the costs of any sales incentives in the form of free or discounted products and services provided to homebuyers are reflected in land and housing costs in the consolidated statements of income because such incentives are identified in our home purchase contracts with homebuyers as an intrinsic part of our single performance obligation to deliver and transfer title to their home for the transaction price stated in the contracts . sales incentives that we may provide in the form of closing cost allowances are recorded as a reduction of housing revenue at the time the home is delivered . we record sales commissions within selling expenses in the consolidated statements of income when incurred ( i.e . when the home is delivered ) as the amortization period is generally one year or less and therefore capitalization is not required as part of the practical expedient for incremental costs of obtaining a contract . contract liabilities include customer deposits related to sold but undelivered homes . substantially all of our home sales are scheduled to close and be recorded to revenue within one year from the date of receiving a customer deposit . contract liabilities 23 expected to be recognized as revenue , excluding revenue pertaining to contracts that have an original expected duration of one year or less , is not material . a performance obligation is a promise in a contract to transfer a distinct good or service to the customer . a contract 's transaction price is allocated to each distinct performance obligation and recognized as revenue when , or as , the performance obligation is satisfied . all of our home purchase contracts have a single performance obligation as the promise to transfer the home is not separately identifiable from other promises in the contract and , therefore , not distinct . our performance obligation , to deliver the agreed-upon home , is generally satisfied in less than one year from the original contract date . deferred revenue resulting from uncompleted performance obligations existing at the time we deliver new homes to our homebuyers is not material . although our third party land sale contracts may include multiple performance obligations , the revenue we expect to recognize in any future year related to remaining performance obligations , excluding revenue pertaining to contracts that have an original expected duration of one year or less , is not material . we do not disclose the value of unsatisfied performance obligations for land sale contracts with an original expected duration of one year or less . we recognize the majority of the revenue associated with our mortgage loan operations when the mortgage loans are sold and or related servicing rights are sold to third party investors or retained and managed under a third party sub-service arrangement . the revenue recognized is reduced by the fair value of the related guarantee provided to the investor . the fair value of the guarantee is recognized in revenue when the company is released from its obligation under the guarantee . we recognize financial services revenue associated with our title operations as homes are delivered , closing services are rendered , and title policies are issued , all of which generally occur simultaneously as each home is delivered . all of the underwriting risk associated with title insurance policies is transferred to third-party insurers . see note 1 to our consolidated financial statements for additional information related to our revenues disaggregated by geography and revenue source . inventory . inventory includes the costs of land acquisition , land development and home construction , capitalized interest , real estate taxes , direct overhead costs incurred during development and home construction , and common costs that benefit the entire community , less impairments , if any . land acquisition , land development and common costs ( both incurred and estimated to be incurred ) are typically allocated to individual lots based on the total number of lots expected to be closed in each community or phase , or based on the relative fair value , the relative sales value or the front footage method of each lot . any changes to the estimated total development costs of a community or phase are allocated proportionately to the homes remaining in the community or phase and homes previously closed . the cost of individual lots is transferred to homes under construction when home construction begins . home construction costs are accumulated on a specific identification basis . costs of home deliveries include the specific construction cost of the home and the allocated lot costs . such costs are charged to cost of sales simultaneously with revenue recognition , as discussed above . when a home is closed , we typically have not yet paid all incurred costs necessary to complete the home . as homes close , we compare the home construction budget to actual recorded costs to date to estimate the additional costs to be incurred from our subcontractors related to the home . we record a liability and a corresponding charge to cost of sales for the amount we estimate will ultimately be paid related to that home . we monitor the accuracy of such estimates by