current trends and outlook over the last five years , we estimate the pool industry grew from 2 % to 4 % per year due to growth in the installed base of pools , which helped drive pool maintenance growth , improvement in remodeling and replacement activity and annual growth in the pool construction market . improvements in general external market factors in the united states including consumer confidence , employment , housing , consumer financing and economic expansion , largely support our base business growth . we feel these positive external trends have promoted increased consumer spending on higher value products that enhance swimming pools and outdoor living spaces . our consistent base business sales growth reflects industry growth plus market share gains from existing customers expanding their businesses and our success in newer market initiatives such as hardscapes and commercial pools . while we estimate that new pool construction increased to approximately 75,000 new units in 2017 from the historically low levels experienced during the economic downturn , construction levels are still down approximately 65 % compared to peak historical levels and down approximately 50 % to 55 % from what we consider normal levels . favorable weather plays a role in industry growth by accelerating growth in any given year , while unfavorable weather impedes growth . in 2017 specifically , our industry experienced modestly favorable weather overall , despite the severe storms that impacted our industry in texas and florida in september and october . due to the repairs required following major storms , sales mostly recovered by the end of the year . in 2016 , an earlier start to the pool season due to warmer than usual temperatures and overall favorable weather throughout the rest of the year benefited the industry as a whole . in 2015 , excessive precipitation impacted our industry in the second quarter ; however a mild fall and delayed winter alleviated any contraction in industry growth rates . in establishing our outlook each year , we base our growth assumptions on normal weather conditions and do not incorporate alternative weather predictions into our guidance . we believe there is potential for continued market recovery over the next several years . the great recession created a build-up of deferred replacement and remodeling activity , which we have largely fulfilled over the past seven years . we expect that new pool and irrigation construction levels will continue to grow incrementally , but we believe that consumer investments in outdoor living spaces beyond the swimming pool will generate greater growth over the next four to seven years . additionally , we believe favorable demographics from an aging population and southern migration are ideal for increased residential outdoor living investment . we expect that market conditions in the united states will continue to improve , enabling further replacement , remodeling and new construction activity and that the industry will realize an annual growth rate of approximately 4 % to 7 % over this time period . as economic trends indicate that consumer spending has largely recovered and that residential construction activities will likely continue to improve , we believe that we are well positioned to take advantage of both the market expansion and the inherent long‑term growth opportunities in our industry . we established our initial outlook for 2018 based on reasonable expectations of organic market share growth , ongoing leverage of infrastructure and continuous process improvements . for 2018 , we expect the macroeconomic environment in the united states will be quite similar to 2017 . we expect to continue to gain market share through our comprehensive service and product offerings , which we continually diversify through internal sourcing initiatives and expansion into new markets . we also plan to broaden our geographic presence by opening 4 to 6 new sales centers in 2018 and by making selective acquisitions when appropriate opportunities arise . the following section summarizes our outlook for 2018 : we expect sales growth of 6 % to 7 % , impacted by the following factors and assumptions : ◦ assumed normal weather patterns for 2018 ; ◦ anticipated continued growth from replacement , remodeling and construction activity and market expansion through newer product offerings like hardscapes and commercial pools ; ◦ estimated 1 % growth from acquisitions completed throughout 2017 ; ◦ inflationary product cost increases of approximately 1 % to 2 % ; and ◦ one additional selling day for the full year for 2018 compared to 2017 due to an extra selling day in the fourth quarter ( neutral selling days for all other quarters ) . we project relatively neutral gross margin trends for the full year , as we believe our sales growth will continue to be weighted toward sales of lower margin discretionary products . adverse margin impacts should be offset by benefits from our efforts in supply chain management and internal pricing initiatives . we expect operating expenses will grow at approximately 60 % of the rate of our gross profit growth , reflecting inflationary increases and incremental costs to support our sales growth expectations . the main challenges in achieving this metric include managing people and facility costs in tight labor and real estate markets . however , we continue to see significant opportunity to leverage our existing infrastructure to achieve this goal . 