Segment Disclosures (Tables)

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Revenues:
Homebuilding Mid Atlantic	$	1,146,559	$	1,282,504	$	3,146,501	$	3,632,524
Homebuilding North East	268,237		250,067		684,593		663,012
Homebuilding Mid East	468,727		569,991		1,282,806		1,552,434
Homebuilding South East	628,886		636,883		1,813,611		1,810,764
Mortgage Banking	56,616		37,455		158,121		155,518
Total consolidated revenues	$	2,569,025	$	2,776,900	$	7,085,632	$	7,814,252

Profit before Taxes


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Income before taxes:
Homebuilding Mid Atlantic	$	212,826	$	272,860	$	567,119	$	774,380
Homebuilding North East	48,787		49,614		125,779		116,839
Homebuilding Mid East	75,136		92,364		193,360		246,059
Homebuilding South East	107,666		145,619		339,723		409,895
Mortgage Banking	39,921		18,993		107,191		97,899
Total segment profit before taxes	484,336		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 income	38,680		9,017		101,963		12,856
Reconciling items sub-total	55,004		(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,
	2023		2022		2023		2022
Corporate capital allocation charge:
Homebuilding Mid Atlantic	$	33,994	$	37,305	$	102,509	$	108,514
Homebuilding North East	8,944		7,994		24,542		23,238
Homebuilding Mid East	9,974		14,509		29,453		38,801
Homebuilding South East	21,259		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.

Assets


	September 30, 2023		December 31, 2022
Assets:
Homebuilding Mid Atlantic	$	1,268,489	$	1,152,564
Homebuilding North East	315,502		250,001
Homebuilding Mid East	377,300		378,833
Homebuilding South East	779,355		697,923
Mortgage Banking	465,061		406,456
Total segment assets	3,205,707		2,885,777
Reconciling items:
Cash and cash equivalents	2,876,606		2,503,424
Deferred taxes	148,204		143,585
Intangible assets and goodwill	49,368		49,368
Operating lease right-of-use assets	72,358		71,081
Finance lease right-of-use assets	12,836		13,745
Contract land deposit reserve	(50,183)		(57,060)
Consolidation adjustments and other	57,367		51,053
Reconciling items sub-total	3,166,556		2,775,196
Consolidated assets	$	6,372,263	$	5,660,973