under this plan , our non-employee directors may story_separator_special_tag overview we develop and manufacture products primarily for medical applications . we market components to other equipment manufacturers for incorporation in their products and sell finished devices to physicians , hospitals , clinics and other treatment centers . our medical products primarily serve the fluid delivery , cardiovascular , and ophthalmology markets . our other medical and non-medical products include valves and inflation devices used in marine and aviation safety products . in 2016 , approximately 37 percent of our sales were outside the united states . our products are used in a wide variety of applications by numerous customers . we encounter competition in all of our markets and compete primarily on the basis of product quality , price , engineering , customer service and delivery time . our strategy is to provide a broad selection of products in the areas of our expertise . r & d efforts are focused on improving current products and developing highly-engineered products that meet customer needs and serve niche markets with meaningful sales potential . proposed new products may be subject to regulatory clearance or approval prior to commercialization and the time period for introducing a new product to the marketplace can be unpredictable . we also focus on controlling costs by investing in modern manufacturing technologies and controlling purchasing processes . we have been successful in consistently generating cash from operations and have used that cash to reduce or eliminate indebtedness , to fund capital expenditures , to make investments , to repurchase stock and to pay dividends . 20 our strategic objective is to further enhance our position in our served markets by : ● focusing on customer needs ; ● expanding existing product lines and developing new products ; ● maintaining a culture of controlling cost ; and ● preserving and fostering a collaborative , entrepreneurial management structure . for the year ended december 31 , 2016 , we reported revenues of $ 143.5 million , operating income of $ 39.1 million and net income of $ 27.6 million . results of operations our net income was $ 27.6 million , or $ 15.12 per basic and $ 14.85 per diluted share , in 2016 compared to $ 28.9 million , or $ 15.67 per basic and $ 15.47 per diluted share , in 2015 and net income of $ 27.8 million , or $ 14.20 per basic and $ 14.08 per diluted share , in 2014. revenues were $ 143.5 million in 2016 compared with $ 145.7 million in 2015 and $ 140.8 million in 2014. our 2016 revenues were negatively impacted by the strong u. s. dollar in our international markets and lower sales prices in certain markets . the four percent revenue increase in 2015 over 2014 was generally attributable to higher sales volumes . annual revenues by product lines were as follows ( in thousands ) : replace_table_token_3_th our cost of goods sold was $ 75.9 million in 2016 , $ 74.8 million in 2015 and $ 72.2 million in 2014. increased compensation costs , depreciation and repair costs partially offset by reduced utilities and reduced supplies were the primary contributors to the increase in cost of goods sold in 2016 over 2015. higher sales volume along with increased compensation costs , supplies and utilities partially offset by improved manufacturing efficiencies were the primary contributors to the increase in cost of goods sold in 2015 over 2014. gross profit in 2016 was $ 67.6 million compared with $ 71.0 million in 2015 and $ 68.5 million in 2014. our gross profit was 47 percent of revenues in 2016 and 49 percent of revenues in both 2015 and 2014. the decrease in gross profit percentage in 2016 from 2015 was primarily related to reduced sales , lower sales prices and increased manufacturing costs . operating expenses were $ 28.5 million in both 2016 and 2015 and $ 27.7 million in 2014. r & d expenses increased $ 228,000 in 2016 as compared to 2015 primarily as a result of increased costs for supplies and travel partially offset by reduced outside services . r & d expenses consist primarily of salaries and other related expenses of our r & d personnel as well as costs associated with regulatory matters . in 2016 , selling expenses increased $ 568,000 as compared with 2015 primarily as a result of increased travel , outside services , compensation and trade shows . selling expenses consist primarily of salaries , commissions and other related expenses for sales and marketing personnel , marketing , advertising and promotional expenses . general and administrative , or g & a , expenses decreased $ 763,000 in 2016 as compared to 2015 primarily as a result of reduced compensation and benefits . g & a expenses consist primarily of salaries and other related expenses of administrative , executive and financial personnel and outside professional fees . 