of the company ; changes in accounting rules and standards , audits , compliance with the sarbanes-oxley act , and regulatory investigations ; the effects of changes to critical accounting estimates ; changes in volatility of the company 's stock price and the risk of litigation following a decline in the price of the company 's stock ; failure of the company 's operating equipment or information technology infrastructure ; the company 's ability to implement our enterprise resource planning ( erp ) system ; the company 's access to capital , credit ratings , indebtedness , and ability to raise additional capital and operate under the terms of the company 's debt obligations ; the risks associated with our debt ; the risks associated with the company 's exposure to variable interest rates and foreign currency exchange rates ; the risks associated with interest rate swap contracts ; the risks associated with the company 's being subject to tax laws and regulations in various jurisdictions ; the risks associated with the company 's exposure to renewable energy markets ; the risks related to regulations regarding conflict minerals ; the risks associated with the volatility and disruption in the global financial markets ; the company 's ability to successfully execute , manage and integrate key acquisitions and mergers , including the svendborg acquisition , and the stromag acquisition ; the company 's ability to achieve the efficiencies , savings and other benefits anticipated from our cost reduction , margin improvement , restructuring , plant consolidation and other business optimization initiatives ; the risk associated with the uk vote to leave the european union ; and other factors , risks , and uncertainties referenced in the company 's filings with the securities and exchange commission , including the “ risk factors ” set forth in this document . all forward-looking statements speak only as of the date of this report . except as required by law , we undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect any events or circumstances after the date of this report or to reflect the occurrence of unanticipated events . all subsequent written and oral forward-looking statements attributable to us or any person acting on the company 's behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section and in our risk factors set forth in part i , item 1a of the company 's annual report on form 10-k and in other reports filed with the sec by the company . the following discussion of the financial condition and results of operations of altra industrial motion corp. and its subsidiaries should be read together with the selected historical financial data , and the consolidated financial statements of altra industrial motion corp. and its subsidiaries and related notes included elsewhere in the company 's annual report on form 10-k. the following discussion includes forward-looking statements . for a discussion of important factors that could cause actual results to differ materially from the results referred to in the forward-looking statements , see “ forward-looking statements ” and “ risk factors ” . unless the context requires otherwise , the terms “ altra , ” “ altra industrial motion corp. , ” “ the company , ” “ we , ” “ us ” and “ our ” refer to altra industrial motion corp. and its subsidiaries . general we are a leading global designer , producer and marketer of a wide range of electromechanical power transmission and motion control products with a presence in over 70 countries . our global sales and marketing network includes over 1,000 direct oem customers and over 3,000 distributor outlets . our product portfolio includes industrial clutches and brakes , enclosed gear drives , open gearing , couplings , engineered bearing assemblies , linear components , gear motors , and other related products . our products serve a wide variety of end markets including energy , general industrial , material handling , mining , transportation and turf and garden . we 29 primarily sell our products to a wide range of oems and through long-standing relations hips with industrial distributors such as motion industries , applied industrial technologies , kaman industrial technologies and w.w. grainger . while the power transmission industry has undergone some consolidation , we estimate that in 2017 the top five broad-based electromechanical power transmission companies represented approximately 14 % of the u.s. power transmission market . the remainder of the power transmission industry remains fragmented with many small and family-owned companies that cater to a specific market niche often due to their narrow product offerings . we believe that consolidation in our industry will continue because of the increasing demand for global distribution channels , broader product mixes and better brand recognition to compete in this industry . business outlook our future financial performance depends , in large part , on conditions in the markets that we serve and on the u.s. , european , and global economies in general . recently , our financial performance has been adversely impacted by challenging dynamics in several of our end markets including oil and gas , power generation