Segment Disclosures (Tables)

3 Months Ended

Mar. 31, 2023

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,
		2023		2022
Revenues:
Homebuilding Mid Atlantic		$	941,148	$	1,141,708
Homebuilding North East		183,430		175,551
Homebuilding Mid East		402,397		461,405
Homebuilding South East		604,358		530,563
Mortgage Banking		46,944		69,182
Total consolidated revenues		$	2,178,277	$	2,378,409

Profit before Taxes


	Three Months Ended March 31,
		2023		2022
Income before taxes:
Homebuilding Mid Atlantic		$	159,038	$	249,781
Homebuilding North East		32,060		25,928
Homebuilding Mid East		56,468		71,183
Homebuilding South East		125,409		113,454
Mortgage Banking		29,427		50,106
Total segment profit before taxes		402,402		510,452
Reconciling items:
Contract land deposit reserve adjustment (1)		3,591		5,926
Equity-based compensation expense (2)		(22,277)		(11,668)
Corporate capital allocation (3)		69,074		69,744
Unallocated corporate overhead		(45,965)		(45,261)
Consolidation adjustments and other (4)		4,000		48,760
Corporate interest expense		(6,954)		(12,755)
Corporate interest income		29,939		747
Reconciling items sub-total		31,408		55,493
Consolidated income before taxes		$	433,810	$	565,945

(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, 2023 was primarily attributable to the issuance of a four year block grant of Options and RSUs in the second quarter of 2022.

(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,
		2023		2022
Corporate capital allocation charge:
Homebuilding Mid Atlantic		$	33,179	$	34,087
Homebuilding North East		7,325		7,087
Homebuilding Mid East		9,660		11,417
Homebuilding South East		18,910		17,153
Total		$	69,074	$	69,744

(4)The consolidation adjustments and other in each period are primarily driven by changes in units under construction as well as significant fluctuations in lumber prices year over year. 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. In the first quarter of 2023, the consolidation adjustment was negatively impacted by the recognition of previously deferred home package costs that included higher priced lumber. This impact was offset partially by a reduction in the number of units under construction year over year, resulting in a decrease in intercompany profits deferred, as compared to the first quarter of 2022.

Assets


	March 31, 2023		December 31, 2022
Assets:
Homebuilding Mid Atlantic	$	1,219,228	$	1,152,564
Homebuilding North East	277,044		250,001
Homebuilding Mid East	364,849		378,833
Homebuilding South East	689,953		697,923
Mortgage Banking	436,806		406,456
Total segment assets	2,987,880		2,885,777
Reconciling items:
Cash and cash equivalents	2,786,503		2,503,424
Deferred taxes	147,363		143,585
Intangible assets and goodwill	49,368		49,368
Operating lease right-of-use assets	71,593		71,081
Finance lease right-of-use assets	13,492		13,745
Contract land deposit reserve	(53,469)		(57,060)
Consolidation adjustments and other	73,175		51,053
Reconciling items sub-total	3,088,025		2,775,196
Consolidated assets	$	6,075,905	$	5,660,973