the reduction of the u.s. federal corporate tax rate under the tax act is expected to reduce the effective tax rate for the year ended december 29 , 2018 by an estimated 13 % , as compared to what the effective tax rate would have been in the absence of tax reform , after taking into account the impact of the federal deduction of state income taxes . in 2016 , we launched an initiative to centralize certain field procurement and replenishment activities . we expect the procurement actions to be completed in 2018 , with realization of benefits in product costs and logistics savings resulting from more effective management of procurement and replenishment activities . however , the expected savings may be offset by increases in inbound freight resulting from capacity and rate challenges being experienced in the u.s. outlook with favorable trends in consumer confidence and the unemployment rate , we expect positive industry growth in 2018. general economic trends and conditions , including demographic changes , inflation , deflation , consumer confidence , and disposable income , coupled with changing tastes and preferences , influence the amount that consumers spend on food-away-from-home , which can affect our customers and , in turn , our sales . on balance , we believe that these general trends will support positive real growth in food-away-from-home consumption and the growth of foodservice industry sales , particularly in our target customer types . we expect competitive pressures to remain high and a moderation of year over year inflation in 2018. given that a large portion of our business is based on markups over cost , sudden inflation or prolonged deflation can negatively impact our sales and gross profit . we expect sales to our independent restaurant customers , which generally have higher margins , to continue to be an increasing proportion of our sales mix . favorable customer mix , additional volume from acquisitions , as well as other sourcing initiatives , will also continue to contribute to our ability to expand our margins . additionally , we believe our investments in a common technology platform , efficient transactional and operational model , e-commerce and analytic tools that support our team-based selling approach , coupled with product innovation , have enabled us to leverage our costs , maintain our sales , and differentiate ourselves from our competitors . our strategy includes continued focus on executing our growth strategies , adding value for and differentiating ourselves with our customers , and driving continued operational improvement in the business . 31 results of operations the following table presents selected consolidated results of operations of our business for the last three fiscal years : replace_table_token_9_th ( * ) amounts may not add due to rounding . ( 1 ) ebitda , adjusted ebitda , and adjusted net income are non-gaap measures used by management to measure operating performance . ebitda is defined as net income ( loss ) , plus interest expense—net , income tax ( benefit ) provision , and depreciation and amortization . adjusted ebitda is defined as ebitda adjusted for 1 ) sponsor fees ; 2 ) restructuring ( benefit ) charges and tangible asset impairments ; 3 ) share-based compensation expense ; 4 ) the non-cash impact of lifo reserve adjustments ; 5 ) loss on extinguishment of debt ; 6 ) pension settlements ; 7 ) business transformation costs ; 8 ) acquisition-related costs ; 9 ) acquisition termination fees—net ; and 10 ) other gains , losses , or charges as specified in usf 's debt agreements . adjusted net income is defined as net income ( loss ) excluding the items used to calculate adjusted ebitda listed above and further adjusted for the tax effect of the exclusions and discrete tax items . ebitda , adjusted ebitda , and adjusted net income as presented in this annual report are supplemental measures of our performance that are not required by—or presented in accordance with—gaap . they are not measurements of our performance under gaap and should not be considered as alternatives to net income ( loss ) or any other performance measures derived in accordance with gaap . 32 free cash flow is defined as cash flows provided by operati ng activities less capital expenditures . free cash flow is used by management as a supplemental measure of our liquidity . we believe that free cash flow is a useful financial metric to assess our ability to pursue business opportunities and investments . fr ee cash flow is not a measure of our liquidity under gaap and should not be considered as an alternative to cash flows provided by operating activities . see additional information for the use of these measures and “ non-gaap reconciliations ” in “ item 6. selected financial data ” . fiscal years ended december 30 , 2017 and december 31 , 2016 highlights case volume increased 2.9 % . independent restaurant case volume increased 5.2 % . net sales increased $ 1,228 million , or 5.4 % , to $ 24,147 million . operating income increased $ 160 million , or 38.6 % , to $ 574 million . as a percentage of net sales , operating income increased to 2.4 % in 2017 , compared to 1.8 % in 2016. net income increased $ 234 million to $ 444 million