- 10 - results of operations the following table compares the company 's consolidated statements of income data for the years ended december 31 , 2017 and 2016 ( $ 000 's omitted ) . replace_table_token_3_th revenue the company 's consolidated revenues from operations increased approximately $ 2,857,000 or 7.4 % for the twelve month period ended december 31 , 2017 when compared to the same period in 2016. the increase in revenue is attributable to an increase in commercial and government shipments at both the atg and cpg . commercial shipments increased approximately $ 1,627,000 or 4.6 % and government shipments increased approximately $ 1,230,000 or 37 % for the twelve month period ended december 31 , 2017. revenues from commercial shipments increased $ 717,000 or 2.6 % at the atg and increased $ 910,000 or 12.4 % at the cpg . revenues from shipments to the government and its prime vendors at the atg increased approximately $ 638,000 or 20.5 % and at the cpg increased approximately $ 592,000 or more than triple the twelve month period ended december 31 , 2017 when compared to the same period in 2016. cost of goods sold cost of goods sold increased approximately $ 2,046,000 or 7.2 % for the twelve month period ended december 31 , 2017 when compared to the same period in 2016. the increase in costs attributable to increased sales volume is approximately $ 574,000. cost of goods sold , as a percentage of revenue , decreased from 74.0 % to 73.9 % . the improvement is attributed to the cpg decrease of cost of goods sold as a percentage of revenue , from 88.3 % to 83.2 % . this is due to the realization of certain expected operational efficiencies attributable to increased production volumes . the improvement is slightly offset by the atg increase of cost of goods sold as a percentage of revenue , from 70.6 % to 71.2 % . this is due , in part , to the mix of product sold as well as higher labor costs and inefficiencies associated with hiring and training of employees . total employment levels dropped from 320 employees at december 31 , 2016 to 315 employees at december 31 , 2017 , due to higher than expected attrition . the company continues to pursue cost saving opportunities in material procurements and other operating efficiencies including capital investments and technical developments in updated and new equipment/machinery as well as investing in the development and training of its labor force . - 11 - selling , general and administrative expenses selling , general and administrative ( sg & a ) expenses increased approximately $ 1,139,000 or 17.1 % for the twelve month period ended december 31 , 2017 compared to the same period in 2016. approximately 46 % of the twelve month period ended december 31 , 2017 sg & a expense relates to labor and labor related costs to support sg & a functions , decreasing from 64 % for the same period in 2016. overall there is a decrease in labor and labor related costs partially offset by the previously disclosed accrual of $ 449,000 pursuant to the terms of the employment agreement for servotronics ' former chairman of the board and chief executive officer . the accrual was made to reflect the death benefits under the terms of his employment contract . the payment equals 50 % of base pay , payable to the estate of dr. trbovich from the date of death through december 31 , 2018. in addition , as discussed in note 5 , employee benefit plans - other postretirement benefit plans , the actuarially calculated future obligation of certain postretirement health and life insurance benefits at december 31 , 2017 is approximately $ 568,000 including the estimated liability related to postretirement benefits for the former executive officer discussed in note 8 , commitments and contingencies . such expenses increased primarily due to increased health and life insurance costs . approximately 9 % of sg & a expense is attributable to professional and legal services . these expenses increased approximately $ 278,000 due to ongoing legal proceedings . depreciation and amortization expense depreciation and amortization expense increased approximately $ 62,000 or 7.5 % for the twelve month period ended december 31 , 2017 compared to the same period in 2016 primarily due to the assets purchased for the atg in response to increased production demands . depreciation expense fluctuates due to variable estimated useful lives of depreciable property ( as identified in note 1 , business description and summary of significant accounting policies , of the accompanying consolidated financial statements ) as well as the amount and nature of capital expenditures in current and previous periods . it is anticipated that the company 's future capital expenditures and related depreciation and amortization expense will , at a minimum , follow the company 's requirements to support its manufacturing delivery commitments and to meet certain information technology related capital expenditure requirements . see also note 8 , commitments and contingencies , of the accompanying consolidated financial statements for more information on capital