sbh has incurred significant transaction costs associated with the spectrum merger that may impact the comparability of the consolidated results of operations . effective as of the closing date of the spectrum merger , management and control of the organization was assumed by its majority-owned subsidiary , spectrum , and the company continues to operate as the consumer products company that was principally conducted by its majority owned subsidiary . see note 4 – acquisitions to the consolidated financial statements , included elsewhere in this annual report , for more information on the spectrum merger and associated transaction costs . ﻿ additionally , as a result of the spectrum merger , hrg and spectrum will join in the filing of u.s. consolidated tax return starting july 13 , 2018. the form of the spectrum merger allows for the hrg capital and net operating loss carryforwards to be able to be used to offset spectrum 's future income and the u.s. tax gain on the sale of the gbl business to energizer . as a result , sbh released $ 365.3 million of valuation allowance on its net deferred tax assets since it is now more likely than not that the assets will be realized . as of sep tember 30 , 2018 , sbh had $ 247.3 million of valuation allowance recorded on u.s. deferred tax assets , primarily net operating losses and tax credits subject to certain ownership change limitations on their use . acquisitions ﻿ the following acquisition activity has a significant impact on the comparability of the financial results on the consolidated financial statements . ﻿ · petmatrix – on june 1 , 2017 , the company completed the acquisition of petmatrix llc , a manufacturer and marketer of rawhide-free dog chews consisting primarily of the dreambone ® and smartbones® brands . the results of petmatrix 's operations since june 1 , 2017 are included in the company 's consolidated statements of income and reported within the pet reporting segment for the years ended september 30 , 2017 and 2018 . · glofish – on may 12 , 2017 , the company entered into an asset purchase agreement with yorktown technologies lp , for the acquisition of assets consisting of the glofish operations , including transfer of the glofish® brand , related intellectual property and operating agreements . the glofish operations consist of the development and licensing of fluorescent fish for sale through retail and online channels . the results of glofish 's operations since may 12 , 2017 are included in the company 's consolidated statement of income and reported within the pet reporting segment for the years ended september 30 , 2017 and 2018 . ﻿ see note 4 - acquisitions in the notes to the consolidated financial statements , included elsewhere within this annual report , for additional detail regarding acquisition activity . ﻿ restructuring activity ﻿ we continually seek to improve our operational efficiency , match our manufacturing capacity and product costs to market demand and better utilize our manufacturing resources . we have undertaken various initiatives to reduce manufacturing and operating costs . the most significant of these initiatives are : ﻿ · gac business rationalization initiatives , which began during the third quarter of the year ended september 30 , 2016 and is closed as of september 30 , 2018 ; · pet rightsizing initiative , which began during the second quarter of the year ended september 30 , 2017 and is closed as of september 30 , 2018 ; · hhi distribution center consolidation , which began during the second quarter of the year ended september 30 , 2017 and is anticipated to be closed by december 31 , 2018 . ﻿ see note 5 - restructuring and related charges in the notes to the consolidated financial statements , included elsewhere within this annual report , for additional detail regarding restructuring and related activity . ﻿ 34 refinancing activity ﻿ the following recent financing activity has a significant impact on the comparability of financial results on the consolidated financial statements . ﻿ · during the year ended september 30 , 2018 , hrg paid off $ 92.0 million aggregate principal amount of the hgi energy notes , as further detailed in note 11 – debt to the consolidated financial statements , included elsewhere within this annual report ; redeemed all $ 864.4 million outstanding principal amount of its 7.875 % senior secured notes due 2019 at a redemption price equal to 100 % of the principal amount , plus accrued and unpaid interest to the redemption rate ; and paid off $ 50.0 million aggregate principal amount of a hgi funding loan due july 13 , 2018 . · during the year ended september 30 , 2017 , spectrum refinanced a portion of its debt to extend maturities and reduce borrowing costs including entering into various amendments to the credit agreement under its term loans resulting in an increase to the usd term loan , repayment of the euro term loan , increase in the capacity of the revolver facility and changes to the applicable