our products are used in mro activities and related projects , as well as for larger-scale projects in the utility , industrial and infrastructure markets and a diverse range of industrial applications including communications , energy , engineering and construction , general manufacturing , mining , marine construction and marine transportation , infrastructure , oilfield services , petrochemical , transportation , utility , wastewater treatment and food and beverage . activity in the mro market has been inconsistent , while the level of competition has increased . our revenue is driven in part by the level of capital spending within the end-markets we serve . because many of these end-markets defer capital expenditures during periods of economic downturns , our business has experienced cyclicality . our revenue has been and will continue to be impacted by fluctuations in capital spending and by our ability to drive demand through our sales and marketing initiatives and the continued development and marketing of our private branded products , such as lifeguard . the recent diminished level of economic activity and fluctuating commodity prices have impacted sales and the level of demand . this has had and will continue to have an impact on our performance , until economic activity and demand improves . our direct costs will continue to be influenced significantly by the prices we pay our suppliers to procure the products we distribute to our customers . changes in these costs may result , for example , from increases or decreases in raw material costs , changes in our relationships with suppliers or changes in vendor rebates . our operating expenses will continue to be affected by our investment in sales , marketing and customer support personnel and commissions paid to our sales force for revenue and profit generated . some of our operating expenses are related to our fixed infrastructure , including rent , utilities , administrative salaries , maintenance , insurance and supplies . to meet our customers ' needs for an extensive product offering and short delivery times , we will need to continue to maintain adequate inventory levels . our ability to obtain this inventory will depend , in part , on our relationships with suppliers . critical accounting policies and estimates critical accounting policies are those that both are important to the accurate portrayal of a company 's financial condition and results of operations , and require subjective or complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . in order to prepare financial statements that conform to accounting principles generally accepted in the united states , commonly referred to as gaap , we make estimates and assumptions that affect the amounts reported in our financial statements and accompanying notes . certain estimates are particularly sensitive due to their significance to the financial statements and the possibility that future events may be significantly different from our expectations . we have identified the following accounting policies as those that require us to make the most subjective or complex judgments in order to fairly present our consolidated financial position and results of operations . actual results in these areas could differ materially from management 's estimates under different assumptions and conditions . inventories inventories are valued at the lower of cost , using the average cost method , or market . we continually monitor our inventory levels at each of our distribution centers . our reserve for inventory is based on the age of the inventory , movements of our inventory over the prior twelve months and the experience of our purchasing and sales departments in estimating demand for the product in the succeeding year . our inventories are generally not susceptible to technological obsolescence . a 20 % change in our estimate at december 31 , 2016 would have resulted in a change in loss before income taxes of $ 1.3 million . 14 intangible assets the company 's intangible assets , excluding goodwill , represent purchased tradenames and customer relationships . tradenames are not being amortized and are treated as indefinite-lived assets . tradenames are tested for recoverability on an annual basis in october of each year , or when there is a triggering event . the annual test for 2016 combined with the interim test showed an impairment of certain of the tradenames at southern , and we recorded a pre-tax charge of less than $ 0.1 million . the company assigns useful lives to its intangible assets based on the periods over which it expects the assets to contribute directly or indirectly to the future cash flows of the company . customer relationships are amortized over 6 to 9 year useful lives . if events or circumstances were to indicate that any of the company 's definite-lived intangible assets might be impaired , the company would assess recoverability based on the estimated