in 2017 , compared to $ 210 million in 2016. adjusted ebitda increased $ 86 million , or 8.8 % , to $ 1,058 million . as a percentage of net sales , adjusted ebitda increased to 4.4 % in 2017 , compared to 4.2 % in 2016. net sales total case growth in 2017 was 2.9 % . the increase reflected growth with independent restaurants , healthcare , and hospitality , partially offset by declines in education . organic case volume increased 1.7 % and reflected similar customer growth trends and some planned exits from national chains . story_separator_special_tag loss on extinguishment of debt as discussed in note 11 , debt , to our consolidated financial statements , we incurred a $ 54 million loss on extinguishment of debt in 2016. approximately $ 42 million of the loss related to the june 2016 debt redemption and refinancing . the remaining $ 12 million resulted from the defeasance of the cmbs fixed facility . income taxes the determination of our overall effective tax rate requires the use of estimates . the effective tax rate reflects the income earned and taxed in various united states federal and state jurisdictions based on enacted tax law , permanent differences between book and tax items , tax credits and our change in relative income in each jurisdiction . we released the valuation allowance against our federal net deferred tax assets and certain of our state net deferred tax assets in 2016 , as we determined it was more likely than not the deferred tax assets would be realized . we maintained a valuation allowance on certain state net operating loss and tax credit carryforwards expected to expire unutilized as a result of insufficient forecasted taxable income in the carryforward period or the utilization of which is subject to limitation . the decision to release the valuation allowance was made after management considered all available evidence , both positive and negative , including but not limited to , historical operating results , cumulative income in recent years , forecasted earnings , and a reduction of uncertainty regarding forecasted earnings as a result of developments in certain customer and strategic initiatives during 2016. the effective tax rate for 2016 and 2015 of ( 60 ) % and 13 % , respectively , varied from the 35 % federal statutory rate , primarily as a result of a change in the valuation allowance . during 2016 and 2015 , the valuation allowance decreased $ 128 million and $ 48 million , respectively . the decrease in the valuation allowance for 2016 was primarily the result of the year to date pre-tax income and the partial release of the valuation allowance . the decrease in the valuation allowance for 2015 was primarily the result of the year to date ordinary income , partially offset by an increase in the valuation allowance due to an increase in deferred tax liabilities related to indefinite-lived intangibles . the year to date ordinary income for 2015 was impacted by the $ 288 million net termination fee 37 received pursuant to the terminated acquisi tion agreement . see note 20 , income taxes , to our consolidated financial statements for a reconciliation of our effective tax rates to the statutory rate . net income our net income was $ 210 million in 2016 , compared to $ 168 million in 2015. the increase in net income was primarily due to the relevant factors discussed above . story_separator_special_tag beyond our control . every quarter , we review rating agency changes for all of the lenders that have a continuing obligation to provide us with funding . we are not aware of any facts that indicate our lenders will not be able to comply with the contractual terms of their agreements with us . we continue to monitor the credit markets generally and the strength of our lender counterparties . from time to time , we repurchase or otherwise retire our debt and take other steps to reduce our debt or otherwise improve our leverage . these actions may include open market repurchases , negotiated repurchases , and other retirements of outstanding debt . the amount of debt that may be repurchased or otherwise retired , if any , will depend on market conditions , our debt trading levels , our cash position , and other considerations . our credit facilities , loan agreements , and indentures contain customary covenants . these include , among other things , covenants that restrict usf 's ability to incur certain additional indebtedness , create or permit liens on assets , pay dividends , or engage in mergers or consolidations . as of december 30 , 2017 , usf had $ 751 million of restricted payment capacity under these covenants , and approximately $ 2,001 million of its net assets were restricted after taking into consideration the net deferred tax assets and intercompany balances that eliminate in consolidation . certain debt agreements also contain customary events of default . those include , without limitation , the failure to pay interest or principal when it is due under the agreements , cross default provisions , the failure of representations and warranties contained in the agreements to be true , and certain insolvency events . if a default event occurs and continues , the principal amounts outstanding , together with all unpaid interest