our goal is to use our company 's assets—our brands , financial strength , and the talent and strong commitment of our management and employees—to become more competitive and to accelerate growth . critical accounting policies and estimates management 's discussion and analysis of financial condition and results of operations are based upon our financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states ( “ gaap ” ) . the preparation of these consolidated financial statements requires our management to make assumptions and estimates about future events and apply judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . these estimates are based on management 's historical and industry experience and on various other assumptions that are believed to be reasonable under the circumstances . on a regular basis , we evaluate these accounting policies , assumptions , estimates and judgments to ensure that our financial statements are presented fairly and in accordance with gaap . however , because future events and their effects can not be determined with certainty , actual results may differ from our estimates , and such differences could be material . a full discussion of our significant accounting policies is contained in note 2 to our consolidated financial statements , which is included in item 8 – “ financial statements and supplementary data ” of this report . we believe that the following accounting estimates are the most critical to aid in fully understanding and evaluating our financial results . these estimates require our most difficult , subjective or complex judgments because they relate to matters that are inherently uncertain . we have reviewed these critical accounting policies and estimates and related disclosures with our audit committee . long-lived assets we review long-lived assets , such as property and equipment , and intangible assets subject to amortization , for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable . these events or changes in circumstances include , but are not limited to , significant underperformance relative to historical or projected future operating results , significant changes in the manner of use of the acquired assets or the strategy for the overall business , and significant negative industry or economic trends . recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the estimated undiscounted cash flows over the estimated remaining useful life of the primary asset included in the asset group . if the asset group is not recoverable , the impairment loss is calculated as the excess of the carrying value over the fair value . we define our asset group as an operating club or restaurant location , which is also our reporting unit or the lowest level for which cash flows can be identified . key estimates in the undiscounted cash flow model include management 's estimate of the projected revenues and operating margins . if fair value is used to determine an impairment loss , an additional key assumption is the selection of a weighted-average cost of capital to discount cash flows . assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and are no longer depreciated . during the fourth quarter of 2019 , we impaired two clubs for a total of $ 4.2 million ; during the fourth quarter of 2018 , we impaired one club and one bombshells by a total of $ 1.6 million ; and during the fourth quarter of fiscal 2017 , we impaired one club by $ 385,000. goodwill and other intangible assets goodwill and other intangible assets that have indefinite useful lives are tested annually for impairment during our fourth fiscal quarter , and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired . 22 our impairment calculations require management to make assumptions and to apply judgment in order to estimate fair values . if our actual results are not consistent with our estimates and assumptions , we may be exposed to impairments that could be material . we do not believe that there is a reasonable likelihood that there will be a change in the estimates or assumptions we used that could cause a material change in our calculated impairment charges . for our goodwill impairment review , we have the option to first perform a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value . this assessment is based on several factors , including industry and market conditions , overall financial performance , including an assessment of cash flows in comparison to actual and projected results of prior periods . if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value based on our qualitative analysis , or if we elect to skip this step , we perform a step 1 quantitative analysis to determine the fair value of the reporting unit . the fair value is determined using market-related valuation models , including earnings multiples , discounted cash flows , and comparable asset market values . key estimates in the discounted cash flow model include management 's estimate of the projected revenues and operating margins , along with the selection of a weighted-average cost of capital to discount cash flows . story_separator_special_tag income from operations below is a table which reflects segment contribution to income from operations ( in thousands ) : replace_table_token_18_th our operating margin ( income from operations divided by revenues ) was 19.2 % in 2019 , 16.6 % in 2018 , and 16.0 % in 2017. nightclubs operating margin was 34.1 % , 31.1 % , and 28.2 % in 2019 , 2018 , and 2017 , respectively , primarily due to the closure of underperforming units , fixed expense leverage on increasing sales , and impairment of assets of $ 5.9 million , $ 4.4 million , and $ 6.5 million for 2019 , 2018 , and 2017 , respectively . bombshells operating margin was 7.4 % , 8.5 % , and 16.4 % in 2019 , 2018 , and 2017 , respectively , mainly due to pre-opening expenses in 2019 ( particularly in salaries and wages and selling , general and administrative expenses ) and impairment of assets of $ 1.1 million in 2018 . 