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Segment Disclosures
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Segment Disclosures Segment Disclosures
We disclose four homebuilding reportable segments that aggregate geographically our homebuilding operating segments, and our mortgage banking operations presented as one 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 generally 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 these costs are not allocated to our operating segments.  Consolidation adjustments consist of such items necessary to convert the reportable segments’ results, which are predominantly 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 segment revenues, profit and assets with reconciliations to the amounts reported for the consolidated enterprise, where applicable:
 Three Months Ended March 31,
 20212020
Revenues:
Homebuilding Mid Atlantic$936,141 $774,058 
Homebuilding North East162,193 106,136 
Homebuilding Mid East424,952 320,695 
Homebuilding South East440,425 354,818 
Mortgage Banking77,735 26,821 
Total consolidated revenues$2,041,446 $1,582,528 
Three Months Ended March 31,
 20212020
Income before taxes:
Homebuilding Mid Atlantic$129,067 $81,673 
Homebuilding North East15,227 10,151 
Homebuilding Mid East48,941 31,164 
Homebuilding South East56,665 47,144 
Mortgage Banking59,562 11,879 
Total segment profit before taxes309,462 182,011 
Reconciling items:
Contract land deposit recoveries/(impairments) (1)6,196 (35,615)
Equity-based compensation expense (2)(14,471)(7,492)
Corporate capital allocation (3)61,551 56,650 
Unallocated corporate overhead(39,717)(37,639)
Consolidation adjustments and other1,967 9,654 
Corporate interest expense(12,982)(6,194)
Reconciling items sub-total2,544 (20,636)
Consolidated income before taxes$312,006 $161,375 
(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 increase in equity-based compensation expense for the three-month period ended March 31, 2021 was primarily attributable to the reversal of approximately $7,200 in equity based compensation during the first quarter of 2020 related to stock option forfeitures.
(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 March 31,
 20212020
Corporate capital allocation charge:
Homebuilding Mid Atlantic$30,596 $29,755 
Homebuilding North East6,038 5,558 
Homebuilding Mid East10,624 9,363 
Homebuilding South East14,293 11,974 
Total$61,551 $56,650 
 March 31, 2021December 31, 2020
Assets:
Homebuilding Mid Atlantic$1,171,850 $1,140,910 
Homebuilding North East228,644 202,591 
Homebuilding Mid East403,637 377,448 
Homebuilding South East521,124 494,295 
Mortgage Banking407,842 555,278 
Total segment assets2,733,097 2,770,522 
Reconciling items:
Cash and cash equivalents2,753,123 2,714,720 
Deferred taxes134,930 132,980 
Intangible assets and goodwill49,640 49,678 
Operating lease right-of-use assets50,770 53,110 
Finance lease right-of-use assets15,419 15,772 
Contract land deposit reserve(46,008)(52,205)
Consolidation adjustments and other129,837 92,564 
Reconciling items sub-total3,087,711 3,006,619 
Consolidated assets$5,820,808 $5,777,141