and other amounts owed , may be declared immediately due and payable by the lenders . were such an event to occur , we would be forced to seek new financing that may not be on as favorable terms as our current facilities . our ability to refinance our indebtedness on favorable terms , or at all , is directly affected by the current economic and financial conditions . in addition , our ability to incur secured indebtedness ( which may enable us to achieve more favorable terms than the incurrence of unsecured indebtedness ) depends in part on the value of our assets . this , in turn , relies on the strength of our cash flows , results of operations , economic and market conditions and other factors . as of december 30 , 2017 , we were in compliance with all of our debt covenants . 39 cash flows for the last three fiscal years , the following table presents condensed highlights from our consolidated statements of cash flows : replace_table_token_10_th ( * ) amounts may not add due to rounding . operating activities cash flows provided by operating activities increased $ 192 million to

liquidity and capital resources our operations and strategic objectives require continuing capital investment . our resources include cash provided by operations , as well as access to capital from bank borrowings , various types of debt , and other financing arrangements . terms used but not defined in this discussion are defined in the detailed description of our indebtedness in note 11 , debt , to our consolidated financial statements . indebtedness our significant debt facilities have scheduled debt maturities primarily during the next seven years , and a substantial portion of our liquidity needs arise from debt service requirements , the ongoing costs of operations , working capital , and capital expenditures . as of december 30 , 2017 , the aggregate carrying value of our indebtedness was $ 3,757 million , net of $ 16 million of unamortized deferred financing costs . our primary financing sources for working capital and capital expenditures are cash from operations , the abl facility , and the 2012 abs facility . as of december 30 , 2017 , we had aggregate commitments for additional borrowings under the abl facility and the 2012 abs facility of $ 1,028 million , of which $ 922 million was available based on our borrowing base , all of which is secured . the abl facility provides for loans of up to $ 1,300 million , with its capacity limited by borrowing base calculations . as of december 30 , 2017 , we had outstanding borrowings of $ 80 million and had issued letters of credit totaling $ 412 million under the abl facility . there was available capacity on the abl facility of $ 807 million at december 30 , 2017 , based on the borrowing base calculation . the maximum capacity under the 2012 abs facility is $ 800 million , with its capacity limited by borrowing base calculations . borrowings under the 2012 abs facility were $ 580 million at december 30 , 2017. at our option , we can request additional 2012 abs facility borrowings up to the maximum commitment , provided sufficient eligible receivables are available as collateral .


 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 operations and strategic objectives require continuing capital investment . our resources include cash provided by operations , as well as access to capital from bank borrowings , various types of debt , and other financing arrangements . terms used but not defined in this discussion are defined in the detailed description of our indebtedness in note 11 , debt , to our consolidated financial statements . indebtedness our significant debt facilities have scheduled debt maturities primarily during the next seven years , and a substantial portion of our liquidity needs arise from debt service requirements , the ongoing costs of operations , working capital , and capital expenditures . as of december 30 , 2017 , the aggregate carrying value of our indebtedness was $ 3,757 million , net of $ 16 million of unamortized deferred financing costs . our primary financing sources for working capital and capital expenditures are cash from operations , the abl facility , and the 2012 abs facility . as of december 30 , 2017 , we had aggregate commitments for additional borrowings under the abl facility and the 2012 abs facility of $ 1,028 million , of which $ 922 million was available based on our borrowing base , all of which is secured . the abl facility provides for loans of up to $ 1,300 million , with its capacity limited by borrowing base calculations . as of december 30 , 2017 , we had outstanding borrowings of $ 80 million and had issued letters of credit totaling $ 412 million under the abl facility . there was available capacity on the abl facility of $ 807 million at december 30 , 2017 , based on the borrowing base calculation . the maximum capacity under the 2012 abs facility is $ 800 million , with its capacity limited by borrowing base calculations . borrowings under the 2012 abs facility were $ 580 million at december 30 , 2017. at our option , we can request additional 2012 abs facility borrowings up to the maximum commitment , provided sufficient eligible receivables are available as collateral .
