net income excluding the effect of the tcja increased 13.9 % to $ 190.7 million or $ 0.87 per share . net income and diluted earnings per share excluding the effect of the tcja are non-gaap financial measures . management believes these measures help investors understand the effect of these on reported results . all of the company 's business lines experienced growth for the year , with residential pest control revenues up 6.4 % , commercial pest control revenues up 5.1 % and termite and ancillary services revenues up 9.7 % . 14 during the year , the company increased its presence around the world with the addition of 11 new orkin international franchises . hometeam pest defense announced that they had reached one million taexx ® installations . we acquired northwest exterminating based in marietta , ga which contributed in the growth of the company 's revenues the last five months . strategic acquisitions remain a priority for rollins . the company also continued to improve our routing and scheduling capabilities as we utilize our customer service manager ( “ csm ” ) boss and its virtual route management feature . boss has been fully implemented in the orkin 's u.s. operations . strategic acquisitions remain a priority for rollins , and as in the past , we will continue to seek out companies that are a “ fit ” for us in both , the pest control and wildlife areas of our business . results of operations—2017 versus 2016 overview the company 's revenues increased to $ 1.674 billion in 2017 , a 6.4 % increase compared to 2016. gross margin increased to 51.0 % for 2017 from 50.9 % in 2016. sales , general and administrative expense were 30.1 % of revenues in 2017 compared to 31.2 % in 2016. the company 's depreciation and amortization margin increased 0.2 percentage points to 3.4 % in 2017 compared to 3.2 % in 2016. rollins ' net income of $ 179.1 million in 2017 was an increase of $ 11.7 million or 7.0 % over $ 167.4 million in 2016. net profit margin improved to 10.7 % in 2017 from 10.6 % in 2016. rollins continued to expand our global brand recognition with acquisitions in the united states and canada as well as expanding our orkin international franchise program in numerous countries around the globe . the company is now in 53 countries and continues to seek new international opportunities . revenues revenues for the year ended december 31 , 2017 were $ 1.674 billion , an increase of $ 100.5 million or 6.4 % from 2016 revenues of $ 1.573 billion . growth occurred across all service lines and brands with our canadian and australian companies being hindered by unfavorable foreign currency exchange rates . organic growth and pricing accounted for approximately 4.5 % of our increase and our acquisitions contributed the remaining revenue growth . commercial pest control represented approximately 40 % of the company 's revenue in 2017 and grew 5.1 % due to increases in sales , an emphasis on closing leads , increased bed bug revenue , and acquisitions . commercial pest control was negatively impacted by foreign currency exchange as orkin canada and rollins australia are heavily commercial . residential pest control , which represented approximately 42 % of the company 's revenue , increased 6.4 % driven by an increase in lead closure , pricing , as well as increased taexx ® homebuilder installations , and acquisitions . the company 's termite business , which represented approximately 18 % of the company 's revenue , grew 9.7 % in 2017 due to acquisitions , increases in drywood fumigations and ancillary service sales , ( such as moisture control and insulation ) . the company implemented its traditional price increase program in june 2017. less than 2 % of the company 's revenue increase is attributable to pricing actions . approximately 80 % of the company 's pest control revenue was recurring in 2017 as well as 2016. the company 's foreign operations accounted for approximately 8 % and 7 % of total revenues for the years ended december 31 , 2017 and 2016 , respectively . the company established new franchises in several international countries around the globe in 2017 for a total of 81 orkin international franchises , two canadian critter control franchises , and eleven australian franchises operated by murray pest control and scientific pest management at december 31 , 2017 , compared to 70 orkin international franchises , two canadian critter control franchises and seven australian franchises at december 31 , 2016. international and domestic franchising revenue was less than 1 % of the company 's revenues for 2017. orkin had 128 and 120 franchises ( domestic and international ) at december 31 , 2017 and 2016 , respectively . the company had 89 critter control franchises at december 31 , 2017 , down 5 from 2016. critter control operations , inc. , a wholly-owned subsidiary of the company , has begun the process of purchasing critter control franchises . revenue from franchises was down 2.9 % in 2017 compared to 2016 as we acquire franchises from critter control . cost of services provided for the twelve months ended december 31 , 2017 cost of services provided increased $ 47.6 million or 6.2 % , compared to the twelve months ended december 31 , 2016. gross margin for the year increased to 51.0 % for 2017 compared to 50.9 % for 2016 due to favorable service salary cost as we utilize boss , our crm and operating system and vrm to improve our customer routing and scheduling to maximize efficiencies . story_separator_special_tag because it is not possible to accurately predict the ultimate result of the litigation , judgments concerning accruals for liabilities and costs associated with litigation are inherently uncertain and actual liabilities may vary from amounts estimated or accrued . however , in the opinion of management , the outcome of the litigation will not have a material adverse impact on the company 's financial condition or results of operations . contingency accruals are included in other current liabilities and long-term accrued liabilities on the company 's consolidated statements of financial position . defined benefit pension plans — in 2005 , the company ceased all future benefit accruals under the rollins , inc. defined benefit plan , although the company remains obligated to provide employees benefits earned through june 2005. the company also includes the waltham services , llc hourly employee pension plan to the company 's financial statements . the company accounts for these defined benefit plans in accordance with the fasb asc topic 715 “ compensation- retirement benefits ” , and engages an outside actuary to calculate its obligations and costs . with the assistance of the actuary , the company evaluates the significant assumptions used on a periodic basis including the estimated future return on plan assets , the discount rate , and other factors , and makes adjustments to these liabilities as necessary . 20 the company chooses an expected rate of return on plan assets based on historical results for similar allocations among asset classes , the investments strategy , and the views of our investment adviser . differences between the expected long-term return on plan assets and the actual return are amortized over future years . therefore , the net deferral of past asset gains or losses ultimately affects future pension expense . the company 's assumption for the expected return on plan assets is 7.0 % which is unchanged from the prior year . the discount rate reflects the current rate at which the pension liabilities could be effectively settled at the end of the year . in estimating this rate , the company utilizes a yield curve approach . the approach utilizes an economic model whereby the company 's expected benefit payments over the life of the plans is forecast and then compared to a portfolio of corporate bonds that will mature at the same time that the benefit payments are due in any given year . the economic model then calculates the one discount rate to apply to all benefit payments over the life of the plan which will result in the same total lump sum as the payments from the corporate bonds . the discount rate was 4.0 % as of december 31 , 2017 compared to 4.45 % in 2016 and 4.7 % in 2015. a lower discount rate increases the present value of benefit obligation . as set forth in note 14 to the company 's financial statements , included among the asset categories for the plan 's investments are real estate , tactical composite and alternative investments comprised of investments in real estate and hedge funds . these investments are categorized as level 3 investments and are valued using significant non-observable inputs which do not have a readily determinable fair value . in accordance with accounting standards update ( “ asu ” ) no . 2009-12 “ investments in certain entities that calculate net asset value per share ( or its equivalent ) , ” these investments are valued based on the net asset value per share calculated by the funds in which the plan has invested . these valuations are subject to judgments and assumptions of the funds which may prove to be incorrect , resulting in risks of incorrect valuation of these investments . the company seeks to mitigate against these risks by evaluating the appropriateness of the funds ' judgments and assumptions by reviewing the financial data included in the funds ' financial statements for reasonableness . as of december 31 , 2017 , the defined benefit plans were fully-funded and the recorded change within accumulated other comprehensive income increased stockholders ' equity by $ 19.0 million before tax and $ 14.2 million after tax . recent accounting guidance see note 1 - summary of significant accounting policies of the notes to financial statements ( part ii , item 8 of this form 10-k ) for further discussion . 