% increase in the number of homes delivered to 8,000 homes . the increase in the number of homes delivered was partly attributable to the acquisition of wade jurney homes in june 2018. the increase in homes delivered , offset by the decrease in our average sales price , resulted in an increase in our home sales revenues of 17.6 % to $ 2.5 billion . for the year ended december 31 , 2019 , we generated income before income tax of $ 132.6 million and net income of $ 113.0 million . subject to deteriorating market conditions , we believe our operations are well positioned for future growth as a result of the markets in which we operate , our product offerings which span the home buying segment , our focus on affordable price points , as well as current and future inventories of attractive land positions . as we have grown , we have continued to focus on maintaining prudent leverage , and , as a result , we believe we are well positioned to execute on our growth strategy in order to optimize our stockholder returns . we anticipate the homebuilding markets in each of our operating segments to continue to be tied to both the local economy and the macro-economic environment . accordingly , our net sales , home deliveries , and average sales price in future years could be negatively affected by economic conditions such as decreases in employment and median household incomes , as well as decreases in household formations and increasing supply of inventories . additionally , our results could be impacted by a decrease in home affordability as a result of price appreciation or increases in mortgage interest rates or tightening of mortgage lending standards . on june 14 , 2018 , we acquired the remaining 50 % ownership interest in wjh , llc for $ 37.5 million . wade jurney homes specializes in providing single family homes for first time buyers . on the acquisition date , wjh had operations in alabama , florida , georgia , north carolina and south carolina . the 2018 results of wjh are included in our financial statements from june 14 through december 31 , 2018 and consisted of $ 210.1 million in revenue related to 1,377 home deliveries . strategy our strategy is focused on increasing the returns on our inventory while generating strong profitability . in general , we are focused on the following initiatives :  maintaining a strong balance sheet and prudent use of leverage as we grow ;  offering products that appeal to a broad range of entry-level , move-up and , lifestyle homebuyers based on each local market in which we operate . given the significant increases in average home sales prices across our markets , we have continued to enhance our focus on offering affordable housing options in each of our homebuyer segments ;  maintaining a strong pipeline of future land holdings , including utilizing lot option contracts to manage our risk to land holdings ; 39  increasing our market share within our existing markets through organic growth and or acquisitions of other homebuilders already operating in the market ;  expanding into new markets that meet our underwriting criteria either through organic start-up operations or through acquisitions of existing homebuilders ; and  controlling costs , including costs of home sales revenue and selling and general administrative expenses , and generating efficiencies to achieve increased profitability . our operating strategy has resulted in growth in revenue and income before income taxes over the last five years , and we believe it will continue to produce positive results . our operating strategy will continue to evolve to market changes , and we can not provide any assurances that our strategies will continue to be successful . 40 the following table summarizes our results of operations for the years ended december 31 , 2019 and 2018. replace_table_token_2_th nm – not meaningful ( 1 ) this is a non-gaap financial measure and should not be used as a substitute for the company 's operating results prepared in accordance with gaap . see the reconciliations to the most comparable gaap measure and other information within our homebuilding gross margin section in this management 's discussion and analysis of financial condition and results of operations . an analysis of any non-gaap financial measure should be used in conjunction with results presented in accordance with gaap . ( 2 ) homebuilding gross margin percentage is inclusive of a $ 2.0 million inventory impairment included within inventory impairment and other on our consolidated statements of operations . see note 14 – fair value disclosures in the notes to the consolidated financial statements for further detail . ‎ 41 results of operations by segment replace_table_token_3_th west in our west segment , for the year ended december 31 , 2019 , our income before income tax increased by $ 4.6 million to $ 43.0 million . our income before income tax included no purchase accounting adjustments during the year ended december 31 , 2019 and $ 14.3 million during the year ended december 31 , 2018. during the year ended december 31 , 2019 , we delivered 1,029 homes with an average sales price of $ 519.3 thousand and generated $ 534.4 million in home sales revenue in the west . the decrease in average sales price of homes delivered was primarily due to our shift towards more affordable product