the average sales price of homes may increase or decrease depending on the mix of homes delivered and sold during such period and local market conditions . these changes in the average sales price of homes are part of our natural business cycle . new home orders and backlog the table below represents new home orders and backlog related to our builder operations segments : replace_table_token_6_th our cancellation rate was 14.9 % for the year ended december 31 , 2018 , compared to 15.0 % for the year ended december 31 , 2017 . management believes a cancellation rate in the range of 15 % to 20 % is representative of an industry average cancellation rate . on average , our cancellation rate is on the lower end of the industry average , which we believe is due to our target buyer demographics which generally does not include first time homebuyers . the $ 112.8 million increase in value of backlog was primarily driven by an increase in the number of homes in backlog which was significantly impacted by the acquisition of grbk gho with 197 homes in backlog as of december 31 , 2018 . the increase in the number of homes in backlog was partially offset by a decrease of the average sales price of homes in backlog by $ 34,509 , of which $ 41,808 was the result of change in product mix related to the acquisition of grbk gho . residential units gross margin the table below represents the components of residential units gross margin ( dollars in thousands ) : replace_table_token_7_th cost of homebuilding units for the year ended december 31 , 2018 increased by $ 109.0 million , or 31.9 % , primarily due to the 30.0 % increase in the number of homes delivered . residential units gross margin for the year ended december 31 , 2018 decreased to 21.0 % , compared to 21.4 % for the year ended december 31 , 2017 . the decrease was driven by an increase in capitalized interest , the sale of inventory acquired in the 23 grbk gho business combination which had an increased basis when measured at fair value at the date of acquisition , and a reduction in homes sold on lots developed by the company . land and lots revenue the table below represents lots closed and land and lots revenue : replace_table_token_8_th of the 239 lots closed to third parties during the year ended december 31 , 2018 , 29 were closed by our controlled builders , resulting in revenue of $ 4.9 million which is included in builder operations segments ' revenue . the 96.4 % increase in lots revenue was driven by a 67.1 % increase in the number of lots closed , as well as by a 17.5 % increase in the average lot sales price . four land parcels were closed during the year ended december 31 , 2018 , resulting in revenue of $ 9.7 million compared to one parcel closed during the year ended december 31 , 2017 . selling , general and administrative expense the table below represents the components of selling , general and administrative expense ( dollars in thousands ) : replace_table_token_9_th builder operations selling , general and administrative expense for the year ended december 31 , 2018 for builder operations was $ 49.2 million , compared to $ 32.2 million for the year ended december 31 , 2017 . the increase was primarily attributable to increases in expenditures to support the growth in home sales , as well as the acquisition of grbk gho . builder operations expenditures include salary expenses and community costs such as advertising and marketing expenses , rent , professional fees , and non-capitalized property taxes . selling , general and administrative expense as a percentage of related revenue increased primarily because of an increase in technology improvements and increased salaries , in addition to a reclassification of depreciation on model home furnishings . land development selling , general and administrative expense for land development for the year ended december 31 , 2018 was $ 3.1 million , compared to $ 1.1 million for the year ended december 31 , 2017 . the increase in expense as a percentage of related revenue was primarily due to an increase in compensation and non-capitalized pursuit costs , as well as an increase of non-capitalized property taxes driven by an increase in finished lots . corporate and other selling , general and administrative expense for the corporate and other non-operating segment for the year ended december 31 , 2018 was $ 4.5 million , compared to $ 5.6 million for the year ended december 31 , 2017 . the decrease was primarily due to higher share-based compensation expense during the year ended december 31 , 2017 driven by a higher amount of restricted stock awards ( “ rsas ” ) granted under the 2014 omnibus equity incentive plan to certain named executive officers . 