21 r & d expenses increased $ 1.1 million in 2015 as compared to 2014 primarily as a result of increased costs for outside services and supplies . in 2015 , selling expenses decreased $ 167,000 as compared with 2014 primarily as a result of decreased promotional costs partially offset by increased commissions . g & a expenses decreased $ 123,000 in 2015 as compared to 2014 primarily as a result of reduced outside services partially offset by increased amortization . story_separator_special_tag in making determinations of likely outcomes of litigation matters , we consider the evaluation of legal counsel knowledgeable about each matter , case law and other case-specific issues . we believe these accruals are adequate to cover the legal fees and expenses associated with litigating these matters . however , the time and cost required to litigate these matters as well as the outcomes of the proceedings may vary significantly from what we have projected . we maintain an allowance for doubtful accounts to reflect estimated losses resulting from the failure of customers to make required payments . on an ongoing basis , the collectability of accounts receivable is assessed based upon historical collection trends , current economic factors and the assessment of the collectability of specific accounts . we evaluate the collectability of specific accounts and determine when to grant credit to our customers using a combination of factors , including the age of the outstanding balances , evaluation of customers ' current and past financial condition , recent payment history , current economic environment , and discussions with our personnel and with the customers directly . accounts are written off when it is determined the receivable will not be collected . if circumstances change , our estimates of the collectability of amounts could be changed by a material amount . 25 we are required to estimate our provision for income taxes and uncertain tax positions in each of the jurisdictions in which we operate . this process involves estimating our actual current tax exposure , including assessing the risks associated with tax audits , together with assessing temporary differences resulting from the different treatment of items for tax and accounting purposes . these differences result in deferred tax assets and liabilities , which are included within the balance sheet . we assess the likelihood that our deferred tax assets will be recovered from future taxable income and , to the extent we believe that recovery is more likely than not , do not establish a valuation allowance . in the event that actual results differ from these estimates , the provision for income taxes could be materially impacted . we assess the impairment of our long-lived identifiable assets , excluding goodwill which is tested for impairment as explained below , whenever events or changes in circumstances indicate that the carrying value may not be recoverable . this review is based upon projections of anticipated future cash flows . although we believe that our estimates of future cash flows are reasonable , different assumptions regarding such cash flows or changes in our business plan could materially affect our evaluations . no such changes are anticipated at this time . we assess goodwill for impairment pursuant to accounting standards codification , or asc , 350 , intangibles—goodwill and other , which requires that goodwill be assessed whenever events or changes in circumstances indicate that the carrying value may not be recoverable , or , at a minimum , on an annual basis by applying a qualitative assessment on goodwill impairment to determine whether it is necessary to perform the two-step goodwill impairment test . we assess the total carrying value for each of our investments on a quarterly basis for changes in circumstance or the occurrence of events that suggest our investment may not be recoverable . if an investment is considered impaired , we must determine whether the impairment is other than temporary . if it is determined to be other than temporary , the impairment must be recognized in our financial statements . during 2016 , 2015 and 2014 , none of our critical accounting policy estimates , with the exception of the previously mentioned impairment loss on one of our long-term corporate bonds , required significant adjustments . we did not note any material events or changes in circumstances indicating that the carrying value of long-lived assets were not recoverable . quantitative and qualitative disclosures about market risks foreign exchange risk we are