see note 5 in the notes to the consolidated financial statements for additional information . financial highlights net sales decreased $ 77 million , or 2.0 % , to $ 3,807 million in 2019 from $ 3,884 million in 2018. sales growth in our residential heating & cooling and commercial heating & cooling segments was offset by a sales decline in our refrigeration segment due to the sale of our australia , asia , and south america businesses in 2018 , and the sale of our kysor warren business in the first quarter of 2019 . 16 operating income in 2019 was $ 657 million compared to $ 510 million in 2018. the increase was primarily due to increased sales in our residential heating & cooling and commercial heating & cooling segments , sourcing and engineering-led cost reductions , and a larger gain from insurance proceeds received related to the marshalltown tornado . net income in 2019 increased to $ 409 million from $ 359 million in 2018. diluted earnings per share from continuing operations were $ 10.38 per share in 2019 compared to $ 8.77 per share in 2018. we generated $ 396 million of cash flow from operating activities in 2019 compared to $ 496 million in 2018. the decrease was primarily due to an increase in working capital . in 2019 , we returned $ 111 million to shareholders through dividend payments and we used $ 400 million to purchase 1.5 million shares of stock under our share repurchase plans . we also received $ 44 million in net proceeds from the sale of our kysor warren business . overview of results despite the impact of the tornado at our marshalltown facility , the residential heating & cooling segment performed well in 2019 , with a 3 % increase in net sales and a $ 65 million increase in segment profit compared to 2018 , including the insurance proceeds received for lost profits in 2019. our commercial heating & cooling segment also performed well in 2019 with a 5 % increase in net sales and an $ 8 million increase in segment profit compared to 2018. this segment 's results were driven by higher volumes and price and mix gains . sales in our refrigeration segment decreased 25 % and segment profit decreased $ 7 million compared to 2018 mostly due to the sale of our australia , asia , south america , and kysor warren businesses . on a consolidated basis , our gross profit margins decreased to 28.4 % in 2019 due primarily to unfavorable commodities , factory inefficiencies , and higher freight and distribution costs . these declines were partially offset by favorable price and mix , sourcing and engineering-led cost reductions across our business , and the divestiture of our kysor warren business which had lower margins . results of operations the following table provides a summary of our financial results , including information presented as a percentage of net sales ( dollars in millions ) : replace_table_token_3_th year ended december 31 , 2019 compared to year ended december 31 , 2018 - consolidated results net sales net sales decreased 2.0 % in 2019 compared to 2018 , driven by a 5 % decline related to the divestitures of our australia , asia , south america , and kysor warren businesses , partially offset by 1 % volume growth and 2 % from favorable price and mix combined . the increase in volume was primarily due to market growth in our residential heating & cooling and commercial heating & cooling segments , and the favorable price and mix combined was attributable to all three of our business segments . 17 gross profit gross profit margins for 2019 decreased 20 basis points ( “ bps ” ) to 28.4 % compared to 28.6 % in 2018. we saw margin decreases of 30 bps from higher commodity costs , 80 bps from higher freight and distribution costs , 70 bps from lower factory productivity , and 50 bps from other product costs . these decreases were offset by increases of 100 bps from favorable price and mix , 50 bps from sourcing and engineering-led cost reductions , and 60 bps from our divested australia , asia , south america , and kysor warren businesses which collectively had lower margins . selling , general and administrative expenses sg & a expenses decreased by $ 22 million in 2019 compared to 2018. as a percentage of net sales , sg & a expenses decreased 30 bps from 15.7 % to 15.4 % in the same periods . sg & a decreased primarily due to the sale of our divested australia , asia , south america , and kysor warren businesses . losses ( gains ) and other expenses , net losses ( gains ) and other expenses , net for 2019 and 2018 included the following ( in millions ) : replace_table_token_4_th the realized losses on settled futures contracts in 2019 were attributable to changes in commodity prices relative to our settled futures contract prices , as commodity prices have decreased in 2019 relative to 2018. additionally , the change in unrealized ( gains ) losses , net on unsettled futures contracts was due to higher commodity prices relative to the unsettled futures contract prices . for more information on our derivatives , see note 10 in the notes to the consolidated financial statements . foreign currency exchange gains increased in 2019 primarily due