we financed the purchase price for the buffalo filter acquisition using a combination of the issuance of $ 345.0 million of 2.625 % convertible notes due 2024 issued on january 29 , 2019 ( the convertible notes ” ) and the incurrence of indebtedness under our sixth amended and restated senior secured credit agreement , which closed on february 7 , 2019 . refer to financing cash flows and note 17 to the consolidated financial statements for further details . critical accounting policies preparation of our financial statements requires us to make estimates and assumptions which affect the reported amounts of assets , liabilities , revenues and expenses . note 1 to the consolidated financial statements describes the significant accounting policies used in preparation of the consolidated financial statements . the most significant areas involving management judgments and estimates are described below and are considered by management to be critical to understanding the financial condition and results of operations of conmed corporation . actual results may or may not differ from these estimates . inventory valuation we value inventory at the lower of cost and net realizable value based on historical experience and life of inventory . we write-off excess and obsolete inventory resulting from the inability to sell our products at prices in excess of current carrying costs . we make estimates regarding the future recoverability of the costs of our products and record a provision for excess and obsolete 22 inventories based on historical experience and expected future trends . market changes or new product introductions could impact demand for our products and require inventory write-downs . goodwill and intangible assets we have a history of growth through acquisitions . assets and liabilities of acquired businesses are recorded at their estimated fair values as of the date of acquisition . goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses . factors that contribute to the recognition of goodwill include synergies that are specific to our business and are expected to increase net sales and profits ; acquisition of a talented workforce ; cost savings opportunities ; the strategic benefit of expanding our presence in core and adjacent markets ; and diversifying our product portfolio . customer and distributor relationships , trademarks , tradenames , developed technology , patents and other intangible assets primarily represent allocations of purchase price to identifiable intangible assets of acquired businesses . sales representation , marketing and promotional rights represent intangible assets created under our agreement with musculoskeletal transplant foundation ( “ mtf ” ) . determining the fair value of intangible assets acquired as part of a business combination requires us to make significant estimates . these estimates include the amount and timing of projected future cash flows of each project or technology , the discount rate used to discount those cash flows to present value , the assessment of the asset 's useful life , and the consideration of legal , technical , regulatory , economic , and competitive risks . goodwill and intangible assets deemed to have indefinite lives are not amortized , but are subject to at least annual impairment testing . it is our policy to perform our annual impairment testing in the fourth quarter . the identification and measurement of goodwill impairment involves the estimation of the fair value of our business . estimates of fair value are based on the best information available as of the date of the assessment . we completed our goodwill impairment testing during the fourth quarter of 2018 . we performed our impairment test utilizing the market capitalization approach to determine whether the fair value of a reporting unit is less than its carrying amount . based upon our assessment , the fair value continues to exceed carrying value . intangible assets with a finite life are amortized over the estimated useful life of the asset and are evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization . intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable . the carrying amount of an intangible asset subject to amortization is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset . an impairment loss is recognized by reducing the carrying amount of the intangible asset to its current fair value . for all other indefinite-lived intangible assets , we perform a qualitative impairment test . based upon this assessment , we have determined that our indefinite-lived intangible assets are not impaired . see note 5 to the consolidated financial statements for further discussion of goodwill and other intangible assets . 