expenditures . interest expense interest expense remained relatively consistent for the twelve month period ended december 31 , 2017 compared to the same period in 2016. see also note 4 , long-term debt , of the accompanying consolidated financial statements for information on long-term debt . other income components of other income include interest income on cash and cash equivalents and other amounts not directly related to the sale of the company 's products . other income is immaterial in relationship to the consolidated financial statements . income taxes the company 's effective tax rate for operations was 36.5 % in 2017 and 29.0 % in 2016. the effective tax rate in both years reflects federal and state income taxes , permanent non-deductible expenditures , the deduction for domestic production activities and the federal tax credit for research and development story_separator_special_tag - 10 - results of operations the following table compares the company 's consolidated statements of income data for the years ended december 31 , 2017 and 2016 ( $ 000 's omitted ) . replace_table_token_3_th revenue the company 's consolidated revenues from operations increased approximately $ 2,857,000 or 7.4 % for the twelve month period ended december 31 , 2017 when compared to the same period in 2016. the increase in revenue is attributable to an increase in commercial and government shipments at both the atg and cpg . commercial shipments increased approximately $ 1,627,000 or 4.6 % and government shipments increased approximately $ 1,230,000 or 37 % for the twelve month period ended december 31 , 2017. revenues from commercial shipments increased $ 717,000 or 2.6 % at the atg and increased $ 910,000 or 12.4 % at the cpg . revenues from shipments to the government and its prime vendors at the atg increased approximately $ 638,000 or 20.5 % and at the cpg increased approximately $ 592,000 or more than triple the twelve month period ended december 31 , 2017 when compared to the same period in 2016. cost of goods sold cost of goods sold increased approximately $ 2,046,000 or 7.2 % for the twelve month period ended december 31 , 2017 when compared to the same period in 2016. the increase in costs attributable to increased sales volume is approximately $ 574,000. cost of goods sold , as a percentage of revenue , decreased from 74.0 % to 73.9 % . the improvement is attributed to the cpg decrease of cost of goods sold as a percentage of revenue , from 88.3 % to 83.2 % . this is due to the realization of certain expected operational efficiencies attributable to increased production volumes . the improvement is slightly offset by the atg increase of cost of goods sold as a percentage of revenue , from 70.6 % to 71.2 % . this is due , in part , to the mix of product sold as well as higher labor costs and inefficiencies associated with hiring and training of employees . total employment levels dropped from 320 employees at december 31 , 2016 to 315 employees at december 31 , 2017 , due to higher than expected attrition . the company continues to pursue cost saving opportunities in material procurements and other operating efficiencies including capital investments and technical developments in updated and new equipment/machinery as well as investing in the development and training of its labor force . - 11 - selling , general and administrative expenses selling , general and administrative ( sg & a ) expenses increased approximately $ 1,139,000 or 17.1 % for the twelve month period ended december 31 , 2017 compared to the same period in 2016. approximately 46 % of the twelve month period ended december 31 , 2017 sg & a expense relates to labor and labor related costs to support sg & a functions , decreasing from 64 % for the same period in 2016. overall there is a decrease in labor and labor related costs partially offset by the previously disclosed accrual of $ 449,000 pursuant to the terms of the employment agreement for servotronics ' former chairman of the board and chief executive officer . the accrual was made to reflect the death benefits under the terms of his employment contract . the payment equals 50 % of base pay , payable to the estate of dr. trbovich from the date of death through december 31 , 2018. in addition , as discussed in note 5 , employee benefit plans - other postretirement benefit plans , the actuarially calculated future obligation of certain postretirement health and life insurance benefits at december 31 , 2017 is approximately $ 568,000 including the estimated liability related to postretirement benefits for the former executive officer discussed in note 8 , commitments and contingencies . such expenses increased primarily due to increased health and life insurance costs . approximately 9 % of sg & a expense is attributable to professional and legal services . these expenses increased approximately $ 278,000 due to ongoing legal proceedings . depreciation and amortization expense depreciation and amortization expense increased approximately $ 62,000 or 7.5 % for the twelve month period ended december 31 , 2017 compared to the same