20 our provision for income taxes for 2017 was impacted by both u.s. tax reform and asu 2016-09. as a result of the recently enacted tax legislation , we recorded a provisional tax benefit of $ 12.0 million in the fourth quarter of 2017 , which primarily reflects the re-measurement of our net deferred tax liability . story_separator_special_tag as a result of these uncertainties , our total income tax provision may fluctuate on a quarterly basis . each year , we prepare a return to provision analysis upon filing our income tax returns . based on this hindsight analysis , we concluded that our prior year income tax provision was within a range of acceptable estimates and that our provision calculation methodology is appropriate . differences between our effective income tax rate and federal and state statutory tax rates are primarily due to valuation allowances recorded for certain of our international subsidiaries with tax losses . performance-based compensation accrual the compensation committee of our board ( compensation committee ) annually reviews our compensation structure to oversee management 's implementation of maintaining a program that attracts , retains , develops and motivates employees without leading to unnecessary risk taking . our compensation packages include bonus plans that are specific to each group of eligible participants and their levels and areas of responsibility . the majority of our bonus plans have annual cash payments that are based primarily on objective performance criteria . we calculate bonuses based on the achievement of certain key measurable financial and operational results , including operating income and diluted earnings per share ( eps ) . 24 we use an annual cash performance award ( annual bonus ) to focus corporate behavior on short-term goals for growth , financial performance and other specific financial and business improvement metrics . management sets the company 's annual bonus objectives at the beginning of the bonus plan year using both historical information and forecasted results of operations for the current plan year . management also establishes specific business improvement objectives for both our operating units and corporate employees . the compensation committee approves objectives for bonus plans involving executive management . we also utilize our medium-term ( three-year ) strategic plan incentive program ( spip ) to provide senior management with an additional cash-based , pay-for-performance award based upon the achievement of specified earnings growth objectives . payouts through the spip are based on three-year compounded annual growth rates ( cagrs ) of our diluted eps . we record annual performance-based compensation accruals based on operating income achieved in a quarter as a percentage of total expected operating income for the year . we estimate total expected operating income for the current plan year using management 's estimate of the total overall incentives earned per the stated bonus plan objectives . starting in june , and continuing each quarter through our fiscal year end , we adjust our estimated performance-based compensation accrual based on our detailed analysis of each bonus plan , the participants ' progress toward achievement of their specific objectives and management 's estimates related to the discretionary components of the bonus plans , if any . we record spip accruals based on our total expected eps for the current fiscal year and cagr estimates for the succeeding two years . we base our current fiscal year estimates on the same assumptions used for our annual bonus calculation and our cagr estimates on historical growth rates and projections for the remainder of the three-year performance periods . our quarterly performance-based compensation expense and accrual balances may vary relative to actual annual bonus expense and payouts due to the following : differences between estimated and actual performance ; our projections related to achievement of multiple-year performance objectives for our spip ; and the discretionary components of the bonus plans . we generally make bonus payments at the end of february following the most recently completed fiscal year . each year , we compare the actual bonus payouts to amounts accrued at the previous year end to determine the accuracy of our performance‑based compensation estimates . based on our hindsight analysis , we concluded that our performance-based compensation accrual balances were within a reasonable range of acceptable estimates and that our estimation methodologies are appropriate . impairment of goodwill and other indefinite-lived intangible assets goodwill is our largest intangible asset . at december 31 , 2017 , our goodwill balance was $ 189.4 million , representing approximately 17 % of total assets . goodwill represents the excess of the amount we paid to acquire a company over the estimated fair value of tangible assets and identifiable intangible assets acquired , less liabilities assumed . we perform our goodwill impairment test in the fourth quarter of each year or on a more frequent basis if events or changes in