the preparation of these consolidated financial statements requires our management to make assumptions and estimates about future events and apply judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . these estimates are based on management 's historical industry experience and on various other assumptions that are believed to be reasonable under the circumstances . on a regular basis , we evaluate these accounting policies , assumptions , estimates and judgments to ensure that our financial statements are presented fairly and in accordance with gaap . however , because future events and their effects can not be determined with certainty , actual results may differ from our estimates , and such differences could be material . a full discussion of our significant accounting policies is contained in note 2 to our consolidated financial statements , which is included in item 8 – “ financial statements and supplementary data ” of this report . we believe that the following accounting estimates are the most critical to aid in fully understanding and evaluating our financial results . these estimates require our most difficult , subjective or complex judgments because they relate to matters that are inherently uncertain . we have reviewed these critical accounting policies and estimates and related disclosures with our audit committee . long-lived assets we review long-lived assets , such as property and equipment , and intangible assets subject to amortization , for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable . these events or changes in circumstances include , but are not limited to , significant underperformance relative to historical or projected future operating results , significant changes in the manner of use of the acquired assets or the strategy for the overall business , and significant negative industry or economic trends . recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the estimated undiscounted cash flows over the estimated remaining useful life of the primary asset included in the asset group . if the asset group is not recoverable , the impairment loss is calculated as the excess of the carrying value over the fair value . we define our asset group as an operating club or restaurant location , which is also our reporting unit or the lowest level for which cash flows can be identified . key estimates in the undiscounted cash flow model include management 's estimate of the projected revenues and operating margins . if fair value is used to determine an impairment loss , an additional key assumption is the selection of a weighted-average cost of capital to discount cash flows . assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and are no longer depreciated . during the fourth quarter of 2018 , we impaired one club and one bombshells by a total of $ 1.6 million ; during the fourth quarter of fiscal 2017 , we impaired one club by $ 385,000 ; and during the fourth quarter of fiscal 2016 , we impaired one property held for sale by $ 1.4 million . goodwill and other intangible assets goodwill and other intangible assets that have indefinite useful lives are tested annually for impairment during our fourth fiscal quarter , and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired . 23 our impairment calculations require management to make assumptions and to apply judgment in order to estimate fair values . if our actual results are not consistent with our estimates and assumptions , we may be exposed to impairments that could be material . we do not believe that there is a reasonable likelihood that there will be a change in the estimates or assumptions we used that could cause a material change in our calculated impairment charges . for our goodwill impairment review , we have the option to first perform a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value . this assessment is based on several factors , including industry and market conditions , overall financial performance , including an assessment of cash flows in comparison to actual and projected results of prior periods . if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value based on our qualitative analysis , or if we elect to skip this step , we perform a step 1 quantitative analysis to determine the fair value of the reporting unit . the fair value is determined using market-related valuation models , including earnings multiples , discounted cash flows , and comparable asset market values . key estimates in the undiscounted cash flow model include management 's estimate of the projected revenues and operating margins , along with the selection of a weighted-average cost of capital to discount cash flows . we recognize goodwill impairment in the amount that the carrying value of the reporting unit exceeds the fair value of the reporting unit , not to exceed the amount of goodwill allocated to the reporting unit , based on the results of our step 1 analysis . for the year ended september 30 , 2017 , we identified four reporting units that were impaired and recognized a goodwill impairment loss totaling $ 4.7 million . no goodwill impairment was recorded in fiscal 2018 and 2016. for indefinite-lived intangibles , specifically sob licenses , we determine fair value by estimating the multiperiod excess earnings of the asset with key assumptions being similar to those used in the goodwill impairment valuation model . story_separator_special_tag replace_table_token_18_th income taxes income taxes were a benefit of $ 3.1 million in 2018 , an expense of $ 6.4 million in 2017 , and an expense of $ 2.4 million in 2016. our effective income tax rate was a 16.7 % benefit in 2018 , and 43.4 % and 18.5 % expense in 2017 and 2016 , respectively . the components of our annual effective income tax rate are the following : replace_table_token_19_th 32 on december 22 , 2017 , during our first quarter 2018 , the tax cuts and jobs act ( the “ tax act ” ) was enacted into law , which provides for significant changes to the u.s. internal revenue code of 1986 , as amended , such as a reduction in the statutory federal corporate tax rate from a maximum of 35 % to a flat 21 % rate effective from january 1 , 2018 forward and changes and limitations to certain tax deductions . the company has a fiscal year end of september 30 , so the change to the statutory corporate tax rate results in a blended federal statutory rate of 24.5 % for its fiscal year 2018. the increase in state tax effective rate from 2017 to 