and alternative energy . in addition , we face uncertainty relating to the impact of potential inflationary pressure and rising interest rates on our revenues and earnings . at the same time , we believe that our consolidation , supply chain , pricing and operational excellence initiatives will enable us to continue to enhance margins and accelerate profitability . critical accounting policies the methods , estimates and judgments we use in applying our critical accounting policies have a significant impact on the results we report in our financial statements . we evaluate our estimates and judgments on an on-going basis . our estimates are based upon historical experience and assumptions that we believe are reasonable under the circumstances . story_separator_special_tag of the decrease in sales , approximately $ 11.7 million related to the impact of changes to foreign exchanges relates primarily related to the euro , british pound , and chinese renminbi compared to the prior year . in addition , $ 32.2 million related to decreased sales in various end markets , primarily oil and gas , and mining and agriculture in our clutches , couplings , and brakes and electromagnetic , clutches and brakes business segments . this was offset somewhat by increased revenues due to price increases of $ 6.2 million during the year . replace_table_token_11_th gross profit . gross profit as a percentage of sales improved slightly during the year ended december 31 , 2016. this increase was due to improvements realized from our facility consolidation and costs saving efforts , partially offset by unfavorable product mix and redundant labor costs associated with ongoing consolidation activities . replace_table_token_12_th 35 selling , general and administrative expenses . the vast majority of the increase in sg & a , approximately $ 1.7 million , was due to acquisition costs related to the stromag acquisition which closed in december 2016. acquisition costs for 2016 were $ 2.3 million . increased acquisition costs were offset by the favorable ef fect of foreign exchange rates . amounts in thousands , except percentage data year ended december 31 , 2016 december 31 , 2015 change % research and development expenses ( “ r & d ” ) $ 17,677 $ 17,818 $ ( 141 ) ( 0.8 ) % research and development expenses . research an development expenses remained consistent compared to the prior year . amounts in thousands , except percentage data year ended december 31 , 2016 december 31 , 2015 change % restructuring costs $ 9,849 $ 7,214 $ 2,635 36.5 % restructuring costs . during the quarter ended march 31 , 2015 , the company commenced a restructuring plan ( “ 2015 altra plan ” ) as a result of weak demand in europe and to make certain adjustments to improve business effectiveness , reduce the number of facilities and streamline the company 's cost structure . the 2015 altra plan was a comprehensive plan and focused on facility consolidations and overall cost structure . the company initiated eight facility consolidations under the 2015 altra plan . the majority of the increase relates to $ 1.6 million of expense recorded in the couplings , clutches , and brakes business segment related to the consolidation efforts at the company 's facility in green bay , wisconsin . amounts in thousands , except percentage data year ended december 31 , 2016 december 31 , 2015 change % interest expense , net $ 11,679 $ 12,164 $ ( 485 ) ( 4.0 ) % interest expense . net interest expense remained consistent between 2015 and 2016. the company entered into an agreement to amend its 2015 credit agreement during october 2016 which increased the capacity under the company 's 2015 revolving credit facility . the company borrowed additional funds under the expanded facility to finance the purchase of stromag and also entered into the associated cross-currency interest rate swaps . amounts in thousands , except percentage data year ended december 31 , 2016 december 31 , 2015 change % other non-operating expense/ ( income ) , net $ ( 7 ) $ 963 $ ( 970 ) ( 100.7 ) % other non-operating ( income ) expense . other non-operating expense ( income ) in each period in the chart above related primarily to realized changes in foreign currency , primarily the euro and british pound . replace_table_token_13_th provision for income taxes . the provision for income tax , as a percentage of income before taxes , during the year ended december 31 , 2016 was lower than that of 2015. the 2016 impairment of intangibles in the united states , and loss on the extinguishment of debt resulted in a lower 36 taxable income in the company 's highest tax rate jurisdiction . the remainder of the decrease in the provision , as a percentage of income before taxes , was due to the continued benefits of the prior reorganization of our foreign subsidiaries . segment performance couplings , clutches & brakes . net sales in the couplings , clutches & brakes segment were $ 305.4 million in the year ended december 31 , 2016 , a decrease of approximately $ 36.9 million or 10.8 % , from the year ended december 31 , 2015. approximately $ 7.1 million of the decrease was due to the impact of changes to foreign exchange rates primarily related to the british pound and