period in 2016 primarily due to the assets purchased for the atg in response to increased production demands . depreciation expense fluctuates due to variable estimated useful lives of depreciable property ( as identified in note 1 , business description and summary of significant accounting policies , of the accompanying consolidated financial statements ) as well as the amount and nature of capital expenditures in current and previous periods . it is anticipated that the company 's future capital expenditures and related depreciation and amortization expense will , at a minimum , follow the company 's requirements to support its manufacturing delivery commitments and to meet certain information technology related capital expenditure requirements . see also note 8 , commitments and contingencies , of the accompanying consolidated financial statements for more information on capital expenditures . interest expense interest expense remained relatively consistent for the twelve month period ended december 31 , 2017 compared to the same period in 2016. see also note 4 , long-term debt , of the accompanying consolidated financial statements for information on long-term debt . other income components of other income include interest income on cash and cash equivalents and other amounts not directly related to the sale of the company 's products . other income is immaterial in relationship to the consolidated financial statements . income taxes the company 's effective tax rate for operations was 36.5 % in 2017 and 29.0 % in 2016. the effective tax rate in both years reflects federal and state income taxes , permanent non-deductible expenditures , the deduction for domestic production activities and the federal tax credit for research and development

liquidity and capital resources the company 's primary liquidity and capital expenditure requirements relate to working capital needs ; primarily inventory , accounts receivable , accounts payable , capital expenditures for property , plant and equipment and principal payments on debt . at december 31 , 2017 , the company had working capital of approximately $ 20,307,000 ( $ 19,817,000 – 2016 ) of which approximately $ 4,707,000 ( $ 3,515,000 – 2016 ) was comprised of cash and cash equivalents . the company generated approximately $ 3,652,000 in cash from operations during the twelve months ended december 31 , 2017 as compared to $ 2,441,000 during the twelve months ended december 31 , 2016. cash was generated primarily through net income of approximately $ 1,317,000 , adjustments to reconcile net income to net cash of approximately $ 1,361,000 and timing of accrued expenses and employee compensation and benefit costs . the primary use of cash for the company 's operating activities for the twelve months ended december 31 , 2017 include working capital requirements , mainly an increase in accounts receivables of approximately $ 1,062,000 and on time payments to our suppliers of approximately $ 703,000. cash generated and used in operations is consistent with sales volume , customer expectations and competitive pressures . the company 's primary use of cash in its financing and investing activities in the twelve months ended december 31 , 2017 included approximately $ 548,000 of current principal payments on long-term debt , approximately $ 376,000 for cash dividends as well as approximately $ 195,000 for the purchase of treasury shares .


 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 the company 's primary liquidity and capital expenditure requirements relate to working capital needs ; primarily inventory , accounts receivable , accounts payable , capital expenditures for property , plant and equipment and principal payments on debt . at december 31 , 2017 , the company had working capital of approximately $ 20,307,000 ( $ 19,817,000 – 2016 ) of which approximately $ 4,707,000 ( $ 3,515,000 – 2016 ) was comprised of cash and cash equivalents . the company generated approximately $ 3,652,000 in cash from operations during the twelve months ended december 31 , 2017 as compared to $ 2,441,000 during the twelve months ended december 31 , 2016. cash was generated primarily through net income of approximately $ 1,317,000 , adjustments to reconcile net income to net cash of approximately $ 1,361,000 and timing of accrued expenses and employee compensation and benefit costs . the primary use of cash for the company 's operating activities for the twelve months ended december 31 , 2017 include working capital requirements , mainly an increase in accounts receivables of approximately $ 1,062,000 and on time payments to our suppliers of approximately $ 703,000. cash generated and used in operations is consistent with sales volume , customer expectations and competitive pressures . the company 's primary use of cash in its financing and investing activities in the twelve months ended december 31 , 2017 included approximately $ 548,000 of current principal payments on long-term debt , approximately $ 376,000 for cash dividends as well as approximately $ 195,000 for the purchase of treasury shares .
