the company had no bank debt as of december 31 , 2017. the $ 137.4 million of aggregate cash generated by operating activities over the past three years was utilized primarily to pay dividends , fund the company 's defined benefit pension plan , purchase productivity-enhancing capital equipment , entirely repay acquisitions-related short-term debt and fund growth-oriented acquisitions . the company 's cash position increased $ 22.1 million during 2017 to $ 79.7 million at december 31 , 2017. the company generated $ 62.6 million in adjusted earnings before interest , taxes , depreciation and amortization during 2017. from these earnings , the company invested $ 7.8 million primarily in machinery and equipment and returned $ 12.3 million in dividends to shareholders . capital additions for 2018 are presently planned to be in the range of $ 10- $ 15 million primarily for building expansion and machinery and equipment purchases , and are expected to be financed through internally-generated funds and existing lines of credit . net sales for the year ended december 31 , 2017 were $ 379.4 million compared to $ 382.1 million for 2016 , a decrease of 0.7 % or $ 2.7 million . excluding sales from the pccp project of $ 0.7 million in 2017 and $ 9.9 million in 2016 , net sales in 2017 increased 1.8 % or $ 6.5 million . domestic sales , excluding pccp , increased $ 0.1 million while international sales increased 4.9 % or $ 6.4 million . gross profit was $ 98.7 million for 2017 , resulting in gross margin of 26.0 % , compared to gross profit of $ 92.0 million and gross margin of 24.1 % for 2016. gross margin included a non-cash pension settlement charge of $ 2.6 million or 70 basis points in 2017 which did not occur in 2016. excluding the non-cash pension settlement charge , gross margin increased by 260 basis points due principally to favorable sales mix . sg & a was $ 56.8 million and 15.0 % of net sales for 2017 compared to $ 54.5 million and 14.3 % of net sales for 2016. sg & a included a non-cash pension settlement charge of $ 1.4 million or 40 basis points in 2017 which did not occur last year . sg & a included a gain on the sale of property , plant and equipment of $ 1.0 million or 30 basis points in 2016. excluding these items , sg & a decreased slightly compared to last year and as a percentage of sales was flat . operating income was $ 37.9 million , resulting in operating margin of 10.0 % for the 2017 , compared to operating income of $ 35.7 million and operating margin of 9.3 % for 2016. in 2017 , operating income included non-cash impairment charges of $ 4.1 million or 100 basis points and a non-cash pension settlement charge of $ 4.0 million or 110 basis points . in 2016 , operating income included a non-cash impairment charge of $ 1.8 million or 50 basis points and a gain on the sale of property , plant and equipment of $ 0.6 million or 20 basis points . excluding these items , operating income improved $ 9.1 million or 250 basis points due principally to improved gross margin . net income was $ 26.6 million for 2017 compared to $ 24.9 million in 2016 , and earnings per share were $ 1.02 and $ 0.95 for the respective periods . earnings per share for 2017 included non-cash impairment charges of $ 0.10 per share and a non-cash pension settlement charge of $ 0.10 per share . earnings per share for 2016 included a non-cash impairment charge of $ 0.05 per share . the company 's backlog of orders was $ 114.0 million at december 31 , 2017 compared to $ 98.8 million at december 31 , 2016 , an increase of 15.4 % . the increase in backlog was primarily due to increases in the fire protection , municipal and construction markets principally driven by improved economic conditions both domestically and internationally . on january 25 , 2018 , the board of directors authorized the payment of a quarterly dividend of $ 0.125 per share , representing the 272nd consecutive quarterly dividend to be paid by the company . during 2017 , the 14 company again paid increased dividends and thereby attained its 45th consecutive year of increased dividends . these consecutive years of increases continue to position gorman-rupp in the top 50 of all u.s. public companies with respect to number of years of increased dividend payments . the dividend yield at december 31 , 2017 was 1.5 % . the company currently expects to continue its exceptional history of paying regular quarterly dividends and increased annual dividends . however , any future dividends will be reviewed individually and declared by our board of directors at its discretion , dependent on our assessment of the company 's financial condition and business outlook at the applicable time . outlook overall business conditions have continued to improve during 2017 and we are optimistic about our incoming order rate as we enter 2018. however , we continue to experience some softness in the agriculture and certain oil and gas driven markets . increased emphasis on infrastructure improvements at both the federal and state levels coupled with the newly enacted u.s. tax legislation could be additional positive factors over the next several years . the company remains focused on operational efficiencies and will continue to manage expenses closely . our underlying fundamentals remain strong and we remain well positioned to drive long-term growth . story_separator_special_tag income taxes the basic principles related to accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity 's financial statements or tax returns . 