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 Suspicious Activity Report : the reduction of the u.s. federal corporate tax rate under the tax act is expected to reduce the effective tax rate for the year ended december 29 , 2018 by an estimated 13 % , as compared to what the effective tax rate would have been in the absence of tax reform , after taking into account the impact of the federal deduction of state income taxes . in 2016 , we launched an initiative to centralize certain field procurement and replenishment activities . we expect the procurement actions to be completed in 2018 , with realization of benefits in product costs and logistics savings resulting from more effective management of procurement and replenishment activities . however , the expected savings may be offset by increases in inbound freight resulting from capacity and rate challenges being experienced in the u.s. outlook with favorable trends in consumer confidence and the unemployment rate , we expect positive industry growth in 2018. general economic trends and conditions , including demographic changes , inflation , deflation , consumer confidence , and disposable income , coupled with changing tastes and preferences , influence the amount that consumers spend on food-away-from-home , which can affect our customers and , in turn , our sales . on balance , we believe that these general trends will support positive real growth in food-away-from-home consumption and the growth of foodservice industry sales , particularly in our target customer types . we expect competitive pressures to remain high and a moderation of year over year inflation in 2018. given that a large portion of our business is based on markups over cost , sudden inflation or prolonged deflation can negatively impact our sales and gross profit . we expect sales to our independent restaurant customers , which generally have higher margins , to continue to be an increasing proportion of our sales mix . favorable customer mix , additional volume from acquisitions , as well as other sourcing initiatives , will also continue to contribute to our ability to expand our margins . additionally , we believe our investments in a common technology platform , efficient transactional and operational model , e-commerce and analytic tools that support our team-based selling approach , coupled with product innovation , have enabled us to leverage our costs , maintain our sales , and differentiate ourselves from our competitors . our strategy includes continued focus on executing our growth strategies , adding value for and differentiating ourselves with our customers , and driving continued operational improvement in the business . 31 results of operations the following table presents selected consolidated results of operations of our business for the last three fiscal years : replace_table_token_9_th ( * ) amounts may not add due to rounding . ( 1 ) ebitda , adjusted ebitda , and adjusted net income are non-gaap measures used by management to measure operating performance . ebitda is defined as net income ( loss ) , plus interest expense—net , income tax ( benefit ) provision , and depreciation and amortization . adjusted ebitda is defined as ebitda adjusted for 1 ) sponsor fees ; 2 ) restructuring ( benefit ) charges and tangible asset impairments ; 3 ) share-based compensation expense ; 4 ) the non-cash impact of lifo reserve adjustments ; 5 ) loss on extinguishment of debt ; 6 ) pension settlements ; 7 ) business transformation costs ; 8 ) acquisition-related costs ; 9 ) acquisition termination fees—net ; and 10 ) other gains , losses , or charges as specified in usf 's debt agreements . adjusted net income is defined as net income ( loss ) excluding the items used to calculate adjusted ebitda listed above and further adjusted for the tax effect of the exclusions and discrete tax items . ebitda , adjusted ebitda , and adjusted net income as presented in this annual report are supplemental measures of our performance that are not required by—or presented in accordance with—gaap . they are not measurements of our performance under gaap and should not be considered as alternatives to net income ( loss ) or any other performance measures derived in accordance with gaap . 32 free cash flow is defined as cash flows provided by operati ng activities less capital expenditures . free cash flow is used by management as a supplemental measure of our liquidity . we believe that free cash flow is a useful financial metric to assess our ability to pursue business opportunities and investments . fr ee cash flow is not a measure of our liquidity under gaap and should not be considered as an alternative to cash flows provided by operating activities . see additional information for the use of these measures and “ non-gaap reconciliations ” in “ item 6. selected financial data ” . fiscal years ended december 30 , 2017 and december 31 , 2016 highlights case volume increased 2.9 % . independent restaurant case volume increased 5.2 % . net sales increased $ 1,228 million , or 5.4 % , to $ 24,147 million . operating income increased $ 160 million , or 38.6 % , to $ 574 million . as a percentage of net sales , operating income increased to 2.4 % in 2017 , compared to 1.8 % in 2016. net income increased $ 234 million to $ 444 million in 2017 , compared to $ 210 million in 2016. adjusted ebitda increased $ 86 million , or 8.8 % , to $ 1,058 million . as a percentage of net sales , adjusted ebitda increased to 4.4 % in 2017 , compared to 4.2 % in 2016. net sales total case growth in 2017 was 2.9 % . the increase reflected growth with independent restaurants , healthcare , and hospitality , partially offset by declines in education . organic case volume increased 1.7 % and reflected similar customer growth trends and some planned exits