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 Suspicious Activity Report : - 10 - results of operations the following table compares the company 's consolidated statements of income data for the years ended december 31 , 2017 and 2016 ( $ 000 's omitted ) . replace_table_token_3_th revenue the company 's consolidated revenues from operations increased approximately $ 2,857,000 or 7.4 % for the twelve month period ended december 31 , 2017 when compared to the same period in 2016. the increase in revenue is attributable to an increase in commercial and government shipments at both the atg and cpg . commercial shipments increased approximately $ 1,627,000 or 4.6 % and government shipments increased approximately $ 1,230,000 or 37 % for the twelve month period ended december 31 , 2017. revenues from commercial shipments increased $ 717,000 or 2.6 % at the atg and increased $ 910,000 or 12.4 % at the cpg . revenues from shipments to the government and its prime vendors at the atg increased approximately $ 638,000 or 20.5 % and at the cpg increased approximately $ 592,000 or more than triple the twelve month period ended december 31 , 2017 when compared to the same period in 2016. cost of goods sold cost of goods sold increased approximately $ 2,046,000 or 7.2 % for the twelve month period ended december 31 , 2017 when compared to the same period in 2016. the increase in costs attributable to increased sales volume is approximately $ 574,000. cost of goods sold , as a percentage of revenue , decreased from 74.0 % to 73.9 % . the improvement is attributed to the cpg decrease of cost of goods sold as a percentage of revenue , from 88.3 % to 83.2 % . this is due to the realization of certain expected operational efficiencies attributable to increased production volumes . the improvement is slightly offset by the atg increase of cost of goods sold as a percentage of revenue , from 70.6 % to 71.2 % . this is due , in part , to the mix of product sold as well as higher labor costs and inefficiencies associated with hiring and training of employees . total employment levels dropped from 320 employees at december 31 , 2016 to 315 employees at december 31 , 2017 , due to higher than expected attrition . the company continues to pursue cost saving opportunities in material procurements and other operating efficiencies including capital investments and technical developments in updated and new equipment/machinery as well as investing in the development and training of its labor force . - 11 - selling , general and administrative expenses selling , general and administrative ( sg & a ) expenses increased approximately $ 1,139,000 or 17.1 % for the twelve month period ended december 31 , 2017 compared to the same period in 2016. approximately 46 % of the twelve month period ended december 31 , 2017 sg & a expense relates to labor and labor related costs to support sg & a functions , decreasing from 64 % for the same period in 2016. overall there is a decrease in labor and labor related costs partially offset by the previously disclosed accrual of $ 449,000 pursuant to the terms of the employment agreement for servotronics ' former chairman of the board and chief executive officer . the accrual was made to reflect the death benefits under the terms of his employment contract . the payment equals 50 % of base pay , payable to the estate of dr. trbovich from the date of death through december 31 , 2018. in addition , as discussed in note 5 , employee benefit plans - other postretirement benefit plans , the actuarially calculated future obligation of certain postretirement health and life insurance benefits at december 31 , 2017 is approximately $ 568,000 including the estimated liability related to postretirement benefits for the former executive officer discussed in note 8 , commitments and contingencies . such expenses increased primarily due to increased health and life insurance costs . approximately 9 % of sg & a expense is attributable to professional and legal services . these expenses increased approximately $ 278,000 due to ongoing legal proceedings . depreciation and amortization expense depreciation and amortization expense increased approximately $ 62,000 or 7.5 % for the twelve month period ended december 31 , 2017 compared to the same period in 2016 primarily due to the assets purchased for the atg in response to increased production demands . depreciation expense fluctuates due to variable estimated useful lives of depreciable property ( as identified in note 1 , business description and summary of significant accounting policies , of the accompanying consolidated financial statements ) as well as the amount and nature of capital expenditures in current and previous periods . it is anticipated that the company 's future capital expenditures and related depreciation and amortization expense will , at a minimum , follow the company 's requirements to support its manufacturing delivery commitments and to meet certain information technology related capital expenditure requirements . see also note 8 , commitments and contingencies , of the accompanying consolidated financial statements for more information on capital expenditures . interest expense interest expense remained relatively consistent for the twelve month period ended december 31 , 2017 compared to the same period in 2016. see also note 4 , long-term debt , of the accompanying consolidated financial statements for information on long-term debt . other income components of other income include interest income on cash and cash equivalents and other amounts not directly related to the sale of the company 's products . other income is immaterial in relationship to the consolidated financial statements . income taxes the company 's effective tax rate for operations was 36.5 % in 2017 and 29.0 % in 2016. the effective tax rate in both years reflects federal and state income taxes , permanent non-deductible expenditures , the deduction for domestic production activities and the federal tax credit