offerings . ﻿ ﻿ mountain in our mountain segment , for the year ended december 31 , 2019 , our income before income tax increased by $ 0.2 million to $ 89.2 million , as compared to $ 89.0 million for the same period in 2018 , primarily due to nominal increases in number of homes delivered and average sales price of homes delivered . story_separator_special_tag replace_table_token_13_th for the year ended december 31 , 2019 , we recorded impairment charges on five communities totaling $ 2.0 million . during the years ended december 31 , 2018 and 2017 , we recorded impairment charges on one and five communities , respectively , of which the amounts were nominal . the impairment charges are included in inventory impairments and other in our consolidated statement of operations . warranties estimated future direct warranty costs are accrued and charged to cost of sales in the period when the related homebuilding revenues are recognized . amounts accrued , which are included in accrued expenses and other liabilities on the consolidated balance sheet , are based upon historical experience rates . we subsequently assess the adequacy of our warranty accrual on a quarterly basis through an internally developed analysis that incorporates historical payment trends and adjust the amounts recorded if necessary . mortgage loans held for sale mortgage loans held-for-sale , including the rights to service the mortgage loans , as well as the derivative instrument used to economically hedge our interest rate risk , which are typically forward commitments on mortgage backed securities , are carried at fair value and changes in fair value are reflected in financial services revenue on the consolidated statement of operations . management believes carrying loans held-for-sale at fair value improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments used to economically hedge them . our net gains on the sale of mortgage loans were $ 32.2 million , $ 22.0 million and $ 5.8 million for the years ended december 31 , 2019 , 2018 , and 2017 , respectively , and are included in the financial services revenue on the consolidated statements of operations . stock-based compensation we estimate the grant date fair value of stock-based compensation awards and recognize the fair value as compensation costs over the requisite service period , which is generally three years , for all awards that vest . we value the fair value our restricted stock awards and restricted stock units equal to the closing price of our common stock on the new york stock exchange on the date of grant . stock-based compensation expense associated with outstanding performance share units is measured using the grant date fair value and is based on the estimated achievement of the established performance criteria at the end of each reporting period until the performance period ends , recognized on a straight-line basis over the performance period . stock-based compensation expense is only recognized for performance share units that we expect to vest , which we estimate based upon an assessment of the probability that the performance criteria will be achieved . the performance share units granted during the fiscal years ended december 31 , 2019 and 2018 have a three-year performance-based metric measured over performance periods from january 1 , 2019 to december 31 , 2021 and from january 1 , 2018 to december 31 , 2020 , respectively . stock-based compensation expense associated with outstanding performance share units is updated for actual forfeitures . income taxes we account for income taxes in accordance with asc 740 , income taxes , which requires recognition of deferred tax assets and liabilities at enacted income tax rates for the temporary differences between the financial reporting bases and the tax bases of its assets and liabilities . any effects of changes in income tax rates or tax laws are included in the provision for income taxes in the period of enactment . when it is more likely than not that a portion or all of a deferred tax asset will not be realized in the future , we provide a corresponding valuation allowance against the deferred tax asset . in addition , when it is more likely than not that a tax position will be sustained upon examination by a tax authority that has full knowledge of all relevant information , we measure the amount of tax benefit from the position and record the largest amount of tax benefit that is more likely than not of being realized after settlement with a tax authority . our policy is to recognize interest to be paid on an underpayment of income taxes in interest expense and any related statutory penalties in the provision for income taxes on our consolidated statements of operations . 