24 equity in income of unconsolidated entities equity in income of unconsolidated entities increased to $ 7.3 million for the year ended december 31 , 2018 , compared to $ 2.7 million during the year ended december 31 , 2017 , due primarily to our purchase of 49.9 % interest in gb challenger , llc ( “ challenger ” ) in august 2017. in addition , the formation of providence title in march 2018 had a positive impact on earnings . other income , net other income , net , increased to $ 2.6 million for the year ended december 31 , 2018 , compared to $ 1.5 million for the year ended december 31 , 2017 . the increase was primarily due to an increase in title closing and settlement services provided by green brick title , llc . story_separator_special_tag 31 management believes that the following accounting policies are among the most important to the portrayal of our financial condition and results of operations and require the most subjective or complex judgments . inventory and cost of revenues inventory consists of undeveloped land , raw land scheduled for development , land in the process of development , land held for sale , developed lots , homes completed and under construction , and model homes . inventory is valued at cost unless the carrying value is determined to be not recoverable in which case the affected inventory is written down to fair value . cost includes any related pre-acquisition costs that are directly identifiable with a specific property so long as those pre-acquisition costs are anticipated to be recoverable at the sale of the property . residential lots held for sale and lots held for development include the initial cost of acquiring the land as well as certain costs capitalized related to developing the land into individual residential lots including direct overhead , interest and real estate taxes . land development and other project costs , including direct overhead , interest and property taxes incurred during development and home construction , are capitalized . land development and other common costs that benefit an entire community are allocated to individual lots or homes based on relative sales value . the costs of completed lots are transferred to work in process when home construction begins . home construction costs and related carrying charges ( principally interest and real estate taxes ) are allocated to the cost of individual homes . inventory costs for completed homes are expensed upon closing and delivery of the homes . changes to estimated total land development costs subsequent to initial home closings in a community are generally allocated to the unsold homes in the community on a pro-rata basis . the life cycle of a community generally ranges from two to six years , commencing with the acquisition of land , continuing through the land development phase , construction , and concluding with the sale and delivery of homes . we recognize costs as incurred on our mechanic 's lien contracts . impairment of inventory in accordance with the accounting standards codification ( “ asc ” ) 360 , property , plant , and equipment , we evaluate our inventory for indicators of impairment by individual community and development during each reporting period . for our builder operations segments , during each reporting period , community gross margins are reviewed by management . in the event that homebuilding inventory in an individual community is moving at a slower than anticipated absorption pace or the average sales prices or margins within an individual community are trending downward and are anticipated to continue to trend downward over the life of the community , the company will further investigate the community and evaluate it for impairment . for our land development segment , we perform a quarterly review for indicators of impairment for each project which involves projecting future lot closings based on executed contracts and comparing these revenues to projected costs . in determining the allocation of costs to a particular land parcel , we rely on project budgets which are based on a variety of assumptions , including assumptions about development schedules and future costs to be incurred . it is common that actual results differ from budgeted amounts for various reasons , including delays , increases in costs that have not been committed , unforeseen issues encountered during project development that fall outside the scope of existing contracts , or items that ultimately cost more or less than the budgeted amount . we apply procedures to maintain best estimates in our budgets , including assessing and revising project budgets on a periodic basis , obtaining commitments from subcontractors and vendors for future costs to be incurred and utilizing the most recent information available to estimate costs . each reporting period , management reviews the real estate assets , including land held for sale , to determine whether the estimated remaining undiscounted future cash flows are more or less than the asset 's carrying value . the estimated cash flows are determined by projecting the remaining revenue from lot closings based on the contractual lot takedowns remaining or historical/projected home sales/delivery absorptions for homebuilding operations and then comparing such projections to the remaining projected expenditures for development or home construction . remaining projected expenditures are based on the most current pricing/bids received from subcontractors for current phases or homes under development . for future phases of land development , management uses its judgment to project potential cost increases . in determining the estimated cash flows for land held for sale , management considers recent comparisons to market comparable transactions , bona fide letters of intent from outside parties , executed sales contracts , broker quotes , and similar information . when projecting revenue , management does not assume improvement in market conditions . 