circumstances occur that indicate potential impairment . if the estimated fair value of any of our reporting units falls below its carrying value , we compare the estimated fair value of the reporting unit 's goodwill to its carrying value . if the carrying value of a reporting unit 's goodwill exceeds its estimated fair value , we recognize the difference as an impairment loss in operating income . since we define an operating segment as an individual sales center and we do not have operations below the sales center level , our reporting unit is an individual sales center . as of october 1 , 2017 , we had 221 reporting units with allocated goodwill balances . the most significant goodwill balance for a reporting unit was $ 5.7 million and the average goodwill balance was $ 0.8 million . in october 2017 , 2016 and 2015 , we performed our annual goodwill impairment test and did not identify any goodwill impairment at the reporting unit level . in the third quarter of 2016 , we recorded a $ 0.6 million goodwill impairment charge related to an at-risk reporting unit in quebec , canada . we continue to monitor this location 's results , which came in above expectations at the end of the 2017 pool season . as of december 31 , 2017 , the remaining goodwill balance for this reporting unit was $ 1.8 million . we estimate the fair value of our reporting units based on

sources and uses of cash the following table summarizes our cash flows ( in thousands ) : replace_table_token_23_th cash provided by operations of $ 175.3 million for 2017 increased compared to 2016 primarily due to the increase in net income , partially offset by changes in working capital . excluding the net income benefit from tax changes , cash provided by operations approximates net income for 2017. the timing of our early buy inventory purchases can create fluctuations in inventory and accounts payable balances from year to year . a change in the timing of one of our inventory early buy programs in 2017 compared to 2016 resulted in higher inventory but lower accounts payable balances at year end , resulting in a negative impact to our 2017 operating cash flows . in 2016 , cash provided by operations improved compared to 2015 primarily due to our net income growth . cash used in investing activities decreased in 2017 due to a decrease of $ 6.9 million in payments for acquisitions compared to 2016. this was offset by a n additional $ 5.0 million of net capital expenditures in 2017 compared to 2016 to fund our continued investment in new vehicles , equipment and technology . related to the increase from 2015 to 2016 , our 2016 cash used in investing activities reflects $ 19.7 million in net payments to fund acquisitions compared to $ 4.5 million in net payments to fund acquisitions in 2015 . cash used in financing activities increased in 2017 , primarily due to lower net borrowings on our debt arrangements . we had $ 82.1 million of net proceeds from our debt arrangements in 2017 compared to $ 109.4 million in 2016 , primarily as a result of lower share repurchases . we repurchased $ 143.2 million of shares in the open market in 2017 compared to $ 175.6 million in 2016 . in 2015 , we had net proceeds from our debt arrangements of $ 8.9 million , while we repurchased $ 92.4 million of shares in the open market .


 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.
     ```sources and uses of cash the following table summarizes our cash flows ( in thousands ) : replace_table_token_23_th cash provided by operations of $ 175.3 million for 2017 increased compared to 2016 primarily due to the increase in net income , partially offset by changes in working capital . excluding the net income benefit from tax changes , cash provided by operations approximates net income for 2017. the timing of our early buy inventory purchases can create fluctuations in inventory and accounts payable balances from year to year . a change in the timing of one of our inventory early buy programs in 2017 compared to 2016 resulted in higher inventory but lower accounts payable balances at year end , resulting in a negative impact to our 2017 operating cash flows . in 2016 , cash provided by operations improved compared to 2015 primarily due to our net income growth . cash used in investing activities decreased in 2017 due to a decrease of $ 6.9 million in payments for acquisitions compared to 2016. this was offset by a n additional $ 5.0 million of net capital expenditures in 2017 compared to 2016 to fund our continued investment in new vehicles , equipment and technology . related to the increase from 2015 to 2016 , our 2016 cash used in investing activities reflects $ 19.7 million in net payments to fund acquisitions compared to $ 4.5 million in net payments to fund acquisitions in 2015 . cash used in financing activities increased in 2017 , primarily due to lower net borrowings on our debt arrangements . we had $ 82.1 million of net proceeds from our debt arrangements in 2017 compared to $ 109.4 million in 2016 , primarily as a result of lower share repurchases . we repurchased $ 143.2 million of shares in the open market in 2017 compared to $ 175.6 million in 2016 . in 2015 , we had net proceeds from our debt arrangements of $ 8.9 million , while we repurchased $ 92.4 million of shares in the open market .