30 excluding the impact of settlement of lawsuits , impairment of assets , gain on insurance , gain on patron tax settlement , and gain on sale of businesses and assets , operating margin for the nightclub segment would have been 35.9 % , 35.1 % , and 33.1 % for 2019 , 2018 , and 2017 , respectively . excluding the impact of impairment of assets , loss on sale of assets , and settlement of lawsuits , bombshells segment operating margin would have been 7.6 % , 15.1 % , and 16.4 % for 2019 , 2018 , and 2017 , respectively . refer to discussion of non-gaap financial measures on page 32. interest expense interest expense increased by $ 255,000 from 2018 to 2019 , and increased by $ 1.2 million from 2017 to 2018. the increase in interest expense is due to higher average debt balance partially offset by lower weighted average interest rate . during the first quarter of 2018 , we significantly increased our debt balance with our $ 81 million refinancing , but that transaction also significantly reduced our weighted average interest rate . during 2019 , our debt repayments were significantly higher than our borrowing , excluding borrowings from acquisitions , thereby reducing interest expense as a percentage of revenue . we consider rent plus interest expense as our occupancy costs since most of our debts are for real property where our clubs and restaurants are located . for occupancy cost purposes , we exclude non-real-estate-related interest expense . as a percentage of revenues , total occupancy costs , with its components , are shown below . replace_table_token_19_th income taxes income taxes were an expense of $ 4.9 million in 2019 , a benefit of $ 3.1 million in 2018 , and an expense of $ 6.4 million in 2017. our effective income tax rate was a 20.1 % expense in 2019 , a 17.5 % benefit in 2018 , and a 43.4 % expense in 2017. the components of our annual effective income tax rate are the following : replace_table_token_20_th during fiscal year 2017 , due to higher income before tax , our income tax rate has increased to 37 % , of which has impacted the fourth quarter with the change in rate from 35 % in the first nine months of the year and in prior years . a full year impact in the change in rate of our deferred tax liability has also been recognized in the fourth quarter . the change in deferred tax liability rate for 2017 is due to the 1 % increase in our effective tax rate from the increase in the federal rate and also an increase in the states rate . this amount results from increasing by 2 % the rate applied to our entire deferred tax liabilities at the beginning of the year . the reserve for uncertain tax positions results from an audit of the returns of one of the states in which we operate . as a result of the items discussed above which affected the fiscal year , the fourth quarter effective tax rate rose to 99.6 % expense on a pre-tax loss . on december 22 , 2017 , during our first quarter 2018 , the tax cuts and jobs act ( the “ tax act ” ) was enacted into law , which provides for significant changes to the u.s. internal revenue code of 1986 , as amended , such as a reduction in the statutory federal corporate tax rate from a maximum of 35 % to a flat 21 % rate effective from january 1 , 2018 forward and changes and limitations to certain tax deductions . the company has a fiscal year end of september 30 , so the change to the statutory corporate tax rate results in a blended federal statutory rate of 24.5 % for its fiscal year 2018. the increase in state tax effective rate from 2017 to 2018 was mainly caused by the impact of return-to-provision true-up , which has an expense impact in 2018 while having a benefit in 2017. during fiscal 2019 , the effective income tax rate has normalized to 20.1 % , with the rate difference from the statutory federal corporate tax rate of 21 % coming from offsetting impact of state income tax , net of federal benefit , and tax credits that are mostly fica tip credits . 31 non-gaap financial measures in addition to our financial information presented in accordance with gaap , management uses certain non-gaap financial measures , within the meaning of the sec regulation g , to clarify and enhance understanding of past performance and prospects for the future . generally , a non-gaap financial measure is a numerical measure of a company 's operating performance , financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and

cash flows from investing activities following are our summarized cash flows from investing activities ( in thousands ) : replace_table_token_25_th we opened four new units in 2019 ( acquired two clubs in chicago , illinois and pittsburgh , pennsylvania , and built two new bombshells in houston , texas ) ; opened two new units in 2018 ( one acquired club in kappa , illinois and one built bombshells in pearland , texas ) ; and opened five new units in 2017 ( including two acquired and one reconcepted from a bombshells to a club ) . see note 15 to our consolidated financial statements . as of september 30 , 2019 , 2018 , and 2017 , we had $ 8.9 million , $ 6.4 million , and $ 1.6 million in construction-in-progress related mostly to bombshells opening in the subsequent fiscal year . following is a reconciliation of our additions to property and equipment for the years ended september 30 , 2019 , 2018 , and 2017 ( in thousands ) : replace_table_token_26_th * excludes real estate acquired through business acquisitions . 35 cash flows from financing activities following are our summarized cash flows from financing activities ( in thousands ) : replace_table_token_27_th we purchased shares of our common stock representing 128,040 shares , 0 shares , and 89,685 shares in 2019 , 2018 , and 2017 , respectively . we have paid quarterly dividends of $ 0.03 per share for fiscal 2019 , 2018 and 2017 , except for the fourth quarter of 2019 where we paid $ 0.04 per share . see note 9 to our consolidated financial statements for a detailed discussion of our debt obligations . non-gaap cash flow measure management also uses certain non-gaap cash flow measures such as free cash flows . we define free cash flow as net cash provided by operating activities less maintenance capital expenditures . see table below ( in thousands ) : replace_table_token_28_th we do not include total capital expenditures as a reduction from net cash flow from operating activities to arrive at free cash flow .


