· labor costs – labor costs in 2017 increased slightly both in dollar amount and as a percentage of sales , in spite of decreased sales in comparison to 2016. approximately one-third of bel 's total sales are generated from labor intensive magnetic products , which are primarily manufactured in the prc . wage rates in the prc , which are mandated by the government , now have higher minimum wage and overtime requirements . effective february 1 , 2018 , the prc issued an increase to the minimum wage in a region where one of bel 's factories is located . we anticipate this increase in minimum wage to result in higher labor costs of approximately $ 1.0 million - $ 1.4 million per year at this facility going forward . this and any future increases in minimum wage rates will have an unfavorable impact on bel 's profit margins . 19 return to index · restructuring – the company continues to implement restructuring programs to increase operational efficiencies . the company incurred $ 0.3 million of restructuring charges during 2017 , primarily related to the closure of its manufacturing facility in shanghai , prc and transition of those operations to other existing bel facilities which began in late 2016. additional restructuring efforts are expected to continue throughout 2018 as we realign our r & d resources dedicated to our power solutions and protection group . we are also in the process of transitioning our bcm product line from a third party factory in malaysia to an existing bel facility in the prc . we anticipate completing these two initiatives by the end of the third quarter of 2018 , with minimal restructuring costs incurred . annual savings of approximately $ 1.4 million are expected from these initiatives once fully implemented ( primarily within cost of sales ) . · impact of foreign currency – during 2017 , the company incurred foreign exchange losses of $ 2.8 million . since we are a u.s. domiciled company , we translate our foreign currency-denominated financial results into u.s. dollars . due to the changes in the value of foreign currencies relative to the u.s. dollar , translating our financial results and the revaluation of certain intercompany as well as third-party transactions to and from foreign currencies to u.s. dollars may result in a favorable or unfavorable impact to our consolidated statements of operations and cash flows . the company monitors changes in foreign currencies and may implement pricing actions to help mitigate the impact that changes in foreign currencies may have on its consolidated operating results . · effective tax rate – the company 's effective tax rate will fluctuate based on the geographic segment in which our pretax profits are earned . of the geographic segments in which we operate , the u.s. has the highest tax rates ; europe 's tax rates are generally lower than u.s. tax rates ; and asia has the lowest tax rates of the company 's three geographical segments . see note 9 , `` income taxes `` and the `` tax reform `` discussion below . · refinancing of credit facility - we successfully refinanced our credit facility during the fourth quarter of 2017 with several changes that will benefit the company in the near and long term . the new agreement provides more favorable pricing from an interest rate perspective ; it reduces mandatory payments over the next four years , giving us flexibility in how we choose to utilize our u.s. cash ; and it includes additional borrowing capacity under the revolver which can be used for future acquisitions . our top priority for 2018 is growing the company 's top line . overall , the company 's backlog increased to $ 146.5 million at december 31 , 2017 , which represents a 29 % increase from its level at december 31 , 2016. while we are unable to predict the effect that this increase will ultimately have on 2018 sales , it is a good barometer that we are well positioned for organic growth in future periods . in addition , our new credit facility , coupled with availability of foreign earnings provided for with the transition tax , will enable future acquisitions to be a key component of our growth strategy should appropriate opportunities arise . the preceding discussions represent forward-looking statements . see `` cautionary notice regarding forward-looking statements . `` summary by operating segment net sales to external customers by reportable operating segment for the years ended december 31 , 2017 , 2016 and 2015 were as follows ( dollars in thousands ) : replace_table_token_5_th net sales and income ( loss ) from operations by operating segment for the years ended december 31 , 2017 , 2016 and 2015 were as set forth in the following table ( dollars in thousands ) . segment net sales are attributed to individual segments based on the geographic source of the billing for such customer sales . 