gw dc . we produced 5.7 gw dc of series 4 and series 6 modules during 2019 , which represented a 111 % increase from 2018 . the increase in production was primarily driven by the incremental series 6 production capacity added at our manufacturing facilities as described above . we expect to produce approximately 5.7 gw dc of solar modules during 2020 , substantially all of which will be series 6 modules . in september 2019 , we announced our transition from an internal epc service model in the united states to an external model , in which we expect to leverage the capabilities of third-party epc services in providing power plant solutions to our systems segment customers . this transition is not expected to affect any projects currently under construction . the shift to an external epc service model in the united states aligns with our typical model in international markets and is facilitated , in part , by our series 6 module technology and its 50 improved bos compatibility . see note 21 . “ segment and geographical information ” to our consolidated financial statements for more information on our operating segments . following an evaluation of the long-term sustainable cost structure , competitiveness , and risk-adjusted returns of our u.s. project development business , we have determined it is in the best interest of our stockholders to explore options for this business line . this exploration may result in , among other possibilities , a partnership with a third party who possesses complimentary competencies or a sale of all or a portion of our u.s. project development business . this exploration of options for our u.s. project development business is not subject to any definitive timetable and there can be no assurances that this process will result in any transaction . in january 2020 , we entered into a memorandum of understanding ( “ mou ” ) to settle a class action lawsuit filed in 2012 in the united states district court for the district of arizona ( hereafter “ arizona district court ” ) against the company and certain of our current and former officers and directors . pursuant to the mou , we agreed to pay a total of $ 350 million to settle the claims brought on behalf of all persons who purchased or otherwise acquired the company 's shares during a specified period , in exchange for mutual releases and a dismissal with prejudice of the complaint upon court approval of the settlement . the proposed settlement contains no admission of liability , wrongdoing , or responsibility by any of the parties . market overview the solar industry continues to be characterized by intense pricing competition , both at the module and system levels . in particular , module average selling prices in many global markets have declined in recent years and are expected to continue to decline to some degree in the future . in the aggregate , we believe manufacturers of solar cells and modules have significant installed production capacity , relative to global demand , and the ability for additional capacity expansion . we believe the solar industry may from time to time experience periods of structural imbalance between supply and demand ( i.e . , where production capacity exceeds global demand ) , and that such periods will continue to put pressure on pricing . additionally , intense competition at the system level may result in an environment in which pricing falls rapidly , thereby further increasing demand for solar energy solutions but constraining the ability for project developers , and diversified module manufacturers to sustain meaningful and consistent profitability . in light of such market realities , we are focusing on our strategies and points of differentiation , which include our advanced module technology , our manufacturing process , our diversified capabilities , our financial viability , and the sustainability advantage of our modules and systems . global solar markets continue to expand and develop , in part aided by demand elasticity resulting from declining industry average selling prices , both at the module and system levels , which have promoted the widespread adoption of solar energy . as a result of such market opportunities , we are expanding our manufacturing capacity while also developing and operating multiple solar projects around the world as we execute on our advanced-stage utility-scale project pipeline . we also continue to develop our early-to-mid-stage project pipeline and evaluate acquisitions of projects to further expand both our early-to-mid-stage and advanced-stage pipelines . see the tables under “ management 's discussion and analysis of financial condition and results of operations – systems project pipeline ” for additional information about projects within our advanced-stage pipeline . although we expect a meaningful portion of our future consolidated net sales , operating income , and cash flows to be derived from such projects , we expect third-party module sales to have a more significant impact on our operating results as we continue to expand our manufacturing capacity and leverage the benefits of our series 6 module technology . lower industry module and system pricing is expected to continue to contribute to diversification in global electricity generation and further demand for solar energy solutions as such solutions compete economically with traditional forms of energy generation . over time , however , declining average selling prices may