to strengthening in foreign exchange rates in our primary markets . the special legal contingency charges in 2019 relate to outstanding legal settlements . the asbestos-related litigation relates to known and estimated future asbestos matters . the environmental liabilities relate to estimated remediation costs for contamination at some of our facilities . refer to note 5 in the notes to the consolidated financial statements for more information on litigation , including the asbestos-related litigation , and the environmental liabilities . story_separator_special_tag these events of default include nonpayment of principal or other amounts , material inaccuracy of representations and warranties , breach of covenants , default on certain other indebtedness or receivables securitizations ( cross default ) , certain voluntary and involuntary bankruptcy events and the occurrence of a change in control . a cross default under our credit facility could occur if : we fail to pay any principal or interest when due on any other indebtedness or receivables securitization exceeding $ 75.0 million ; or we are in default in the performance of , or compliance with any term of any other indebtedness or receivables securitization in an aggregate principal amount exceeding $ 75.0 million , or any other condition exists which would give the holders the right to declare such indebtedness due and payable prior to its stated maturity . each of our major debt agreements contains provisions by which a default under one agreement causes a default in the others ( a cross default ) . if a cross default under our domestic credit facility , our senior unsecured notes , or our asp were to occur , it could have a wider impact on our liquidity than might otherwise occur from a default of a single debt instrument or lease commitment . if any event of default occurs and is continuing , the administrative agent , or lenders with a majority of the aggregate commitments may require the administrative agent to , terminate our right to borrow under our domestic credit facility and accelerate amounts due under our domestic credit facility ( except for a bankruptcy event of default , in which case such amounts will automatically become due and payable and the lenders ' commitments will automatically terminate ) . in the event of a credit rating downgrade below investment grade resulting from a change of control , holders of our senior unsecured notes will have the right to require us to repurchase all or a portion of the senior unsecured notes at a repurchase price equal to 101 % of the principal amount of the notes , plus accrued and unpaid interest , if any . the notes are guaranteed , on a senior unsecured basis , by each of our subsidiaries that guarantee payment by us of any indebtedness under our domestic credit facility . the indenture governing the notes contains covenants that , among other things , limit our ability and the ability of the subsidiary guarantors to : create or incur certain liens ; enter into certain sale and leaseback transactions ; enter into certain mergers , consolidations and transfers of substantially all of our assets ; and transfer certain properties . the indenture also contains a cross default provision which is triggered if we default on other debt of at least $ 75 million in principal which is then accelerated , and such acceleration is not rescinded within 30 days of the notice date . 26 as of december 31 , 2019 , we believe we were in compliance with all covenant requirements . delaware law limits the ability to pay dividends to surplus or , if there is no surplus , out of net profits for the fiscal year in which the dividend is declared and or the preceding fiscal year . in addition , stock repurchases can only be made out of surplus and only if our capital would not be impaired . leasing commitments refer to note 5 in the notes to the consolidated financial statements for more details on our leasing commitments . off balance sheet arrangements an off-balance sheet arrangement is any transaction , agreement or other contractual arrangement involving an unconsolidated entity under which the company has : ( 1 ) made guarantees , ( 2 ) a retained or a contingent interest in transferred assets , ( 3 ) an obligation under derivative instruments classified as equity or ( 4 ) any obligation arising out of a material variable interest in an unconsolidated entity that provides financing , liquidity , market risk or credit risk support to us , or that engages in leasing , hedging or research and development arrangements with us . we have no off-balance sheet arrangements that we believe may have a material current or future effect on our financial condition , liquidity or results of operations . contractual obligations summarized below are our contractual obligations as of december 31 , 2019 and their expected impact on our liquidity and cash flows in future periods ( in millions ) : replace_table_token_14_th ( 1 ) contractual obligations related to finance leases are included as part of long-term debt . ( 2 ) estimated interest payments are based on current contractual requirements