long-term financing , both within the united states and mexico and globally ; market and regulatory responses to climate change ; 24 changes in labor costs and labor difficulties , including strikes and work stoppages affecting either operations or customers ' abilities to deliver goods for shipment ; kcs 's reliance on certain key suppliers of core rail equipment ; availability of qualified personnel ; and acts of terrorism , war or other acts of violence or crime or risk of such activities . forward-looking statements reflect the information only as of the date on which they are made . the company does not undertake any obligation to update any forward-looking statements to reflect future events , developments , or other information . if kcs does update one or more forward-looking statements , no inference should be drawn that additional updates will be made regarding that statement or any other forward-looking statements . corporate overview kansas city southern , a delaware corporation , is a transportation holding company that has railroad investments in the u.s. , mexico and panama . in the u.s. , the company serves the central and south central u.s. its international holdings serve northeastern and central mexico and the port cities of lazaro cardenas , tampico and veracruz , and a fifty percent interest in panama canal railway company provides ocean-to-ocean freight and passenger service along the panama canal . kcs 's north american rail holdings and strategic alliances are primary components of a nafta railway system , linking the commercial and industrial centers of the u.s. , canada and mexico . its principal subsidiaries and affiliates include the following : the kansas city southern railway company ( “ kcsr ” ) , a wholly-owned subsidiary ; kcsm , a wholly-owned subsidiary ; mexrail , inc. ( “ mexrail ” ) , a wholly-owned consolidated subsidiary ; which , in turn , wholly owns the texas mexican railway company ( “ tex-mex ” ) ; kcsm servicios , s.a. de c.v. ( “ kcsm servicios ” ) , a wholly-owned subsidiary ; meridian speedway , llc ( “ msllc ” ) , a seventy percent-owned consolidated affiliate ; panama canal railway company ( “ pcrc ” ) , a fifty percent-owned unconsolidated affiliate ; tfcm , s. de r.l . de c.v. ( “ tcm ” ) , a forty-five percent-owned unconsolidated affiliate ; ferrocarril y terminal del valle de méxico , s.a. de c.v. ( “ ftvm ” ) , a twenty-five percent-owned unconsolidated affiliate ; and ptc-220 , llc ( “ ptc-220 ” ) , a fourteen percent-owned unconsolidated affiliate . executive summary 2017 financial overview revenues in 2017 increased 11 % from 2016 , due to 6 % and 5 % increases in revenue per carload/unit and carload/unit volumes , respectively . revenue per carload/unit increased due to mix , increased average length of haul , positive pricing impacts and higher fuel surcharge . energy revenue increased $ 81.1 million , primarily due to an increase in utility coal volumes due to higher natural gas prices and lower coal inventory levels . in addition , frac sand volumes increased due to strong demand as a result of higher crude oil prices . operating expenses increased 10 % compared to 2016 , primarily due to higher fuel prices and consumption , and compensation and benefits . expense fluctuations resulting from higher fuel prices largely offset the revenue fluctuations driven by these same macroeconomic factors . operating expenses as a percentage of revenues decreased to 64.3 % in 2017 from 64.9 % in 2016 . in 2017 , the company invested $ 559.5 million in capital expenditures . in addition , the company purchased $ 42.6 million of equipment under existing operating leases or replacement equipment as certain operating leases expired , which was primarily funded with internally generated cash flows and short-term borrowings . the company reported 2017 earnings of $ 9.16 per diluted share on consolidated net income attributable to kansas city southern and subsidiaries of $ 962.0 million for the year ended december 31 , 2017 , compared to annual earnings of $ 4.43 per 25 diluted share on consolidated net income attributable to kansas city southern and subsidiaries of $ 478.1 million for 2016 , due to increased net income , largely resulting from the recognition of a $ 413.0 million net tax benefit as a result of the tax cuts and jobs act ( the “ tax reform act ” ) , and the accelerated share repurchase program that was implemented during the third quarter of 2017 , which reduced the weighted-average shares outstanding . further information on the tax impacts of the tax reform act is included in the company 's consolidated financial statements presented in note 12 to the consolidated financial statements in item 8. results of operations year ended december 31 , 2017 , compared with the year ended december 31 , 2016 the following summarizes kcs 's consolidated income statement components ( in millions ) : replace_table_token_5_th revenues the following summarizes revenues ( in