comparing actual costs incurred in subsequent months to the estimate . although actual costs to complete a home in the future could differ from our estimates , our method has historically produced consistently accurate estimates of actual costs to complete closed homes . inventory is recorded at cost , unless events and circumstances indicate that the carrying value of the land is impaired , at which point the inventory is written down to fair value as required by accounting standards codification ( “ asc ” ) 360-10 , property , plant and equipment ( “ asc 360 ” ) . story_separator_special_tag consistent with these objectives , we took several actions in 2019 intended to continue the improvement in our financial and operating results in 2020 and beyond , including investing $ 332.1 million in land acquisitions and $ 268.3 million in land development to grow our presence in our existing markets . we currently estimate that we will spend approximately $ 650 million to $ 700 million on land purchases and land development in 2020 . however , land transactions are subject to a number of factors , including our financial condition and market conditions , as well as the satisfaction of various conditions related to specific properties . we will continue to monitor market conditions and our ongoing pace of home sales and deliveries , and we will adjust our land spending accordingly . we ended 2019 with approximately 33,300 lots under control , which represents a 5.3 year supply of lots based on 2019 homes delivered , including certain lots that we anticipate selling to third parties . this represents a 16 % increase from our approximately 28,700 lots under control at the end of 2018 . we also opened 80 communities and closed 64 communities in 2019 , ending the year with a total of 225 communities . of our total communities , 61 offered our more affordable smart series designs , which are primarily designed for first-time homebuyers . we estimate that our average community count in 2020 will increase by about 5 % from our average community count of 218 communities in 2019 . going forward , we believe our abilities to leverage our fixed costs , obtain land at desired rates of return , and open and grow our active communities provide our best opportunities for continuing to improve our financial results . however , we can provide no assurance that the positive trends reflected in our financial and operating metrics will continue in the future . 27 segment reporting during 2019 , we decided to wind down our washington , d.c. operations , which was substantially completed by december 31 , 2019. as a result , during the second quarter of 2019 , we re-evaluated our reportable segments and determined that none of our separate mid-atlantic operating segments met the reportable criteria set forth in asc 280 , segment reporting ( “ asc 280 ” ) . therefore , we elected to aggregate our charlotte and raleigh , north carolina operating segments ( and our remaining washington , d.c. operations , which were immaterial as of december 31 , 2019 ) into our existing southern region based on the aggregation criteria described in asc 280. all prior year segment information has been recast to conform with the 2019 presentation . the change in the reportable segments has no effect on the company 's consolidated balance sheets , statement of income or statement of cash flows for the periods presented . see note 15 to our consolidated financial statements for further information on the company 's application of asc 280. as a result of this re-evaluation , we have determined our reportable segments are : northern homebuilding ; southern homebuilding ; and financial services operations . the homebuilding operating segments that comprise each of our reportable segments are as follows : northern southern chicago , illinois orlando , florida cincinnati , ohio sarasota , florida columbus , ohio tampa , florida indianapolis , indiana austin , texas minneapolis/st . paul , minnesota dallas/fort worth , texas detroit , michigan houston , texas san antonio , texas charlotte , north carolina raleigh , north carolina 28 the following table shows , by segment : revenue ; gross margin ; selling , general and administrative expense ; operating income ( loss ) ; interest expense ; and depreciation and amortization for the years ended december 31 , 2019 , 2018 and 2017 : replace_table_token_5_th ( a ) our financial services operational results should be viewed in connection with our homebuilding business as its operations originate loans and provide title services primarily for our homebuying customers , with the exception of a small amount of mortgage refinancing . ( b ) includes $ 0.6 million and $ 5.1 million of acquisition-related charges taken during 2019 and 2018 , respectively , as a result of our acquisition of pinnacle homes in detroit , michigan on march 1 , 2018 . ( c ) the year ended december 31 , 2017 includes an $ 8.5 million charge for stucco-related repair costs in certain of our florida communities ( as more fully discussed below and in note 8 to our consolidated financial statements ) . ( d ) for the years ended december 31 , 2019 , 2018 and 2017 , total gross margin and total operating income were reduced by $ 5.0 million , $ 5.8 million and $ 7.7 million , respectively , related to asset impairment charges taken during the period . ( e ) represents costs which include , but are not limited to , legal fees and expenses , travel and communication expenses , cost of appraisals , accounting fees and expenses , and miscellaneous expenses related to our acquisition of pinnacle homes . as these costs are not eligible for capitalization as initial direct costs , such amounts are expensed as incurred . 