due to the lower levels in housing starts versus historical norms , increased competition for homebuilder business and cyclical fluctuations in commodity prices we have seen and may continue to experience pressure on our gross margins . in addition to these factors , there has been a trend of consolidation within the building products supply industry . however , our industry remains highly fragmented and competitive and we will continue to face significant competition from local and regional suppliers . we still believe there are several meaningful trends that indicate u.s. housing demand will continue to trend towards recovering to the historical average . these trends include relatively low interest rates , the aging of housing stock , and normal population growth due to immigration and birthrate exceeding death rate . while the rate of market growth has recently eased , industry forecasters , including the national association of homebuilders ( “ nahb ” ) , expect to see continued increases in housing demand over the next year . 24 targeting large product ion homebuilders . in recent years , the homebuilding industry has undergone consolidation , and the larger homebuilders have increased their market share . we expect that trend to continue as larger homebuilders have better liquidity and land positions relati ve to the smaller , less capitalized homebuilders . our focus is on maintaining relationships and market share with these customers while balancing the competitive pressures we are facing in servicing large homebuilders with certain profitability expectation s. additionally , we have been successful in expanding our custom homebuilder base while maintaining acceptable credit standards . repair and remodel end market . although the repair and remodel end market is influenced by housing starts to a lesser degree than the homebuilding market , the repair and remodel end market is still dependent upon some of the same factors as the homebuilding market , including demographic trends , interest rates , consumer confidence , employment rates , foreclosure rates , and the health of the economy and home financing markets . we expect that our ability to remain competitive in this space will depend on our continued ability to provide a high level of customer service coupled with a broad product offering . use of prefabricated components . homebuilders are increasingly using prefabricated components in order to realize increased efficiency , overcome skilled construction labor shortages and improve quality . shortening cycle time from start to completion is a key imperative of the homebuilders during periods of strong consumer demand . we see the demand for prefabricated components increasing as the residential new construction market continues to strengthen and the availability of skilled construction labor remains limited . economic conditions . economic changes both nationally and locally in our markets impact our financial performance . the building products supply industry is highly dependent upon new home construction and subject to cyclical market changes . our operations are subject to fluctuations arising from changes in supply and demand , national and local economic conditions , labor costs and availability , competition , government regulation , trade policies and other factors that affect the homebuilding industry such as demographic trends , interest rates , housing starts , the high cost of land development , employment levels , consumer confidence , and the availability of credit to homebuilders , contractors , and homeowners . housing affordability . the affordability of housing can be a key driver in demand for our products . home affordability is influenced by a number of economic factors , such as the level of employment , consumer confidence , consumer income , supply of houses , the availability of financing and interest rates . changes in the inventory of available homes as well as economic factors relative to home prices could result in changes to the affordability of homes . as a result , homebuyer demand may shift towards smaller , or larger , homes creating fluctuations in demand for our products . cost of materials . prices of wood products , which are subject to cyclical market fluctuations , may adversely impact operating income when prices rapidly rise or fall within a relatively short period of time . we purchase certain materials , including lumber products , which are then sold to customers as well as used as direct production inputs for our manufactured and prefabricated products . short-term changes in the cost of these materials , some of which are subject to significant fluctuations , are oftentimes passed on to our customers , but our pricing quotation periods may limit our ability to pass on such price changes . we may also be limited in our ability to pass on increases on in-bound freight costs on our products . our inability to pass on material price increases to our customers could adversely impact our operating results . controlling expenses . another important aspect of our strategy is controlling costs and striving to be the low-cost building materials supplier in the markets we serve . we pay close attention to managing our working capital and operating expenses . further , we pay careful attention to our logistics function and its effect on our shipping and handling