22 realization of the company 's deferred tax assets is principally dependent upon the company 's achievement of projected future taxable income , which management believes will be sufficient to fully utilize the deferred tax assets recorded , with the exception of deferred tax associated with certain state tax credits for which a valuation allowance has been recognized . on december 22 , 2017 , the u.s. tax cuts and jobs act ( the tax act ) was enacted . the tax act reduces the federal corporate tax rate on u.s. earnings to 21 % and moves from a global taxation regime to a modified territorial regime . as part of the tax act , u.s. companies are required to pay a tax on historical earnings generated offshore that have not been repatriated to the u.s. companies are required to re-measure their deferred tax assets and liabilities to reflect the lower federal base rate of 21 % . the company recorded provisional estimates based on its initial analysis of the tax act . given the significant complexity of the tax act , anticipated guidance from the u. s. treasury about implementing the tax act , and the potential for additional guidance from the securities and exchange commission or the financial accounting standards board related to the tax act , these estimates may be adjusted during 2018. goodwill and other intangibles the company accounts for goodwill in a purchase business combination as the excess of the cost over the fair value of net assets acquired . business combinations can also result in other intangible assets being recognized . amortization of intangible assets , if applicable , occurs over their estimated useful lives . goodwill is tested annually for impairment as of october 1 , or whenever events or changes in circumstances indicate there may be a possible permanent loss of value in accordance with asc 350 , intangibles - goodwill and other . goodwill is tested for impairment at the reporting unit level and is based on the net assets for each reporting unit , including goodwill and intangible assets . the company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount . if , after assessing the totality of events or circumstances , an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount , then performing a quantitative impairment assessment is unnecessary . in assessing the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount , we identify and assess relevant drivers of fair value and events and circumstances that may impact the fair value and the carrying amount of the reporting unit . the identification of relevant events and circumstances and how these may impact a reporting unit 's fair value or carrying amount involve significant judgments and assumptions . the judgments and assumptions include the identification of macroeconomic conditions , industry and market considerations , cost factors , overall financial performance , company-specific events and share price trends and making the assessment on whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact . when performing a quantitative assessment of goodwill impairment if necessary , or in years where we elect to do so , a discounted cash flow model is used to estimate the fair value of each reporting unit , which considers forecasted cash flows discounted at an estimated weighted-average cost of capital . the forecasted cash flows are based on the company 's long-term operating plan and the weighted-average cost of capital is an estimate of the overall after-tax rate of return . other valuation techniques including comparative market multiples are used when appropriate . discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting units . based upon our fiscal 2017 and 2016 quantitative and qualitative impairment analyses , except for the bayou reporting unit , the company concluded that it is more likely than not that the fair value of our reporting units continues to exceed the respective carrying amounts . in 2017 and 2016 , due primarily to the decreased demand 23 for barge pumps for the marine transportation market driven by low oil prices and overcapacity of inland barges , the bayou reporting unit recorded pre-tax non-cash goodwill impairment charges of $ 0.9 million and $ 1.8 million , respectively . the company 's annual impairment analysis performed as of october 1 , 2017 concluded that national pump company 's ( national ) fair value exceeded its carrying