adversely affect our results of operations to the extent we have not already entered into contracts for future module or system sales . if competitors reduce pricing to levels below their costs ; bid aggressively low prices for module sale agreements or ppas ; or are able to operate at minimal or negative operating margins for sustained periods of time , our results of operations could be further adversely affected . story_separator_special_tag 56 systems business during 2019 , edp renewables , connectgen , and innergex renewable energy each accounted for more than 10 % of our systems business net sales , and the majority of our systems business net sales were in the united states and australia . substantially all of our systems business net sales during 2019 were denominated in u.s. dollars and australian dollars . we typically recognize revenue for sales of solar power systems using cost based input methods , which result in revenue being recognized as work is performed based on the relationship between actual costs incurred compared to the total estimated costs for a given contract . we may also recognize revenue for the sale of a development project , which excludes epc services , or for the sale of a completed system when we enter into the associated sales contract with the customer . the revenue recognition policies for our systems business are further described in note 2 . “ summary of significant accounting policies ” to our consolidated financial statements . the following table shows net sales by reportable segment for the years ended december 31 , 2019 , 2018 , and 2017 : replace_table_token_5_th net sales from our modules segment increased by $ 958.1 million in 2019 primarily due to a 180 % increase in the volume of watts sold and a 4 % increase in the average selling price per watt . net sales from our systems segment decreased by $ 139.0 million in 2019 primarily as a result of the sale of the mashiko and certain india projects in 2018 and the completion of substantially all construction activities at the california flats , willow springs , and various other projects in florida in late 2018 and early 2019 , partially offset by the sale of the sun streams , sunshine valley , and beryl projects and ongoing construction activities at the phoebe and ga solar 4 projects in 2019 . cost of sales modules business our modules business cost of sales includes the cost of raw materials and components for manufacturing solar modules , such as glass , transparent conductive coatings , cdte and other thin film semiconductors , laminate materials , connector assemblies , edge seal materials , and frames . in addition , our cost of sales includes direct labor for the manufacturing of solar modules and manufacturing overhead , such as engineering , equipment maintenance , quality and production control , and information technology . our cost of sales also includes depreciation of manufacturing plant and equipment , facility-related expenses , environmental health and safety costs , and costs associated with shipping , warranties , and solar module collection and recycling ( excluding accretion ) . systems business for our systems business , project-related costs include development costs ( legal , consulting , transmission upgrade , interconnection , permitting , and other similar costs ) , epc costs ( consisting primarily of solar modules , inverters , electrical and mounting hardware , project management and engineering , and construction labor ) , and site specific costs . the following table shows cost of sales by reportable segment for the years ended december 31 , 2019 , 2018 , and 2017 : replace_table_token_6_th 57 cost of sales increased $ 662.0 million , or 36 % , and decreased 0.4 percentage points as a percent of net sales when comparing 2019 with 2018 . the increase in cost of sales was driven by a $ 44.5 million increase in our systems segment cost of sales primarily due to the mix of lower gross profit projects sold or under construction during the period . the increase in cost of sales was also driven by a $ 617.6 million increase in our modules segment cost of sales primarily as a result of the following : higher costs of $ 817.5 million from an increase in the volume of modules sold ; and a reduction in our module collection and recycling liability of $ 25.4 million in 2018 due to higher by-product credits for glass , lower capital costs , and adjustments to certain valuation assumptions ; partially offset by a reduction to our product warranty liability of $ 80.0 million due to revised module return rates ; lower under-utilization and certain other charges associated with the initial ramp of certain series 6 manufacturing lines , which decreased cost of sales by $ 40.3 million ; and continued reductions in the cost per watt of our solar modules , which decreased cost of sales by $ 107.1 million . gross profit gross profit may be affected by numerous factors , including the selling prices of our modules and systems , our manufacturing costs , project development costs , bos costs , the capacity utilization of our manufacturing facilities , and foreign exchange rates . gross profit may also be affected by the mix of net sales from our modules and systems businesses . the following table shows gross profit for the years ended december 31 , 2019 , 2018 , and 2017 : replace_table_token_7_th gross profit increased 0.4 percentage points to 17.9 % during 2019 from 17.5 % during 