additionally , economic tensions and changes in international trade policies , including higher tariffs on imported goods and materials and renegotiation of free trade agreements , could impact the global market for defense products , services and solutions . u.s. political and economic environment the u.s. continues to face an uncertain political environment and substantial fiscal and economic challenges , which affect funding for discretionary and non-discretionary budgets . the budget control act of 2011 ( bca ) mandated spending caps for all federal discretionary spending across a ten-year period ( fy 2012 through fy 2021 ) , including specific limits for defense and non-defense spending . in prior years , these spending caps have been revised by separate bills for specific fiscal years . most recently , on february 9 , 2018 , congress passed the bipartisan budget act ( bba ) of 2018 , which raised the statutory budget caps for defense spending , including for overseas contingency operations ( oco ) , by $ 80 billion for fy 2018 and by $ 85 billion for fy 2019. the bba also raised non-defense spending by $ 63 billion for fy 2018 and $ 68 billion for fy 2019 and suspended the debt ceiling until march 1 , 2019. the original spending caps - 25 - northrop grumman corporation established by the bca will return for fy 2020 and fy 2021 without another statutory change . similarly , the suspension of the debt ceiling is expected to end on march 1 , 2019 absent further action . on march 23 , 2018 , the president signed the omnibus appropriations act for fy 2018 , which provided $ 1.3 trillion in discretionary funding for federal agencies . in total for fy 2018 , congress appropriated approximately $ 700 billion for national security , including approximately $ 630 billion for base discretionary funding and approximately $ 70 billion in oco funding . on september 28 , 2018 , full-year appropriations for fy 2019 were enacted representing over half of discretionary federal spending . for fy 2019 , congress appropriated approximately $ 716 billion for national security , including approximately $ 647 billion for base discretionary funding and approximately $ 69 billion in oco funding . a continuing resolution was approved to provide further funding for other agencies ( including nasa and other civil agencies ) through december 7 , 2018 , which was subsequently extended through december 21 , 2018. on december 22 , 2018 , u.s. government agencies that had not yet received full-year appropriations and did not otherwise have funding entered into a temporary shutdown . on january 25 , 2019 , a third continuing resolution was enacted , which funds these agencies through february 15 , 2019. the federal budget and debt ceiling are expected to continue to be the subject of considerable debate , which could have significant impacts on defense spending broadly and the company 's programs in particular . for further information on the risks we face from the current political and economic environment , see “ risk factors . ” operating performance assessment and reporting we manage and assess our business based on our performance on contracts and programs ( typically larger contracts or two or more closely-related contracts ) . we recognize sales from our portfolio of long-term contracts as control is transferred to the customer , primarily over time on a cost-to-cost basis ( cost incurred relative to costs estimated at completion ) . as a result , sales tend to fluctuate in concert with costs incurred across our large portfolio of contracts . due to federal acquisition regulation ( far ) rules that govern our u.s. government business and related cost accounting standards ( cas ) , most types of costs are allocable to u.s. government contracts . as such , we do not focus on individual cost groupings ( such as manufacturing , engineering and design labor , subcontractor , material , overhead and general and administrative ( g & a ) costs ) , as much as we do on total contract cost , which is the key driver of our sales and operating income . in evaluating our operating performance , we look primarily at changes in sales and operating income . where applicable , significant fluctuations in operating performance attributable to individual contracts or programs , or changes in a specific cost element across multiple contracts , are described in our analysis . based on this approach and the nature of our operations , the discussion of results of operations below first focuses on our four segments before distinguishing between products and services . changes in sales are generally described in terms of volume , while changes in margin rates are generally described in terms of performance and or contract mix . for purposes of this discussion , volume generally refers to increases or decreases in sales or cost from production/service activity levels and performance generally refers to non-volume related changes in profitability . contract mix generally refers to changes in the ratio of contract type and or lifecycle ( e.g . , cost-type , fixed-price , development , production , and or sustainment ) . consolidated operating results for purposes of the operating results discussion below , we assess our financial and operating performance using certain financial measures that are not calculated in accordance with gaap . these non-gaap financial measures exclude mtm ( expense ) benefit and related tax impacts , and are described as mtm-adjusted net earnings and mtm-adjusted diluted earnings per share . these non-gaap measures may be useful to investors and other users of our financial statements as supplemental measures in evaluating the company 's underlying financial performance by presenting the company 's operating results before the non-operational impact of pension and opb actuarial gains and losses . story_separator_special_tag space sales increased primarily due to higher restricted sales , partially offset by lower volume on the jwst and advanced extremely high frequency ( aehf ) programs . operating income for 2017 increased $ 91 million , or 8 percent , primarily due to higher sales , partially offset by a lower operating margin rate . operating margin rate decreased to 10.6 percent from 11.0 percent principally due to changes in contract mix on manned aircraft programs and a gain of $ 45 million recognized in the prior year associated with the sale of a property , partially offset by the previously discussed $ 56 million favorable eac adjustment largely related to performance incentives . innovation systems replace_table_token_15_th the sales and operating income above reflect the operating results of innovation systems subsequent to the merger date . in our comparative discussion below , we reference pro forma sales prepared in accordance with article 11 of regulation s-x and computed as if the merger had been completed as of january 1 , 2017. refer to note 2 to the consolidated financial statements for additional supplemental consolidated pro forma financial information . this pro forma financial information should not be considered indicative of the results that would have actually occurred if the merger had been consummated on january 1 , 2017 , nor are they indicative of future results . 2018 – innovation systems sales for 2018 were $ 5.6 billion and for 2017 were $ 4.8 billion , each on a pro forma basis . the $ 0.8 billion , or 17 percent , increase reflects higher volume in each business area . defense systems sales reflect increased international volume on armament systems programs and increased volume on the anti-radiation guided missile program and small caliber ammunition programs . flight systems sales were primarily driven by higher ground-based midcourse defense , a350 and f-35 volume . space systems sales increased primarily due to higher government satellite volume . - 32 - northrop grumman corporation mission systems replace_table_token_16_th 2018 – mission systems sales for 2018 increased $ 239 million , or 2 percent , as compared with 2017 , primarily due to higher sensors and processing volume , partially offset by lower cyber and isr and advanced capabilities volume . sensors and processing sales increased principally due to higher volume on restricted programs , communications programs , f-35 and electro-optical/infrared ( eo/ir ) self-protection programs . cyber and isr sales decreased primarily due to ramp-down on a restricted isr program . advanced capabilities sales reflect lower volume on the joint national integration center research and development ( jrdc ) program and follow on activity , partially offset by higher volume on several programs , including the integrated air and missile defense battle command system program . operating income for 2018 increased $ 78 million , or 5 percent , due to a higher operating margin rate and higher sales . operating margin rate increased to 13.0 percent from 12.6 percent primarily due to improved performance on cyber and isr and sensors and processing programs , partially offset by a $ 32 million benefit recognized in the prior year in connection with the 2017 cost claim described above . 2017 – mission systems sales for 2017 increased $ 309 million , or 3 percent , as compared with 2016 primarily due to higher sensors and processing volume , partially offset by lower cyber and isr volume . sensors and processing sales increased principally due to higher volume on f-35 sensors , eo/ir self-protection programs , communications programs and the sabr program . these increases were partially offset by lower volume on international ground-based radar programs . cyber and isr sales decreased primarily due to lower volume on restricted isr programs . operating income for 2017 decreased $ 26 million , or 2 percent , primarily due to a lower operating margin rate , partially offset by higher sales and $ 32 million recognized in connection with the 2017 cost claim described above . operating margin rate decreased to 12.6 percent from 13.2 percent primarily due to lower margin rates on sensors and processing and cyber and isr programs principally resulting from lower