23 consolidated results of operations the following table presents , as a percentage of net sales , certain categories included in our consolidated statements of comprehensive income for the periods indicated : replace_table_token_6_th 24 net sales the following table presents net sales by product line for the years ended december 31 , 2018 , 2017 and 2016 : replace_table_token_7_th replace_table_token_8_th ( a ) adjusted net sales growth is measured in constant currency and is adjusted for administrative fees that we began recording as a reduction of revenue under accounting standards codification 606 , revenue from contracts with customers ( `` asc 606 `` ) on january 1 , 2018. refer to note 16 to the consolidated financial statements and non-gaap financial measures below for further details . net sales increased 7.9 % to $ 859.6 million in 2018 and 4.3 % in 2017 to $ 796.4 million from $ 763.5 million in 2016 . the increase in 2018 was due to growth in both the orthopedic and general surgery product lines , as described below . story_separator_special_tag if , however , the market price per share of our common stock , as measured under the terms of the warrant transactions , exceeds the strike price of the warrants , there would nevertheless be dilution to the extent that such market price exceeds the strike price of the warrants , unless we elect to settle the warrants in cash . we have a mortgage note outstanding in connection with the largo , florida property and facilities bearing interest at 8.25 % per annum with semiannual payments of principal and interest through june 2019. the principal balance outstanding on the mortgage note aggregated $ 0.8 million at december 31 , 2018 . the mortgage note is collateralized by the largo , florida property and facilities . our board of directors has authorized a $ 200.0 million share repurchase program . through december 31 , 2018 , we have repurchased a total of 6.1 million shares of common stock aggregating $ 162.6 million under this authorization and have $ 37.4 million remaining available for share repurchases . the repurchase program calls for shares to be purchased in the open market or in private transactions from time to time . we may suspend or discontinue the share repurchase program at any time . we did not purchase any shares of common stock under the share repurchase program during 2018 . we have financed the repurchases and may finance additional repurchases through operating cash flow and from available borrowings under our revolving credit facility . management believes that cash flow from operations , including cash and cash equivalents on hand and available borrowing capacity under our amended and restated senior credit agreement , will be adequate to meet our anticipated operating working capital requirements , debt service , funding of capital expenditures and common stock repurchases in the foreseeable future . see “ item 1a . risk factors - risks related to our indebtedness . `` restructuring for the years ending december 31 , 2017 and 2016 , we incurred $ 2.9 million and $ 3.1 million , respectively , in costs associated with operational restructuring . these costs were charged to cost of sales and include severance , inventory and other charges . as part of this plan , we engaged a consulting firm to assist us in streamlining our product offering and improving our operational efficiency . as a result , we identified certain catalog numbers to be discontinued and consolidated into existing product offerings and recorded a $ 1.3 million charge in the year ended december 31 , 2017 to write-off inventory which will no longer be offered for sale . this amount is included in the above total for 2017. during 2016 , the company discontinued our altrus product offering as part of our ongoing restructuring and incurred $ 4.5 million in non-cash charges primarily related to inventory and fixed assets which were included in cost of sales . during 2017 and 2016 , we restructured certain sales , marketing and administrative functions and incurred severance and other related costs in the amount of $ 1.3 million and $ 6.7 million . these costs were charged to selling and administrative expense . during 2016 , we sold our centennial , colorado facility . we received net cash proceeds of $ 5.2 million and recorded a gain of $ 1.9 million in selling and administrative expense . during recent years we had a number of initiatives to consolidate manufacturing facilities and restructure our sales and administrative functions . although much of this is complete , we will continue to review our operations and sales and administrative functions to reduce costs and headcount , as necessary . such cost reductions will result in additional charges , including employee termination costs and other exit costs that will be charged to cost of sales and selling and administrative expense , as applicable . refer to note 13 to the consolidated financial statements for further discussions regarding restructuring . 