Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Components of Income Tax Expense (Benefit)

Our provision for income taxes for the years ended December 31, 2023, 2022 and 2021 consisted of the following:


	Year Ended December 31,
	2023		2022		2021
	(Dollars in thousands)
Current tax provision:
Federal	$	87,445	$	174,965	$	148,741
State	27,247		54,060		35,784
Total current	114,692		229,025		184,525

Deferred tax provision:
Federal	8,802		(26,030)		(6,699)
State	1,606		(5,280)		211
Total deferred	10,408		(31,310)		(6,488)
Provision for income taxes	$	125,100	$	197,715	$	178,037

Schedule of Effective Income Tax Rate Reconciliation

The provision for income taxes differs from the amount that would be computed by applying the statutory federal income tax rate of 21% in 2023, 2022 and 2021 to income before income taxes as a result of the following:


	Year Ended December 31,
	2023			2022			2021
	(Dollars in thousands)
Tax expense computed at federal statutory rate	$	110,482		$	159,569		$	157,856
State income tax expense, net of federal benefit	19,523			30,213			26,441
Limitation on executive compensation	6,509			23,778			14,915
Tax expense (benefit) related to an increase (decrease) in unrecognized tax benefits	(263)			215			(4,044)
Stock based compensation (windfall)/shortfall	(6,701)			(2,553)			(1,830)
Federal energy credits	(8,938)			(15,265)			(14,558)
Rate changes	432			19			81
Change in valuation allowance	1,524			(1,065)			(1,054)
Other	2,532			2,804			230
Provision for income taxes	$	125,100		$	197,715		$	178,037

Effective tax rate	23.8		%	26.0		%	23.7		%

Schedule of Deferred Tax Assets and Liabilities

The tax effects of significant temporary differences that give rise to the net deferred tax asset are as follows:


	December 31,
	2023		2022
	(Dollars in thousands)
Deferred tax assets:
State net operating loss carryforwards	$	3,906	$	2,296
Stock-based compensation expense	1,492		2,896
Warranty, litigation and other reserves	16,542		17,134
Accrued compensation	9,067		8,554
Asset impairment charges	26,316		30,319
Inventory, additional net costs capitalized for tax purposes	10,955		11,399
Other, net	406		1,861
Total deferred tax assets	68,684		74,459
Valuation allowance	(3,775)		(2,251)
Total deferred tax assets, net of valuation allowance	64,909		72,208

Deferred tax liabilities:
Property, equipment and other assets	15,343		11,714
Deferral of profit on home sales	6,139		5,592
Other, net	4,597		5,650
Total deferred tax liabilities	26,079		22,956
Net deferred tax asset	$	38,830	$	49,252

Schedule of Unrecognized Tax Benefits Roll Forward

The following table summarizes activity for the gross unrecognized tax benefit component of our total liability for uncertain tax positions for the years ended December 31, 2023, 2022 and 2021:


	Year Ended December 31,
	2023		2022		2021
	(Dollars in thousands)
Gross unrecognized tax benefits at beginning of year	$	646	$	383	$	8,497
Increases related to prior year tax positions	79		357		162
Decreases related to prior year tax positions	(250)		—		—
Lapse of applicable statute of limitations	(70)		(94)		(8,276)
Gross unrecognized tax benefits at end of year	$	405	$	646	$	383