2018 was mainly caused by the impact of return-to-provision true-up , which has an expense impact in 2018 while having a benefit in 2017. during fiscal year 2017 , due to higher income before tax , our income tax rate has increased to 37 % , of which has impacted the fourth quarter with the change in rate from 35 % in the first nine months of the year and in prior years . a full year impact in the change in rate of our deferred tax liability has also been recognized in the fourth quarter . the change in deferred tax liability rate for 2017 is due to the 1 % increase in our effective tax rate from the increase in the federal rate and also an increase in the states rate . this amount results from increasing by 2 % the rate applied to our entire deferred tax liabilities at the beginning of the year . the reserve for uncertain tax positions results from an audit of the returns of one of the states in which we operate . as a result of the items discussed above which affected the fiscal year , the fourth quarter effective tax rate rose to 99.6 % expense on a pre-tax loss . during fiscal year 2016 , we recognized a $ 2.0 million tax benefit representing the net amount to be realized from fiscal 2016 and from amending certain prior year federal tax returns to take available fica tip tax credits , which were not taken in prior years . 33 non-gaap financial measures in addition to our financial information presented in accordance with gaap , management uses certain non-gaap financial measures , within the meaning of the sec regulation g , to clarify and enhance understanding of past performance and prospects for the future . generally , a non-gaap financial measure is a numerical measure of a company 's operating performance , financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with gaap . we monitor non-gaap financial measures because it describes the operating performance of the company and helps management and investors gauge our ability to generate cash flow , excluding ( or including ) some items that management believes are not representative of the ongoing business operations of the company , but are included in ( or excluded from ) the most directly comparable measures calculated and presented in accordance with gaap . relative to each of the non-gaap financial measures , we further set forth our rationale as follows : non-gaap operating income and non-gaap operating margin . we calculate non-gaap operating income and non-gaap operating margin by excluding the following items from income from operations and operating margin : amortization of intangibles , gain on settlement of patron tax case , gains or losses on sale of assets , impairment of assets , stock-based compensation , settlement of lawsuits , and gain on insurance . we believe that excluding these items assists investors in evaluating period-over-period changes in our operating income and operating margin without the impact of items that are not a result of our day-to-day business and operations . non-gaap net income and non-gaap net income per diluted share . we calculate non-gaap net income and non-gaap net income per diluted share by excluding or including certain items to net income attributable to rcihh common shareholders and diluted earnings per share . excluded items are : amortization of intangibles , gain on settlement of patron tax case , income tax expense ( benefit ) , impairment charges , gains or losses on sale of assets , stock-based compensation , settlement of lawsuits , costs and charges related to debt refinancing , and gain on insurance . included item is the non-gaap provision for current and deferred income taxes , calculated as the tax effect at 24.5 % , 37 % , and 35 % in 2018 , 2017 , and 2016 , respectively , effective tax rate of the pre-tax non-gaap income before taxes . we believe that excluding and including such items help management and investors better understand our operating activities . adjusted ebitda . we calculate adjusted ebitda by excluding the following items from net income attributable to rcihh common shareholders : depreciation expense , amortization of intangibles , impairment of assets , income tax expense ( benefit ) , interest expense , interest income , gains or losses on sale of assets , settlement of lawsuits , gain on settlement of patron tax case , and gain on insurance . we believe that adjusting for such items helps management and investors better understand our operating activities .

cash flows from financing activities following are our summarized cash flows from financing activities ( in thousands ) : replace_table_token_26_th we purchased shares of our common stock representing 0 shares , 89,685 shares , and 747,081 shares in 2018 , 2017 , and 2016 , respectively . during the second quarter of 2016 , we started paying quarterly dividends in the amount of $ 0.03 per share . see note 7 to our consolidated financial statements for a detailed discussion of our debt obligations and note 19 related to the refinancing of several of our real estate notes payable . non-gaap cash flow measure management also uses certain non-gaap cash flow measures such as free cash flows . we define free cash flow as net cash provided by operating activities less maintenance capital expenditures . replace_table_token_27_th we do not include total capital expenditures as a reduction from net cash flow from operating activities to arrive at free cash flow . this is because , based on our capital allocation strategy , acquisitions and development of our own clubs and restaurants are our primary uses of free cash flow . debt financing see notes 7 and 19 to our consolidated financial statements for detail regarding our long-term debt activity , including those subsequent to the fiscal year ended september 30 , 2018 . 39 contractual obligations and commitments we have long-term contractual obligations primarily in the form of debt obligations and operating leases . the following table ( in thousands ) summarizes our contractual obligations and their aggregate maturities as well as future minimum rent payments . future interest payments related to debt were estimated using the interest rate in effect at september 30 , 2018. replace_table_token_28_th ( a ) we have $ 165,000 of uncertain tax positions recorded in accrued liabilities as of september 30 , 2018. it is expected that these assessments will be settled within the next twelve months . see note 8 to our consolidated financial statements .


