we approved more than 4,700 lots in the fourth quarter alone , up over 200 % from the same quarter in the prior year . as a result of this robust lot approval activity , our year-end supply of lots controlled exceeded 27,000 , which was our highest level in more than a decade . at the end of 2019 , our financial position remained strong , as evidenced by total liquidity of $ 1.51 billion and a year-over-year decrease in our debt-to-capital ratio . already in 2020 , we have focused on further improvement to our balance sheet through the issuance of $ 300 million of 10-year senior notes at a rate of 3.850 % , which is the lowest rate for any senior note issuance in our company 's history . with strong capital resources available , we remain focused on taking steps to drive the continued growth of our business , with a goal of driving our active community count higher for a third consecutive year in 2020 . * see “ forward-looking statements ” above . 17 homebuilding pretax income ( loss ) replace_table_token_5_th n/m – not meaningful homebuilding pretax income for 2019 was $ 244.8 million , an increase of $ 27.3 million from $ 217.5 million for the year ended december 31 , 2018. the increase was primarily attributable to a 7 % increase in home sale revenues as well as a 50 basis point improvement in gross margin from home sales . our west segment experienced a $ 34.2 million year-over-year improvement in pretax income , primarily due to a 13 % increase in home sale revenues and an improved gross margin . our mountain segment experienced a $ 1.6 million increase in pretax income from the prior year , primarily due to a 5 % increase in home sale revenues , which was partially offset by increased marketing expenses driven by a higher average active community count . our east segment experienced a $ 2.8 million decrease in pretax income from the prior year , mainly due to a 9 % decrease in home sale revenues . our corporate segment experienced a $ 5.8 million increase in pretax loss , due mostly to a year-over-year increase in stock-based compensation expense associated with performance-based equity awards that were granted in 2017 and 2018. assets replace_table_token_6_th total homebuilding assets increased 10 % from december 31 , 2018 to december 31 , 2019. increases in each of our homebuilding segments were the result of increases in our inventory balances . these increases were driven by a greater number of lots acquired during 2019 than those delivered to homebuyers during the year as well as an increase in homes completed or under construction as of year-end . the increase in our corporate segment was the result of the adoption of accounting standards update ( “ asu ” ) 2016-02 , leases on january 1 , 2019 , which requires a lessee to recognize a right-of-use asset and a corresponding lease liability , primarily related to our corporate office . 18 new home deliveries & home sale revenues : changes in home sale revenues are impacted by changes in the number of new homes delivered and the average selling price of those delivered homes . commentary for each of our segments on significant changes in these two metrics is provided below . replace_table_token_7_th replace_table_token_8_th west segment commentary for the year ended december 31 , 2019 , the increase in new home deliveries was the result of a 5 % increase in the number of homes in backlog to begin the year along with a year-over-year increase in net new orders in all of our western markets resulting in increased deliveries in the second half of 2019. the average selling price of homes delivered decreased as a result of a decline in the percentage of deliveries coming from our higher priced communities in southern california . in addition , a greater percentage of closings within all of our western markets during the current year were from our more affordable product offerings . mountain segment commentary for the year ended december 31 , 2019 , new home deliveries increased 6 % driven by improved backlog conversion rates in our colorado markets and an increase in net new orders in each of our mountain markets resulting in increased deliveries in the second half of 2019. backlog conversion rates in colorado benefited from cycle time improvements as a result of ( 1 ) an increase in the percentage of seasons tm deliveries , which have some of the shortest cycle times of all of our product offerings and ( 2 ) improved cycle times across all of our product offerings in these markets . these improvements in net new orders and backlog conversion were partially offset by a 17 % decrease in homes in backlog to begin the year . east segment commentary for the year ended december 31 , 2019 , the decrease in the average selling price of homes delivered in our east segment was due to a change in mix resulting from ( 1 ) a higher percentage of our deliveries coming from our florida markets , which have a lower average selling price than our mid-atlantic market and ( 2 ) a higher percentage of deliveries in this segment coming from communities that offer more affordable home plans . the increase in new home deliveries was driven by a year-over-year increase in net new orders in all of our east