chinese renminbi compared to the prior year . the remaining decrease in sales was due primarily to weakness in the oil and gas , metals and mining markets of approximately $ 29.8 million compared to the prior period . segment operating income decreased $ 17.8 million compared to the prior year primarily as a result of the impact of weakness in the oil and gas , metals and mining markets . electromagnetic clutches & brakes . net sales in the electromagnetic clutches & brakes segment were $ 217.9 million in the year ended december 31 , 2016 , a decrease of approximately $ 1.8 million , or 0.8 % , from the year ended december 31 , 2015. the impact of changes to foreign exchange rates primarily related to the chinese renminbi and british pound caused net sales to decrease by approximately $ 3.3 million compared to the prior year . segment operating income increased $ 4.8 million compared to the prior year primarily as a result of the impact of restructuring activities initiated during 2015 and early 2016. gearing . net sales in the gearing business segment were $ 192.0 million in the year ended december 31 , 2016 , compared with $ 192.3 million in the year ended december 31 , 2015 , a decrease of $ 0.3

cash flows from operating activities dec reased approximately $ 10.2 million primarily due from a decrease in net income of approximately $ 10.2 million . the decrease is primarily due to the decline in sales and the increase in restructuring expenses . the change in net cash used in investing activities was primarily due to the acquisition of stromag in december 2016 for $ 188.0 million , net of cash received . the increase in net cash from financing activities was primarily due to the additional borrowing of approximately $ 200 million under our 2015 revolving credit facility for the stromag acquisition offset by payments on the 2015 revolving credit facility . capital expenditures we made capital expenditures of approximately $ 32.8 million and $ 18.9 million in the years ended december 31 , 2017 and 2016 , respectively . the increase in capital expenditures during 2017 was due to construction costs in 2017 at three of our facilities . these capital expenditures will support on-going business needs . in 2018 , we forecast capital expenditures to be in the range of $ 25.0 million to $ 27.0 million . off-balance sheet arrangements we do not have any off-balance sheet arrangements that provide liquidity , capital resources , market or credit risk support that expose us to any liability that is not reflected in our consolidated financial statements . contractual obligations the following table is a summary of our contractual cash obligations as of december 31 , 2017 ( in thousands ) : replace_table_token_17_th ( 1 ) a foreign subsidiary of the company entered into a mortgage with a bank for 1.5 million , or $ 1.7 million , secured by its facility in heidelberg , germany to replace its previously existing mortgage during the quarter ended september 30 , 2015. the mortgage has an interest rate of 1.79 % which is payable in monthly installments through august 2023. the mortgage has a remaining principal balance of 1.3 million , or $ 1.4 million , at 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.
     ```cash flows from operating activities dec reased approximately $ 10.2 million primarily due from a decrease in net income of approximately $ 10.2 million . the decrease is primarily due to the decline in sales and the increase in restructuring expenses . the change in net cash used in investing activities was primarily due to the acquisition of stromag in december 2016 for $ 188.0 million , net of cash received . the increase in net cash from financing activities was primarily due to the additional borrowing of approximately $ 200 million under our 2015 revolving credit facility for the stromag acquisition offset by payments on the 2015 revolving credit facility . capital expenditures we made capital expenditures of approximately $ 32.8 million and $ 18.9 million in the years ended december 31 , 2017 and 2016 , respectively . the increase in capital expenditures during 2017 was due to construction costs in 2017 at three of our facilities . these capital expenditures will support on-going business needs . in 2018 , we forecast capital expenditures to be in the range of $ 25.0 million to $ 27.0 million . off-balance sheet arrangements we do not have any off-balance sheet arrangements that provide liquidity , capital resources , market or credit risk support that expose us to any liability that is not reflected in our consolidated financial statements . contractual obligations the following table is a summary of our contractual cash obligations as of december 31 , 2017 ( in thousands ) : replace_table_token_17_th ( 1 ) a foreign subsidiary of the company entered into a mortgage with a bank for 1.5 million , or $ 1.7 million , secured by its facility in heidelberg , germany to replace its previously existing mortgage during the quarter ended september 30 , 2015. the mortgage has an interest rate of 1.79 % which is payable in monthly installments through august 2023. the mortgage has a remaining principal balance of 1.3 million , or $ 1.4 million , at december 31 , 2017 .