48 goodwill we evaluate goodwill for possible impairment in accordance with accounting standards codification ( which we refer to as “ asc ” ) topic 350 , intangibles–goodwill and other , on an annual basis , or more frequently if events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable . we use a three step process to assess whether or not goodwill can be realized . the first step is a qualitative assessment that analyzes current economic indicators associated with a particular reporting unit . for example , we analyze changes in economic , market and industry conditions , business strategy , cost factors , and financial performance , among others , to determine if there would be a significant decline in the fair value of a particular reporting unit . if the qualitative assessment indicates a stable or improved fair value , no further testing is required . if a qualitative assessment indicates that a significant decline to fair value of a reporting unit is more likely than not , or if a reporting unit 's fair value has historically been closer to its carrying value , we will proceed to the second step where we calculate the fair value of a reporting unit based on discounted future cash flows . if this step indicates that the carrying value of a reporting unit is in excess of its fair value , we will proceed to the third step where the fair value of the reporting unit will be allocated to assets

liquidity and capital resources overview our principal uses of capital for the year ended december 31 , 2019 were our land purchases , land development , home construction , and the payment of routine liabilities . we use funds generated by operations , available borrowings under our revolving credit facility , and proceeds from sales of common stock , including our current at-the-market facility , to fund our short term working capital obligations and fund our purchases of land , as well as land development and home construction activities . cash flows for each of our communities depend on the stage in the development cycle , and can differ substantially from reported earnings . early stages of development or expansion require significant cash outlays for land acquisitions , entitlements and other approvals , and construction of model homes , roads , utilities , general landscaping and other amenities . because these costs are a component of our inventory and not recognized in our statements of operations until a home closes , we incur significant cash outlays prior to our recognition of earnings . in the later stages of community development , cash inflows may significantly exceed earnings reported for financial statement purposes , as the cash outflow associated with home and land construction was previously incurred . from a liquidity standpoint , we are actively acquiring and developing lots in our markets to maintain and grow our lot supply and active selling communities . as we continue to expand our business , we expect that our cash outlays for land purchases and land development to grow our lot inventory will continue to exceed our cash generated by operations . our financial services operations use funds generated from operations , and availability under our mortgage repurchase facilities to finance its operations including originations of mortgage loans to our homebuyers . under our shelf registration statement , which we filed with the sec in july 2018 and was automatically effective upon filing , we have the ability to access the debt and equity capital markets in an aggregate offering amount of up to $ 869 million , as needed as part of our ongoing financing strategy and subject to market conditions .


 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 overview our principal uses of capital for the year ended december 31 , 2019 were our land purchases , land development , home construction , and the payment of routine liabilities . we use funds generated by operations , available borrowings under our revolving credit facility , and proceeds from sales of common stock , including our current at-the-market facility , to fund our short term working capital obligations and fund our purchases of land , as well as land development and home construction activities . cash flows for each of our communities depend on the stage in the development cycle , and can differ substantially from reported earnings . early stages of development or expansion require significant cash outlays for land acquisitions , entitlements and other approvals , and construction of model homes , roads , utilities , general landscaping and other amenities . because these costs are a component of our inventory and not recognized in our statements of operations until a home closes , we incur significant cash outlays prior to our recognition of earnings . in the later stages of community development , cash inflows may significantly exceed earnings reported for financial statement purposes , as the cash outflow associated with home and land construction was previously incurred . from a liquidity standpoint , we are actively acquiring and developing lots in our markets to maintain and grow our lot supply and active selling communities . as we continue to expand our business , we expect that our cash outlays for land purchases and land development to grow our lot inventory will continue to exceed our cash generated by operations . our financial services operations use funds generated from operations , and availability under our mortgage repurchase facilities to finance its operations including originations of mortgage loans to our homebuyers . under our shelf registration statement , which we filed with the sec in july 2018 and was automatically effective upon filing , we have the ability to access the debt and equity capital markets in an aggregate offering amount of up to $ 869 million , as needed as part of our ongoing financing strategy and subject to market conditions .
