Segment Disclosures (Tables)

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Revenues

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,
	2022		2021		2022		2021
Revenues:
Homebuilding Mid Atlantic	$	1,282,504	$	1,082,710	$	3,632,524	$	3,067,267
Homebuilding North East	250,067		213,087		663,012		568,524
Homebuilding Mid East	569,991		503,232		1,552,434		1,406,364
Homebuilding South East	636,883		537,586		1,810,764		1,482,731
Mortgage Banking	37,455		59,025		155,518		195,798
Total consolidated revenues	$	2,776,900	$	2,395,640	$	7,814,252	$	6,720,684

Profit before Taxes

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Income before taxes:
Homebuilding Mid Atlantic	$	272,860	$	222,504	$	774,380	$	526,052
Homebuilding North East	49,614		33,885		116,839		70,622
Homebuilding Mid East	92,364		81,021		246,059		189,849
Homebuilding South East	145,619		100,688		409,895		236,272
Mortgage Banking	18,993		40,249		97,899		140,183
Total segment profit before taxes	579,450		478,347		1,645,072		1,162,978
Reconciling items:
Contract land deposit reserve adjustment (1)	(8,736)		4,126		(2,391)		17,500
Equity-based compensation expense (2)	(26,686)		(15,009)		(58,441)		(42,859)
Corporate capital allocation (3)	81,020		64,055		228,276		188,638
Unallocated corporate overhead	(22,565)		(27,801)		(100,109)		(101,605)
Consolidation adjustments and other (4)	(57,165)		(56,786)		(2,561)		(22,456)
Corporate interest expense	(6,803)		(12,805)		(31,374)		(38,598)
Reconciling items sub-total	(40,935)		(44,220)		33,400		620
Consolidated income before taxes	$	538,515	$	434,127	$	1,678,472	$	1,163,598

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

(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,
	2022		2021		2022		2021
Corporate capital allocation charge:
Homebuilding Mid Atlantic	$	37,305	$	31,057	$	108,514	$	92,788
Homebuilding North East	7,994		6,719		23,238		19,214
Homebuilding Mid East	14,509		11,114		38,801		32,804
Homebuilding South East	21,212		15,165		57,723		43,832
Total	$	81,020	$	64,055	$	228,276	$	188,638

(4)The consolidation adjustments and other for the three and nine month periods of 2022 and 2021 is 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. Due to higher lumber prices in the first half of both 2022 and 2021, the previously reversed intercompany profits were recognized in the third quarter of the respective years through the consolidation adjustment as homes were settled, which negatively impacted margins in the respective periods.

Assets

	September 30, 2022		December 31, 2021
Assets:
Homebuilding Mid Atlantic	$	1,289,036	$	1,322,818
Homebuilding North East	268,794		235,048
Homebuilding Mid East	515,947		438,700
Homebuilding South East	791,054		629,198
Mortgage Banking	464,293		371,685
Total segment assets	3,329,124		2,997,449
Reconciling items:
Cash and cash equivalents	1,748,506		2,545,069
Deferred taxes	144,590		132,894
Intangible assets and goodwill	49,368		49,368
Operating lease right-of-use assets	69,933		59,010
Finance lease right-of-use assets	13,875		14,578
Contract land deposit reserve	(32,240)		(30,041)
Consolidation adjustments and other	66,378		66,148
Reconciling items sub-total	2,060,410		2,837,026
Consolidated assets	$	5,389,534	$	5,834,475