Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 11, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | NVR | ||
Entity Registrant Name | NVR INC | ||
Entity Central Index Key | 906,163 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 3,616,917 | ||
Entity Public Float | $ 10,109,057 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 732,248 | $ 689,557 |
Inventory: | ||
Land under development | 38,857 | 34,212 |
Contract land deposits, net | 396,177 | 370,429 |
Total assets | 3,165,933 | 2,989,279 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Total liabilities | 1,357,371 | 1,383,787 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares issued as of both December 31, 2017 and December 31, 2016 | 206 | 206 |
Additional paid-in capital | 1,820,223 | 1,644,197 |
Deferred compensation trust – 108,640 shares of NVR, Inc. common stock as of both December 31, 2017 and December 31, 2016 | (16,937) | (17,383) |
Deferred compensation liability | 16,937 | 17,383 |
Retained earnings | 7,031,333 | 6,231,940 |
Less treasury stock at cost – 16,864,324 and 16,862,327 shares as of December 31, 2017 and December 31, 2016, respectively | (7,043,200) | (6,270,851) |
Total shareholders' equity | 1,808,562 | 1,605,492 |
Total liabilities and shareholders' equity | 3,165,933 | 2,989,279 |
Homebuilding: | ||
ASSETS | ||
Cash and cash equivalents | 688,783 | 645,087 |
Restricted cash | 16,982 | 19,438 |
Receivables | 18,641 | 20,026 |
Inventory: | ||
Lots and housing units, covered under sales agreements with customers | 1,076,904 | 1,046,094 |
Unsold lots and housing units | 115,631 | 148,620 |
Land under development | 38,857 | 34,212 |
Building materials and other | 21,718 | 17,273 |
Total Inventory | 1,253,110 | 1,246,199 |
Contract land deposits, net | 396,177 | 370,429 |
Property, plant and equipment, net | 42,234 | 43,191 |
Reorganization value in excess of amounts allocable to identifiable assets, net | 41,580 | 41,580 |
Deferred tax assets, net | 112,333 | 111,953 |
Other assets | 71,671 | 86,977 |
Total assets | 2,641,511 | 2,584,880 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Accounts payable | 244,496 | 261,973 |
Accrued expenses and other liabilities | 332,871 | 341,891 |
Customer deposits | 138,246 | 150,033 |
Senior notes | 597,681 | 597,066 |
Total liabilities | 1,313,294 | 1,350,963 |
Mortgage Banking: | ||
ASSETS | ||
Cash and cash equivalents | 23,092 | 21,707 |
Restricted cash | 3,071 | 2,256 |
Mortgage loans held for sale, net | 458,324 | 352,489 |
Inventory: | ||
Property, plant and equipment, net | 6,510 | 6,327 |
Reorganization value in excess of amounts allocable to identifiable assets, net | 7,347 | 7,347 |
Other assets | 26,078 | 14,273 |
Total assets | 524,422 | 404,399 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Accounts payable and other liabilities | 44,077 | 32,824 |
Total liabilities | $ 44,077 | $ 32,824 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 20,555,330 | 20,555,330 |
Deferred compensation trust, shares | 107,340 | 108,640 |
Treasury stock, shares | 16,977,499 | 16,864,324 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Mortgage banking fees | $ 7,163,674 | $ 6,305,840 | $ 5,822,544 |
Interest expense | (25,081) | (24,185) | (21,707) |
Income before taxes | 959,732 | 846,911 | 661,697 |
Income tax expense | (162,535) | (309,390) | (236,435) |
Net income | $ 797,197 | $ 537,521 | $ 425,262 |
Basic earnings per share (USD per share) | $ 219.58 | $ 144 | $ 110.53 |
Diluted earnings per share (USD per share) | $ 194.80 | $ 126.77 | $ 103.61 |
Basic weighted average shares outstanding (in Shares) | 3,631 | 3,733 | 3,847 |
Diluted weighted average shares outstanding (in Shares) | 4,092 | 4,240 | 4,104 |
Homebuilding: | |||
Mortgage banking fees | $ 7,004,304 | $ 6,175,521 | $ 5,709,223 |
Other income | 11,839 | 6,536 | 2,820 |
Cost of sales | (5,692,127) | (4,990,378) | (4,707,861) |
Selling, general and administrative | (428,874) | (392,272) | (382,459) |
Operating income | 895,142 | 799,407 | 621,723 |
Interest expense | (24,036) | (23,037) | (20,621) |
Income before taxes | 871,106 | 776,370 | 601,102 |
Mortgage Banking: | |||
Mortgage banking fees | 159,370 | 130,319 | 113,321 |
Interest income | 11,593 | 7,850 | 7,569 |
Other income | 2,546 | 2,048 | 1,652 |
General and administrative | (83,838) | (68,528) | (60,861) |
Interest expense | (1,045) | (1,148) | (1,086) |
Income before taxes | $ 88,626 | $ 70,541 | $ 60,595 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Deferred Compensation Trust | Deferred Compensation Liability |
Beginning Balance at Dec. 31, 2015 | $ 1,239,165 | $ 206 | $ 1,447,795 | $ 5,270,114 | $ (5,478,950) | $ (17,333) | $ 17,333 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 425,262 | 425,262 | |||||
Deferred compensation activity | (42) | 42 | |||||
Purchase of common stock for treasury | (455,351) | (455,351) | |||||
Equity-based compensation | 43,598 | 43,598 | |||||
Tax benefit from equity benefit plan activity | 13,661 | 13,661 | |||||
Proceeds from stock options exercised | 38,106 | 38,106 | |||||
Treasury stock issued upon option exercise and restricted share vesting | (27,332) | 27,332 | |||||
Ending Balance at Dec. 31, 2016 | 1,304,441 | 206 | 1,515,828 | 5,695,376 | (5,906,969) | (17,375) | 17,375 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 537,521 | 537,521 | |||||
Deferred compensation activity | (8) | 8 | |||||
Purchase of common stock for treasury | (422,166) | (422,166) | |||||
Equity-based compensation | 44,562 | 44,562 | |||||
Proceeds from stock options exercised | 140,525 | 140,525 | |||||
Treasury stock issued upon option exercise and restricted share vesting | (58,284) | 58,284 | |||||
Ending Balance at Dec. 31, 2017 | 1,605,492 | 206 | 1,644,197 | 6,231,940 | (6,270,851) | (17,383) | 17,383 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative-effect adjustment from adoption of ASU 2016-09, net of tax | 609 | 1,566 | (957) | ||||
Net income | 797,197 | 797,197 | |||||
Deferred compensation activity | 446 | (446) | |||||
Purchase of common stock for treasury | (846,134) | (846,134) | |||||
Equity-based compensation | 75,701 | 75,701 | |||||
Proceeds from stock options exercised | 174,110 | 174,110 | |||||
Treasury stock issued upon option exercise and restricted share vesting | (73,785) | 73,785 | |||||
Ending Balance at Dec. 31, 2018 | 1,808,562 | $ 206 | $ 1,820,223 | 7,031,333 | $ (7,043,200) | $ (16,937) | $ 16,937 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative-effect adjustment from adoption of ASU 2016-09, net of tax | $ 2,196 | $ 2,196 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 797,197 | $ 537,521 | $ 425,262 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 20,168 | 22,667 | 22,269 |
Equity-based compensation expense | 75,701 | 44,562 | 43,598 |
Contract land deposit impairments (recoveries), net | 11,760 | 1,238 | (4,269) |
Gain on sale of loans, net | (122,755) | (99,132) | (85,535) |
Deferred tax expense (benefit) | 914 | 61,290 | (10,024) |
Mortgage loans closed | (4,828,615) | (4,077,372) | (3,660,269) |
Mortgage loans sold and principal payments on mortgage loans held for sale | 4,845,999 | 4,182,220 | 3,710,250 |
Distribution of earnings from unconsolidated joint ventures | 4,596 | 4,788 | 10,016 |
Net change in assets and liabilities: | |||
Increase in inventory | (6,911) | (154,099) | (85,194) |
Decrease (increase) in contract land deposits | (30,863) | 8,177 | (32,280) |
Increase in receivables | (1,008) | (348) | (8,779) |
Increase in accounts payable and accrued expenses | (30,713) | 10,789 | 58,532 |
Increase in customer deposits | (11,787) | 27,797 | 11,271 |
Other, net | (557) | 256 | (1,860) |
Net cash provided by operating activities | 723,126 | 570,354 | 392,988 |
Cash flows from investing activities: | |||
Investments in and advances to unconsolidated joint ventures | (284) | (3,800) | (653) |
Distribution of capital from unconsolidated joint ventures | 10,515 | 8,029 | 11,672 |
Purchase of property, plant and equipment | (19,665) | (20,269) | (22,369) |
Proceeds from the sale of property, plant and equipment | 1,257 | 847 | 1,000 |
Net cash used in investing activities | (8,177) | (15,193) | (10,350) |
Cash flows from financing activities: | |||
Purchase of treasury stock | (846,134) | (422,166) | (455,351) |
Distributions to partner in consolidated variable interest entity | (234) | 0 | (150) |
Proceeds from the exercise of stock options | 174,110 | 140,525 | 38,106 |
Net cash used in financing activities | (672,258) | (281,641) | (417,395) |
Net increase (decrease) in cash and cash equivalents | 42,691 | 273,520 | (34,757) |
Cash and cash equivalents, beginning of the year | 689,557 | 416,037 | 450,794 |
Cash and cash equivalents, end of the year | 732,248 | 689,557 | 416,037 |
Supplemental disclosures of cash flow information: | |||
Interest paid during the year, net of interest capitalized | 24,178 | 23,251 | 20,922 |
Income taxes paid during the year, net of refunds | $ 181,166 | $ 260,232 | $ 218,984 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of NVR, Inc. and its subsidiaries (“NVR” or the “Company”) and certain other entities in which the Company is deemed to be the primary beneficiary (see Notes 3 and 4 herein for additional information). All significant intercompany transactions have been eliminated in consolidation. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Management continually evaluates the estimates used to prepare the consolidated financial statements and updates those estimates as necessary. In general, the Company’s estimates are based on historical experience, on information from third party professionals, and other various assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ materially from those estimates made by management. Cash and Cash Equivalents Cash and cash equivalents include short-term investments with original maturities of three months or less. Homebuilding restricted cash was attributable to customer deposits for certain home sales. Mortgage banking restricted cash included amounts collected from customers for loans in process and closed mortgage loans held for sale. At December 31, 2018 and 2017 , $320 and $1,069 , respectively, of cash related to a consolidated variable interest entity is included in homebuilding “Other assets” on the accompanying consolidated balance sheet. Homebuilding Inventory The carrying value of inventory is stated at the lower of cost or market value. Cost of lots and completed and uncompleted housing units represent the accumulated actual cost of the units. Field construction supervisors’ salaries and related direct overhead expenses are included in inventory costs. Interest costs are not capitalized into inventory, with the exception of land under development and joint venture investments, as applicable (see below). Upon settlement, the cost of the unit is expensed on a specific identification basis. Cost of building materials is determined on a first-in, first-out basis. Sold inventory is evaluated for impairment based on the contractual sales price compared to the total estimated cost to construct. Unsold inventory is evaluated for impairment by analyzing recent comparable sales prices within the applicable community compared to the costs incurred to date plus the expected costs to complete. Any calculated impairments are recorded immediately. Contract Land Deposits The Company purchases finished lots under fixed price lot purchase agreements (“Lot Purchase Agreements”) that require deposits that may be forfeited if NVR fails to perform under the contract. The deposits are in the form of cash or letters of credit in varying amounts and represent a percentage of the aggregate purchase price of the finished lots. NVR maintains an allowance for losses on contract land deposits that reflects the Company’s judgment of the present loss exposure in the existing contract land deposit portfolio at the end of the reporting period. To analyze contract land deposit impairments, NVR conducts a loss contingency analysis each quarter. In addition to considering market and economic conditions, NVR assesses contract land deposit impairments on a community-by-community basis pursuant to the purchase contract terms, analyzing, as applicable, current sales absorption levels, recent sales’ direct profit, the dollar differential between the contractual purchase price and the current market price for lots, a developer’s financial stability, a developer’s financial ability or willingness to reduce lot prices to current market prices, if necessary, and the contract’s default status by either the Company or the developer along with an analysis of the expected outcome of any such default. NVR’s analysis is focused on whether the Company can sell houses at an acceptable margin and sales pace in a particular community in the current market with which the Company is faced. Because the Company does not own the finished lots on which the Company has placed a contract land deposit, if the above analysis leads to a determination that the Company cannot sell homes at an acceptable margin and sales pace at the current contractual lot price, the Company then determines whether it will elect to default under the contract, forfeit the deposit and terminate the contract, or whether the Company will attempt to restructure the lot purchase contract, which may require it to forfeit the deposit to obtain contract concessions from a developer. The Company also assesses whether impairment is present due to collectability issues resulting from a developer’s non-performance because of financial or other conditions. For the years ended December 31, 2018 and 2017 , the Company incurred net pre-tax charges of $5,115 and $1,238 , respectively, related to the impairment of contract land deposits. For the year ended December 31, 2016 , the Company recognized net pre-tax recoveries of $4,269 of contract land deposits previously determined to be unrecoverable. The contract land deposit assets on the accompanying consolidated balance sheets are shown net of the allowance for losses of $29,216 and $29,999 at December 31, 2018 and 2017 , respectively. Land Under Development On a limited basis, NVR directly acquires raw parcels of land already zoned for its intended use to develop into finished lots. Land under development includes the land acquisition costs, direct improvement costs, capitalized interest, where applicable, and real estate taxes. Land under development, including the land under development held by the Company’s unconsolidated joint ventures and the related joint venture investments, is reviewed for potential write-downs when impairment indicators are present. In addition to considering market and economic conditions, the Company assesses land under development impairments on a community-by-community basis, analyzing, as applicable, current sales absorption levels, recent sales’ direct profit, and the dollar differential between the projected fully-developed cost of the lots and the current market price for lots. If indicators of impairment are present for a community, NVR performs an analysis to determine if the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts, and if so, impairment charges are required to be recorded in an amount by which the carrying amount of the assets exceeds the fair value of such assets. The Company’s determination of fair value is primarily based on discounting the estimated future cash flows at a rate commensurate with the inherent risks associated with the assets and related estimated cash flow streams. See Notes 4 and 5 for further discussion of land under development and joint venture investments, respectively. Property, Plant, and Equipment Property, plant, and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is based on the estimated useful lives of the assets using the straight-line method. Model home furniture and fixtures are generally depreciated over a two -year period, office facilities and other equipment are depreciated over a period of three to ten years and production facilities are depreciated over periods of five to forty years. Intangible Assets On December 31, 2012, the Company acquired substantially all of the assets of Heartland Homes, Inc., which resulted in the Company recording finite-lived intangible assets and goodwill. The Company completed its annual assessment for impairment of goodwill and management determined that there was no impairment. As of December 31, 2018 and 2017 , finite-lived intangible assets, net of accumulated amortization, totaled $621 and $776 , respectively. The remaining finite-lived intangible assets will be amortized on a straight-line basis over 4 years. As of both December 31, 2018 and 2017 , the goodwill value was $441 . Finite-lived intangible assets and goodwill are included in homebuilding "Other assets" in the accompanying consolidated balance sheets. Warranty/Product Liability Reserves The Company establishes warranty and product liability reserves to provide for estimated future expenses as a result of construction and product defects, product recalls and litigation incidental to NVR’s homebuilding business. Liability estimates are determined based on management’s judgment considering such factors as historical experience, the likely current cost of corrective action, manufacturers’ and subcontractors’ participation in sharing the cost of corrective action, consultations with third party experts such as engineers, and discussions with the Company’s General Counsel and outside counsel retained to handle specific product liability cases. Mortgage Repurchase Reserve, Mortgage Loans Held for Sale and Derivatives and Hedging Activities NVR originates several different loan products to its customers to finance the purchase of a home through its wholly-owned mortgage subsidiary, NVR Mortgage Finance, Inc. (“NVRM”). NVRM sells all of the loans it originates into the secondary market on a servicing released basis, typically within 30 days from closing. All of the loans that NVRM originates are underwritten to the standards and specifications of the ultimate investor. Those underwriting standards are typically equal to or more stringent than the underwriting standards required by Fannie Mae (“FNMA”), Freddie Mac ("FHLMC"), the Department of Veterans Affairs (“VA”) and the Federal Housing Administration (“FHA”). Insofar as NVRM underwrites its originated loans to those standards, NVRM bears no increased concentration of credit risk from the issuance of loans, except in certain limited instances where early payment default occurs. NVRM employs a quality control department to ensure that its underwriting controls are effectively operating, and further assesses the underwriting function as part of its assessment of internal controls over financial reporting. NVRM maintains a reserve for losses on mortgage loans originated that reflects NVR’s judgment of the present loss exposure in the loans that NVRM has originated and sold. The reserve is calculated based on an analysis of historical experience and exposure (see Note 15 herein for further information). Mortgage loans held for sale are recorded at fair value when closed, and thereafter are carried at the lower of