undiscounted future cash flows to be generated from the applicable intangible asset . when performing quantitative assessments for impairment , we use various assumptions in determining the current fair value of these indefinite-lived intangible assets , including future expected cash flows and discount rates , as well as other fair value measures . if actual results are not consistent with our assumptions and judgments used in estimating future cash flows and asset fair values , we may be exposed to future impairment charges that could be material to our results of operations . vendor rebates many of our arrangements with our vendors entitle us to receive a rebate of a specified amount when we achieve any of a number of measures , generally related to the volume of purchases from the vendor . story_separator_special_tag moreover , because copper , steel , aluminum , nickel and petrochemical products are components of the industrial products we sell , fluctuations in the costs of these and other commodities have historically affected our operating results . we estimate decreasing metal prices negatively impacted sales by approximately 8 % in 2016. to the extent commodity prices decline , the net realizable value of our existing inventory could also decline , and our gross profit can be adversely affected because of either reduced selling prices or lower of cost or market adjustments in the carrying value of our inventory . if we turn our inventory approximately three times a year , the impact of changes in commodity prices in any particular quarter would primarily affect the results of the succeeding two calendar quarters . if we are unable to pass on to our customers future cost increases due to inflation or rising commodity prices , our operating results could be adversely affected . story_separator_special_tag style= `` font : 10pt times new roman , times , serif ; margin : 0pt 0 ; text-indent : 0.25in `` > on october 3 , 2016 , in connection with the vertex acquisition , we entered into a first amendment to our existing fourth amended and restated loan and security agreement with bank of america , n.a . as agent and lender ( the “ 2015 loan agreement ” ) to add vertex as borrower ( and lien grantor ) and include vertex 's eligible accounts receivable and eligible inventory in the borrowing base . the amendment also expanded the 2015 loan agreement to include incremental availability on eligible accounts receivable and inventory up to $ 5 million , which will be amortized quarterly , starting april 1 , 2017 , over two and a half years . the 2015 loan agreement provides a $ 100 million revolving credit facility and expires on september 30 , 2020. under certain circumstances the company may request an increase in the commitment by an additional $ 50 million . borrowings under the 2015 loan agreement bear interest at the british bankers association libor rate plus 100 to 150 basis points based on availability , if a libor loan , or at a fluctuating rate equal to the greatest of the agent 's prime rate , the federal funds rate plus 50 basis points , or libor for a 30-day interest period plus 150 basis points , if a base rate loan . the unused commitment fee is 25 basis points . availability under the 2015 loan agreement is limited to a borrowing base equal to 85 % of the value of eligible accounts receivable , plus the lesser of 70 % of the value of eligible inventory or 90 % of the net orderly liquidation value percentage of the value of eligible inventory , in each case less certain reserves . the 2015 loan agreement is secured by substantially all of the property of the company , other than real estate . covenants in the 2015 loan agreement require us to maintain certain minimum financial ratios and or availability levels . repaid amounts can be re-borrowed subject to the borrowing base . as of december 31 , 2016 , we met the availability-based covenant . 21 contractual obligations the following table describes our cash commitments to settle contractual obligations as of december 31 , 2016. replace_table_token_12_th ( 1 ) these obligations reflect purchase orders outstanding with manufacturers as of december 31 , 2016. we believe that some of these obligations may be cancellable upon negotiation with our vendors , but we are treating these as non-cancellable for this disclosure due to the absence of an express cancellation right . capital expenditures we made capital expenditures of $ 1.3 million , $ 3.1 million and $ 2.2 million in the years ended december 31 , 2016 , 2015 and 2014 , respectively . the 2015 and 2014 expenditures included amounts of $ 1.9 million and $ 1.0 million , respectively , to complete the renovation and build out of the facility purchased in 2013 which was used to consolidate the southwest operations in houston in 2015. off-balance sheet arrangements we have no off-balance sheet arrangements , other than operating leases . financial derivatives we have no financial