 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 flows from investing activities following are our summarized cash flows from investing activities ( in thousands ) : replace_table_token_25_th we opened four new units in 2019 ( acquired two clubs in chicago , illinois and pittsburgh , pennsylvania , and built two new bombshells in houston , texas ) ; opened two new units in 2018 ( one acquired club in kappa , illinois and one built bombshells in pearland , texas ) ; and opened five new units in 2017 ( including two acquired and one reconcepted from a bombshells to a club ) . see note 15 to our consolidated financial statements . as of september 30 , 2019 , 2018 , and 2017 , we had $ 8.9 million , $ 6.4 million , and $ 1.6 million in construction-in-progress related mostly to bombshells opening in the subsequent fiscal year . following is a reconciliation of our additions to property and equipment for the years ended september 30 , 2019 , 2018 , and 2017 ( in thousands ) : replace_table_token_26_th * excludes real estate acquired through business acquisitions . 35 cash flows from financing activities following are our summarized cash flows from financing activities ( in thousands ) : replace_table_token_27_th we purchased shares of our common stock representing 128,040 shares , 0 shares , and 89,685 shares in 2019 , 2018 , and 2017 , respectively . we have paid quarterly dividends of $ 0.03 per share for fiscal 2019 , 2018 and 2017 , except for the fourth quarter of 2019 where we paid $ 0.04 per share . see note 9 to our consolidated financial statements for a detailed discussion of our debt obligations . non-gaap cash flow measure management also uses certain non-gaap cash flow measures such as free cash flows . we define free cash flow as net cash provided by operating activities less maintenance capital expenditures . see table below ( in thousands ) : replace_table_token_28_th we do not include total capital expenditures as a reduction from net cash flow from operating activities to arrive at free cash flow .
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 Suspicious Activity Report : our goal is to use our company 's assets—our brands , financial strength , and the talent and strong commitment of our management and employees—to become more competitive and to accelerate growth . critical accounting policies and estimates management 's discussion and analysis of financial condition and results of operations are based upon our financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states ( “ gaap ” ) . the preparation of these consolidated financial statements requires our management to make assumptions and estimates about future events and apply judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . these estimates are based on management 's historical and industry experience and on various other assumptions that are believed to be reasonable under the circumstances . on a regular basis , we evaluate these accounting policies , assumptions , estimates and judgments to ensure that our financial statements are presented fairly and in accordance with gaap . however , because future events and their effects can not be determined with certainty , actual results may differ from our estimates , and such differences could be material . a full discussion of our significant accounting policies is contained in note 2 to our consolidated financial statements , which is included in item 8 – “ financial statements and supplementary data ” of this report . we believe that the following accounting estimates are the most critical to aid in fully understanding and evaluating our financial results . these estimates require our most difficult , subjective or complex judgments because they relate to matters that are inherently uncertain . we have reviewed these critical accounting policies and estimates and related disclosures with our audit committee . long-lived assets we review long-lived assets , such as property and equipment , and intangible assets subject to amortization , for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable . these events or changes in circumstances include , but are not limited to , significant underperformance relative to historical or projected future operating results , significant changes in the manner of use of the acquired assets or the strategy for the overall business , and significant negative industry or economic trends . recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the estimated undiscounted cash flows over the estimated remaining useful life of the primary asset included in the asset group . if the asset group is not recoverable , the impairment loss is calculated as the excess of the carrying value over the fair value . we define our asset group as an operating club or restaurant location , which is also our reporting unit or the lowest level for which cash flows can be identified . key estimates in the undiscounted cash flow model include management 's estimate of the projected revenues and operating margins . if fair value is used to determine an impairment loss , an additional key assumption is the selection of a weighted-average cost of capital to discount cash flows . assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and are no longer depreciated . during the fourth quarter of 2019 , we impaired two clubs for a total of $ 4.2 million ; during the fourth quarter of 2018 , we impaired one club and one bombshells by a total of $ 1.6 million ; and during the fourth quarter of fiscal 2017 , we impaired one club by $ 385,000. goodwill and other intangible assets goodwill and other intangible assets that have indefinite useful lives are tested annually for impairment during our fourth fiscal quarter , and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired . 22 our impairment calculations require management to make assumptions and to apply judgment in order to estimate fair values . if our actual results are not consistent with our estimates and assumptions , we may be exposed to impairments that could be material . we do not believe that there is a reasonable likelihood that there will be a change in the estimates or assumptions we used that could cause a material change in our calculated impairment charges . for our goodwill impairment review , we have the option to first perform a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value . this assessment is based on several factors , including industry and market conditions , overall financial performance , including an assessment of cash flows in comparison to actual and projected results of prior periods . if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value based on our qualitative analysis , or if we elect to skip this step , we perform a step 1 quantitative analysis to determine the fair value of the reporting unit . the fair value is determined using market-related valuation models , including earnings multiples , discounted cash flows , and comparable asset market values . key estimates in the discounted cash flow model include management 's estimate of the projected revenues and operating margins , along with the selection of a weighted-average cost of capital to discount cash flows . story_separator_special_tag income from operations below is a table which reflects segment contribution to income from operations ( in thousands ) : replace_table_token_18_th our operating margin ( income from operations divided by revenues ) was 19.2 % in 2019 , 16.6 % in 2018 , and 16.0 % in 2017. nightclubs operating margin was 34.1 % , 31.1 % , and 28.2 % in 2019 , 2018 , and 2017 , respectively , primarily due to the closure of underperforming units , fixed expense leverage on increasing sales , and impairment of assets of $ 5.9 million , $ 4.4 million , and $ 6.5 million for 2019 , 2018 , and 2017 , respectively . bombshells operating margin was 7.4 % , 8.5 % , and 16.4 % in 2019 , 2018 , and 2017 , respectively , mainly due to pre-opening expenses in 2019 ( particularly in salaries and wages and selling , general and administrative expenses ) and impairment of assets of $ 1.1 million in 2018 . 30 excluding the impact of settlement of lawsuits , impairment of assets , gain on insurance , gain on patron tax settlement , and gain on sale of businesses and assets , operating margin for the nightclub segment would have been 35.9 % , 35.1 % , and 33.1 % for 2019 , 2018 , and 2017 , respectively . excluding the impact of impairment of assets , loss on sale of assets , and settlement of lawsuits , bombshells segment operating margin would have been 7.6 % , 15.1 % , and 16.4 % for 2019 , 2018 , and 2017 , respectively . refer to discussion of non-gaap financial measures on page 32. interest expense interest expense increased by $ 255,000 from 2018 to 2019 , and increased by $ 1.2 million from 2017 to 2018. the increase in interest expense is due to higher average debt balance partially offset by lower weighted average interest rate . during the first quarter of 2018 , we significantly increased our debt balance with our $ 81 million refinancing , but that transaction also significantly reduced our weighted average interest rate . during 2019 , our debt repayments were significantly higher than our borrowing , excluding borrowings from acquisitions , thereby reducing interest expense as a percentage of revenue . we consider rent plus interest expense as our occupancy costs since most of our debts are for real property where our clubs and restaurants are located . for occupancy cost purposes , we exclude non-real-estate-related interest expense . as a percentage of revenues , total occupancy costs , with its components , are shown below . replace_table_token_19_th income taxes income taxes were an expense of $ 4.9 million in 2019 , a benefit of $ 3.1 million in 2018 , and an expense of $ 6.4 million in 2017. our effective income tax rate was a 20.1 % expense in 2019 , a 17.5 % benefit in 2018 , and a 43.4 % expense in 2017. the components of our annual effective income tax rate are the following : replace_table_token_20_th during fiscal year 2017 , due to higher income before tax , our income tax rate has increased to 37 % , of which has impacted the fourth quarter with the change in rate from 35 % in the first nine months of the year and in prior years . a full year impact in the change in rate of our deferred tax liability has also been recognized in the fourth quarter . the change in deferred tax liability rate for 2017 is due to the 1 % increase in our effective tax rate from the increase in the federal rate and also an increase in the states rate . this amount results from increasing by 2 % the rate applied to our entire deferred tax liabilities at the beginning of the year . the reserve for uncertain tax positions results from an audit of the returns of one of the states in which we operate . as a result of the items discussed above which affected the fiscal year , the fourth quarter effective tax rate rose to 99.6 % expense on a pre-tax loss . on december 22 , 2017 , during our first quarter 2018 , the tax cuts and jobs act ( the “ tax act ” ) was enacted into law , which provides for significant changes to the u.s. internal revenue code of 1986 , as amended , such as a reduction in the statutory federal corporate tax rate from a maximum of 35 % to a flat 21 % rate effective from january 1 , 2018 forward and changes and limitations to certain tax deductions . the company has a fiscal year end of september 30 , so the change to the statutory corporate tax rate results in a blended federal statutory rate of 24.5 % for its fiscal year 2018. the increase in state tax effective rate from 2017 to 2018 was mainly caused by the impact of return-to-provision true-up , which has an expense impact in 2018 while having a benefit in 2017. during fiscal 2019 , the effective income tax rate has normalized to 20.1 % , with the rate difference from the statutory federal corporate tax rate of 21 % coming from offsetting impact of state income tax , net of federal benefit , and tax credits that are mostly fica tip credits . 31 non-gaap financial measures in addition to our financial information presented in accordance with gaap , management uses certain non-gaap financial measures , within the meaning of the sec regulation g , to clarify and enhance understanding of past performance and prospects for the future . generally , a non-gaap financial measure is a numerical measure of a company 's operating performance , financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and