21 forward-looking statements this annual report contains forward-looking statements within the meaning of the private securities litigation reform act of 1995. such forward-looking statements include statements regarding ( i ) management 's belief that the company competes favorably with competitors , ( ii ) the expectation for the company 's corporate tax rate for 2018 ; ( iii ) the company 's maintenance of sufficient supplies to fulfill its immediate needs and to alleviate potential short-term shortages in such supplies , ( iv ) any environmental remediation costs estimated to be incurred are not material to the company 's financial condition or operating results , ( v ) the adequacy of the company 's facilities to meet its future needs ; ( vi ) the outcome of litigation , as discussed in the legal proceedings section and elsewhere and the company 's belief that such litigation will not have a material adverse effect on the company 's financial condition , results of operations or liquidity ; ( vii ) the belief that the company has adequate liquid assets , funding sources and accruals to satisfy any claims ; ( viii ) the company 's expectation to continue its payment of cash dividends ; ( ix ) plans regarding acquisitions and franchise expansion ; ( x ) the adequacy of the company 's resources and borrowings to fund operations , obligations , and expansions ; ( xi ) management 's belief that the company is not expected to make a contribution to the plans in 2018 ; ( xii ) the company 's projected 2018 capital expenditures

cash and cash flow cash from operating activities is the principal source of cash generation for our businesses . the most significant source of cash in rollins ' cash flow from operations is customer-related activities , the largest of which is collecting cash resulting from services sales . the most significant operating use of cash is to pay our suppliers , employees , tax authorities and others for a wide range of material and services . the company 's cash and cash equivalents at december 31 , 2017 , 2016 , and 2015 were $ 107.1 million , $ 142.8 million , and $ 134.6 million , respectively . replace_table_token_13_th cash provided by operating activities the company 's operations generated cash of $ 235.4 million for the year ended december 31 , 2017 primarily from net income of $ 179.1 million , compared with cash provided by operating activities of $ 226.5 million in 2016 and $ 196.4 million in 2015. the company believes its current cash and cash equivalents balances , future cash flows expected to be generated from operating activities and available borrowings under its $ 175.0 million credit facility will be sufficient to finance its current operations and obligations , and fund expansion of the business for the foreseeable future . the company 's made no contributions to the rollins , inc. and its wholly-owned subsidiaries ' defined benefit retirement plans ( the “ plans ” ) during the year ended december 31 , 2017. the plans were fully-funded with a prepaid balance . we contributed $ 3.3 million and $ 5.0 million during the years ended december 31 , 2016 and 2015 , respectively , as a result of the plans ' funding status . the company 's management is not expecting to make a contribution during fiscal year 2018. in the opinion of management , additional plan contributions , if any , will not have a material effect on the company 's financial position , results of operations or liquidity .


 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.
     ```cash and cash flow cash from operating activities is the principal source of cash generation for our businesses . the most significant source of cash in rollins ' cash flow from operations is customer-related activities , the largest of which is collecting cash resulting from services sales . the most significant operating use of cash is to pay our suppliers , employees , tax authorities and others for a wide range of material and services . the company 's cash and cash equivalents at december 31 , 2017 , 2016 , and 2015 were $ 107.1 million , $ 142.8 million , and $ 134.6 million , respectively . replace_table_token_13_th cash provided by operating activities the company 's operations generated cash of $ 235.4 million for the year ended december 31 , 2017 primarily from net income of $ 179.1 million , compared with cash provided by operating activities of $ 226.5 million in 2016 and $ 196.4 million in 2015. the company believes its current cash and cash equivalents balances , future cash flows expected to be generated from operating activities and available borrowings under its $ 175.0 million credit facility will be sufficient to finance its current operations and obligations , and fund expansion of the business for the foreseeable future . the company 's made no contributions to the rollins , inc. and its wholly-owned subsidiaries ' defined benefit retirement plans ( the “ plans ” ) during the year ended december 31 , 2017. the plans were fully-funded with a prepaid balance . we contributed $ 3.3 million and $ 5.0 million during the years ended december 31 , 2016 and 2015 , respectively , as a result of the plans ' funding status . the company 's management is not expecting to make a contribution during fiscal year 2018. in the opinion of management , additional plan contributions , if any , will not have a material effect on the company 's financial position , results of operations or liquidity .