derivatives . market risk management we are exposed to market risks arising from changes in market prices , including movements in interest rates and commodity prices . interest rate risk borrowings under our 2015 loan agreement bear interest at variable interest rates and therefore are sensitive to changes in the general level of interest rates . at december 31 , 2016 , the weighted average interest rate on our $ 60.4 million of variable interest debt was approximately 2.4 % . while our variable rate debt obligations expose us to the risk of rising interest rates , management does not believe that the potential exposure is material to our overall financial performance or results of operations . based on december 31 , 2016 borrowing levels , a 1.0 % change in the applicable interest rates would have a $ 0.6 million effect on our annual interest expense . commodity risk we are subject to periodic fluctuations in metals prices , as our products have varying levels of metals content including copper , steel , aluminum and nickel , in their construction . in addition , petrochemical prices also impact certain products we purchase . profitability is influenced by these fluctuations as prices change between the time we buy and sell our products . foreign currency exchange rate risk our products are purchased and invoiced in u.s. dollars and in euros . we believe we have minimal exposure to foreign exchange rate risk . 22 climate risk our operations are subject to inclement weather conditions including hurricanes , earthquakes and abnormal weather events . our previous experience from these events has had a minimal effect on our operations . factors affecting future

liquidity and capital resources our primary capital needs are for working capital obligations , capital expenditures , and other general corporate purposes , including acquisitions . we have currently suspended purchases under our stock repurchase program . our primary sources of working capital are cash from operations supplemented by bank borrowings . liquidity is defined as the ability to generate adequate amounts of cash to meet the current need for cash . we assess our liquidity in terms of our ability to generate cash to fund our operating activities . significant factors which could affect liquidity include the following : the adequacy of available bank lines of credit ; cash flows generated from operating activities ; capital expenditures ; acquisitions ; and the ability to attract long-term capital with satisfactory terms comparison of years ended december 31 , 2016 and 2015 our net cash provided by operating activities was $ 17.2 million in 2016 compared to $ 31.8 million in 2015. we had a net loss of $ 6.0 million in 2016 compared to net income of $ 2.0 million in 2015. changes in our operating assets and liabilities resulted in cash provided by operating activities of $ 16.7 million in 2016. excluding the operating assets and liabilities acquired as part of the vertex acquisition , inventories decreased $ 10.5 million as we continued to improve inventory profiles . accounts receivable decreased $ 4.0 million , primarily due to decreased sales in 2016. accrued and other current liabilities increased $ 2.6 million primarily due to increased inventory purchases in the latter part of the year .


 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 our primary capital needs are for working capital obligations , capital expenditures , and other general corporate purposes , including acquisitions . we have currently suspended purchases under our stock repurchase program . our primary sources of working capital are cash from operations supplemented by bank borrowings . liquidity is defined as the ability to generate adequate amounts of cash to meet the current need for cash . we assess our liquidity in terms of our ability to generate cash to fund our operating activities . significant factors which could affect liquidity include the following : the adequacy of available bank lines of credit ; cash flows generated from operating activities ; capital expenditures ; acquisitions ; and the ability to attract long-term capital with satisfactory terms comparison of years ended december 31 , 2016 and 2015 our net cash provided by operating activities was $ 17.2 million in 2016 compared to $ 31.8 million in 2015. we had a net loss of $ 6.0 million in 2016 compared to net income of $ 2.0 million in 2015. changes in our operating assets and liabilities resulted in cash provided by operating activities of $ 16.7 million in 2016. excluding the operating assets and liabilities acquired as part of the vertex acquisition , inventories decreased $ 10.5 million as we continued to improve inventory profiles . accounts receivable decreased $ 4.0 million , primarily due to decreased sales in 2016. accrued and other current liabilities increased $ 2.6 million primarily due to increased inventory purchases in the latter part of the year .
