our solutions include outsourcing the functions of procurement , inventory and warehouse management , logistics , point of issue technology , project management , business process and performance metrics reporting . these solutions allow us to leverage the infrastructure of our sap enterprise resource planning ( “ erp ” ) system and other technologies to streamline our customers ' purchasing process , from requisition to procurement to payment , by digitally managing workflow , improving approval routing and providing robust reporting functionality . we support land and offshore operations for all the major oil and gas producing regions around the world through our network of locations . our key markets , beyond north america , include latin america , the north sea , the middle east , asia pacific and the former soviet union ( “ fsu ” ) . products sold through our locations support greenfield expansion upstream capital projects , midstream infrastructure and transmission and mro consumables used in day-to-day production . we provide downstream energy and industrial products for petroleum refining , chemical processing , lng terminals , power generation utilities and industrial manufacturing operations and customer on-site locations . we stock or sell more than 300,000 skus through our branch network . our supplier network consists of thousands of vendors in approximately 40 countries . from our operations in over 20 countries , we sell to customers operating in approximately 80 countries . the supplies and equipment stocked by each of our branches is customized to meet varied and changing local customer demands . the breadth and scale of our offering enhances our value proposition to our customers , suppliers and shareholders . we employ advanced information technologies , including a common erp platform across most of our business , to provide complete procurement , materials management and logistics coordination to our customers around the globe . having a common erp platform allows immediate visibility into our inventory assets , operations and financials worldwide , enhancing decision making and efficiency . our revenue and operating results are related to the level of worldwide oil and gas drilling and production activities and the profitability and cash flow of oil and gas companies and drilling contractors , which in turn are affected by current and anticipated prices of oil and gas . oil and gas prices have been and are likely to continue to be volatile . see item 1a . “ risk factors . ” we conduct our operations through three business segments : united states , canada and international . see “ business—summary of reportable segments ” for a discussion of each of these business segments . 26 unless indicated otherwise , results of operations data are presented in accordanc e with accounting principles generally accepted in the united states ( “ gaap ” ) . in an effort to provide investors with additional information regarding our results as determined by gaap , we may disclose non-gaap financial measures . the primary non-gaap fina ncial measure we focus on is earnings before interest , taxes , depreciation and amortization , excluding other costs ( “ ebitda excluding other costs ” ) . this financial measure excludes the impact of certain amounts and is not calculated in accordance with gaap . see “ non-gaap financial measures and reconciliations ” in results of operations for an explanation of our use of non-gaap financial measures and reconciliations to the corresponding measures calculated in accordance with gaap . operating environment overview our results are dependent on , among other things , the level of worldwide oil and gas drilling and completions , well remediation activity , crude and natural gas prices , capital spending by oilfield service companies and drilling contractors , and the worldwide oil and gas inventory levels . key industry indicators for the past three years include the following : replace_table_token_3_th * averages for the years indicated . see sources on following page . 27 the following table details the u.s. , canadian , and international rig activity and west texas intermediate ( “ wti ” ) oil prices for the past nine quarters ended december 31 , 2018 : sources : rig count : baker hughes , inc. ( www.bhge.com ) ; west texas intermediate crude and natural gas prices : department of energy , energy information administration ( www.eia.doe.gov ) ; hot-rolled coil prices : american metal market steelbenchmarker hot roll coil usa ( www.amm.com ) . the worldwide average rig count increased 8.9 % ( from 2,030 to 2,211 ) and the u.s. increased 17.9 % ( from 875 to 1,032 ) in 2018 compared to 2017. the average price of west texas intermediate ( “ wti ” ) crude increased 27.6 % ( from $ 50.88 per barrel to $ 64.94 per barrel ) and natural gas prices increased 6.0 % ( from $ 2.99 per mmbtu to $ 3.17 per mmbtu ) in 2018 compared to 2017. the average price of hot-rolled coil increased 33.4 % ( from $ 620.10 per short ton to $ 827.25 per short ton ) in 2018 compared to 2017. u.s. rig count at february 1 , 2019 was 1,045 rigs , up 1.3 % compared to the 2018 average of 1,032 rigs . the price for wti crude was $ 51.79 per barrel at january 28 , 2019 , down 20.2 % from the 2018 average . the price for natural gas was $ 3.05 per mmbtu at january 28 , 2019 , down 3.8 % from the 2018 average . the price for hot-rolled coil was $ 731.20 per short ton at january 14 , 2019 , down 11.6 % from the 2018 average . 