Segment Disclosures We disclose four homebuilding reportable segments that aggregate geographically our homebuilding operating segments, and our mortgage banking operations presented as one reportable segment. The homebuilding reportable segments are comprised of operating divisions in the following geographic areas: Mid Atlantic: Maryland, Virginia, West Virginia, Delaware and Washington, D.C. North East: New Jersey and Eastern Pennsylvania Mid East: New York, Ohio, Western Pennsylvania, Indiana and Illinois South East: North Carolina, South Carolina, Florida and Tennessee Homebuilding profit before tax includes all revenues and income generated from the sale of homes, less the cost of homes sold, selling, general and administrative expenses and a corporate capital allocation charge. The corporate capital allocation charge is eliminated in consolidation and is based on the segments average net assets employed. The corporate capital allocation charged to the operating segment allows the Chief Operating Decision Maker (CODM) to determine whether the operating segments results are providing the desired rate of return after covering our cost of capital. Assets not allocated to the operating segments are not included in either the operating segments corporate capital allocation charge or the CODMs evaluation of the operating segments performance. We record charges on contract land deposits when it is determined that it is probable that recovery of the deposit is impaired. For segment reporting purposes, impairments on contract land deposits are generally charged to the operating segment upon the termination of a Lot Purchase Agreement with the developer, or the restructuring of a Lot Purchase Agreement resulting in the forfeiture of the deposit. Mortgage banking profit before tax consists of revenues generated from mortgage financing, title insurance and closing services, less the costs of such services and general and administrative costs. Mortgage banking operations are not charged a corporate capital allocation charge. In addition to the corporate capital allocation and contract land deposit impairments discussed above, the other reconciling items between segment profit and consolidated profit before tax include unallocated corporate overhead (including all management incentive compensation), equity-based compensation expense, consolidation adjustments and external corporate interest expense. Overhead functions such as accounting, treasury and human resources are centrally performed and these costs are not allocated to our operating segments. Consolidation adjustments consist of such items necessary to convert the reportable segments results, which are predominantly maintained on a cash basis, to a full accrual basis for external financial statement presentation purposes, and are not allocated to our operating segments. External corporate interest expense primarily consists of interest charges on our 3.95% Senior Notes due 2022 (the Senior Notes) and is not charged to the operating segments because the charges are included in the corporate capital allocation discussed above. 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, 2019 2018 Revenues: Homebuilding Mid Atlantic $ 881,324 $ 842,496 Homebuilding North East 122,627 122,714 Homebuilding Mid East 338,549 290,237 Homebuilding South East 300,706 234,646 Mortgage Banking 43,805 39,321 Total consolidated revenues $ 1,687,011 $ 1,529,414 Three Months Ended March 31, 2019 2018 Income before taxes: Homebuilding Mid Atlantic $ 99,364 $ 91,047 Homebuilding North East 11,460 15,704 Homebuilding Mid East 35,475 27,211 Homebuilding South East 35,036 23,237 Mortgage Banking 29,558 22,550 Total segment profit before taxes 210,893 179,749 Reconciling items: Contract land deposit reserve adjustment (1) 950 2,128 Equity-based compensation expense (2) (19,333 ) (9,509 ) Corporate capital allocation (3) 54,559 50,700 Unallocated corporate overhead (31,735 ) (31,284 ) Consolidation adjustments and other 9,247 5,201 Corporate interest expense (5,974 ) (5,987 ) Reconciling items sub-total 7,714 11,249 Consolidated income before taxes $ 218,607 $ 190,998 (1) This item represents changes to the contract land deposit impairment reserve, which are not allocated to the reportable segments. (2) The increase in equity-based compensation expense for the three month period ended March 31, 2019 was primarily attributable to the equity grant in the second quarter of 2018. (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 segments monthly average asset balance, and was as follows for the periods presented: Three Months Ended March 31, 2019 2018 Corporate capital allocation charge: Homebuilding Mid Atlantic $ 30,417 $ 30,449 Homebuilding North East 4,727 4,180 Homebuilding Mid East 9,015 7,973 Homebuilding South East 10,400 8,098 Total $ 54,559 $ 50,700 March 31, 2019 December 31, 2018 Assets: Homebuilding Mid Atlantic $ 1,043,004 $ 1,018,953 Homebuilding North East 146,750 144,412 Homebuilding Mid East 294,293 290,815 Homebuilding South East 333,075 332,468 Mortgage Banking 487,148 517,075 Total segment assets 2,304,270 2,303,723 Reconciling items: Cash and cash equivalents 805,195 688,783 Deferred taxes 115,160 112,333 Intangible assets and goodwill 49,950 49,989 Operating lease right-of-use assets 65,519  Contract land deposit reserve (28,266 ) (29,216 ) Consolidation adjustments and other 50,943 40,321 Reconciling items sub-total 1,058,501 862,210 Consolidated assets $ 3,362,771 $ 3,165,933