variable interest rates . · during the year ended september 30 , 2016 , spectrum refinanced a portion of its debt to extend maturities and reduce borrowing costs including the issuance of euro denominated notes and repurchase of the 6.375 % notes . ﻿ see note 11 - debt in the notes to the consolidated financial statements , included elsewhere within this annual report , for additional detail regarding debt . ﻿ safety recall ﻿ on june 10 , 2017 , the company initiated a voluntary safety recall of various rawhide chew products for dogs sold by the company 's pet segment due to possible chemical contamination . the company recognized a loss of $ 35.8 million for the year ended september 30 , 2017 associated with the recall , which comprised of inventory write-offs of $ 15.0 million , customer losses of $ 7.1 story_separator_special_tag ﻿ income from discontinued operations , net of tax , for the year ended sep tember 30 , 2018 increased $ 225.2 million , or 65.8 % , due to the decrease in income from gba d iscontinued operations of $ 73.5 million and increase in income from fgl discontinued operations of $ 298.7 million . the decrease in income from gba discontinued operations is primarily attributable to incremental transaction related costs of $ 78.1 million that was recognized for the planned divestitures , decrease in net sales , increased operating expenses for selling and marketing activities and increased interest expense allocated to discontinued operations from increased variable rates . the increase in income from fgl is primarily attributable to the recognition of $ 445.9 million to reclassify accumulated other comprehensive income related to f g l , that was previously included in equity ; offset by lower income from operations with the completion of the sale of the hrg insurance operations on november 30 , 2017 and the recognition of a write-down on net assets of $ 14.2 million on fgl and front street upon completion of sale . ﻿ income from discontinued operations , net of tax , for the year ended september 30 , 2017 increased $ 443.9 million , or 437.3 % , due to the increase in income from gba discontinued o perations of $ 95.5 million , an increase of $ 389.2 million from hrg insurance operations ; partially offset by $ 40.8 million income from discontinued operations related to compass during the year ended september 30 , 2016. the increase from gba discontinued operations is due to cost improvements , decrease in interest expense allocated to discontinued operations from refinancing activity previously discussed , and lower income tax expense driven by an incremental $ 25.5 million expense during the year ended september 30 , 2016 to record a tax contingency reserve for a tax exposure in germany where a local court ruled against our characterization of certain assets as amortizable under german tax law . the increase in discontinued operations from hrg insurance operations was due to a $ 304.4 million write-down of assets held for sale to the fair value less cost to sell , the reversal of a $ 15.2 million estimated alternative minimum tax liability for a 338 tax election which is not expected to result in a taxable gain , and an increase in operating results . ﻿ noncontrolling interest . the net income attributable to noncontrolling interest reflects the share of the net income of our subsidiaries , which are not wholly-owned , attributable to the accounting interest . such amount varies in relation to such subsidiary 's net income or loss for the period and the percentage interest not owned by sbh . effective the close of the spectrum merger , the net income from spectrum is fully recognized by sbh for all periods subsequent to july 13 , 2018 as spectrum became wholly-owned as a result of the transaction . 40 sb / rh ﻿ the following is summarized consolidated results of operations for sb/rh for the years ended september 30 , 2018 , 2017 and 2016 : ﻿ ﻿ replace_table_token_10_th for the year ended september 30 , 2018 , the increase in net sales of $ 136.4 million , or 4.5 % , and decrease in gross profit of $ 22.4 million are attributable to the changes in sbh previously discussed . the increase in operating expenses of $ 134.2 million is primarily attributable to the changes in sbh previously discussed excluding the impact in hrg operating costs and transaction costs from the spectrum merger . an increase in interest expense of $ 6.3 million is primarily attributable to interest costs on variable interest debt and incremental borrowings on $ 520 million of debt with the parent company . for the year ended september 30 , 2017 , the decrease in net sales of $ 19.9 million , or 0.7 % , and decrease in gross profit of $ 61.7 million are attributable to the chang es in sbh previously discussed . the i ncrease in operating expenses of $ 25.1 million is primarily attributable to the change in sbh previously discussed , excluding the impact in hrg corporate operating costs . the d ecrease in interest expense of $ 20.7 million is primarily attributable to lower borrowing costs and incremental premium paid f or debt redemption in the prior year due to the refinancing activities previously discussed . ﻿ income taxes . t he effective tax rate was ( 787.4 % ) for the year ended september 30 , 2018 compared to 24.2 % for the year ended september 30 , 2017 and ( 16 . 