Annual report [Section 13 and 15(d), not S-K Item 405]

INCOME TAXES (Tables)

v3.25.4
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense
Components of the income tax provision are as follows (in thousands):
 
  Years Ended December 31,
  2025 2024 2023
Current taxes:
Federal $ 105,522  $ 166,028  $ 170,306 
State 25,096  41,101  41,837 
130,618  207,129  212,143 
Deferred taxes:
Federal 1,481  6,013  (1,888)
State (512) 3,542  427 
969  9,555  (1,461)
Total $ 131,587  $ 216,684  $ 210,682 
Schedule of Income Tax Reconciliation
Income taxes for the years ended December 31, 2025, 2024 and 2023, differ from the expected amounts computed using the federal statutory income tax rate of 21% as a result of the following (in thousands):
  Years Ended December 31,
  2025 2024 2023
Amount Percent Amount Percent Amount Percent
Expected taxes at current federal statutory income tax rate $ 122,766  21.0  % $ 210,603  21.0  % $ 199,380  21.0  %
State and local income taxes, net of federal income tax benefit (1)
19,421  3.3  % 35,268  3.5  % 33,389  3.5  %
Tax credits (10,161) (1.7) % (30,071) (3.0) % (25,219) (2.7) %
Nontaxable or nondeductible items 87  —  % 1,891  0.2  % 3,509  0.4  %
Other adjustment (526) (0.1) % (1,007) (0.1) % (377) —  %
Income tax expense $ 131,587  22.5  % $ 216,684  21.6  % $ 210,682  22.2  %
(1) The states that contribute to the majority (greater than 50%) of the tax effect in this category include California, Arizona and Florida for 2025; California, Arizona, and Georgia for 2024; and California, Arizona, and Florida for 2023.
Schedule of Deferred Tax Assets and Liabilities Deferred tax assets and liabilities are comprised of timing differences (in thousands) as follows:
At December 31,
2025 2024
Deferred tax assets:
Real estate $ 27,441  $ 24,633 
Warranty reserve 6,348  7,768 
Wages payable 13,430  6,490 
Equity-based compensation 5,858  7,575 
Accrued expenses 202  94 
Lease liabilities 14,392  13,264 
Capped Calls cost
 9,048  12,545 
State operating loss carry forwards 81 — 
Other 6,805  8,479 
Total deferred tax assets 83,605  80,848 
Deferred tax liabilities:
Goodwill 5,049  4,181 
Prepaids 1,845  1,367 
ROU assets
 13,891  13,071 
Fixed assets 9,527  7,705 
Total deferred tax liabilities 30,312  26,324 
Deferred tax assets, net 53,293  54,524 
Other deferred tax liabilities - state franchise taxes 9,534  9,795 
Net deferred tax assets and liabilities $ 43,759  $ 44,729 
Schedule of Cash Flow, Supplemental Disclosures
The amounts of cash taxes paid are as follows (in thousands):

  Years Ended December 31,
  2025 2024 2023
Federal $ 127,650  163,000  167,700 
State
California 6,520  15,400  12,000 
All other states 20,060  30,116  32,393 
Total income taxes, net of amounts refunded 154,230  208,516  212,093 
The following table presents certain supplemental cash flow information (in thousands):
Years Ended December 31,
2025 2024 2023
Cash paid during the year for:
Interest, net of interest capitalized $ (15,702) $ (5,506) $ (1,454)
Income taxes paid, net $ 154,230  $ 208,516  $ 212,093 
Non-cash operating activities:
Real estate acquired through notes payable $ 7,990  $ 24,750  $ 9,267 
Non-cash investing and financing activities:
Distributions of real estate from unconsolidated joint ventures, net $ 3,090  $ 9,594  $ —