and do not reflect seasonal changes in the balance of our domestic credit facility . ( 3 ) purchase obligations consist of inventory that is part of our third party logistics programs . the table above does not include pension , post-retirement benefit and warranty liabilities because it is not certain when these liabilities will be funded . for additional information regarding our contractual obligations , see note 5 of the notes to the consolidated financial statements . see note 11 of the notes to the consolidated financial statements for more information on our pension and post-retirement benefits obligations . fair value measurements fair value is the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date . fair value is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date and requires consideration of our creditworthiness when valuing certain liabilities . our framework for measuring fair value is based on a three-level hierarchy for fair value measurements . the three-level fair value hierarchy for disclosure of fair value measurements is defined as follows : level 1 - quoted prices for identical instruments

liquidity and capital resources our working capital and capital expenditure requirements are generally met through internally generated funds , bank lines of credit and an asset securitization arrangement . working capital needs are generally greater in the first and second quarters due to the seasonal nature of our business cycle . statement of cash flows the following table summarizes our cash flow activity for the years ended december 31 , 2019 , 2018 and 2017 ( in millions ) : replace_table_token_12_th net cash provided by operating activities - net cash provided by operating activities decreased $ 99 million to $ 396 million in 2019 compared to $ 496 million in 2018 . the decrease was primarily attributable to an increase in working capital partially offset by an increase in net income . net cash provided by ( used in ) investing activities - capital expenditures were $ 106 million , $ 95 million and $ 98 million in 2019 , 2018 and 2017 , respectively . capital expenditures in 2019 were primarily related to the reconstruction of the marshalltown facility , expansion of our manufacturing capacity and equipment and investments in systems and software to support the overall enterprise . we received net proceeds of $ 44 million in 2019 from the sale of our kysor warren business , and we received $ 80 million of insurance proceeds to fund the capital expenditures for the reconstruction of our marshalltown facility . net cash used in financing activities - net cash used in financing activities decreased to $ 423 million in 2019 from $ 538 million in 2018. the decrease is largely due to lower share repurchases in 2019 and an increase in borrowings from our debt facilities . during 2019 we repurchased $ 400 million of shares compared to $ 450 million of shares in 2018 . we also returned $ 111 million to shareholders through dividend payments . for additional information on share repurchases , refer to note 6 in the notes to the consolidated financial statements .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources our working capital and capital expenditure requirements are generally met through internally generated funds , bank lines of credit and an asset securitization arrangement . working capital needs are generally greater in the first and second quarters due to the seasonal nature of our business cycle . statement of cash flows the following table summarizes our cash flow activity for the years ended december 31 , 2019 , 2018 and 2017 ( in millions ) : replace_table_token_12_th net cash provided by operating activities - net cash provided by operating activities decreased $ 99 million to $ 396 million in 2019 compared to $ 496 million in 2018 . the decrease was primarily attributable to an increase in working capital partially offset by an increase in net income . net cash provided by ( used in ) investing activities - capital expenditures were $ 106 million , $ 95 million and $ 98 million in 2019 , 2018 and 2017 , respectively . capital expenditures in 2019 were primarily related to the reconstruction of the marshalltown facility , expansion of our manufacturing capacity and equipment and investments in systems and software to support the overall enterprise . we received net proceeds of $ 44 million in 2019 from the sale of our kysor warren business , and we received $ 80 million of insurance proceeds to fund the capital expenditures for the reconstruction of our marshalltown facility . net cash used in financing activities - net cash used in financing activities decreased to $ 423 million in 2019 from $ 538 million in 2018. the decrease is largely due to lower share repurchases in 2019 and an increase in borrowings from our debt facilities . during 2019 we repurchased $ 400 million of shares compared to $ 450 million of shares in 2018 . we also returned $ 111 million to shareholders through dividend payments . for additional information on share repurchases , refer to note 6 in the notes to the consolidated financial statements .