cost or fair value, net of deferred origination costs, until sold. In the normal course of business, NVRM enters into contractual commitments to extend credit to buyers of single-family homes with fixed expiration dates. The commitments become effective when the borrowers “lock-in” a specified interest rate within time frames established by NVRM. All mortgagors are evaluated for credit worthiness prior to the extension of the commitment. Market risk arises if interest rates move adversely between the time of the “lock-in” of rates by the borrower and the sale date of the loan to a broker/dealer. To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, NVRM enters into optional or mandatory delivery forward sale contracts to sell whole loans and mortgage-backed securities to broker/dealers. The forward sale contracts lock-in an interest rate and price for the sale of loans similar to the specific rate lock commitments. NVRM does not engage in speculative or trading derivative activities. Both the rate lock commitments to borrowers and the forward sale contracts to broker/dealers are undesignated derivatives, and, accordingly, are marked to fair value through earnings. At December 31, 2018 , there were contractual commitments to extend credit to borrowers aggregating $682,152 , and open forward delivery sale contracts aggregating $1,089,923 , which hedge both the rate lock loan commitments and closed loans held for sale (see Note 14 herein for a description of the Company’s fair value accounting). Earnings per Share The following weighted average shares and share equivalents were used to calculate basic and diluted earnings per share for the years ended December 31, 2018 , 2017 and 2016 : Year Ended December 31, 2018 2017 2016 Weighted average number of shares outstanding used to calculate basic EPS 3,631 3,733 3,847 Dilutive securities: Stock options and restricted share units 461 507 257 Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS 4,092 4,240 4,104 The assumed proceeds used in the treasury method for calculating NVR’s diluted earnings per share includes the amount the employee must pay upon exercise and the amount of compensation cost attributed to future services not yet recognized. The following stock options issued under equity incentive plans were outstanding during the years ended December 31, 2018 , 2017 and 2016 , but were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. Year Ended December 31, 2018 2017 2016 Anti-dilutive securities 370 15 87 Revenues – Homebuilding Operations NVR builds single-family detached homes, townhomes and condominium buildings, which generally are constructed on a pre-sold basis. Revenue is recognized on the settlement date at the contract sales price,when control is transferred to our customers. Mortgage Banking Fees Mortgage banking fees include income earned by NVRM for originating mortgage loans, servicing mortgage loans held on an interim basis, title fees, gains and losses on the sale of mortgage loans and mortgage servicing and other activities incidental to mortgage banking. Mortgage banking fees are generally recognized after the loan has been sold to an unaffiliated, third party investor. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on the deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. See Note 11 herein for discussion of the impact on the Company's deferred tax asset resulting from the enactment of the Tax Cuts and Jobs Act in December 2017. ASC 740-10, Income Taxes , provides that a tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not (defined as a likelihood of more than 50%) that the position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits. If a tax position does not meet the more-likely-than-not recognition threshold, despite the Company’s belief that its filing position is supportable, the benefit of that tax position is not recognized in the statements of income. The Company recognizes interest related to unrecognized tax benefits as a component of income tax expense. Based on its historical experience in dealing with various taxing authorities, the Company has found that it is the administrative practice of the taxing authorities to not seek penalties from the Company for the tax positions it has taken on its returns related to its unrecognized tax benefits. Therefore, the Company does not accrue penalties for the positions in which it has an unrecognized tax benefit. However, if such penalties were to be accrued, they would be recorded as a component of income tax expense. The Company recognizes unrecognized tax benefits in the period that the uncertainty is eliminated by either affirmative agreement of the uncertain tax position by the applicable taxing authority, by expiration of the applicable statute of limitation, or by determination in accordance with certain states’ administrative practices that the uncertain tax position has been effectively settled (see Note 11 herein for further information). Financial Instruments Except as otherwise noted herein, NVR believes that the carrying value approximates the fair value of its financial instruments (see Note 14 herein for further information). Equity-Based Compensation The Company recognizes equity-based compensation expense within its income statement for all share-based payment arrangements, which includes non-qualified stock options to purchase shares of NVR common stock ("Options") and restricted share units ("RSUs"). Compensation expense is based on the grant-date fair value of the Options and RSUs granted, and is recognized on a straight-line basis over the requisite service period for the entire award (from the date of grant through the period of the last separately vesting portion of the grant). Options and RSUs which are subject to a performance condition are treated as a separate award from the “service-only” Options and RSUs, and compensation expense is recognized when it becomes probable that the stated performance target will be achieved. The Company calculates the fair value of its Options, which are non-publicly traded, using the Black-Scholes option-pricing model. The grant date fair value of the RSUs is the closing price of the Company’s common stock on the day immediately preceding the date of grant. The reversal of compensation expense previously recognized for grants forfeited is recorded in the period in which the forfeiture occurs. The Company’s equity-based compensation plans are accounted for as equity-classified awards (see Note 12 herein for further discussion of equity-based compensation plans). Comprehensive Income For the years ended December 31, 2018 , 2017 and 2016 , comprehensive income equaled net income; therefore, a separate statement of comprehensive income is not included in the accompanying consolidated financial statements. Reclassifications Certain prior period amounts have been reclassified to conform to the current year's presentation. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Revenue from Contracts with Customers On January 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) , using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Revenue Recognition Consistent with the Company’s previous revenue recognition practice, homebuilding revenue is recognized on the settlement date at the contract sales price, when control is transferred to our customers. Mortgage banking revenue recognition continues to be governed by Accounting Standards Codification ("ASC") Topic 815 - Derivatives and Hedging and ASC Topic 825 - Financial Instruments, and is not subject to Topic 606. See Note 2 for disclosure of revenue by reporting segment. The Company’s contract liabilities, consisting of deposits received from customers (“Handmoney”) on homes not settled, were $138,246 and $150,033 as of December 31, 2018 and 2017 , respectively. For the year ended December 31, 2018 , the Company recognized in revenue substantially all of the $150,033 in Handmoney held as of December 31, 2017 . The Company’s prepaid sales compensation totaled approximately $17,000 and $19,500 , as of December 31, 2018 and December 31, 2017 , respectively. These amounts are included in homebuilding “Other assets” on the accompanying consolidated balance sheets. Deferred Revenue Topic 606 no longer requires sellers of real estate to consider the initial and continuing involvement criteria in ASC 360-20, but instead only conclude on the collectibility of the transaction price. On January 1, 2018, the Company recorded a cumulative-effect adjustment, net of tax, of $2,196 to recognize deferred profit on home settlements for which the Company had previously determined that there was significant continuing involvement and believed to be fully collectible. Revenue recognized in 2018 would not have been materially different under prior GAAP. Practical Expedients and Exemption At contract inception, the performance obligation to complete and settle the home with a customer has an expected duration of less than one year. As a result, the Company does not disclose the value of unsatisfied performance obligations for contracts. No other adjustments were made as a result of the adoption of Topic 606. Other recently adopted accounting pronouncements The Company adopted ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, effective January 1, 2018. In connection with the adoption of ASU 2016-15, the Company made the election to classify distributions received from unconsolidated joint ventures using the cumulative earnings approach. This election was applied retrospectively, which reclassified a portion of distributions received from the Company's unconsolidated joint ventures between operating and investing activities on the prior year consolidated statement of cash flows. The adoption of this standard did not have a material effect on the Company's consolidated statements of cash flows and related disclosures. The Company adopted ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash, effective January 1, 2018. The amendments in the standard require that the statement of cash flows explain the change during the period in the total of cash, cash equivalents and restricted cash or restricted cash equivalents. As a result, the Company's beginning-of-period and end-of-period cash balances presented in the consolidated statements of cash flows were retrospectively adjusted to include restricted cash with cash and cash equivalents. The beginning-of-period and end-of-period cash, restricted cash, and cash equivalent balances presented on the accompanying consolidated statements of cash flows include cash related to a consolidated joint venture, which is included in homebuilding "Other assets" on the Company's consolidated balance sheets. The cash related to this consolidated joint venture as of December 31, 2018 , 2017 and 2016 was $320 , $1,069 and $1,214 , respectively. The adoption of this standard did not have a material effect on the Company's consolidated statements of cash flows and related disclosures. Recently Issued Accounting Pronouncements In February 2016, FASB issued ASU 2016-02, Leases (Topic 842) , which requires lessees to recognize most leases on-balance sheet with a liability equal to the present value of lease payments over the lease term and a right-of-use asset for the right to use the underlying asset over the lease term. Lessees will recognize expenses on their income statements in a manner similar to current GAAP. The standard also requires additional disclosures of key information about leasing arrangements. The standard was effective for the Company as of January 1, 2019. Based on its current portfolio of leases, the Company expects that the adoption of this standard will result in the recognition of less than $100,000 of right-of-use assets and corresponding liabilities on its balance sheet, predominately related to real estate leases. Additionally, in July 2018 the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements , which provides companies with relief from the costs of implementing certain aspects of the new lease standard. The ASU amends Topic 842 so that entities may elect not to restate their comparative periods during transition. Previously, the new lease standard required that an entity apply the new rules beginning with the earliest comparative period of financial statements presented (the modified retrospective approach). The Company has elected to use the transition relief provided under Topic 842 upon adoption of the standard effective January 1, 2019. In June 2016, FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) , which significantly changes the way impairment of financial assets is recognized. The standard will require immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, which will generally result in earlier recognition of allowances for credit losses on loans and other financial instruments. The standard’s provisions will be applied as a cumulative-effect adjustment to beginning retained earnings as of the effective date. The standard is effective for the Company as of January 1, 2020. The Company does not believe that the adoption of this standard will have a material effect on its consolidated financial statements and related disclosures. In January 2017, FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment . The standard’s objective is to simplify the subsequent measurement of goodwill by eliminating the second step from the goodwill impairment test. Under the amendments in the standard, an entity would perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. If the carrying amount of a reporting unit exceeds its fair value, an impairment charge would then be recognized, not to exceed the amount of goodwill allocated to that reporting unit. The standard is effective for the Company on January 1, 2020, and early adoption is permitted. The Company does not believe that the adoption of this standard will have a material effect on its consolidated financial statements and related disclosures. |
Segment Information, Nature of
Segment Information, Nature of Operations, and Certain Concentrations | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information, Nature of Operations, and Certain Concentrations | Segment Information, Nature of Operations, and Certain Concentrations NVR’s homebuilding operations primarily construct and sell single-family detached homes, townhomes and condominium buildings under three trade names: Ryan Homes, NVHomes and Heartland Homes. The Ryan Homes product is marketed primarily to first-time and first-time move-up buyers. Ryan Homes operates in thirty-two metropolitan areas located in Maryland, Virginia, Washington, D.C., West Virginia, Pennsylvania, New York, North Carolina, South Carolina, Florida, Ohio, New Jersey, Delaware, Indiana, Illinois and Tennessee. The NVHomes and Heartland Homes products are marketed primarily to move-up and luxury buyers. NVHomes operates in Delaware and the Washington, D.C., Baltimore, MD and Philadelphia, PA metropolitan areas. Heartland Homes operates in the Pittsburgh, PA metropolitan area. NVR derived approximately 30% and 10% of its 2018 homebuilding revenues from the Washington, D.C. and Baltimore, MD metropolitan areas, respectively. NVR’s mortgage banking segment is a regional mortgage banking operation. Substantially all of the mortgage banking segment’s loan closing activity is for NVR’s homebuilding customers. NVR’s mortgage banking business generates revenues primarily from origination fees, gains on sales of loans, and title fees. A substantial portion of the Company’s mortgage operations is conducted in the Washington, D.C. and Baltimore, MD metropolitan areas. The following disclosure includes four homebuilding reportable segments that aggregate geographically the Company’s homebuilding operating segments, and the mortgage banking operations presented as a single 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 segment’s 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 segment’s results are providing the desired rate of return after covering the Company’s cost of capital. In addition, certain assets including goodwill and intangible assets, and consolidation adjustments as discussed further below, are not allocated to the operating segments as those assets are neither included in the operating segment’s corporate capital allocation charge, nor in the CODM’s evaluation of the operating segment’s performance. The Company records 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 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. NVR’s overhead functions, such as accounting, treasury and human resources are centrally performed and the costs are not allocated to the Company’s 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 the Company’s operating segments. External corporate interest expense primarily consists of interest charges on the Company’s 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. Following are tables presenting segment revenues, profit before taxes, assets, interest income, interest expense, depreciation and amortization and expenditures for property and equipment, with reconciliations to the amounts reported for the consolidated enterprise, where applicable: Year Ended December 31, 2018 2017 2016 Revenues: Homebuilding Mid Atlantic $ 3,893,358 $ 3,543,687 $ 3,319,776 Homebuilding North East 580,726 517,141 462,385 Homebuilding Mid East 1,455,834 1,250,165 1,192,472 Homebuilding South East 1,074,386 864,528 734,590 Mortgage Banking 159,370 130,319 113,321 Consolidated revenues $ 7,163,674 $ 6,305,840 $ 5,822,544 Year Ended December 31, 2018 2017 2016 Profit before taxes: Homebuilding Mid Atlantic $ 462,178 $ 398,494 $ 301,173 Homebuilding North East 69,789 60,218 21,947 Homebuilding Mid East 175,134 149,639 121,166 Homebuilding South East 118,296 95,826 71,098 Mortgage Banking 93,462 73,959 63,711 Total segment profit 918,859 778,136 579,095 Reconciling items: Contract land deposit reserve adjustment (1) 783 1,307 10,933 Equity-based compensation expense (2) (75,701 ) (44,562 ) (43,598 ) Corporate capital allocation (3) 213,903 198,384 189,992 Unallocated corporate overhead (89,973 ) (89,514 ) (89,376 ) Consolidation adjustments and other 15,829 26,143 35,204 Corporate interest expense (23,968 ) (22,983 ) (20,553 ) Reconciling items sub-total 40,873 68,775 82,602 Consolidated profit before taxes $ 959,732 $ 846,911 $ 661,697 (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 year ended December 31, 2018 was primarily attributable to the issuance of Options and RSUs in the second quarter of 2018. 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, 2018 2017 2016 Corporate capital allocation charge: Homebuilding Mid Atlantic $ 123,855 $ 123,028 $ 119,758 Homebuilding North East 17,893 16,115 18,132 Homebuilding Mid East 35,803 29,663 28,303 Homebuilding South East 36,352 29,578 23,799 Total corporate capital allocation charge $ 213,903 $ 198,384 $ 189,992 As of December 31, 2018 2017 Assets: Homebuilding Mid Atlantic $ 1,018,953 $ 1,079,225 Homebuilding North East 144,412 143,008 Homebuilding Mid East 290,815 263,019 Homebuilding South East 332,468 277,705 Mortgage Banking 517,075 397,052 Total segment assets 2,303,723 2,160,009 Reconciling items: Cash and cash equivalents 688,783 645,087 Deferred taxes 112,333 111,953 Intangible assets and goodwill 49,989 50,144 Contract land deposit reserve (29,216 ) (29,999 ) Consolidation adjustments and other 40,321 52,085 Reconciling items sub-total 862,210 829,270 Consolidated assets $ 3,165,933 $ 2,989,279 Year Ended December 31, 2018 2017 2016 Interest income: Mortgage Banking $ 11,593 $ 7,850 $ 7,569 Total segment interest income 11,593 7,850 7,569 Other unallocated interest income 8,588 4,554 1,111 Consolidated interest income $ 20,181 $ 12,404 $ 8,680 Year Ended December 31, 2018 2017 2016 Interest expense: Homebuilding Mid Atlantic $ 123,908 $ 123,075 $ 119,808 Homebuilding North East 17,897 16,117 18,141 Homebuilding Mid East 35,804 29,663 28,307 Homebuilding South East 36,362 29,583 23,804 Mortgage Banking 1,045 1,148 1,086 Total segment interest expense 215,016 199,586 191,146 Corporate capital allocation (3) (213,903 ) (198,384 ) (189,992 ) Senior Notes and other interest 23,968 22,983 20,553 Consolidated interest expense $ 25,081 $ 24,185 $ 21,707 Year Ended December 31, 2018 2017 2016 Depreciation and amortization: Homebuilding Mid Atlantic $ 7,753 $ 8,095 $ 8,089 Homebuilding North East 1,600 2,034 2,053 Homebuilding Mid East 3,481 3,590 3,748 Homebuilding South East 2,523 2,531 2,276 Mortgage Banking 1,489 1,297 1,117 Total segment depreciation and amortization 16,846 17,547 17,283 Unallocated corporate 3,322 5,120 4,986 Consolidated depreciation and amortization $ 20,168 $ 22,667 $ 22,269 Year Ended December 31, 2018 2017 2016 Expenditures for property and equipment: Homebuilding Mid Atlantic $ 6,657 $ 9,257 $ 8,838 Homebuilding North East 1,074 1,299 3,423 Homebuilding Mid East 4,302 3,117 4,027 Homebuilding South East 2,732 3,313 3,594 Mortgage Banking 1,677 2,723 726 Total segment expenditures for property and equipment 16,442 19,709 20,608 Unallocated corporate 3,223 560 1,761 Consolidated expenditures for property and equipment $ 19,665 $ 20,269 $ 22,369 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure [Abstract] | |
