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v3.23.1

Segment Disclosures (Tables) | 3 Months Ended
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Mar. 31, 2023
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 March 31,
|  |  |  |  |  | 2023 |  | 2022
Revenues: |  |  |  |  |  |  |  |
Homebuilding Mid Atlantic |  |  |  |  |  | $ | 941,148 |  |  | $ | 1,141,708 |
Homebuilding North East |  |  |  |  |  | 183,430 |  |  | 175,551 |
Homebuilding Mid East |  |  |  |  |  | 402,397 |  |  | 461,405 |
Homebuilding South East |  |  |  |  |  | 604,358 |  |  | 530,563 |
Mortgage Banking |  |  |  |  |  | 46,944 |  |  | 69,182 |
Total consolidated revenues |  |  |  |  |  | $ | 2,178,277 |  |  | $ | 2,378,409 |
Profit before Taxes |
|  |  |  | Three Months Ended March 31,
|  |  |  |  |  | 2023 |  | 2022
Income before taxes: |  |  |  |  |  |  |  |
Homebuilding Mid Atlantic |  |  |  |  |  | $ | 159,038 |  |  | $ | 249,781 |
Homebuilding North East |  |  |  |  |  | 32,060 |  |  | 25,928 |
Homebuilding Mid East |  |  |  |  |  | 56,468 |  |  | 71,183 |
Homebuilding South East |  |  |  |  |  | 125,409 |  |  | 113,454 |
Mortgage Banking |  |  |  |  |  | 29,427 |  |  | 50,106 |
Total segment profit before taxes |  |  |  |  |  | 402,402 |  |  | 510,452 |
Reconciling items: |  |  |  |  |  |  |  |
Contract land deposit reserve adjustment (1) |  |  |  |  |  | 3,591 |  |  | 5,926 |
Equity-based compensation expense (2) |  |  |  |  |  | (22,277) |  |  | (11,668) |
Corporate capital allocation (3) |  |  |  |  |  | 69,074 |  |  | 69,744 |
Unallocated corporate overhead |  |  |  |  |  | (45,965) |  |  | (45,261) |
Consolidation adjustments and other (4) |  |  |  |  |  | 4,000 |  |  | 48,760 |
Corporate interest expense |  |  |  |  |  | (6,954) |  |  | (12,755) |
Corporate interest income |  |  |  |  |  | 29,939 |  |  | 747 |
Reconciling items sub-total |  |  |  |  |  | 31,408 |  |  | 55,493 |
Consolidated income before taxes |  |  |  |  |  | $ | 433,810 |  |  | $ | 565,945 |
(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-month period ended March 31, 2023 was primarily attributable to the issuance of a four year block grant of Options and RSUs in the second quarter of 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 March 31,
|  |  |  |  |  | 2023 |  | 2022
Corporate capital allocation charge: |  |  |  |  |  |  |  |
Homebuilding Mid Atlantic |  |  |  |  |  | $ | 33,179 |  |  | $ | 34,087 |
Homebuilding North East |  |  |  |  |  | 7,325 |  |  | 7,087 |
Homebuilding Mid East |  |  |  |  |  | 9,660 |  |  | 11,417 |
Homebuilding South East |  |  |  |  |  | 18,910 |  |  | 17,153 |
Total |  |  |  |  |  | $ | 69,074 |  |  | $ | 69,744 |
(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. In the first quarter of 2023, the consolidation adjustment was negatively impacted by the recognition of previously deferred home package costs that included 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 first quarter of 2022.
Assets |
|  | March 31, 2023 |  | December 31, 2022
Assets: |  |  |  |
Homebuilding Mid Atlantic |  | $ | 1,219,228 |  |  | $ | 1,152,564 |
Homebuilding North East |  | 277,044 |  |  | 250,001 |
Homebuilding Mid East |  | 364,849 |  |  | 378,833 |
Homebuilding South East |  | 689,953 |  |  | 697,923 |
Mortgage Banking |  | 436,806 |  |  | 406,456 |
Total segment assets |  | 2,987,880 |  |  | 2,885,777 |
Reconciling items: |  |  |  |
Cash and cash equivalents |  | 2,786,503 |  |  | 2,503,424 |
Deferred taxes |  | 147,363 |  |  | 143,585 |
Intangible assets and goodwill |  | 49,368 |  |  | 49,368 |
Operating lease right-of-use assets |  | 71,593 |  |  | 71,081 |
Finance lease right-of-use assets |  | 13,492 |  |  | 13,745 |
Contract land deposit reserve |  | (53,469) |  |  | (57,060) |
Consolidation adjustments and other |  | 73,175 |  |  | 51,053 |
Reconciling items sub-total |  | 3,088,025 |  |  | 2,775,196 |
Consolidated assets |  | $ | 6,075,905 |  |  | $ | 5,660,973 |

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