markets resulting in increased deliveries in the second half of 2019 as well as shorter cycle times as a higher percentage of our deliveries were from our more affordable product offerings . these improvements in backlog conversion and net new orders were partially offset by a 19 % decrease in homes in backlog to begin the year . story_separator_special_tag we expect that the obligations secured by these performance bonds and letters of credit generally will be performed in the ordinary course of business and in accordance with the applicable contractual terms . to the extent that the obligations are performed , the related performance bonds and letters of credit should be released and we should not have any continuing obligations . however , in the event any such performance bonds or letters of credit are called , our indemnity obligations could require us to reimburse the issuer of the performance bond or letter of credit . we have made no material guarantees with respect to third-party obligations . contractual obligations the table below summarizes our known contractual obligations at december 31 , 2019. replace_table_token_22_th ( 1 ) the table above excludes $ 149.6 million of mortgage loans that we are obligated to repurchase under our mortgage repurchase facility since it is not long-term indebtedness . additionally , there were outstanding performance bonds and letters of credit totaling approximately $ 264.0 million and $ 98.7 million , respectively , at december 31 , 2019 , which have been excluded from the table above due to the uncertainty as to whether any payments may be made . 31 critical accounting estimates and policies the preparation of financial statements in conformity with accounting policies generally accepted in the united states of america requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period . management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . management evaluates such estimates and judgments on an on-going basis and makes adjustments as deemed necessary . actual results could differ from these estimates if conditions are significantly different in the future . see “ forward-looking statements ” above . listed below are those estimates and policies that we believe are critical and require the use of complex judgment in their application . our critical accounting estimates and policies are as follows and should be read in conjunction with the notes to our consolidated financial statements . homebuilding inventory valuation . refer to note 1 , summary of significant accounting policies , in the notes to the financial statements for information on the composition of the inventory balances . in accordance with accounting standards codification ( “ asc ” ) topic 360 , property , plant , and equipment ( “ asc 360 ” ) , homebuilding inventories , excluding those classified as held for sale , are carried at cost unless events and circumstances indicate that the carrying value of the underlying subdivision may not be recoverable . we evaluate inventories for impairment at each quarter end on a subdivision level basis as each such subdivision represents the lowest level of identifiable cash flows . in making this determination , we review , among other things , the following for each subdivision : actual and trending “ operating margin ” ( which is defined as home sale revenues less home cost of sales and all incremental costs associated directly with the subdivision , including sales commissions and marketing costs ) ; estimated future undiscounted cash flows and operating margin ; forecasted operating margin for homes in backlog ; actual and trending net home orders ; homes available for sale ; market information for each sub-market , including competition levels , home foreclosure levels , the size and style of homes currently being offered for sale and lot size ; and known or probable events indicating that the carrying value may not be recoverable . if events or circumstances indicate that the carrying value of our inventory may not be recoverable , assets are reviewed for impairment by comparing the undiscounted estimated future cash flows from an individual subdivision ( including capitalized interest ) to its carrying value . we generally determine the estimated fair value of each subdivision by determining the present value of the estimated future cash flows at discount rates , which are level 3 inputs ( see note 7 , fair value measurements , in the notes to the financial statements for definitions of fair value inputs ) , that are commensurate with the risk of the subdivision under evaluation . the evaluation for the recoverability of the carrying value of the assets for each individual subdivision can be impacted significantly by our estimates of future home sale revenues , home construction costs , and development costs per home , all of which are level 3 inputs . these estimates of undiscounted future cash flows are dependent on specific market or sub-market conditions for each subdivision . while we consider available information to determine what we believe to be our best estimates as of the end of a reporting period , these estimates are subject to change in future reporting periods