Variable Interest Entities | Variable Interest Entities Lot Purchase Agreements NVR generally does not engage in the land development business. Instead, the Company typically acquires finished building lots at market prices from various development entities under Lot Purchase Agreements. The Lot Purchase Agreements require deposits that may be forfeited if NVR fails to perform under the Lot Purchase Agreements. The deposits required under the Lot Purchase Agreements are in the form of cash or letters of credit in varying amounts, and typically range up to 10% of the aggregate purchase price of the finished lots. NVR believes this lot acquisition strategy reduces the financial requirements and risks associated with direct land ownership and land development. NVR may, at its option, choose for any reason and at any time not to perform under these Lot Purchase Agreements by delivering notice of its intent not to acquire the finished lots under contract. NVR’s sole legal obligation and economic loss for failure to perform under these Lot Purchase Agreements is limited to the amount of the deposit pursuant to the liquidated damage provisions contained within the Lot Purchase Agreements. In other words, if NVR does not perform under a Lot Purchase Agreement, NVR loses only its deposit. None of the creditors of any of the development entities with which NVR enters Lot Purchase Agreements have recourse to the general credit of NVR. NVR generally does not have any specific performance obligations to purchase a certain number or any of the lots, nor does NVR guarantee completion of the development by the developer or guarantee any of the developers’ financial or other liabilities. NVR is not involved in the design or creation of the development entities from which the Company purchases lots under Lot Purchase Agreements. The developer’s equity holders have the power to direct 100% of the operating activities of the development entity. NVR has no voting rights in any of the development entities. The sole purpose of the development entity’s activities is to generate positive cash flow returns for the equity holders. Further, NVR does not share in any of the profit or loss generated by the project’s development. The profits and losses are passed directly to the developer’s equity holders. The deposit placed by NVR pursuant to the Lot Purchase Agreement is deemed to be a variable interest in the respective development entities. Those development entities are deemed to be variable interest entities (“VIE”). Therefore, the development entities with which NVR enters into Lot Purchase Agreements, including the joint venture limited liability corporations, discussed below, are evaluated for possible consolidation by NVR. An enterprise must consolidate a VIE when that enterprise has a controlling financial interest in the VIE. An enterprise is deemed to have a controlling financial interest if it has i) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and ii) the obligation to absorb losses of the VIE that could be significant to the VIE or the rights to receive benefits from the VIE that could be significant to the VIE. NVR believes the activities that most significantly impact a development entity’s economic performance are the operating activities of the entity. Unless and until a development entity completes finished building lots through the development process to be able to sell, the process of which the development entity’s equity investors bear the full risk, the entity does not earn any revenues. The operating development activities are managed solely by the development entity’s equity investors. The development entities with which NVR contracts to buy finished lots typically select the respective projects, obtain the necessary zoning approvals, obtain the financing required with no support or guarantees from NVR, select who will purchase the finished lots and at what price, and manage the completion of the infrastructure improvements, all for the purpose of generating a cash flow return to the development entity’s equity holders and all independent of NVR. The Company possesses no more than limited protective legal rights through the Lot Purchase Agreement in the specific finished lots that it is purchasing, and NVR possesses no participative rights in the development entities. Accordingly, NVR does not have the power to direct the activities of a developer that most significantly impact the developer’s economic performance. For this reason, NVR has concluded that it is not the primary beneficiary of the development entities with which the Company enters into Lot Purchase Agreements, and therefore NVR does not consolidate any of these VIEs. As of December 31, 2018 , NVR controlled approximately 95,750 lots under Lot Purchase Agreements with third parties through deposits in cash and letters of credit totaling approximately $420,900 and $3,800 , respectively. As noted above, NVR’s sole legal obligation and economic loss for failure to perform under these Lot Purchase Agreements is limited to the amount of the deposit pursuant to the liquidated damage provisions contained in the Lot Purchase Agreements and, in very limited circumstances, specific performance obligations. In addition, NVR has certain properties under contract with land owners that are expected to yield approximately 7,500 lots, which are not included in the number of total lots controlled. Some of these properties may require rezoning or other approvals to achieve the expected yield. These properties are controlled with deposits in cash and letters of credit totaling approximately $4,500 and $150 , respectively, as of December 31, 2018 , of which approximately $1,700 is refundable if NVR does not perform under the contract. NVR generally expects to assign the raw land contracts to a land developer and simultaneously enter into a Lot Purchase Agreement with the assignee if the project is determined to be feasible. NVR’s total risk of loss related to contract land deposits as of December 31, 2018 and 2017 was as follows: December 31, 2018 2017 Contract land deposits $ 425,393 $ 400,428 Loss reserve on contract land deposits (29,216 ) (29,999 ) Contract land deposits, net 396,177 370,429 Contingent obligations in the form of letters of credit 3,923 1,996 Contingent specific performance obligations (1) 1,505 1,505 Total risk of loss $ 401,605 $ 373,930 (1) As of both December 31, 2018 and 2017 , the Company was committed to purchase 10 finished lots under specific performance obligations. |
Joint Ventures
Joint Ventures | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Ventures | Joint Ventures On a limited basis, NVR obtains finished lots using joint venture limited liability corporations (“JVs”). The JVs are typically structured such that NVR is a non-controlling member and is at risk only for the amount the Company has invested, or committed to invest, in addition to any deposits placed under Lot Purchase Agreements with the joint venture. NVR is not a borrower, guarantor or obligor on any debt of the JVs, as applicable. The Company enters into a standard Lot Purchase Agreement to purchase lots from these JVs, and as a result has a variable interest in these JVs. During 2018 , the Company recognized an impairment of approximately $7,400 , including approximately $760 of capitalized interest, related to one of these JVs. The charge was recorded to homebuilding "Cost of sales" on the accompanying consolidated statements of income. None of the other JVs had any indicators of impairment during 2018. At December 31, 2018 , the Company had an aggregate investment totaling approximately $29,400 in six JVs that are expected to produce approximately 6,800 finished lots, of which approximately 3,450 lots were controlled by the Company and the remaining approximately 3,350 lots were either under contract with unrelated parties or not currently under contract. In addition, NVR had additional funding commitments in the aggregate totaling $5,000 to three of the JVs at December 31, 2018 . The Company has determined that it is not the primary beneficiary of five of the JVs because NVR and the other JV partner either share power or the other JV partner has the controlling financial interest. The aggregate investment in unconsolidated JVs was approximately $29,400 and $45,200 at December 31, 2018 and 2017 , respectively, and is reported in the “Other assets” line item on the accompanying consolidated balance sheets. For the remaining JV, NVR has concluded that it is the primary beneficiary because the Company has the controlling financial interest in the JV. The condensed balance sheets of the consolidated JV at December 31, 2018 and 2017 were as follows: December 31, 2018 2017 Assets: Cash $ 320 $ 1,069 Other assets — 37 Total assets $ 320 $ 1,106 Liabilities and equity: Accrued expenses $ 282 $ 487 Equity 38 619 Total liabilities and equity $ 320 $ 1,106 At December 31, 2017 , the Company had an aggregate investment totaling approximately $45,500 in six JVs that were expected to produce approximately 7,300 finished lots, of which approximately 3,900 lots were controlled by the Company and the remaining approximately 3,400 lots were either under contract with unrelated parties or not currently under contract. In addition, at December 31, 2017 , NVR had additional funding commitments in the aggregate totaling $5,300 to three of the JVs. With the Company's adoption of ASU 2016-15 effective January 1, 2018, the Company made the election to classify distributions received from unconsolidated JVs using the cumulative earnings approach. As a result, distributions received up to the amount of cumulative earnings recognized by the Company are reported as distributions of earnings and those in excess of that amount are reported as a distribution of capital. These distributions are classified within the accompanying consolidated statements of cash flows as cash flows from operating activities and investing activities, respectively. See Note 1 for additional discussion regarding the Company's adoption of ASU 2016-15. |
Land Under Development
Land Under Development | 12 Months Ended |
Dec. 31, 2018 | |
Real Estate [Abstract] | |
Land Under Development | Land Under Development On a limited basis, NVR directly acquires raw land parcels already zoned for its intended use to develop into finished lots. Land under development includes the land acquisition costs, direct improvement costs, capitalized interest where applicable, and real estate taxes. As of December 31, 2018 , NVR directly owned three separate raw parcels of land with a carrying value of $38,857 that it intends to develop into approximately 500 finished lots primarily for use in its homebuilding operations. The Company also has additional funding commitments of approximately $7,300 under a joint development agreement related to one parcel, a portion of which the Company expects will be offset by development credits of approximately $4,600 . None of the raw parcels had any indicators of impairment as of December 31, 2018 . As of December 31, 2017 , NVR directly owned four separate raw parcels of land with a carrying value of $34,212 , which were expected to produce approximately 500 finished lots. |
Capitalized Interest
Capitalized Interest | 12 Months Ended |
Dec. 31, 2018 | |
Capitalized Interest Costs, Including Allowance for Funds Used During Construction [Abstract] | |
Capitalized Interest | Capitalized Interest The Company capitalizes interest costs to land under development during the active development of finished lots. In addition, the Company capitalizes interest costs to its joint venture investments while the investments are considered qualified assets pursuant to ASC 835-20, Interest . Capitalized interest is transferred to sold or unsold inventory as the development of finished lots is completed, then charged to cost of sales upon the Company’s settlement of homes and the respective lots. Interest incurred in excess of the interest capitalizable based on the level of qualified assets is expensed in the period incurred. NVR’s interest costs incurred, capitalized, expensed and charged to cost of sales during the years ended December 31, 2018 , 2017 and 2016 was as follows: December 31, 2018 2017 2016 Interest capitalized, beginning of year $ 5,583 $ 5,106 $ 4,434 Interest incurred 26,277 26,384 25,951 Interest charged to interest expense (25,081 ) (24,185 ) (21,707 ) Interest charged to cost of sales (2,625 ) (1,722 ) (3,572 ) Interest capitalized, end of year $ 4,154 $ 5,583 $ 5,106 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions During the year ended December 31, 2018 , NVR entered into Lot Purchase Agreements to purchase finished building lots for a total purchase price of approximately $121,700 with Elm Street Development, Inc. (“Elm Street”), which is controlled by one of the Company’s directors, William Moran. The independent members of the Company’s Board of Directors approved these transactions. During 2018 , 2017 and 2016 , NVR purchased developed lots at market prices from Elm Street for approximately $36,100 , $37,100 and $44,500 , respectively. The Company also continues to control a parcel of raw land expected to yield approximately 2,300 finished lots through a JV entered into with Elm Street during 2009. NVR did not make any investments in the JV in 2018 . During 2017, NVR and Elm Street each made an additional investment of $2,900 in the JV. Further, during 2016 , the Company paid Elm Street $143 to manage the development of a property that the Company purchased from Elm Street in 2010. No management fees were paid to Elm Street in 2018 or 2017 related to this property. |
Property, Plant and Equipment (
Property, Plant and Equipment ("PP&E") | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment ("PP&E") | Property, Plant and Equipment (“PP&E”) December 31, 2018 2017 Homebuilding: Office facilities and other $ 37,789 $ 35,219 Model home furniture and fixtures 31,593 33,901 Production facilities 64,667 61,348 Gross Homebuilding PP&E 134,049 130,468 Less: accumulated depreciation (91,815 ) (87,277 ) Net Homebuilding PP&E $ 42,234 $ 43,191 Mortgage Banking: Office facilities and other $ 13,724 $ 14,069 Less: accumulated depreciation (7,214 ) (7,742 ) Net Mortgage Banking PP&E $ 6,510 $ 6,327 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior Notes On September 10, 2012 , NVR completed an offering for $600,000 of Senior Notes under a shelf registration statement filed on September 5, 2012 with the Securities and Exchange Commission. The Senior Notes were issued at a discount to yield 3.97% and have been reflected net of the unamortized discount in the accompanying consolidated balance sheet. The offering of the Senior Notes resulted in aggregate net proceeds of approximately $593,900 , after deducting underwriting discounts and other offering expenses. The Senior Notes mature on September 15, 2022 and bear interest at 3.95% , payable semi-annually in arrears on March 15 and September 15 . The Senior Notes have been reflected net of unamortized debt issuance costs of $1,886 and $2,395 as of December 31, 2018 and 2017 , respectively. The Senior Notes are senior unsecured obligations and rank equally in right of payment with any of NVR’s existing and future unsecured senior indebtedness, will rank senior in right of payment to any of NVR’s future indebtedness that is by its terms expressly subordinated to the Senior Notes and will be effectively subordinated to any of NVR’s existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness. The indenture governing the Senior Notes has, among other items, and subject to certain exceptions, covenants that restrict the Company’s ability to create, incur, assume or guarantee secured debt, enter into sale and leaseback transactions and conditions related to mergers and/or the sale of assets. Credit Agreement On July 15, 2016, NVR entered into an unsecured Credit Agreement (the “Credit Agreement”) with Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, Merrill Lynch, Pierce, Fenner & Smith Incorporated as Sole Lead Arranger and Sole Book Runner, and the other lenders party thereto, which provides for aggregate revolving loan commitments of $200,000 (the “Facility”). Proceeds of the borrowings under the Facility will be used for working capital and general corporate purposes. Under the Credit Agreement, the Company may request increases of up to $300,000 to the Facility in the form of revolving loan commitments or term loans to the extent that new or existing lenders agree to provide additional revolving loan or term loan commitments. The Credit Agreement provides for a $100,000 sublimit for the issuance of letters of credit of which approximately $9,000 was outstanding at December 31, 2018 , and a $25,000 sublimit for a swing line commitment. Borrowings under the Credit Agreement generally bear interest for Base Rate Loans at a Base Rate equal to the highest of (i) a Federal Funds Rate plus one-half of one percent, (ii) Bank of America’s publicly announced “prime rate,” and (iii) the Eurodollar Rate plus one percent, plus the Applicable Rate which is based on the Company’s debt