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v3.22.4

Segment Information, Nature of Operations, and Certain Concentrations (Tables) | 12 Months Ended
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Dec. 31, 2022
Segment Reporting [Abstract] |
Revenues | The following tables present certain segment financial data, with reconciliations to the amounts reported for the consolidated company, where applicable:
|  | Year Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Revenues: |  |  |  |  |  |
Homebuilding Mid Atlantic |  | $ | 4,766,329 |  |  | $ | 4,049,871 |  |  | $ | 3,668,542 |
Homebuilding North East |  | 892,543 |  |  | 767,828 |  |  | 538,772 |
Homebuilding Mid East |  | 2,147,262 |  |  | 1,891,729 |  |  | 1,524,667 |
Homebuilding South East |  | 2,520,636 |  |  | 1,992,265 |  |  | 1,596,908 |
Mortgage Banking |  | 199,664 |  |  | 249,332 |  |  | 208,034 |
Consolidated revenues |  | $ | 10,526,434 |  |  | $ | 8,951,025 |  |  | $ | 7,536,923 |
Profit before Taxes |
|  | Year Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Profit before taxes: |  |  |  |  |  |
Homebuilding Mid Atlantic |  | $ | 994,027 |  |  | $ | 734,941 |  |  | $ | 437,849 |
Homebuilding North East |  | 157,333 |  |  | 105,432 |  |  | 50,677 |
Homebuilding Mid East |  | 343,236 |  |  | 271,756 |  |  | 168,605 |
Homebuilding South East |  | 577,030 |  |  | 329,982 |  |  | 205,029 |
Mortgage Banking |  | 125,756 |  |  | 176,251 |  |  | 143,319 |
Total segment profit |  | 2,197,382 |  |  | 1,618,362 |  |  | 1,005,479 |
Reconciling items: |  |  |  |  |  |
Contract land deposit reserve adjustment (1) |  | (27,300) |  |  | 22,163 |  |  | (24,633) |
Equity-based compensation expense (2) |  | (82,537) |  |  | (58,234) |  |  | (50,794) |
Corporate capital allocation (3) |  | 302,904 |  |  | 252,787 |  |  | 239,233 |
Unallocated corporate overhead |  | (129,998) |  |  | (139,611) |  |  | (114,921) |
Consolidation adjustments and other (4) |  | (1,719) |  |  | (56,511) |  |  | 54,561 |
Corporate interest income |  | 32,457 |  |  | 2,840 |  |  | 8,464 |
Corporate interest expense |  | (37,995) |  |  | (51,393) |  |  | (39,356) |
Reconciling items sub-total |  | 55,812 |  |  | (27,959) |  |  | 72,554 |
Consolidated profit before taxes |  | $ | 2,253,194 |  |  | $ | 1,590,403 |  |  | $ | 1,078,033 |
(1)This item represents changes to the contract land deposit impairment reserve, which are not allocated to the reportable segments. See further discussion of contract land deposit impairment charges in Note 3. (2)The increase in equity-based compensation expense in 2022 was primarily attributable to a four year block grant of Options and RSUs in May 2022. See Note 12 for additional discussion of equity-based compensation. (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 years presented:
|  | Year Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Corporate capital allocation charge: |  |  |  |  |  |
Homebuilding Mid Atlantic |  | $ | 143,251 |  |  | $ | 124,316 |  |  | $ | 124,426 |
Homebuilding North East |  | 30,623 |  |  | 25,431 |  |  | 22,850 |
Homebuilding Mid East |  | 51,376 |  |  | 43,686 |  |  | 40,256 |
Homebuilding South East |  | 77,654 |  |  | 59,354 |  |  | 51,701 |
Total corporate capital allocation charge |  | $ | 302,904 |  |  | $ | 252,787 |  |  | $ | 239,233 |
(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. The consolidation adjustment in 2021 was negatively impacted by a higher number of units under construction as of the end of the year compared to the prior year end, resulting in an increase in the reversal of intercompany profits year over year through the consolidation adjustment. In 2022, 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 year over year. This favorable impact was offset by the recognition of previously deferred home package costs that included higher priced lumber.