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 Suspicious Activity Report : of the company ; changes in accounting rules and standards , audits , compliance with the sarbanes-oxley act , and regulatory investigations ; the effects of changes to critical accounting estimates ; changes in volatility of the company 's stock price and the risk of litigation following a decline in the price of the company 's stock ; failure of the company 's operating equipment or information technology infrastructure ; the company 's ability to implement our enterprise resource planning ( erp ) system ; the company 's access to capital , credit ratings , indebtedness , and ability to raise additional capital and operate under the terms of the company 's debt obligations ; the risks associated with our debt ; the risks associated with the company 's exposure to variable interest rates and foreign currency exchange rates ; the risks associated with interest rate swap contracts ; the risks associated with the company 's being subject to tax laws and regulations in various jurisdictions ; the risks associated with the company 's exposure to renewable energy markets ; the risks related to regulations regarding conflict minerals ; the risks associated with the volatility and disruption in the global financial markets ; the company 's ability to successfully execute , manage and integrate key acquisitions and mergers , including the svendborg acquisition , and the stromag acquisition ; the company 's ability to achieve the efficiencies , savings and other benefits anticipated from our cost reduction , margin improvement , restructuring , plant consolidation and other business optimization initiatives ; the risk associated with the uk vote to leave the european union ; and other factors , risks , and uncertainties referenced in the company 's filings with the securities and exchange commission , including the “ risk factors ” set forth in this document . all forward-looking statements speak only as of the date of this report . except as required by law , we undertake no obligation to publicly update or release any revisions to these forward-looking statements to reflect any events or circumstances after the date of this report or to reflect the occurrence of unanticipated events . all subsequent written and oral forward-looking statements attributable to us or any person acting on the company 's behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section and in our risk factors set forth in part i , item 1a of the company 's annual report on form 10-k and in other reports filed with the sec by the company . the following discussion of the financial condition and results of operations of altra industrial motion corp. and its subsidiaries should be read together with the selected historical financial data , and the consolidated financial statements of altra industrial motion corp. and its subsidiaries and related notes included elsewhere in the company 's annual report on form 10-k. the following discussion includes forward-looking statements . for a discussion of important factors that could cause actual results to differ materially from the results referred to in the forward-looking statements , see “ forward-looking statements ” and “ risk factors ” . unless the context requires otherwise , the terms “ altra , ” “ altra industrial motion corp. , ” “ the company , ” “ we , ” “ us ” and “ our ” refer to altra industrial motion corp. and its subsidiaries . general we are a leading global designer , producer and marketer of a wide range of electromechanical power transmission and motion control products with a presence in over 70 countries . our global sales and marketing network includes over 1,000 direct oem customers and over 3,000 distributor outlets . our product portfolio includes industrial clutches and brakes , enclosed gear drives , open gearing , couplings , engineered bearing assemblies , linear components , gear motors , and other related products . our products serve a wide variety of end markets including energy , general industrial , material handling , mining , transportation and turf and garden . we 29 primarily sell our products to a wide range of oems and through long-standing relations hips with industrial distributors such as motion industries , applied industrial technologies , kaman industrial technologies and w.w. grainger . while the power transmission industry has undergone some consolidation , we estimate that in 2017 the top five broad-based electromechanical power transmission companies represented approximately 14 % of the u.s. power transmission market . the remainder of the power transmission industry remains fragmented with many small and family-owned companies that cater to a specific market niche often due to their narrow product offerings . we believe that consolidation in our industry will continue because of the increasing demand for global distribution channels , broader product mixes and better brand recognition to compete in this industry . business outlook our future financial performance depends , in large part , on conditions in the markets that we serve and on the u.s. , european , and global economies in general . recently , our financial performance has been adversely impacted by challenging dynamics in several of our end markets including oil and gas , power generation and alternative energy . in addition , we face uncertainty relating to the impact of potential inflationary pressure and rising interest rates on our revenues and earnings . at the same time , we believe that our consolidation , supply chain , pricing and operational excellence initiatives will enable us to continue to enhance margins and accelerate profitability . critical accounting policies the methods , estimates and judgments we use in applying our critical accounting policies have a significant impact on the results we report in