for research and development story_separator_special_tag - 10 - results of operations the following table compares the company 's consolidated statements of income data for the years ended december 31 , 2017 and 2016 ( $ 000 's omitted ) . replace_table_token_3_th revenue the company 's consolidated revenues from operations increased approximately $ 2,857,000 or 7.4 % for the twelve month period ended december 31 , 2017 when compared to the same period in 2016. the increase in revenue is attributable to an increase in commercial and government shipments at both the atg and cpg . commercial shipments increased approximately $ 1,627,000 or 4.6 % and government shipments increased approximately $ 1,230,000 or 37 % for the twelve month period ended december 31 , 2017. revenues from commercial shipments increased $ 717,000 or 2.6 % at the atg and increased $ 910,000 or 12.4 % at the cpg . revenues from shipments to the government and its prime vendors at the atg increased approximately $ 638,000 or 20.5 % and at the cpg increased approximately $ 592,000 or more than triple the twelve month period ended december 31 , 2017 when compared to the same period in 2016. cost of goods sold cost of goods sold increased approximately $ 2,046,000 or 7.2 % for the twelve month period ended december 31 , 2017 when compared to the same period in 2016. the increase in costs attributable to increased sales volume is approximately $ 574,000. cost of goods sold , as a percentage of revenue , decreased from 74.0 % to 73.9 % . the improvement is attributed to the cpg decrease of cost of goods sold as a percentage of revenue , from 88.3 % to 83.2 % . this is due to the realization of certain expected operational efficiencies attributable to increased production volumes . the improvement is slightly offset by the atg increase of cost of goods sold as a percentage of revenue , from 70.6 % to 71.2 % . this is due , in part , to the mix of product sold as well as higher labor costs and inefficiencies associated with hiring and training of employees . total employment levels dropped from 320 employees at december 31 , 2016 to 315 employees at december 31 , 2017 , due to higher than expected attrition . the company continues to pursue cost saving opportunities in material procurements and other operating efficiencies including capital investments and technical developments in updated and new equipment/machinery as well as investing in the development and training of its labor force . - 11 - selling , general and administrative expenses selling , general and administrative ( sg & a ) expenses increased approximately $ 1,139,000 or 17.1 % for the twelve month period ended december 31 , 2017 compared to the same period in 2016. approximately 46 % of the twelve month period ended december 31 , 2017 sg & a expense relates to labor and labor related costs to support sg & a functions , decreasing from 64 % for the same period in 2016. overall there is a decrease in labor and labor related costs partially offset by the previously disclosed accrual of $ 449,000 pursuant to the terms of the employment agreement for servotronics ' former chairman of the board and chief executive officer . the accrual was made to reflect the death benefits under the terms of his employment contract . the payment equals 50 % of base pay , payable to the estate of dr. trbovich from the date of death through december 31 , 2018. in addition , as discussed in note 5 , employee benefit plans - other postretirement benefit plans , the actuarially calculated future obligation of certain postretirement health and life insurance benefits at december 31 , 2017 is approximately $ 568,000 including the estimated liability related to postretirement benefits for the former executive officer discussed in note 8 , commitments and contingencies . such expenses increased primarily due to increased health and life insurance costs . approximately 9 % of sg & a expense is attributable to professional and legal services . these expenses increased approximately $ 278,000 due to ongoing legal proceedings . depreciation and amortization expense depreciation and amortization expense increased approximately $ 62,000 or 7.5 % for the twelve month period ended december 31 , 2017 compared to the same period in 2016 primarily due to the assets purchased for the atg in response to increased production demands . depreciation expense fluctuates due to variable estimated useful lives of depreciable property ( as identified in note 1 , business description and summary of significant accounting policies , of the accompanying consolidated financial statements ) as well as the amount and nature of capital expenditures in current and previous periods . it is anticipated that the company 's future capital expenditures and related depreciation and amortization expense will , at a minimum , follow the company 's requirements to support its manufacturing delivery commitments and to meet certain information technology related capital expenditure requirements . see also note 8 , commitments and contingencies , of the accompanying consolidated financial statements for more information on capital expenditures . interest expense interest expense remained relatively consistent for the twelve month period ended december 31 , 2017 compared to the same period in 2016. see also note 4 , long-term debt , of the accompanying consolidated financial statements for information on long-term debt . other income components of other income include interest income on cash and cash equivalents and other amounts not directly related to the sale of the company 's products . other income is immaterial in relationship to the consolidated financial statements . income taxes the company 's effective tax rate for operations was 36.5 % in 2017 and 29.0 % in 2016. the effective tax rate in both years reflects federal and state income taxes , permanent non-deductible expenditures , the deduction for domestic production activities and the federal tax credit for research and development