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 Suspicious Activity Report : % increase in the number of homes delivered to 8,000 homes . the increase in the number of homes delivered was partly attributable to the acquisition of wade jurney homes in june 2018. the increase in homes delivered , offset by the decrease in our average sales price , resulted in an increase in our home sales revenues of 17.6 % to $ 2.5 billion . for the year ended december 31 , 2019 , we generated income before income tax of $ 132.6 million and net income of $ 113.0 million . subject to deteriorating market conditions , we believe our operations are well positioned for future growth as a result of the markets in which we operate , our product offerings which span the home buying segment , our focus on affordable price points , as well as current and future inventories of attractive land positions . as we have grown , we have continued to focus on maintaining prudent leverage , and , as a result , we believe we are well positioned to execute on our growth strategy in order to optimize our stockholder returns . we anticipate the homebuilding markets in each of our operating segments to continue to be tied to both the local economy and the macro-economic environment . accordingly , our net sales , home deliveries , and average sales price in future years could be negatively affected by economic conditions such as decreases in employment and median household incomes , as well as decreases in household formations and increasing supply of inventories . additionally , our results could be impacted by a decrease in home affordability as a result of price appreciation or increases in mortgage interest rates or tightening of mortgage lending standards . on june 14 , 2018 , we acquired the remaining 50 % ownership interest in wjh , llc for $ 37.5 million . wade jurney homes specializes in providing single family homes for first time buyers . on the acquisition date , wjh had operations in alabama , florida , georgia , north carolina and south carolina . the 2018 results of wjh are included in our financial statements from june 14 through december 31 , 2018 and consisted of $ 210.1 million in revenue related to 1,377 home deliveries . strategy our strategy is focused on increasing the returns on our inventory while generating strong profitability . in general , we are focused on the following initiatives :  maintaining a strong balance sheet and prudent use of leverage as we grow ;  offering products that appeal to a broad range of entry-level , move-up and , lifestyle homebuyers based on each local market in which we operate . given the significant increases in average home sales prices across our markets , we have continued to enhance our focus on offering affordable housing options in each of our homebuyer segments ;  maintaining a strong pipeline of future land holdings , including utilizing lot option contracts to manage our risk to land holdings ; 39  increasing our market share within our existing markets through organic growth and or acquisitions of other homebuilders already operating in the market ;  expanding into new markets that meet our underwriting criteria either through organic start-up operations or through acquisitions of existing homebuilders ; and  controlling costs , including costs of home sales revenue and selling and general administrative expenses , and generating efficiencies to achieve increased profitability . our operating strategy has resulted in growth in revenue and income before income taxes over the last five years , and we believe it will continue to produce positive results . our operating strategy will continue to evolve to market changes , and we can not provide any assurances that our strategies will continue to be successful . 40 the following table summarizes our results of operations for the years ended december 31 , 2019 and 2018. replace_table_token_2_th nm – not meaningful ( 1 ) this is a non-gaap financial measure and should not be used as a substitute for the company 's operating results prepared in accordance with gaap . see the reconciliations to the most comparable gaap measure and other information within our homebuilding gross margin section in this management 's discussion and analysis of financial condition and results of operations . an analysis of any non-gaap financial measure should be used in conjunction with results presented in accordance with gaap . ( 2 ) homebuilding gross margin percentage is inclusive of a $ 2.0 million inventory impairment included within inventory impairment and other on our consolidated statements of operations . see note 14 – fair value disclosures in the notes to the consolidated financial statements for further detail . ‎ 41 results of operations by segment replace_table_token_3_th west in our west segment , for the year ended december 31 , 2019 , our income before income tax increased by $ 4.6 million to $ 43.0 million . our income before income tax included no purchase accounting adjustments during the year ended december 31 , 2019 and $ 14.3 million during the year ended december 31 , 2018. during the year ended december 31 , 2019 , we delivered 1,029 homes with an average sales price of $ 519.3 thousand and generated $ 534.4 million in home sales revenue in the west . the decrease in average sales price of homes delivered was primarily due to our shift towards more affordable product offerings . ﻿ ﻿ mountain in our mountain segment , for the year ended december 31 , 2019 , our income before income tax increased by $ 0.2 million to $ 89.2 million , as compared to $ 89.0 million for the same period in 2018 , primarily due to nominal increases in number of homes delivered and average sales price of homes delivered . story_separator_special_tag