the following is management 's discussion and analysis of the financial condition and results of operations for the years ended december 31 , 2017 , 2016 and 2015 . this discussion should be read in conjunction with the consolidated financial statements , including the related notes , see item 8 “ financial statements ” of this annual report on form 10-k. for reconciliations of adjusted ebitda to net income ( loss ) , see “ selected financial data selected ” in item 6 of this annual report on form 10-k. key factors affecting operating results and financial condition key factors impacting our operating results and financial condition include the following : economic conditions , industry trends and relationships with customers and suppliers chemical availability and prices , including volume-based pricing acquisitions , dispositions and strategic investments operating efficiencies working capital requirements , interest rates and credit risk foreign currencies for a description of our business and how the above factors impact us , refer to item 1 “ business ” and item 1a “ risk factors ” of this annual report on form 10-k. in addition to the factors listed above , seasonal changes may affect our business and results of operations . our net sales are affected by the level of industrial production , which tends to decline in the fourth quarter of each year . certain of our end markets experience seasonal fluctuations , which also affect our net sales and results of operations . for example , our sales to the agricultural end market , particularly in canada , tend to peak in the second quarter in each year , depending in part on weather-related variations in demand for agricultural chemicals . sales to other end markets such as paints and coatings may also be affected by changing seasonal weather conditions . results of operations executive summary during 2017 , we strengthened our financial condition through the refinancing of debt and generation of strong operating cash flow which reduced our leverage . we made progress in the implementation of our key strategic initiatives of commercial greatness , operational excellence , and one univar , strengthened our management team and furthered the development of a 43 performance-driven culture . from an operations standpoint , we advanced on each of our priorities which form the framework for our strategy to grow the long-term value of univar for our equity and debt holders . as a result , in 2017 we : expanded our consolidated adjusted ebitda margins ; grew adjusted ebitda in each operating segment ; completed a significant transformation project in our usa segment , structuring the organization around asset type and customer need with clear accountability for profit and creating value through specialization ; acquired tagma brasil ltda . , expanding our agriculture business in one of the world 's fastest-growing agricultural markets ; launched the myunivar.com online platform in the us for product review and purchase ; refinanced debt extending maturity of the us term loan b to 2024 and lowering annual interest cost by 75 bps ; and resolved the canadian gaar tax court case with a federal court of appeals judgment in our favor . advances in our business were partially offset by : change in market , product mix , and inventory levels as a result of an agricultural season with drought conditions ; and sluggish demand for chemicals in mexico and strengthening of the us dollar against the peso . the following tables set forth , for the periods indicated , certain statements of operations data first on the basis of reported data and then as a percentage of total net sales for the relevant period . the financial data set forth below is not necessarily indicative of the results of future operations and should be read in conjunction with our historical consolidated financial statements and accompanying notes included elsewhere herein . 44 year ended december 31 , 2017 compared to year ended december 31 , 2016 replace_table_token_4_th * foreign currency translation is included in the percentage change . unfavorable impacts from foreign currency translation are designated with parentheses . net sales net sales percentage change due to : acquisitions 0.1 % reported sales volumes ( 5.8 ) % sales pricing and product mix 7.4 % foreign currency translation 0.5 % total 2.2 % net sales were $ 8,253.7 million in the year ended december 31 , 2017 , an increase of $ 180.0 million , or 2.2 % , from the year ended december 31 , 2016 . the increase in net sales from acquisitions was driven by the september 2017 tagma acquisition in the rest of world segment , the march 2016 nexus ag acquisition in canada , and the march 2016 bodine acquisition in the usa . the decrease in net sales from reported sales volumes was driven by the usa , emea , and rest of world segments , partially offset by higher sales volumes in the canada segment . the increase in net sales from changes in sales pricing and product mix was driven by all of our segments . foreign currency translation increased net sales due to the us dollar weakening against the canadian dollar , euro , and brazilian real , partially offset by the strengthening of the us dollar against the british pound and the mexican peso . refer to the “ segment results ” for the year ended december 31 , 2017 discussion for additional information . 