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 Suspicious Activity Report : net income excluding the effect of the tcja increased 13.9 % to $ 190.7 million or $ 0.87 per share . net income and diluted earnings per share excluding the effect of the tcja are non-gaap financial measures . management believes these measures help investors understand the effect of these on reported results . all of the company 's business lines experienced growth for the year , with residential pest control revenues up 6.4 % , commercial pest control revenues up 5.1 % and termite and ancillary services revenues up 9.7 % . 14 during the year , the company increased its presence around the world with the addition of 11 new orkin international franchises . hometeam pest defense announced that they had reached one million taexx ® installations . we acquired northwest exterminating based in marietta , ga which contributed in the growth of the company 's revenues the last five months . strategic acquisitions remain a priority for rollins . the company also continued to improve our routing and scheduling capabilities as we utilize our customer service manager ( “ csm ” ) boss and its virtual route management feature . boss has been fully implemented in the orkin 's u.s. operations . strategic acquisitions remain a priority for rollins , and as in the past , we will continue to seek out companies that are a “ fit ” for us in both , the pest control and wildlife areas of our business . results of operations—2017 versus 2016 overview the company 's revenues increased to $ 1.674 billion in 2017 , a 6.4 % increase compared to 2016. gross margin increased to 51.0 % for 2017 from 50.9 % in 2016. sales , general and administrative expense were 30.1 % of revenues in 2017 compared to 31.2 % in 2016. the company 's depreciation and amortization margin increased 0.2 percentage points to 3.4 % in 2017 compared to 3.2 % in 2016. rollins ' net income of $ 179.1 million in 2017 was an increase of $ 11.7 million or 7.0 % over $ 167.4 million in 2016. net profit margin improved to 10.7 % in 2017 from 10.6 % in 2016. rollins continued to expand our global brand recognition with acquisitions in the united states and canada as well as expanding our orkin international franchise program in numerous countries around the globe . the company is now in 53 countries and continues to seek new international opportunities . revenues revenues for the year ended december 31 , 2017 were $ 1.674 billion , an increase of $ 100.5 million or 6.4 % from 2016 revenues of $ 1.573 billion . growth occurred across all service lines and brands with our canadian and australian companies being hindered by unfavorable foreign currency exchange rates . organic growth and pricing accounted for approximately 4.5 % of our increase and our acquisitions contributed the remaining revenue growth . commercial pest control represented approximately 40 % of the company 's revenue in 2017 and grew 5.1 % due to increases in sales , an emphasis on closing leads , increased bed bug revenue , and acquisitions . commercial pest control was negatively impacted by foreign currency exchange as orkin canada and rollins australia are heavily commercial . residential pest control , which represented approximately 42 % of the company 's revenue , increased 6.4 % driven by an increase in lead closure , pricing , as well as increased taexx ® homebuilder installations , and acquisitions . the company 's termite business , which represented approximately 18 % of the company 's revenue , grew 9.7 % in 2017 due to acquisitions , increases in drywood fumigations and ancillary service sales , ( such as moisture control and insulation ) . the company implemented its traditional price increase program in june 2017. less than 2 % of the company 's revenue increase is attributable to pricing actions . approximately 80 % of the company 's pest control revenue was recurring in 2017 as well as 2016. the company 's foreign operations accounted for approximately 8 % and 7 % of total revenues for the years ended december 31 , 2017 and 2016 , respectively . the company established new franchises in several international countries around the globe in 2017 for a total of 81 orkin international franchises , two canadian critter control franchises , and eleven australian franchises operated by murray pest control and scientific pest management at december 31 , 2017 , compared to 70 orkin international franchises , two canadian critter control franchises and seven australian franchises at december 31 , 2016. international and domestic franchising revenue was less than 1 % of the company 's revenues for 2017. orkin had 128 and 120 franchises ( domestic and international ) at december 31 , 2017 and 2016 , respectively . the company had 89 critter control franchises at december 31 , 2017 , down 5 from 2016. critter control operations , inc. , a wholly-owned subsidiary of the company , has begun the process of purchasing critter control franchises . revenue from franchises was down 2.9 % in 2017 compared to 2016 as we acquire franchises from critter control . cost of services provided for the twelve months ended december 31 , 2017 cost of services provided increased $ 47.6 million or 6.2 % , compared to the twelve months ended december 31 , 2016. gross margin for the year increased to 51.0 % for 2017 compared to 50.9 % for 2016 due to favorable service salary cost as we utilize boss , our crm and operating system and vrm to improve our customer routing and scheduling to maximize efficiencies . story_separator_special_tag because it is not possible to accurately predict the ultimate result of the litigation , judgments concerning accruals for liabilities and costs