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Segment Disclosures
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Disclosures Segment DisclosuresOur homebuilding operations are aggregated geographically into four homebuilding reportable segments and our mortgage banking operations are presented as one 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, Tennessee, Florida and Georgia
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 generally 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 these costs are not allocated to our operating segments. Consolidation adjustments consist of such items necessary to convert the reportable segments’ results, which are predominantly 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 3.00% 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 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,
 2023202220232022
Revenues:
Homebuilding Mid Atlantic$1,146,559 $1,282,504 $3,146,501 $3,632,524 
Homebuilding North East268,237 250,067 684,593 663,012 
Homebuilding Mid East468,727 569,991 1,282,806 1,552,434 
Homebuilding South East628,886 636,883 1,813,611 1,810,764 
Mortgage Banking56,616 37,455 158,121 155,518 
Total consolidated revenues$2,569,025 $2,776,900 $7,085,632 $7,814,252 
Three Months Ended September 30,Nine Months Ended September 30,
 2023202220232022
Income before taxes:
Homebuilding Mid Atlantic$212,826 $272,860 $567,119 $774,380 
Homebuilding North East48,787 49,614 125,779 116,839 
Homebuilding Mid East75,136 92,364 193,360 246,059 
Homebuilding South East107,666 145,619 339,723 409,895 
Mortgage Banking39,921 18,993 107,191 97,899 
Total segment profit before taxes484,336 579,450 1,333,172 1,645,072 
Reconciling items:
Contract land deposit reserve adjustment (1)(3,783)(8,736)6,696 (2,391)
Equity-based compensation expense (2)(26,052)(26,686)(73,488)(58,441)
Corporate capital allocation (3)74,171 81,020 215,862 228,276 
Unallocated corporate overhead(38,376)(22,565)(130,701)(100,109)
Consolidation adjustments and other (4)16,947 (66,182)10,948 (15,417)
Corporate interest expense(6,583)(6,803)(20,126)(31,374)
Corporate interest income38,680 9,017 101,963 12,856 
Reconciling items sub-total55,004 (40,935)111,154 33,400 
Consolidated income before taxes$539,340 $538,515 $1,444,326 $1,678,472 
(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 nine-month period ended September 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 September 30,Nine Months Ended September 30,
 2023202220232022
Corporate capital allocation charge:
Homebuilding Mid Atlantic$33,994 $37,305 $102,509 $108,514 
Homebuilding North East8,944 7,994 24,542 23,238 
Homebuilding Mid East9,974 14,509 29,453 38,801 
Homebuilding South East21,259 21,212 59,358 57,723 
Total$74,171 $81,020 $215,862 $228,276 

(4)The consolidation adjustments and other for the three and nine 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 nine month periods of 2023, the consolidation adjustment was favorably impacted 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 nine month periods of 2022. In the three month period of 2022, the consolidation adjustment was negatively impacted by the recognition of previously deferred home package costs that included significantly higher priced lumber.
 September 30, 2023December 31, 2022
Assets:
Homebuilding Mid Atlantic$1,268,489 $1,152,564 
Homebuilding North East315,502 250,001 
Homebuilding Mid East377,300 378,833 
Homebuilding South East779,355 697,923 
Mortgage Banking465,061 406,456 
Total segment assets3,205,707 2,885,777 
Reconciling items:
Cash and cash equivalents2,876,606 2,503,424 
Deferred taxes148,204 143,585 
Intangible assets and goodwill49,368 49,368 
Operating lease right-of-use assets72,358 71,081 
Finance lease right-of-use assets12,836 13,745 
Contract land deposit reserve(50,183)(57,060)
Consolidation adjustments and other57,367 51,053 
Reconciling items sub-total3,166,556 2,775,196 
Consolidated assets$6,372,263 $5,660,973