28 executive summary for the year ended december 31 , 2018 , the company generated net income of $ 52 million , or $ 0.47 per fully diluted share on $ 3,127 million in revenue . story_separator_special_tag story_separator_special_tag to $ 127 million in 2016. the decline in reconciling adjustments decreased mainly due to reductions in provisions for inventory and doubtful accounts in 2017 versus 2016. net changes in operating assets and liabilities , net of acquisitions , was a deficit of $ 135 million in 2017 compared to $ 342 million provided in 2016. the deficit was primarily due to increases of $ 110 million and $ 64 million , in inventories and receivables , respectively , as market conditions improved in 2017 , offset by an increase in accounts payable and accrued liabilities of $ 43 million . net cash provided by investing activities in 2017 was $ 8 million compared to net cash used in investing activities of $ 183 million in 2016. cash provided by investing activities in 2017 was primarily related to the proceeds from disposal of assets , and other for $ 16 million . net cash provided by financing activities served as the primary source of liquidity . net cash provided by financing activities for 2017 was $ 94 million related to net borrowings from the revolving credit facility , compared to $ 47 million used in financing activities in 2016 associated with net repayments under the revolving credit facility . effect of the change in exchange rates the effect of the change in exchange rates on cash flows was a decrease of $ 9 million and an increase of $ 5 million for the years ended december 31 , 2018 and 2017 , respectively . 35 capital spending we intend to pursue additional acquisition candidates , but the timing , size or success of any acquisition effort and the related potential capital commitments can not be predicted . we continue to expect to fund future cash acquisitions primarily with cash flow from operations and the usage of the available portion of the revolving credit facility . we expect capital expenditures for fiscal year 2019 to be approximately $ 20 million primarily related to purchases of property , plant and equipment . off-balance sheet arrangements we are often party to certain transactions that require off-balance sheet arrangements such as performance bonds , guarantees and operating leases for equipment that are not reflected in our consolidated balance sheets . these arrangements are made in our normal course of business and they are not reasonably likely to have a current or future material adverse effect on our financial condition , results of operations , liquidity or cash flows . contractual obligations the following table summarizes our aggregate contractual fixed and variable obligations as of december 31 , 2018 ( in millions ) : replace_table_token_8_th critical accounting policies and estimates in preparing the financial statements , we make assumptions , estimates and judgments that affect the amounts reported . we periodically evaluate our estimates and judgments that are most critical in nature , which are related to allowance for doubtful accounts , inventory reserves , goodwill , purchase price allocation of acquisitions , vendor consideration and income taxes . our estimates are based on historical experience and on our future expectations that we believe are reasonable . the combination of these factors forms the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results are likely to differ from our current estimates and those differences may be material . allowance for doubtful accounts we grant credit to our customers , which operate primarily in the energy industry . concentrations of credit risk are limited because we have a large number of geographically diverse customers , thus spreading trade credit risk . we control credit risk through credit evaluations , credit limits and monitoring procedures . we perform periodic credit evaluations of our customers ' financial condition and generally do not require collateral , but may require letters of credit for certain international sales . credit losses are provided for in the financial statements and changes in estimates can be material . allowances for doubtful accounts are determined based on a continuous process of assessing the company 's portfolio on an individual customer basis taking into account current market conditions and trends . this process consists of a thorough review of historical collection experience , current aging status of the customer accounts , and financial