rating, or for Eurodollar Rate Loans, at the Eurodollar Rate equal to LIBOR plus the Applicable Rate. The Credit Agreement contains various representations and affirmative and negative covenants that are generally customary for credit facilities of this type. Such covenants include, among others, the following financial maintenance covenants: (i) minimum consolidated tangible net worth, (ii) minimum interest coverage ratio or minimum liquidity and (iii) a maximum leverage ratio. The negative covenants include, among others, certain limitations on liens, investments and fundamental changes. The Credit Agreement termination date is July 15, 2021 . The Company was in compliance with all covenants under the Credit Agreement at December 31, 2018 . There was no debt outstanding under the Facility at December 31, 2018 . Repurchase Agreement On July 25, 2018, NVRM entered into the Tenth Amendment (the “Amendment”) to its Amended and Restated Master Repurchase Agreement dated August 2, 2011 with U.S. Bank National Association (as amended by the Amendment and nine earlier amendments, the “Repurchase Agreement”). The purpose of the Repurchase Agreement is to finance the origination of mortgage loans by NVRM. The Repurchase Agreement provides for loan purchases up to $150,000 , subject to certain sub limits. Advances under the Repurchase Agreement carry a Pricing Rate based on the LIBOR Rate plus the LIBOR Margin, as determined under the Repurchase Agreement, provided that the Pricing Rate shall not be less than 1.95% . The Pricing Rate at December 31, 2018 was 4.513% . There are several restrictions on purchased loans, including that they cannot be sold to others, they cannot be pledged to anyone other than the agent, and they cannot support any other borrowing or repurchase agreement. Amounts outstanding under the Repurchase Agreement are collateralized by the Company’s mortgage loans held for sale. At December 31, 2018 , there were no borrowing base limitations reducing the amount available under the Repurchase Agreement. As of both December 31, 2018 and 2017 , there was no debt outstanding under the Repurchase Agreement. The Repurchase Agreement expires on July 24, 2019 . The Repurchase Agreement contains various affirmative and negative covenants. The negative covenants include, among others, certain limitations on transactions involving acquisitions, mergers, the incurrence of debt, sale of assets and creation of liens upon any of its Mortgage Notes. Additional covenants include (i) a tangible net worth requirement, (ii) a minimum liquidity requirement, (iii) a minimum net income requirement, and (iv) a maximum leverage ratio requirement. The Company was in compliance with all covenants under the Repurchase Agreement at December 31, 2018 . |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Common Stock | Common Stock There were approximately 3,578 and 3,691 common shares outstanding at December 31, 2018 and 2017 , respectively. The Company made the following share repurchases during the years indicated: Year Ended December 31, 2018 2017 2016 Aggregate purchase price $ 846,134 $ 422,166 $ 455,351 Number of shares repurchased 301 167 280 The Company issues shares from the treasury account for all equity plan activity. The Company issued 188 , 165 and 83 such shares during 2018 , 2017 and 2016 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes consists of the following: Year Ended December 31, 2018 2017 2016 Current: Federal $ 126,358 $ 211,641 $ 209,454 State 37,038 37,006 38,095 Deferred: Federal 138 60,785 (9,230 ) State (999 ) (42 ) (1,884 ) Income tax expense $ 162,535 $ 309,390 $ 236,435 Deferred income taxes on NVR’s consolidated balance sheets were comprised of the following: December 31, 2018 2017 Deferred tax assets: Other accrued expenses and contract land deposit reserve $ 51,316 $ 49,063 Deferred compensation 4,693 4,743 Equity-based compensation expense 40,744 36,799 Inventory 9,242 9,393 Unrecognized tax benefit 13,587 14,351 Other 5,113 9,681 Total deferred tax assets 124,695 124,030 Less: Deferred tax liabilities 6,091 4,511 Net deferred tax asset $ 118,604 $ 119,519 Deferred tax assets arise principally as a result of various accruals required for financial reporting purposes and equity-based compensation expense, which are not currently deductible for tax return purposes. Management believes that the Company will have sufficient future taxable income to make it more likely than not that the net deferred tax assets will be realized. Federal taxable income is estimated to be approximately $636,849 for the year ended December 31, 2018 , and was $621,587 for the year ended December 31, 2017 . A reconciliation of income taxes computed at the federal statutory rate ( 21% in 2018 and 35% in 2017 and 2016) to income tax expense is as follows: Year Ended December 31, 2018 2017 2016 Income taxes computed at the federal statutory rate $ 201,544 $ 296,419 $ 231,595 State income taxes, net of federal income tax benefit (1) 42,944 30,046 23,738 Excess tax benefits from equity-based compensation (2) (77,478 ) (58,681 ) — Remeasurement of net deferred tax assets due to enactment of Tax Cut and Jobs Act (3) (497 ) 62,702 — Other, net (4) (3,978 ) (21,096 ) (18,898 ) Income tax expense $ 162,535 $ 309,390 $ 236,435 (1) Excludes state excess tax benefits from equity-based compensation included in the line below. (2) ASU 2016-09 adopted January 1, 2017. Excess tax benefits related to equity-based compensation of $13,661 in 2016 were recorded to shareholders' equity. (3) The enactment of the Tax Cuts and Jobs Act in December 2017 required a remeasurement of the Company's net deferred tax assets and resulted in additional income tax expense of $62,702 . (4) Primarily attributable to tax benefits from certain energy credits for the year ended December 31, 2018. For the years ended December 31, 2017 and 2016, this was primarily attributable to tax benefits from the domestic production activities deduction. The domestic production activities deduction was eliminated effective January 1, 2018, following the enactment of the Tax Cuts and Jobs Act in December 2017. The Company’s effective tax rate in 2018 , 2017 and 2016 was 16.94% , 36.53% and 35.73% , respectively. The Company files a consolidated U.S. federal income tax return, as well as state and local tax returns in all jurisdictions where the Company maintains operations. With few exceptions, the Company is no longer subject to income tax examinations by tax authorities for years prior to 2015 . A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended December 31, 2018 2017 Balance at beginning of year $ 45,337 $ 46,110 Additions based on tax positions related to the current year 4,340 4,793 Reductions for tax positions of prior years (6,259 ) (5,566 ) Settlements — — Balance at end of year $ 43,418 $ 45,337 If recognized, the total amount of unrecognized tax benefits that would affect the effective tax rate (net of the federal tax benefit) is $34,300 as of December 31, 2018 . The Company recognizes interest related to unrecognized tax benefits as a component of income tax expense. For the years ended December 31, 2018 , 2017 , and 2016, the Company recognized a net reversal of accrued interest on unrecognized tax benefits in the amount of $1,384 , $1,065 and $1,582 , respectively. As of December 31, 2018 and 2017 , the Company had a total of $17,191 and $18,575 , respectively, of accrued interest on unrecognized tax benefits which are included in “Accrued expenses and other liabilities” on the accompanying consolidated balance sheets. Based on its historical experience in dealing with various taxing authorities, the Company has found that it is the administrative practice of these authorities to not seek penalties from the Company for the tax positions it has taken on its returns, related to its unrecognized tax benefits. Therefore, the Company does not accrue penalties for the positions in which it has an unrecognized tax benefit. However, if such penalties were to be accrued, they would be recorded as a component of income tax expense. The Company believes that within the next 12 months, it is reasonably possible that the unrecognized tax benefits as of December 31, 2018 will be reduced by approximately $11,570 due to statute expiration and effectively settled positions in various state jurisdictions. |
Equity-Based Compensation, Prof
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans | Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans Equity-Based Compensation Plans NVR’s equity-based compensation plans provide for the granting of Options and RSUs to key management employees, including executive officers and members of our Board of Directors ("Directors"), of the Company. The exercise price of Options granted is equal to the closing price of the Company’s common stock on the New York Stock Exchange (the “NYSE”) on the day prior to the date of grant. Options are granted for a ten -year term and typically vest in separate tranches over periods of 3 to 6 years. RSUs generally vest in separate tranches over periods of 2 to 6 years. Grants are generally divided such that vesting for 50% of the grant is contingent solely on continued employment or service as a Director, while vesting for the remaining 50% of the grant is contingent upon both continued employment or service as a Director and the achievement of a performance metric based on the Company’s return on capital performance relative to a peer group during a three year period specified on the date of Option grant. The following table provides a summary of each of the Company’s equity-based compensation plans for any plan with grants outstanding at December 31, 2018 : Equity-Based Compensation Plans Shares Authorized Options/RSUs Outstanding Shares Available to Issue 2000 Broadly-Based Stock Option Plan 2,000 63 — 2010 Equity Incentive Plan (1) 700 160 26 2014 Equity Incentive Plan (2) 950 701 102 2018 Equity Incentive Plan (3) 275 146 129 (1) During 2010, the Company’s shareholders approved the 2010 Equity Incentive Plan (the “2010 Plan”). The 2010 Plan authorizes the Company to issue Options and RSUs to key management employees, including executive officers and Directors. Of the 700 aggregate shares available to issue, up to 240 may be granted in the form of RSUs. There were 139 Options and 21 RSUs outstanding as of December 31, 2018 . Of the 26 shares available to be issued under the 2010 Plan, 22 may be granted as RSUs. (2) During 2014, the Company’s shareholders approved the 2014 Equity Incentive Plan (the “2014 Plan”). The 2014 Plan authorizes the Company to issue Options to key management employees, including executive officers and Directors. (3) The Company’s shareholders approved the 2018 Equity Incentive Plan (the "2018 Plan") at the Company’s Annual Meeting of Shareholders held on May 2, 2018. The 2018 Plan authorizes the Company to issue up to an aggregate of 275 shares of the Company’s common stock in the form of Options and RSUs to key management employees, including executive officers and Directors. Of the 275 aggregate shares available to issue, all may be granted in the form of Options and up to 40 may be granted in the form of RSUs. During 2018 , the Company issued 345 Options and 16 RSUs under the 2010 Plan, the 2014 Plan, and the 2018 Plan as follows: 2010 Plan 2014 Plan 2018 Plan Options Granted Options (4) 6 93 73 Performance-based Options (5) — 100 73 Total Options Granted 6 193 146 RSUs Granted RSUs (6) 8 — — Performance-based RSUs (7) 8 — — Total RSUs Granted 16 — — (4) Of the 172 service-only Options granted, 34 will generally vest over two years in 50% increments on December 31, 2020 and 2021; the remaining 138 Options will generally vest over four years in 25% increments on December 31, 2020, 2021, 2022, and 2023. Vesting for the Options is contingent solely upon continued employment or continued service as a Director. (5) Of the 173 performance-based Options granted, 34 will vest over two years in 50% increments on December 31, 2020 and 2021; the remaining 139 performance-based Options will generally vest over four years in 25% increments on December 31, 2020, 2021, 2022, and 2023. Vesting for the performance-based Options is contingent upon both continued employment or continued service as a Director and the Company's return on capital performance during 2018 through 2020. (6) The service-only RSUs granted will vest over two years in 50% increments on December 31, 2022 and 2023. Vesting for the RSUs is contingent solely upon continued employment. (7) The performance-based RSUs granted will vest over two years in 50% increments on December 31, 2022 and 2023. Vesting for the performance-based RSUs is contingent upon both continued employment and the Company's return on capital performance during 2018 through 2020. The following table provides additional information relative to NVR’s equity-based compensation plans for the year ended December 31, 2018 : Shares Weighted Avg. Per Share Exercise Price Weighted Avg. Remaining Contract Life (years) Aggregate Intrinsic Value Stock Options Outstanding at December 31, 2017 916 $ 1,119.92 Granted 345 3,013.61 Exercised (182 ) 954.49 Forfeited (30 ) 1,283.48 Outstanding at December 31, 2018 1,049 $ 1,766.87 6.5 $ 703,087 Exercisable at December 31, 2018 466 $ 1,032.44 4.6 $ 655,141 RSUs Outstanding at December 31, 2017 10 Granted 16 Vested (5 ) Forfeited — Outstanding at December 31, 2018 21 $ 50,719 Vested, but not issued at December 31, 2018 5 $ 11,532 To estimate the grant-date fair value of its Options, the Company uses the Black-Scholes option-pricing model (the “Pricing Model”). The Pricing Model estimates the per share fair value of an option on its date of grant based on the following factors: the option’s exercise price; the price of the underlying stock on the date of grant; the estimated dividend yield; a risk-free interest rate; the estimated option term; and the expected volatility. For the risk-free interest rate, the Company uses U.S. Treasury STRIPS which mature at approximately the same time as the option’s expected holding term. For expected volatility, NVR has concluded that its historical volatility over the option’s expected holding term provides the most reasonable basis for this estimate. The fair value of the Options granted during 2018 , 2017 and 2016 was estimated on the grant date using the Pricing Model, based on the following assumptions: 2018 2017 2016 Estimated option life (years) 5.06 5.26 5.27 Risk free interest rate (range) 2.19%-3.13% 1.53%-2.38% 0.86%-2.21% Expected volatility (range) 16.57%-20.05% 15.09%-17.95% 15.91%-23.49% Expected dividend rate — % — % — % Weighted average grant-date fair value per share of options granted $ 687.81 $ 494.17 $ 320.21 The weighted-average grant date fair value per share of $3,015.83 for the RSUs was the closing price of the Company’s common stock on the day immediately preceding the date of grant. Compensation cost for Options and RSUs is recognized on a straight-line basis over the requisite service period for the entire award (from the date of grant through the period of the last separately vesting portion of the grant). For the recognition of equity-based compensation, the Options and RSUs which are subject to a performance condition are treated as a separate award from the “service-only” Options and RSUs, and compensation expense is recognized when it becomes probable that the stated performance target will be achieved. The Company currently believes that it is probable that the stated performance condition will be satisfied at the target level and is recognizing compensation expense related to such Options and RSUs accordingly. Compensation cost is recognized within the income statement in the same expense line as the cash compensation paid to the respective employees. In connection with the adoption of ASU 2016-09 on January 1, 2017, the Company made the election to recognize forfeitures of equity-based awards as a reduction to compensation costs in the period in which they occur. For the year ended December 31, 2016, the Company estimated forfeitures based on its historical forfeiture rate. In 2018 , 2017 and 2016 , the Company recognized $75,701 , $44,562 , and $43,598 in equity-based compensation costs, respectively, and approximately $17,200 , $17,100 , and $17,000 in tax benefit related to equity-based compensation costs, respectively. As of December 31, 2018 , the total unrecognized compensation cost for all outstanding Options and RSUs equaled approximately $302,000 . The unrecognized compensation cost will be recognized over each grant’s applicable vesting period with the latest vesting date being December 31, 2024. The weighted-average period over which the unrecognized compensation will be recorded is equal to approximately 2.6 years. The Company settles Option exercises and vesting of RSUs by issuing shares of treasury stock. Shares are relieved from the treasury account based on the weighted average cost of treasury shares acquired. During the years ended December 31, 2018 , 2017 and 2016 , the Company issued 188 , 165 and 83 shares, respectively, from the treasury account for Option exercises and vesting of RSUs. Information with respect to the vested RSUs and exercised Options is as follows: Year Ended December 31, 2018 2017 2016 Aggregate exercise proceeds $ 174,110 $ 140,525 $ 38,106 Aggregate intrinsic value on exercise dates $ 355,318 $ 206,890 $ 96,600 Profit Sharing Plans NVR has a trustee-administered, profit sharing retirement plan (the “Profit Sharing Plan”) and an Employee Stock Ownership Plan (“ESOP”) covering substantially all employees. The Profit Sharing Plan and the ESOP provide for annual discretionary contributions in amounts as determined by the NVR Board of Directors. The combined plan contribution for the years ended December 31, 2018 , 2017 and 2016 was approximately $19,500 , $18,400 and $16,700 , respectively. The ESOP purchased approximately 7 and 6 shares of NVR common stock in the open market for the 2018 and 2017 plan year contributions, respectively, using cash contributions provided by the Company. As of December 31, 2018 , all shares held by the ESOP had been allocated to participants’ accounts. The 2018 plan year contribution was funded and fully allocated to participants in February 2019 . Deferred Compensation Plans The Company has two deferred compensation plans (“Deferred Comp Plans”). The specific purpose of the Deferred Comp Plans is to i) establish a vehicle whereby named executive officers may defer the receipt of salary and bonus that otherwise would be nondeductible for Company tax purposes into a period where the Company would realize a tax deduction for the amounts paid, and ii) to enable certain employees who are subject to the Company’s stock holding requirements to acquire shares of the Company’s common stock on a pre-tax basis in order to more quickly meet, and maintain compliance with those stock holding requirements. Amounts deferred into the Deferred Comp Plans are invested in NVR common stock, held in a rabbi trust account, and are paid out in a fixed number of shares upon expiration of the deferral period. The rabbi trust account held 107 and 109 shares of NVR