not exposed to material fluctuations in currency exchange rates because the payments from our international customers are received primarily in united states dollars . however , fluctuations in exchange rates may affect the prices that our international customers are willing to pay and may put us at a price disadvantage compared to other customers . increases in the value of the united states dollar relative to foreign currencies could make our products less competitive or less affordable and therefore adversely affect our sales in international markets . market risk and credit risk the company 's cash and cash equivalents are held in accounts with financial institutions that we believe are creditworthy . certain of these accounts at times may exceed federally-insured limits . we have not experienced any credit losses in such accounts and do not believe we are exposed to any significant credit risk on these funds . we have investments in taxable corporate bonds , certificates of deposit and equity securities . as a result , we are exposed to potential loss from market risks that may occur as a result of changes in interest rates , changes in credit quality of the issuer and otherwise . these securities have a higher degree of credit or default risk and a greater exposure to credit risk and may be less liquid in times of economic weakness or market disruptions . we have also invested a portion of our available funds in common stock . the value of these securities fluctuates due to changes in the equity and credit markets along with other factors . in times of economic weakness , the market value and liquidity of these assets may decline and may negatively impact our financial condition . 26 forward-looking statements statements in this management 's discussion and analysis and elsewhere in this form 10-k that are forward looking are based upon current expectations , and actual results or future events may differ materially . therefore , the inclusion of such forward-looking information

liquidity and capital resources at december 31 , 2016 , we had a $ 40.0 million revolving credit facility with a money center bank that could be utilized for the funding of operations and for major capital projects or acquisitions , subject to certain limitations and restrictions . interest under the credit facility was assessed at 30-day , 60-day or 90-day libor , as selected by us , plus one percent and was payable monthly . we had no outstanding borrowings under our credit facility at december 31 , 2016 or 2015. the credit facility contained various restrictive covenants , none of which was expected to impact our liquidity or capital resources . at december 31 , 2016 , we were in compliance with all financial covenants . 22 on february 28 , 2017 we replaced the revolving credit facility with a new $ 75.0 million revolving credit facility with the same bank . the new credit facility has similar operational , covenant and collateral characteristics as the prior facility . interest under the new credit facility is assessed at one , two , three or six-month libor , as selected by us , plus .875 percent . the new credit facility allows us to make advances until february 28 , 2022. we believe the bank providing the credit facility is highly-rated and that the entire $ 75.0 million under the credit facility is currently available to us .


 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 at december 31 , 2016 , we had a $ 40.0 million revolving credit facility with a money center bank that could be utilized for the funding of operations and for major capital projects or acquisitions , subject to certain limitations and restrictions . interest under the credit facility was assessed at 30-day , 60-day or 90-day libor , as selected by us , plus one percent and was payable monthly . we had no outstanding borrowings under our credit facility at december 31 , 2016 or 2015. the credit facility contained various restrictive covenants , none of which was expected to impact our liquidity or capital resources . at december 31 , 2016 , we were in compliance with all financial covenants . 22 on february 28 , 2017 we replaced the revolving credit facility with a new $ 75.0 million revolving credit facility with the same bank . the new credit facility has similar operational , covenant and collateral characteristics as the prior facility . interest under the new credit facility is assessed at one , two , three or six-month libor , as selected by us , plus .875 percent . the new credit facility allows us to make advances until february 28 , 2022. we believe the bank providing the credit facility is highly-rated and that the entire $ 75.0 million under the credit facility is currently available to us .