2018 primarily as a result of higher gross profit on third-party module sales , improved utilization of our manufacturing facilities , and the reduction to our product warranty liability described above , partially offset by the mix of lower gross profit projects sold or under construction during the period , the settlement of a tax examination with the state of california in 2018 , which affected our estimates of sales and use taxes due for certain projects , and the reduction to our module collection and recycling liability in 2018 described above . selling , general and administrative selling , general and administrative expense consists primarily of salaries and other personnel-related costs , professional fees , insurance costs , and other business development and selling expenses . the following table shows selling , general and

cash flows the following table summarizes key cash flow activity for the years ended december 31 , 2019 , 2018 , and 2017 ( in thousands ) : replace_table_token_19_th operating activities the increase in net cash provided by operating activities during 2019 was primarily driven by higher cash proceeds from sales of systems projects , including the sunshine valley , sun streams , and california flats projects , and advance payments received for sales of solar modules prior to the step down in the u.s. investment tax credit as discussed above . these increases were partially offset by operating expenditures associated with initial ramp of certain series 6 manufacturing lines and expenditures for the construction of certain projects . investing activities the decrease in net cash used in investing activities during 2019 was primarily due to higher net sales of marketable securities and restricted investments , partially offset by proceeds associated with the sale of our interests in 8point3 and its subsidiaries in 2018 . financing activities the decrease in net cash provided by financing activities during 2019 was primarily the result of lower net proceeds from borrowings under project specific debt financings associated with the construction of certain projects in australia , japan , and india . 65 contractual obligations the following table presents the payments due by fiscal year for our outstanding contractual obligations as of december 31 , 2019 ( in thousands ) : replace_table_token_20_th ( 1 ) includes estimated cash interest to be paid over the remaining terms of the underlying debt . interest payments are based on fixed and floating rates as of december 31 , 2019 . ( 2 ) purchase obligations represent agreements to purchase goods or services , including open purchase orders and contracts with fixed volume commitments , that are noncancelable or cancelable with a significant penalty . purchase obligations for our long-term supply agreements for the purchase of substrate glass and cover glass represent specified termination penalties , which are up to $ 430 million in the aggregate under the agreements . our actual purchases under these supply agreements are expected to be approximately $ 2.4 billion of substrate glass and $ 500 million of cover glass .


 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 the following table summarizes key cash flow activity for the years ended december 31 , 2019 , 2018 , and 2017 ( in thousands ) : replace_table_token_19_th operating activities the increase in net cash provided by operating activities during 2019 was primarily driven by higher cash proceeds from sales of systems projects , including the sunshine valley , sun streams , and california flats projects , and advance payments received for sales of solar modules prior to the step down in the u.s. investment tax credit as discussed above . these increases were partially offset by operating expenditures associated with initial ramp of certain series 6 manufacturing lines and expenditures for the construction of certain projects . investing activities the decrease in net cash used in investing activities during 2019 was primarily due to higher net sales of marketable securities and restricted investments , partially offset by proceeds associated with the sale of our interests in 8point3 and its subsidiaries in 2018 . financing activities the decrease in net cash provided by financing activities during 2019 was primarily the result of lower net proceeds from borrowings under project specific debt financings associated with the construction of certain projects in australia , japan , and india . 65 contractual obligations the following table presents the payments due by fiscal year for our outstanding contractual obligations as of december 31 , 2019 ( in thousands ) : replace_table_token_20_th ( 1 ) includes estimated cash interest to be paid over the remaining terms of the underlying debt . interest payments are based on fixed and floating rates as of december 31 , 2019 . ( 2 ) purchase obligations represent agreements to purchase goods or services , including open purchase orders and contracts with fixed volume commitments , that are noncancelable or cancelable with a significant penalty . purchase obligations for our long-term supply agreements for the purchase of substrate glass and cover glass represent specified termination penalties , which are up to $ 430 million in the aggregate under the agreements . our actual purchases under these supply agreements are expected to be approximately $ 2.4 billion of substrate glass and $ 500 million of cover glass .