common stock as of December 31, 2018 and 2017 , respectively. Shares held by the Deferred Comp Plans are treated as outstanding shares in the Company’s earnings per share calculation for each of the years ended December 31, 2018 , 2017 and 2016 . |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities NVR is committed under multiple non-cancelable operating leases involving office space, model homes, production facilities, automobiles and equipment. Future minimum lease payments under these operating leases as of December 31, 2018 are as follows: Year Ending December 31, 2019 $ 31,564 2020 22,210 2021 17,331 2022 13,667 2023 10,324 Thereafter 12,607 107,703 Sublease income (25 ) $ 107,678 Total rent expense incurred under operating leases was approximately $52,900 , $49,400 and $45,800 for the years ended December 31, 2018 , 2017 and 2016 , respectively. The Company generally does not engage in the land development business. Instead, the Company typically acquires finished building lots at market prices from various development entities under Lot Purchase Agreements. The Lot Purchase Agreements require deposits that may be forfeited if the Company fails to perform under the agreement. The deposits required under the Lot Purchase Agreements are in the form of cash or letters of credit in varying amounts, and typically range up to 10% of the aggregate purchase price of the finished lots. At December 31, 2018 , assuming that contractual development milestones are met and the Company exercises its option, the Company expects to place additional forfeitable deposits with land developers under existing Lot Purchase Agreements of approximately $193,600 . The Company also has one specific performance contract pursuant to which the Company is committed to purchase 10 finished lots at an aggregate purchase price of approximately $1,505 . Additionally, as of December 31, 2018 , we had funding commitments totaling approximately $7,300 under a joint development agreement related to our land under development, a portion of which we expect will be offset by development credits of approximately $4,600 . During the ordinary course of operating the homebuilding and mortgage banking businesses, the Company is required to enter into bond or letter of credit arrangements with local municipalities, government agencies, or land developers to collateralize its obligations under various contracts. The Company had approximately $37,600 of contingent obligations under such agreements, including approximately $9,000 for letters of credit issued under the Credit Agreement as of December 31, 2018 . The Company believes it will fulfill its obligations under the related contracts and does not anticipate any material losses under these bonds or letters of credit. The following table reflects the changes in the Company’s warranty reserve (see Note 1 herein for further discussion of warranty/product liability reserves): Year Ended December 31, 2018 2017 2016 Warranty reserve, beginning of year $ 94,513 $ 93,895 $ 87,407 Provision 62,553 44,652 50,787 Payments (53,366 ) (44,034 ) (44,299 ) Warranty reserve, end of year $ 103,700 $ 94,513 $ 93,895 The Company and its subsidiaries are also involved in various other litigation arising in the ordinary course of business. In the opinion of management, and based on advice of legal counsel, this litigation is not expected to have a material adverse effect on the financial position, results of operations or cash flows of the Company. Legal costs incurred in connection with outstanding litigation are expensed as incurred. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value GAAP assigns a fair value hierarchy to the inputs used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets and liabilities. Level 2 inputs are inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs. Financial Instruments The estimated fair values of NVR’s Senior Notes as of December 31, 2018 and 2017 were $594,000 and $630,000 , respectively. The estimated fair value is based on recent market prices of similar transactions, which is classified as Level 2 within the fair value hierarchy. The carrying values at December 31, 2018 and 2017 were $597,681 and $597,066 , respectively. Except as otherwise noted below, NVR believes that insignificant differences exist between the carrying value and the fair value of its financial instruments, which consists primarily of cash equivalents, due to their short term nature. Derivative Instruments and Mortgage Loans Held for Sale In the normal course of business, NVRM, enters into contractual commitments to extend credit to buyers of single-family homes with fixed expiration dates. The commitments become effective when the borrowers “lock-in” a specified interest rate within time frames established by NVRM. All mortgagors are evaluated for credit worthiness prior to the extension of the commitment. Market risk arises if interest rates move adversely between the time of the “lock-in” of rates by the borrower and the sale date of the loan to a broker/dealer. To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, NVRM enters into optional or mandatory delivery forward sales contracts to sell whole loans and mortgage-backed securities to broker/dealers. The forward sales contracts lock-in an interest rate and price for the sale of loans similar to the specific rate lock commitments. NVRM does not engage in speculative or trading derivative activities. Both the rate lock commitments to borrowers and the forward sale contracts to broker/dealers are undesignated derivatives and, accordingly, are marked to fair value through earnings. At December 31, 2018 , there were contractual commitments to extend credit to borrowers aggregating $682,152 and open forward delivery contracts aggregating $1,089,923 , which hedge both the rate lock loan commitments and closed loans held for sale. The fair value of the Company’s rate lock commitments to borrowers and the related input levels includes, as applicable: i) the assumed gain/loss of the expected resultant loan sale (Level 2); ii) the effects of interest rate movements between the date of the rate lock and the balance sheet date (Level 2); and iii) the value of the servicing rights associated with the loan (Level 2). The assumed gain/loss considers the excess servicing to be received or buydown fees to be paid upon securitization of the loan. The excess servicing and buydown fees are calculated pursuant to contractual terms with investors. To calculate the effects of interest rate movements, NVRM utilizes applicable published mortgage-backed security prices, and multiplies the price movement between the rate lock date and the balance sheet date by the notional loan commitment amount. NVRM sells all of its loans on a servicing released basis, and receives a servicing released premium upon sale. Thus, the value of the servicing rights is included in the fair value measurement and is based upon contractual terms with investors and varies depending on the loan type. NVRM assumes a fallout rate when measuring the fair value of rate lock commitments. Fallout is defined as locked loan commitments for which NVRM does not close a mortgage loan and is based on historical experience. The fair value of NVRM’s forward sales contracts to broker/dealers solely considers the market price movement of the same type of security between the trade date and the balance sheet date (Level 2). The market price changes are multiplied by the notional amount of the forward sales contracts to measure the fair value. Mortgage loans held for sale are recorded at fair value when closed, and thereafter are carried at the lower of cost or fair value, net of deferred origination costs, until sold. Fair value is measured using Level 2 inputs. As of December 31, 2018 , the fair value of loans held for sale of $458,324 included on the accompanying consolidated balance sheet has been increased by $10,880 from the aggregate principal balance of $447,444 . As of December 31, 2017 , the fair value of loans held for sale of $352,489 were increased by $1,931 from the aggregate principal balance of $350,558 . The fair value measurement of NVRM's undesignated derivative instruments was as follows: As of December 31, 2018 2017 Rate lock commitments: Gross assets $ 13,831 $ 5,400 Gross liabilities 345 1,832 Net rate lock commitments $ 13,486 $ 3,568 Forward sales contracts: Gross assets $ 64 $ 992 Gross liabilities 10,121 667 Net forward sales contracts $ (10,057 ) $ 325 As of December 31, 2018 , the net rate lock commitments are reported in mortgage banking "Other assets" and the net forward sales contracts are reported in mortgage banking "Accrued expenses and other liabilities" on the accompanying consolidated balance sheets. As of December 31, 2017 , both the net rate lock commitments and the net forward sales contracts are reported in mortgage banking "Other assets." The fair value measurement as of December 31, 2018 was as follows: Notional or Principal Amount Assumed Gain/(Loss) From Loan Sale Interest Rate Movement Effect Servicing Rights Value Security Price Change Total Fair Value Measurement Gain/(Loss) Rate lock commitments $ 682,152 $ 1,360 $ 4,630 $ 7,496 $ — $ 13,486 Forward sales contracts $ 1,089,923 — — — (10,057 ) (10,057 ) Mortgages held for sale $ 447,444 1,267 3,637 5,976 — 10,880 Total fair value measurement $ 2,627 $ 8,267 $ 13,472 $ (10,057 ) $ 14,309 The total fair value measurement as of December 31, 2017 was $5,824 . For the years ended December 31, 2018 , and 2017 , NVRM recorded a fair value adjustment to income of $8,485 and $1,638 , respectively. For the year ended December 31, 2016 , NVRM recorded a fair value adjustment to expense of $3,147 . Unrealized gains/losses from the change in the fair value measurements are included in earnings as a component of mortgage banking fees in the accompanying consolidated statements of income. The fair value measurement will be impacted in the future by the change in the value of the servicing rights, interest rate movements, security price fluctuations, and the volume and product mix of NVRM’s closed loans and locked loan commitments. |
Mortgage Repurchase Reserve
Mortgage Repurchase Reserve | 12 Months Ended |
Dec. 31, 2018 | |
Mortgage Repurchase Reserve [Abstract] | |
Mortgage Repurchase Reserve | Mortgage Repurchase Reserve During the years ended December 31, 2018 , 2017 and 2016 , the Company recognized pre-tax charges for loan losses related to mortgage loans sold of approximately $3,200 , $2,900 and $2,000 , respectively. Included in the Mortgage Banking segment’s “Accounts payable and other liabilities” line item on the accompanying consolidated balance sheets is a mortgage repurchase reserve equal to approximately $15,600 and $14,000 at December 31, 2018 and 2017 , respectively. |
Quarterly Results (unaudited)
Quarterly Results (unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (unaudited) | Quarterly Results (unaudited) The following table sets forth unaudited selected financial data and operating information on a quarterly basis for the years ended December 31, 2018 and 2017 . Year Ended December 31, 2018 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter Revenues – homebuilding operations $ 1,954,403 $ 1,809,345 $ 1,750,463 $ 1,490,093 Gross profit – homebuilding operations $ 363,668 $ 336,696 $ 333,666 $ 278,147 Mortgage banking fees $ 40,145 $ 43,062 $ 36,842 $ 39,321 Net income $ 232,158 $ 195,816 $ 203,174 $ 166,049 Diluted earnings per share $ 58.57 $ 48.28 $ 49.05 $ 39.34 New orders (units) 3,841 4,302 4,964 5,174 Settlements (units) 5,186 4,754 4,611 3,896 Backlog, end of period (units) 8,365 9,710 10,162 9,809 Loans closed $ 1,356,430 $ 1,249,199 $ 1,214,101 $ 1,009,673 Year Ended December 31, 2017 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter Revenues – homebuilding operations $ 1,781,494 $ 1,633,726 $ 1,512,714 $ 1,247,587 Gross profit – homebuilding operations $ 343,187 $ 325,755 $ 294,631 $ 221,570 Mortgage banking fees $ 34,842 $ 34,194 $ 31,778 $ 29,505 Net income $ 124,619 $ 162,102 $ 147,877 $ 102,923 Diluted earnings per share $ 28.88 $ 38.02 $ 35.19 $ 25.12 New orders (units) 4,306 4,200 4,678 4,424 Settlements (units) 4,630 4,158 3,917 3,256 Backlog, end of period (units) 8,531 8,855 8,813 8,052 Loans closed $ 1,229,695 $ 1,115,494 $ 1,041,613 $ 843,341 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Significant Accounting Policies [Line Items] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of NVR, Inc. and its subsidiaries (“NVR” or the “Company”) and certain other entities in which the Company is deemed to be the primary beneficiary (see Notes 3 and 4 herein for additional information). All significant intercompany transactions have been eliminated in consolidation. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Management continually evaluates the estimates used to prepare the consolidated financial statements and updates those estimates as necessary. In general, the Company’s estimates are based on historical experience, on information from third party professionals, and other various assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ materially from those estimates made by management. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include short-term investments with original maturities of three months or less. Homebuilding restricted cash was attributable to customer deposits for certain home sales. Mortgage banking restricted cash included amounts collected from customers for loans in process and closed mortgage loans held for sale. |
Homebuilding Inventory | Homebuilding Inventory The carrying value of inventory is stated at the lower of cost or market value. Cost of lots and completed and uncompleted housing units represent the accumulated actual cost of the units. Field construction supervisors’ salaries and related direct overhead expenses are included in inventory costs. Interest costs are not capitalized into inventory, with the exception of land under development and joint venture investments, as applicable (see below). Upon settlement, the cost of the unit is expensed on a specific identification basis. Cost of building materials is determined on a first-in, first-out basis. Sold inventory is evaluated for impairment based on the contractual sales price compared to the total estimated cost to construct. Unsold inventory is evaluated for impairment by analyzing recent comparable sales prices within the applicable community compared to the costs incurred to date plus the expected costs to complete. Any calculated impairments are recorded immediately. |
Contract Land Deposits | Contract Land Deposits The Company purchases finished lots under fixed price lot purchase agreements (“Lot Purchase Agreements”) that require deposits that may be forfeited if NVR fails to perform under the contract. The deposits are in the form of cash or letters of credit in varying amounts and represent a percentage of the aggregate purchase price of the finished lots. NVR maintains an allowance for losses on contract land deposits that reflects the Company’s judgment of the present loss exposure in the existing contract land deposit portfolio at the end of the reporting period. To analyze contract land deposit impairments, NVR conducts a loss contingency analysis each quarter. In addition to considering market and economic conditions, NVR assesses contract land deposit impairments on a community-by-community basis pursuant to the purchase contract terms, analyzing, as applicable, current sales absorption levels, recent sales’ direct profit, the dollar differential between the contractual purchase price and the current market price for lots, a developer’s financial stability, a developer’s financial ability or willingness to reduce lot prices to current market prices, if necessary, and the contract’s default status by either the Company or the developer along with an analysis of the expected outcome of any such default. NVR’s analysis is focused on whether the Company can sell houses at an acceptable margin and sales pace in a particular community in the current market with which the Company is faced. Because the Company does not own the finished lots on which the Company has placed a contract land deposit, if the above analysis leads to a determination that the Company cannot sell homes at an acceptable margin and sales pace at the current contractual lot price, the Company then determines whether it will elect to default under the contract, forfeit the deposit and terminate the contract, or whether the Company will attempt to restructure the lot purchase contract, which may require it to forfeit the deposit to obtain contract concessions from a developer. The Company also assesses whether impairment is present due to collectability issues resulting from a developer’s non-performance because of financial or other conditions. |
Land Under Development | Land Under Development On a limited basis, NVR directly acquires raw parcels of land already zoned for its intended use to develop into finished lots. Land under development includes the land acquisition costs, direct improvement costs, capitalized interest, where applicable, and real estate taxes. Land under development, including the land under development held by the Company’s unconsolidated joint ventures and the related joint venture investments, is reviewed for potential write-downs when impairment indicators are present. In addition to considering market and economic conditions, the Company assesses land under development impairments on a community-by-community basis, analyzing, as applicable, current sales absorption levels, recent sales’ direct profit, and the dollar differential between the projected fully-developed cost of the lots and the current market price for lots. If indicators of impairment are present for a community, NVR performs an analysis to determine if the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts, and if so, impairment charges are required to be recorded in an amount by which the carrying amount of the assets exceeds the fair value of such assets. The Company’s determination of fair value is primarily based on discounting the estimated future cash flows at a rate commensurate with the inherent risks associated with the assets and related estimated cash flow streams. See Notes 4 and 5 for further discussion of land under development and joint venture investments, respectively. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is based on the estimated useful lives of the assets using the straight-line method. Model home furniture and fixtures are generally depreciated over a two -year period, office facilities and other equipment are depreciated over a period of three to ten years and production facilities are depreciated over periods of five to forty years. |