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 Suspicious Activity Report : our products are used in mro activities and related projects , as well as for larger-scale projects in the utility , industrial and infrastructure markets and a diverse range of industrial applications including communications , energy , engineering and construction , general manufacturing , mining , marine construction and marine transportation , infrastructure , oilfield services , petrochemical , transportation , utility , wastewater treatment and food and beverage . activity in the mro market has been inconsistent , while the level of competition has increased . our revenue is driven in part by the level of capital spending within the end-markets we serve . because many of these end-markets defer capital expenditures during periods of economic downturns , our business has experienced cyclicality . our revenue has been and will continue to be impacted by fluctuations in capital spending and by our ability to drive demand through our sales and marketing initiatives and the continued development and marketing of our private branded products , such as lifeguard . the recent diminished level of economic activity and fluctuating commodity prices have impacted sales and the level of demand . this has had and will continue to have an impact on our performance , until economic activity and demand improves . our direct costs will continue to be influenced significantly by the prices we pay our suppliers to procure the products we distribute to our customers . changes in these costs may result , for example , from increases or decreases in raw material costs , changes in our relationships with suppliers or changes in vendor rebates . our operating expenses will continue to be affected by our investment in sales , marketing and customer support personnel and commissions paid to our sales force for revenue and profit generated . some of our operating expenses are related to our fixed infrastructure , including rent , utilities , administrative salaries , maintenance , insurance and supplies . to meet our customers ' needs for an extensive product offering and short delivery times , we will need to continue to maintain adequate inventory levels . our ability to obtain this inventory will depend , in part , on our relationships with suppliers . critical accounting policies and estimates critical accounting policies are those that both are important to the accurate portrayal of a company 's financial condition and results of operations , and require subjective or complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . in order to prepare financial statements that conform to accounting principles generally accepted in the united states , commonly referred to as gaap , we make estimates and assumptions that affect the amounts reported in our financial statements and accompanying notes . certain estimates are particularly sensitive due to their significance to the financial statements and the possibility that future events may be significantly different from our expectations . we have identified the following accounting policies as those that require us to make the most subjective or complex judgments in order to fairly present our consolidated financial position and results of operations . actual results in these areas could differ materially from management 's estimates under different assumptions and conditions . inventories inventories are valued at the lower of cost , using the average cost method , or market . we continually monitor our inventory levels at each of our distribution centers . our reserve for inventory is based on the age of the inventory , movements of our inventory over the prior twelve months and the experience of our purchasing and sales departments in estimating demand for the product in the succeeding year . our inventories are generally not susceptible to technological obsolescence . a 20 % change in our estimate at december 31 , 2016 would have resulted in a change in loss before income taxes of $ 1.3 million . 14 intangible assets the company 's intangible assets , excluding goodwill , represent purchased tradenames and customer relationships . tradenames are not being amortized and are treated as indefinite-lived assets . tradenames are tested for recoverability on an annual basis in october of each year , or when there is a triggering event . the annual test for 2016 combined with the interim test showed an impairment of certain of the tradenames at southern , and we recorded a pre-tax charge of less than $ 0.1 million . the company assigns useful lives to its intangible assets based on the periods over which it expects the assets to contribute directly or indirectly to the future cash flows of the company . customer relationships are amortized over 6 to 9 year useful lives . if events or circumstances were to indicate that any of the company 's definite-lived intangible assets might be impaired , the company would assess recoverability based on the estimated undiscounted future cash flows to be generated from the applicable intangible asset . when performing quantitative assessments for impairment , we use various assumptions in determining the current fair value of these indefinite-lived intangible assets , including future expected cash flows and discount rates , as well as other fair value measures . if actual results are not consistent with our assumptions and judgments used in estimating future cash flows and asset fair values , we may be exposed to future impairment charges that could be material to our results of operations . vendor rebates many of our arrangements with our vendors entitle us to receive a rebate of a specified amount when we achieve any of a number of measures , generally related to the volume of purchases from the vendor . story_separator_special_tag moreover , because copper , steel , aluminum , nickel and petrochemical products are components of the industrial products we sell , fluctuations in the costs of these and other commodities have historically affected our operating results . we estimate decreasing metal prices negatively impacted sales by approximately 8 % in 2016. to the extent commodity prices decline , the net realizable value of our existing inventory could also decline , and our gross profit can be adversely affected because of either reduced selling prices or lower of cost or market adjustments in the carrying value of our inventory . if we turn our inventory approximately three times a year , the impact of changes in commodity prices in any particular quarter would primarily affect the results of the succeeding two calendar quarters . if we are unable to pass on to our customers future cost increases due to inflation or rising commodity prices , our operating results could be adversely affected . story_separator_special_tag style= `` font : 10pt times new roman , times , serif ; margin : 0pt 0 ; text-indent : 0.25in `` > on october 3 , 2016 , in connection with the vertex acquisition , we entered into a first amendment to our existing fourth amended and restated loan and security agreement with bank of america , n.a . as agent and lender ( the “ 2015 loan agreement ” ) to add vertex as borrower ( and lien grantor ) and include vertex 's eligible accounts receivable and eligible inventory in the borrowing base . the amendment also expanded the 2015 loan agreement to include incremental availability on eligible accounts receivable and inventory up to $ 5 million , which will be amortized quarterly , starting april 1 , 2017 , over two and a half years . the 2015 loan agreement provides a $ 100 million revolving credit facility and expires on september 30 , 2020. under certain circumstances the company may request an increase in the commitment by an additional $ 50 million . borrowings under the 2015 loan agreement bear interest at the british bankers association libor rate plus 100 to 150 basis points based on availability , if a libor loan , or at a fluctuating rate equal to the greatest of the agent 's prime rate , the federal funds rate plus 50 basis points , or libor for a 30-day interest period plus 150 basis points , if a base rate loan . the unused commitment fee is 25 basis points . availability under the 2015 loan agreement is limited to a borrowing base equal to 85 % of the value of eligible accounts receivable , plus the lesser of 70 % of the value of eligible inventory or 90 % of the net orderly liquidation value percentage of the value of eligible inventory , in each case less certain reserves . the 2015 loan agreement is secured by substantially all of the property of the company , other than real estate . covenants in the 2015 loan agreement require us to maintain certain minimum financial ratios and or availability levels . repaid amounts can be re-borrowed subject to the borrowing base . as of december 31 , 2016 , we met the availability-based covenant . 21 contractual obligations the following table describes our cash commitments to settle contractual obligations as of december 31 , 2016. replace_table_token_12_th ( 1 ) these obligations reflect purchase orders outstanding with manufacturers as of december 31 , 2016. we believe that some of these obligations may be cancellable upon negotiation with our vendors , but we are treating these as non-cancellable for this disclosure due to the absence of an express cancellation right . capital expenditures we made capital expenditures of $ 1.3 million , $ 3.1 million and $ 2.2 million in the years ended december 31 , 2016 , 2015 and 2014 , respectively . the 2015 and 2014 expenditures included amounts of $ 1.9 million and $ 1.0 million , respectively , to complete the renovation and build out of the facility purchased in 2013 which was used to consolidate the southwest operations in houston in 2015. off-balance sheet arrangements we have no off-balance sheet arrangements , other than operating leases . financial derivatives we have no financial derivatives . market risk management we are exposed to market risks arising from changes in market prices , including movements in interest rates and commodity prices . interest rate risk borrowings under our 2015 loan agreement bear interest at variable interest rates and therefore are sensitive to changes in the general level of interest rates . at december 31 , 2016 , the weighted average interest rate on our $ 60.4 million of variable interest debt was approximately 2.4 % . while our variable rate debt obligations expose us to the risk of rising interest rates , management does not believe that the potential exposure is material to our overall financial performance or results of operations . based on december 31 , 2016 borrowing levels , a 1.0 % change in the applicable interest rates would have a $ 0.6 million effect on our annual interest expense . commodity risk we are subject to periodic fluctuations in metals prices , as our products have varying levels of metals content including copper , steel , aluminum and nickel , in their construction . in addition , petrochemical prices also impact certain products we purchase . profitability is influenced by these fluctuations as prices change between the time we buy and sell our products . foreign currency exchange rate risk our products are purchased and invoiced in u.s. dollars and in euros . we believe we have minimal exposure to foreign exchange rate risk . 22 climate risk our operations are subject to inclement weather conditions including hurricanes , earthquakes and abnormal weather events . our previous experience from these events has had a minimal effect on our operations . factors affecting future