20 return to index replace_table_token_6_th the decline in north america sales in 2017 was primarily attributable to a $ 13.7 million reduction in sales of power solutions and protection products , of which $ 10.1 million related to lower sales from the previously-divested nps product line . north america segment sales were also impacted by a decline in sales of our modular plugs and cable assemblies within our stewart connector business where two major customers merged and in-sourced much of these products . this resulted in lower sales of $ 5.1 million during 2017 compared to 2016. these declines were partially offset by higher sales of our connectivity solutions products , driven by increased demand from our u.s. military customers and stronger sales through our distribution channels . story_separator_special_tag fluctuations of the u.s. dollar against other major currencies have not significantly affected our foreign operations as most sales continue to be denominated in u.s. dollars or currencies directly or indirectly linked to the u.s. dollar . most significant expenses , including raw materials , labor and manufacturing expenses , are incurred primarily in u.s. dollars or the chinese renminbi , and to a lesser extent in british pounds and mexican pesos . the chinese renminbi depreciated by approximately 2 % in 2017 as compared to 2016 and the mexican peso depreciated by 1 % in 2017 as compared to 2016 . to the extent the renminbi or peso appreciate in future periods , it could result in the company 's incurring higher costs for most expenses incurred in the prc and mexico . the company 's european entities , whose functional currencies are euros , british pounds and czech korunas , enter into transactions which include sales that are denominated principally in euros , british pounds and various other european currencies , and purchases that are denominated principally in u.s. dollars and british pounds . such transactions , as well as those related to our multi-currency intercompany payable and receivable transactions , resulted in net realized and unrealized currency exchange ( losses ) gains of ( $ 2.8 ) million , $ 3.1 million and $ 5.1 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively , which were included in sg & a expenses on the consolidated statements of operations . the currency exchange losses recorded in 2017 were primarily related to a u.s. denominated intercompany receivable balance on our swiss entity 's books . the currency exchange gains recorded in 2016 were primarily due to the favorable impact of the depreciation of the chinese renminbi and euro against the u.s. dollar . the currency exchange gains recorded in 2015 were primarily due to the favorable impact of the depreciation of the euro against the u.s. dollar on a $ 34 million multi-currency intercompany loan . this loan was settled by the end of 2015. translation of subsidiaries ' foreign currency financial statements into u.s. dollars resulted in translation adjustments , net of taxes , of $ 12.4 million , ( $ 9.7 ) million and ( $ 10.0 ) million for the years ended december 31 , 2017 , 2016 and 2015 , respectively , which are included in accumulated other comprehensive income ( loss ) on the consolidated balance sheets . liquidity and capital resources our primary sources of cash are the collection of trade receivables generated from the sales of our products and services to our customers and amounts available under our existing lines of credit , including our credit facility . our primary uses of cash are payments for operating expenses , investments in working capital , capital expenditures , interest , taxes , dividends , debt obligations and other long-term liabilities . we believe that our current liquidity position and future cash flows from operations will enable us to fund our operations , including all of the items mentioned above in the next twelve months . at december 31 , 2017 and 2016 , $ 50.5 million and $ 61.1 million , respectively ( or 73 % and 83 % , respectively ) , of cash and cash equivalents was held by foreign subsidiaries of the company . management is currently analyzing our global working capital and cash requirements and the potential tax liabilities attributable to repatriation , and we have yet to determine whether we plan to repatriate these funds outside the u.s. to fund the company 's u.s. operations in the future . in the event these funds were needed for bel 's u.s. operations , the company would be required to accrue and pay u.s. state taxes and any applicable foreign withholding taxes to repatriate these funds . see `` income taxes `` above for further details . in june 2014 , the company entered into a senior credit and security agreement , which was subsequently amended in march 2016 , and further amended and refinanced in december 2017 ( see note 10 , `` debt , `` for additional details ) . the credit and security agreement contains customary representations and warranties , covenants and events of default and financial covenants that measure ( i ) the ratio of the company 's total funded indebtedness , on a consolidated basis , to the amount of the company 's consolidated ebitda , as defined ( `` leverage ratio `` ) , and ( ii ) the ratio of the amount of the company 