Intangible Assets | Intangible Assets On December 31, 2012, the Company acquired substantially all of the assets of Heartland Homes, Inc., which resulted in the Company recording finite-lived intangible assets and goodwill. The Company completed its annual assessment for impairment of goodwill and management determined that there was no impairment. As of December 31, 2018 and 2017 , finite-lived intangible assets, net of accumulated amortization, totaled $621 and $776 , respectively. The remaining finite-lived intangible assets will be amortized on a straight-line basis over 4 years. As of both December 31, 2018 and 2017 , the goodwill value was $441 . Finite-lived intangible assets and goodwill are included in homebuilding "Other assets" in the accompanying consolidated balance sheets. |
Warranty/Product Liability Reserves | Warranty/Product Liability Reserves The Company establishes warranty and product liability reserves to provide for estimated future expenses as a result of construction and product defects, product recalls and litigation incidental to NVR’s homebuilding business. Liability estimates are determined based on management’s judgment considering such factors as historical experience, the likely current cost of corrective action, manufacturers’ and subcontractors’ participation in sharing the cost of corrective action, consultations with third party experts such as engineers, and discussions with the Company’s General Counsel and outside counsel retained to handle specific product liability cases. |
Mortgage Loans Held for Sale, Derivatives and Hedging Activities | Mortgage Repurchase Reserve, Mortgage Loans Held for Sale and Derivatives and Hedging Activities NVR originates several different loan products to its customers to finance the purchase of a home through its wholly-owned mortgage subsidiary, NVR Mortgage Finance, Inc. (“NVRM”). NVRM sells all of the loans it originates into the secondary market on a servicing released basis, typically within 30 days from closing. All of the loans that NVRM originates are underwritten to the standards and specifications of the ultimate investor. Those underwriting standards are typically equal to or more stringent than the underwriting standards required by Fannie Mae (“FNMA”), Freddie Mac ("FHLMC"), the Department of Veterans Affairs (“VA”) and the Federal Housing Administration (“FHA”). Insofar as NVRM underwrites its originated loans to those standards, NVRM bears no increased concentration of credit risk from the issuance of loans, except in certain limited instances where early payment default occurs. NVRM employs a quality control department to ensure that its underwriting controls are effectively operating, and further assesses the underwriting function as part of its assessment of internal controls over financial reporting. NVRM maintains a reserve for losses on mortgage loans originated that reflects NVR’s judgment of the present loss exposure in the loans that NVRM has originated and sold. The reserve is calculated based on an analysis of historical experience and exposure (see Note 15 herein for further information). Mortgage loans held for sale are recorded at fair value when closed, and thereafter are carried at the lower of cost or fair value, net of deferred origination costs, until sold. In the normal course of business, NVRM enters into contractual commitments to extend credit to buyers of single-family homes with fixed expiration dates. The commitments become effective when the borrowers “lock-in” a specified interest rate within time frames established by NVRM. All mortgagors are evaluated for credit worthiness prior to the extension of the commitment. Market risk arises if interest rates move adversely between the time of the “lock-in” of rates by the borrower and the sale date of the loan to a broker/dealer. To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, NVRM enters into optional or mandatory delivery forward sale contracts to sell whole loans and mortgage-backed securities to broker/dealers. The forward sale contracts lock-in an interest rate and price for the sale of loans similar to the specific rate lock commitments. NVRM does not engage in speculative or trading derivative activities. Both the rate lock commitments to borrowers and the forward sale contracts to broker/dealers are undesignated derivatives, and, accordingly, are marked to fair value through earnings. At December 31, 2018 , there were contractual commitments to extend credit to borrowers aggregating $682,152 , and open forward delivery sale contracts aggregating $1,089,923 , which hedge both the rate lock loan commitments and closed loans held for sale (see Note 14 herein for a description of the Company’s fair value accounting). |
Earnings Per Share | Earnings per Share The following weighted average shares and share equivalents were used to calculate basic and diluted earnings per share for the years ended December 31, 2018 , 2017 and 2016 : Year Ended December 31, 2018 2017 2016 Weighted average number of shares outstanding used to calculate basic EPS 3,631 3,733 3,847 Dilutive securities: Stock options and restricted share units 461 507 257 Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS 4,092 4,240 4,104 The assumed proceeds used in the treasury method for calculating NVR’s diluted earnings per share includes the amount the employee must pay upon exercise and the amount of compensation cost attributed to future services not yet recognized. The following stock options issued under equity incentive plans were outstanding during the years ended December 31, 2018 , 2017 and 2016 , but were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. Year Ended December 31, 2018 2017 2016 Anti-dilutive securities 370 15 87 |
Revenues-Homebuilding Operations | Revenues – Homebuilding Operations NVR builds single-family detached homes, townhomes and condominium buildings, which generally are constructed on a pre-sold basis. Revenue is recognized on the settlement date at the contract sales price,when control is transferred to our customers. |
Mortgage Banking Fees | Mortgage Banking Fees Mortgage banking fees include income earned by NVRM for originating mortgage loans, servicing mortgage loans held on an interim basis, title fees, gains and losses on the sale of mortgage loans and mortgage servicing and other activities incidental to mortgage banking. Mortgage banking fees are generally recognized after the loan has been sold to an unaffiliated, third party investor. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on the deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. See Note 11 herein for discussion of the impact on the Company's deferred tax asset resulting from the enactment of the Tax Cuts and Jobs Act in December 2017. ASC 740-10, Income Taxes , provides that a tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not (defined as a likelihood of more than 50%) that the position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits. If a tax position does not meet the more-likely-than-not recognition threshold, despite the Company’s belief that its filing position is supportable, the benefit of that tax position is not recognized in the statements of income. The Company recognizes interest related to unrecognized tax benefits as a component of income tax expense. Based on its historical experience in dealing with various taxing authorities, the Company has found that it is the administrative practice of the taxing authorities to not seek penalties from the Company for the tax positions it has taken on its returns related to its unrecognized tax benefits. Therefore, the Company does not accrue penalties for the positions in which it has an unrecognized tax benefit. However, if such penalties were to be accrued, they would be recorded as a component of income tax expense. The Company recognizes unrecognized tax benefits in the period that the uncertainty is eliminated by either affirmative agreement of the uncertain tax position by the applicable taxing authority, by expiration of the applicable statute of limitation, or by determination in accordance with certain states’ administrative practices that the uncertain tax position has been effectively settled (see Note 11 herein for further information). |
Financial Instruments | Financial Instruments Except as otherwise noted herein, NVR believes that the carrying value approximates the fair value of its financial instruments (see Note 14 herein for further information). |
Equity-Based Compensation | Equity-Based Compensation The Company recognizes equity-based compensation expense within its income statement for all share-based payment arrangements, which includes non-qualified stock options to purchase shares of NVR common stock ("Options") and restricted share units ("RSUs"). Compensation expense is based on the grant-date fair value of the Options and RSUs granted, and is recognized on a straight-line basis over the requisite service period for the entire award (from the date of grant through the period of the last separately vesting portion of the grant). Options and RSUs which are subject to a performance condition are treated as a separate award from the “service-only” Options and RSUs, and compensation expense is recognized when it becomes probable that the stated performance target will be achieved. The Company calculates the fair value of its Options, which are non-publicly traded, using the Black-Scholes option-pricing model. The grant date fair value of the RSUs is the closing price of the Company’s common stock on the day immediately preceding the date of grant. The reversal of compensation expense previously recognized for grants forfeited is recorded in the period in which the forfeiture occurs. The Company’s equity-based compensation plans are accounted for as equity-classified awards (see Note 12 herein for further discussion of equity-based compensation plans). |
Comprehensive Income | Comprehensive Income For the years ended December 31, 2018 , 2017 and 2016 , comprehensive income equaled net income; therefore, a separate statement of comprehensive income is not included in the accompanying consolidated financial statements. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current year's presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Revenue from Contracts with Customers On January 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) , using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Revenue Recognition Consistent with the Company’s previous revenue recognition practice, homebuilding revenue is recognized on the settlement date at the contract sales price, when control is transferred to our customers. Mortgage banking revenue recognition continues to be governed by Accounting Standards Codification ("ASC") Topic 815 - Derivatives and Hedging and ASC Topic 825 - Financial Instruments, and is not subject to Topic 606. See Note 2 for disclosure of revenue by reporting segment. The Company’s contract liabilities, consisting of deposits received from customers (“Handmoney”) on homes not settled, were $138,246 and $150,033 as of December 31, 2018 and 2017 , respectively. For the year ended December 31, 2018 , the Company recognized in revenue substantially all of the $150,033 in Handmoney held as of December 31, 2017 . The Company’s prepaid sales compensation totaled approximately $17,000 and $19,500 , as of December 31, 2018 and December 31, 2017 , respectively. These amounts are included in homebuilding “Other assets” on the accompanying consolidated balance sheets. Deferred Revenue Topic 606 no longer requires sellers of real estate to consider the initial and continuing involvement criteria in ASC 360-20, but instead only conclude on the collectibility of the transaction price. On January 1, 2018, the Company recorded a cumulative-effect adjustment, net of tax, of $2,196 to recognize deferred profit on home settlements for which the Company had previously determined that there was significant continuing involvement and believed to be fully collectible. Revenue recognized in 2018 would not have been materially different under prior GAAP. Practical Expedients and Exemption At contract inception, the performance obligation to complete and settle the home with a customer has an expected duration of less than one year. As a result, the Company does not disclose the value of unsatisfied performance obligations for contracts. No other adjustments were made as a result of the adoption of Topic 606. Other recently adopted accounting pronouncements The Company adopted ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, effective January 1, 2018. In connection with the adoption of ASU 2016-15, the Company made the election to classify distributions received from unconsolidated joint ventures using the cumulative earnings approach. This election was applied retrospectively, which reclassified a portion of distributions received from the Company's unconsolidated joint ventures between operating and investing activities on the prior year consolidated statement of cash flows. The adoption of this standard did not have a material effect on the Company's consolidated statements of cash flows and related disclosures. The Company adopted ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash, effective January 1, 2018. The amendments in the standard require that the statement of cash flows explain the change during the period in the total of cash, cash equivalents and restricted cash or restricted cash equivalents. As a result, the Company's beginning-of-period and end-of-period cash balances presented in the consolidated statements of cash flows were retrospectively adjusted to include restricted cash with cash and cash equivalents. The beginning-of-period and end-of-period cash, restricted cash, and cash equivalent balances presented on the accompanying consolidated statements of cash flows include cash related to a consolidated joint venture, which is included in homebuilding "Other assets" on the Company's consolidated balance sheets. The cash related to this consolidated joint venture as of December 31, 2018 , 2017 and 2016 was $320 , $1,069 and $1,214 , respectively. The adoption of this standard did not have a material effect on the Company's consolidated statements of cash flows and related disclosures. Recently Issued Accounting Pronouncements In February 2016, FASB issued ASU 2016-02, Leases (Topic 842) , which requires lessees to recognize most leases on-balance sheet with a liability equal to the present value of lease payments over the lease term and a right-of-use asset for the right to use the underlying asset over the lease term. Lessees will recognize expenses on their income statements in a manner similar to current GAAP. The standard also requires additional disclosures of key information about leasing arrangements. The standard was effective for the Company as of January 1, 2019. Based on its current portfolio of leases, the Company expects that the adoption of this standard will result in the recognition of less than $100,000 of right-of-use assets and corresponding liabilities on its balance sheet, predominately related to real estate leases. Additionally, in July 2018 the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements , which provides companies with relief from the costs of implementing certain aspects of the new lease standard. The ASU amends Topic 842 so that entities may elect not to restate their comparative periods during transition. Previously, the new lease standard required that an entity apply the new rules beginning with the earliest comparative period of financial statements presented (the modified retrospective approach). The Company has elected to use the transition relief provided under Topic 842 upon adoption of the standard effective January 1, 2019. In June 2016, FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) , which significantly changes the way impairment of financial assets is recognized. The standard will require immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, which will generally result in earlier recognition of allowances for credit losses on loans and other financial instruments. The standard’s provisions will be applied as a cumulative-effect adjustment to beginning retained earnings as of the effective date. The standard is effective for the Company as of January 1, 2020. The Company does not believe that the adoption of this standard will have a material effect on its consolidated financial statements and related disclosures. In January 2017, FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment . The standard’s objective is to simplify the subsequent measurement of goodwill by eliminating the second step from the goodwill impairment test. Under the amendments in the standard, an entity would perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. If the carrying amount of a reporting unit exceeds its fair value, an impairment charge would then be recognized, not to exceed the amount of goodwill allocated to that reporting unit. The standard is effective for the Company on January 1, 2020, and early adoption is permitted. The Company does not believe that the adoption of this standard will have a material effect on its consolidated financial statements and related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Weighted Average Shares and Share Equivalents Used to Calculate Basic and Diluted Earnings Per Share | The following weighted average shares and share equivalents were used to calculate basic and diluted earnings per share for the years ended December 31, 2018 , 2017 and 2016 : Year Ended December 31, 2018 2017 2016 Weighted average number of shares outstanding used to calculate basic EPS 3,631 3,733 3,847 Dilutive securities: Stock options and restricted share units 461 507 257 Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS 4,092 4,240 4,104 |
Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following stock options issued under equity incentive plans were outstanding during the years ended December 31, 2018 , 2017 and 2016 , but were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. Year Ended December 31, 2018 2017 2016 Anti-dilutive securities 370 15 87 |
Segment Information, Nature o_2
Segment Information, Nature of Operations, and Certain Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Revenues | Following are tables presenting segment revenues, profit before taxes, assets, interest income, interest expense, depreciation and amortization and expenditures for property and equipment, with reconciliations to the amounts reported for the consolidated enterprise, where applicable: Year Ended December 31, 2018 2017 2016 Revenues: Homebuilding Mid Atlantic $ 3,893,358 $ 3,543,687 $ 3,319,776 Homebuilding North East 580,726 517,141 462,385 Homebuilding Mid East 1,455,834 1,250,165 1,192,472 Homebuilding South East 1,074,386 864,528 734,590 Mortgage Banking 159,370 130,319 113,321 Consolidated revenues $ 7,163,674 $ 6,305,840 $ 5,822,544 |
Profit before Taxes | Year Ended December 31, 2018 2017 2016 Profit before taxes: Homebuilding Mid Atlantic $ 462,178 $ 398,494 $ 301,173 Homebuilding North East 69,789 60,218 21,947 Homebuilding Mid East 175,134 149,639 121,166 Homebuilding South East 118,296 95,826 71,098 Mortgage Banking 93,462 73,959 63,711 Total segment profit 918,859 778,136 579,095 Reconciling items: Contract land deposit reserve adjustment (1) 783 1,307 10,933 Equity-based compensation expense (2) (75,701 ) (44,562 ) (43,598 ) Corporate capital allocation (3) 213,903 198,384 189,992 Unallocated corporate overhead (89,973 ) (89,514 ) (89,376 ) Consolidation adjustments and other 15,829 26,143 35,204 Corporate interest expense (23,968 ) (22,983 ) (20,553 ) Reconciling items sub-total 40,873 68,775 82,602 Consolidated profit before taxes $ 959,732 $ 846,911 $ 661,697 (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 year ended December 31, 2018 was primarily attributable to the issuance of Options and RSUs in the second quarter of 2018. 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: |