Assets |
|  | As of December 31,
|  | 2022 |  | 2021
Assets: |  |  |  |
Homebuilding Mid Atlantic |  | $ | 1,152,564 |  |  | $ | 1,322,818 |
Homebuilding North East |  | 250,001 |  |  | 235,048 |
Homebuilding Mid East |  | 378,833 |  |  | 438,700 |
Homebuilding South East |  | 697,923 |  |  | 629,198 |
Mortgage Banking |  | 406,456 |  |  | 371,685 |
Total segment assets |  | 2,885,777 |  |  | 2,997,449 |
Reconciling items: |  |  |  |
Cash and cash equivalents |  | 2,503,424 |  |  | 2,545,069 |
Deferred taxes |  | 143,585 |  |  | 132,894 |
Intangible assets and goodwill |  | 49,368 |  |  | 49,368 |
Operating lease right-of-use assets |  | 71,081 |  |  | 59,010 |
Finance lease right-of-use assets |  | 13,745 |  |  | 14,578 |
Contract land deposit reserve |  | (57,060) |  |  | (30,041) |
Consolidation adjustments and other |  | 51,053 |  |  | 66,148 |
Reconciling items sub-total |  | 2,775,196 |  |  | 2,837,026 |
Consolidated assets |  | $ | 5,660,973 |  |  | $ | 5,834,475 |
Interest Income |
|  | Year Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Interest income: |  |  |  |  |  |
Mortgage Banking |  | $ | 11,853 |  |  | $ | 8,725 |  |  | $ | 8,930 |
Total segment interest income |  | 11,853 |  |  | 8,725 |  |  | 8,930 |
Other unallocated interest income |  | 32,458 |  |  | 3,154 |  |  | 8,549 |
Consolidated interest income |  | $ | 44,311 |  |  | $ | 11,879 |  |  | $ | 17,479 |
Interest Expense |
|  | Year Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Interest expense: |  |  |  |  |  |
Homebuilding Mid Atlantic |  | $ | 143,322 |  |  | $ | 124,385 |  |  | $ | 124,486 |
Homebuilding North East |  | 30,658 |  |  | 25,463 |  |  | 22,859 |
Homebuilding Mid East |  | 51,384 |  |  | 43,695 |  |  | 40,261 |
Homebuilding South East |  | 77,685 |  |  | 59,381 |  |  | 51,729 |
Mortgage Banking |  | 1,384 |  |  | 1,587 |  |  | 1,414 |
Total segment interest expense |  | 304,433 |  |  | 254,511 |  |  | 240,749 |
Corporate capital allocation (3) |  | (302,904) |  |  | (252,787) |  |  | (239,233) |
Senior Notes and other interest |  | 37,995 |  |  | 51,393 |  |  | 39,356 |
Consolidated interest expense |  | $ | 39,524 |  |  | $ | 53,117 |  |  | $ | 40,872 |
Depreciation and Amortization |
|  | Year Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Depreciation and amortization: |  |  |  |  |  |
Homebuilding Mid Atlantic |  | $ | 5,923 |  |  | $ | 6,183 |  |  | $ | 6,806 |
Homebuilding North East |  | 1,216 |  |  | 1,628 |  |  | 1,800 |
Homebuilding Mid East |  | 3,948 |  |  | 4,259 |  |  | 4,969 |
Homebuilding South East |  | 3,093 |  |  | 3,325 |  |  | 3,636 |
Mortgage Banking |  | 1,135 |  |  | 1,283 |  |  | 1,534 |
Total segment depreciation and amortization |  | 15,315 |  |  | 16,678 |  |  | 18,745 |
Unallocated corporate |  | 2,081 |  |  | 2,785 |  |  | 3,247 |
Consolidated depreciation and amortization |  | $ | 17,396 |  |  | $ | 19,463 |  |  | $ | 21,992 |
Expenditures for Property and Equipment |
|  | Year Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Expenditures for property and equipment: |  |  |  |  |  |
Homebuilding Mid Atlantic |  | $ | 7,033 |  |  | $ | 7,073 |  |  | $ | 5,712 |
Homebuilding North East |  | 1,420 |  |  | 1,062 |  |  | 1,083 |
Homebuilding Mid East |  | 4,504 |  |  | 4,813 |  |  | 5,041 |
Homebuilding South East |  | 3,993 |  |  | 4,142 |  |  | 3,818 |
Mortgage Banking |  | 1,062 |  |  | 401 |  |  | 265 |
Total segment expenditures for property and equipment |  | 18,012 |  |  | 17,491 |  |  | 15,919 |
Unallocated corporate |  | 416 |  |  | 384 |  |  | 200 |
Consolidated expenditures for property and equipment |  | $ | 18,428 |  |  | $ | 17,875 |  |  | $ | 16,119 |
Corporate Capital Allocation Charge |
|  | Year Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Corporate capital allocation charge: |  |  |  |  |  |
Homebuilding Mid Atlantic |  | $ | 143,251 |  |  | $ | 124,316 |  |  | $ | 124,426 |
Homebuilding North East |  | 30,623 |  |  | 25,431 |  |  | 22,850 |
Homebuilding Mid East |  | 51,376 |  |  | 43,686 |  |  | 40,256 |
Homebuilding South East |  | 77,654 |  |  | 59,354 |  |  | 51,701 |
Total corporate capital allocation charge |  | $ | 302,904 |  |  | $ | 252,787 |  |  | $ | 239,233 |

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