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 Suspicious Activity Report : see note 5 in the notes to the consolidated financial statements for additional information . financial highlights net sales decreased $ 77 million , or 2.0 % , to $ 3,807 million in 2019 from $ 3,884 million in 2018. sales growth in our residential heating & cooling and commercial heating & cooling segments was offset by a sales decline in our refrigeration segment due to the sale of our australia , asia , and south america businesses in 2018 , and the sale of our kysor warren business in the first quarter of 2019 . 16 operating income in 2019 was $ 657 million compared to $ 510 million in 2018. the increase was primarily due to increased sales in our residential heating & cooling and commercial heating & cooling segments , sourcing and engineering-led cost reductions , and a larger gain from insurance proceeds received related to the marshalltown tornado . net income in 2019 increased to $ 409 million from $ 359 million in 2018. diluted earnings per share from continuing operations were $ 10.38 per share in 2019 compared to $ 8.77 per share in 2018. we generated $ 396 million of cash flow from operating activities in 2019 compared to $ 496 million in 2018. the decrease was primarily due to an increase in working capital . in 2019 , we returned $ 111 million to shareholders through dividend payments and we used $ 400 million to purchase 1.5 million shares of stock under our share repurchase plans . we also received $ 44 million in net proceeds from the sale of our kysor warren business . overview of results despite the impact of the tornado at our marshalltown facility , the residential heating & cooling segment performed well in 2019 , with a 3 % increase in net sales and a $ 65 million increase in segment profit compared to 2018 , including the insurance proceeds received for lost profits in 2019. our commercial heating & cooling segment also performed well in 2019 with a 5 % increase in net sales and an $ 8 million increase in segment profit compared to 2018. this segment 's results were driven by higher volumes and price and mix gains . sales in our refrigeration segment decreased 25 % and segment profit decreased $ 7 million compared to 2018 mostly due to the sale of our australia , asia , south america , and kysor warren businesses . on a consolidated basis , our gross profit margins decreased to 28.4 % in 2019 due primarily to unfavorable commodities , factory inefficiencies , and higher freight and distribution costs . these declines were partially offset by favorable price and mix , sourcing and engineering-led cost reductions across our business , and the divestiture of our kysor warren business which had lower margins . results of operations the following table provides a summary of our financial results , including information presented as a percentage of net sales ( dollars in millions ) : replace_table_token_3_th year ended december 31 , 2019 compared to year ended december 31 , 2018 - consolidated results net sales net sales decreased 2.0 % in 2019 compared to 2018 , driven by a 5 % decline related to the divestitures of our australia , asia , south america , and kysor warren businesses , partially offset by 1 % volume growth and 2 % from favorable price and mix combined . the increase in volume was primarily due to market growth in our residential heating & cooling and commercial heating & cooling segments , and the favorable price and mix combined was attributable to all three of our business segments . 17 gross profit gross profit margins for 2019 decreased 20 basis points ( “ bps ” ) to 28.4 % compared to 28.6 % in 2018. we saw margin decreases of 30 bps from higher commodity costs , 80 bps from higher freight and distribution costs , 70 bps from lower factory productivity , and 50 bps from other product costs . these decreases were offset by increases of 100 bps from favorable price and mix , 50 bps from sourcing and engineering-led cost reductions , and 60 bps from our divested australia , asia , south america , and kysor warren businesses which collectively had lower margins . selling , general and administrative expenses sg & a expenses decreased by $ 22 million in 2019 compared to 2018. as a percentage of net sales , sg & a expenses decreased 30 bps from 15.7 % to 15.4 % in the same periods . sg & a decreased primarily due to the sale of our divested australia , asia , south america , and kysor warren businesses . losses ( gains ) and other expenses , net losses ( gains ) and other expenses , net for 2019 and 2018 included the following ( in millions ) : replace_table_token_4_th the realized losses on settled futures contracts in 2019 were attributable to changes in commodity prices relative to our settled futures contract prices , as commodity prices have decreased in 2019 relative to 2018. additionally , the change in unrealized ( gains ) losses , net on unsettled futures contracts was due to higher commodity prices relative to the unsettled futures contract prices . for more information on our derivatives , see note 10 in the notes to the consolidated financial statements . foreign currency exchange gains increased in 2019 primarily due to strengthening in foreign exchange rates in our primary markets . the special legal contingency charges in 2019 relate to outstanding legal settlements . the asbestos-related litigation relates to known and estimated future asbestos matters . the environmental liabilities relate to estimated remediation costs for contamination at some of our facilities . refer to note 5 in the notes to the consolidated financial statements for more information on litigation , including the asbestos-related litigation , and the environmental liabilities . story_separator_special_tag these events