 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 following are our summarized cash flows from financing activities ( in thousands ) : replace_table_token_26_th we purchased shares of our common stock representing 0 shares , 89,685 shares , and 747,081 shares in 2018 , 2017 , and 2016 , respectively . during the second quarter of 2016 , we started paying quarterly dividends in the amount of $ 0.03 per share . see note 7 to our consolidated financial statements for a detailed discussion of our debt obligations and note 19 related to the refinancing of several of our real estate notes payable . non-gaap cash flow measure management also uses certain non-gaap cash flow measures such as free cash flows . we define free cash flow as net cash provided by operating activities less maintenance capital expenditures . replace_table_token_27_th we do not include total capital expenditures as a reduction from net cash flow from operating activities to arrive at free cash flow . this is because , based on our capital allocation strategy , acquisitions and development of our own clubs and restaurants are our primary uses of free cash flow . debt financing see notes 7 and 19 to our consolidated financial statements for detail regarding our long-term debt activity , including those subsequent to the fiscal year ended september 30 , 2018 . 39 contractual obligations and commitments we have long-term contractual obligations primarily in the form of debt obligations and operating leases . the following table ( in thousands ) summarizes our contractual obligations and their aggregate maturities as well as future minimum rent payments . future interest payments related to debt were estimated using the interest rate in effect at september 30 , 2018. replace_table_token_28_th ( a ) we have $ 165,000 of uncertain tax positions recorded in accrued liabilities as of september 30 , 2018. it is expected that these assessments will be settled within the next twelve months . see note 8 to our consolidated financial statements .
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 Suspicious Activity Report : the preparation of these consolidated financial statements requires our management to make assumptions and estimates about future events and apply judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . these estimates are based on management 's historical industry experience and on various other assumptions that are believed to be reasonable under the circumstances . on a regular basis , we evaluate these accounting policies , assumptions , estimates and judgments to ensure that our financial statements are presented fairly and in accordance with gaap . however , because future events and their effects can not be determined with certainty , actual results may differ from our estimates , and such differences could be material . a full discussion of our significant accounting policies is contained in note 2 to our consolidated financial statements , which is included in item 8 – “ financial statements and supplementary data ” of this report . we believe that the following accounting estimates are the most critical to aid in fully understanding and evaluating our financial results . these estimates require our most difficult , subjective or complex judgments because they relate to matters that are inherently uncertain . we have reviewed these critical accounting policies and estimates and related disclosures with our audit committee . long-lived assets we review long-lived assets , such as property and equipment , and intangible assets subject to amortization , for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable . these events or changes in circumstances include , but are not limited to , significant underperformance relative to historical or projected future operating results , significant changes in the manner of use of the acquired assets or the strategy for the overall business , and significant negative industry or economic trends . recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the estimated undiscounted cash flows over the estimated remaining useful life of the primary asset included in the asset group . if the asset group is not recoverable , the impairment loss is calculated as the excess of the carrying value over the fair value . we define our asset group as an operating club or restaurant location , which is also our reporting unit or the lowest level for which cash flows can be identified . key estimates in the undiscounted cash flow model include management 's estimate of the projected revenues and operating margins . if fair value is used to determine an impairment loss , an additional key assumption is the selection of a weighted-average cost of capital to discount cash flows . assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and are no longer depreciated . during the fourth quarter of 2018 , we impaired one club and one bombshells by a total of $ 1.6 million ; during the fourth quarter of fiscal 2017 , we impaired one club by $ 385,000 ; and during the fourth quarter of fiscal 2016 , we impaired one property held for sale by $ 1.4 million . goodwill and other intangible assets goodwill and other intangible assets that have indefinite useful lives are tested annually for impairment during our fourth fiscal quarter , and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired . 23 our impairment calculations require management to make assumptions and to apply judgment in order to estimate fair values . if our actual results are not consistent with our estimates and assumptions , we may be exposed to impairments that could be material . we do not believe that there is a reasonable likelihood that there will be a change in the estimates or assumptions we used that could cause a material change in our calculated impairment charges . for our goodwill impairment review , we have the option to first perform a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value . this assessment is based on several factors , including industry and market conditions , overall financial performance , including an assessment of cash flows in comparison to actual and projected results of prior periods . if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value based on our qualitative analysis , or if we elect to skip this step , we perform a step 1 quantitative analysis to determine the fair value of the reporting unit . the fair value is determined using market-related valuation models , including earnings multiples , discounted cash