costs multi-family and light commercial business . our primary focus has been , and continues to be , on single-family residential new construction and the repair and remodel end market . however , we will continue to identify opportunities for profitable growth in the multi-family and light commercial markets . capital structure : as a result of our historical growth through acquisitions , we have substantial indebtedness . we strive to optimize our capital structure to ensure that our financial needs are met in light of economic conditions , business activities , organic investments , opportunities for growth through acquisition and the overall risk characteristics of our underlying assets . we evaluate our capital structure on the basis of our leverage ratio as well as the factors described above . story_separator_special_tag the amounts reflected in the table above for operating leases represent future minimum lease payments under non-cancelable operating leases with an initial or remaining term in excess of one year at december 31 , 2018. purchase orders entered into in the ordinary course of business are excluded from the above table because they are payable within one year . amounts for which we are liable under purchase orders are reflected on our consolidated balance sheet as accounts payable and accrued liabilities . where it makes economic sense to do so , we plan to lease certain equipment during 2019 to support anticipated sales growth . these operating leases are not included in the table above . other cash obligations not reflected in the balance sheet in accordance with accounting principles generally accepted in the united states , commonly referred to as gaap , our operating leases are not recorded in our balance sheet . as described in note 2 to the consolidated financial statements included in item 8 of this annual report on form 10-k , effective january 1 , 2019 the company will adopt updated guidance issued by the fasb under the leases topic of the codification that will require us to recognize a lease liability in our balance sheet related to our operating lease obligations . the adoption of this guidance will have no impact to our remaining other finance obligations and capital lease obligations . in addition to the lease obligations included in the above table , we have residual value guarantees on certain equipment leases . under these leases we have the option of ( 1 ) purchasing the equipment at the end of the lease term , ( 2 ) arranging for the sale of the equipment to a third party , or ( 3 ) returning the equipment to the lessor to sell the equipment . if the sales proceeds in either case are less than the residual value , then we are required to reimburse the lessor for the deficiency up to a specified level as stated in each lease agreement . the guarantees under these leases for the residual values of equipment at the end of the respective operating lease periods approximated $ 5.7 million as of december 31 , 2018. based upon the expectation that none of these leased assets will have a residual value at the end of the lease term that is materially less than the value specified in the related operating lease agreement or that we will purchase the equipment at the end of the lease term , we do not believe it is probable that we will be required to fund any amounts under the terms of these guarantee arrangements . accordingly , no accruals have been recognized for these guarantees . in addition , the company is party to certain agreements related to its other finance obligations which commit the company to perform certain repairs and maintenance obligations under the leases in a specified manner and timeframe that generally will occur throughout the next year . critical accounting policies and estimates critical accounting policies are those that both are important to the accurate portrayal of a company 's financial condition and results , and require subjective or complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . in order to prepare financial statements that conform to gaap , we make estimates and assumptions that affect the amounts reported in our financial statements and accompanying notes . certain estimates are particularly sensitive due to their significance to the financial statements and the possibility that future events may be significantly different from our expectations . 32 we have identified the following accounting policy that requires us to mak e the most subjective or complex judgments in order to fairly present our consolidated financial position and results of operations . goodwill . goodwill represents the excess of the amount we paid to acquire businesses over the estimated fair value of tangible assets and identifiable intangible assets acquired , less liabilities assumed . at december 31 , 2018 , our goodwill balance was $ 740.4 million , representing 25.3 % of our total assets . we test goodwill for impairment in the fourth quarter of each year or at any other time when impairment indicators exist by comparing the estimated implied value of a reporting units ' goodwill to its book value . examples of such indicators that could cause us to test goodwill for impairment between annual tests include a significant change in the business climate , unexpected competition or a significant deterioration in market share . we may also consider market