the following discussion should be read in conjunction with the “ selected financial data ” in item 6 and our consolidated financial statements and the notes thereto in item 8 of this annual report on form 10-k. the forward-looking statements in this section and other parts of this report involve risks , uncertainties and other factors , including statements regarding our plans , objectives , goals , strategies , and financial performance . our actual results could differ materially from the results anticipated in these forward-looking statements as a result of factors set forth under the caption “ forward-looking statements ” and those set forth in item 1a of this annual report on form 10-k. overview business overview lancaster colony corporation is a manufacturer and marketer of specialty food products for the retail and foodservice channels . consistent with our current acquisition strategy , in november 2016 we acquired substantially all of the assets of angelic bakehouse , inc. ( “ angelic ” ) , a manufacturer and marketer of premium sprouted grain bakery products based near milwaukee , wisconsin . in march 2015 we acquired all of the issued and outstanding capital stock of flatout holdings , inc. ( “ flatout ” ) , a privately owned manufacturer and marketer of flatbread wraps and pizza crusts based in saline , michigan . these transactions are discussed in further detail in note 2 to the consolidated financial statements . part of our future growth may result from acquisitions . we continue to review potential acquisitions that we believe will complement our existing product lines , enhance our profitability and or offer good expansion opportunities in a manner that fits our overall strategic goals . currently our operations are organized into one reportable segment : “ specialty foods . ” our sales are predominately domestic . our business has the potential to achieve future growth in sales and profitability due to attributes such as : leading retail market positions in several product categories with a high-quality perception ; recognized innovation in retail products ; a broad customer base in both retail and foodservice accounts ; well-regarded culinary expertise among foodservice customers ; recognized leadership in foodservice product development ; experience in integrating complementary business acquisitions ; and historically strong cash flow generation that supports growth opportunities . our goal is to grow both retail and foodservice sales over time by : leveraging the strength of our retail brands to increase current product sales ; introducing new retail products and expanding distribution ; continuing to rely upon the strength of our reputation in foodservice product development and quality ; and pursuing acquisitions that meet our strategic criteria . in our retail channel , we utilize numerous branded products to support growth and maintain market competitiveness . we place great emphasis on our product innovation and development efforts to enhance growth by providing distinctive new products or extensions of our current product lines to meet the evolving needs and preferences of consumers . our foodservice sales primarily consist of products sold to restaurant chains , either directly or through distributors . over the long-term , we have experienced broad-based growth in our foodservice sales as we build on our strong reputation for product development and quality . we have made substantial capital investments to support our existing food operations and future growth opportunities . for example , in 2015 we completed a significant processing capacity expansion at our horse cave , kentucky dressing facility to help meet demand for our dressing products , and in 2018 we will be expanding processing and warehousing capacity at angelic to help meet anticipated growth of our sprouted grain bakery products . based on our current plans and expectations , we believe our capital expenditures for 2018 could total approximately $ 30 million . we anticipate we will be able to fund all of our capital needs in 2018 with cash generated from operations . 16 summary of 2017 results consolidated net sales reached a record $ 1,202 million during 2017 , increasing by 1 % as compared to prior-year net sales of $ 1,191 million , driven by higher retail net sales as partially offset by lower foodservice net sales . foodservice net sales were unfavorably impacted by deflationary pricing and our targeted business rationalization efforts . angelic was not material to our 2017 results . gross profit increased 6 % to $ 318.8 million from the prior-year total of $ 299.6 million . the increase resulted from overall lower raw-material costs , primarily for eggs in the first half of the fiscal year , and a more favorable sales mix , partially offset by higher retail trade spending and deflationary foodservice pricing . in 2017 , net income totaled $ 115.3 million , or $ 4.20 per diluted share , including the multiemployer pension after-tax charge of $ 11.5 million , or $ 0.42 per diluted share . net income totaled $ 121.8 million , or $ 4.44 per diluted share , in 2016 compared to $ 101.7 million , or $ 3.72 per diluted share , in 2015 . looking forward for 2018 , we expect volume-driven growth in our retail sales channel with support from upcoming new product introductions along with a full year of sales contribution from angelic . in the foodservice channel , despite an increasingly competitive business environment , we anticipate sales growth from our existing customer base in addition to the potential benefit from new business relationships , with modest impact from pricing . we will also continue to consider acquisition opportunities that are consistent with our growth strategy and represent good value or otherwise provide significant strategic benefits . story_separator_special_tag due to timing and the degree of the increase in egg costs , we lagged obtaining cost recovery during the first half of 2016 , but we had largely recovered such costs as we exited our third fiscal quarter . during the first half of 2017 , we experienced a deflationary pricing environment within our foodservice channel as the cost of eggs had retreated to historical prices , and we adjusted pricing charged to our foodservice customers to reflect the lower input cost of eggs and other key ingredients . consequently , while the deflationary pricing was more than offset by lower egg costs during the first half of 2017 , the deflationary pricing negatively impacted net sales growth from our foodservice channel during the period . during the second half of 2017 , the net impact of inflation was not significant , but some residual deflationary pricing did impact foodservice net sales and gross profit in the period . entering 2018 , under current market conditions , we foresee unfavorable material cost comparisons in the coming year , particularly in the first half of the year . we expect modest impact from pricing in 2018. although typically less notable , we are also exposed to the impacts of general inflation beyond material costs , especially in the areas of annual wage adjustments and benefit costs . over time , we attempt to minimize the exposure to such cost increases through greater manufacturing and distribution efficiencies , the improvement of work processes and strategic investments in plant equipment . 