performance and changes in contract mix . this decrease was partially offset by improved margin rates at advanced capabilities primarily due to the prior year including a $ 49 million forward loss provision on an advanced capabilities program . technology services replace_table_token_17_th 2018 – technology services sales for 2018 decreased $ 390 million , or 8 percent , as compared with 2017 , due to lower volume on advanced defense services and system modernization and services programs , partially offset by higher volume on global logistics and modernization programs . advanced defense services and system modernization and services sales decreased primarily due to the completion of several programs , including jrdc , partially offset by higher volume on the saudi arabian ministry of national guard training support program ( through our interest in a joint venture for which we consolidate the financial results ) . global logistics and modernization sales increased primarily due to higher volume for several programs , including the special electronic mission aircraft program , partially offset by lower volume from the completion of the kc-10 program . operating income for 2018 decreased $ 6 million , or 1 percent , primarily due to lower sales , partially offset by a higher operating margin rate . operating margin rate increased to 10.3 percent from 9.6 percent primarily due to the close-out of a state it outsourcing program . 2017 – technology services sales for 2017 decreased $ 78 million , or 2 percent , as compared with 2016 , primarily due to lower volume on system modernization and services programs , partially offset by higher volume on global logistics and modernization programs . system modernization and services sales decreased principally due to the completion of several programs in 2016 and 2017. global logistics and modernization sales increased primarily

liquidity and capital resources we endeavor to ensure the most efficient conversion of operating income into cash for deployment in our business and to maximize shareholder value through cash deployment activities . in addition to our cash position , we use various financial measures to assist in capital deployment decision-making , including cash provided by operating activities and free cash flow , a non-gaap measure described in more detail below . as of december 31 , 2018 , we had cash and cash equivalents of $ 1.6 billion ; approximately $ 250 million was held outside of the u.s. by foreign subsidiaries . cash and cash equivalents and cash generated from operating activities , supplemented by borrowings under credit facilities , commercial paper and or in the capital markets , if needed , are expected to be sufficient to fund our operations for at least the next 12 months . capital expenditure commitments were $ 784 million at december 31 , 2018 , and are expected to be paid with cash on hand . - 35 - northrop grumman corporation operating cash flow the table below summarizes key components of cash flow provided by operating activities : replace_table_token_20_th ( 1 ) includes depreciation and amortization , mtm ( expense ) benefit , stock based compensation expense and deferred income taxes . 2018 – net cash provided by operating activities for 2018 increased by $ 1.2 billion , or 46 percent , as compared with 2017 , principally due to higher net earnings , which include the addition of innovation systems , and improved trade working capital performance .


 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 we endeavor to ensure the most efficient conversion of operating income into cash for deployment in our business and to maximize shareholder value through cash deployment activities . in addition to our cash position , we use various financial measures to assist in capital deployment decision-making , including cash provided by operating activities and free cash flow , a non-gaap measure described in more detail below . as of december 31 , 2018 , we had cash and cash equivalents of $ 1.6 billion ; approximately $ 250 million was held outside of the u.s. by foreign subsidiaries . cash and cash equivalents and cash generated from operating activities , supplemented by borrowings under credit facilities , commercial paper and or in the capital markets , if needed , are expected to be sufficient to fund our operations for at least the next 12 months . capital expenditure commitments were $ 784 million at december 31 , 2018 , and are expected to be paid with cash on hand . - 35 - northrop grumman corporation operating cash flow the table below summarizes key components of cash flow provided by operating activities : replace_table_token_20_th ( 1 ) includes depreciation and amortization , mtm ( expense ) benefit , stock based compensation expense and deferred income taxes . 2018 – net cash provided by operating activities for 2018 increased by $ 1.2 billion , or 46 percent , as compared with 2017 , principally due to higher net earnings , which include the addition of innovation systems , and improved trade working capital performance .