as facts and circumstances change . local market-specific conditions that may impact these estimates for a subdivision include : historical subdivision results , and actual and trending operating margin , base selling prices and home sales incentives ; forecasted operating margin for homes in backlog ; the intensity of competition within a market or sub-market , including publicly available home sales prices and home sales incentives offered by our competitors ; increased levels of home foreclosures ; the current sales pace for active subdivisions ; subdivision specific attributes , such as location , availability and size of lots in the sub-market , desirability and uniqueness of subdivision location and the size and style of homes currently being offered ; potential for alternative home styles to respond to local market conditions ; changes by management in the sales

capital resources our capital structure is primarily a combination of ( 1 ) permanent financing , represented by stockholders ' equity ; ( 2 ) long-term financing , represented by our 5.625 % senior notes due 2020 , 5.500 % senior notes due 2024 and our 6.000 % senior notes due 2043 ; ( 3 ) our revolving credit facility and ( 4 ) our mortgage repurchase facility . on january 9 , 2020 , we completed an offering of $ 300 million of 3.850 % senior notes due january 2030 ( see note 24 , subsequent events , in the notes to the financial statements for further discussion ) . because of our current balance of cash , cash equivalents , marketable securities , ability to access the capital markets , and available capacity under both our revolving credit facility and mortgage repurchase facility , we believe that our capital resources are adequate to satisfy our short and long-term capital requirements , including meeting future payments on our senior notes as they become due . see “ forward-looking statements ” above . we may from time to time seek to retire or purchase our outstanding senior notes through cash purchases , whether through open market purchases , privately negotiated transactions or otherwise . such repurchases , if any , will depend on prevailing market conditions , our liquidity requirements , contractual restrictions and other factors . the amounts involved may be material . senior notes , revolving credit facility and mortgage repurchase facility senior notes . our senior notes are not secured and , while the senior note indentures contain some restrictions on secured debt and other transactions , they do not contain financial covenants . our senior notes are fully and unconditionally guaranteed on an unsecured basis , jointly and severally , by most of our homebuilding segment subsidiaries . we believe that we are in compliance with the representations , warranties and covenants in the senior note indentures . revolving credit facility . we have an unsecured revolving credit agreement ( “ revolving credit facility ” ) with a group of lenders , which may be used for general corporate purposes .


 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.
     ```capital resources our capital structure is primarily a combination of ( 1 ) permanent financing , represented by stockholders ' equity ; ( 2 ) long-term financing , represented by our 5.625 % senior notes due 2020 , 5.500 % senior notes due 2024 and our 6.000 % senior notes due 2043 ; ( 3 ) our revolving credit facility and ( 4 ) our mortgage repurchase facility . on january 9 , 2020 , we completed an offering of $ 300 million of 3.850 % senior notes due january 2030 ( see note 24 , subsequent events , in the notes to the financial statements for further discussion ) . because of our current balance of cash , cash equivalents , marketable securities , ability to access the capital markets , and available capacity under both our revolving credit facility and mortgage repurchase facility , we believe that our capital resources are adequate to satisfy our short and long-term capital requirements , including meeting future payments on our senior notes as they become due . see “ forward-looking statements ” above . we may from time to time seek to retire or purchase our outstanding senior notes through cash purchases , whether through open market purchases , privately negotiated transactions or otherwise . such repurchases , if any , will depend on prevailing market conditions , our liquidity requirements , contractual restrictions and other factors . the amounts involved may be material . senior notes , revolving credit facility and mortgage repurchase facility senior notes . our senior notes are not secured and , while the senior note indentures contain some restrictions on secured debt and other transactions , they do not contain financial covenants . our senior notes are fully and unconditionally guaranteed on an unsecured basis , jointly and severally , by most of our homebuilding segment subsidiaries . we believe that we are in compliance with the representations , warranties and covenants in the senior note indentures . revolving credit facility . we have an unsecured revolving credit agreement ( “ revolving credit facility ” ) with a group of lenders , which may be used for general corporate purposes .