21 critical accounting policies and estimates this md & a discusses our consolidated financial statements , which have been prepared in accordance with u.s. generally accepted accounting principles . the preparation of these consolidated financial statements requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period . on an ongoing basis , we evaluate our estimates and judgments , including , but not limited to , those related to accounts receivable allowances , distribution costs , asset impairments and self-insurance reserves . we base our estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . historically , the aggregate differences , if any , between our estimates and actual amounts in any year have not had a significant impact on our consolidated financial statements . while a summary of our significant accounting policies can be found in note 1 to the consolidated financial statements , we believe the following critical accounting policies reflect those areas in which more significant judgments and estimates are used in the preparation of our consolidated financial statements . revenue recognition we recognize revenue upon transfer of title and risk of loss , provided that evidence of an arrangement exists , pricing is fixed or determinable , and collectability is probable . net sales are recorded net of estimated sales discounts , returns , trade promotions and certain other sales incentives , including coupon redemptions and rebates . receivables and related allowances we evaluate the adequacy of our allowances for customer deductions considering several factors including historical experience , specific trade programs and existing customer relationships . goodwill and other intangible assets goodwill is not amortized . it is evaluated annually at april 30 , by applying impairment testing procedures , as appropriate . other intangible assets are amortized on a straight-line basis over their estimated useful lives to selling , general and administrative expenses . we evaluate the future economic benefit of the recorded goodwill and other intangible assets when events or circumstances indicate potential recoverability concerns . carrying amounts are adjusted appropriately when determined to have been impaired . recent accounting pronouncements recent accounting pronouncements and their impact on our consolidated financial statements are disclosed in note 1 to the consolidated financial statements . forward-looking statements we desire to take advantage of the “ safe harbor ” provisions of the private securities litigation reform act of 1995 ( the “ pslra ” ) . this annual report on form 10-k contains various “ forward-looking statements ” within the meaning of the pslra and other applicable securities laws . such statements can be identified by the use of the forward-looking words “ anticipate , ” “ estimate , ” “ project , ” “ believe , ” “ intend , ” “ plan , ” “ expect , ” “ hope ” or similar words . these statements discuss future expectations ; contain projections regarding future developments , operations or financial conditions ; or state other forward-looking information . such statements are based upon assumptions and assessments made by us in light of our experience and perception of historical trends , current conditions , expected future developments and other factors we believe to be appropriate . these forward-looking statements involve various important risks , uncertainties and other factors that could cause our actual results to differ materially from those expressed in the forward-looking statements . actual results may differ as a result of factors over which we have no , or limited , control including , without limitation , the specific influences outlined below . management believes these forward-looking statements to be reasonable ; however , one should not place undue reliance on such statements that are based on current expectations . forward-looking statements speak only as of the date they are made , and we undertake no obligation to update such forward-looking statements , except as required by law . items which could impact these forward-looking statements include , but

cash flows replace_table_token_7_th cash provided by operating activities remains the primary source of financing for our internal growth . cash provided by operating activities in 2017 totaled $ 144.4 million , an increase of 1 % as compared with the 2016 total of $ 142.6 million , which increased 7 % from the 2015 total of $ 132.8 million . the 2017 increase reflected lower working capital requirements , primarily in accounts payable and accrued liabilities , an increase in deferred tax liabilities related to property and increases in noncash charges for depreciation and amortization and the noncash change in acquisition-related contingent consideration . these changes were largely offset by lower net income in 2017 , which included the one-time multiemployer pension charge . the increase in amortization and the change in acquisition-related contingent consideration were the result of the november 2016 acquisition of angelic . the 2016 increase was due to an increase in net income and depreciation and amortization as partially offset by higher working capital requirements . in general , the increased levels of working capital requirements in 2016 reflected higher sales volumes and the impact of our flatout acquisition . additionally , the changes in other current assets and accounts payable and accrued liabilities from 2015 to 2016 reflected the timing of estimated taxpayments and the favorable tax impact of the loss on sale of discontinued operations in prior years .