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 Suspicious Activity Report : under this plan , our non-employee directors may story_separator_special_tag overview we develop and manufacture products primarily for medical applications . we market components to other equipment manufacturers for incorporation in their products and sell finished devices to physicians , hospitals , clinics and other treatment centers . our medical products primarily serve the fluid delivery , cardiovascular , and ophthalmology markets . our other medical and non-medical products include valves and inflation devices used in marine and aviation safety products . in 2016 , approximately 37 percent of our sales were outside the united states . our products are used in a wide variety of applications by numerous customers . we encounter competition in all of our markets and compete primarily on the basis of product quality , price , engineering , customer service and delivery time . our strategy is to provide a broad selection of products in the areas of our expertise . r & d efforts are focused on improving current products and developing highly-engineered products that meet customer needs and serve niche markets with meaningful sales potential . proposed new products may be subject to regulatory clearance or approval prior to commercialization and the time period for introducing a new product to the marketplace can be unpredictable . we also focus on controlling costs by investing in modern manufacturing technologies and controlling purchasing processes . we have been successful in consistently generating cash from operations and have used that cash to reduce or eliminate indebtedness , to fund capital expenditures , to make investments , to repurchase stock and to pay dividends . 20 our strategic objective is to further enhance our position in our served markets by : ● focusing on customer needs ; ● expanding existing product lines and developing new products ; ● maintaining a culture of controlling cost ; and ● preserving and fostering a collaborative , entrepreneurial management structure . for the year ended december 31 , 2016 , we reported revenues of $ 143.5 million , operating income of $ 39.1 million and net income of $ 27.6 million . results of operations our net income was $ 27.6 million , or $ 15.12 per basic and $ 14.85 per diluted share , in 2016 compared to $ 28.9 million , or $ 15.67 per basic and $ 15.47 per diluted share , in 2015 and net income of $ 27.8 million , or $ 14.20 per basic and $ 14.08 per diluted share , in 2014. revenues were $ 143.5 million in 2016 compared with $ 145.7 million in 2015 and $ 140.8 million in 2014. our 2016 revenues were negatively impacted by the strong u. s. dollar in our international markets and lower sales prices in certain markets . the four percent revenue increase in 2015 over 2014 was generally attributable to higher sales volumes . annual revenues by product lines were as follows ( in thousands ) : replace_table_token_3_th our cost of goods sold was $ 75.9 million in 2016 , $ 74.8 million in 2015 and $ 72.2 million in 2014. increased compensation costs , depreciation and repair costs partially offset by reduced utilities and reduced supplies were the primary contributors to the increase in cost of goods sold in 2016 over 2015. higher sales volume along with increased compensation costs , supplies and utilities partially offset by improved manufacturing efficiencies were the primary contributors to the increase in cost of goods sold in 2015 over 2014. gross profit in 2016 was $ 67.6 million compared with $ 71.0 million in 2015 and $ 68.5 million in 2014. our gross profit was 47 percent of revenues in 2016 and 49 percent of revenues in both 2015 and 2014. the decrease in gross profit percentage in 2016 from 2015 was primarily related to reduced sales , lower sales prices and increased manufacturing costs . operating expenses were $ 28.5 million in both 2016 and 2015 and $ 27.7 million in 2014. r & d expenses increased $ 228,000 in 2016 as compared to 2015 primarily as a result of increased costs for supplies and travel partially offset by reduced outside services . r & d expenses consist primarily of salaries and other related expenses of our r & d personnel as well as costs associated with regulatory matters . in 2016 , selling expenses increased $ 568,000 as compared with 2015 primarily as a result of increased travel , outside services , compensation and trade shows . selling expenses consist primarily of salaries , commissions and other related expenses for sales and marketing personnel , marketing , advertising and promotional expenses . general and administrative , or g & a , expenses decreased $ 763,000 in 2016 as compared to 2015 primarily as a result of reduced compensation and benefits . g & a expenses consist primarily of salaries and other related expenses of administrative , executive and financial personnel and outside professional fees . 