millions ) , carload/unit statistics ( in thousands ) and revenue per carload/unit : replace_table_token_6_th 26 revenues include revenue for transportation services and fuel surcharges . notwithstanding the impacts of hurricane harvey , revenues and carload/unit volumes increased 11 % and 5 % , respectively , for the year ended december 31 , 2017 , compared to the prior year . revenue per carload/unit increased by 6 % due to mix , increased average length of haul , positive pricing impacts , and higher fuel surcharge . energy revenues increased $ 81.1 million , primarily due to an increase in utility coal volumes due to higher natural gas prices and lower coal inventory levels . in addition , frac sand volumes increased due to strong demand as a result of higher crude oil prices . story_separator_special_tag revenues decreased $ 23.9 million for the year ended december 31 , 2016 , compared to 2015 , due to a 4 % decrease in carload/unit volumes and a 3 % decrease in revenue per carload/unit . volumes decreased due to service disruptions related to the flooding in the southeastern united states earlier in the year and protests in mexico during july of 2016 , increased truck conversion , and high retail inventory levels . revenue per carload/unit decreased as a result of pricing impacts and shorter average length of haul . automotive . revenues decreased $ 28.8 million for the year ended december 31 , 2016 , compared to 2015 , due to an 18 % decrease in revenue per carload/unit , partially offset by a 5 % increase in carload/unit volumes . revenue per carload/unit decreased due to the weakening of the mexican peso against the u.s. dollar and lower fuel surcharge . volumes increased due to 2015 service-related issues and new customers in 2016 , partially offset by customers ' temporary plant shutdowns in the first half of 2016 . 33 operating expenses operating expenses , as shown below ( in millions ) , decreased $ 99.3 million for the year ended december 31 , 2016 , compared to 2015 , primarily due to the mexican fuel excise tax credit , the weakening of the mexican peso against the u.s. dollar , and lower fuel prices . the weakening of the mexican peso against the u.s. dollar resulted in an expense reduction of approximately $ 63.0 million or 4 % for expense transactions denominated in mexican pesos . the average exchange rate of mexican pesos per u.s. dollar was ps.18.7 for 2016 compared to ps.15.8 for 2015. replace_table_token_10_th compensation and benefits . compensation and benefits increased $ 20.2 million for the year ended december 31 , 2016 , compared to 2015 , due to higher incentive compensation of approximately $ 34.0 million and annual wage increases of approximately $ 14.0 million . incentive compensation increased due to higher expected achievement of short and long-term incentive performance targets in 2016 , as compared to 2015. these increases were partially offset by the weakening of the mexican peso of approximately $ 19.0 million compared to 2015 , and lower u.s. labor costs of approximately $ 15.0 million due to reduced volumes and increased productivity . purchased services . purchased services expense decreased $ 14.5 million for the year ended december 31 , 2016 , compared to 2015 , due to car repair in mexico being performed in-house starting in october 2016 and the weakening of the mexican peso . fuel . fuel expense decreased $ 53.1 million for the year ended december 31 , 2016 , compared to 2015 , due to the weakening of the mexican peso of approximately $ 28.0 million and lower diesel fuel prices of approximately $ 18.0 million and $ 4.0 million in the u.s. and mexico , respectively . the average price per gallon , inclusive of the impact from the weakening of the mexican peso , was $ 1.95 in 2016 , compared to $ 2.32 in 2015. in addition , fuel expense decreased due to improved fuel efficiency and lower fuel consumption . mexican fuel excise tax credit . fuel purchases made in mexico are subject to an excise tax that is included in the price of fuel . in 2016 , the company determined it was eligible for and could utilize an available credit for the excise tax included in the price of fuel that is purchased and consumed in locomotives and certain work equipment in mexico and recognized a $ 62.8 million benefit . the mexican fuel excise tax credit is realized through the offset of the total annual 2016 mexico income tax liability and income tax withholding payment obligations of kcsm , with no carryforward to future periods . equipment costs . equipment costs increased $ 0.6 million for the year ended december 31 , 2016 , compared to 2015 , due to higher car hire expense due to volume mix , partially offset by lower lease expense as a result of the purchase of equipment under existing operating leases and replacement equipment as certain operating leases expired . depreciation and amortization . depreciation and amortization increased $ 20.4 million for the year ended december 31 , 2016 , compared to 2015 , due to a larger asset base . materials and other . materials and other expense was flat for the year ended december 31 , 2016 , compared to 2015 . 