30 contractual obligations the following table summarizes our contractual obligations for the next five years and thereafter ( amounts in thousands ) as of december 31 , 2018 . purchase obligations represent purchase orders for goods and services placed in the ordinary course of business . replace_table_token_9_th in addition to the above contractual obligations , we are required to make periodic interest payments on our long-term debt obligations ( see additional discussion under item 7a . “ quantitative and qualitative disclosures about market risk—interest rate risk ” and note 6 to the consolidated financial statements ) . the above table also does not include unrecognized tax benefits of approximately $ 3.1 million , the timing and certainty of recognition for which is not known ( see note 7 to the consolidated financial statements ) . stock-based compensation we have reserved shares of common stock for issuance to employees and directors under two shareholder-approved share-based compensation plans ( the `` plans `` ) . the plans provide for grants of stock options , stock appreciation rights ( “ sars ” ) , dividend equivalent rights , restricted stock , restricted stock units ( “ rsus ” ) , performance share units ( “ psus ” ) and other equity-based and equity-related awards . the exercise price on all outstanding stock options and sars is equal to the quoted fair market value of the stock at the date of grant . rsus and psus are valued at the market value of the underlying stock on the date of grant . stock options , sars , rsus and psus are non-transferable other than on death and generally become exercisable over a four to five year period from date of grant . stock options and sars expire ten years from date of grant . sars are only settled in shares of the company 's stock ( see note 8 to the consolidated financial statements ) . total pre-tax stock-based compensation expense recognized in the consolidated statements of comprehensive

liquidity and capital resources our liquidity needs arise primarily from capital investments , working capital requirements and payments on indebtedness under the amended and restated senior credit agreement , described below . we have historically met these liquidity requirements with funds generated from operations and borrowings under our revolving credit facility . in addition , we have historically used term borrowings , including borrowings under the fifth amended and restated senior credit agreement and borrowings under separate loan facilities , in the case of real property purchases , to finance our acquisitions . we also have the ability to raise funds through the sale of stock or we may issue debt through a private placement or public offering . management believes that cash flow from operations , including cash and cash equivalents on hand and available borrowing capacity under our amended and restated senior credit agreement , will be adequate to meet our anticipated operating working capital requirements , debt service , funding of capital expenditures and common stock repurchases in the foreseeable future . we had total cash on hand at december 31 , 2018 of $ 17.5 million , of which approximately $ 16.1 million was held by our foreign subsidiaries outside the united states with unremitted earnings . during 2018 , we redeployed $ 25.4 million of cash from certain non-u.s. subsidiaries primarily for u.s. debt reduction . this cash consisted of earnings that were taxed in 2017 as part of the deemed repatriation toll charge implemented by tax reform . if we were to repatriate the remaining unremitted earnings that have been taxed as part of the deemed repatriation toll charge , we would be required to accrue and pay withholding taxes in certain foreign jurisdictions .


 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 liquidity needs arise primarily from capital investments , working capital requirements and payments on indebtedness under the amended and restated senior credit agreement , described below . we have historically met these liquidity requirements with funds generated from operations and borrowings under our revolving credit facility . in addition , we have historically used term borrowings , including borrowings under the fifth amended and restated senior credit agreement and borrowings under separate loan facilities , in the case of real property purchases , to finance our acquisitions . we also have the ability to raise funds through the sale of stock or we may issue debt through a private placement or public offering . management believes that cash flow from operations , including cash and cash equivalents on hand and available borrowing capacity under our amended and restated senior credit agreement , will be adequate to meet our anticipated operating working capital requirements , debt service , funding of capital expenditures and common stock repurchases in the foreseeable future . we had total cash on hand at december 31 , 2018 of $ 17.5 million , of which approximately $ 16.1 million was held by our foreign subsidiaries outside the united states with unremitted earnings . during 2018 , we redeployed $ 25.4 million of cash from certain non-u.s. subsidiaries primarily for u.s. debt reduction . this cash consisted of earnings that were taxed in 2017 as part of the deemed repatriation toll charge implemented by tax reform . if we were to repatriate the remaining unremitted earnings that have been taxed as part of the deemed repatriation toll charge , we would be required to accrue and pay withholding taxes in certain foreign jurisdictions .