32 if the estimated undiscounted cash flows are more than the asset 's carrying value , no impairment adjustment is required . however , if the estimated undiscounted cash flows are less than the asset 's carrying value , the asset is deemed impaired and will be written down to fair value less associated costs to sell . these impairment evaluations require us to make estimates and assumptions regarding future conditions , including the timing and amounts of development costs and sales prices of real estate assets , to determine if expected future cash flows will be sufficient to recover the asset 's carrying value . fair value is determined based on estimated future cash flows discounted for inherent risks associated with real estate assets . these discounted cash flows are impacted by expected risk based on estimated land development activities , construction and delivery timelines , market risk of price erosion , uncertainty of development or construction cost increases , and other risks specific to

liquidity and capital resources overview as of december 31 , 2018 and 2017 , we had $ 38.3 million and $ 36.7 million of unrestricted cash , respectively . management believes that we have a prudent cash management strategy , including consideration of cash outlays for land and lot acquisition and development . we intend to generate and redeploy net cash from the sale of inventory to acquire and develop land and lots that represent opportunities to generate desired margins . we may also use cash to make additional investments in business acquisitions , joint ventures , or other strategic activities . our principal uses of capital for the year ended december 31 , 2018 were home construction , land purchases , land development , operating expenses , payment of routine liabilities , and the acquisition of grbk gho . we used funds generated by operations and available borrowings to meet our short-term working capital requirements . we remain focused on generating positive margins in our builder operations segments and acquiring desirable land positions in order to maintain a strong balance sheet and remain poised for continued growth . cash flows for each of our communities depend on the community 's 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 , roads , utilities , general landscaping and other amenities . these costs are a component of our inventory and are not recognized in our statement of income until a home closes . 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 construction and land development previously occurred . our debt to total capitalization and net debt to total capitalization ratios were 30 % and 26 % , respectively , as of december 31 , 2018 .


 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 as of december 31 , 2018 and 2017 , we had $ 38.3 million and $ 36.7 million of unrestricted cash , respectively . management believes that we have a prudent cash management strategy , including consideration of cash outlays for land and lot acquisition and development . we intend to generate and redeploy net cash from the sale of inventory to acquire and develop land and lots that represent opportunities to generate desired margins . we may also use cash to make additional investments in business acquisitions , joint ventures , or other strategic activities . our principal uses of capital for the year ended december 31 , 2018 were home construction , land purchases , land development , operating expenses , payment of routine liabilities , and the acquisition of grbk gho . we used funds generated by operations and available borrowings to meet our short-term working capital requirements . we remain focused on generating positive margins in our builder operations segments and acquiring desirable land positions in order to maintain a strong balance sheet and remain poised for continued growth . cash flows for each of our communities depend on the community 's 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 , roads , utilities , general landscaping and other amenities . these costs are a component of our inventory and are not recognized in our statement of income until a home closes . 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 construction and land development previously occurred . our debt to total capitalization and net debt to total capitalization ratios were 30 % and 26 % , respectively , as of december 31 , 2018 .