replace_table_token_13_th for the year ended december 31 , 2019 , we recorded impairment charges on five communities totaling $ 2.0 million . during the years ended december 31 , 2018 and 2017 , we recorded impairment charges on one and five communities , respectively , of which the amounts were nominal . the impairment charges are included in inventory impairments and other in our consolidated statement of operations . warranties estimated future direct warranty costs are accrued and charged to cost of sales in the period when the related homebuilding revenues are recognized . amounts accrued , which are included in accrued expenses and other liabilities on the consolidated balance sheet , are based upon historical experience rates . we subsequently assess the adequacy of our warranty accrual on a quarterly basis through an internally developed analysis that incorporates historical payment trends and adjust the amounts recorded if necessary . mortgage loans held for sale mortgage loans held-for-sale , including the rights to service the mortgage loans , as well as the derivative instrument used to economically hedge our interest rate risk , which are typically forward commitments on mortgage backed securities , are carried at fair value and changes in fair value are reflected in financial services revenue on the consolidated statement of operations . management believes carrying loans held-for-sale at fair value improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments used to economically hedge them . our net gains on the sale of mortgage loans were $ 32.2 million , $ 22.0 million and $ 5.8 million for the years ended december 31 , 2019 , 2018 , and 2017 , respectively , and are included in the financial services revenue on the consolidated statements of operations . stock-based compensation we estimate the grant date fair value of stock-based compensation awards and recognize the fair value as compensation costs over the requisite service period , which is generally three years , for all awards that vest . we value the fair value our restricted stock awards and restricted stock units equal to the closing price of our common stock on the new york stock exchange on the date of grant . stock-based compensation expense associated with outstanding performance share units is measured using the grant date fair value and is based on the estimated achievement of the established performance criteria at the end of each reporting period until the performance period ends , recognized on a straight-line basis over the performance period . stock-based compensation expense is only recognized for performance share units that we expect to vest , which we estimate based upon an assessment of the probability that the performance criteria will be achieved . the performance share units granted during the fiscal years ended december 31 , 2019 and 2018 have a three-year performance-based metric measured over performance periods from january 1 , 2019 to december 31 , 2021 and from january 1 , 2018 to december 31 , 2020 , respectively . stock-based compensation expense associated with outstanding performance share units is updated for actual forfeitures . income taxes we account for income taxes in accordance with asc 740 , income taxes , which requires recognition of deferred tax assets and liabilities at enacted income tax rates for the temporary differences between the financial reporting bases and the tax bases of its assets and liabilities . any effects of changes in income tax rates or tax laws are included in the provision for income taxes in the period of enactment . when it is more likely than not that a portion or all of a deferred tax asset will not be realized in the future , we provide a corresponding valuation allowance against the deferred tax asset . in addition , when it is more likely than not that a tax position will be sustained upon examination by a tax authority that has full knowledge of all relevant information , we measure the amount of tax benefit from the position and record the largest amount of tax benefit that is more likely than not of being realized after settlement with a tax authority . our policy is to recognize interest to be paid on an underpayment of income taxes in interest expense and any related statutory penalties in the provision for income taxes on our consolidated statements of operations . 48 goodwill we evaluate goodwill for possible impairment in accordance with accounting standards codification ( which we refer to as “ asc ” ) topic 350 , intangibles–goodwill and other , on an annual basis , or more frequently if events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable . we use a three step process to assess whether or not goodwill can be realized . the first step is a qualitative assessment that analyzes current economic indicators associated with a particular reporting unit . for example , we analyze changes in economic , market and industry conditions , business strategy , cost factors , and financial performance , among others , to determine if there would be a significant decline in the fair value of a particular reporting unit . if the qualitative assessment indicates a stable or improved fair value , no further testing is required . if a qualitative assessment indicates that a significant decline to fair value of a reporting unit is more likely than not , or if a reporting unit 's fair value has historically been closer to its carrying value , we will proceed to the second step where we calculate the fair value of a reporting unit based on discounted future cash flows . if this step indicates that the carrying value of a reporting unit is in excess of its fair value , we will proceed to the third step where the fair value of the reporting unit will be allocated to assets