flows , and comparable asset market values . key estimates in the undiscounted cash flow model include management 's estimate of the projected revenues and operating margins , along with the selection of a weighted-average cost of capital to discount cash flows . we recognize goodwill impairment in the amount that the carrying value of the reporting unit exceeds the fair value of the reporting unit , not to exceed the amount of goodwill allocated to the reporting unit , based on the results of our step 1 analysis . for the year ended september 30 , 2017 , we identified four reporting units that were impaired and recognized a goodwill impairment loss totaling $ 4.7 million . no goodwill impairment was recorded in fiscal 2018 and 2016. for indefinite-lived intangibles , specifically sob licenses , we determine fair value by estimating the multiperiod excess earnings of the asset with key assumptions being similar to those used in the goodwill impairment valuation model . story_separator_special_tag replace_table_token_18_th income taxes income taxes were a benefit of $ 3.1 million in 2018 , an expense of $ 6.4 million in 2017 , and an expense of $ 2.4 million in 2016. our effective income tax rate was a 16.7 % benefit in 2018 , and 43.4 % and 18.5 % expense in 2017 and 2016 , respectively . the components of our annual effective income tax rate are the following : replace_table_token_19_th 32 on december 22 , 2017 , during our first quarter 2018 , the tax cuts and jobs act ( the “ tax act ” ) was enacted into law , which provides for significant changes to the u.s. internal revenue code of 1986 , as amended , such as a reduction in the statutory federal corporate tax rate from a maximum of 35 % to a flat 21 % rate effective from january 1 , 2018 forward and changes and limitations to certain tax deductions . the company has a fiscal year end of september 30 , so the change to the statutory corporate tax rate results in a blended federal statutory rate of 24.5 % for its fiscal year 2018. the increase in state tax effective rate from 2017 to 2018 was mainly caused by the impact of return-to-provision true-up , which has an expense impact in 2018 while having a benefit in 2017. during fiscal year 2017 , due to higher income before tax , our income tax rate has increased to 37 % , of which has impacted the fourth quarter with the change in rate from 35 % in the first nine months of the year and in prior years . a full year impact in the change in rate of our deferred tax liability has also been recognized in the fourth quarter . the change in deferred tax liability rate for 2017 is due to the 1 % increase in our effective tax rate from the increase in the federal rate and also an increase in the states rate . this amount results from increasing by 2 % the rate applied to our entire deferred tax liabilities at the beginning of the year . the reserve for uncertain tax positions results from an audit of the returns of one of the states in which we operate . as a result of the items discussed above which affected the fiscal year , the fourth quarter effective tax rate rose to 99.6 % expense on a pre-tax loss . during fiscal year 2016 , we recognized a $ 2.0 million tax benefit representing the net amount to be realized from fiscal 2016 and from amending certain prior year federal tax returns to take available fica tip tax credits , which were not taken in prior years . 33 non-gaap financial measures in addition to our financial information presented in accordance with gaap , management uses certain non-gaap financial measures , within the meaning of the sec regulation g , to clarify and enhance understanding of past performance and prospects for the future . generally , a non-gaap financial measure is a numerical measure of a company 's operating performance , financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with gaap . we monitor non-gaap financial measures because it describes the operating performance of the company and helps management and investors gauge our ability to generate cash flow , excluding ( or including ) some items that management believes are not representative of the ongoing business operations of the company , but are included in ( or excluded from ) the most directly comparable measures calculated and presented in accordance with gaap . relative to each of the non-gaap financial measures , we further set forth our rationale as follows : non-gaap operating income and non-gaap operating margin . we calculate non-gaap operating income and non-gaap operating margin by excluding the following items from income from operations and operating margin : amortization of intangibles , gain on settlement of patron tax case , gains or losses on sale of assets , impairment of assets , stock-based compensation , settlement of lawsuits , and gain on insurance . we believe that excluding these items assists investors in evaluating period-over-period changes in our operating income and operating margin without the impact of items that are not a result of our day-to-day business and operations . non-gaap net income and non-gaap net income per diluted share . we calculate non-gaap net income and non-gaap net income per diluted share by excluding or including certain items to net income attributable to rcihh common shareholders and diluted earnings per share . excluded items are : amortization of intangibles , gain on settlement of patron tax case , income tax expense ( benefit ) , impairment charges , gains or losses on sale of assets , stock-based compensation , settlement of lawsuits , costs and charges related to debt refinancing , and gain on insurance . included item is the non-gaap provision for current and deferred income taxes , calculated as the tax effect at 24.5 % , 37 % , and 35 % in 2018 , 2017 , and 2016 , respectively , effective tax rate of the pre-tax non-gaap income before taxes . we believe that excluding and including such items help management and investors better understand our operating activities . adjusted ebitda . we calculate adjusted ebitda by excluding the following items from net income attributable to rcihh common shareholders : depreciation expense , amortization of intangibles , impairment of assets , income tax expense ( benefit ) , interest expense , interest income , gains or losses on sale of assets , settlement of lawsuits , gain on settlement of patron tax case , and gain on insurance . we believe that adjusting for such items helps management and investors better understand our operating activities .