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 Suspicious Activity Report : gw dc . we produced 5.7 gw dc of series 4 and series 6 modules during 2019 , which represented a 111 % increase from 2018 . the increase in production was primarily driven by the incremental series 6 production capacity added at our manufacturing facilities as described above . we expect to produce approximately 5.7 gw dc of solar modules during 2020 , substantially all of which will be series 6 modules . in september 2019 , we announced our transition from an internal epc service model in the united states to an external model , in which we expect to leverage the capabilities of third-party epc services in providing power plant solutions to our systems segment customers . this transition is not expected to affect any projects currently under construction . the shift to an external epc service model in the united states aligns with our typical model in international markets and is facilitated , in part , by our series 6 module technology and its 50 improved bos compatibility . see note 21 . “ segment and geographical information ” to our consolidated financial statements for more information on our operating segments . following an evaluation of the long-term sustainable cost structure , competitiveness , and risk-adjusted returns of our u.s. project development business , we have determined it is in the best interest of our stockholders to explore options for this business line . this exploration may result in , among other possibilities , a partnership with a third party who possesses complimentary competencies or a sale of all or a portion of our u.s. project development business . this exploration of options for our u.s. project development business is not subject to any definitive timetable and there can be no assurances that this process will result in any transaction . in january 2020 , we entered into a memorandum of understanding ( “ mou ” ) to settle a class action lawsuit filed in 2012 in the united states district court for the district of arizona ( hereafter “ arizona district court ” ) against the company and certain of our current and former officers and directors . pursuant to the mou , we agreed to pay a total of $ 350 million to settle the claims brought on behalf of all persons who purchased or otherwise acquired the company 's shares during a specified period , in exchange for mutual releases and a dismissal with prejudice of the complaint upon court approval of the settlement . the proposed settlement contains no admission of liability , wrongdoing , or responsibility by any of the parties . market overview the solar industry continues to be characterized by intense pricing competition , both at the module and system levels . in particular , module average selling prices in many global markets have declined in recent years and are expected to continue to decline to some degree in the future . in the aggregate , we believe manufacturers of solar cells and modules have significant installed production capacity , relative to global demand , and the ability for additional capacity expansion . we believe the solar industry may from time to time experience periods of structural imbalance between supply and demand ( i.e . , where production capacity exceeds global demand ) , and that such periods will continue to put pressure on pricing . additionally , intense competition at the system level may result in an environment in which pricing falls rapidly , thereby further increasing demand for solar energy solutions but constraining the ability for project developers , and diversified module manufacturers to sustain meaningful and consistent profitability . in light of such market realities , we are focusing on our strategies and points of differentiation , which include our advanced module technology , our manufacturing process , our diversified capabilities , our financial viability , and the sustainability advantage of our modules and systems . global solar markets continue to expand and develop , in part aided by demand elasticity resulting from declining industry average selling prices , both at the module and system levels , which have promoted the widespread adoption of solar energy . as a result of such market opportunities , we are expanding our manufacturing capacity while also developing and operating multiple solar projects around the world as we execute on our advanced-stage utility-scale project pipeline . we also continue to develop our early-to-mid-stage project pipeline and evaluate acquisitions of projects to further expand both our early-to-mid-stage and advanced-stage pipelines . see the tables under “ management 's discussion and analysis of financial condition and results of operations – systems project pipeline ” for additional information about projects within our advanced-stage pipeline . although we expect a meaningful portion of our future consolidated net sales , operating income , and cash flows to be derived from such projects , we expect third-party module sales to have a more significant impact on our operating results as we continue to expand our manufacturing capacity and leverage the benefits of our series 6 module technology . lower industry module and system pricing is expected to continue to contribute to diversification in global electricity generation and further demand for solar energy solutions as such solutions compete economically with traditional forms of energy generation . over time , however , declining average selling prices may adversely affect our results of operations to the extent we have not already entered into contracts for future module or system sales . if competitors reduce pricing to levels below their costs ; bid aggressively low prices for module sale agreements or ppas ; or are able to operate at minimal or negative operating margins for sustained periods of time , our results of operations