Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Our provision for income taxes for the years ended December 31, 2022, 2021 and 2020 consisted of the following:

	Year Ended December 31,
	2022		2021		2020
	(Dollars in thousands)
Current tax provision:
Federal	$	174,965	$	148,741	$	63,224
State	54,060		35,784		16,018
Total current	229,025		184,525		79,242
Deferred tax provision:
Federal	(26,030)		(6,699)		6,380
State	(5,280)		211		4,308
Total deferred	(31,310)		(6,488)		10,688
Provision for income taxes	$	197,715	$	178,037	$	89,930

Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes differs from the amount that would be computed by applying the statutory federal income tax rate of 21% in 2022, 2021 and 2020 to income before income taxes as a result of the following:

	Year Ended December 31,
	2022			2021			2020
	(Dollars in thousands)
Tax expense computed at federal statutory rate	$	159,569		$	157,856		$	96,077
State income tax expense, net of federal benefit	30,213			26,441			17,535
Limitation on executive compensation	23,778			14,915			8,102
Tax expense (benefit) related to an increase (decrease) in unrecognized tax benefits	215			(4,044)			473
Stock based compensation (windfall)/shortfall	(2,553)			(1,830)			(7,907)
Federal energy credits	(15,265)			(14,558)			(23,331)
Rate changes	19			81			(291)
Change in valuation allowance	(1,065)			(1,054)			(2,128)
Other	2,804			230			1,400
Provision for income taxes	$	197,715		$	178,037		$	89,930
Effective tax rate	26.0		%	23.7		%	19.7		%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of significant temporary differences that give rise to the net deferred tax asset are as follows:

	December 31,
	2022		2021
	(Dollars in thousands)
Deferred tax assets:
State net operating loss carryforwards	$	2,296	$	3,361
Stock-based compensation expense	2,896		4,350
Warranty, litigation and other reserves	17,134		14,785
Accrued compensation	8,554		8,602
Asset impairment charges	30,319		468
Inventory, additional net costs capitalized for tax purposes	11,399		8,298
Other, net	1,861		1,526
Total deferred tax assets	74,459		41,390
Valuation allowance	(2,251)		(3,316)
Total deferred tax assets, net of valuation allowance	72,208		38,074
Deferred tax liabilities:
Property, equipment and other assets	11,714		10,871
Deferral of profit on home sales	5,592		4,668
Other, net	5,650		4,593
Total deferred tax liabilities	22,956		20,132
Net deferred tax asset	$	49,252	$	17,942

Schedule of Unrecognized Tax Benefits Roll Forward

The following table summarizes activity for the gross unrecognized tax benefit component of our total liability for uncertain tax positions for the years ended December 31, 2022, 2021 and 2020:

	Year Ended December 31,
	2022		2021		2020
	(Dollars in thousands)
Gross unrecognized tax benefits at beginning of year	$	383	$	8,497	$	8,515
Increases related to prior year tax positions	357		162		121
Decreases related to prior year tax positions	—		—		—
Lapse of applicable statute of limitations	(94)		(8,276)		(139)
Gross unrecognized tax benefits at end of year	$	646	$	383	$	8,497