29 the following tables show total assets by segment at december 31 , 2019 , 2018 and 2017 : replace_table_token_6_th replace_table_token_7_th replace_table_token_8_th ( a ) inventory includes : single-family lots , land and land development costs ; land held for sale ; homes under construction ; model homes and furnishings ; community development district infrastructure ; and consolidated inventory not owned . ( b ) includes development reimbursements from local municipalities . ( c ) includes asset held for sale for $ 5.6 million . ( d ) the decrease in corporate , financial services , and unallocated other assets from 2017 is related to an increase in cash on hand at

. the cash provided by operating activities in 2019 was primarily a result of net income of $ 127.6 million and $ 12.1 million of proceeds from the sale of mortgage loans net of mortgage loan originations , , offset partially by an $ 88.4 million increase in inventory and a $ 17.5 million decrease in accounts payable and other liabilities . the cash used in operating activities in 2018 was primarily a result of a $ 157.6 million increase in inventory , offset partially by net income of $ 107.7 million and an increase in accounts payable , accrued compensation , other liabilities , and customer deposits totaling $ 20.2 million . investing cash flow activities . during 2019 , we used $ 27.6 million of cash in investing activities , compared to using $ 134.0 million of cash in investing activities during 2018 . this $ 106.4 million decrease in cash usage was primarily due to our acquisition of pinnacle homes , a privately held homebuilder in detroit , michigan , during the first quarter of 2018 for $ 101.0 million ( see note 7 to our consolidated financial statements for more information ) , in addition to $ 6.3 million in proceeds received in 2019 related to the sale of our corporate headquarters ' building . financing cash flow activities . during 2019 , we used $ 53.5 million of cash from our financing activities , compared to generating $ 6.4 million of cash from our financing activities during 2018 . the increase in cash used in financing activities was primarily due to increased repayments ( net of borrowings ) under our credit facility ( as defined below ) during 2019 , partially offset by the repayment during the first quarter of 2018 of $ 65.9 million of our 3.0 % convertible senior subordinated notes due 2018 ( the “ 2018 convertible senior subordinated notes ” ) in connection with their maturity , along with a $ 19.1 million increase in proceeds from stock options in 2019 , and a $ 20.6 million decrease in common shares repurchased during 2019 compared to 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.
     ```. the cash provided by operating activities in 2019 was primarily a result of net income of $ 127.6 million and $ 12.1 million of proceeds from the sale of mortgage loans net of mortgage loan originations , , offset partially by an $ 88.4 million increase in inventory and a $ 17.5 million decrease in accounts payable and other liabilities . the cash used in operating activities in 2018 was primarily a result of a $ 157.6 million increase in inventory , offset partially by net income of $ 107.7 million and an increase in accounts payable , accrued compensation , other liabilities , and customer deposits totaling $ 20.2 million . investing cash flow activities . during 2019 , we used $ 27.6 million of cash in investing activities , compared to using $ 134.0 million of cash in investing activities during 2018 . this $ 106.4 million decrease in cash usage was primarily due to our acquisition of pinnacle homes , a privately held homebuilder in detroit , michigan , during the first quarter of 2018 for $ 101.0 million ( see note 7 to our consolidated financial statements for more information ) , in addition to $ 6.3 million in proceeds received in 2019 related to the sale of our corporate headquarters ' building . financing cash flow activities . during 2019 , we used $ 53.5 million of cash from our financing activities , compared to generating $ 6.4 million of cash from our financing activities during 2018 . the increase in cash used in financing activities was primarily due to increased repayments ( net of borrowings ) under our credit facility ( as defined below ) during 2019 , partially offset by the repayment during the first quarter of 2018 of $ 65.9 million of our 3.0 % convertible senior subordinated notes due 2018 ( the “ 2018 convertible senior subordinated notes ” ) in connection with their maturity , along with a $ 19.1 million increase in proceeds from stock options in 2019 , and a $ 20.6 million decrease in common shares repurchased during 2019 compared to 2018 .