from national chains . story_separator_special_tag loss on extinguishment of debt as discussed in note 11 , debt , to our consolidated financial statements , we incurred a $ 54 million loss on extinguishment of debt in 2016. approximately $ 42 million of the loss related to the june 2016 debt redemption and refinancing . the remaining $ 12 million resulted from the defeasance of the cmbs fixed facility . income taxes the determination of our overall effective tax rate requires the use of estimates . the effective tax rate reflects the income earned and taxed in various united states federal and state jurisdictions based on enacted tax law , permanent differences between book and tax items , tax credits and our change in relative income in each jurisdiction . we released the valuation allowance against our federal net deferred tax assets and certain of our state net deferred tax assets in 2016 , as we determined it was more likely than not the deferred tax assets would be realized . we maintained a valuation allowance on certain state net operating loss and tax credit carryforwards expected to expire unutilized as a result of insufficient forecasted taxable income in the carryforward period or the utilization of which is subject to limitation . the decision to release the valuation allowance was made after management considered all available evidence , both positive and negative , including but not limited to , historical operating results , cumulative income in recent years , forecasted earnings , and a reduction of uncertainty regarding forecasted earnings as a result of developments in certain customer and strategic initiatives during 2016. the effective tax rate for 2016 and 2015 of ( 60 ) % and 13 % , respectively , varied from the 35 % federal statutory rate , primarily as a result of a change in the valuation allowance . during 2016 and 2015 , the valuation allowance decreased $ 128 million and $ 48 million , respectively . the decrease in the valuation allowance for 2016 was primarily the result of the year to date pre-tax income and the partial release of the valuation allowance . the decrease in the valuation allowance for 2015 was primarily the result of the year to date ordinary income , partially offset by an increase in the valuation allowance due to an increase in deferred tax liabilities related to indefinite-lived intangibles . the year to date ordinary income for 2015 was impacted by the $ 288 million net termination fee 37 received pursuant to the terminated acquisi tion agreement . see note 20 , income taxes , to our consolidated financial statements for a reconciliation of our effective tax rates to the statutory rate . net income our net income was $ 210 million in 2016 , compared to $ 168 million in 2015. the increase in net income was primarily due to the relevant factors discussed above . story_separator_special_tag beyond our control . every quarter , we review rating agency changes for all of the lenders that have a continuing obligation to provide us with funding . we are not aware of any facts that indicate our lenders will not be able to comply with the contractual terms of their agreements with us . we continue to monitor the credit markets generally and the strength of our lender counterparties . from time to time , we repurchase or otherwise retire our debt and take other steps to reduce our debt or otherwise improve our leverage . these actions may include open market repurchases , negotiated repurchases , and other retirements of outstanding debt . the amount of debt that may be repurchased or otherwise retired , if any , will depend on market conditions , our debt trading levels , our cash position , and other considerations . our credit facilities , loan agreements , and indentures contain customary covenants . these include , among other things , covenants that restrict usf 's ability to incur certain additional indebtedness , create or permit liens on assets , pay dividends , or engage in mergers or consolidations . as of december 30 , 2017 , usf had $ 751 million of restricted payment capacity under these covenants , and approximately $ 2,001 million of its net assets were restricted after taking into consideration the net deferred tax assets and intercompany balances that eliminate in consolidation . certain debt agreements also contain customary events of default . those include , without limitation , the failure to pay interest or principal when it is due under the agreements , cross default provisions , the failure of representations and warranties contained in the agreements to be true , and certain insolvency events . if a default event occurs and continues , the principal amounts outstanding , together with all unpaid interest and other amounts owed , may be declared immediately due and payable by the lenders . were such an event to occur , we would be forced to seek new financing that may not be on as favorable terms as our current facilities . our ability to refinance our indebtedness on favorable terms , or at all , is directly affected by the current economic and financial conditions . in addition , our ability to incur secured indebtedness ( which may enable us to achieve more favorable terms than the incurrence of unsecured indebtedness ) depends in part on the value of our assets . this , in turn , relies on the strength of our cash flows , results of operations , economic and market conditions and other factors . as of december 30 , 2017 , we were in compliance with all of our debt covenants . 39 cash flows for the last three fiscal years , the following table presents condensed highlights from our consolidated statements of cash flows : replace_table_token_10_th ( * ) amounts may not add due to rounding . operating activities cash flows provided by operating activities increased $ 192 million to