21 r & d expenses increased $ 1.1 million in 2015 as compared to 2014 primarily as a result of increased costs for outside services and supplies . in 2015 , selling expenses decreased $ 167,000 as compared with 2014 primarily as a result of decreased promotional costs partially offset by increased commissions . g & a expenses decreased $ 123,000 in 2015 as compared to 2014 primarily as a result of reduced outside services partially offset by increased amortization . story_separator_special_tag in making determinations of likely outcomes of litigation matters , we consider the evaluation of legal counsel knowledgeable about each matter , case law and other case-specific issues . we believe these accruals are adequate to cover the legal fees and expenses associated with litigating these matters . however , the time and cost required to litigate these matters as well as the outcomes of the proceedings may vary significantly from what we have projected . we maintain an allowance for doubtful accounts to reflect estimated losses resulting from the failure of customers to make required payments . on an ongoing basis , the collectability of accounts receivable is assessed based upon historical collection trends , current economic factors and the assessment of the collectability of specific accounts . we evaluate the collectability of specific accounts and determine when to grant credit to our customers using a combination of factors , including the age of the outstanding balances , evaluation of customers ' current and past financial condition , recent payment history , current economic environment , and discussions with our personnel and with the customers directly . accounts are written off when it is determined the receivable will not be collected . if circumstances change , our estimates of the collectability of amounts could be changed by a material amount . 25 we are required to estimate our provision for income taxes and uncertain tax positions in each of the jurisdictions in which we operate . this process involves estimating our actual current tax exposure , including assessing the risks associated with tax audits , together with assessing temporary differences resulting from the different treatment of items for tax and accounting purposes . these differences result in deferred tax assets and liabilities , which are included within the balance sheet . we assess the likelihood that our deferred tax assets will be recovered from future taxable income and , to the extent we believe that recovery is more likely than not , do not establish a valuation allowance . in the event that actual results differ from these estimates , the provision for income taxes could be materially impacted . we assess the impairment of our long-lived identifiable assets , excluding goodwill which is tested for impairment as explained below , whenever events or changes in circumstances indicate that the carrying value may not be recoverable . this review is based upon projections of anticipated future cash flows . although we believe that our estimates of future cash flows are reasonable , different assumptions regarding such cash flows or changes in our business plan could materially affect our evaluations . no such changes are anticipated at this time . we assess goodwill for impairment pursuant to accounting standards codification , or asc , 350 , intangibles—goodwill and other , which requires that goodwill be assessed whenever events or changes in circumstances indicate that the carrying value may not be recoverable , or , at a minimum , on an annual basis by applying a qualitative assessment on goodwill impairment to determine whether it is necessary to perform the two-step goodwill impairment test . we assess the total carrying value for each of our investments on a quarterly basis for changes in circumstance or the occurrence of events that suggest our investment may not be recoverable . if an investment is considered impaired , we must determine whether the impairment is other than temporary . if it is determined to be other than temporary , the impairment must be recognized in our financial statements . during 2016 , 2015 and 2014 , none of our critical accounting policy estimates , with the exception of the previously mentioned impairment loss on one of our long-term corporate bonds , required significant adjustments . we did not note any material events or changes in circumstances indicating that the carrying value of long-lived assets were not recoverable . quantitative and qualitative disclosures about market risks foreign exchange risk we are not exposed to material fluctuations in currency exchange rates because the payments from our international customers are received primarily in united states dollars . however , fluctuations in exchange rates may affect the prices that our international customers are willing to pay and may put us at a price disadvantage compared to other customers . increases in the value of the united states dollar relative to foreign currencies could make our products less competitive or less affordable and therefore adversely affect our sales in international markets . market risk and credit risk the company 's cash and cash equivalents are held in accounts with financial institutions that we believe are creditworthy . certain of these accounts at times may exceed federally-insured limits . we have not experienced any credit losses in such accounts and do not believe we are exposed to any significant credit risk on these funds . we have investments in taxable corporate bonds , certificates of deposit and equity securities . as a result , we are exposed to potential loss from market risks that may occur as a result of changes in interest rates , changes in credit quality of the issuer and otherwise . these securities have a higher degree of credit or default risk and a greater exposure to credit risk and may be less liquid in times of economic weakness or market disruptions . we have also invested a portion of our available funds in common stock . the value of these securities fluctuates due to changes in the equity and credit markets along with other factors . in times of economic weakness , the market value and liquidity of these assets may decline and may negatively impact our financial condition . 26 forward-looking statements statements in this management 's discussion and analysis and elsewhere in this form 10-k that are forward looking are based upon current expectations , and actual results or future events may differ materially . therefore , the inclusion of such forward-looking information