45 gross profit gross profit percentage change due to : acquisitions 0.2 % reported sales volumes ( 5.8 ) % sales pricing , product costs and other adjustments 9.5 % foreign currency translation 0.6 % total 4.5 % gross profit increased $ 78.4 million , or 4.5 % , to $ 1,805.5 million for the year ended december 31 , 2017 . story_separator_special_tag 52 gross profit gross profit percentage change due to : acquisitions 2.0 % reported sales volumes ( 4.1 ) % sales pricing , product costs and other adjustments ( 0.6 ) % foreign currency translation ( 1.3 ) % total ( 4.0 ) % gross profit decreased $ 72.0 million , or 4.0 % , to $ 1,727.1 million for the year ended december 31 , 2016. the increase in gross profit from acquisitions was primarily driven by the november 2015 weavertown , march 2016 bodine , and july 2015 chemical associates acquisitions in the us ; and the october 2015 future/bluestar and march 2016 nexus ag acquisitions in canada . the decrease in gross profit from reported sales volumes primarily resulted from reductions in upstream oil and gas products driven by reduced market demand . the decrease in gross profit from changes in sales pricing , product costs and other adjustments was primarily driven by the usa segment , partially offset by increases in the canada , emea , and rest of world segments . foreign currency translation decreased gross profit due to the us dollar strengthening against all major currencies . gross margin , which we define as gross profit divided by net sales , increased to 21.4 % in the year ended december 31 , 2016 from 20.0 % in the year ended december 31 , 2015. refer to the “ segment results ” for the year ended december 31 , 2016 discussion for additional information . outbound freight and handling outbound freight and handling expenses decreased $ 38.0 million , or 11.7 % , to $ 286.6 million for the year ended december 31 , 2016. foreign currency translation decreased outbound freight and handling expense by 0.7 % or $ 2.3 million . on a constant currency basis , outbound freight and handling expenses decreased 11.0 % or $ 35.7 million , which was attributable to lower reported sales volumes . refer to the “ segment results ” for the year ended december 31 , 2016 discussion for additional information . warehousing , selling and administrative warehousing , selling and administrative expenses increased $ 3.4 million , or 0.4 % , to $ 877.8 million for the year ended december 31 , 2016. foreign currency translation decreased warehousing , selling and administrative expenses by 1.1 % or $ 9.8 million . the $ 13.2 million increase was primarily driven by $ 16.4 million of incremental operating expenses from acquisitions , $ 10.4 million in higher personnel expenses primarily due annual compensation increases , and a reduction of $ 7.9 million of gains from the medical retiree benefit plan have now been fully amortized from accumulated other comprehensive income . partially offsetting the increases were $ 12.1 million of lower variable compensation expense and cost reductions of $ 3.5 million of lower contract labor expenses , $ 3.1 million of lower travel and entertainment expenses , and $ 3.0 million of lower information technology expenses driven by efforts to control costs . the remaining $ 0.2 million increase related to several insignificant components . refer to the “ segment results ” for the year ended december 31 , 2016 discussion for additional information . other operating expenses , net other operating expenses , net decreased $ 1.6 million , or 1.5 % , to $ 104.5 million for the year ended december 31 , 2016. the decrease was primarily related to a reduction of $ 26.2 million in fees paid to our pre-initial public offering significant stockholders , cvc capital partners ( “ cvc ” ) and clayton , dubilier & rice , llc ( “ cd & r ” ) resulting from the termination of the management contracts with cvc and cd & r as part of our june 2015 ipo . also contributing to the decrease was $ 25.8 million of lower redundancy and restructuring charges ( primarily severance costs ) in the year ended december 31 , 2016 compared to the year ended december 31 , 2015. the cost savings from the prior redundancy and restructuring programs have been largely completed as of december 31 , 2016 and represent $ 10.0 million of annual savings . approximately 85 percent of the savings are within warehouse , selling and administrative expenses and 15 percent within cost of goods sold . just over half of these cost savings were achieved this year and were primarily within the usa and emea segments . cost savings from these programs will help offset other investments we make in our business and the impact of inflation . these estimated cost savings are based on information currently available to us . there can be no guarantee that all or any of these cost savings will actually be achieved . the actual amount of costs savings , if any , may differ materially from the above estimates . refer to “ note 5 : restructuring charges ” in item 8 of this annual report on form 10-k for additional information . the decrease in costs was primarily offset by a pension mark to market and related adjustments of $ 67.3 million which was $ 50.2 million higher than the year ended december 31 , 2015 , and $ 2.9 million of stock-based compensation primarily due to incremental expenses related to awards made in 2016. the remaining decrease was driven by lower consulting fees incurred of 53 $ 2.8 million and decreased acquisition and integration expenses of $ 1.6 million during the year ended december 31 , 2016. the remaining $ 1.7 million increase related to several insignificant components . foreign currency translation decreased other operating expenses , net by $ 6.4 million , or 6.0 % . refer to “ note 4 : other operating expenses , net ” in item 8 of this annual report on form 10-k for additional information . depreciation and amortization depreciation expense increased $ 15.8 million , or 11.6 % , to $ 152.3 million for

loss on extinguishment of debt increased $ 3.8 million for the year ended december 31 , 2017 . the $ 3.8 million loss on extinguishment of debt in the year ended december 31 , 2017 related to the write off of unamortized debt discount and debt issuance costs related to the january 2017 and november 2017 debt amendments of the senior term b loan agreement . refer to “ note 15 : debt ” in item 8 of our annual report on form 10-k for additional information . other expense , net other expense , net increased $ 27.1 million , or 444.3 % , to $ 33.2 million for the year ended december 31 , 2017 . the increase was primarily due to the $ 12.3 million change in mark to market for interest rate swaps resulting from a gain of $ 10.1 million during the year ended december 31 , 2016 compared to a $ 2.2 million loss in the year ended december 31 , 2017 . the increase was also driven by $ 5.3 million in fees related to the january 2017 and november 2017 amendments of the senior term b loan agreement . also contributing to the increase were $ 4.2 million in higher foreign currency denominated loan revaluation losses and $ 4.0 million in higher foreign currency transactions . the remaining $ 1.3 million increase is related to several insignificant components . refer to “ note 15 : debt ” and “ note 17 : derivatives ” in item 8 of this annual report on form 10-k for additional information . refer to “ note 6 : other expense , net ” in item 8 of this annual report on form 10-k for additional information . income tax expense ( benefit ) income tax expense increased $ 60.2 million from an income tax benefit of $ 11.2 million in the year ended december 31 , 2016 to an income tax expense of $ 49.0 million in the year ended december 31 , 2017 .


 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.
     ```loss on extinguishment of debt increased $ 3.8 million for the year ended december 31 , 2017 . the $ 3.8 million loss on extinguishment of debt in the year ended december 31 , 2017 related to the write off of unamortized debt discount and debt issuance costs related to the january 2017 and november 2017 debt amendments of the senior term b loan agreement . refer to “ note 15 : debt ” in item 8 of our annual report on form 10-k for additional information . other expense , net other expense , net increased $ 27.1 million , or 444.3 % , to $ 33.2 million for the year ended december 31 , 2017 . the increase was primarily due to the $ 12.3 million change in mark to market for interest rate swaps resulting from a gain of $ 10.1 million during the year ended december 31 , 2016 compared to a $ 2.2 million loss in the year ended december 31 , 2017 . the increase was also driven by $ 5.3 million in fees related to the january 2017 and november 2017 amendments of the senior term b loan agreement . also contributing to the increase were $ 4.2 million in higher foreign currency denominated loan revaluation losses and $ 4.0 million in higher foreign currency transactions . the remaining $ 1.3 million increase is related to several insignificant components . refer to “ note 15 : debt ” and “ note 17 : derivatives ” in item 8 of this annual report on form 10-k for additional information . refer to “ note 6 : other expense , net ” in item 8 of this annual report on form 10-k for additional information . income tax expense ( benefit ) income tax expense increased $ 60.2 million from an income tax benefit of $ 11.2 million in the year ended december 31 , 2016 to an income tax expense of $ 49.0 million in the year ended december 31 , 2017 .