value by approximately 7 % . a sensitivity analysis was performed for the national reporting unit , assuming a hypothetical 50 basis point decrease in the expected long-term growth rate or a hypothetical 50 basis point increase in the weighted average cost of capital , and both scenarios independently yielded an estimated fair value for the national reporting unit slightly above carrying value . if recently depressed u.s. agricultural conditions continue for an extended time , this market 's related growth and profitability assumptions may reduce national 's indicated fair value to require a potential future impairment charge . goodwill relating to the national reporting unit represents 3 % of the company 's december 31 , 2017 total assets . see note 8 , to the consolidated financial

liquidity and sources of capital cash and cash equivalents totaled $ 79.7 million and there was no outstanding bank debt at december 31 , 2017. in addition , the company had $ 21.8 million available in bank lines of credit after deducting $ 9.2 million in outstanding letters of credit primarily related to customer orders . the company was in compliance with its debt covenants , including limits on additional borrowings and maintenance of certain operating and financial ratios , at all times in 2017 and 2016. capital expenditures for 2018 , which are expected to consist principally of building expansion and machinery and equipment purchases , are estimated to be in the range of $ 10- $ 15 million and are expected to be financed through internally generated funds and existing lines of credit . during 2017 , 2016 and 2015 , the company financed its capital improvements and working capital requirements principally through internally generated funds . free cash flow , a non-gaap measure for reporting cash flow , is defined by the company as adjusted earnings before interest , income taxes and depreciation and amortization , less capital expenditures and dividends . the company believes free cash flow provides investors with an important perspective on cash available for investments , acquisitions and working capital requirements . 19 the following table reconciles adjusted earnings before interest , income taxes and depreciation and amortization as reconciled above to free cash flow : replace_table_token_16_th financial cash flow replace_table_token_17_th the change in cash provided by operating activities in 2017 compared to 2016 was primarily due to a decrease in accounts receivable , more than offset by increased inventories and decreased commissions payable and benefit obligations . the change in cash provided by operating activities in 2016 compared to 2015 was primarily due to reductions in inventories and accounts receivable driven by lower sales volume , partially offset by contributions to the company 's defined benefit pension plan .


 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 sources of capital cash and cash equivalents totaled $ 79.7 million and there was no outstanding bank debt at december 31 , 2017. in addition , the company had $ 21.8 million available in bank lines of credit after deducting $ 9.2 million in outstanding letters of credit primarily related to customer orders . the company was in compliance with its debt covenants , including limits on additional borrowings and maintenance of certain operating and financial ratios , at all times in 2017 and 2016. capital expenditures for 2018 , which are expected to consist principally of building expansion and machinery and equipment purchases , are estimated to be in the range of $ 10- $ 15 million and are expected to be financed through internally generated funds and existing lines of credit . during 2017 , 2016 and 2015 , the company financed its capital improvements and working capital requirements principally through internally generated funds . free cash flow , a non-gaap measure for reporting cash flow , is defined by the company as adjusted earnings before interest , income taxes and depreciation and amortization , less capital expenditures and dividends . the company believes free cash flow provides investors with an important perspective on cash available for investments , acquisitions and working capital requirements . 19 the following table reconciles adjusted earnings before interest , income taxes and depreciation and amortization as reconciled above to free cash flow : replace_table_token_16_th financial cash flow replace_table_token_17_th the change in cash provided by operating activities in 2017 compared to 2016 was primarily due to a decrease in accounts receivable , more than offset by increased inventories and decreased commissions payable and benefit obligations . the change in cash provided by operating activities in 2016 compared to 2015 was primarily due to reductions in inventories and accounts receivable driven by lower sales volume , partially offset by contributions to the company 's defined benefit pension plan .