34 lease termination costs . lease termination costs were $ 9.6 million for the year ended december 31 , 2015 , due to the early termination of certain operating leases and the related purchase of the equipment . the company did not incur lease termination costs for the year ended december 31 , 2016 . non-operating expenses equity in net earnings of affiliates . equity in net earnings from affiliates decreased $ 3.7 million for the year ended december 31 , 2016 , compared to 2015 , due to lower net earnings from the operations of pcrc and ftvm as a result of lower volumes . interest expense . interest expense increased $ 15.8 million for the year ended december 31 , 2016 , compared to 2015 , due to higher average debt balances and average interest rates as a result of the company 's issuance of debt during the third quarter of 2015 and the second quarter of 2016. for the year ended december 31 , 2016 , the average debt balance ( including short-term borrowings ) was $ 2,492.7 million , compared to $ 2,257.8 million in 2015 . the average interest rate for the year ended december 31 , 2016 was 4.0 % , compared to 3.7 % in 2015 . story_separator_special_tag activities increased $ 109.4 million for 2017 , as compared to 2016 , primarily due to increased operating income of

debt retirement and exchange costs . the company did not incur debt retirement and exchange costs during 2016. for the year ended december 31 , 2015 , debt retirement and exchange costs were $ 7.6 million , related to costs that were payable to parties other than the debt holders as a result of the kcsr and kcsm senior notes exchanged for kcs senior notes . foreign exchange loss . for the years ended december 31 , 2016 and 2015 , foreign exchange loss was $ 72.0 million and $ 56.6 million , respectively . foreign exchange loss includes the re-measurement and settlement of net monetary assets denominated in mexican pesos and the loss on foreign currency derivative contracts . for the years ended december 31 , 2016 and 2015 , the re-measurement and settlement of net monetary assets denominated in mexican pesos resulted in a foreign exchange loss of $ 18.5 million and $ 9.4 million , respectively . the company enters into foreign currency derivative contracts to hedge its net exposure to fluctuations in the mexican cash tax obligation due to changes in the value of the mexican peso against the u.s. dollar . for the years ended december 31 , 2016 and 2015 , foreign exchange loss on foreign currency derivative contracts was $ 53.5 million and $ 47.2 million , respectively . other expense , net . other expense , net , decreased $ 2.7 million for the year ended december 31 , 2016 , compared to 2015 , due to lower miscellaneous expenses . income tax expense . income tax expense decreased $ 4.5 million for the year ended december 31 , 2016 , compared to 2015 , due to lower pre-tax income and a lower effective tax rate . the effective tax rate was 27.6 % and 27.8 % for the years ended december 31 , 2016 and 2015 , respectively .


 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.
     ```debt retirement and exchange costs . the company did not incur debt retirement and exchange costs during 2016. for the year ended december 31 , 2015 , debt retirement and exchange costs were $ 7.6 million , related to costs that were payable to parties other than the debt holders as a result of the kcsr and kcsm senior notes exchanged for kcs senior notes . foreign exchange loss . for the years ended december 31 , 2016 and 2015 , foreign exchange loss was $ 72.0 million and $ 56.6 million , respectively . foreign exchange loss includes the re-measurement and settlement of net monetary assets denominated in mexican pesos and the loss on foreign currency derivative contracts . for the years ended december 31 , 2016 and 2015 , the re-measurement and settlement of net monetary assets denominated in mexican pesos resulted in a foreign exchange loss of $ 18.5 million and $ 9.4 million , respectively . the company enters into foreign currency derivative contracts to hedge its net exposure to fluctuations in the mexican cash tax obligation due to changes in the value of the mexican peso against the u.s. dollar . for the years ended december 31 , 2016 and 2015 , foreign exchange loss on foreign currency derivative contracts was $ 53.5 million and $ 47.2 million , respectively . other expense , net . other expense , net , decreased $ 2.7 million for the year ended december 31 , 2016 , compared to 2015 , due to lower miscellaneous expenses . income tax expense . income tax expense decreased $ 4.5 million for the year ended december 31 , 2016 , compared to 2015 , due to lower pre-tax income and a lower effective tax rate . the effective tax rate was 27.6 % and 27.8 % for the years ended december 31 , 2016 and 2015 , respectively .