5 % ) for the year ended september 30 , 2016. our effective tax rate for the year ended september 30 , 2018 was significantly impacted by the tax reform act and goodwill impairment as further detailed in sbh above . our effective tax rate for the year ended september 30 , 2017 differs from the u.s federal statutory rate of 35 % due to income earned outside the u.s. that is subject to statutory rates lower than 35 % . additionally , the company recognized a $ 33.4 million tax benefit for changes in our assessment over our ability to effectively repatriate tax-free non-u.s. earnings upon which liabilities were previously recorded , and a $ 13.1 million tax benefit for the recognition of additional federal and state tax credits . the company also recorded a $ 14.7 million valuation allowance on additional state net operating losses that more likely than not will expire unused . our effective tax rate applied to the years ended september 30 , 2016 differs from the u.s. federal statutory rate of 35 % primarily due to the release of valuation allowances on u.s. net operating losses deferred tax assets and income earned outside the u.s. that is subject to statutory rates lower

cash flows from financing activities ﻿ cash flows used by financing activities for sbh continuing operations increased $ 1,106.9 million for the year ended september 30 , 2018 due to reduced proceeds from debt , incremental debt repayment , and dividend payments to sbh shareholders after completion of the spectrum merger . cash flows used by financing activities for sbh continuing operations decreased $ 445.0 million for the year ended september 30 , 2017 due to the reduction of debt net proceeds from debt financing activity , reduction of debt payments ; partially offset by an increase in repurchases of spectrum stock , share based tax withholdings , and payment of dividends to spectrum non-controlling interest ﻿ cash flows provided by financing activities for sb/rh continuing operations increased $ 432.5 million for the year ended september 30 , 2018 due to incremental proceeds from the issuance of debt with its parent company of $ 520 million , lower payment on spectrum debt ; offset by increased dividend payments to parent company . cash flows used by financing activities for sb/rh continuing operations decreased $ 148.7 million for the year ended september 30 , 2017 due to the reduction of debt net proceeds from spectrum debt financing activity , reduction of payments on spectrum debt ; partially offset by an increase in dividends paid to parent company and the purchase of the non-controlling interest in shaser for $ 12.6 million . ﻿ debt ﻿ during the year ended september 30 , 2018 , the company recognized reduced proceeds from the issuance of debt financing of $ 296.0 million primarily due to the issuance of usd term loan debt and hgi funding 2017 loan in the prior 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.
     ```cash flows from financing activities ﻿ cash flows used by financing activities for sbh continuing operations increased $ 1,106.9 million for the year ended september 30 , 2018 due to reduced proceeds from debt , incremental debt repayment , and dividend payments to sbh shareholders after completion of the spectrum merger . cash flows used by financing activities for sbh continuing operations decreased $ 445.0 million for the year ended september 30 , 2017 due to the reduction of debt net proceeds from debt financing activity , reduction of debt payments ; partially offset by an increase in repurchases of spectrum stock , share based tax withholdings , and payment of dividends to spectrum non-controlling interest ﻿ cash flows provided by financing activities for sb/rh continuing operations increased $ 432.5 million for the year ended september 30 , 2018 due to incremental proceeds from the issuance of debt with its parent company of $ 520 million , lower payment on spectrum debt ; offset by increased dividend payments to parent company . cash flows used by financing activities for sb/rh continuing operations decreased $ 148.7 million for the year ended september 30 , 2017 due to the reduction of debt net proceeds from spectrum debt financing activity , reduction of payments on spectrum debt ; partially offset by an increase in dividends paid to parent company and the purchase of the non-controlling interest in shaser for $ 12.6 million . ﻿ debt ﻿ during the year ended september 30 , 2018 , the company recognized reduced proceeds from the issuance of debt financing of $ 296.0 million primarily due to the issuance of usd term loan debt and hgi funding 2017 loan in the prior year .
