prices for acetone are influenced by its own supply and demand dynamics but can also be influenced by the underlying move in propylene input costs . we continue to invest in and grow our differentiated product offerings in high-purity applications and high-value intermediates including our oximes-based ez-blox anti-skinning agent used in paints and nadone® cyclohexanone , which is a solvent used in various high-value applications . our ammonium sulfate is used by customers as a fertilizer containing nitrogen and sulfur , two key crop nutrients . global prices for ammonium sulfate fertilizer are influenced by several factors including the price of urea , which is the most widely used source of nitrogen-based fertilizer in the world . other global factors driving ammonium sulfate fertilizer demand are general agriculture trends , including the price of crops . our ammonium sulfate product is positioned with the added value proposition of sulfur nutrition to increase yields of key crops . in addition , due to its nutrient density , the typical ammonium sulfate product delivers pound for pound the most readily available sulfur and nitrogen to crops than other fertilizers . we produce ammonium sulfate fertilizer continuously throughout the year as part of our manufacturing process , but quarterly sales experience seasonality based on the timing and length of the growing seasons in north and south america . north america ammonium sulfate prices are typically strongest during second quarter fertilizer application and then typically decline seasonally with new season fill in the third quarter . due to the ammonium sulfate fertilizer sales cycle , we occasionally build up higher inventory balances because our production is continuous and not tied to seasonal demand for fertilizers . sales of most of our other products have generally been subject to minimal , or no , seasonality . we seek to run our production facilities on a nearly continuous basis for maximum efficiency as several of our intermediate products are key feedstock materials for other products in our integrated manufacturing chain . while our integration , scale and range of product offerings make us one of the most efficient manufacturers in our industry , these attributes also expose us to increased risk associated with material disruptions at any one of our production facilities or logistics operations which could impact the overall manufacturing supply chain . further , although we believe that our sources of supply for our raw materials , including cumene , natural gas and sulfur , are generally robust , it is difficult to predict the impact that shortages , increased costs and related supply chain logistics considerations may have in the future . in order to mitigate the risk of unplanned interruptions , we schedule several planned plant turnarounds each year to conduct routine and major maintenance across our facilities . we also utilize maintenance excellence and mechanical integrity programs , targeted buffer inventory of intermediate chemicals necessary for our manufacturing process , and co-producer swap arrangements , which are intended to mitigate the extent of any production losses as a result of planned and unplanned downtime ; however , the mitigation of all or part of any such production impact can not be assured . for a description of our principal risks , see “ risk factors `` in item 1a . recent developments covid-19 in march 2020 , the world health organization categorized the novel coronavirus ( covid-19 ) as a global pandemic with numerous countries around the world declaring national emergencies , including the united states . since early 2020 , covid-19 has continued to spread rapidly , with most countries and territories worldwide having confirmed cases , and with certain jurisdictions experiencing resurgences . the spread has resulted in authorities implementing numerous measures to contain the virus , such as travel bans and restrictions , quarantines , shelter-in-place orders and business shutdowns . the pandemic and these containment measures have had , and are expected to continue to have , a substantial negative impact on businesses around the world and on global , regional and national 28 economies , including disruptions to supply chains , reduced demand and production sales across most industries , declines and volatility within global financial markets , and decreased workforces causing increased unemployment . the continuously evolving nature of this pandemic and the responses to combat the pandemic , such as governmental restrictions on non-essential business and travel , continue to have a negative impact on the united states and global economies . while various jurisdictions have ended , or have implemented policies to phase out , these containment measures , increases in new covid-19 cases have caused certain jurisdictions to re-implement restrictions . the u.s. department of homeland security designated our industry as `` essential critical infrastructure `` during the response to covid-19 for both public health and safety as well as community well-being . the company takes its obligation seriously to produce materials that support the broader population , all while maintaining a prioritized focus on the health and safety of its employees and the communities in which it operates , and assuring the continuity of its business operations . as a global provider of products that are key inputs for our customers ' processes serving a variety of end-markets , a pandemic presents obstacles that can adversely affect our supply chain effectiveness and efficiencies , our manufacturing operations and customer demand for our products and , ultimately , our financial results . we believe we are positioned to respond to and mitigate the potential impacts of the rapidly evolving market dynamics . for a description of risks in relation to the covid-19 pandemic , see `` risks relating to our business `` under `` risk factors `` in item 1a . in the first quarter of 2020 , the company began executing its business