```    
 Suspicious Activity Report : the following is management 's discussion and analysis of the financial condition and results of operations for the years ended december 31 , 2017 , 2016 and 2015 . this discussion should be read in conjunction with the consolidated financial statements , including the related notes , see item 8 “ financial statements ” of this annual report on form 10-k. for reconciliations of adjusted ebitda to net income ( loss ) , see “ selected financial data selected ” in item 6 of this annual report on form 10-k. key factors affecting operating results and financial condition key factors impacting our operating results and financial condition include the following : economic conditions , industry trends and relationships with customers and suppliers chemical availability and prices , including volume-based pricing acquisitions , dispositions and strategic investments operating efficiencies working capital requirements , interest rates and credit risk foreign currencies for a description of our business and how the above factors impact us , refer to item 1 “ business ” and item 1a “ risk factors ” of this annual report on form 10-k. in addition to the factors listed above , seasonal changes may affect our business and results of operations . our net sales are affected by the level of industrial production , which tends to decline in the fourth quarter of each year . certain of our end markets experience seasonal fluctuations , which also affect our net sales and results of operations . for example , our sales to the agricultural end market , particularly in canada , tend to peak in the second quarter in each year , depending in part on weather-related variations in demand for agricultural chemicals . sales to other end markets such as paints and coatings may also be affected by changing seasonal weather conditions . results of operations executive summary during 2017 , we strengthened our financial condition through the refinancing of debt and generation of strong operating cash flow which reduced our leverage . we made progress in the implementation of our key strategic initiatives of commercial greatness , operational excellence , and one univar , strengthened our management team and furthered the development of a 43 performance-driven culture . from an operations standpoint , we advanced on each of our priorities which form the framework for our strategy to grow the long-term value of univar for our equity and debt holders . as a result , in 2017 we : expanded our consolidated adjusted ebitda margins ; grew adjusted ebitda in each operating segment ; completed a significant transformation project in our usa segment , structuring the organization around asset type and customer need with clear accountability for profit and creating value through specialization ; acquired tagma brasil ltda . , expanding our agriculture business in one of the world 's fastest-growing agricultural markets ; launched the myunivar.com online platform in the us for product review and purchase ; refinanced debt extending maturity of the us term loan b to 2024 and lowering annual interest cost by 75 bps ; and resolved the canadian gaar tax court case with a federal court of appeals judgment in our favor . advances in our business were partially offset by : change in market , product mix , and inventory levels as a result of an agricultural season with drought conditions ; and sluggish demand for chemicals in mexico and strengthening of the us dollar against the peso . the following tables set forth , for the periods indicated , certain statements of operations data first on the basis of reported data and then as a percentage of total net sales for the relevant period . the financial data set forth below is not necessarily indicative of the results of future operations and should be read in conjunction with our historical consolidated financial statements and accompanying notes included elsewhere herein . 44 year ended december 31 , 2017 compared to year ended december 31 , 2016 replace_table_token_4_th * foreign currency translation is included in the percentage change . unfavorable impacts from foreign currency translation are designated with parentheses . net sales net sales percentage change due to : acquisitions 0.1 % reported sales volumes ( 5.8 ) % sales pricing and product mix 7.4 % foreign currency translation 0.5 % total 2.2 % net sales were $ 8,253.7 million in the year ended december 31 , 2017 , an increase of $ 180.0 million , or 2.2 % , from the year ended december 31 , 2016 . the increase in net sales from acquisitions was driven by the september 2017 tagma acquisition in the rest of world segment , the march 2016 nexus ag acquisition in canada , and the march 2016 bodine acquisition in the usa . the decrease in net sales from reported sales volumes was driven by the usa , emea , and rest of world segments , partially offset by higher sales volumes in the canada segment . the increase in net sales from changes in sales pricing and product mix was driven by all of our segments . foreign currency translation increased net sales due to the us dollar weakening against the canadian dollar , euro , and brazilian real , partially offset by the strengthening of the us dollar against the british pound and the mexican peso . refer to the “ segment results ” for the year ended december 31 , 2017 discussion for additional information . 