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 Suspicious Activity Report : we financed the purchase price for the buffalo filter acquisition using a combination of the issuance of $ 345.0 million of 2.625 % convertible notes due 2024 issued on january 29 , 2019 ( the convertible notes ” ) and the incurrence of indebtedness under our sixth amended and restated senior secured credit agreement , which closed on february 7 , 2019 . refer to financing cash flows and note 17 to the consolidated financial statements for further details . critical accounting policies preparation of our financial statements requires us to make estimates and assumptions which affect the reported amounts of assets , liabilities , revenues and expenses . note 1 to the consolidated financial statements describes the significant accounting policies used in preparation of the consolidated financial statements . the most significant areas involving management judgments and estimates are described below and are considered by management to be critical to understanding the financial condition and results of operations of conmed corporation . actual results may or may not differ from these estimates . inventory valuation we value inventory at the lower of cost and net realizable value based on historical experience and life of inventory . we write-off excess and obsolete inventory resulting from the inability to sell our products at prices in excess of current carrying costs . we make estimates regarding the future recoverability of the costs of our products and record a provision for excess and obsolete 22 inventories based on historical experience and expected future trends . market changes or new product introductions could impact demand for our products and require inventory write-downs . goodwill and intangible assets we have a history of growth through acquisitions . assets and liabilities of acquired businesses are recorded at their estimated fair values as of the date of acquisition . goodwill represents costs in excess of fair values assigned to the underlying net assets of acquired businesses . factors that contribute to the recognition of goodwill include synergies that are specific to our business and are expected to increase net sales and profits ; acquisition of a talented workforce ; cost savings opportunities ; the strategic benefit of expanding our presence in core and adjacent markets ; and diversifying our product portfolio . customer and distributor relationships , trademarks , tradenames , developed technology , patents and other intangible assets primarily represent allocations of purchase price to identifiable intangible assets of acquired businesses . sales representation , marketing and promotional rights represent intangible assets created under our agreement with musculoskeletal transplant foundation ( “ mtf ” ) . determining the fair value of intangible assets acquired as part of a business combination requires us to make significant estimates . these estimates include the amount and timing of projected future cash flows of each project or technology , the discount rate used to discount those cash flows to present value , the assessment of the asset 's useful life , and the consideration of legal , technical , regulatory , economic , and competitive risks . goodwill and intangible assets deemed to have indefinite lives are not amortized , but are subject to at least annual impairment testing . it is our policy to perform our annual impairment testing in the fourth quarter . the identification and measurement of goodwill impairment involves the estimation of the fair value of our business . estimates of fair value are based on the best information available as of the date of the assessment . we completed our goodwill impairment testing during the fourth quarter of 2018 . we performed our impairment test utilizing the market capitalization approach to determine whether the fair value of a reporting unit is less than its carrying amount . based upon our assessment , the fair value continues to exceed carrying value . intangible assets with a finite life are amortized over the estimated useful life of the asset and are evaluated each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization . intangible assets subject to amortization are reviewed for impairment whenever events or changes in circumstances indicate that its carrying amount may not be recoverable . the carrying amount of an intangible asset subject to amortization is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset . an impairment loss is recognized by reducing the carrying amount of the intangible asset to its current fair value . for all other indefinite-lived intangible assets , we perform a qualitative impairment test . based upon this assessment , we have determined that our indefinite-lived intangible assets are not impaired . see note 5 to the consolidated financial statements for further discussion of goodwill and other intangible assets . 23 consolidated results of operations the following table presents , as a percentage of net sales , certain categories included in our consolidated statements of comprehensive income for the periods indicated : replace_table_token_6_th 24 net sales the following table presents net sales by product line for the years ended december 31 , 2018 , 2017 and 2016 : replace_table_token_7_th replace_table_token_8_th ( a ) adjusted net sales growth is measured in constant currency and is adjusted for administrative fees that we began recording as a reduction of revenue under accounting standards codification 606 , revenue from contracts with customers ( `` asc 606 `` ) on january 1 , 2018. refer to note 16 to the consolidated financial statements and non-gaap financial measures below for further details . net sales increased 7.9 % to $ 859.6 million in 2018 and 4.3 % in 2017 to $ 796.4 million from $ 763.5 million in 2016 . the increase in 2018 was due to growth in both the orthopedic and general surgery