Assets | As of December 31, 2018 2017 Assets: Homebuilding Mid Atlantic $ 1,018,953 $ 1,079,225 Homebuilding North East 144,412 143,008 Homebuilding Mid East 290,815 263,019 Homebuilding South East 332,468 277,705 Mortgage Banking 517,075 397,052 Total segment assets 2,303,723 2,160,009 Reconciling items: Cash and cash equivalents 688,783 645,087 Deferred taxes 112,333 111,953 Intangible assets and goodwill 49,989 50,144 Contract land deposit reserve (29,216 ) (29,999 ) Consolidation adjustments and other 40,321 52,085 Reconciling items sub-total 862,210 829,270 Consolidated assets $ 3,165,933 $ 2,989,279 |
Interest Income | Year Ended December 31, 2018 2017 2016 Interest income: Mortgage Banking $ 11,593 $ 7,850 $ 7,569 Total segment interest income 11,593 7,850 7,569 Other unallocated interest income 8,588 4,554 1,111 Consolidated interest income $ 20,181 $ 12,404 $ 8,680 |
Interest Expense | Year Ended December 31, 2018 2017 2016 Interest expense: Homebuilding Mid Atlantic $ 123,908 $ 123,075 $ 119,808 Homebuilding North East 17,897 16,117 18,141 Homebuilding Mid East 35,804 29,663 28,307 Homebuilding South East 36,362 29,583 23,804 Mortgage Banking 1,045 1,148 1,086 Total segment interest expense 215,016 199,586 191,146 Corporate capital allocation (3) (213,903 ) (198,384 ) (189,992 ) Senior Notes and other interest 23,968 22,983 20,553 Consolidated interest expense $ 25,081 $ 24,185 $ 21,707 |
Depreciation and Amortization | Year Ended December 31, 2018 2017 2016 Depreciation and amortization: Homebuilding Mid Atlantic $ 7,753 $ 8,095 $ 8,089 Homebuilding North East 1,600 2,034 2,053 Homebuilding Mid East 3,481 3,590 3,748 Homebuilding South East 2,523 2,531 2,276 Mortgage Banking 1,489 1,297 1,117 Total segment depreciation and amortization 16,846 17,547 17,283 Unallocated corporate 3,322 5,120 4,986 Consolidated depreciation and amortization $ 20,168 $ 22,667 $ 22,269 |
Expenditures for Property and Equipment | Year Ended December 31, 2018 2017 2016 Expenditures for property and equipment: Homebuilding Mid Atlantic $ 6,657 $ 9,257 $ 8,838 Homebuilding North East 1,074 1,299 3,423 Homebuilding Mid East 4,302 3,117 4,027 Homebuilding South East 2,732 3,313 3,594 Mortgage Banking 1,677 2,723 726 Total segment expenditures for property and equipment 16,442 19,709 20,608 Unallocated corporate 3,223 560 1,761 Consolidated expenditures for property and equipment $ 19,665 $ 20,269 $ 22,369 |
Corporate Capital Allocation Charge | Year Ended December 31, 2018 2017 2016 Corporate capital allocation charge: Homebuilding Mid Atlantic $ 123,855 $ 123,028 $ 119,758 Homebuilding North East 17,893 16,115 18,132 Homebuilding Mid East 35,803 29,663 28,303 Homebuilding South East 36,352 29,578 23,799 Total corporate capital allocation charge $ 213,903 $ 198,384 $ 189,992 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure [Abstract] | |
Total Risk of Loss Related to Contract Land Deposits | NVR’s total risk of loss related to contract land deposits as of December 31, 2018 and 2017 was as follows: December 31, 2018 2017 Contract land deposits $ 425,393 $ 400,428 Loss reserve on contract land deposits (29,216 ) (29,999 ) Contract land deposits, net 396,177 370,429 Contingent obligations in the form of letters of credit 3,923 1,996 Contingent specific performance obligations (1) 1,505 1,505 Total risk of loss $ 401,605 $ 373,930 (1) As of both December 31, 2018 and 2017 , the Company was committed to purchase 10 finished lots under specific performance obligations. |
Joint Ventures (Tables)
Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Consolidated Joint Venture | |
Schedule of Equity Method Investments [Line Items] | |
Condensed Balance Sheets | The condensed balance sheets of the consolidated JV at December 31, 2018 and 2017 were as follows: December 31, 2018 2017 Assets: Cash $ 320 $ 1,069 Other assets — 37 Total assets $ 320 $ 1,106 Liabilities and equity: Accrued expenses $ 282 $ 487 Equity 38 619 Total liabilities and equity $ 320 $ 1,106 |
Capitalized Interest (Tables)
Capitalized Interest (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Capitalized Interest Costs, Including Allowance for Funds Used During Construction [Abstract] | |
Summary of Interest Costs Incurred, Capitalized, Expensed and Charged to Cost of Sales | NVR’s interest costs incurred, capitalized, expensed and charged to cost of sales during the years ended December 31, 2018 , 2017 and 2016 was as follows: December 31, 2018 2017 2016 Interest capitalized, beginning of year $ 5,583 $ 5,106 $ 4,434 Interest incurred 26,277 26,384 25,951 Interest charged to interest expense (25,081 ) (24,185 ) (21,707 ) Interest charged to cost of sales (2,625 ) (1,722 ) (3,572 ) Interest capitalized, end of year $ 4,154 $ 5,583 $ 5,106 |
Property, Plant and Equipment_2
Property, Plant and Equipment ("PP&E") (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment ("PP&E") | December 31, 2018 2017 Homebuilding: Office facilities and other $ 37,789 $ 35,219 Model home furniture and fixtures 31,593 33,901 Production facilities 64,667 61,348 Gross Homebuilding PP&E 134,049 130,468 Less: accumulated depreciation (91,815 ) (87,277 ) Net Homebuilding PP&E $ 42,234 $ 43,191 Mortgage Banking: Office facilities and other $ 13,724 $ 14,069 Less: accumulated depreciation (7,214 ) (7,742 ) Net Mortgage Banking PP&E $ 6,510 $ 6,327 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Share Repurchases of Common Stock | The Company made the following share repurchases during the years indicated: Year Ended December 31, 2018 2017 2016 Aggregate purchase price $ 846,134 $ 422,166 $ 455,351 Number of shares repurchased 301 167 280 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The provision for income taxes consists of the following: Year Ended December 31, 2018 2017 2016 Current: Federal $ 126,358 $ 211,641 $ 209,454 State 37,038 37,006 38,095 Deferred: Federal 138 60,785 (9,230 ) State (999 ) (42 ) (1,884 ) Income tax expense $ 162,535 $ 309,390 $ 236,435 |
Deferred Income Taxes on Consolidated Balance Sheets | Deferred income taxes on NVR’s consolidated balance sheets were comprised of the following: December 31, 2018 2017 Deferred tax assets: Other accrued expenses and contract land deposit reserve $ 51,316 $ 49,063 Deferred compensation 4,693 4,743 Equity-based compensation expense 40,744 36,799 Inventory 9,242 9,393 Unrecognized tax benefit 13,587 14,351 Other 5,113 9,681 Total deferred tax assets 124,695 124,030 Less: Deferred tax liabilities 6,091 4,511 Net deferred tax asset $ 118,604 $ 119,519 |
Income Tax Expense Reconciliation | A reconciliation of income taxes computed at the federal statutory rate ( 21% in 2018 and 35% in 2017 and 2016) to income tax expense is as follows: Year Ended December 31, 2018 2017 2016 Income taxes computed at the federal statutory rate $ 201,544 $ 296,419 $ 231,595 State income taxes, net of federal income tax benefit (1) 42,944 30,046 23,738 Excess tax benefits from equity-based compensation (2) (77,478 ) (58,681 ) — Remeasurement of net deferred tax assets due to enactment of Tax Cut and Jobs Act (3) (497 ) 62,702 — Other, net (4) (3,978 ) (21,096 ) (18,898 ) Income tax expense $ 162,535 $ 309,390 $ 236,435 (1) Excludes state excess tax benefits from equity-based compensation included in the line below. (2) ASU 2016-09 adopted January 1, 2017. Excess tax benefits related to equity-based compensation of $13,661 in 2016 were recorded to shareholders' equity. (3) The enactment of the Tax Cuts and Jobs Act in December 2017 required a remeasurement of the Company's net deferred tax assets and resulted in additional income tax expense of $62,702 . (4) Primarily attributable to tax benefits from certain energy credits for the year ended December 31, 2018. For the years ended December 31, 2017 and 2016, this was primarily attributable to tax benefits from the domestic production activities deduction. The domestic production activities deduction was eliminated effective January 1, 2018, following the enactment of the Tax Cuts and Jobs Act in December 2017. |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended December 31, 2018 2017 Balance at beginning of year $ 45,337 $ 46,110 Additions based on tax positions related to the current year 4,340 4,793 Reductions for tax positions of prior years (6,259 ) (5,566 ) Settlements — — Balance at end of year $ 43,418 $ 45,337 |
Equity-Based Compensation, Pr_2
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Equity-Based Compensation Plans with Grants Outstanding [Table Text Block] | During 2018 , the Company issued 345 Options and 16 RSUs under the 2010 Plan, the 2014 Plan, and the 2018 Plan as follows: 2010 Plan 2014 Plan 2018 Plan Options Granted Options (4) 6 93 73 Performance-based Options (5) — 100 73 Total Options Granted 6 193 146 RSUs Granted RSUs (6) 8 — — Performance-based RSUs (7) 8 — — Total RSUs Granted 16 — — (4) Of the 172 service-only Options granted, 34 will generally vest over two years in 50% increments on December 31, 2020 and 2021; the remaining 138 Options will generally vest over four years in 25% increments on December 31, 2020, 2021, 2022, and 2023. Vesting for the Options is contingent solely upon continued employment or continued service as a Director. (5) Of the 173 performance-based Options granted, 34 will vest over two years in 50% increments on December 31, 2020 and 2021; the remaining 139 performance-based Options will generally vest over four years in 25% increments on December 31, 2020, 2021, 2022, and 2023. Vesting for the performance-based Options is contingent upon both continued employment or continued service as a Director and the Company's return on capital performance during 2018 through 2020. (6) The service-only RSUs granted will vest over two years in 50% increments on December 31, 2022 and 2023. Vesting for the RSUs is contingent solely upon continued employment. (7) The performance-based RSUs granted will vest over two years in 50% increments on December 31, 2022 and 2023. Vesting for the performance-based RSUs is contingent upon both continued employment and the Company's return on capital performance during 2018 through 2020. |
Summary of Equity-Based Compensation Plans with Grants Outstanding | The following table provides a summary of each of the Company’s equity-based compensation plans for any plan with grants outstanding at December 31, 2018 : Equity-Based Compensation Plans Shares Authorized Options/RSUs Outstanding Shares Available to Issue 2000 Broadly-Based Stock Option Plan 2,000 63 — 2010 Equity Incentive Plan (1) 700 160 26 2014 Equity Incentive Plan (2) 950 701 102 2018 Equity Incentive Plan (3) 275 146 129 (1) During 2010, the Company’s shareholders approved the 2010 Equity Incentive Plan (the “2010 Plan”). The 2010 Plan authorizes the Company to issue Options and RSUs to key management employees, including executive officers and Directors. Of the 700 aggregate shares available to issue, up to 240 may be granted in the form of RSUs. There were 139 Options and 21 RSUs outstanding as of December 31, 2018 . Of the 26 shares available to be issued under the 2010 Plan, 22 may be granted as RSUs. (2) During 2014, the Company’s shareholders approved the 2014 Equity Incentive Plan (the “2014 Plan”). The 2014 Plan authorizes the Company to issue Options to key management employees, including executive officers and Directors. (3) The Company’s shareholders approved the 2018 Equity Incentive Plan (the "2018 Plan") at the Company’s Annual Meeting of Shareholders held on May 2, 2018. The 2018 Plan authorizes the Company to issue up to an aggregate of 275 shares of the Company’s common stock in the form of Options and RSUs to key management employees, including executive officers and Directors. Of the 275 aggregate shares available to issue, all may be granted in the form of Options and up to 40 may be granted in the form of RSUs. |
Equity-Based Compensation Plans | The following table provides additional information relative to NVR’s equity-based compensation plans for the year ended December 31, 2018 : Shares Weighted Avg. Per Share Exercise Price Weighted Avg. Remaining Contract Life (years) Aggregate Intrinsic Value Stock Options Outstanding at December 31, 2017 916 $ 1,119.92 Granted 345 3,013.61 Exercised (182 ) 954.49 Forfeited (30 ) 1,283.48 Outstanding at December 31, 2018 1,049 $ 1,766.87 6.5 $ 703,087 Exercisable at December 31, 2018 466 $ 1,032.44 4.6 $ 655,141 RSUs Outstanding at December 31, 2017 10 Granted 16 Vested (5 ) Forfeited — Outstanding at December 31, 2018 21 $ 50,719 Vested, but not issued at December 31, 2018 5 $ 11,532 |
Black-Scholes Option-Pricing Model Assumptions | The fair value of the Options granted during 2018 , 2017 and 2016 was estimated on the grant date using the Pricing Model, based on the following assumptions: 2018 2017 2016 Estimated option life (years) 5.06 5.26 5.27 Risk free interest rate (range) 2.19%-3.13% 1.53%-2.38% 0.86%-2.21% Expected volatility (range) 16.57%-20.05% 15.09%-17.95% 15.91%-23.49% Expected dividend rate — % — % — % Weighted average grant-date fair value per share of options granted $ 687.81 $ 494.17 $ 320.21 |
Exercised Option Proceeds | Information with respect to the vested RSUs and exercised Options is as follows: Year Ended December 31, 2018 2017 2016 Aggregate exercise proceeds $ 174,110 $ 140,525 $ 38,106 Aggregate intrinsic value on exercise dates $ 355,318 $ 206,890 $ 96,600 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments under Operating Leases | Future minimum lease payments under these operating leases as of December 31, 2018 are as follows: Year Ending December 31, 2019 $ 31,564 2020 22,210 2021 17,331 2022 13,667 2023 10,324 Thereafter 12,607 107,703 Sublease income (25 ) $ 107,678 |
Summary of Changes in Product Warranties Reserve | The following table reflects the changes in the Company’s warranty reserve (see Note 1 herein for further discussion of warranty/product liability reserves): Year Ended December 31, 2018 2017 2016 Warranty reserve, beginning of year $ 94,513 $ 93,895 $ 87,407 Provision 62,553 44,652 50,787 Payments (53,366 ) (44,034 ) (44,299 ) Warranty reserve, end of year $ 103,700 $ 94,513 $ 93,895 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Undesignated Derivative Instruments | The fair value measurement of NVRM's undesignated derivative instruments was as follows: As of December 31, 2018 2017 Rate lock commitments: Gross assets $ 13,831 $ 5,400 Gross liabilities 345 1,832 Net rate lock commitments $ 13,486 $ 3,568 Forward sales contracts: Gross assets $ 64 $ 992 Gross liabilities 10,121 667 Net forward sales contracts $ (10,057 ) $ 325 |
Fair Value Measurement | The fair value measurement as of December 31, 2018 was as follows: Notional or Principal Amount Assumed Gain/(Loss) From Loan Sale Interest Rate Movement Effect Servicing Rights Value Security Price Change Total Fair Value Measurement Gain/(Loss) Rate lock commitments $ 682,152 $ 1,360 $ 4,630 $ 7,496 $ — $ 13,486 Forward sales contracts $ 1,089,923 — — — (10,057 ) (10,057 ) Mortgages held for sale $ 447,444 1,267 3,637 5,976 — 10,880 Total fair value measurement $ 2,627 $ 8,267 $ 13,472 $ (10,057 ) $ 14,309 |
Quarterly Results (unaudited) (
Quarterly Results (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data and Operating Information | The following table sets forth unaudited selected financial data and operating information on a quarterly basis for the years ended December 31, 2018 and 2017 . Year Ended December 31, 2018 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter Revenues – homebuilding operations $ 1,954,403 $ 1,809,345 $ 1,750,463 $ 1,490,093 Gross profit – homebuilding operations $ 363,668 $ 336,696 $ 333,666 $ 278,147 Mortgage banking fees $ 40,145 $ 43,062 $ 36,842 $ 39,321 Net income $ 232,158 $ 195,816 $ 203,174 $ 166,049 Diluted earnings per share $ 58.57 $ 48.28 $ 49.05 $ 39.34 New orders (units) 3,841 4,302 4,964 5,174 Settlements (units) 5,186 4,754 4,611 3,896 Backlog, end of period (units) 8,365 9,710 10,162 9,809 Loans closed $ 1,356,430 $ 1,249,199 $ 1,214,101 $ 1,009,673 Year Ended December 31, 2017 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter Revenues – homebuilding operations $ 1,781,494 $ 1,633,726 $ 1,512,714 $ 1,247,587 Gross profit – homebuilding operations $ 343,187 $ 325,755 $ 294,631 $ 221,570 Mortgage banking fees $ 34,842 $ 34,194 $ 31,778 $ 29,505 Net income $ 124,619 $ 162,102 $ 147,877 $ 102,923 Diluted earnings per share $ 28.88 $ 38.02 $ 35.19 $ 25.12 New orders (units) 4,306 4,200 4,678 4,424 Settlements (units) 4,630 4,158 3,917 3,256 Backlog, end of period (units) 8,531 8,855 8,813 8,052 Loans closed $ 1,229,695 $ 1,115,494 $ 1,041,613 $ 843,341 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | Dec. 31, 2015 | |
Significant Accounting Policies [Line Items] | |||||
Net Contract Land Deposit Impairment Recoveries | $ 5,115,000 | ||||
Cash | 732,248,000 | $ 689,557,000 | $ 416,037,000 | $ 450,794,000 | |
Contract land deposit impairments (recoveries), net | 11,760,000 | 1,238,000 | (4,269,000) | ||
Contract land deposit assets impairment valuation allowances | 29,216,000 | 29,999,000 | |||
Excess tax benefits from equity-based compensation | 77,478,000 | 58,681,000 | 0 | ||
Cumulative-effect adjustment from adoption of ASU 2016-09, net of tax | 2,196,000 | 609,000 | |||
Retained Earnings | |||||
Significant Accounting Policies [Line Items] | |||||
Cumulative-effect adjustment from adoption of ASU 2016-09, net of tax | $ 2,196,000 | (957,000) | |||
Model home furniture and fixtures | |||||
Significant Accounting Policies [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 2 years | ||||
Office facilities and other | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 3 years | ||||
Office facilities and other | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 10 years | ||||
Manufacturing Facilities | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 5 years | ||||
Manufacturing Facilities | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 40 years | ||||
Homebuilding: | |||||
Significant Accounting Policies [Line Items] | |||||
Customer deposits | $ 138,246,000 | 150,033,000 | |||
Cash | 688,783,000 | 645,087,000 | |||
Impairment of goodwill | 0 | ||||
Homebuilding: | Heartland Homes Inc | |||||
Significant Accounting Policies [Line Items] | |||||
Finite-lived intangibles acquired from business acquisition, net of accumulated amortization | $ 621,000 | 776,000 | |||
Weighted average life of finite-lived intangible assets | 4 years | ||||
Goodwill acquired from business acquisition | $ 441,000 | 441,000 | |||
Mortgage Banking: | |||||
Significant Accounting Policies [Line Items] | |||||
Cash | $ 23,092,000 | 21,707,000 | |||