 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 replace_table_token_7_th cash provided by operating activities remains the primary source of financing for our internal growth . cash provided by operating activities in 2017 totaled $ 144.4 million , an increase of 1 % as compared with the 2016 total of $ 142.6 million , which increased 7 % from the 2015 total of $ 132.8 million . the 2017 increase reflected lower working capital requirements , primarily in accounts payable and accrued liabilities , an increase in deferred tax liabilities related to property and increases in noncash charges for depreciation and amortization and the noncash change in acquisition-related contingent consideration . these changes were largely offset by lower net income in 2017 , which included the one-time multiemployer pension charge . the increase in amortization and the change in acquisition-related contingent consideration were the result of the november 2016 acquisition of angelic . the 2016 increase was due to an increase in net income and depreciation and amortization as partially offset by higher working capital requirements . in general , the increased levels of working capital requirements in 2016 reflected higher sales volumes and the impact of our flatout acquisition . additionally , the changes in other current assets and accounts payable and accrued liabilities from 2015 to 2016 reflected the timing of estimated taxpayments and the favorable tax impact of the loss on sale of discontinued operations in prior years .
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 Suspicious Activity Report : the following discussion should be read in conjunction with the “ selected financial data ” in item 6 and our consolidated financial statements and the notes thereto in item 8 of this annual report on form 10-k. the forward-looking statements in this section and other parts of this report involve risks , uncertainties and other factors , including statements regarding our plans , objectives , goals , strategies , and financial performance . our actual results could differ materially from the results anticipated in these forward-looking statements as a result of factors set forth under the caption “ forward-looking statements ” and those set forth in item 1a of this annual report on form 10-k. overview business overview lancaster colony corporation is a manufacturer and marketer of specialty food products for the retail and foodservice channels . consistent with our current acquisition strategy , in november 2016 we acquired substantially all of the assets of angelic bakehouse , inc. ( “ angelic ” ) , a manufacturer and marketer of premium sprouted grain bakery products based near milwaukee , wisconsin . in march 2015 we acquired all of the issued and outstanding capital stock of flatout holdings , inc. ( “ flatout ” ) , a privately owned manufacturer and marketer of flatbread wraps and pizza crusts based in saline , michigan . these transactions are discussed in further detail in note 2 to the consolidated financial statements . part of our future growth may result from acquisitions . we continue to review potential acquisitions that we believe will complement our existing product lines , enhance our profitability and or offer good expansion opportunities in a manner that fits our overall strategic goals . currently our operations are organized into one reportable segment : “ specialty foods . ” our sales are predominately domestic . our business has the potential to achieve future growth in sales and profitability due to attributes such as : leading retail market positions in several product categories with a high-quality perception ; recognized innovation in retail products ; a broad customer base in both retail and foodservice accounts ; well-regarded culinary expertise among foodservice customers ; recognized leadership in foodservice product development ; experience in integrating complementary business acquisitions ; and historically strong cash flow generation that supports growth opportunities . our goal is to grow both retail and foodservice sales over time by : leveraging the strength of our retail brands to increase current product sales ; introducing new retail products and expanding distribution ; continuing to rely upon the strength of our reputation in foodservice product development and quality ; and pursuing acquisitions that meet our strategic criteria . in our retail channel , we utilize numerous branded products to support growth and maintain market competitiveness . we place great emphasis on our product innovation and development efforts to enhance growth by providing distinctive new products or extensions of our current product lines to meet the evolving needs and preferences of consumers . our foodservice sales primarily consist of products sold to restaurant chains , either directly or through distributors . over the long-term , we have experienced broad-based growth in our foodservice sales as we build on our strong reputation for product development and quality . we have made substantial capital investments to support our existing food operations and future growth opportunities . for example , in 2015 we completed a significant processing capacity expansion at our horse cave , kentucky dressing facility to help meet demand for our dressing products , and in 2018 we will be expanding processing and warehousing capacity at angelic to help meet anticipated growth of our sprouted grain bakery products . based on our current plans and expectations , we believe our capital expenditures for 2018 could total approximately $ 30 million . we anticipate we will be able to fund all of our capital needs in 2018 with cash generated from operations . 