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 Suspicious Activity Report : the average sales price of homes may increase or decrease depending on the mix of homes delivered and sold during such period and local market conditions . these changes in the average sales price of homes are part of our natural business cycle . new home orders and backlog the table below represents new home orders and backlog related to our builder operations segments : replace_table_token_6_th our cancellation rate was 14.9 % for the year ended december 31 , 2018 , compared to 15.0 % for the year ended december 31 , 2017 . management believes a cancellation rate in the range of 15 % to 20 % is representative of an industry average cancellation rate . on average , our cancellation rate is on the lower end of the industry average , which we believe is due to our target buyer demographics which generally does not include first time homebuyers . the $ 112.8 million increase in value of backlog was primarily driven by an increase in the number of homes in backlog which was significantly impacted by the acquisition of grbk gho with 197 homes in backlog as of december 31 , 2018 . the increase in the number of homes in backlog was partially offset by a decrease of the average sales price of homes in backlog by $ 34,509 , of which $ 41,808 was the result of change in product mix related to the acquisition of grbk gho . residential units gross margin the table below represents the components of residential units gross margin ( dollars in thousands ) : replace_table_token_7_th cost of homebuilding units for the year ended december 31 , 2018 increased by $ 109.0 million , or 31.9 % , primarily due to the 30.0 % increase in the number of homes delivered . residential units gross margin for the year ended december 31 , 2018 decreased to 21.0 % , compared to 21.4 % for the year ended december 31 , 2017 . the decrease was driven by an increase in capitalized interest , the sale of inventory acquired in the 23 grbk gho business combination which had an increased basis when measured at fair value at the date of acquisition , and a reduction in homes sold on lots developed by the company . land and lots revenue the table below represents lots closed and land and lots revenue : replace_table_token_8_th of the 239 lots closed to third parties during the year ended december 31 , 2018 , 29 were closed by our controlled builders , resulting in revenue of $ 4.9 million which is included in builder operations segments ' revenue . the 96.4 % increase in lots revenue was driven by a 67.1 % increase in the number of lots closed , as well as by a 17.5 % increase in the average lot sales price . four land parcels were closed during the year ended december 31 , 2018 , resulting in revenue of $ 9.7 million compared to one parcel closed during the year ended december 31 , 2017 . selling , general and administrative expense the table below represents the components of selling , general and administrative expense ( dollars in thousands ) : replace_table_token_9_th builder operations selling , general and administrative expense for the year ended december 31 , 2018 for builder operations was $ 49.2 million , compared to $ 32.2 million for the year ended december 31 , 2017 . the increase was primarily attributable to increases in expenditures to support the growth in home sales , as well as the acquisition of grbk gho . builder operations expenditures include salary expenses and community costs such as advertising and marketing expenses , rent , professional fees , and non-capitalized property taxes . selling , general and administrative expense as a percentage of related revenue increased primarily because of an increase in technology improvements and increased salaries , in addition to a reclassification of depreciation on model home furnishings . land development selling , general and administrative expense for land development for the year ended december 31 , 2018 was $ 3.1 million , compared to $ 1.1 million for the year ended december 31 , 2017 . the increase in expense as a percentage of related revenue was primarily due to an increase in compensation and non-capitalized pursuit costs , as well as an increase of non-capitalized property taxes driven by an increase in finished lots . corporate and other selling , general and administrative expense for the corporate and other non-operating segment for the year ended december 31 , 2018 was $ 4.5 million , compared to $ 5.6 million for the year ended december 31 , 2017 . the decrease was primarily due to higher share-based compensation expense during the year ended december 31 , 2017 driven by a higher amount of restricted stock awards ( “ rsas ” ) granted under the 2014 omnibus equity incentive plan to certain named executive officers . 24 equity in income of unconsolidated entities equity in income of unconsolidated entities increased to $ 7.3 million for the year ended december 31 , 2018 , compared to $ 2.7 million during the year ended december 31 , 2017 , due primarily to our purchase of 49.9 % interest in gb challenger , llc ( “ challenger ” ) in august 2017. in addition , the formation of providence title in march 2018 had a positive impact on earnings . other income , net other income , net , increased to $ 2.6 million for the year ended december 31 , 2018 , compared to $ 1.5 million for the year ended december 31 , 2017 . the increase was primarily due to an increase in title closing and settlement services provided by green brick title , llc . story_separator_special_tag 31 management believes that the following accounting policies are among the most important to the portrayal of our financial condition and results of operations and require the most subjective or complex judgments . inventory and cost of revenues inventory consists of undeveloped land , raw land scheduled for development , land in the process