continuity plans with dedicated teams chartered to proactively implement measures to mitigate covid-19 impacts while continuing to operate all of its manufacturing facilities to meet customer demand . story_separator_special_tag selling , general and administrative expenses replace_table_token_7_th 2020 compared with 2019 selling , general and administrative expenses decreased in 2020 compared to 2019 by $ 4.5 million , or approximately 6 % , due primarily to decreased legal expenses , lower it spending and reduced compensation costs related to performance incentives . interest expense , net replace_table_token_8_th 2020 compared with 2019 interest expense , net , increased in 2020 compared to 2019 by $ 2,338 , or approximately 42.9 % , due primarily to higher average borrowings and lower amounts of interest capitalized associated with capital projects . other non-operating expense ( income ) , net replace_table_token_9_th 2020 compared with 2019 the decrease in other non-operating expense ( income ) , net in 2020 compared to 2019 was due primarily to the decrease of severance accruals and environmental remediation costs in the current year . income tax expense replace_table_token_10_th 32 on december 22 , 2017 the u.s. government passed the tax cuts and jobs act ( the “ 2017 act ” ) . in 2017 , the company reasonably estimated the accounting for the effects of the 2017 act . in 2018 , under staff accounting bulletin no . 118 ( “ sab 118 ” ) , we finalized the accounting for the 2017 act and our financial statements for the year ended december 31 , 2018 reflect certain effects of the 2017 act including a reduction in the corporate tax rate to 21 % from 35 % and changes made to executive compensation rules . as a result of the 2017 act , the company recorded a reduction in income tax expense of $ 1,651 during the year ended december 31 , 2018. the cares act includes various modifications to current tax law and is intended to provide economic relief in response to the covid-19 pandemic . one provision included in the cares act allows for a five-year carryback of federal net operating losses ( nols ) generated in tax years beginning in 2018 , 2019 and 2020. the company finalized its 2019 u.s. federal income tax return which reflected a net operating loss , on a tax basis , and certain tax credits which were carried back to earlier tax years . this carryback claim generated a refund of previously paid taxes in the amount of $ 12.2 million which is recorded in taxes receivable . we anticipate receiving the refund in the first half of 2021. the company 's income tax expense for 2020 and 2019 was $ 8,956 and $ 12,001 , respectively . in the absence of the changes due to the 2017 act and the related one-time remeasurement of deferred tax assets and liabilities to account for the reduction in the corporate tax rate to 21 % , tax expense for 2018 would have been $ 21,175. the company 's effective income tax rate for 2020 was lower compared to the u.s. federal statutory rate of 21 % due primarily to the impact of research tax credits as well as an energy tax credit described in more detail in “ note 4. income taxes ” . this was partially offset by state taxes , executive compensation deduction limitations and a shortfall on the vesting of equity compensation . the company 's effective income tax rate for 2019 was slightly higher compared to the u.s. federal statutory rate of 21 % due primarily to state taxes and executive compensation deduction limitations , partially offset by the vesting of restricted stock units and research tax credits . the company 's effective income tax rate for 2018 was higher compared to the u.s. federal statutory rate of 21 % due primarily to state taxes and executive compensation deduction limitations resulting from the 2017 act , partially offset by income tax benefits associated with the filing of the 2017 u.s. federal income tax return and the related completion of the accounting for the tax impacts of the 2017 act . as of december 31 , 2020 , 2019 and 2018 , there were no unrecognized tax benefits recorded by the company . although there are no unrecognized income tax benefits , when applicable , the company 's policy is to report interest expense and penalties related to unrecognized income tax benefits in the income tax provision . for additional discussion of income taxes and the effective income tax rate , see “ note 4. income taxes ” in the notes accompanying the audited consolidated financial statements included in item 8 of this form 10-k. net income replace_table_token_11_th 2020 compared with 2019 as a result of the factors described above , net income was $ 46.1 million in 2020 as compared to $ 41.3 million in 2019. non-gaap measures the following tables set forth the non-gaap financial measures of ebitda and ebitda margin . ebitda is defined as net income before interest , income taxes and depreciation and amortization . ebitda margin is equal to ebitda divided by sales . the following tables also present each of these measures as further adjusted . the company believes these non-gaap financial measures provide meaningful supplemental information as they are used by the company 's management to evaluate the company 's operating performance , enhance a reader 's understanding of the financial performance of the company , and facilitate a better comparison among fiscal periods and performance relative to its competitors , as the non-gaap measures exclude items that are not considered core to the company 's operations . these non-gaap results are presented for supplemental informational purposes only and should not be considered a substitute for the financial information presented in accordance with u.s. gaap . non-gaap financial measures should be read only in conjunction with the comparable u.s. gaap financial measures . the company 's non-gaap measures may not be comparable to other companies ' non-gaap measures . 33 the following is a reconciliation between the non-gaap financial measures of ebitda and ebitda margin to their most directly comparable u.s.