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 Suspicious Activity Report : we approved more than 4,700 lots in the fourth quarter alone , up over 200 % from the same quarter in the prior year . as a result of this robust lot approval activity , our year-end supply of lots controlled exceeded 27,000 , which was our highest level in more than a decade . at the end of 2019 , our financial position remained strong , as evidenced by total liquidity of $ 1.51 billion and a year-over-year decrease in our debt-to-capital ratio . already in 2020 , we have focused on further improvement to our balance sheet through the issuance of $ 300 million of 10-year senior notes at a rate of 3.850 % , which is the lowest rate for any senior note issuance in our company 's history . with strong capital resources available , we remain focused on taking steps to drive the continued growth of our business , with a goal of driving our active community count higher for a third consecutive year in 2020 . * see “ forward-looking statements ” above . 17 homebuilding pretax income ( loss ) replace_table_token_5_th n/m – not meaningful homebuilding pretax income for 2019 was $ 244.8 million , an increase of $ 27.3 million from $ 217.5 million for the year ended december 31 , 2018. the increase was primarily attributable to a 7 % increase in home sale revenues as well as a 50 basis point improvement in gross margin from home sales . our west segment experienced a $ 34.2 million year-over-year improvement in pretax income , primarily due to a 13 % increase in home sale revenues and an improved gross margin . our mountain segment experienced a $ 1.6 million increase in pretax income from the prior year , primarily due to a 5 % increase in home sale revenues , which was partially offset by increased marketing expenses driven by a higher average active community count . our east segment experienced a $ 2.8 million decrease in pretax income from the prior year , mainly due to a 9 % decrease in home sale revenues . our corporate segment experienced a $ 5.8 million increase in pretax loss , due mostly to a year-over-year increase in stock-based compensation expense associated with performance-based equity awards that were granted in 2017 and 2018. assets replace_table_token_6_th total homebuilding assets increased 10 % from december 31 , 2018 to december 31 , 2019. increases in each of our homebuilding segments were the result of increases in our inventory balances . these increases were driven by a greater number of lots acquired during 2019 than those delivered to homebuyers during the year as well as an increase in homes completed or under construction as of year-end . the increase in our corporate segment was the result of the adoption of accounting standards update ( “ asu ” ) 2016-02 , leases on january 1 , 2019 , which requires a lessee to recognize a right-of-use asset and a corresponding lease liability , primarily related to our corporate office . 18 new home deliveries & home sale revenues : changes in home sale revenues are impacted by changes in the number of new homes delivered and the average selling price of those delivered homes . commentary for each of our segments on significant changes in these two metrics is provided below . replace_table_token_7_th replace_table_token_8_th west segment commentary for the year ended december 31 , 2019 , the increase in new home deliveries was the result of a 5 % increase in the number of homes in backlog to begin the year along with a year-over-year increase in net new orders in all of our western markets resulting in increased deliveries in the second half of 2019. the average selling price of homes delivered decreased as a result of a decline in the percentage of deliveries coming from our higher priced communities in southern california . in addition , a greater percentage of closings within all of our western markets during the current year were from our more affordable product offerings . mountain segment commentary for the year ended december 31 , 2019 , new home deliveries increased 6 % driven by improved backlog conversion rates in our colorado markets and an increase in net new orders in each of our mountain markets resulting in increased deliveries in the second half of 2019. backlog conversion rates in colorado benefited from cycle time improvements as a result of ( 1 ) an increase in the percentage of seasons tm deliveries , which have some of the shortest cycle times of all of our product offerings and ( 2 ) improved cycle times across all of our product offerings in these markets . these improvements in net new orders and backlog conversion were partially offset by a 17 % decrease in homes in backlog to begin the year . east segment commentary for the year ended december 31 , 2019 , the decrease in the average selling price of homes delivered in our east segment was due to a change in mix resulting from ( 1 ) a higher percentage of our deliveries coming from our florida markets , which have a lower average selling price than our mid-atlantic market and ( 2 ) a higher percentage of deliveries in this segment coming from communities that offer more affordable home plans . the increase in new home deliveries was driven by a year-over-year increase in net new orders in all of our east markets resulting in increased deliveries in the second half of 2019 as well as shorter cycle times as a higher percentage of our deliveries were from our more affordable product offerings . these improvements in backlog conversion and net new orders were partially offset by a 19 % decrease in homes in backlog to begin the year . story_separator_special_tag we expect that the obligations secured by