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 Suspicious Activity Report : the costs of any sales incentives in the form of free or discounted products and services provided to homebuyers are reflected in land and housing costs in the consolidated statements of income because such incentives are identified in our home purchase contracts with homebuyers as an intrinsic part of our single performance obligation to deliver and transfer title to their home for the transaction price stated in the contracts . sales incentives that we may provide in the form of closing cost allowances are recorded as a reduction of housing revenue at the time the home is delivered . we record sales commissions within selling expenses in the consolidated statements of income when incurred ( i.e . when the home is delivered ) as the amortization period is generally one year or less and therefore capitalization is not required as part of the practical expedient for incremental costs of obtaining a contract . contract liabilities include customer deposits related to sold but undelivered homes . substantially all of our home sales are scheduled to close and be recorded to revenue within one year from the date of receiving a customer deposit . contract liabilities 23 expected to be recognized as revenue , excluding revenue pertaining to contracts that have an original expected duration of one year or less , is not material . a performance obligation is a promise in a contract to transfer a distinct good or service to the customer . a contract 's transaction price is allocated to each distinct performance obligation and recognized as revenue when , or as , the performance obligation is satisfied . all of our home purchase contracts have a single performance obligation as the promise to transfer the home is not separately identifiable from other promises in the contract and , therefore , not distinct . our performance obligation , to deliver the agreed-upon home , is generally satisfied in less than one year from the original contract date . deferred revenue resulting from uncompleted performance obligations existing at the time we deliver new homes to our homebuyers is not material . although our third party land sale contracts may include multiple performance obligations , the revenue we expect to recognize in any future year related to remaining performance obligations , excluding revenue pertaining to contracts that have an original expected duration of one year or less , is not material . we do not disclose the value of unsatisfied performance obligations for land sale contracts with an original expected duration of one year or less . we recognize the majority of the revenue associated with our mortgage loan operations when the mortgage loans are sold and or related servicing rights are sold to third party investors or retained and managed under a third party sub-service arrangement . the revenue recognized is reduced by the fair value of the related guarantee provided to the investor . the fair value of the guarantee is recognized in revenue when the company is released from its obligation under the guarantee . we recognize financial services revenue associated with our title operations as homes are delivered , closing services are rendered , and title policies are issued , all of which generally occur simultaneously as each home is delivered . all of the underwriting risk associated with title insurance policies is transferred to third-party insurers . see note 1 to our consolidated financial statements for additional information related to our revenues disaggregated by geography and revenue source . inventory . inventory includes the costs of land acquisition , land development and home construction , capitalized interest , real estate taxes , direct overhead costs incurred during development and home construction , and common costs that benefit the entire community , less impairments , if any . land acquisition , land development and common costs ( both incurred and estimated to be incurred ) are typically allocated to individual lots based on the total number of lots expected to be closed in each community or phase , or based on the relative fair value , the relative sales value or the front footage method of each lot . any changes to the estimated total development costs of a community or phase are allocated proportionately to the homes remaining in the community or phase and homes previously closed . the cost of individual lots is transferred to homes under construction when home construction begins . home construction costs are accumulated on a specific identification basis . costs of home deliveries include the specific construction cost of the home and the allocated lot costs . such costs are charged to cost of sales simultaneously with revenue recognition , as discussed above . when a home is closed , we typically have not yet paid all incurred costs necessary to complete the home . as homes close , we compare the home construction budget to actual recorded costs to date to estimate the additional costs to be incurred from our subcontractors related to the home . we record a liability and a corresponding charge to cost of sales for the amount we estimate will ultimately be paid related to that home . we monitor the accuracy of such estimates by comparing actual costs incurred in subsequent months to the estimate . although actual costs to complete a home in the future could differ from our estimates , our method has historically produced consistently accurate estimates of actual costs to complete closed homes . inventory is recorded at cost , unless events and circumstances indicate that the carrying value of the land is impaired , at which point the inventory is written down to fair value as required by accounting standards codification ( “ asc ” ) 360-10 , property , plant and equipment ( “ asc 360 ” ) . story_separator_special_tag consistent with these objectives , we took several actions in 2019 intended to continue the improvement in our financial and operating results in 2020 and beyond , including investing $ 332.1 million in land acquisitions and $ 268.3 million in land development to grow our presence in our existing markets . we currently estimate that we will spend approximately $ 650 million to $ 700 million on land purchases and land development in 2020 . however , land transactions are subject to a number of factors , including our financial condition and market conditions , as well as the satisfaction of various conditions related to specific properties . we will continue to monitor market conditions and our ongoing pace of home sales and deliveries , and we will adjust our land spending accordingly . we ended 2019 with approximately 33,300 lots under control , which represents a 5.3 year supply of lots based on 2019 homes delivered , including certain lots that we anticipate selling to third parties . this represents a 16 % increase from our approximately 28,700 lots under control at the end of 2018 . we also opened 80 communities and closed 64 communities in 2019 , ending the year with a total of 225 communities . of our total communities , 61 offered our more affordable smart series designs , which are primarily designed for first-time homebuyers . we estimate that our average community count in 2020 will increase by about 5 % from our average community count of 218 communities in 2019 . going forward , we believe our abilities to leverage our fixed costs , obtain land at desired rates of return , and open and grow our active communities provide our best opportunities for continuing to improve our financial results . however , we can provide no assurance that the positive trends reflected in our financial and operating metrics will continue in the future . 27 segment reporting during 2019 , we decided to wind down our washington , d.c. operations , which was substantially completed by december 31 , 2019. as a result , during the second quarter of 2019 , we re-evaluated our reportable segments and determined that none of our separate mid-atlantic operating segments met the reportable criteria set forth in asc 280 , segment reporting ( “ asc 280 ” ) . therefore , we elected to aggregate our charlotte and raleigh , north carolina operating segments ( and our remaining washington , d.c. operations , which were immaterial as of december 31 , 2019 ) into our existing southern region based on the aggregation criteria described in asc 280. all prior year segment information has been recast to conform with the 2019 presentation . the change in the reportable segments has no effect on the company 's consolidated balance sheets , statement of income or statement of cash flows for the periods presented . see note 15 to our consolidated financial statements for further information on the company 's application of asc 280. as a result of this re-evaluation , we have determined our reportable segments are : northern homebuilding ; southern homebuilding ; and financial services operations . the homebuilding operating segments that comprise each of our reportable segments are as follows : northern southern chicago , illinois orlando , florida cincinnati , ohio sarasota , florida columbus , ohio tampa , florida indianapolis , indiana austin , texas minneapolis/st . paul , minnesota dallas/fort worth , texas detroit , michigan houston , texas san antonio , texas charlotte , north carolina raleigh , north carolina 28 the following table shows , by segment : revenue ; gross margin ; selling , general and administrative expense ; operating income ( loss ) ; interest expense ; and depreciation and amortization for the years ended december 31 , 2019 , 2018 and 2017 : replace_table_token_5_th ( a ) our financial services operational results should be viewed in connection with our homebuilding business as its operations originate loans and provide title services primarily for our homebuying customers , with the exception of a small amount of mortgage refinancing . ( b ) includes $ 0.6 million and $ 5.1 million of acquisition-related charges taken during 2019 and 2018 , respectively , as a result of our acquisition of pinnacle homes in detroit , michigan on march 1 , 2018 . ( c ) the year ended december 31 , 2017 includes an $ 8.5 million charge for stucco-related repair costs in certain of our florida communities ( as more fully discussed below and in note 8 to our consolidated financial statements ) . ( d ) for the years ended december 31 , 2019 , 2018 and 2017 , total gross margin and total operating income were reduced by $ 5.0 million , $ 5.8 million and $ 7.7 million , respectively , related to asset impairment charges taken during the period . ( e ) represents costs which include , but are not limited to , legal fees and expenses , travel and communication expenses , cost of appraisals , accounting fees and expenses , and miscellaneous expenses related to our acquisition of pinnacle homes . as these costs are not eligible for capitalization as initial direct costs , such amounts are expensed as incurred . 29 the following tables show total assets by segment at december 31 , 2019 , 2018 and 2017 : replace_table_token_6_th replace_table_token_7_th replace_table_token_8_th ( a ) inventory includes : single-family lots , land and land development costs ; land held for sale ; homes under construction ; model homes and furnishings ; community development district infrastructure ; and consolidated inventory not owned . ( b ) includes development reimbursements from local municipalities . ( c ) includes asset held for sale for $ 5.6 million . ( d ) the decrease in corporate , financial services , and unallocated other assets from 2017 is related to an increase in cash on hand at

