.4 % , as compared with 27.7 % for the year ended july 31 , 2017 . income taxes for the current year includes a provisional estimate for tax charges of $ 84.1 million related to the tcja . excluding the impact of the tcja adjustments ( refer to note 12 in the notes to consolidated financial statements included in item 8 of this report for further discussion of tcja ) , the effective tax rate for the year ended july 31 , 2018 was 27.3 % . the decrease of 0.4 percentage points was primarily due to a reduced u.s. corporate tax rate , excess tax benefits on stock-based compensation resulting from the adoption of asu 2016-09 ( refer to note 1 in the notes to consolidated financial statements included in item 8 of this report for further discussion of the new accounting standard ) and the favorable settlement of tax audits , which combined to decrease the company 's effective tax rate by 4.5 percentage points . story_separator_special_tag there was 24.0 million ( approximately $ 28.2 million at july 31 , 2018 ) outstanding under this program at july 31 , 2018 and no amounts outstanding at july 31 , 2017 . the weighted average interest rate on these short-term borrowings outstanding at july 31 , 2018 was 0.26 % . additionally , the company 's european operations have lines of credit with an available limit of 39.9 million ( approximately $ 46.8 million at july 31 , 2018 ) . there were no amounts outstanding at july 31 , 2018 or 2017 . other international subsidiaries may borrow under various credit facilities . there were no amounts outstanding under these credit facilities as of july 31 , 2018 and $ 4.1 million was outstanding as of july 31 , 2017 . at july 31 , 2018 and 2017 , there was approximately $ 42.8 million and $ 39.8 million , respectively , available for use under these facilities . certain debt agreements , including the $ 500.0 million revolving credit facility and the company 's long-term private placements , contain financial covenants related to interest coverage and leverage ratios , as well as other non-financial covenants . as of july 31 , 2018 , the company was in compliance with all such covenants . the company believes that the liquidity available from the combination of the expected cash generated by operating activities , existing cash and available credit under existing credit facilities will be adequate to meet cash requirements for the next twelve months , including working capital needs , debt service obligations , payment of anticipated dividends , share repurchase activity , potential acquisitions and capital expenditures . story_separator_special_tag resources . contractual obligations the following table summarizes the company 's contractual obligations as of july 31 , 2018 , for the years indicated ( in millions ) : replace_table_token_18_th ( 1 ) purchase obligations consist primarily of inventory , tooling and capital expenditures . the company 's purchase orders for inventory are based on expected customer demand and , as a result , quantities and dollar volumes are subject to change . ( 2 ) pension and deferred compensation consists of long-term pension liabilities and salary and bonus deferrals elected by certain executives under the company 's deferred compensation plan . deferred compensation balances earn interest based on a treasury bond rate as defined by the plan ( 10-year treasury bond strip rate plus two percent for deferrals prior to january 1 , 2011 and 10-year treasury bond rates for deferrals after december 31 , 2010 ) , are approved by the human resources committee of the board of directors and are payable at the election of the participants . ( 3 ) in addition to the above contractual obligations , the company may be obligated for additional cash outflows of $ 20.2 million for potential tax obligations , including accrued interest and penalties . the payment and timing of any such payments is affected by the ultimate resolution of the tax years that are under audit or remain subject to examination by the relevant taxing authorities . therefore , quantification of an estimated range and timing of future payments can not be made at this time . additionally , the transition tax on deemed repatriated earnings of non-u.s. subsidiaries resulting from the tcja is not included in contractual obligations . critical accounting policies the company 's consolidated financial statements are prepared in conformity with gaap . the preparation of these financial statements requires the use of estimates and judgments that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the periods presented . management bases estimates on historical experience and various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about recorded amounts . the company believes its use of estimates and underlying accounting assumptions adheres to gaap and are reasonable and consistently applied . the company 's critical accounting policies are those that require more significant estimates and judgments used in the preparation of its consolidated financial statements and that are the most important to aid in fully understanding its financial results . the company 's critical accounting policies are the following : revenue recognition the company sells a wide range of filtration solutions into many industries around the globe . revenue is recognized when both product ownership and the risk of loss have transferred to the customer , the company has no remaining obligations , the selling price is fixed and determinable and collectability is reasonably assured . the vast majority of the company 's sales contracts are for standard products with product ownership and risk of loss transferring to the customer when the product has shipped , at which point revenue is recognized . although less common , the company does have sales contracts with customers requiring product ownership and risk of loss to transfer at the customer 's location . for these non-standard terms , the company defers revenue on these product sales until the product has been delivered . for the company 's gas turbine systems sales , which typically consist of multiple shipments of components that will comprise the entire gas turbine systems project , the company must carefully monitor the transfer of title related to each portion of a system 20 sale . the company defers revenue recognition until product ownership and risk of loss has transferred to the customer for all components and when all terms specified in the contract are met , which may include requirements such as the company delivering technical documentation to the customer or a quality inspection approved by the customer . in limited circumstances , the company enters into sales contracts that involve multiple elements ( such as equipment , replacement filter elements and installation services ) . in these instances , the company