condition of the company 's customers . based on a review of these factors , the company will establish or adjust allowances for specific customers . at december 31 , 2018 and 2017 , allowance for doubtful accounts totaled $ 27 million and $ 29 million , or 5.3 % and 6.4 % of gross accounts receivable , respectively . inventory reserves inventories consist primarily of oilfield and industrial finished goods . inventories are stated at the lower of cost or net realizable value and using average cost methods . allowances for excess and obsolete inventories are determined based on the company 's historical usage of inventory on hand as well as its future expectations . the company 's estimated carrying value of inventory therefore depends upon demand driven by oil and gas spending activity , which depends in turn upon oil , gas and steel prices , the general outlook for economic growth worldwide , available financing for the company 's customers , political stability in major oil and gas producing areas , and the potential obsolescence of various inventory items we stock , among other factors . at december 31 , 2018 and 2017 , inventory reserves totaled $ 28 million and $ 40 million , or 4.4 % and 6.3 % of gross inventory , respectively . changes in our estimates can be material under different market conditions . 36 goodwill the company has $ 314 million of goodwill as of december 31 , 2018. generally accepted accounting principles require the company to test goodwill for impairment at least annually or more frequently whenever events or circumstances occur indicating that it might be impaired

liquidity and capital resources we assess liquidity in terms of our ability to generate cash to fund operating , investing and financing activities . we expect resources to be available to reinvest in existing businesses , strategic acquisitions and capital expenditures to meet short and long-term objectives . we believe that cash on hand , cash generated from expected results of operations and amounts available under our revolving credit facility will be sufficient to fund operations , anticipated working capital needs and other cash requirements , including capital expenditures . at december 31 , 2018 and 2017 , we had cash and cash equivalents of $ 116 million and $ 98 million , respectively . as of december 31 , 2018 , $ 95 million of our cash and cash equivalents was maintained in the accounts of our various foreign subsidiaries . historically , it has been the practice and intention of the company to indefinitely reinvest the earnings of its foreign subsidiaries in those operations . in light of the significant changes made by the tcja , the company will no longer be indefinitely reinvested with regard to its pre-2018 earnings in canada and the united kingdom . these earnings were subject to the tcja 's one-time transition tax and the future repatriation of these earnings will not result in additional income tax expense or foreign withholding taxes due to the company 's available tax attributes . no additional income taxes have been provided for other foreign earnings as these amounts continue to be indefinitely reinvested . the company makes a determination each period concerning its intent and ability to indefinitely reinvest the cash held by its foreign subsidiaries .


 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 we assess liquidity in terms of our ability to generate cash to fund operating , investing and financing activities . we expect resources to be available to reinvest in existing businesses , strategic acquisitions and capital expenditures to meet short and long-term objectives . we believe that cash on hand , cash generated from expected results of operations and amounts available under our revolving credit facility will be sufficient to fund operations , anticipated working capital needs and other cash requirements , including capital expenditures . at december 31 , 2018 and 2017 , we had cash and cash equivalents of $ 116 million and $ 98 million , respectively . as of december 31 , 2018 , $ 95 million of our cash and cash equivalents was maintained in the accounts of our various foreign subsidiaries . historically , it has been the practice and intention of the company to indefinitely reinvest the earnings of its foreign subsidiaries in those operations . in light of the significant changes made by the tcja , the company will no longer be indefinitely reinvested with regard to its pre-2018 earnings in canada and the united kingdom . these earnings were subject to the tcja 's one-time transition tax and the future repatriation of these earnings will not result in additional income tax expense or foreign withholding taxes due to the company 's available tax attributes . no additional income taxes have been provided for other foreign earnings as these amounts continue to be indefinitely reinvested . the company makes a determination each period concerning its intent and ability to indefinitely reinvest the cash held by its foreign subsidiaries .