of development , land held for sale , developed lots , homes completed and under construction , and model homes . inventory is valued at cost unless the carrying value is determined to be not recoverable in which case the affected inventory is written down to fair value . cost includes any related pre-acquisition costs that are directly identifiable with a specific property so long as those pre-acquisition costs are anticipated to be recoverable at the sale of the property . residential lots held for sale and lots held for development include the initial cost of acquiring the land as well as certain costs capitalized related to developing the land into individual residential lots including direct overhead , interest and real estate taxes . land development and other project costs , including direct overhead , interest and property taxes incurred during development and home construction , are capitalized . land development and other common costs that benefit an entire community are allocated to individual lots or homes based on relative sales value . the costs of completed lots are transferred to work in process when home construction begins . home construction costs and related carrying charges ( principally interest and real estate taxes ) are allocated to the cost of individual homes . inventory costs for completed homes are expensed upon closing and delivery of the homes . changes to estimated total land development costs subsequent to initial home closings in a community are generally allocated to the unsold homes in the community on a pro-rata basis . the life cycle of a community generally ranges from two to six years , commencing with the acquisition of land , continuing through the land development phase , construction , and concluding with the sale and delivery of homes . we recognize costs as incurred on our mechanic 's lien contracts . impairment of inventory in accordance with the accounting standards codification ( “ asc ” ) 360 , property , plant , and equipment , we evaluate our inventory for indicators of impairment by individual community and development during each reporting period . for our builder operations segments , during each reporting period , community gross margins are reviewed by management . in the event that homebuilding inventory in an individual community is moving at a slower than anticipated absorption pace or the average sales prices or margins within an individual community are trending downward and are anticipated to continue to trend downward over the life of the community , the company will further investigate the community and evaluate it for impairment . for our land development segment , we perform a quarterly review for indicators of impairment for each project which involves projecting future lot closings based on executed contracts and comparing these revenues to projected costs . in determining the allocation of costs to a particular land parcel , we rely on project budgets which are based on a variety of assumptions , including assumptions about development schedules and future costs to be incurred . it is common that actual results differ from budgeted amounts for various reasons , including delays , increases in costs that have not been committed , unforeseen issues encountered during project development that fall outside the scope of existing contracts , or items that ultimately cost more or less than the budgeted amount . we apply procedures to maintain best estimates in our budgets , including assessing and revising project budgets on a periodic basis , obtaining commitments from subcontractors and vendors for future costs to be incurred and utilizing the most recent information available to estimate costs . each reporting period , management reviews the real estate assets , including land held for sale , to determine whether the estimated remaining undiscounted future cash flows are more or less than the asset 's carrying value . the estimated cash flows are determined by projecting the remaining revenue from lot closings based on the contractual lot takedowns remaining or historical/projected home sales/delivery absorptions for homebuilding operations and then comparing such projections to the remaining projected expenditures for development or home construction . remaining projected expenditures are based on the most current pricing/bids received from subcontractors for current phases or homes under development . for future phases of land development , management uses its judgment to project potential cost increases . in determining the estimated cash flows for land held for sale , management considers recent comparisons to market comparable transactions , bona fide letters of intent from outside parties , executed sales contracts , broker quotes , and similar information . when projecting revenue , management does not assume improvement in market conditions . 32 if the estimated undiscounted cash flows are more than the asset 's carrying value , no impairment adjustment is required . however , if the estimated undiscounted cash flows are less than the asset 's carrying value , the asset is deemed impaired and will be written down to fair value less associated costs to sell . these impairment evaluations require us to make estimates and assumptions regarding future conditions , including the timing and amounts of development costs and sales prices of real estate assets , to determine if expected future cash flows will be sufficient to recover the asset 's carrying value . fair value is determined based on estimated future cash flows discounted for inherent risks associated with real estate assets . these discounted cash flows are impacted by expected risk based on estimated land development activities , construction and delivery timelines , market risk of price erosion , uncertainty of development or construction cost increases , and other risks specific to