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 Suspicious Activity Report : sbh has incurred significant transaction costs associated with the spectrum merger that may impact the comparability of the consolidated results of operations . effective as of the closing date of the spectrum merger , management and control of the organization was assumed by its majority-owned subsidiary , spectrum , and the company continues to operate as the consumer products company that was principally conducted by its majority owned subsidiary . see note 4 – acquisitions to the consolidated financial statements , included elsewhere in this annual report , for more information on the spectrum merger and associated transaction costs . ﻿ additionally , as a result of the spectrum merger , hrg and spectrum will join in the filing of u.s. consolidated tax return starting july 13 , 2018. the form of the spectrum merger allows for the hrg capital and net operating loss carryforwards to be able to be used to offset spectrum 's future income and the u.s. tax gain on the sale of the gbl business to energizer . as a result , sbh released $ 365.3 million of valuation allowance on its net deferred tax assets since it is now more likely than not that the assets will be realized . as of sep tember 30 , 2018 , sbh had $ 247.3 million of valuation allowance recorded on u.s. deferred tax assets , primarily net operating losses and tax credits subject to certain ownership change limitations on their use . acquisitions ﻿ the following acquisition activity has a significant impact on the comparability of the financial results on the consolidated financial statements . ﻿ · petmatrix – on june 1 , 2017 , the company completed the acquisition of petmatrix llc , a manufacturer and marketer of rawhide-free dog chews consisting primarily of the dreambone ® and smartbones® brands . the results of petmatrix 's operations since june 1 , 2017 are included in the company 's consolidated statements of income and reported within the pet reporting segment for the years ended september 30 , 2017 and 2018 . · glofish – on may 12 , 2017 , the company entered into an asset purchase agreement with yorktown technologies lp , for the acquisition of assets consisting of the glofish operations , including transfer of the glofish® brand , related intellectual property and operating agreements . the glofish operations consist of the development and licensing of fluorescent fish for sale through retail and online channels . the results of glofish 's operations since may 12 , 2017 are included in the company 's consolidated statement of income and reported within the pet reporting segment for the years ended september 30 , 2017 and 2018 . ﻿ see note 4 - acquisitions in the notes to the consolidated financial statements , included elsewhere within this annual report , for additional detail regarding acquisition activity . ﻿ restructuring activity ﻿ we continually seek to improve our operational efficiency , match our manufacturing capacity and product costs to market demand and better utilize our manufacturing resources . we have undertaken various initiatives to reduce manufacturing and operating costs . the most significant of these initiatives are : ﻿ · gac business rationalization initiatives , which began during the third quarter of the year ended september 30 , 2016 and is closed as of september 30 , 2018 ; · pet rightsizing initiative , which began during the second quarter of the year ended september 30 , 2017 and is closed as of september 30 , 2018 ; · hhi distribution center consolidation , which began during the second quarter of the year ended september 30 , 2017 and is anticipated to be closed by december 31 , 2018 . ﻿ see note 5 - restructuring and related charges in the notes to the consolidated financial statements , included elsewhere within this annual report , for additional detail regarding restructuring and related activity . ﻿ 34 refinancing activity ﻿ the following recent financing activity has a significant impact on the comparability of financial results on the consolidated financial statements . ﻿ · during the year ended september 30 , 2018 , hrg paid off $ 92.0 million aggregate principal amount of the hgi energy notes , as further detailed in note 11 – debt to the consolidated financial statements , included elsewhere within this annual report ; redeemed all $ 864.4 million outstanding principal amount of its 7.875 % senior secured notes due 2019 at a redemption price equal to 100 % of the principal amount , plus accrued and unpaid interest to the redemption rate ; and paid off $ 50.0 million aggregate principal amount of a hgi funding loan due july 13 , 2018 . · during the year ended september 30 , 2017 , spectrum refinanced a portion of its debt to extend maturities and reduce borrowing costs including entering into various amendments to the credit agreement under its term loans resulting in an increase to the usd term loan , repayment of the euro term loan , increase in the capacity of the revolver facility and changes to the applicable variable interest rates . · during the year ended september 30 , 2016 , spectrum refinanced a portion of its debt to extend maturities and reduce borrowing costs including the issuance of euro denominated notes and repurchase of the 6.375 % notes . ﻿ see note 11 - debt in the notes to the consolidated financial statements , included elsewhere within this annual report , for additional detail regarding debt . ﻿ safety recall ﻿ on june 10 , 2017 , the company initiated a voluntary safety recall of various rawhide chew products for dogs sold by the company 's pet segment due to possible chemical contamination . the company recognized a loss of $ 35.8 million for the year ended september 30 , 2017 associated with the recall , which comprised of inventory write-offs of $ 15.0 million , customer losses of $ 7.1 story_separator_special_tag ﻿ income from discontinued operations , net of tax , for the year ended sep tember 30 , 2018 increased $ 225.2 million , or 65.8 % , due to the decrease in income from gba d iscontinued operations of $ 73.5 million and increase in income from fgl discontinued operations of $ 298.7 million . the decrease in income from gba discontinued operations is primarily attributable to incremental transaction related costs of $ 78.1 million that was recognized for the planned divestitures , decrease in net sales , increased operating expenses for selling and marketing activities and increased interest expense allocated to discontinued operations from increased variable rates . the increase in income from fgl is primarily attributable to the recognition of $ 445.9 million to reclassify accumulated other comprehensive income related to f g l , that was previously included in equity ; offset by lower income from operations with the completion of the sale of the hrg insurance operations on november 30 , 2017 and the recognition of a write-down on net assets of $ 14.2 million on fgl and front street upon completion of sale . ﻿ income from discontinued operations , net of tax , for the year ended september 30 , 2017 increased $ 443.9 million , or 437.3 % , due to the increase in income from gba discontinued o perations of $ 95.5 million , an increase of $ 389.2 million from hrg insurance operations ; partially offset by $ 40.8 million income from discontinued operations related to compass during the year ended september 30 , 2016. the increase from gba discontinued operations is due to cost improvements , decrease in interest expense allocated to discontinued operations from refinancing activity previously discussed , and lower income tax expense driven by an incremental $ 25.5 million expense during the year ended september 30 , 2016 to record a tax contingency reserve for a tax exposure in germany where a local court ruled against our characterization of certain assets as amortizable under german tax law . the increase in discontinued operations from hrg insurance operations was due to a $ 304.4 million write-down of assets held for sale to the fair value less cost to sell , the reversal of a $ 15.2 million estimated alternative minimum tax liability for a 338 tax election which is not expected to result in a taxable gain , and an increase in operating results . ﻿ noncontrolling interest . the net income attributable to noncontrolling interest reflects the share of the net income of our subsidiaries , which are not wholly-owned , attributable to the accounting interest . such amount varies in relation to such subsidiary 's net income or loss for the period and the percentage interest not owned by sbh . effective the close of the spectrum merger , the net income from spectrum is fully recognized by sbh for all periods subsequent to july 13 , 2018 as spectrum became wholly-owned as a result of the transaction . 40 sb / rh ﻿ the following is summarized consolidated results of operations for sb/rh for the years ended september 30 , 2018 , 2017 and 2016 : ﻿ ﻿ replace_table_token_10_th for the year ended september 30 , 2018 , the increase in net sales of $ 136.4 million , or 4.5 % , and decrease in gross profit of $ 22.4 million are attributable to the changes in sbh previously discussed . the increase in operating expenses of $ 134.2 million is primarily attributable to the changes in sbh previously discussed excluding the impact in hrg operating costs and transaction costs from the spectrum merger . an increase in interest expense of $ 6.3 million is primarily attributable to interest costs on variable interest debt and incremental borrowings on $ 520 million of debt with the parent company . for the year ended september 30 , 2017 , the decrease in net sales of $ 19.9 million , or 0.7 % , and decrease in gross profit of $ 61.7 million are attributable to the chang es in sbh previously discussed . the i ncrease in operating expenses of $ 25.1 million is primarily attributable to the change in sbh previously discussed , excluding the impact in hrg corporate operating costs . the d ecrease in interest expense of $ 20.7 million is primarily attributable to lower borrowing costs and incremental premium paid f or debt redemption in the prior year due to the refinancing activities previously discussed . ﻿ income taxes . t he effective tax rate was ( 787.4 % ) for the year ended september 30 , 2018 compared to 24.2 % for the year ended september 30 , 2017 and ( 16 . 5 % ) for the year ended september 30 , 2016. our effective tax rate for the year ended september 30 , 2018 was significantly impacted by the tax reform act and goodwill impairment as further detailed in sbh above . our effective tax rate for the year ended september 30 , 2017 differs from the u.s federal statutory rate of 35 % due to income earned outside the u.s. that is subject to statutory rates lower than 35 % . additionally , the company recognized a $ 33.4 million tax benefit for changes in our assessment over our ability to effectively repatriate tax-free non-u.s. earnings upon which liabilities were previously recorded , and a $ 13.1 million tax benefit for the recognition of additional federal and state tax credits . the company also recorded a $ 14.7 million valuation allowance on additional state net operating losses that more likely than not will expire unused . our effective tax rate applied to the years ended september 30 , 2016 differs from the u.s. federal statutory rate of 35 % primarily due to the release of valuation allowances on u.s. net operating losses deferred tax assets and income earned outside the u.s. that is subject to statutory rates lower