our financial statements . we evaluate our estimates and judgments on an on-going basis . our estimates are based upon historical experience and assumptions that we believe are reasonable under the circumstances . story_separator_special_tag of the decrease in sales , approximately $ 11.7 million related to the impact of changes to foreign exchanges relates primarily related to the euro , british pound , and chinese renminbi compared to the prior year . in addition , $ 32.2 million related to decreased sales in various end markets , primarily oil and gas , and mining and agriculture in our clutches , couplings , and brakes and electromagnetic , clutches and brakes business segments . this was offset somewhat by increased revenues due to price increases of $ 6.2 million during the year . replace_table_token_11_th gross profit . gross profit as a percentage of sales improved slightly during the year ended december 31 , 2016. this increase was due to improvements realized from our facility consolidation and costs saving efforts , partially offset by unfavorable product mix and redundant labor costs associated with ongoing consolidation activities . replace_table_token_12_th 35 selling , general and administrative expenses . the vast majority of the increase in sg & a , approximately $ 1.7 million , was due to acquisition costs related to the stromag acquisition which closed in december 2016. acquisition costs for 2016 were $ 2.3 million . increased acquisition costs were offset by the favorable ef fect of foreign exchange rates . amounts in thousands , except percentage data year ended december 31 , 2016 december 31 , 2015 change % research and development expenses ( “ r & d ” ) $ 17,677 $ 17,818 $ ( 141 ) ( 0.8 ) % research and development expenses . research an development expenses remained consistent compared to the prior year . amounts in thousands , except percentage data year ended december 31 , 2016 december 31 , 2015 change % restructuring costs $ 9,849 $ 7,214 $ 2,635 36.5 % restructuring costs . during the quarter ended march 31 , 2015 , the company commenced a restructuring plan ( “ 2015 altra plan ” ) as a result of weak demand in europe and to make certain adjustments to improve business effectiveness , reduce the number of facilities and streamline the company 's cost structure . the 2015 altra plan was a comprehensive plan and focused on facility consolidations and overall cost structure . the company initiated eight facility consolidations under the 2015 altra plan . the majority of the increase relates to $ 1.6 million of expense recorded in the couplings , clutches , and brakes business segment related to the consolidation efforts at the company 's facility in green bay , wisconsin . amounts in thousands , except percentage data year ended december 31 , 2016 december 31 , 2015 change % interest expense , net $ 11,679 $ 12,164 $ ( 485 ) ( 4.0 ) % interest expense . net interest expense remained consistent between 2015 and 2016. the company entered into an agreement to amend its 2015 credit agreement during october 2016 which increased the capacity under the company 's 2015 revolving credit facility . the company borrowed additional funds under the expanded facility to finance the purchase of stromag and also entered into the associated cross-currency interest rate swaps . amounts in thousands , except percentage data year ended december 31 , 2016 december 31 , 2015 change % other non-operating expense/ ( income ) , net $ ( 7 ) $ 963 $ ( 970 ) ( 100.7 ) % other non-operating ( income ) expense . other non-operating expense ( income ) in each period in the chart above related primarily to realized changes in foreign currency , primarily the euro and british pound . replace_table_token_13_th provision for income taxes . the provision for income tax , as a percentage of income before taxes , during the year ended december 31 , 2016 was lower than that of 2015. the 2016 impairment of intangibles in the united states , and loss on the extinguishment of debt resulted in a lower 36 taxable income in the company 's highest tax rate jurisdiction . the remainder of the decrease in the provision , as a percentage of income before taxes , was due to the continued benefits of the prior reorganization of our foreign subsidiaries . segment performance couplings , clutches & brakes . net sales in the couplings , clutches & brakes segment were $ 305.4 million in the year ended december 31 , 2016 , a decrease of approximately $ 36.9 million or 10.8 % , from the year ended december 31 , 2015. approximately $ 7.1 million of the decrease was due to the impact of changes to foreign exchange rates primarily related to the british pound and chinese renminbi compared to the prior year . the remaining decrease in sales was due primarily to weakness in the oil and gas , metals and mining markets of approximately $ 29.8 million compared to the prior period . segment operating income decreased $ 17.8 million compared to the prior year primarily as a result of the impact of weakness in the oil and gas , metals and mining markets . electromagnetic clutches & brakes . net sales in the electromagnetic clutches & brakes segment were $ 217.9 million in the year ended december 31 , 2016 , a decrease of approximately $ 1.8 million , or 0.8 % , from the year ended december 31 , 2015. the impact of changes to foreign exchange rates primarily related to the chinese renminbi and british pound caused net sales to decrease by approximately $ 3.3 million compared to the prior year . segment operating income increased $ 4.8 million compared to the prior year primarily as a result of the impact of restructuring activities initiated during 2015 and early 2016. gearing . net sales in the gearing business segment were $ 192.0 million in the year ended december 31 , 2016 , compared with $ 192.3 million in the year ended december 31 , 2015 , a decrease of $ 0.3