's consolidated ebitda to the company 's consolidated fixed charges ( `` fixed charge coverage ratio `` ) . if an event of default occurs , the lenders under the credit and security agreement would be entitled to take various actions , including the acceleration of amounts due thereunder and all actions permitted to be taken by a secured creditor . at december 31 , 2017 , the company was in compliance with its debt covenants , including its most restrictive covenant , the leverage ratio . the unused credit available under the credit facility at december 31 , 2017 was $ 75.0 million , of which we had the ability to borrow $ 34.1 million without violating our leverage ratio covenant based on the company 's existing consolidated ebitda . at december 31 , 2017 , the company had $ 125.0 million outstanding under its credit agreement . scheduled principal payments of the long-term debt outstanding are included in `` contractual obligations `` below and in note 10 , `` debt . `` for information regarding further commitments under the company 's operating leases , see note 16 , `` commitments and contingencies . `` we are currently engaged in a multi-year process of conforming the majority of our operations onto one global erp . the erp is designed to

cash flows during the year ended december 31 , 2017 , the company 's cash and cash equivalents decreased by $ 4.1 million . this decline was primarily due to repayments of long-term debt of $ 18.8 million , the purchase of property , plant and equipment of $ 6.4 million , $ 3.3 million for payments of dividends and payments of $ 2.0 million for deferred financing costs related to the refinancing of our credit facility during 2017. these cash outflows were partially offset by cash provided by operations of $ 24.1 million . cash provided by operations decreased by $ 14.5 million in 2017 as compared to 2016 , primarily due to higher year-end inventory levels and accounts receivable balances in 2017. during the year ended december 31 , 2016 , the company 's cash and cash equivalents decreased by $ 11.6 million . this decrease was primarily due to repayments of long-term debt of $ 43.4 million , the purchase of property , plant and equipment of $ 8.2 million and $ 3.2 million for payments of dividends . these cash outflows were partially offset by net cash provided by operations of $ 38.6 million and cash proceeds received from the sale of properties in hong kong and san diego of $ 5.8 million . cash provided by operating activities decreased by $ 27.2 million in 2016 as compared to 2015 , primarily due to lower earnings on the reduced sales volume in 2016 and an increase in year-end inventory levels in 2016. during the year ended december 31 , 2015 , the company 's cash and cash equivalents increased by $ 7.9 million . this resulted primarily from $ 65.8 million of cash provided by operating activities , including the impact of the changes in accounts receivable and inventories described below , proceeds of $ 9.0 million received from the nps sale and related transactions and $ 4.2 million received for an acquisition-related settlement payment during 2015.


 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 during the year ended december 31 , 2017 , the company 's cash and cash equivalents decreased by $ 4.1 million . this decline was primarily due to repayments of long-term debt of $ 18.8 million , the purchase of property , plant and equipment of $ 6.4 million , $ 3.3 million for payments of dividends and payments of $ 2.0 million for deferred financing costs related to the refinancing of our credit facility during 2017. these cash outflows were partially offset by cash provided by operations of $ 24.1 million . cash provided by operations decreased by $ 14.5 million in 2017 as compared to 2016 , primarily due to higher year-end inventory levels and accounts receivable balances in 2017. during the year ended december 31 , 2016 , the company 's cash and cash equivalents decreased by $ 11.6 million . this decrease was primarily due to repayments of long-term debt of $ 43.4 million , the purchase of property , plant and equipment of $ 8.2 million and $ 3.2 million for payments of dividends . these cash outflows were partially offset by net cash provided by operations of $ 38.6 million and cash proceeds received from the sale of properties in hong kong and san diego of $ 5.8 million . cash provided by operating activities decreased by $ 27.2 million in 2016 as compared to 2015 , primarily due to lower earnings on the reduced sales volume in 2016 and an increase in year-end inventory levels in 2016. during the year ended december 31 , 2015 , the company 's cash and cash equivalents increased by $ 7.9 million . this resulted primarily from $ 65.8 million of cash provided by operating activities , including the impact of the changes in accounts receivable and inventories described below , proceeds of $ 9.0 million received from the nps sale and related transactions and $ 4.2 million received for an acquisition-related settlement payment during 2015.