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 Suspicious Activity Report : current trends and outlook over the last five years , we estimate the pool industry grew from 2 % to 4 % per year due to growth in the installed base of pools , which helped drive pool maintenance growth , improvement in remodeling and replacement activity and annual growth in the pool construction market . improvements in general external market factors in the united states including consumer confidence , employment , housing , consumer financing and economic expansion , largely support our base business growth . we feel these positive external trends have promoted increased consumer spending on higher value products that enhance swimming pools and outdoor living spaces . our consistent base business sales growth reflects industry growth plus market share gains from existing customers expanding their businesses and our success in newer market initiatives such as hardscapes and commercial pools . while we estimate that new pool construction increased to approximately 75,000 new units in 2017 from the historically low levels experienced during the economic downturn , construction levels are still down approximately 65 % compared to peak historical levels and down approximately 50 % to 55 % from what we consider normal levels . favorable weather plays a role in industry growth by accelerating growth in any given year , while unfavorable weather impedes growth . in 2017 specifically , our industry experienced modestly favorable weather overall , despite the severe storms that impacted our industry in texas and florida in september and october . due to the repairs required following major storms , sales mostly recovered by the end of the year . in 2016 , an earlier start to the pool season due to warmer than usual temperatures and overall favorable weather throughout the rest of the year benefited the industry as a whole . in 2015 , excessive precipitation impacted our industry in the second quarter ; however a mild fall and delayed winter alleviated any contraction in industry growth rates . in establishing our outlook each year , we base our growth assumptions on normal weather conditions and do not incorporate alternative weather predictions into our guidance . we believe there is potential for continued market recovery over the next several years . the great recession created a build-up of deferred replacement and remodeling activity , which we have largely fulfilled over the past seven years . we expect that new pool and irrigation construction levels will continue to grow incrementally , but we believe that consumer investments in outdoor living spaces beyond the swimming pool will generate greater growth over the next four to seven years . additionally , we believe favorable demographics from an aging population and southern migration are ideal for increased residential outdoor living investment . we expect that market conditions in the united states will continue to improve , enabling further replacement , remodeling and new construction activity and that the industry will realize an annual growth rate of approximately 4 % to 7 % over this time period . as economic trends indicate that consumer spending has largely recovered and that residential construction activities will likely continue to improve , we believe that we are well positioned to take advantage of both the market expansion and the inherent long‑term growth opportunities in our industry . we established our initial outlook for 2018 based on reasonable expectations of organic market share growth , ongoing leverage of infrastructure and continuous process improvements . for 2018 , we expect the macroeconomic environment in the united states will be quite similar to 2017 . we expect to continue to gain market share through our comprehensive service and product offerings , which we continually diversify through internal sourcing initiatives and expansion into new markets . we also plan to broaden our geographic presence by opening 4 to 6 new sales centers in 2018 and by making selective acquisitions when appropriate opportunities arise . the following section summarizes our outlook for 2018 : we expect sales growth of 6 % to 7 % , impacted by the following factors and assumptions : ◦ assumed normal weather patterns for 2018 ; ◦ anticipated continued growth from replacement , remodeling and construction activity and market expansion through newer product offerings like hardscapes and commercial pools ; ◦ estimated 1 % growth from acquisitions completed throughout 2017 ; ◦ inflationary product cost increases of approximately 1 % to 2 % ; and ◦ one additional selling day for the full year for 2018 compared to 2017 due to an extra selling day in the fourth quarter ( neutral selling days for all other quarters ) . we project relatively neutral gross margin trends for the full year , as we believe our sales growth will continue to be weighted toward sales of lower margin discretionary products . adverse margin impacts should be offset by benefits from our efforts in supply chain management and internal pricing initiatives . we expect operating expenses will grow at approximately 60 % of the rate of our gross profit growth , reflecting inflationary increases and incremental costs to support our sales growth expectations . the main challenges in achieving this metric include managing people and facility costs in tight labor and real estate markets . however , we continue to see significant opportunity to leverage our existing infrastructure to achieve this goal . 