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 Suspicious Activity Report : the company had no bank debt as of december 31 , 2017. the $ 137.4 million of aggregate cash generated by operating activities over the past three years was utilized primarily to pay dividends , fund the company 's defined benefit pension plan , purchase productivity-enhancing capital equipment , entirely repay acquisitions-related short-term debt and fund growth-oriented acquisitions . the company 's cash position increased $ 22.1 million during 2017 to $ 79.7 million at december 31 , 2017. the company generated $ 62.6 million in adjusted earnings before interest , taxes , depreciation and amortization during 2017. from these earnings , the company invested $ 7.8 million primarily in machinery and equipment and returned $ 12.3 million in dividends to shareholders . capital additions for 2018 are presently planned to be in the range of $ 10- $ 15 million primarily for building expansion and machinery and equipment purchases , and are expected to be financed through internally-generated funds and existing lines of credit . net sales for the year ended december 31 , 2017 were $ 379.4 million compared to $ 382.1 million for 2016 , a decrease of 0.7 % or $ 2.7 million . excluding sales from the pccp project of $ 0.7 million in 2017 and $ 9.9 million in 2016 , net sales in 2017 increased 1.8 % or $ 6.5 million . domestic sales , excluding pccp , increased $ 0.1 million while international sales increased 4.9 % or $ 6.4 million . gross profit was $ 98.7 million for 2017 , resulting in gross margin of 26.0 % , compared to gross profit of $ 92.0 million and gross margin of 24.1 % for 2016. gross margin included a non-cash pension settlement charge of $ 2.6 million or 70 basis points in 2017 which did not occur in 2016. excluding the non-cash pension settlement charge , gross margin increased by 260 basis points due principally to favorable sales mix . sg & a was $ 56.8 million and 15.0 % of net sales for 2017 compared to $ 54.5 million and 14.3 % of net sales for 2016. sg & a included a non-cash pension settlement charge of $ 1.4 million or 40 basis points in 2017 which did not occur last year . sg & a included a gain on the sale of property , plant and equipment of $ 1.0 million or 30 basis points in 2016. excluding these items , sg & a decreased slightly compared to last year and as a percentage of sales was flat . operating income was $ 37.9 million , resulting in operating margin of 10.0 % for the 2017 , compared to operating income of $ 35.7 million and operating margin of 9.3 % for 2016. in 2017 , operating income included non-cash impairment charges of $ 4.1 million or 100 basis points and a non-cash pension settlement charge of $ 4.0 million or 110 basis points . in 2016 , operating income included a non-cash impairment charge of $ 1.8 million or 50 basis points and a gain on the sale of property , plant and equipment of $ 0.6 million or 20 basis points . excluding these items , operating income improved $ 9.1 million or 250 basis points due principally to improved gross margin . net income was $ 26.6 million for 2017 compared to $ 24.9 million in 2016 , and earnings per share were $ 1.02 and $ 0.95 for the respective periods . earnings per share for 2017 included non-cash impairment charges of $ 0.10 per share and a non-cash pension settlement charge of $ 0.10 per share . earnings per share for 2016 included a non-cash impairment charge of $ 0.05 per share . the company 's backlog of orders was $ 114.0 million at december 31 , 2017 compared to $ 98.8 million at december 31 , 2016 , an increase of 15.4 % . the increase in backlog was primarily due to increases in the fire protection , municipal and construction markets principally driven by improved economic conditions both domestically and internationally . on january 25 , 2018 , the board of directors authorized the payment of a quarterly dividend of $ 0.125 per share , representing the 272nd consecutive quarterly dividend to be paid by the company . during 2017 , the 14 company again paid increased dividends and thereby attained its 45th consecutive year of increased dividends . these consecutive years of increases continue to position gorman-rupp in the top 50 of all u.s. public companies with respect to number of years of increased dividend payments . the dividend yield at december 31 , 2017 was 1.5 % . the company currently expects to continue its exceptional history of paying regular quarterly dividends and increased annual dividends . however , any future dividends will be reviewed individually and declared by our board of directors at its discretion , dependent on our assessment of the company 's financial condition and business outlook at the applicable time . outlook overall business conditions have continued to improve during 2017 and we are optimistic about our incoming order rate as we enter 2018. however , we continue to experience some softness in the agriculture and certain oil and gas driven markets . increased emphasis on infrastructure improvements at both the federal and state levels coupled with the newly enacted u.s. tax legislation could be additional positive factors over the next several years . the company remains focused on operational efficiencies and will continue to manage expenses closely . our underlying fundamentals remain strong and we remain well positioned to drive long-term growth . story_separator_special_tag income taxes the basic principles related to accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity 's financial statements or tax returns . 