these performance bonds and letters of credit generally will be performed in the ordinary course of business and in accordance with the applicable contractual terms . to the extent that the obligations are performed , the related performance bonds and letters of credit should be released and we should not have any continuing obligations . however , in the event any such performance bonds or letters of credit are called , our indemnity obligations could require us to reimburse the issuer of the performance bond or letter of credit . we have made no material guarantees with respect to third-party obligations . contractual obligations the table below summarizes our known contractual obligations at december 31 , 2019. replace_table_token_22_th ( 1 ) the table above excludes $ 149.6 million of mortgage loans that we are obligated to repurchase under our mortgage repurchase facility since it is not long-term indebtedness . additionally , there were outstanding performance bonds and letters of credit totaling approximately $ 264.0 million and $ 98.7 million , respectively , at december 31 , 2019 , which have been excluded from the table above due to the uncertainty as to whether any payments may be made . 31 critical accounting estimates and policies the preparation of financial statements in conformity with accounting policies generally accepted in the united states of america requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period . management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . management evaluates such estimates and judgments on an on-going basis and makes adjustments as deemed necessary . actual results could differ from these estimates if conditions are significantly different in the future . see “ forward-looking statements ” above . listed below are those estimates and policies that we believe are critical and require the use of complex judgment in their application . our critical accounting estimates and policies are as follows and should be read in conjunction with the notes to our consolidated financial statements . homebuilding inventory valuation . refer to note 1 , summary of significant accounting policies , in the notes to the financial statements for information on the composition of the inventory balances . in accordance with accounting standards codification ( “ asc ” ) topic 360 , property , plant , and equipment ( “ asc 360 ” ) , homebuilding inventories , excluding those classified as held for sale , are carried at cost unless events and circumstances indicate that the carrying value of the underlying subdivision may not be recoverable . we evaluate inventories for impairment at each quarter end on a subdivision level basis as each such subdivision represents the lowest level of identifiable cash flows . in making this determination , we review , among other things , the following for each subdivision : actual and trending “ operating margin ” ( which is defined as home sale revenues less home cost of sales and all incremental costs associated directly with the subdivision , including sales commissions and marketing costs ) ; estimated future undiscounted cash flows and operating margin ; forecasted operating margin for homes in backlog ; actual and trending net home orders ; homes available for sale ; market information for each sub-market , including competition levels , home foreclosure levels , the size and style of homes currently being offered for sale and lot size ; and known or probable events indicating that the carrying value may not be recoverable . if events or circumstances indicate that the carrying value of our inventory may not be recoverable , assets are reviewed for impairment by comparing the undiscounted estimated future cash flows from an individual subdivision ( including capitalized interest ) to its carrying value . we generally determine the estimated fair value of each subdivision by determining the present value of the estimated future cash flows at discount rates , which are level 3 inputs ( see note 7 , fair value measurements , in the notes to the financial statements for definitions of fair value inputs ) , that are commensurate with the risk of the subdivision under evaluation . the evaluation for the recoverability of the carrying value of the assets for each individual subdivision can be impacted significantly by our estimates of future home sale revenues , home construction costs , and development costs per home , all of which are level 3 inputs . these estimates of undiscounted future cash flows are dependent on specific market or sub-market conditions for each subdivision . while we consider available information to determine what we believe to be our best estimates as of the end of a reporting period , these estimates are subject to change in future reporting periods as facts and circumstances change . local market-specific conditions that may impact these estimates for a subdivision include : historical subdivision results , and actual and trending operating margin , base selling prices and home sales incentives ; forecasted operating margin for homes in backlog ; the intensity of competition within a market or sub-market , including publicly available home sales prices and home sales incentives offered by our competitors ; increased levels of home foreclosures ; the current sales pace for active subdivisions ; subdivision specific attributes , such as location , availability and size of lots in the sub-market , desirability and uniqueness of subdivision location and the size and style of homes currently being offered ; potential for alternative home styles to respond to local market conditions ; changes by management in the sales