liquidity we believe that cash balances and operating cash flows , together with available capacity under our credit agreement , will provide adequate funds to support our current short-term operating objectives as well as our longer-term strategic plans , subject to the risks and uncertainties outlined below and in the risk factors as previously disclosed in in item 1a , risk factors . our principal source of liquidity is our cash flow generated from operating activities , which is expected to provide us with the ability to meet the majority of our short-term funding requirements . our cash flows are affected by capital requirements and production volume , which may be materially impacted by unanticipated events such as unplanned downtime , material disruptions at our production facilities as well as the prices of our raw materials and general economic and industry trends , and customer demand . the company applies a proactive and disciplined approach to working capital management to optimize cash flow and to enable capital allocation options in support of the company 's strategy . we utilize supply chain financing and trade receivables discount arrangements with third-party financial institutions which enhance liquidity and enable us to efficiently manage our working capital needs . although we continue to optimize supply chain financing and trade receivable programs in the ordinary course , our utilization of these arrangements , both prior to and during the covid-19 pandemic , has not had a material impact on our liquidity . in addition , we monitor the third-party depository institutions that hold our cash and cash equivalents . our emphasis is primarily on the safety of principal and secondarily on maximizing yield on those funds . we diversify our cash and cash equivalents among counterparties to minimize exposure to any one of these entities . on a recurring basis , our primary future cash needs will be centered on operating activities , working capital , and capital expenditures reflecting disciplined capital deployment and following the completion of several high-return growth and cost savings investments .


 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 we believe that cash balances and operating cash flows , together with available capacity under our credit agreement , will provide adequate funds to support our current short-term operating objectives as well as our longer-term strategic plans , subject to the risks and uncertainties outlined below and in the risk factors as previously disclosed in in item 1a , risk factors . our principal source of liquidity is our cash flow generated from operating activities , which is expected to provide us with the ability to meet the majority of our short-term funding requirements . our cash flows are affected by capital requirements and production volume , which may be materially impacted by unanticipated events such as unplanned downtime , material disruptions at our production facilities as well as the prices of our raw materials and general economic and industry trends , and customer demand . the company applies a proactive and disciplined approach to working capital management to optimize cash flow and to enable capital allocation options in support of the company 's strategy . we utilize supply chain financing and trade receivables discount arrangements with third-party financial institutions which enhance liquidity and enable us to efficiently manage our working capital needs . although we continue to optimize supply chain financing and trade receivable programs in the ordinary course , our utilization of these arrangements , both prior to and during the covid-19 pandemic , has not had a material impact on our liquidity . in addition , we monitor the third-party depository institutions that hold our cash and cash equivalents . our emphasis is primarily on the safety of principal and secondarily on maximizing yield on those funds . we diversify our cash and cash equivalents among counterparties to minimize exposure to any one of these entities . on a recurring basis , our primary future cash needs will be centered on operating activities , working capital , and capital expenditures reflecting disciplined capital deployment and following the completion of several high-return growth and cost savings investments .