22 realization of the company 's deferred tax assets is principally dependent upon the company 's achievement of projected future taxable income , which management believes will be sufficient to fully utilize the deferred tax assets recorded , with the exception of deferred tax associated with certain state tax credits for which a valuation allowance has been recognized . on december 22 , 2017 , the u.s. tax cuts and jobs act ( the tax act ) was enacted . the tax act reduces the federal corporate tax rate on u.s. earnings to 21 % and moves from a global taxation regime to a modified territorial regime . as part of the tax act , u.s. companies are required to pay a tax on historical earnings generated offshore that have not been repatriated to the u.s. companies are required to re-measure their deferred tax assets and liabilities to reflect the lower federal base rate of 21 % . the company recorded provisional estimates based on its initial analysis of the tax act . given the significant complexity of the tax act , anticipated guidance from the u. s. treasury about implementing the tax act , and the potential for additional guidance from the securities and exchange commission or the financial accounting standards board related to the tax act , these estimates may be adjusted during 2018. goodwill and other intangibles the company accounts for goodwill in a purchase business combination as the excess of the cost over the fair value of net assets acquired . business combinations can also result in other intangible assets being recognized . amortization of intangible assets , if applicable , occurs over their estimated useful lives . goodwill is tested annually for impairment as of october 1 , or whenever events or changes in circumstances indicate there may be a possible permanent loss of value in accordance with asc 350 , intangibles - goodwill and other . goodwill is tested for impairment at the reporting unit level and is based on the net assets for each reporting unit , including goodwill and intangible assets . the company has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount . if , after assessing the totality of events or circumstances , an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount , then performing a quantitative impairment assessment is unnecessary . in assessing the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount , we identify and assess relevant drivers of fair value and events and circumstances that may impact the fair value and the carrying amount of the reporting unit . the identification of relevant events and circumstances and how these may impact a reporting unit 's fair value or carrying amount involve significant judgments and assumptions . the judgments and assumptions include the identification of macroeconomic conditions , industry and market considerations , cost factors , overall financial performance , company-specific events and share price trends and making the assessment on whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact . when performing a quantitative assessment of goodwill impairment if necessary , or in years where we elect to do so , a discounted cash flow model is used to estimate the fair value of each reporting unit , which considers forecasted cash flows discounted at an estimated weighted-average cost of capital . the forecasted cash flows are based on the company 's long-term operating plan and the weighted-average cost of capital is an estimate of the overall after-tax rate of return . other valuation techniques including comparative market multiples are used when appropriate . discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting units . based upon our fiscal 2017 and 2016 quantitative and qualitative impairment analyses , except for the bayou reporting unit , the company concluded that it is more likely than not that the fair value of our reporting units continues to exceed the respective carrying amounts . in 2017 and 2016 , due primarily to the decreased demand 23 for barge pumps for the marine transportation market driven by low oil prices and overcapacity of inland barges , the bayou reporting unit recorded pre-tax non-cash goodwill impairment charges of $ 0.9 million and $ 1.8 million , respectively . the company 's annual impairment analysis performed as of october 1 , 2017 concluded that national pump company 's ( national ) fair value exceeded its carrying value by approximately 7 % . a sensitivity analysis was performed for the national reporting unit , assuming a hypothetical 50 basis point decrease in the expected long-term growth rate or a hypothetical 50 basis point increase in the weighted average cost of capital , and both scenarios independently yielded an estimated fair value for the national reporting unit slightly above carrying value . if recently depressed u.s. agricultural conditions continue for an extended time , this market 's related growth and profitability assumptions may reduce national 's indicated fair value to require a potential future impairment charge . goodwill relating to the national reporting unit represents 3 % of the company 's december 31 , 2017 total assets . see note 8 , to the consolidated financial