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 Suspicious Activity Report : our solutions include outsourcing the functions of procurement , inventory and warehouse management , logistics , point of issue technology , project management , business process and performance metrics reporting . these solutions allow us to leverage the infrastructure of our sap enterprise resource planning ( “ erp ” ) system and other technologies to streamline our customers ' purchasing process , from requisition to procurement to payment , by digitally managing workflow , improving approval routing and providing robust reporting functionality . we support land and offshore operations for all the major oil and gas producing regions around the world through our network of locations . our key markets , beyond north america , include latin america , the north sea , the middle east , asia pacific and the former soviet union ( “ fsu ” ) . products sold through our locations support greenfield expansion upstream capital projects , midstream infrastructure and transmission and mro consumables used in day-to-day production . we provide downstream energy and industrial products for petroleum refining , chemical processing , lng terminals , power generation utilities and industrial manufacturing operations and customer on-site locations . we stock or sell more than 300,000 skus through our branch network . our supplier network consists of thousands of vendors in approximately 40 countries . from our operations in over 20 countries , we sell to customers operating in approximately 80 countries . the supplies and equipment stocked by each of our branches is customized to meet varied and changing local customer demands . the breadth and scale of our offering enhances our value proposition to our customers , suppliers and shareholders . we employ advanced information technologies , including a common erp platform across most of our business , to provide complete procurement , materials management and logistics coordination to our customers around the globe . having a common erp platform allows immediate visibility into our inventory assets , operations and financials worldwide , enhancing decision making and efficiency . our revenue and operating results are related to the level of worldwide oil and gas drilling and production activities and the profitability and cash flow of oil and gas companies and drilling contractors , which in turn are affected by current and anticipated prices of oil and gas . oil and gas prices have been and are likely to continue to be volatile . see item 1a . “ risk factors . ” we conduct our operations through three business segments : united states , canada and international . see “ business—summary of reportable segments ” for a discussion of each of these business segments . 26 unless indicated otherwise , results of operations data are presented in accordanc e with accounting principles generally accepted in the united states ( “ gaap ” ) . in an effort to provide investors with additional information regarding our results as determined by gaap , we may disclose non-gaap financial measures . the primary non-gaap fina ncial measure we focus on is earnings before interest , taxes , depreciation and amortization , excluding other costs ( “ ebitda excluding other costs ” ) . this financial measure excludes the impact of certain amounts and is not calculated in accordance with gaap . see “ non-gaap financial measures and reconciliations ” in results of operations for an explanation of our use of non-gaap financial measures and reconciliations to the corresponding measures calculated in accordance with gaap . operating environment overview our results are dependent on , among other things , the level of worldwide oil and gas drilling and completions , well remediation activity , crude and natural gas prices , capital spending by oilfield service companies and drilling contractors , and the worldwide oil and gas inventory levels . key industry indicators for the past three years include the following : replace_table_token_3_th * averages for the years indicated . see sources on following page . 27 the following table details the u.s. , canadian , and international rig activity and west texas intermediate ( “ wti ” ) oil prices for the past nine quarters ended december 31 , 2018 : sources : rig count : baker hughes , inc. ( www.bhge.com ) ; west texas intermediate crude and natural gas prices : department of energy , energy information administration ( www.eia.doe.gov ) ; hot-rolled coil prices : american metal market steelbenchmarker hot roll coil usa ( www.amm.com ) . the worldwide average rig count increased 8.9 % ( from 2,030 to 2,211 ) and the u.s. increased 17.9 % ( from 875 to 1,032 ) in 2018 compared to 2017. the average price of west texas intermediate ( “ wti ” ) crude increased 27.6 % ( from $ 50.88 per barrel to $ 64.94 per barrel ) and natural gas prices increased 6.0 % ( from $ 2.99 per mmbtu to $ 3.17 per mmbtu ) in 2018 compared to 2017. the average price of hot-rolled coil increased 33.4 % ( from $ 620.10 per short ton to $ 827.25 per short ton ) in 2018 compared to 2017. u.s. rig count at february 1 , 2019 was 1,045 rigs , up 1.3 % compared to the 2018 average of 1,032 rigs . the price for wti crude was $ 51.79 per barrel at january 28 , 2019 , down 20.2 % from the 2018 average . the price for natural gas was $ 3.05 per mmbtu at january 28 , 2019 , down 3.8 % from the 2018 average . the price for hot-rolled coil was $ 731.20 per short ton at january 14 , 2019 , down 11.6 % from the 2018 average . 