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 Suspicious Activity Report : long-term financing , both within the united states and mexico and globally ; market and regulatory responses to climate change ; 24 changes in labor costs and labor difficulties , including strikes and work stoppages affecting either operations or customers ' abilities to deliver goods for shipment ; kcs 's reliance on certain key suppliers of core rail equipment ; availability of qualified personnel ; and acts of terrorism , war or other acts of violence or crime or risk of such activities . forward-looking statements reflect the information only as of the date on which they are made . the company does not undertake any obligation to update any forward-looking statements to reflect future events , developments , or other information . if kcs does update one or more forward-looking statements , no inference should be drawn that additional updates will be made regarding that statement or any other forward-looking statements . corporate overview kansas city southern , a delaware corporation , is a transportation holding company that has railroad investments in the u.s. , mexico and panama . in the u.s. , the company serves the central and south central u.s. its international holdings serve northeastern and central mexico and the port cities of lazaro cardenas , tampico and veracruz , and a fifty percent interest in panama canal railway company provides ocean-to-ocean freight and passenger service along the panama canal . kcs 's north american rail holdings and strategic alliances are primary components of a nafta railway system , linking the commercial and industrial centers of the u.s. , canada and mexico . its principal subsidiaries and affiliates include the following : the kansas city southern railway company ( “ kcsr ” ) , a wholly-owned subsidiary ; kcsm , a wholly-owned subsidiary ; mexrail , inc. ( “ mexrail ” ) , a wholly-owned consolidated subsidiary ; which , in turn , wholly owns the texas mexican railway company ( “ tex-mex ” ) ; kcsm servicios , s.a. de c.v. ( “ kcsm servicios ” ) , a wholly-owned subsidiary ; meridian speedway , llc ( “ msllc ” ) , a seventy percent-owned consolidated affiliate ; panama canal railway company ( “ pcrc ” ) , a fifty percent-owned unconsolidated affiliate ; tfcm , s. de r.l . de c.v. ( “ tcm ” ) , a forty-five percent-owned unconsolidated affiliate ; ferrocarril y terminal del valle de méxico , s.a. de c.v. ( “ ftvm ” ) , a twenty-five percent-owned unconsolidated affiliate ; and ptc-220 , llc ( “ ptc-220 ” ) , a fourteen percent-owned unconsolidated affiliate . executive summary 2017 financial overview revenues in 2017 increased 11 % from 2016 , due to 6 % and 5 % increases in revenue per carload/unit and carload/unit volumes , respectively . revenue per carload/unit increased due to mix , increased average length of haul , positive pricing impacts and higher fuel surcharge . energy revenue increased $ 81.1 million , primarily due to an increase in utility coal volumes due to higher natural gas prices and lower coal inventory levels . in addition , frac sand volumes increased due to strong demand as a result of higher crude oil prices . operating expenses increased 10 % compared to 2016 , primarily due to higher fuel prices and consumption , and compensation and benefits . expense fluctuations resulting from higher fuel prices largely offset the revenue fluctuations driven by these same macroeconomic factors . operating expenses as a percentage of revenues decreased to 64.3 % in 2017 from 64.9 % in 2016 . in 2017 , the company invested $ 559.5 million in capital expenditures . in addition , the company purchased $ 42.6 million of equipment under existing operating leases or replacement equipment as certain operating leases expired , which was primarily funded with internally generated cash flows and short-term borrowings . the company reported 2017 earnings of $ 9.16 per diluted share on consolidated net income attributable to kansas city southern and subsidiaries of $ 962.0 million for the year ended december 31 , 2017 , compared to annual earnings of $ 4.43 per 25 diluted share on consolidated net income attributable to kansas city southern and subsidiaries of $ 478.1 million for 2016 , due to increased net income , largely resulting from the recognition of a $ 413.0 million net tax benefit as a result of the tax cuts and jobs act ( the “ tax reform act ” ) , and the accelerated share repurchase program that was implemented during the third quarter of 2017 , which reduced the weighted-average shares outstanding . further information on the tax impacts of the tax reform act is included in the company 's consolidated financial statements presented in note 12 to the consolidated financial statements in item 8. results of operations year ended december 31 , 2017 , compared with the year ended december 31 , 2016 the following summarizes kcs 's consolidated income statement components ( in millions ) : replace_table_token_5_th revenues the following summarizes revenues ( in millions ) , carload/unit statistics ( in thousands ) and revenue per carload/unit : replace_table_token_6_th 26 revenues include revenue for transportation services and fuel surcharges . notwithstanding the impacts of hurricane harvey , revenues and carload/unit volumes increased 11 % and 5 % , respectively , for the year ended december 31 , 2017 , compared to the prior year . revenue per carload/unit increased by 6 % due to mix , increased average length of haul , positive pricing impacts , and higher fuel surcharge . energy revenues increased $ 81.1 million , primarily due to an increase in utility coal volumes due to higher natural gas prices and lower coal inventory levels . in addition , frac sand volumes increased due to strong demand as a result of higher crude oil prices . story_separator_special_tag revenues decreased $ 23.9 million for the year ended december 31 , 2016 , compared to 2015 , due to a 4 % decrease in carload/unit volumes and a 3 % decrease in revenue per carload/unit . volumes decreased due to service disruptions related to the flooding in the southeastern united states earlier in the year and protests in mexico during july of 2016 , increased truck conversion , and high retail inventory levels . revenue per carload/unit decreased as a result of pricing impacts and shorter average length of haul . automotive . revenues decreased $ 28.8 million for the year ended december 31 , 2016 , compared to 2015 , due to an 18 % decrease in revenue per carload/unit , partially offset by a 5 % increase in carload/unit volumes . revenue per carload/unit decreased due to the weakening of the mexican peso against the u.s. dollar and lower fuel surcharge . volumes increased due to 2015 service-related issues and new customers in 2016 , partially offset by customers ' temporary plant shutdowns in the first half of 2016 . 33 operating expenses operating expenses , as shown below ( in millions ) , decreased $ 99.3 million for the year ended december 31 , 2016 , compared to 2015 , primarily due to the mexican fuel excise tax credit , the weakening of the mexican peso against the u.s. dollar , and lower fuel prices . the weakening of the mexican peso against the u.s. dollar resulted in an expense reduction of approximately $ 63.0 million or 4 % for expense transactions denominated in mexican pesos . the average exchange rate of mexican pesos per u.s. dollar was ps.18.7 for 2016 compared to ps.15.8 for 2015. replace_table_token_10_th compensation and benefits . compensation and benefits increased $ 20.2 million for the year ended december 31 , 2016 , compared to 2015 , due to higher incentive compensation of approximately $ 34.0 million and annual wage increases of approximately $ 14.0 million . incentive compensation increased due to higher expected achievement of short and long-term incentive performance targets in 2016 , as compared to 2015. these increases were partially offset by the weakening of the mexican peso of approximately $ 19.0 million compared to 2015 , and lower u.s. labor costs of approximately $ 15.0 million due to reduced volumes and increased productivity . purchased services . purchased services expense decreased $ 14.5 million for the year ended december 31 , 2016 , compared to 2015 , due to car repair in mexico being performed in-house starting in october 2016 and the weakening of the mexican peso . fuel . fuel expense decreased $ 53.1 million for the year ended december 31 , 2016 , compared to 2015 , due to the weakening of the mexican peso of approximately $ 28.0 million and lower diesel fuel prices of approximately $ 18.0 million and $ 4.0 million in the u.s. and mexico , respectively . the average price per gallon , inclusive of the impact from the weakening of the mexican peso , was $ 1.95 in 2016 , compared to $ 2.32 in 2015. in addition , fuel expense decreased due to improved fuel efficiency and lower fuel consumption . mexican fuel excise tax credit . fuel purchases made in mexico are subject to an excise tax that is included in the price of fuel . in 2016 , the company determined it was eligible for and could utilize an available credit for the excise tax included in the price of fuel that is purchased and consumed in locomotives and certain work equipment in mexico and recognized a $ 62.8 million benefit . the mexican fuel excise tax credit is realized through the offset of the total annual 2016 mexico income tax liability and income tax withholding payment obligations of kcsm , with no carryforward to future periods . equipment costs . equipment costs increased $ 0.6 million for the year ended december 31 , 2016 , compared to 2015 , due to higher car hire expense due to volume mix , partially offset by lower lease expense as a result of the purchase of equipment under existing operating leases and replacement equipment as certain operating leases expired . depreciation and amortization . depreciation and amortization increased $ 20.4 million for the year ended december 31 , 2016 , compared to 2015 , due to a larger asset base . materials and other . materials and other expense was flat for the year ended december 31 , 2016 , compared to 2015 . 34 lease termination costs . lease termination costs were $ 9.6 million for the year ended december 31 , 2015 , due to the early termination of certain operating leases and the related purchase of the equipment . the company did not incur lease termination costs for the year ended december 31 , 2016 . non-operating expenses equity in net earnings of affiliates . equity in net earnings from affiliates decreased $ 3.7 million for the year ended december 31 , 2016 , compared to 2015 , due to lower net earnings from the operations of pcrc and ftvm as a result of lower volumes . interest expense . interest expense increased $ 15.8 million for the year ended december 31 , 2016 , compared to 2015 , due to higher average debt balances and average interest rates as a result of the company 's issuance of debt during the third quarter of 2015 and the second quarter of 2016. for the year ended december 31 , 2016 , the average debt balance ( including short-term borrowings ) was $ 2,492.7 million , compared to $ 2,257.8 million in 2015 . the average interest rate for the year ended december 31 , 2016 was 4.0 % , compared to 3.7 % in 2015 . story_separator_special_tag activities increased $ 109.4 million for 2017 , as compared to 2016 , primarily due to increased operating income of