of default include nonpayment of principal or other amounts , material inaccuracy of representations and warranties , breach of covenants , default on certain other indebtedness or receivables securitizations ( cross default ) , certain voluntary and involuntary bankruptcy events and the occurrence of a change in control . a cross default under our credit facility could occur if : we fail to pay any principal or interest when due on any other indebtedness or receivables securitization exceeding $ 75.0 million ; or we are in default in the performance of , or compliance with any term of any other indebtedness or receivables securitization in an aggregate principal amount exceeding $ 75.0 million , or any other condition exists which would give the holders the right to declare such indebtedness due and payable prior to its stated maturity . each of our major debt agreements contains provisions by which a default under one agreement causes a default in the others ( a cross default ) . if a cross default under our domestic credit facility , our senior unsecured notes , or our asp were to occur , it could have a wider impact on our liquidity than might otherwise occur from a default of a single debt instrument or lease commitment . if any event of default occurs and is continuing , the administrative agent , or lenders with a majority of the aggregate commitments may require the administrative agent to , terminate our right to borrow under our domestic credit facility and accelerate amounts due under our domestic credit facility ( except for a bankruptcy event of default , in which case such amounts will automatically become due and payable and the lenders ' commitments will automatically terminate ) . in the event of a credit rating downgrade below investment grade resulting from a change of control , holders of our senior unsecured notes will have the right to require us to repurchase all or a portion of the senior unsecured notes at a repurchase price equal to 101 % of the principal amount of the notes , plus accrued and unpaid interest , if any . the notes are guaranteed , on a senior unsecured basis , by each of our subsidiaries that guarantee payment by us of any indebtedness under our domestic credit facility . the indenture governing the notes contains covenants that , among other things , limit our ability and the ability of the subsidiary guarantors to : create or incur certain liens ; enter into certain sale and leaseback transactions ; enter into certain mergers , consolidations and transfers of substantially all of our assets ; and transfer certain properties . the indenture also contains a cross default provision which is triggered if we default on other debt of at least $ 75 million in principal which is then accelerated , and such acceleration is not rescinded within 30 days of the notice date . 26 as of december 31 , 2019 , we believe we were in compliance with all covenant requirements . delaware law limits the ability to pay dividends to surplus or , if there is no surplus , out of net profits for the fiscal year in which the dividend is declared and or the preceding fiscal year . in addition , stock repurchases can only be made out of surplus and only if our capital would not be impaired . leasing commitments refer to note 5 in the notes to the consolidated financial statements for more details on our leasing commitments . off balance sheet arrangements an off-balance sheet arrangement is any transaction , agreement or other contractual arrangement involving an unconsolidated entity under which the company has : ( 1 ) made guarantees , ( 2 ) a retained or a contingent interest in transferred assets , ( 3 ) an obligation under derivative instruments classified as equity or ( 4 ) any obligation arising out of a material variable interest in an unconsolidated entity that provides financing , liquidity , market risk or credit risk support to us , or that engages in leasing , hedging or research and development arrangements with us . we have no off-balance sheet arrangements that we believe may have a material current or future effect on our financial condition , liquidity or results of operations . contractual obligations summarized below are our contractual obligations as of december 31 , 2019 and their expected impact on our liquidity and cash flows in future periods ( in millions ) : replace_table_token_14_th ( 1 ) contractual obligations related to finance leases are included as part of long-term debt . ( 2 ) estimated interest payments are based on current contractual requirements and do not reflect seasonal changes in the balance of our domestic credit facility . ( 3 ) purchase obligations consist of inventory that is part of our third party logistics programs . the table above does not include pension , post-retirement benefit and warranty liabilities because it is not certain when these liabilities will be funded . for additional information regarding our contractual obligations , see note 5 of the notes to the consolidated financial statements . see note 11 of the notes to the consolidated financial statements for more information on our pension and post-retirement benefits obligations . fair value measurements fair value is the price that would be received to sell an asset or the price paid to transfer a liability in an orderly transaction between market participants at the measurement date . fair value is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date and requires consideration of our creditworthiness when valuing certain liabilities . our framework for measuring fair value is based on a three-level hierarchy for fair value measurements . the three-level fair value hierarchy for disclosure of fair value measurements is defined as follows : level 1 - quoted prices for identical instruments