```    
 Suspicious Activity Report : prices for acetone are influenced by its own supply and demand dynamics but can also be influenced by the underlying move in propylene input costs . we continue to invest in and grow our differentiated product offerings in high-purity applications and high-value intermediates including our oximes-based ez-blox anti-skinning agent used in paints and nadone® cyclohexanone , which is a solvent used in various high-value applications . our ammonium sulfate is used by customers as a fertilizer containing nitrogen and sulfur , two key crop nutrients . global prices for ammonium sulfate fertilizer are influenced by several factors including the price of urea , which is the most widely used source of nitrogen-based fertilizer in the world . other global factors driving ammonium sulfate fertilizer demand are general agriculture trends , including the price of crops . our ammonium sulfate product is positioned with the added value proposition of sulfur nutrition to increase yields of key crops . in addition , due to its nutrient density , the typical ammonium sulfate product delivers pound for pound the most readily available sulfur and nitrogen to crops than other fertilizers . we produce ammonium sulfate fertilizer continuously throughout the year as part of our manufacturing process , but quarterly sales experience seasonality based on the timing and length of the growing seasons in north and south america . north america ammonium sulfate prices are typically strongest during second quarter fertilizer application and then typically decline seasonally with new season fill in the third quarter . due to the ammonium sulfate fertilizer sales cycle , we occasionally build up higher inventory balances because our production is continuous and not tied to seasonal demand for fertilizers . sales of most of our other products have generally been subject to minimal , or no , seasonality . we seek to run our production facilities on a nearly continuous basis for maximum efficiency as several of our intermediate products are key feedstock materials for other products in our integrated manufacturing chain . while our integration , scale and range of product offerings make us one of the most efficient manufacturers in our industry , these attributes also expose us to increased risk associated with material disruptions at any one of our production facilities or logistics operations which could impact the overall manufacturing supply chain . further , although we believe that our sources of supply for our raw materials , including cumene , natural gas and sulfur , are generally robust , it is difficult to predict the impact that shortages , increased costs and related supply chain logistics considerations may have in the future . in order to mitigate the risk of unplanned interruptions , we schedule several planned plant turnarounds each year to conduct routine and major maintenance across our facilities . we also utilize maintenance excellence and mechanical integrity programs , targeted buffer inventory of intermediate chemicals necessary for our manufacturing process , and co-producer swap arrangements , which are intended to mitigate the extent of any production losses as a result of planned and unplanned downtime ; however , the mitigation of all or part of any such production impact can not be assured . for a description of our principal risks , see “ risk factors `` in item 1a . recent developments covid-19 in march 2020 , the world health organization categorized the novel coronavirus ( covid-19 ) as a global pandemic with numerous countries around the world declaring national emergencies , including the united states . since early 2020 , covid-19 has continued to spread rapidly , with most countries and territories worldwide having confirmed cases , and with certain jurisdictions experiencing resurgences . the spread has resulted in authorities implementing numerous measures to contain the virus , such as travel bans and restrictions , quarantines , shelter-in-place orders and business shutdowns . the pandemic and these containment measures have had , and are expected to continue to have , a substantial negative impact on businesses around the world and on global , regional and national 28 economies , including disruptions to supply chains , reduced demand and production sales across most industries , declines and volatility within global financial markets , and decreased workforces causing increased unemployment . the continuously evolving nature of this pandemic and the responses to combat the pandemic , such as governmental restrictions on non-essential business and travel , continue to have a negative impact on the united states and global economies . while various jurisdictions have ended , or have implemented policies to phase out , these containment measures , increases in new covid-19 cases have caused certain jurisdictions to re-implement restrictions . the u.s. department of homeland security designated our industry as `` essential critical infrastructure `` during the response to covid-19 for both public health and safety as well as community well-being . the company takes its obligation seriously to produce materials that support the broader population , all while maintaining a prioritized focus on the health and safety of its employees and the communities in which it operates , and assuring the continuity of its business operations . as a global provider of products that are key inputs for our customers ' processes serving a variety of end-markets , a pandemic presents obstacles that can adversely affect our supply chain effectiveness and efficiencies , our manufacturing operations and customer demand for our products and , ultimately , our financial results . we believe we are positioned to respond to and mitigate the potential impacts of the rapidly evolving market dynamics . for a description of risks in relation to the covid-19 pandemic , see `` risks relating to our business `` under `` risk factors `` in item 1a . in the first quarter of 2020 , the company began