could be further adversely affected . story_separator_special_tag 56 systems business during 2019 , edp renewables , connectgen , and innergex renewable energy each accounted for more than 10 % of our systems business net sales , and the majority of our systems business net sales were in the united states and australia . substantially all of our systems business net sales during 2019 were denominated in u.s. dollars and australian dollars . we typically recognize revenue for sales of solar power systems using cost based input methods , which result in revenue being recognized as work is performed based on the relationship between actual costs incurred compared to the total estimated costs for a given contract . we may also recognize revenue for the sale of a development project , which excludes epc services , or for the sale of a completed system when we enter into the associated sales contract with the customer . the revenue recognition policies for our systems business are further described in note 2 . “ summary of significant accounting policies ” to our consolidated financial statements . the following table shows net sales by reportable segment for the years ended december 31 , 2019 , 2018 , and 2017 : replace_table_token_5_th net sales from our modules segment increased by $ 958.1 million in 2019 primarily due to a 180 % increase in the volume of watts sold and a 4 % increase in the average selling price per watt . net sales from our systems segment decreased by $ 139.0 million in 2019 primarily as a result of the sale of the mashiko and certain india projects in 2018 and the completion of substantially all construction activities at the california flats , willow springs , and various other projects in florida in late 2018 and early 2019 , partially offset by the sale of the sun streams , sunshine valley , and beryl projects and ongoing construction activities at the phoebe and ga solar 4 projects in 2019 . cost of sales modules business our modules business cost of sales includes the cost of raw materials and components for manufacturing solar modules , such as glass , transparent conductive coatings , cdte and other thin film semiconductors , laminate materials , connector assemblies , edge seal materials , and frames . in addition , our cost of sales includes direct labor for the manufacturing of solar modules and manufacturing overhead , such as engineering , equipment maintenance , quality and production control , and information technology . our cost of sales also includes depreciation of manufacturing plant and equipment , facility-related expenses , environmental health and safety costs , and costs associated with shipping , warranties , and solar module collection and recycling ( excluding accretion ) . systems business for our systems business , project-related costs include development costs ( legal , consulting , transmission upgrade , interconnection , permitting , and other similar costs ) , epc costs ( consisting primarily of solar modules , inverters , electrical and mounting hardware , project management and engineering , and construction labor ) , and site specific costs . the following table shows cost of sales by reportable segment for the years ended december 31 , 2019 , 2018 , and 2017 : replace_table_token_6_th 57 cost of sales increased $ 662.0 million , or 36 % , and decreased 0.4 percentage points as a percent of net sales when comparing 2019 with 2018 . the increase in cost of sales was driven by a $ 44.5 million increase in our systems segment cost of sales primarily due to the mix of lower gross profit projects sold or under construction during the period . the increase in cost of sales was also driven by a $ 617.6 million increase in our modules segment cost of sales primarily as a result of the following : higher costs of $ 817.5 million from an increase in the volume of modules sold ; and a reduction in our module collection and recycling liability of $ 25.4 million in 2018 due to higher by-product credits for glass , lower capital costs , and adjustments to certain valuation assumptions ; partially offset by a reduction to our product warranty liability of $ 80.0 million due to revised module return rates ; lower under-utilization and certain other charges associated with the initial ramp of certain series 6 manufacturing lines , which decreased cost of sales by $ 40.3 million ; and continued reductions in the cost per watt of our solar modules , which decreased cost of sales by $ 107.1 million . gross profit gross profit may be affected by numerous factors , including the selling prices of our modules and systems , our manufacturing costs , project development costs , bos costs , the capacity utilization of our manufacturing facilities , and foreign exchange rates . gross profit may also be affected by the mix of net sales from our modules and systems businesses . the following table shows gross profit for the years ended december 31 , 2019 , 2018 , and 2017 : replace_table_token_7_th gross profit increased 0.4 percentage points to 17.9 % during 2019 from 17.5 % during 2018 primarily as a result of higher gross profit on third-party module sales , improved utilization of our manufacturing facilities , and the reduction to our product warranty liability described above , partially offset by the mix of lower gross profit projects sold or under construction during the period , the settlement of a tax examination with the state of california in 2018 , which affected our estimates of sales and use taxes due for certain projects , and the reduction to our module collection and recycling liability in 2018 described above . selling , general and administrative selling , general and administrative expense consists primarily of salaries and other personnel-related costs , professional fees , insurance costs , and other business development and selling expenses . the following table shows selling , general and

