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Segment Information, Nature of Operations, and Certain Concentrations
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Information, Nature of Operations, and Certain Concentrations
2.    Segment Information, Nature of Operations, and Certain Concentrations
Our homebuilding operations primarily construct and sell single-family detached homes, townhomes and condominium buildings under three trade names: Ryan Homes, NVHomes and Heartland Homes. The Ryan Homes product is marketed primarily to first-time and first-time move-up buyers. Ryan Homes operates in thirty-three metropolitan areas located in Maryland, Virginia, Washington, D.C., West Virginia, Pennsylvania, New York, North Carolina, South Carolina, Florida, Ohio, New Jersey, Delaware, Indiana, Illinois and Tennessee.  The NVHomes and Heartland Homes products are marketed primarily to move-up and luxury buyers. NVHomes operates in Delaware and the Washington, D.C., Baltimore, MD and Philadelphia, PA metropolitan areas. Heartland Homes operates in the Pittsburgh, PA metropolitan area. We derived approximately 24% and 10% of our 2020 homebuilding revenues from the Washington, D.C. and Baltimore, MD metropolitan areas, respectively.
Our mortgage banking segment is a regional mortgage banking operation. Substantially all of our loan closing activity is for our homebuilding customers. Our mortgage banking business generates revenues primarily from origination fees, gains on sales of loans, and title fees. A substantial portion of our mortgage operations is conducted in the Washington, D.C. and Baltimore, MD metropolitan areas.
The following disclosure includes four homebuilding reportable segments that aggregate geographically our homebuilding operating segments, and the mortgage banking operations presented as a single reportable segment. The homebuilding reportable segments are comprised of operating divisions in the following geographic areas:
Mid Atlantic: Maryland, Virginia, West Virginia, Delaware and Washington, D.C.
North East: New Jersey and Eastern Pennsylvania
Mid East: New York, Ohio, Western Pennsylvania, Indiana and Illinois
South East: North Carolina, South Carolina, Florida and Tennessee
Homebuilding profit before tax includes all revenues and income generated from the sale of homes, less the cost of homes sold, selling, general and administrative expenses, and a corporate capital allocation charge. The corporate capital allocation charge is eliminated in consolidation and is based on the segment’s average net assets employed. The corporate capital allocation charged to the operating segment allows the Chief Operating Decision Maker (“CODM”) to determine whether the operating segment’s results are providing the desired rate of return after covering our cost of capital.
Assets not allocated to the operating segments are not included in either the operating segment's corporate capital allocation charge or the CODM's evaluation of the operating segment's performance. We record charges on contract land deposits when it is determined that it is probable that recovery of the deposit is impaired. For segment reporting purposes, impairments on contract land deposits are charged to the operating segment upon the termination of an LPA with the developer, or the restructuring of an LPA resulting in the forfeiture of the deposit.
Mortgage banking profit before tax consists of revenues generated from mortgage financing, title insurance and closing services, less the costs of such services and general and administrative costs. Mortgage banking operations are not charged a corporate capital allocation charge.
In addition to the corporate capital allocation and contract land deposit impairments discussed above, the other reconciling items between segment profit and consolidated profit before tax include unallocated corporate overhead (including all management incentive compensation), equity-based compensation expense, consolidation adjustments and external corporate interest expense. Our overhead functions, such as accounting, treasury and human resources are centrally performed and the costs are not allocated to our operating segments. Consolidation adjustments consist of such items necessary to convert the reportable segments’ results, which are
predominately maintained on a cash basis, to a full accrual basis for external financial statement presentation purposes, and are not allocated to our operating segments. External corporate interest expense primarily consists of interest charges on our 3.95% Senior Notes due 2022 and 3.00% Senior Notes due 2030 (the “Senior Notes”), which are not charged to the operating segments because the charges are included in the corporate capital allocation discussed above.