45 gross profit gross profit percentage change due to : acquisitions 0.2 % reported sales volumes ( 5.8 ) % sales pricing , product costs and other adjustments 9.5 % foreign currency translation 0.6 % total 4.5 % gross profit increased $ 78.4 million , or 4.5 % , to $ 1,805.5 million for the year ended december 31 , 2017 . story_separator_special_tag 52 gross profit gross profit percentage change due to : acquisitions 2.0 % reported sales volumes ( 4.1 ) % sales pricing , product costs and other adjustments ( 0.6 ) % foreign currency translation ( 1.3 ) % total ( 4.0 ) % gross profit decreased $ 72.0 million , or 4.0 % , to $ 1,727.1 million for the year ended december 31 , 2016. the increase in gross profit from acquisitions was primarily driven by the november 2015 weavertown , march 2016 bodine , and july 2015 chemical associates acquisitions in the us ; and the october 2015 future/bluestar and march 2016 nexus ag acquisitions in canada . the decrease in gross profit from reported sales volumes primarily resulted from reductions in upstream oil and gas products driven by reduced market demand . the decrease in gross profit from changes in sales pricing , product costs and other adjustments was primarily driven by the usa segment , partially offset by increases in the canada , emea , and rest of world segments . foreign currency translation decreased gross profit due to the us dollar strengthening against all major currencies . gross margin , which we define as gross profit divided by net sales , increased to 21.4 % in the year ended december 31 , 2016 from 20.0 % in the year ended december 31 , 2015. refer to the “ segment results ” for the year ended december 31 , 2016 discussion for additional information . outbound freight and handling outbound freight and handling expenses decreased $ 38.0 million , or 11.7 % , to $ 286.6 million for the year ended december 31 , 2016. foreign currency translation decreased outbound freight and handling expense by 0.7 % or $ 2.3 million . on a constant currency basis , outbound freight and handling expenses decreased 11.0 % or $ 35.7 million , which was attributable to lower reported sales volumes . refer to the “ segment results ” for the year ended december 31 , 2016 discussion for additional information . warehousing , selling and administrative warehousing , selling and administrative expenses increased $ 3.4 million , or 0.4 % , to $ 877.8 million for the year ended december 31 , 2016. foreign currency translation decreased warehousing , selling and administrative expenses by 1.1 % or $ 9.8 million . the $ 13.2 million increase was primarily driven by $ 16.4 million of incremental operating expenses from acquisitions , $ 10.4 million in higher personnel expenses primarily due annual compensation increases , and a reduction of $ 7.9 million of gains from the medical retiree benefit plan have now been fully amortized from accumulated other comprehensive income . partially offsetting the increases were $ 12.1 million of lower variable compensation expense and cost reductions of $ 3.5 million of lower contract labor expenses , $ 3.1 million of lower travel and entertainment expenses , and $ 3.0 million of lower information technology expenses driven by efforts to control costs . the remaining $ 0.2 million increase related to several insignificant components . refer to the “ segment results ” for the year ended december 31 , 2016 discussion for additional information . other operating expenses , net other operating expenses , net decreased $ 1.6 million , or 1.5 % , to $ 104.5 million for the year ended december 31 , 2016. the decrease was primarily related to a reduction of $ 26.2 million in fees paid to our pre-initial public offering significant stockholders , cvc capital partners ( “ cvc ” ) and clayton , dubilier & rice , llc ( “ cd & r ” ) resulting from the termination of the management contracts with cvc and cd & r as part of our june 2015 ipo . also contributing to the decrease was $ 25.8 million of lower redundancy and restructuring charges ( primarily severance costs ) in the year ended december 31 , 2016 compared to the year ended december 31 , 2015. the cost savings from the prior redundancy and restructuring programs have been largely completed as of december 31 , 2016 and represent $ 10.0 million of annual savings . approximately 85 percent of the savings are within warehouse , selling and administrative expenses and 15 percent within cost of goods sold . just over half of these cost savings were achieved this year and were primarily within the usa and emea segments . cost savings from these programs will help offset other investments we make in our business and the impact of inflation . these estimated cost savings are based on information currently available to us . there can be no guarantee that all or any of these cost savings will actually be achieved . the actual amount of costs savings , if any , may differ materially from the above estimates . refer to “ note 5 : restructuring charges ” in item 8 of this annual report on form 10-k for additional information . the decrease in costs was primarily offset by a pension mark to market and related adjustments of $ 67.3 million which was $ 50.2 million higher than the year ended december 31 , 2015 , and $ 2.9 million of stock-based compensation primarily due to incremental expenses related to awards made in 2016. the remaining decrease was driven by lower consulting fees incurred of 53 $ 2.8 million and decreased acquisition and integration expenses of $ 1.6 million during the year ended december 31 , 2016. the remaining $ 1.7 million increase related to several insignificant components . foreign currency translation decreased other operating expenses , net by $ 6.4 million , or 6.0 % . refer to “ note 4 : other operating expenses , net ” in item 8 of this annual report on form 10-k for additional information . depreciation and amortization depreciation expense increased $ 15.8 million , or 11.6 % , to $ 152.3 million for