capitalization relative to our net assets . housing starts are a significant sales driver for us . if there is a significant decline or an expected decline in housing starts , this could adversely affect our expectations for a reporting unit and the value of that reporting unit . the process of evaluating goodwill for impairment involves the determination of the fair value of our reporting units . our reporting units are aligned with our nine geographic regions which are also determined to be our operating segments . in evaluating goodwill for impairment , the company first assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value . if it is concluded that it is not more likely than not that the fair value of the reporting unit is less than its carrying value , then no further testing of the goodwill is required . however , if we determine that it is more likely than not that the fair value of the reporting unit is less than its carrying amount , we perform a quantitative goodwill impairment test . this test identifies both the existence of and the amount of goodwill impairment by comparing the fair value

liquidity our liquidity at december 31 , 2018 was $ 595.5 million , which consists of net borrowing availability under the 2022 facility and cash on hand . we have substantial indebtedness following our recent acquisitions , which increased our interest expense and could have the effect of , among other things , reducing our flexibility to respond to changing business and economic conditions . from time to time , based on market conditions and other factors and subject to compliance with applicable laws and regulations , the company may repurchase or call the 2024 notes , repay debt , or otherwise enter into transactions regarding its capital structure . should the current industry conditions deteriorate or we pursue additional acquisitions , we may be required to raise additional funds through the sale of capital stock or debt in the public capital markets or in privately negotiated transactions . there can be no assurance that any of these financing options would be available on favorable terms , if at all . alternatives to help supplement our liquidity position could include , but are not limited to , idling or permanently closing additional facilities , adjusting our headcount in response to current business conditions , attempts to renegotiate leases , managing our working capital and or divesting of non-core businesses . there are no assurances that these steps would prove successful or materially improve our liquidity position . consolidated cash flows 2018 compared with 2017 cash provided by operating activities was $ 282.8 million and $ 178.5 million in 2018 and 2017 , respectively . the increase in cash provided by operations is due to increased sales and profitability as well as a $ 37.2 million decrease in cash interest payments during the year ended december 31 , 2018 compared to the prior year . working capital increased $ 92.2 million in 2018 compared to an increase of $ 93.9 million in 2017. the increase in working capital for the year ended december 31 , 2018 was largely due to the timing and value of both inventory purchases and cash paid to vendors during the year .


 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 our liquidity at december 31 , 2018 was $ 595.5 million , which consists of net borrowing availability under the 2022 facility and cash on hand . we have substantial indebtedness following our recent acquisitions , which increased our interest expense and could have the effect of , among other things , reducing our flexibility to respond to changing business and economic conditions . from time to time , based on market conditions and other factors and subject to compliance with applicable laws and regulations , the company may repurchase or call the 2024 notes , repay debt , or otherwise enter into transactions regarding its capital structure . should the current industry conditions deteriorate or we pursue additional acquisitions , we may be required to raise additional funds through the sale of capital stock or debt in the public capital markets or in privately negotiated transactions . there can be no assurance that any of these financing options would be available on favorable terms , if at all . alternatives to help supplement our liquidity position could include , but are not limited to , idling or permanently closing additional facilities , adjusting our headcount in response to current business conditions , attempts to renegotiate leases , managing our working capital and or divesting of non-core businesses . there are no assurances that these steps would prove successful or materially improve our liquidity position . consolidated cash flows 2018 compared with 2017 cash provided by operating activities was $ 282.8 million and $ 178.5 million in 2018 and 2017 , respectively . the increase in cash provided by operations is due to increased sales and profitability as well as a $ 37.2 million decrease in cash interest payments during the year ended december 31 , 2018 compared to the prior year . working capital increased $ 92.2 million in 2018 compared to an increase of $ 93.9 million in 2017. the increase in working capital for the year ended december 31 , 2018 was largely due to the timing and value of both inventory purchases and cash paid to vendors during the year .