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 Suspicious Activity Report : · labor costs – labor costs in 2017 increased slightly both in dollar amount and as a percentage of sales , in spite of decreased sales in comparison to 2016. approximately one-third of bel 's total sales are generated from labor intensive magnetic products , which are primarily manufactured in the prc . wage rates in the prc , which are mandated by the government , now have higher minimum wage and overtime requirements . effective february 1 , 2018 , the prc issued an increase to the minimum wage in a region where one of bel 's factories is located . we anticipate this increase in minimum wage to result in higher labor costs of approximately $ 1.0 million - $ 1.4 million per year at this facility going forward . this and any future increases in minimum wage rates will have an unfavorable impact on bel 's profit margins . 19 return to index · restructuring – the company continues to implement restructuring programs to increase operational efficiencies . the company incurred $ 0.3 million of restructuring charges during 2017 , primarily related to the closure of its manufacturing facility in shanghai , prc and transition of those operations to other existing bel facilities which began in late 2016. additional restructuring efforts are expected to continue throughout 2018 as we realign our r & d resources dedicated to our power solutions and protection group . we are also in the process of transitioning our bcm product line from a third party factory in malaysia to an existing bel facility in the prc . we anticipate completing these two initiatives by the end of the third quarter of 2018 , with minimal restructuring costs incurred . annual savings of approximately $ 1.4 million are expected from these initiatives once fully implemented ( primarily within cost of sales ) . · impact of foreign currency – during 2017 , the company incurred foreign exchange losses of $ 2.8 million . since we are a u.s. domiciled company , we translate our foreign currency-denominated financial results into u.s. dollars . due to the changes in the value of foreign currencies relative to the u.s. dollar , translating our financial results and the revaluation of certain intercompany as well as third-party transactions to and from foreign currencies to u.s. dollars may result in a favorable or unfavorable impact to our consolidated statements of operations and cash flows . the company monitors changes in foreign currencies and may implement pricing actions to help mitigate the impact that changes in foreign currencies may have on its consolidated operating results . · effective tax rate – the company 's effective tax rate will fluctuate based on the geographic segment in which our pretax profits are earned . of the geographic segments in which we operate , the u.s. has the highest tax rates ; europe 's tax rates are generally lower than u.s. tax rates ; and asia has the lowest tax rates of the company 's three geographical segments . see note 9 , `` income taxes `` and the `` tax reform `` discussion below . · refinancing of credit facility - we successfully refinanced our credit facility during the fourth quarter of 2017 with several changes that will benefit the company in the near and long term . the new agreement provides more favorable pricing from an interest rate perspective ; it reduces mandatory payments over the next four years , giving us flexibility in how we choose to utilize our u.s. cash ; and it includes additional borrowing capacity under the revolver which can be used for future acquisitions . our top priority for 2018 is growing the company 's top line . overall , the company 's backlog increased to $ 146.5 million at december 31 , 2017 , which represents a 29 % increase from its level at december 31 , 2016. while we are unable to predict the effect that this increase will ultimately have on 2018 sales , it is a good barometer that we are well positioned for organic growth in future periods . in addition , our new credit facility , coupled with availability of foreign earnings provided for with the transition tax , will enable future acquisitions to be a key component of our growth strategy should appropriate opportunities arise . the preceding discussions represent forward-looking statements . see `` cautionary notice regarding forward-looking statements . `` summary by operating segment net sales to external customers by reportable operating segment for the years ended december 31 , 2017 , 2016 and 2015 were as follows ( dollars in thousands ) : replace_table_token_5_th net sales and income ( loss ) from operations by operating segment for the years ended december 31 , 2017 , 2016 and 2015 were as set forth in the following table ( dollars in thousands ) . segment net sales are attributed to individual segments based on the geographic source of the billing for such customer sales . 