The following tables present certain segment financial data, with reconciliations to the amounts reported for the consolidated company, where applicable:
 Year Ended December 31,
 202020192018
Revenues:   
Homebuilding Mid Atlantic$3,668,542 $3,901,573 $3,893,358 
Homebuilding North East538,772 514,804 580,726 
Homebuilding Mid East1,524,667 1,501,139 1,455,834 
Homebuilding South East1,596,908 1,303,328 1,074,386 
Mortgage Banking208,034 167,820 159,370 
Consolidated revenues$7,536,923 $7,388,664 $7,163,674 
 Year Ended December 31,
 202020192018
Profit before taxes:   
Homebuilding Mid Atlantic$437,849 $478,537 $462,178 
Homebuilding North East50,677 51,728 69,789 
Homebuilding Mid East168,605 173,374 175,134 
Homebuilding South East205,029 155,144 118,296 
Mortgage Banking143,319 105,292 93,462 
Total segment profit1,005,479 964,075 918,859 
Reconciling items:   
Contract land deposit reserve adjustment (1)(24,633)1,644 783 
Equity-based compensation expense (2)(50,794)(78,532)(75,701)
Corporate capital allocation (4)239,233 224,468 213,903 
Unallocated corporate overhead(114,921)(105,125)(89,973)
Consolidation adjustments and other (3)63,025 43,486 15,829 
Corporate interest expense(39,356)(24,221)(23,968)
Reconciling items sub-total72,554 61,720 40,873 
Consolidated profit before taxes$1,078,033 $1,025,795 $959,732 

(1)This item represents changes to the contract land deposit impairment reserve, which are not allocated to the reportable segments. See further discussion of contract land deposit impairment charges in Note 3.
(2)The decrease in equity-based compensation expense in 2020 was primarily attributable to stock options issued in 2014 under the 2014 Equity Incentive Plan becoming fully vested in 2019. In addition, there were higher stock option forfeitures in 2020 compared to 2019.
(3)The increase in 2020 relates primarily to the significant increase in lumber prices during the second half 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.
(4)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 years presented:
 Year Ended December 31,
 202020192018
Corporate capital allocation charge:   
Homebuilding Mid Atlantic$124,426 $123,130 $123,855 
Homebuilding North East22,850 19,755 17,893 
Homebuilding Mid East40,256 37,263 35,803 
Homebuilding South East51,701 44,320 36,352 
Total corporate capital allocation charge$239,233 $224,468 $213,903 
 As of December 31,
 20202019
Assets:  
Homebuilding Mid Atlantic$1,140,910 $1,024,996 
Homebuilding North East202,591 166,860 
Homebuilding Mid East377,448 293,773 
Homebuilding South East494,295 400,979 
Mortgage Banking555,278 560,407 
Total segment assets2,770,522 2,447,015 
Reconciling items:  
Cash and cash equivalents2,714,720 1,110,892 
Deferred taxes132,980 115,731 
Intangible assets and goodwill49,678 49,834 
Operating lease right-of-use assets53,110 63,825 
Finance lease right-of-use assets15,772 7,052 
Contract land deposit reserve(52,205)(27,572)
Consolidation adjustments and other92,564 43,038 
Reconciling items sub-total3,006,619 1,362,800 
Consolidated assets$5,777,141 $3,809,815 
 Year Ended December 31,
 202020192018
Interest income:   
Mortgage Banking$8,930 $12,142 $11,593 
Total segment interest income8,930 12,142 11,593 
Other unallocated interest income8,549 20,635 8,588 
Consolidated interest income$17,479 $32,777 $20,181 
 Year Ended December 31,
 202020192018
Interest expense:   
Homebuilding Mid Atlantic$124,486 $123,178 $123,908 
Homebuilding North East22,859 19,804 17,897 
Homebuilding Mid East40,261 37,266 35,804 
Homebuilding South East51,729 44,334 36,362 
Mortgage Banking1,414 1,045 1,045 
Total segment interest expense240,749 225,627 215,016 
Corporate capital allocation (4)(239,233)(224,468)(213,903)
Senior Notes and other interest39,356 24,221 23,968 
Consolidated interest expense$40,872 $25,380 $25,081 
 Year Ended December 31,
 202020192018
Depreciation and amortization:   
Homebuilding Mid Atlantic$6,806 $7,069 $7,753 
Homebuilding North East1,800 1,411 1,600 
Homebuilding Mid East4,969 4,348 3,481 
Homebuilding South East3,636 3,086 2,523 
Mortgage Banking1,534 1,581 1,489 
Total segment depreciation and amortization18,745 17,495 16,846 
Unallocated corporate3,247 3,323 3,322 
Consolidated depreciation and amortization$21,992 $20,818 $20,168 
 Year Ended December 31,
 202020192018
Expenditures for property and equipment:   
Homebuilding Mid Atlantic$5,712 $9,218 $6,657 
Homebuilding North East1,083 2,000 1,074 
Homebuilding Mid East5,041 5,221 4,302 
Homebuilding South East3,818 3,944 2,732 
Mortgage Banking265 899 1,677 
Total segment expenditures for property and equipment15,919 21,282 16,442 
Unallocated corporate200 1,417 3,223 
Consolidated expenditures for property and equipment$16,119 $22,699 $19,665