```    
 Suspicious Activity Report : due to the lower levels in housing starts versus historical norms , increased competition for homebuilder business and cyclical fluctuations in commodity prices we have seen and may continue to experience pressure on our gross margins . in addition to these factors , there has been a trend of consolidation within the building products supply industry . however , our industry remains highly fragmented and competitive and we will continue to face significant competition from local and regional suppliers . we still believe there are several meaningful trends that indicate u.s. housing demand will continue to trend towards recovering to the historical average . these trends include relatively low interest rates , the aging of housing stock , and normal population growth due to immigration and birthrate exceeding death rate . while the rate of market growth has recently eased , industry forecasters , including the national association of homebuilders ( “ nahb ” ) , expect to see continued increases in housing demand over the next year . 24 targeting large product ion homebuilders . in recent years , the homebuilding industry has undergone consolidation , and the larger homebuilders have increased their market share . we expect that trend to continue as larger homebuilders have better liquidity and land positions relati ve to the smaller , less capitalized homebuilders . our focus is on maintaining relationships and market share with these customers while balancing the competitive pressures we are facing in servicing large homebuilders with certain profitability expectation s. additionally , we have been successful in expanding our custom homebuilder base while maintaining acceptable credit standards . repair and remodel end market . although the repair and remodel end market is influenced by housing starts to a lesser degree than the homebuilding market , the repair and remodel end market is still dependent upon some of the same factors as the homebuilding market , including demographic trends , interest rates , consumer confidence , employment rates , foreclosure rates , and the health of the economy and home financing markets . we expect that our ability to remain competitive in this space will depend on our continued ability to provide a high level of customer service coupled with a broad product offering . use of prefabricated components . homebuilders are increasingly using prefabricated components in order to realize increased efficiency , overcome skilled construction labor shortages and improve quality . shortening cycle time from start to completion is a key imperative of the homebuilders during periods of strong consumer demand . we see the demand for prefabricated components increasing as the residential new construction market continues to strengthen and the availability of skilled construction labor remains limited . economic conditions . economic changes both nationally and locally in our markets impact our financial performance . the building products supply industry is highly dependent upon new home construction and subject to cyclical market changes . our operations are subject to fluctuations arising from changes in supply and demand , national and local economic conditions , labor costs and availability , competition , government regulation , trade policies and other factors that affect the homebuilding industry such as demographic trends , interest rates , housing starts , the high cost of land development , employment levels , consumer confidence , and the availability of credit to homebuilders , contractors , and homeowners . housing affordability . the affordability of housing can be a key driver in demand for our products . home affordability is influenced by a number of economic factors , such as the level of employment , consumer confidence , consumer income , supply of houses , the availability of financing and interest rates . changes in the inventory of available homes as well as economic factors relative to home prices could result in changes to the affordability of homes . as a result , homebuyer demand may shift towards smaller , or larger , homes creating fluctuations in demand for our products . cost of materials . prices of wood products , which are subject to cyclical market fluctuations , may adversely impact operating income when prices rapidly rise or fall within a relatively short period of time . we purchase certain materials , including lumber products , which are then sold to customers as well as used as direct production inputs for our manufactured and prefabricated products . short-term changes in the cost of these materials , some of which are subject to significant fluctuations , are oftentimes passed on to our customers , but our pricing quotation periods may limit our ability to pass on such price changes . we may also be limited in our ability to pass on increases on in-bound freight costs on our products . our inability to pass on material price increases to our customers could adversely impact our operating results . controlling expenses . another important aspect of our strategy is controlling costs and striving to be the low-cost building materials supplier in the markets we serve . we pay close attention to managing our working capital and operating expenses . further , we pay careful attention to our logistics function and its effect on our shipping and handling costs multi-family and light commercial business . our primary focus has been , and continues to be , on single-family residential new construction and the repair and remodel end market . however , we will continue to identify opportunities for profitable growth in the multi-family and light commercial markets . capital structure : as a result of our historical growth through acquisitions , we have substantial indebtedness . we strive to optimize our capital structure to ensure that our financial needs are met in light of economic conditions , business activities , organic investments , opportunities for growth through acquisition and the overall risk characteristics of our underlying assets . we evaluate our capital structure on the basis of our leverage ratio as well as the factors described above . story_separator_special_tag the amounts reflected in the table above for operating leases represent future minimum lease payments under non-cancelable operating leases with an initial or remaining term in excess of one year at december 31 , 2018. purchase orders entered into in the ordinary course of business are excluded from the above table because they are payable within one year . amounts for which we are liable under purchase orders are reflected on our consolidated balance sheet as accounts payable and accrued liabilities . where it makes economic sense to do so , we plan to lease certain equipment during 2019 to support anticipated sales growth . these operating leases are not included in the table above . other cash obligations not reflected in the balance sheet in accordance with accounting principles generally accepted in the united states , commonly referred to as gaap , our operating leases are not recorded in our balance sheet . as described in note 2 to the consolidated financial statements included in item 8 of this annual report on form 10-k , effective january 1 , 2019 the company will adopt updated guidance issued by the fasb under the leases topic of the codification that will require us to recognize a lease liability in our balance sheet related to our operating lease obligations . the adoption of this guidance will have no impact to our remaining other finance obligations and capital lease obligations . in addition to the lease obligations included in the above table , we have residual value guarantees on certain equipment leases . under these leases we have the option of ( 1 ) purchasing the equipment at the end of the lease term , ( 2 ) arranging for the sale of the equipment to a third party , or ( 3 ) returning the equipment to the lessor to sell the equipment . if the sales proceeds in either case are less than the residual value , then we are required to reimburse the lessor for the deficiency up to a specified level as stated in each lease agreement . the guarantees under these leases for the residual values of equipment at the end of the respective operating lease periods approximated $ 5.7 million as of december 31 , 2018. based upon the expectation that none of these leased assets will have a residual value at the end of the lease term that is materially less than the value specified in the related operating lease agreement or that we will purchase the equipment at the end of the lease term , we do not believe it is probable that we will be required to fund any amounts under the terms of these guarantee arrangements . accordingly , no accruals have been recognized for these guarantees . in addition , the company is party to certain agreements related to its other finance obligations which commit the company to perform certain repairs and maintenance obligations under the leases in a specified manner and timeframe that generally will occur throughout the next year . critical accounting policies and estimates critical accounting policies are those that both are important to the accurate portrayal of a company 's financial condition and results , and require subjective or complex judgments , often as a result of the need to make estimates about the effect of matters that are inherently uncertain . in order to prepare financial statements that conform to gaap , we make estimates and assumptions that affect the amounts reported in our financial statements and accompanying notes . certain estimates are particularly sensitive due to their significance to the financial statements and the possibility that future events may be significantly different from our expectations . 32 we have identified the following accounting policy that requires us to mak e the most subjective or complex judgments in order to fairly present our consolidated financial position and results of operations . goodwill . goodwill represents the excess of the amount we paid to acquire businesses over the estimated fair value of tangible assets and identifiable intangible assets acquired , less liabilities assumed . at december 31 , 2018 , our goodwill balance was $ 740.4 million , representing 25.3 % of our total assets . we test goodwill for impairment in the fourth quarter of each year or at any other time when impairment indicators exist by comparing the estimated implied value of a reporting units ' goodwill to its book value . examples of such indicators that could cause us to test goodwill for impairment between annual tests include a significant change in the business climate , unexpected competition or a significant deterioration in market share . we may also consider market capitalization relative to our net assets . housing starts are a significant sales driver for us . if there is a significant decline or an expected decline in housing starts , this could adversely affect our expectations for a reporting unit and the value of that reporting unit . the process of evaluating goodwill for impairment involves the determination of the fair value of our reporting units . our reporting units are aligned with our nine geographic regions which are also determined to be our operating segments . in evaluating goodwill for impairment , the company first assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value . if it is concluded that it is not more likely than not that the fair value of the reporting unit is less than its carrying value , then no further testing of the goodwill is required . however , if we determine that it is more likely than not that the fair value of the reporting unit is less than its carrying amount , we perform a quantitative goodwill impairment test . this test identifies both the existence of and the amount of goodwill impairment by comparing the fair value

