Segment Disclosures (Tables)

6 Months Ended

Jun. 30, 2022

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


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Revenues:
Homebuilding Mid Atlantic	$	1,208,312	$	1,048,416	$	2,350,020	$	1,984,556
Homebuilding North East	237,394		193,245		412,945		355,438
Homebuilding Mid East	521,038		478,179		982,442		903,132
Homebuilding South East	643,318		504,720		1,173,882		945,145
Mortgage Banking	48,881		59,038		118,063		136,773
Total consolidated revenues	$	2,658,943	$	2,283,598	$	5,037,352	$	4,325,044

Profit before Taxes


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Income before taxes:
Homebuilding Mid Atlantic	$	251,739	$	174,481	$	501,520	$	303,548
Homebuilding North East	41,297		21,510		67,225		36,737
Homebuilding Mid East	82,512		59,887		153,695		108,828
Homebuilding South East	150,822		78,919		264,276		135,584
Mortgage Banking	28,800		40,372		78,906		99,934
Total segment profit before taxes	555,170		375,169		1,065,622		684,631
Reconciling items:
Contract land deposit recoveries (1)	419		7,178		6,345		13,374
Equity-based compensation expense (2)	(20,087)		(13,379)		(31,755)		(27,850)
Corporate capital allocation (3)	77,512		63,032		147,256		124,583
Unallocated corporate overhead	(32,282)		(33,668)		(77,543)		(73,804)
Consolidation adjustments and other (4)	5,096		31,944		54,603		34,330
Corporate interest expense	(11,816)		(12,811)		(24,571)		(25,793)
Reconciling items sub-total	18,842		42,296		74,335		44,840
Consolidated income before taxes	$	574,012	$	417,465	$	1,139,957	$	729,471

(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 and six months ended June 30, 2022 was primarily attributable to a four year block grant of Options and RSUs in May 2022. See additional discussion of equity-based compensation in Note 7.

(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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Corporate capital allocation charge:
Homebuilding Mid Atlantic	$	37,121	$	31,135	$	71,208	$	61,731
Homebuilding North East	8,158		6,457		15,245		12,495
Homebuilding Mid East	12,875		11,066		24,292		21,690
Homebuilding South East	19,358		14,374		36,511		28,667
Total	$	77,512	$	63,032	$	147,256	$	124,583

(4)The change in consolidation adjustments and other for the three and six month periods of 2022 compared to the respective 2021 periods was primarily driven by changes in lumber prices in the respective periods. Our reportable segments' results include the intercompany profits of our production facilities for home packages delivered to our homebuilding divisions. Costs related to homes not yet settled are reversed through the consolidation adjustment and recorded in inventory. These costs are subsequently recorded through the consolidation adjustment when the respective homes are settled. The decrease in the three month period ended June 30, 2022 compared to the same period in 2021 was primarily due to lower lumber prices quarter over quarter. The increase for the six month period ended June 30, 2022 compared to the same period in 2021 was primarily attributable to the overall higher lumber costs year over year driven by higher lumber costs in the first quarter of 2022 compared to the first quarter of 2021.

Assets


	June 30, 2022		December 31, 2021
Assets:
Homebuilding Mid Atlantic	$	1,408,484	$	1,322,818
Homebuilding North East	286,776		235,048
Homebuilding Mid East	538,877		438,700
Homebuilding South East	780,118		629,198
Mortgage Banking	402,775		371,685
Total segment assets	3,417,030		2,997,449
Reconciling items:
Cash and cash equivalents	1,483,445		2,545,069
Deferred taxes	139,263		132,894
Intangible assets and goodwill	49,368		49,368
Operating lease right-of-use assets	68,323		59,010
Finance lease right-of-use assets	14,364		14,578
Contract land deposit reserve	(23,516)		(30,041)
Consolidation adjustments and other	139,422		66,148
Reconciling items sub-total	1,870,669		2,837,026
Consolidated assets	$	5,287,699	$	5,834,475