```    
 Suspicious Activity Report : additionally , economic tensions and changes in international trade policies , including higher tariffs on imported goods and materials and renegotiation of free trade agreements , could impact the global market for defense products , services and solutions . u.s. political and economic environment the u.s. continues to face an uncertain political environment and substantial fiscal and economic challenges , which affect funding for discretionary and non-discretionary budgets . the budget control act of 2011 ( bca ) mandated spending caps for all federal discretionary spending across a ten-year period ( fy 2012 through fy 2021 ) , including specific limits for defense and non-defense spending . in prior years , these spending caps have been revised by separate bills for specific fiscal years . most recently , on february 9 , 2018 , congress passed the bipartisan budget act ( bba ) of 2018 , which raised the statutory budget caps for defense spending , including for overseas contingency operations ( oco ) , by $ 80 billion for fy 2018 and by $ 85 billion for fy 2019. the bba also raised non-defense spending by $ 63 billion for fy 2018 and $ 68 billion for fy 2019 and suspended the debt ceiling until march 1 , 2019. the original spending caps - 25 - northrop grumman corporation established by the bca will return for fy 2020 and fy 2021 without another statutory change . similarly , the suspension of the debt ceiling is expected to end on march 1 , 2019 absent further action . on march 23 , 2018 , the president signed the omnibus appropriations act for fy 2018 , which provided $ 1.3 trillion in discretionary funding for federal agencies . in total for fy 2018 , congress appropriated approximately $ 700 billion for national security , including approximately $ 630 billion for base discretionary funding and approximately $ 70 billion in oco funding . on september 28 , 2018 , full-year appropriations for fy 2019 were enacted representing over half of discretionary federal spending . for fy 2019 , congress appropriated approximately $ 716 billion for national security , including approximately $ 647 billion for base discretionary funding and approximately $ 69 billion in oco funding . a continuing resolution was approved to provide further funding for other agencies ( including nasa and other civil agencies ) through december 7 , 2018 , which was subsequently extended through december 21 , 2018. on december 22 , 2018 , u.s. government agencies that had not yet received full-year appropriations and did not otherwise have funding entered into a temporary shutdown . on january 25 , 2019 , a third continuing resolution was enacted , which funds these agencies through february 15 , 2019. the federal budget and debt ceiling are expected to continue to be the subject of considerable debate , which could have significant impacts on defense spending broadly and the company 's programs in particular . for further information on the risks we face from the current political and economic environment , see “ risk factors . ” operating performance assessment and reporting we manage and assess our business based on our performance on contracts and programs ( typically larger contracts or two or more closely-related contracts ) . we recognize sales from our portfolio of long-term contracts as control is transferred to the customer , primarily over time on a cost-to-cost basis ( cost incurred relative to costs estimated at completion ) . as a result , sales tend to fluctuate in concert with costs incurred across our large portfolio of contracts . due to federal acquisition regulation ( far ) rules that govern our u.s. government business and related cost accounting standards ( cas ) , most types of costs are allocable to u.s. government contracts . as such , we do not focus on individual cost groupings ( such as manufacturing , engineering and design labor , subcontractor , material , overhead and general and administrative ( g & a ) costs ) , as much as we do on total contract cost , which is the key driver of our sales and operating income . in evaluating our operating performance , we look primarily at changes in sales and operating income . where applicable , significant fluctuations in operating performance attributable to individual contracts or programs , or changes in a specific cost element across multiple contracts , are described in our analysis . based on this approach and the nature of our operations , the discussion of results of operations below first focuses on our four segments before distinguishing between products and services . changes in sales are generally described in terms of volume , while changes in margin rates are generally described in terms of performance and or contract mix . for purposes of this discussion , volume generally refers to increases or decreases in sales or cost from production/service activity levels and performance generally refers to non-volume related changes in profitability . contract mix generally refers to changes in the ratio of contract type and or lifecycle ( e.g . , cost-type , fixed-price , development , production , and or sustainment ) . consolidated operating results for purposes of the operating results discussion below , we assess our financial and operating performance using certain financial measures that are not calculated in accordance with gaap . these non-gaap financial measures exclude mtm ( expense ) benefit and related tax impacts , and are described as mtm-adjusted net earnings and mtm-adjusted diluted earnings per share . these non-gaap measures may be useful to investors and other users of our financial statements as supplemental measures in evaluating the company 's underlying financial performance by presenting the company 's operating results before the non-operational impact of pension and opb actuarial gains and losses . story_separator_special_tag space sales increased primarily due to higher restricted sales , partially offset by lower volume on the jwst and advanced