20 return to index replace_table_token_6_th the decline in north america sales in 2017 was primarily attributable to a $ 13.7 million reduction in sales of power solutions and protection products , of which $ 10.1 million related to lower sales from the previously-divested nps product line . north america segment sales were also impacted by a decline in sales of our modular plugs and cable assemblies within our stewart connector business where two major customers merged and in-sourced much of these products . this resulted in lower sales of $ 5.1 million during 2017 compared to 2016. these declines were partially offset by higher sales of our connectivity solutions products , driven by increased demand from our u.s. military customers and stronger sales through our distribution channels . story_separator_special_tag fluctuations of the u.s. dollar against other major currencies have not significantly affected our foreign operations as most sales continue to be denominated in u.s. dollars or currencies directly or indirectly linked to the u.s. dollar . most significant expenses , including raw materials , labor and manufacturing expenses , are incurred primarily in u.s. dollars or the chinese renminbi , and to a lesser extent in british pounds and mexican pesos . the chinese renminbi depreciated by approximately 2 % in 2017 as compared to 2016 and the mexican peso depreciated by 1 % in 2017 as compared to 2016 . to the extent the renminbi or peso appreciate in future periods , it could result in the company 's incurring higher costs for most expenses incurred in the prc and mexico . the company 's european entities , whose functional currencies are euros , british pounds and czech korunas , enter into transactions which include sales that are denominated principally in euros , british pounds and various other european currencies , and purchases that are denominated principally in u.s. dollars and british pounds . such transactions , as well as those related to our multi-currency intercompany payable and receivable transactions , resulted in net realized and unrealized currency exchange ( losses ) gains of ( $ 2.8 ) million , $ 3.1 million and $ 5.1 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively , which were included in sg & a expenses on the consolidated statements of operations . the currency exchange losses recorded in 2017 were primarily related to a u.s. denominated intercompany receivable balance on our swiss entity 's books . the currency exchange gains recorded in 2016 were primarily due to the favorable impact of the depreciation of the chinese renminbi and euro against the u.s. dollar . the currency exchange gains recorded in 2015 were primarily due to the favorable impact of the depreciation of the euro against the u.s. dollar on a $ 34 million multi-currency intercompany loan . this loan was settled by the end of 2015. translation of subsidiaries ' foreign currency financial statements into u.s. dollars resulted in translation adjustments , net of taxes , of $ 12.4 million , ( $ 9.7 ) million and ( $ 10.0 ) million for the years ended december 31 , 2017 , 2016 and 2015 , respectively , which are included in accumulated other comprehensive income ( loss ) on the consolidated balance sheets . liquidity and capital resources our primary sources of cash are the collection of trade receivables generated from the sales of our products and services to our customers and amounts available under our existing lines of credit , including our credit facility . our primary uses of cash are payments for operating expenses , investments in working capital , capital expenditures , interest , taxes , dividends , debt obligations and other long-term liabilities . we believe that our current liquidity position and future cash flows from operations will enable us to fund our operations , including all of the items mentioned above in the next twelve months . at december 31 , 2017 and 2016 , $ 50.5 million and $ 61.1 million , respectively ( or 73 % and 83 % , respectively ) , of cash and cash equivalents was held by foreign subsidiaries of the company . management is currently analyzing our global working capital and cash requirements and the potential tax liabilities attributable to repatriation , and we have yet to determine whether we plan to repatriate these funds outside the u.s. to fund the company 's u.s. operations in the future . in the event these funds were needed for bel 's u.s. operations , the company would be required to accrue and pay u.s. state taxes and any applicable foreign withholding taxes to repatriate these funds . see `` income taxes `` above for further details . in june 2014 , the company entered into a senior credit and security agreement , which was subsequently amended in march 2016 , and further amended and refinanced in december 2017 ( see note 10 , `` debt , `` for additional details ) . the credit and security agreement contains customary representations and warranties , covenants and events of default and financial covenants that measure ( i ) the ratio of the company 's total funded indebtedness , on a consolidated basis , to the amount of the company 's consolidated ebitda , as defined ( `` leverage ratio `` ) , and ( ii ) the ratio of the amount of the company 's consolidated ebitda to the company 's consolidated fixed charges ( `` fixed charge coverage ratio `` ) . if an event of default occurs , the lenders under the credit and security agreement would be entitled to take various actions , including the acceleration of amounts due thereunder and all actions permitted to be taken by a secured creditor . at december 31 , 2017 , the company was in compliance with its debt covenants , including its most restrictive covenant , the leverage ratio . the unused credit available under the credit facility at december 31 , 2017 was $ 75.0 million , of which we had the ability to borrow $ 34.1 million without violating our leverage ratio covenant based on the company 's existing consolidated ebitda . at december 31 , 2017 , the company had $ 125.0 million outstanding under its credit agreement . scheduled principal payments of the long-term debt outstanding are included in `` contractual obligations `` below and in note 10 , `` debt . `` for information regarding further commitments under the company 's operating leases , see note 16 , `` commitments and contingencies . `` we are currently engaged in a multi-year process of conforming the majority of our operations onto one global erp . the erp is designed to