product lines , as described below . story_separator_special_tag if , however , the market price per share of our common stock , as measured under the terms of the warrant transactions , exceeds the strike price of the warrants , there would nevertheless be dilution to the extent that such market price exceeds the strike price of the warrants , unless we elect to settle the warrants in cash . we have a mortgage note outstanding in connection with the largo , florida property and facilities bearing interest at 8.25 % per annum with semiannual payments of principal and interest through june 2019. the principal balance outstanding on the mortgage note aggregated $ 0.8 million at december 31 , 2018 . the mortgage note is collateralized by the largo , florida property and facilities . our board of directors has authorized a $ 200.0 million share repurchase program . through december 31 , 2018 , we have repurchased a total of 6.1 million shares of common stock aggregating $ 162.6 million under this authorization and have $ 37.4 million remaining available for share repurchases . the repurchase program calls for shares to be purchased in the open market or in private transactions from time to time . we may suspend or discontinue the share repurchase program at any time . we did not purchase any shares of common stock under the share repurchase program during 2018 . we have financed the repurchases and may finance additional repurchases through operating cash flow and from available borrowings under our revolving credit facility . management believes that cash flow from operations , including cash and cash equivalents on hand and available borrowing capacity under our amended and restated senior credit agreement , will be adequate to meet our anticipated operating working capital requirements , debt service , funding of capital expenditures and common stock repurchases in the foreseeable future . see “ item 1a . risk factors - risks related to our indebtedness . `` restructuring for the years ending december 31 , 2017 and 2016 , we incurred $ 2.9 million and $ 3.1 million , respectively , in costs associated with operational restructuring . these costs were charged to cost of sales and include severance , inventory and other charges . as part of this plan , we engaged a consulting firm to assist us in streamlining our product offering and improving our operational efficiency . as a result , we identified certain catalog numbers to be discontinued and consolidated into existing product offerings and recorded a $ 1.3 million charge in the year ended december 31 , 2017 to write-off inventory which will no longer be offered for sale . this amount is included in the above total for 2017. during 2016 , the company discontinued our altrus product offering as part of our ongoing restructuring and incurred $ 4.5 million in non-cash charges primarily related to inventory and fixed assets which were included in cost of sales . during 2017 and 2016 , we restructured certain sales , marketing and administrative functions and incurred severance and other related costs in the amount of $ 1.3 million and $ 6.7 million . these costs were charged to selling and administrative expense . during 2016 , we sold our centennial , colorado facility . we received net cash proceeds of $ 5.2 million and recorded a gain of $ 1.9 million in selling and administrative expense . during recent years we had a number of initiatives to consolidate manufacturing facilities and restructure our sales and administrative functions . although much of this is complete , we will continue to review our operations and sales and administrative functions to reduce costs and headcount , as necessary . such cost reductions will result in additional charges , including employee termination costs and other exit costs that will be charged to cost of sales and selling and administrative expense , as applicable . refer to note 13 to the consolidated financial statements for further discussions regarding restructuring . 30 contractual obligations the following table summarizes our contractual obligations for the next five years and thereafter ( amounts in thousands ) as of december 31 , 2018 . purchase obligations represent purchase orders for goods and services placed in the ordinary course of business . replace_table_token_9_th in addition to the above contractual obligations , we are required to make periodic interest payments on our long-term debt obligations ( see additional discussion under item 7a . “ quantitative and qualitative disclosures about market risk—interest rate risk ” and note 6 to the consolidated financial statements ) . the above table also does not include unrecognized tax benefits of approximately $ 3.1 million , the timing and certainty of recognition for which is not known ( see note 7 to the consolidated financial statements ) . stock-based compensation we have reserved shares of common stock for issuance to employees and directors under two shareholder-approved share-based compensation plans ( the `` plans `` ) . the plans provide for grants of stock options , stock appreciation rights ( “ sars ” ) , dividend equivalent rights , restricted stock , restricted stock units ( “ rsus ” ) , performance share units ( “ psus ” ) and other equity-based and equity-related awards . the exercise price on all outstanding stock options and sars is equal to the quoted fair market value of the stock at the date of grant . rsus and psus are valued at the market value of the underlying stock on the date of grant . stock options , sars , rsus and psus are non-transferable other than on death and generally become exercisable over a four to five year period from date of grant . stock options and sars expire ten years from date of grant . sars are only settled in shares of the company 's stock ( see note 8 to the consolidated financial statements ) . total pre-tax stock-based compensation expense recognized in the consolidated statements of comprehensive

