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Segment Information, Nature of Operations, and Certain Concentrations
 12 Months Ended
Dec. 31, 2021
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-four 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 22% of our 2021 homebuilding revenues from the Washington, D.C. metropolitan area.
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,
 202120202019
Revenues:   
Homebuilding Mid Atlantic$4,049,871 $3,668,542 $3,901,573 
Homebuilding North East767,828 538,772 514,804 
Homebuilding Mid East1,891,729 1,524,667 1,501,139 
Homebuilding South East1,992,265 1,596,908 1,303,328 
Mortgage Banking249,332 208,034 167,820 
Consolidated revenues$8,951,025 $7,536,923 $7,388,664 
 Year Ended December 31,
 202120202019
Profit before taxes:   
Homebuilding Mid Atlantic$734,941 $437,849 $478,537 
Homebuilding North East105,432 50,677 51,728 
Homebuilding Mid East271,756 168,605 173,374 
Homebuilding South East329,982 205,029 155,144 
Mortgage Banking176,251 143,319 105,292 
Total segment profit1,618,362 1,005,479 964,075 
Reconciling items:   
Contract land deposit reserve adjustment (1)22,163 (24,633)1,644 
Equity-based compensation expense (2)(58,234)(50,794)(78,532)
Corporate capital allocation (3)252,787 239,233 224,468 
Unallocated corporate overhead(139,611)(114,921)(105,125)
Consolidation adjustments and other (4)(53,671)63,025 43,486 
Corporate interest expense(51,393)(39,356)(24,221)
Reconciling items sub-total(27,959)72,554 61,720 
Consolidated profit before taxes$1,590,403 $1,078,033 $1,025,795 

(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)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,
 202120202019
Corporate capital allocation charge:   
Homebuilding Mid Atlantic$124,316 $124,426 $123,130 
Homebuilding North East25,431 22,850 19,755 
Homebuilding Mid East43,686 40,256 37,263 
Homebuilding South East59,354 51,701 44,320 
Total corporate capital allocation charge$252,787 $239,233 $224,468 

(4)    The decrease in consolidation adjustments and other for 2021 compared to 2020 is driven by changes in lumber prices in 2021. Our reportable segments' results include the intercompany profits of our production facilities for home packages delivered to our homebuilding divisions. For homes not yet settled, these intercompany profits are reversed through the consolidation adjustments. Due to the significantly higher lumber prices in the first half of 2021, the previously reversed intercompany profits were recognized in subsequent quarters through the consolidation adjustment as homes were settled, and our consolidated homebuilding margins were negatively impacted by the higher lumber costs.

 As of December 31,
 20212020
Assets:  
Homebuilding Mid Atlantic$1,322,818 $1,140,910 
Homebuilding North East235,048 202,591 
Homebuilding Mid East438,700 377,448 
Homebuilding South East629,198 494,295 
Mortgage Banking371,685 555,278 
Total segment assets2,997,449 2,770,522 
Reconciling items:  
Cash and cash equivalents2,545,069 2,714,720 
Deferred taxes132,894 132,980 
Intangible assets and goodwill49,368 49,678 
Operating lease right-of-use assets59,010 53,110 
Finance lease right-of-use assets14,578 15,772 
Contract land deposit reserve(30,041)(52,205)
Consolidation adjustments and other66,148 92,564 
Reconciling items sub-total2,837,026 3,006,619 
Consolidated assets$5,834,475 $5,777,141 

 Year Ended December 31,
 202120202019
Interest income:   
Mortgage Banking$8,725 $8,930 $12,142 
Total segment interest income8,725 8,930 12,142 
Other unallocated interest income3,154 8,549 20,635 
Consolidated interest income$11,879 $17,479 $32,777 
 Year Ended December 31,
 202120202019
Interest expense:   
Homebuilding Mid Atlantic$124,385 $124,486 $123,178 
Homebuilding North East25,463 22,859 19,804 
Homebuilding Mid East43,695 40,261 37,266 
Homebuilding South East59,381 51,729 44,334 
Mortgage Banking1,587 1,414 1,045 
Total segment interest expense254,511 240,749 225,627 
Corporate capital allocation (3)(252,787)(239,233)(224,468)
Senior Notes and other interest51,393 39,356 24,221 
Consolidated interest expense$53,117 $40,872 $25,380 
 Year Ended December 31,
 202120202019
Depreciation and amortization:   
Homebuilding Mid Atlantic$6,183 $6,806 $7,069 
Homebuilding North East1,628 1,800 1,411 
Homebuilding Mid East4,259 4,969 4,348 
Homebuilding South East3,325 3,636 3,086 
Mortgage Banking1,283 1,534 1,581 
Total segment depreciation and amortization16,678 18,745 17,495 
Unallocated corporate2,785 3,247 3,323 
Consolidated depreciation and amortization$19,463 $21,992 $20,818 
 Year Ended December 31,
 202120202019
Expenditures for property and equipment:   
Homebuilding Mid Atlantic$7,073 $5,712 $9,218 
Homebuilding North East1,062 1,083 2,000 
Homebuilding Mid East4,813 5,041 5,221 
Homebuilding South East4,142 3,818 3,944 
Mortgage Banking401 265 899 
Total segment expenditures for property and equipment17,491 15,919 21,282 
Unallocated corporate384 200 1,417 
Consolidated expenditures for property and equipment$17,875 $16,119 $22,699