Segment Disclosures (Tables)

9 Months Ended

Sep. 30, 2020

The following tables present segment revenues, profit and assets with reconciliations to the amounts reported for the consolidated enterprise, where applicable:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Revenues:
Homebuilding Mid Atlantic	$	949,472	$	1,012,056	$	2,563,375	$	2,875,411
Homebuilding North East	157,973		120,478		362,328		364,909
Homebuilding Mid East	404,992		406,145		1,025,642		1,104,603
Homebuilding South East	408,314		334,652		1,113,871		929,062
Mortgage Banking	69,261		37,933		127,692		124,484
Total consolidated revenues	$	1,990,012	$	1,911,264	$	5,192,908	$	5,398,469

Profit before Taxes


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Income before taxes:
Homebuilding Mid Atlantic	$	104,700	$	124,900	$	284,440	$	348,067
Homebuilding North East	14,272		13,164		31,081		36,187
Homebuilding Mid East	45,109		50,210		103,575		125,976
Homebuilding South East	52,554		39,721		142,463		105,582
Mortgage Banking	52,890		22,835		80,461		78,566
Total segment profit before taxes	269,525		250,830		642,020		694,378
Reconciling items:
Contract land deposit reserve adjustment (1)	4,867		248		(31,208)		1,572
Equity-based compensation expense (2)	(13,639)		(20,770)		(35,565)		(58,680)
Corporate capital allocation (3)	60,662		57,887		177,184		168,621
Unallocated corporate overhead	(26,915)		(27,914)		(87,912)		(89,003)
Consolidation adjustments and other (4)	38,244		12,859		54,769		31,569
Corporate interest expense	(11,287)		(5,966)		(26,625)		(17,964)
Reconciling items sub-total	51,932		16,344		50,643		36,115
Consolidated income before taxes	$	321,457	$	267,174	$	692,663	$	730,493

(1)This item represents changes to the contract land deposit impairment reserve, which are not allocated to the reportable segments. See further discussion of lot deposit impairment charges in Note 2.

(2)The decrease in equity-based compensation expense for the three and nine month periods ended September 30, 2020 was primarily attributable to stock options issued in 2014 under the 2014 Equity Incentive Plan becoming fully vested in 2019. In addition, stock compensation expense for both the three and nine month periods ended September 30, 2020 was favorably impacted by higher stock option forfeitures during 2020.

(3)This item represents the elimination of the corporate capital allocation charge included in the respective homebuilding reportable segments. The corporate capital allocation charge is based on the segment’s monthly average asset balance, and was as follows for the periods presented:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Corporate capital allocation charge:
Homebuilding Mid Atlantic	$	31,383	$	31,504	$	92,720	$	93,297
Homebuilding North East	5,793		5,028		17,142		14,381
Homebuilding Mid East	10,386		9,791		29,436		28,303
Homebuilding South East	13,100		11,564		37,886		32,640
Total	$	60,662	$	57,887	$	177,184	$	168,621

(4) The increase in our consolidation adjustments and other reconciling item for both the three and nine month periods ended September 30, 2020 relates primarily to the significant increase in lumber prices during the third quarter of 2020. Our reportable segments' results include intercompany profits of our production facilities, which were negatively impacted by the increase in lumber costs. The increase in lumber costs related to homes not yet settled is eliminated through the consolidation adjustment. As these homes currently in inventory are settled in subsequent quarters, our consolidated homebuilding margins will be negatively impacted by the higher lumber costs.

Assets


	September 30, 2020		December 31, 2019
Assets:
Homebuilding Mid Atlantic	$	1,198,050	$	1,024,996
Homebuilding North East	199,162		166,860
Homebuilding Mid East	395,668		293,773
Homebuilding South East	474,484		400,979
Mortgage Banking	403,878		560,407
Total segment assets	2,671,242		2,447,015
Reconciling items:
Cash and cash equivalents	2,539,460		1,110,892
Deferred taxes	125,743		115,731
Intangible assets and goodwill	49,717		49,834
Homebuilding operating lease right-of-use assets	54,964		63,825
Finance lease right-of-use assets	15,674		7,052
Contract land deposit reserve	(58,781)		(27,572)
Consolidation adjustments and other	101,901		43,038
Reconciling items sub-total	2,828,678		1,362,800
Consolidated assets	$	5,499,920	$	3,809,815