extremely high frequency ( aehf ) programs . operating income for 2017 increased $ 91 million , or 8 percent , primarily due to higher sales , partially offset by a lower operating margin rate . operating margin rate decreased to 10.6 percent from 11.0 percent principally due to changes in contract mix on manned aircraft programs and a gain of $ 45 million recognized in the prior year associated with the sale of a property , partially offset by the previously discussed $ 56 million favorable eac adjustment largely related to performance incentives . innovation systems replace_table_token_15_th the sales and operating income above reflect the operating results of innovation systems subsequent to the merger date . in our comparative discussion below , we reference pro forma sales prepared in accordance with article 11 of regulation s-x and computed as if the merger had been completed as of january 1 , 2017. refer to note 2 to the consolidated financial statements for additional supplemental consolidated pro forma financial information . this pro forma financial information should not be considered indicative of the results that would have actually occurred if the merger had been consummated on january 1 , 2017 , nor are they indicative of future results . 2018 – innovation systems sales for 2018 were $ 5.6 billion and for 2017 were $ 4.8 billion , each on a pro forma basis . the $ 0.8 billion , or 17 percent , increase reflects higher volume in each business area . defense systems sales reflect increased international volume on armament systems programs and increased volume on the anti-radiation guided missile program and small caliber ammunition programs . flight systems sales were primarily driven by higher ground-based midcourse defense , a350 and f-35 volume . space systems sales increased primarily due to higher government satellite volume . - 32 - northrop grumman corporation mission systems replace_table_token_16_th 2018 – mission systems sales for 2018 increased $ 239 million , or 2 percent , as compared with 2017 , primarily due to higher sensors and processing volume , partially offset by lower cyber and isr and advanced capabilities volume . sensors and processing sales increased principally due to higher volume on restricted programs , communications programs , f-35 and electro-optical/infrared ( eo/ir ) self-protection programs . cyber and isr sales decreased primarily due to ramp-down on a restricted isr program . advanced capabilities sales reflect lower volume on the joint national integration center research and development ( jrdc ) program and follow on activity , partially offset by higher volume on several programs , including the integrated air and missile defense battle command system program . operating income for 2018 increased $ 78 million , or 5 percent , due to a higher operating margin rate and higher sales . operating margin rate increased to 13.0 percent from 12.6 percent primarily due to improved performance on cyber and isr and sensors and processing programs , partially offset by a $ 32 million benefit recognized in the prior year in connection with the 2017 cost claim described above . 2017 – mission systems sales for 2017 increased $ 309 million , or 3 percent , as compared with 2016 primarily due to higher sensors and processing volume , partially offset by lower cyber and isr volume . sensors and processing sales increased principally due to higher volume on f-35 sensors , eo/ir self-protection programs , communications programs and the sabr program . these increases were partially offset by lower volume on international ground-based radar programs . cyber and isr sales decreased primarily due to lower volume on restricted isr programs . operating income for 2017 decreased $ 26 million , or 2 percent , primarily due to a lower operating margin rate , partially offset by higher sales and $ 32 million recognized in connection with the 2017 cost claim described above . operating margin rate decreased to 12.6 percent from 13.2 percent primarily due to lower margin rates on sensors and processing and cyber and isr programs principally resulting from lower performance and changes in contract mix . this decrease was partially offset by improved margin rates at advanced capabilities primarily due to the prior year including a $ 49 million forward loss provision on an advanced capabilities program . technology services replace_table_token_17_th 2018 – technology services sales for 2018 decreased $ 390 million , or 8 percent , as compared with 2017 , due to lower volume on advanced defense services and system modernization and services programs , partially offset by higher volume on global logistics and modernization programs . advanced defense services and system modernization and services sales decreased primarily due to the completion of several programs , including jrdc , partially offset by higher volume on the saudi arabian ministry of national guard training support program ( through our interest in a joint venture for which we consolidate the financial results ) . global logistics and modernization sales increased primarily due to higher volume for several programs , including the special electronic mission aircraft program , partially offset by lower volume from the completion of the kc-10 program . operating income for 2018 decreased $ 6 million , or 1 percent , primarily due to lower sales , partially offset by a higher operating margin rate . operating margin rate increased to 10.3 percent from 9.6 percent primarily due to the close-out of a state it outsourcing program . 2017 – technology services sales for 2017 decreased $ 78 million , or 2 percent , as compared with 2016 , primarily due to lower volume on system modernization and services programs , partially offset by higher volume on global logistics and modernization programs . system modernization and services sales decreased principally due to the completion of several programs in 2016 and 2017. global logistics and modernization sales increased primarily