16 summary of 2017 results consolidated net sales reached a record $ 1,202 million during 2017 , increasing by 1 % as compared to prior-year net sales of $ 1,191 million , driven by higher retail net sales as partially offset by lower foodservice net sales . foodservice net sales were unfavorably impacted by deflationary pricing and our targeted business rationalization efforts . angelic was not material to our 2017 results . gross profit increased 6 % to $ 318.8 million from the prior-year total of $ 299.6 million . the increase resulted from overall lower raw-material costs , primarily for eggs in the first half of the fiscal year , and a more favorable sales mix , partially offset by higher retail trade spending and deflationary foodservice pricing . in 2017 , net income totaled $ 115.3 million , or $ 4.20 per diluted share , including the multiemployer pension after-tax charge of $ 11.5 million , or $ 0.42 per diluted share . net income totaled $ 121.8 million , or $ 4.44 per diluted share , in 2016 compared to $ 101.7 million , or $ 3.72 per diluted share , in 2015 . looking forward for 2018 , we expect volume-driven growth in our retail sales channel with support from upcoming new product introductions along with a full year of sales contribution from angelic . in the foodservice channel , despite an increasingly competitive business environment , we anticipate sales growth from our existing customer base in addition to the potential benefit from new business relationships , with modest impact from pricing . we will also continue to consider acquisition opportunities that are consistent with our growth strategy and represent good value or otherwise provide significant strategic benefits . story_separator_special_tag due to timing and the degree of the increase in egg costs , we lagged obtaining cost recovery during the first half of 2016 , but we had largely recovered such costs as we exited our third fiscal quarter . during the first half of 2017 , we experienced a deflationary pricing environment within our foodservice channel as the cost of eggs had retreated to historical prices , and we adjusted pricing charged to our foodservice customers to reflect the lower input cost of eggs and other key ingredients . consequently , while the deflationary pricing was more than offset by lower egg costs during the first half of 2017 , the deflationary pricing negatively impacted net sales growth from our foodservice channel during the period . during the second half of 2017 , the net impact of inflation was not significant , but some residual deflationary pricing did impact foodservice net sales and gross profit in the period . entering 2018 , under current market conditions , we foresee unfavorable material cost comparisons in the coming year , particularly in the first half of the year . we expect modest impact from pricing in 2018. although typically less notable , we are also exposed to the impacts of general inflation beyond material costs , especially in the areas of annual wage adjustments and benefit costs . over time , we attempt to minimize the exposure to such cost increases through greater manufacturing and distribution efficiencies , the improvement of work processes and strategic investments in plant equipment . 21 critical accounting policies and estimates this md & a discusses our consolidated financial statements , which have been prepared in accordance with u.s. generally accepted accounting principles . the preparation of these consolidated financial statements requires that we make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period . on an ongoing basis , we evaluate our estimates and judgments , including , but not limited to , those related to accounts receivable allowances , distribution costs , asset impairments and self-insurance reserves . we base our estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . historically , the aggregate differences , if any , between our estimates and actual amounts in any year have not had a significant impact on our consolidated financial statements . while a summary of our significant accounting policies can be found in note 1 to the consolidated financial statements , we believe the following critical accounting policies reflect those areas in which more significant judgments and estimates are used in the preparation of our consolidated financial statements . revenue recognition we recognize revenue upon transfer of title and risk of loss , provided that evidence of an arrangement exists , pricing is fixed or determinable , and collectability is probable . net sales are recorded net of estimated sales discounts , returns , trade promotions and certain other sales incentives , including coupon redemptions and rebates . receivables and related allowances we evaluate the adequacy of our allowances for customer deductions considering several factors including historical experience , specific trade programs and existing customer relationships . goodwill and other intangible assets goodwill is not amortized . it is evaluated annually at april 30 , by applying impairment testing procedures , as appropriate . other intangible assets are amortized on a straight-line basis over their estimated useful lives to selling , general and administrative expenses . we evaluate the future economic benefit of the recorded goodwill and other intangible assets when events or circumstances indicate potential recoverability concerns . carrying amounts are adjusted appropriately when determined to have been impaired . recent accounting pronouncements recent accounting pronouncements and their impact on our consolidated financial statements are disclosed in note 1 to the consolidated financial statements . forward-looking statements we desire to take advantage of the “ safe harbor ” provisions of the private securities litigation reform act of 1995 ( the “ pslra ” ) . this annual report on form 10-k contains various “ forward-looking statements ” within the meaning of the pslra and other applicable securities laws . such statements can be identified by the use of the forward-looking words “ anticipate , ” “ estimate , ” “ project , ” “ believe , ” “ intend , ” “ plan , ” “ expect , ” “ hope ” or similar words . these statements discuss future expectations ; contain projections regarding future developments , operations or financial conditions ; or state other forward-looking information . such statements are based upon assumptions and assessments made by us in light of our experience and perception of historical trends , current conditions , expected future developments and other factors we believe to be appropriate . these forward-looking statements involve various important risks , uncertainties and other factors that could cause our actual results to differ materially from those expressed in the forward-looking statements . actual results may differ as a result of factors over which we have no , or limited , control including , without limitation , the specific influences outlined below . management believes these forward-looking statements to be reasonable ; however , one should not place undue reliance on such statements that are based on current expectations . forward-looking statements speak only as of the date they are made , and we undertake no obligation to update such forward-looking statements , except as required by law . items which could impact these forward-looking statements include , but

