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Segment Disclosures (Tables) | 6 Months Ended
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Jun. 30, 2022
Segment Reporting [Abstract] |
Revenues | The f ollowing 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,
|  | 2022 |  | 2021 |  | 2022 |  | 2021
Revenues: |  |  |  |  |  |  |  |
Homebuilding Mid Atlantic |  | $ | 1,208,312 |  |  | $ | 1,048,416 |  |  | $ | 2,350,020 |  |  | $ | 1,984,556 |
Homebuilding North East |  | 237,394 |  |  | 193,245 |  |  | 412,945 |  |  | 355,438 |
Homebuilding Mid East |  | 521,038 |  |  | 478,179 |  |  | 982,442 |  |  | 903,132 |
Homebuilding South East |  | 643,318 |  |  | 504,720 |  |  | 1,173,882 |  |  | 945,145 |
Mortgage Banking |  | 48,881 |  |  | 59,038 |  |  | 118,063 |  |  | 136,773 |
Total consolidated revenues |  | $ | 2,658,943 |  |  | $ | 2,283,598 |  |  | $ | 5,037,352 |  |  | $ | 4,325,044 |
Profit before Taxes |
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2022 |  | 2021 |  | 2022 |  | 2021
Income before taxes: |  |  |  |  |  |  |  |
Homebuilding Mid Atlantic |  | $ | 251,739 |  |  | $ | 174,481 |  |  | $ | 501,520 |  |  | $ | 303,548 |
Homebuilding North East |  | 41,297 |  |  | 21,510 |  |  | 67,225 |  |  | 36,737 |
Homebuilding Mid East |  | 82,512 |  |  | 59,887 |  |  | 153,695 |  |  | 108,828 |
Homebuilding South East |  | 150,822 |  |  | 78,919 |  |  | 264,276 |  |  | 135,584 |
Mortgage Banking |  | 28,800 |  |  | 40,372 |  |  | 78,906 |  |  | 99,934 |
Total segment profit before taxes |  | 555,170 |  |  | 375,169 |  |  | 1,065,622 |  |  | 684,631 |
Reconciling items: |  |  |  |  |  |  |  |
Contract land deposit recoveries (1) |  | 419 |  |  | 7,178 |  |  | 6,345 |  |  | 13,374 |
Equity-based compensation expense (2) |  | (20,087) |  |  | (13,379) |  |  | (31,755) |  |  | (27,850) |
Corporate capital allocation (3) |  | 77,512 |  |  | 63,032 |  |  | 147,256 |  |  | 124,583 |
Unallocated corporate overhead |  | (32,282) |  |  | (33,668) |  |  | (77,543) |  |  | (73,804) |
Consolidation adjustments and other (4) |  | 5,096 |  |  | 31,944 |  |  | 54,603 |  |  | 34,330 |
Corporate interest expense |  | (11,816) |  |  | (12,811) |  |  | (24,571) |  |  | (25,793) |
Reconciling items sub-total |  | 18,842 |  |  | 42,296 |  |  | 74,335 |  |  | 44,840 |
Consolidated income before taxes |  | $ | 574,012 |  |  | $ | 417,465 |  |  | $ | 1,139,957 |  |  | $ | 729,471 |
(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, 2022 was primarily attributable to a four year block grant of Options and RSUs in May 2022. See additional discussion of equity-based compensation in Note 7. (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,
|  | 2022 |  | 2021 |  | 2022 |  | 2021
Corporate capital allocation charge: |  |  |  |  |  |  |  |
Homebuilding Mid Atlantic |  | $ | 37,121 |  |  | $ | 31,135 |  |  | $ | 71,208 |  |  | $ | 61,731 |
Homebuilding North East |  | 8,158 |  |  | 6,457 |  |  | 15,245 |  |  | 12,495 |
Homebuilding Mid East |  | 12,875 |  |  | 11,066 |  |  | 24,292 |  |  | 21,690 |
Homebuilding South East |  | 19,358 |  |  | 14,374 |  |  | 36,511 |  |  | 28,667 |
Total |  | $ | 77,512 |  |  | $ | 63,032 |  |  | $ | 147,256 |  |  | $ | 124,583 |
(4)The change in consolidation adjustments and other for the three and six month periods of 2022 compared to the respective 2021 periods was 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. The decrease in the three month period ended June 30, 2022 compared to the same period in 2021 was primarily due to lower lumber prices quarter over quarter. The increase for the six month period ended June 30, 2022 compared to the same period in 2021 was primarily attributable to the overall higher lumber costs year over year driven by higher lumber costs in the first quarter of 2022 compared to the first quarter of 2021.
Assets |
|  | June 30, 2022 |  | December 31, 2021
Assets: |  |  |  |
Homebuilding Mid Atlantic |  | $ | 1,408,484 |  |  | $ | 1,322,818 |
Homebuilding North East |  | 286,776 |  |  | 235,048 |
Homebuilding Mid East |  | 538,877 |  |  | 438,700 |
Homebuilding South East |  | 780,118 |  |  | 629,198 |
Mortgage Banking |  | 402,775 |  |  | 371,685 |
Total segment assets |  | 3,417,030 |  |  | 2,997,449 |
Reconciling items: |  |  |  |
Cash and cash equivalents |  | 1,483,445 |  |  | 2,545,069 |
Deferred taxes |  | 139,263 |  |  | 132,894 |
Intangible assets and goodwill |  | 49,368 |  |  | 49,368 |
Operating lease right-of-use assets |  | 68,323 |  |  | 59,010 |
Finance lease right-of-use assets |  | 14,364 |  |  | 14,578 |
Contract land deposit reserve |  | (23,516) |  |  | (30,041) |
Consolidation adjustments and other |  | 139,422 |  |  | 66,148 |
Reconciling items sub-total |  | 1,870,669 |  |  | 2,837,026 |
Consolidated assets |  | $ | 5,287,699 |  |  | $ | 5,834,475 |

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