Segment Disclosures (Tables)

6 Months Ended

Jun. 30, 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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenues:
Homebuilding Mid Atlantic	$	1,058,794	$	1,208,312	$	1,999,942	$	2,350,020
Homebuilding North East	232,926		237,394		416,356		412,945
Homebuilding Mid East	411,682		521,038		814,079		982,442
Homebuilding South East	580,367		643,318		1,184,725		1,173,882
Mortgage Banking	54,561		48,881		101,505		118,063
Total consolidated revenues	$	2,338,330	$	2,658,943	$	4,516,607	$	5,037,352

Profit before Taxes


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Income before taxes:
Homebuilding Mid Atlantic	$	195,254	$	251,739	$	354,292	$	501,520
Homebuilding North East	44,932		41,297		76,992		67,225
Homebuilding Mid East	61,756		82,512		118,224		153,695
Homebuilding South East	106,648		150,822		232,058		264,276
Mortgage Banking	37,843		28,800		67,270		78,906
Total segment profit before taxes	446,433		555,170		848,836		1,065,622
Reconciling items:
Contract land deposit reserve adjustment (1)	6,888		419		10,479		6,345
Equity-based compensation expense (2)	(25,159)		(20,087)		(47,436)		(31,755)
Corporate capital allocation (3)	72,617		77,512		141,691		147,256
Unallocated corporate overhead	(46,360)		(32,282)		(92,325)		(77,543)
Consolidation adjustments and other (4)	(9,998)		2,004		(5,999)		50,764
Corporate interest expense	(6,589)		(11,816)		(13,543)		(24,571)
Corporate interest income	33,344		3,092		63,283		3,839
Reconciling items sub-total	24,743		18,842		56,150		74,335
Consolidated income before taxes	$	471,176	$	574,012	$	904,986	$	1,139,957

(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, 2023 was primarily attributable to a four year block grant of Options and RSUs issued in May 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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Corporate capital allocation charge:
Homebuilding Mid Atlantic	$	35,337	$	37,121	$	68,516	$	71,208
Homebuilding North East	8,272		8,158		15,597		15,245
Homebuilding Mid East	9,819		12,875		19,479		24,292
Homebuilding South East	19,189		19,358		38,099		36,511
Total	$	72,617	$	77,512	$	141,691	$	147,256

(4)The consolidation adjustments and other for the three and six month periods of 2023 and 2022 is primarily driven by 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 both the three and six month periods of 2023, the consolidation adjustment was negatively impacted by the recognition of previously deferred home package costs that included significantly 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 three and six month periods of 2022.

Assets


	June 30, 2023		December 31, 2022
Assets:
Homebuilding Mid Atlantic	$	1,271,377	$	1,152,564
Homebuilding North East	317,956		250,001
Homebuilding Mid East	393,767		378,833
Homebuilding South East	752,310		697,923
Mortgage Banking	553,926		406,456
Total segment assets	3,289,336		2,885,777
Reconciling items:
Cash and cash equivalents	2,678,709		2,503,424
Deferred taxes	146,663		143,585
Intangible assets and goodwill	49,368		49,368
Operating lease right-of-use assets	73,469		71,081
Finance lease right-of-use assets	13,231		13,745
Contract land deposit reserve	(46,401)		(57,060)
Consolidation adjustments and other	62,400		51,053
Reconciling items sub-total	2,977,439		2,775,196
Consolidated assets	$	6,266,775	$	5,660,973