executing its business continuity plans with dedicated teams chartered to proactively implement measures to mitigate covid-19 impacts while continuing to operate all of its manufacturing facilities to meet customer demand . story_separator_special_tag selling , general and administrative expenses replace_table_token_7_th 2020 compared with 2019 selling , general and administrative expenses decreased in 2020 compared to 2019 by $ 4.5 million , or approximately 6 % , due primarily to decreased legal expenses , lower it spending and reduced compensation costs related to performance incentives . interest expense , net replace_table_token_8_th 2020 compared with 2019 interest expense , net , increased in 2020 compared to 2019 by $ 2,338 , or approximately 42.9 % , due primarily to higher average borrowings and lower amounts of interest capitalized associated with capital projects . other non-operating expense ( income ) , net replace_table_token_9_th 2020 compared with 2019 the decrease in other non-operating expense ( income ) , net in 2020 compared to 2019 was due primarily to the decrease of severance accruals and environmental remediation costs in the current year . income tax expense replace_table_token_10_th 32 on december 22 , 2017 the u.s. government passed the tax cuts and jobs act ( the “ 2017 act ” ) . in 2017 , the company reasonably estimated the accounting for the effects of the 2017 act . in 2018 , under staff accounting bulletin no . 118 ( “ sab 118 ” ) , we finalized the accounting for the 2017 act and our financial statements for the year ended december 31 , 2018 reflect certain effects of the 2017 act including a reduction in the corporate tax rate to 21 % from 35 % and changes made to executive compensation rules . as a result of the 2017 act , the company recorded a reduction in income tax expense of $ 1,651 during the year ended december 31 , 2018. the cares act includes various modifications to current tax law and is intended to provide economic relief in response to the covid-19 pandemic . one provision included in the cares act allows for a five-year carryback of federal net operating losses ( nols ) generated in tax years beginning in 2018 , 2019 and 2020. the company finalized its 2019 u.s. federal income tax return which reflected a net operating loss , on a tax basis , and certain tax credits which were carried back to earlier tax years . this carryback claim generated a refund of previously paid taxes in the amount of $ 12.2 million which is recorded in taxes receivable . we anticipate receiving the refund in the first half of 2021. the company 's income tax expense for 2020 and 2019 was $ 8,956 and $ 12,001 , respectively . in the absence of the changes due to the 2017 act and the related one-time remeasurement of deferred tax assets and liabilities to account for the reduction in the corporate tax rate to 21 % , tax expense for 2018 would have been $ 21,175. the company 's effective income tax rate for 2020 was lower compared to the u.s. federal statutory rate of 21 % due primarily to the impact of research tax credits as well as an energy tax credit described in more detail in “ note 4. income taxes ” . this was partially offset by state taxes , executive compensation deduction limitations and a shortfall on the vesting of equity compensation . the company 's effective income tax rate for 2019 was slightly higher compared to the u.s. federal statutory rate of 21 % due primarily to state taxes and executive compensation deduction limitations , partially offset by the vesting of restricted stock units and research tax credits . the company 's effective income tax rate for 2018 was higher compared to the u.s. federal statutory rate of 21 % due primarily to state taxes and executive compensation deduction limitations resulting from the 2017 act , partially offset by income tax benefits associated with the filing of the 2017 u.s. federal income tax return and the related completion of the accounting for the tax impacts of the 2017 act . as of december 31 , 2020 , 2019 and 2018 , there were no unrecognized tax benefits recorded by the company . although there are no unrecognized income tax benefits , when applicable , the company 's policy is to report interest expense and penalties related to unrecognized income tax benefits in the income tax provision . for additional discussion of income taxes and the effective income tax rate , see “ note 4. income taxes ” in the notes accompanying the audited consolidated financial statements included in item 8 of this form 10-k. net income replace_table_token_11_th 2020 compared with 2019 as a result of the factors described above , net income was $ 46.1 million in 2020 as compared to $ 41.3 million in 2019. non-gaap measures the following tables set forth the non-gaap financial measures of ebitda and ebitda margin . ebitda is defined as net income before interest , income taxes and depreciation and amortization . ebitda margin is equal to ebitda divided by sales . the following tables also present each of these measures as further adjusted . the company believes these non-gaap financial measures provide meaningful supplemental information as they are used by the company 's management to evaluate the company 's operating performance , enhance a reader 's understanding of the financial performance of the company , and facilitate a better comparison among fiscal periods and performance relative to its competitors , as the non-gaap measures exclude items that are not considered core to the company 's operations . these non-gaap results are presented for supplemental informational purposes only and should not be considered a substitute for the financial information presented in accordance with u.s. gaap . non-gaap financial measures should be read only in conjunction with the comparable u.s. gaap financial measures . the company 's non-gaap measures may not be comparable to other companies ' non-gaap measures . 33 the following is a reconciliation between the non-gaap financial measures of ebitda and ebitda margin to their most directly comparable u.s.