associated with litigation are inherently uncertain and actual liabilities may vary from amounts estimated or accrued . however , in the opinion of management , the outcome of the litigation will not have a material adverse impact on the company 's financial condition or results of operations . contingency accruals are included in other current liabilities and long-term accrued liabilities on the company 's consolidated statements of financial position . defined benefit pension plans — in 2005 , the company ceased all future benefit accruals under the rollins , inc. defined benefit plan , although the company remains obligated to provide employees benefits earned through june 2005. the company also includes the waltham services , llc hourly employee pension plan to the company 's financial statements . the company accounts for these defined benefit plans in accordance with the fasb asc topic 715 “ compensation- retirement benefits ” , and engages an outside actuary to calculate its obligations and costs . with the assistance of the actuary , the company evaluates the significant assumptions used on a periodic basis including the estimated future return on plan assets , the discount rate , and other factors , and makes adjustments to these liabilities as necessary . 20 the company chooses an expected rate of return on plan assets based on historical results for similar allocations among asset classes , the investments strategy , and the views of our investment adviser . differences between the expected long-term return on plan assets and the actual return are amortized over future years . therefore , the net deferral of past asset gains or losses ultimately affects future pension expense . the company 's assumption for the expected return on plan assets is 7.0 % which is unchanged from the prior year . the discount rate reflects the current rate at which the pension liabilities could be effectively settled at the end of the year . in estimating this rate , the company utilizes a yield curve approach . the approach utilizes an economic model whereby the company 's expected benefit payments over the life of the plans is forecast and then compared to a portfolio of corporate bonds that will mature at the same time that the benefit payments are due in any given year . the economic model then calculates the one discount rate to apply to all benefit payments over the life of the plan which will result in the same total lump sum as the payments from the corporate bonds . the discount rate was 4.0 % as of december 31 , 2017 compared to 4.45 % in 2016 and 4.7 % in 2015. a lower discount rate increases the present value of benefit obligation . as set forth in note 14 to the company 's financial statements , included among the asset categories for the plan 's investments are real estate , tactical composite and alternative investments comprised of investments in real estate and hedge funds . these investments are categorized as level 3 investments and are valued using significant non-observable inputs which do not have a readily determinable fair value . in accordance with accounting standards update ( “ asu ” ) no . 2009-12 “ investments in certain entities that calculate net asset value per share ( or its equivalent ) , ” these investments are valued based on the net asset value per share calculated by the funds in which the plan has invested . these valuations are subject to judgments and assumptions of the funds which may prove to be incorrect , resulting in risks of incorrect valuation of these investments . the company seeks to mitigate against these risks by evaluating the appropriateness of the funds ' judgments and assumptions by reviewing the financial data included in the funds ' financial statements for reasonableness . as of december 31 , 2017 , the defined benefit plans were fully-funded and the recorded change within accumulated other comprehensive income increased stockholders ' equity by $ 19.0 million before tax and $ 14.2 million after tax . recent accounting guidance see note 1 - summary of significant accounting policies of the notes to financial statements ( part ii , item 8 of this form 10-k ) for further discussion . 21 forward-looking statements this annual report contains forward-looking statements within the meaning of the private securities litigation reform act of 1995. such forward-looking statements include statements regarding ( i ) management 's belief that the company competes favorably with competitors , ( ii ) the expectation for the company 's corporate tax rate for 2018 ; ( iii ) the company 's maintenance of sufficient supplies to fulfill its immediate needs and to alleviate potential short-term shortages in such supplies , ( iv ) any environmental remediation costs estimated to be incurred are not material to the company 's financial condition or operating results , ( v ) the adequacy of the company 's facilities to meet its future needs ; ( vi ) the outcome of litigation , as discussed in the legal proceedings section and elsewhere and the company 's belief that such litigation will not have a material adverse effect on the company 's financial condition , results of operations or liquidity ; ( vii ) the belief that the company has adequate liquid assets , funding sources and accruals to satisfy any claims ; ( viii ) the company 's expectation to continue its payment of cash dividends ; ( ix ) plans regarding acquisitions and franchise expansion ; ( x ) the adequacy of the company 's resources and borrowings to fund operations , obligations , and expansions ; ( xi ) management 's belief that the company is not expected to make a contribution to the plans in 2018 ; ( xii ) the company 's projected 2018 capital expenditures