20 our provision for income taxes for 2017 was impacted by both u.s. tax reform and asu 2016-09. as a result of the recently enacted tax legislation , we recorded a provisional tax benefit of $ 12.0 million in the fourth quarter of 2017 , which primarily reflects the re-measurement of our net deferred tax liability . story_separator_special_tag as a result of these uncertainties , our total income tax provision may fluctuate on a quarterly basis . each year , we prepare a return to provision analysis upon filing our income tax returns . based on this hindsight analysis , we concluded that our prior year income tax provision was within a range of acceptable estimates and that our provision calculation methodology is appropriate . differences between our effective income tax rate and federal and state statutory tax rates are primarily due to valuation allowances recorded for certain of our international subsidiaries with tax losses . performance-based compensation accrual the compensation committee of our board ( compensation committee ) annually reviews our compensation structure to oversee management 's implementation of maintaining a program that attracts , retains , develops and motivates employees without leading to unnecessary risk taking . our compensation packages include bonus plans that are specific to each group of eligible participants and their levels and areas of responsibility . the majority of our bonus plans have annual cash payments that are based primarily on objective performance criteria . we calculate bonuses based on the achievement of certain key measurable financial and operational results , including operating income and diluted earnings per share ( eps ) . 24 we use an annual cash performance award ( annual bonus ) to focus corporate behavior on short-term goals for growth , financial performance and other specific financial and business improvement metrics . management sets the company 's annual bonus objectives at the beginning of the bonus plan year using both historical information and forecasted results of operations for the current plan year . management also establishes specific business improvement objectives for both our operating units and corporate employees . the compensation committee approves objectives for bonus plans involving executive management . we also utilize our medium-term ( three-year ) strategic plan incentive program ( spip ) to provide senior management with an additional cash-based , pay-for-performance award based upon the achievement of specified earnings growth objectives . payouts through the spip are based on three-year compounded annual growth rates ( cagrs ) of our diluted eps . we record annual performance-based compensation accruals based on operating income achieved in a quarter as a percentage of total expected operating income for the year . we estimate total expected operating income for the current plan year using management 's estimate of the total overall incentives earned per the stated bonus plan objectives . starting in june , and continuing each quarter through our fiscal year end , we adjust our estimated performance-based compensation accrual based on our detailed analysis of each bonus plan , the participants ' progress toward achievement of their specific objectives and management 's estimates related to the discretionary components of the bonus plans , if any . we record spip accruals based on our total expected eps for the current fiscal year and cagr estimates for the succeeding two years . we base our current fiscal year estimates on the same assumptions used for our annual bonus calculation and our cagr estimates on historical growth rates and projections for the remainder of the three-year performance periods . our quarterly performance-based compensation expense and accrual balances may vary relative to actual annual bonus expense and payouts due to the following : differences between estimated and actual performance ; our projections related to achievement of multiple-year performance objectives for our spip ; and the discretionary components of the bonus plans . we generally make bonus payments at the end of february following the most recently completed fiscal year . each year , we compare the actual bonus payouts to amounts accrued at the previous year end to determine the accuracy of our performance‑based compensation estimates . based on our hindsight analysis , we concluded that our performance-based compensation accrual balances were within a reasonable range of acceptable estimates and that our estimation methodologies are appropriate . impairment of goodwill and other indefinite-lived intangible assets goodwill is our largest intangible asset . at december 31 , 2017 , our goodwill balance was $ 189.4 million , representing approximately 17 % of total assets . goodwill represents the excess of the amount we paid to acquire a company over the estimated fair value of tangible assets and identifiable intangible assets acquired , less liabilities assumed . we perform our goodwill impairment test in the fourth quarter of each year or on a more frequent basis if events or changes in circumstances occur that indicate potential impairment . if the estimated fair value of any of our reporting units falls below its carrying value , we compare the estimated fair value of the reporting unit 's goodwill to its carrying value . if the carrying value of a reporting unit 's goodwill exceeds its estimated fair value , we recognize the difference as an impairment loss in operating income . since we define an operating segment as an individual sales center and we do not have operations below the sales center level , our reporting unit is an individual sales center . as of october 1 , 2017 , we had 221 reporting units with allocated goodwill balances . the most significant goodwill balance for a reporting unit was $ 5.7 million and the average goodwill balance was $ 0.8 million . in october 2017 , 2016 and 2015 , we performed our annual goodwill impairment test and did not identify any goodwill impairment at the reporting unit level . in the third quarter of 2016 , we recorded a $ 0.6 million goodwill impairment charge related to an at-risk reporting unit in quebec , canada . we continue to monitor this location 's results , which came in above expectations at the end of the 2017 pool season . as of december 31 , 2017 , the remaining goodwill balance for this reporting unit was $ 1.8 million . we estimate the fair value of our reporting units based on