28 executive summary for the year ended december 31 , 2018 , the company generated net income of $ 52 million , or $ 0.47 per fully diluted share on $ 3,127 million in revenue . story_separator_special_tag story_separator_special_tag to $ 127 million in 2016. the decline in reconciling adjustments decreased mainly due to reductions in provisions for inventory and doubtful accounts in 2017 versus 2016. net changes in operating assets and liabilities , net of acquisitions , was a deficit of $ 135 million in 2017 compared to $ 342 million provided in 2016. the deficit was primarily due to increases of $ 110 million and $ 64 million , in inventories and receivables , respectively , as market conditions improved in 2017 , offset by an increase in accounts payable and accrued liabilities of $ 43 million . net cash provided by investing activities in 2017 was $ 8 million compared to net cash used in investing activities of $ 183 million in 2016. cash provided by investing activities in 2017 was primarily related to the proceeds from disposal of assets , and other for $ 16 million . net cash provided by financing activities served as the primary source of liquidity . net cash provided by financing activities for 2017 was $ 94 million related to net borrowings from the revolving credit facility , compared to $ 47 million used in financing activities in 2016 associated with net repayments under the revolving credit facility . effect of the change in exchange rates the effect of the change in exchange rates on cash flows was a decrease of $ 9 million and an increase of $ 5 million for the years ended december 31 , 2018 and 2017 , respectively . 35 capital spending we intend to pursue additional acquisition candidates , but the timing , size or success of any acquisition effort and the related potential capital commitments can not be predicted . we continue to expect to fund future cash acquisitions primarily with cash flow from operations and the usage of the available portion of the revolving credit facility . we expect capital expenditures for fiscal year 2019 to be approximately $ 20 million primarily related to purchases of property , plant and equipment . off-balance sheet arrangements we are often party to certain transactions that require off-balance sheet arrangements such as performance bonds , guarantees and operating leases for equipment that are not reflected in our consolidated balance sheets . these arrangements are made in our normal course of business and they are not reasonably likely to have a current or future material adverse effect on our financial condition , results of operations , liquidity or cash flows . contractual obligations the following table summarizes our aggregate contractual fixed and variable obligations as of december 31 , 2018 ( in millions ) : replace_table_token_8_th critical accounting policies and estimates in preparing the financial statements , we make assumptions , estimates and judgments that affect the amounts reported . we periodically evaluate our estimates and judgments that are most critical in nature , which are related to allowance for doubtful accounts , inventory reserves , goodwill , purchase price allocation of acquisitions , vendor consideration and income taxes . our estimates are based on historical experience and on our future expectations that we believe are reasonable . the combination of these factors forms the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results are likely to differ from our current estimates and those differences may be material . allowance for doubtful accounts we grant credit to our customers , which operate primarily in the energy industry . concentrations of credit risk are limited because we have a large number of geographically diverse customers , thus spreading trade credit risk . we control credit risk through credit evaluations , credit limits and monitoring procedures . we perform periodic credit evaluations of our customers ' financial condition and generally do not require collateral , but may require letters of credit for certain international sales . credit losses are provided for in the financial statements and changes in estimates can be material . allowances for doubtful accounts are determined based on a continuous process of assessing the company 's portfolio on an individual customer basis taking into account current market conditions and trends . this process consists of a thorough review of historical collection experience , current aging status of the customer accounts , and financial condition of the company 's customers . based on a review of these factors , the company will establish or adjust allowances for specific customers . at december 31 , 2018 and 2017 , allowance for doubtful accounts totaled $ 27 million and $ 29 million , or 5.3 % and 6.4 % of gross accounts receivable , respectively . inventory reserves inventories consist primarily of oilfield and industrial finished goods . inventories are stated at the lower of cost or net realizable value and using average cost methods . allowances for excess and obsolete inventories are determined based on the company 's historical usage of inventory on hand as well as its future expectations . the company 's estimated carrying value of inventory therefore depends upon demand driven by oil and gas spending activity , which depends in turn upon oil , gas and steel prices , the general outlook for economic growth worldwide , available financing for the company 's customers , political stability in major oil and gas producing areas , and the potential obsolescence of various inventory items we stock , among other factors . at december 31 , 2018 and 2017 , inventory reserves totaled $ 28 million and $ 40 million , or 4.4 % and 6.3 % of gross inventory , respectively . changes in our estimates can be material under different market conditions . 36 goodwill the company has $ 314 million of goodwill as of december 31 , 2018. generally accepted accounting principles require the company to test goodwill for impairment at least annually or more frequently whenever events or circumstances occur indicating that it might be impaired