Mortgage Banking: | Level 2 | Fair Value, Measurements, Recurring | |||||
Significant Accounting Policies [Line Items] | |||||
Typical length of days loans sold into secondary market | 30 days | ||||
Mortgage Banking: | Level 2 | Fair Value, Measurements, Recurring | Rate lock commitments | |||||
Significant Accounting Policies [Line Items] | |||||
Notional or Principal Amount | $ 682,152,000 | ||||
Mortgage Banking: | Level 2 | Fair Value, Measurements, Recurring | Forward sales contracts | |||||
Significant Accounting Policies [Line Items] | |||||
Notional or Principal Amount | 1,089,923,000 | ||||
Consolidated Joint Venture | |||||
Significant Accounting Policies [Line Items] | |||||
Cash | 320,000 | 1,069,000 | $ 1,214,000 | ||
Other Assets | |||||
Significant Accounting Policies [Line Items] | |||||
Capitalized Contract Cost, Net | $ 17,000,000 | $ 19,500,000 | |||
Scenario, Forecast [Member] | Accounting Standards Update 2016-02 [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Cumulative-effect adjustment from adoption of ASU 2016-09, net of tax | $ 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Weighted Average Shares and Share Equivalents Used to Calculate Basic and Diluted Earnings Per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Weighted average number of shares outstanding used to calculate basic EPS (in Shares) | 3,631 | 3,733 | 3,847 |
Dilutive securities: | |||
Stock options and restricted share units (in Shares) | 461 | 507 | 257 |
Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS (in Shares) | 4,092 | 4,240 | 4,104 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Anti-dilutive securities (in Shares) | 370 | 15 | 87 |
Segment Information, Nature o_3
Segment Information, Nature of Operations, and Certain Concentrations - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018Trade_Namesmetropolitan_areasegment | |
Segment Reporting Information [Line Items] | |
Number of trade names | Trade_Names | 3 |
Number of metropolitan areas Ryan Homes product are sold | metropolitan_area | 32 |
Senior Notes due 2022 | |
Segment Reporting Information [Line Items] | |
Senior notes interest rate | 3.95% |
Homebuilding: | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 4 |
Mortgage Banking: | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 1 |
Geographic Concentration Risk | Homebuilding: | District of Columbia | |
Segment Reporting Information [Line Items] | |
Revenue derived | 30.00% |
Geographic Concentration Risk | Homebuilding: | Maryland, Baltimore | |
Segment Reporting Information [Line Items] | |
Revenue derived | 10.00% |
Segment Information, Nature o_4
Segment Information, Nature of Operations, and Certain Concentrations - Revenues (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Consolidated revenues | $ 7,163,674 | $ 6,305,840 | $ 5,822,544 | ||||||||
Homebuilding: | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Consolidated revenues | $ 1,954,403 | $ 1,809,345 | $ 1,750,463 | $ 1,490,093 | $ 1,781,494 | $ 1,633,726 | $ 1,512,714 | $ 1,247,587 | 7,004,304 | 6,175,521 | 5,709,223 |
Homebuilding: | Mid Atlantic | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Consolidated revenues | 3,893,358 | 3,543,687 | 3,319,776 | ||||||||
Homebuilding: | North East | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Consolidated revenues | 580,726 | 517,141 | 462,385 | ||||||||
Homebuilding: | Mid East | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Consolidated revenues | 1,455,834 | 1,250,165 | 1,192,472 | ||||||||
Homebuilding: | South East | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Consolidated revenues | 1,074,386 | 864,528 | 734,590 | ||||||||
Mortgage Banking: | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Consolidated revenues | $ 40,145 | $ 43,062 | $ 36,842 | $ 39,321 | $ 34,842 | $ 34,194 | $ 31,778 | $ 29,505 | $ 159,370 | $ 130,319 | $ 113,321 |
Segment Information, Nature o_5
Segment Information, Nature of Operations, and Certain Concentrations - Profit before Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Profit before taxes | $ 959,732 | $ 846,911 | $ 661,697 |
Equity-based compensation expense | (75,701) | (44,562) | (43,598) |
Corporate interest expense | (25,081) | (24,185) | (21,707) |
Homebuilding: | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Profit before taxes | 871,106 | 776,370 | 601,102 |
Corporate interest expense | (24,036) | (23,037) | (20,621) |
Mortgage Banking: | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Profit before taxes | 88,626 | 70,541 | 60,595 |
Corporate interest expense | (1,045) | (1,148) | (1,086) |
Profit before taxes: | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Profit before taxes | 918,859 | 778,136 | 579,095 |
Corporate interest expense | (215,016) | (199,586) | (191,146) |
Profit before taxes: | Homebuilding: | Mid Atlantic | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Profit before taxes | 462,178 | 398,494 | 301,173 |
Corporate interest expense | (123,908) | (123,075) | (119,808) |
Profit before taxes: | Homebuilding: | North East | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Profit before taxes | 69,789 | 60,218 | 21,947 |
Corporate interest expense | (17,897) | (16,117) | (18,141) |
Profit before taxes: | Homebuilding: | Mid East | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Profit before taxes | 175,134 | 149,639 | 121,166 |
Corporate interest expense | (35,804) | (29,663) | (28,307) |
Profit before taxes: | Homebuilding: | South East | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Profit before taxes | 118,296 | 95,826 | 71,098 |
Corporate interest expense | (36,362) | (29,583) | (23,804) |
Profit before taxes: | Mortgage Banking: | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Profit before taxes | 93,462 | 73,959 | 63,711 |
Corporate interest expense | (1,045) | (1,148) | (1,086) |
Reconciling items: | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Profit before taxes | 40,873 | 68,775 | 82,602 |
Contract land deposit reserve adjustment | 783 | 1,307 | 10,933 |
Equity-based compensation expense | (75,701) | (44,562) | (43,598) |
Corporate capital allocation charge | 213,903 | 198,384 | 189,992 |
Unallocated corporate overhead | (89,973) | (89,514) | (89,376) |
Consolidation adjustments and other | 15,829 | 26,143 | 35,204 |
Corporate interest expense | $ (23,968) | $ (22,983) | $ (20,553) |
Segment Information, Nature o_6
Segment Information, Nature of Operations, and Certain Concentrations - Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | $ 3,165,933 | $ 2,989,279 | ||
Cash and cash equivalents | 732,248 | 689,557 | $ 416,037 | $ 450,794 |
Contract land deposit reserve | (29,216) | (29,999) | ||
Homebuilding: | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 2,641,511 | 2,584,880 | ||
Cash and cash equivalents | 688,783 | 645,087 | ||
Deferred taxes | 112,333 | 111,953 | ||
Mortgage Banking: | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 524,422 | 404,399 | ||
Cash and cash equivalents | 23,092 | 21,707 | ||
Profit before taxes: | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 2,303,723 | 2,160,009 | ||
Profit before taxes: | Homebuilding: | Mid Atlantic | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 1,018,953 | 1,079,225 | ||
Profit before taxes: | Homebuilding: | North East | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 144,412 | 143,008 | ||
Profit before taxes: | Homebuilding: | Mid East | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 290,815 | 263,019 | ||
Profit before taxes: | Homebuilding: | South East | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 332,468 | 277,705 | ||
Profit before taxes: | Mortgage Banking: | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 517,075 | 397,052 | ||
Reconciling items: | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Assets | 862,210 | 829,270 | ||
Cash and cash equivalents | 688,783 | 645,087 | ||
Deferred taxes | 112,333 | 111,953 | ||
Intangible assets and goodwill | 49,989 | 50,144 | ||
Contract land deposit reserve | (29,216) | (29,999) | ||
Consolidation adjustments and other | $ 40,321 | $ 52,085 |
Segment Information, Nature o_7
Segment Information, Nature of Operations, and Certain Concentrations - Interest Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Consolidated interest income | $ 20,181 | $ 12,404 | $ 8,680 |
Mortgage Banking: | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Interest income | 11,593 | 7,850 | 7,569 |
Profit before taxes: | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Interest income | 11,593 | 7,850 | 7,569 |
Other unallocated interest income | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Other unallocated interest income | $ 8,588 | $ 4,554 | $ 1,111 |
Segment Information, Nature o_8
Segment Information, Nature of Operations, and Certain Concentrations - Interest Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | $ 25,081 | $ 24,185 | $ 21,707 |
Homebuilding: | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 24,036 | 23,037 | 20,621 |
Mortgage Banking: | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 1,045 | 1,148 | 1,086 |
Profit before taxes: | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 215,016 | 199,586 | 191,146 |
Profit before taxes: | Homebuilding: | Mid Atlantic | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 123,908 | 123,075 | 119,808 |
Profit before taxes: | Homebuilding: | North East | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 17,897 | 16,117 | 18,141 |
Profit before taxes: | Homebuilding: | Mid East | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 35,804 | 29,663 | 28,307 |
Profit before taxes: | Homebuilding: | South East | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 36,362 | 29,583 | 23,804 |
Profit before taxes: | Mortgage Banking: | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 1,045 | 1,148 | 1,086 |
Reconciling items: | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 23,968 | 22,983 | 20,553 |
Corporate capital allocation charge | $ 213,903 | $ 198,384 | $ 189,992 |
Segment Information, Nature o_9
Segment Information, Nature of Operations, and Certain Concentrations - Depreciation and Amortization (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | $ 20,168 | $ 22,667 | $ 22,269 |
Profit before taxes: | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | 16,846 | 17,547 | 17,283 |
Profit before taxes: | Homebuilding: | Mid Atlantic | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | 7,753 | 8,095 | 8,089 |
Profit before taxes: | Homebuilding: | North East | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | 1,600 | 2,034 | 2,053 |
Profit before taxes: | Homebuilding: | Mid East | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | 3,481 | 3,590 | 3,748 |
Profit before taxes: | Homebuilding: | South East | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | 2,523 | 2,531 | 2,276 |
Profit before taxes: | Mortgage Banking: | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | 1,489 | 1,297 | 1,117 |
Other unallocated interest income | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | $ 3,322 | $ 5,120 | $ 4,986 |
Segment Information, Nature _10
Segment Information, Nature of Operations, and Certain Concentrations - Expenditures for Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Expenditures for property and equipment: | $ 19,665 | $ 20,269 | $ 22,369 |
Profit before taxes: | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Expenditures for property and equipment: | 16,442 | 19,709 | 20,608 |
Profit before taxes: | Homebuilding: | Mid Atlantic | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Expenditures for property and equipment: | 6,657 | 9,257 | 8,838 |
Profit before taxes: | Homebuilding: | North East | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Expenditures for property and equipment: | 1,074 | 1,299 | 3,423 |
Profit before taxes: | Homebuilding: | Mid East | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Expenditures for property and equipment: | 4,302 | 3,117 | 4,027 |
Profit before taxes: | Homebuilding: | South East | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Expenditures for property and equipment: | 2,732 | 3,313 | 3,594 |
Profit before taxes: | Mortgage Banking: | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Expenditures for property and equipment: | 1,677 | 2,723 | 726 |
Other unallocated interest income | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Expenditures for property and equipment: | $ 3,223 | $ 560 | $ 1,761 |
Segment Information, Nature _11
Segment Information, Nature of Operations, and Certain Concentrations - Corporate Capital Allocation Charge (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Corporate Reconciling Items And Eliminations [Member] | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Corporate capital allocation charge | $ (213,903) | $ (198,384) | $ (189,992) |
Corporate Reconciling Items And Eliminations [Member] | Homebuilding: | Mid Atlantic | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Corporate capital allocation charge | (123,855) | (123,028) | (119,758) |
Corporate Reconciling Items And Eliminations [Member] | Homebuilding: | North East | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Corporate capital allocation charge | (17,893) | (16,115) | (18,132) |
Corporate Reconciling Items And Eliminations [Member] | Homebuilding: | Mid East | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Corporate capital allocation charge | (35,803) | (29,663) | (28,303) |
Corporate Reconciling Items And Eliminations [Member] | Homebuilding: | South East | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Corporate capital allocation charge | (36,352) | (29,578) | (23,799) |
Reconciling items: | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Corporate capital allocation charge | $ 213,903 | $ 198,384 | $ 189,992 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) $ in Thousands | Dec. 31, 2018USD ($)lot | Dec. 31, 2017USD ($) |
Variable Interest Entity [Line Items] | ||
Maximum range of deposits required under the purchase agreements | 10.00% | |
Contract land deposits in cash | $ 425,393 | $ 400,428 |
Variable Interest Entities | ||
Variable Interest Entity [Line Items] | ||
Maximum range of deposits required under the purchase agreements | 10.00% | |
Lots controlled by NVR | lot | 95,800 | |
Contract land deposits in cash under Lot Purchase Agreements | $ 420,900 | |
Letters of credit related to lots | $ 3,800 | |
Contract on Raw Ground with Landowners | ||
Variable Interest Entity [Line Items] | ||
Lots controlled by NVR | lot | 7,500 | |
Contract land deposits in cash | $ 4,500 | |
Letters of credit on raw land contracts | 150 | |
Refundable deposits | $ 1,700 |
Variable Interest Entities - To
Variable Interest Entities - Total Risk of Loss Related to Contract Land Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure [Abstract] | ||
Contract land deposits | $ 425,393 | $ 400,428 |
Loss reserve on contract land deposits | (29,216) | (29,999) |
Contract land deposits, net | 396,177 | 370,429 |
Contingent obligations in the form of letters of credit | 3,923 | 1,996 |
Contingent specific performance obligations | 1,505 | 1,505 |
Total risk of loss | $ 401,605 | $ 373,930 |
Variable Interest Entities - _2
Variable Interest Entities - Total Risk of Loss Related to Contract Land Deposits (Textual) (Detail) - lot | Dec. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure [Abstract] | ||
Finished lots committed to purchase under specific performance obligations | 10 | 10 |
Joint Ventures - Additional Inf
Joint Ventures - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)lotjoint_venture | Dec. 31, 2017USD ($)lotjoint_venture | |
Joint Ventures [Line Items] | ||
Aggregate investment | $ 29,400 | $ 45,500 |
Number of joint ventures | joint_venture | 6 | 6 |
Expected production of finished lots | lot | 6,800 | 7,300 |
Total lots controlled by company under the joint venture | lot | 3,500 | 3,900 |
Total lots either under contract with unrelated parties or not under the current contract | lot | 3,400 | 3,400 |
Additional funding commitments in the aggregate | $ 5,000 | $ 5,300 |
Number of joint ventures with additional funding commitment | joint_venture | 3 | 3 |
Number of joint ventures NVR is not primary beneficiary | joint_venture | 5 | |
Other Assets | ||
Joint Ventures [Line Items] | ||
Aggregate investment | $ 29,400 | $ 45,200 |
Cost of Sales | ||
Joint Ventures [Line Items] | ||
Equity Method Investment, Other than Temporary Impairment | 7,400 | |
EquityMethodInvestmentOtherThanTemporaryImpairmentCapitalizedInterestPortion | $ 760 |
Joint Ventures - Condensed Bala
Joint Ventures - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | ||||
Cash | $ 732,248 | $ 689,557 | $ 416,037 | $ 450,794 |
Liabilities and equity: | ||||
Equity | 1,808,562 | 1,605,492 | 1,304,441 | $ 1,239,165 |
Total liabilities and shareholders' equity | 3,165,933 | 2,989,279 | ||
Consolidated Joint Venture | ||||
Assets: | ||||
Cash | 320 | 1,069 | $ 1,214 | |
Other assets | 0 | 37 | ||
Total assets | 320 | 1,106 | ||
Liabilities and equity: | ||||
Accrued expenses | 282 | 487 | ||
Equity | 38 | 619 | ||
Total liabilities and shareholders' equity | $ 320 | $ 1,106 |
Land Under Development - Additi
Land Under Development - Additional Information (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)lotparcel | Dec. 31, 2017USD ($)lotparcel | |
Real Estate [Abstract] | ||
Number of finished lots for use in homebuilding operations | lot | 500 | 500 |
Number of raw parcels of land owned | parcel | 3 | 4 |
Carrying value of raw parcels of land | $ 38,857 | $ 34,212 |
Aggregate additional funding commitments related to raw land property under joint development | 7,300 | |
Expected development credits that will offset the aggregate additional funding commitments related to raw land property development | $ 4,600 |
Capitalized Interest - Summary
Capitalized Interest - Summary of Interest Costs Incurred, Capitalized, Expensed and Charged to Cost of Sales (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Capitalized Interest Costs Including Allowance for Funds Used During Construction RollForward | |||
Interest capitalized, beginning of year | $ 5,583 | $ 5,106 | $ 4,434 |
Interest incurred | 26,277 | 26,384 | 25,951 |
Interest expense | (25,081) | (24,185) | (21,707) |
Interest charged to cost of sales | (2,625) | (1,722) | (3,572) |
Interest capitalized, end of year | $ 4,154 | $ 5,583 | $ 5,106 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Elm Street | 12 Months Ended | ||
Dec. 31, 2018USD ($)lot | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Related Party Transaction [Line Items] | |||
Related party forward lot purchase agreements purchase price | $ 121,700,000 | ||
Number of related parties for forward lot purchase agreement | lot | 1 | ||
Market price of developed lots | $ 36,100,000 | $ 37,100,000 | $ 44,500,000 |
Expected number of lots from joint venture with Elm Street | lot | 2,300 | ||
Additional funding to joint venture by NVR and Elm Street | 2,900,000 | ||
Development costs to manage property under related party transactions | $ 0 | $ 0 | $ 143,000 |
Property Plant and Equipment ("
Property Plant and Equipment ("PP&E") - Summary of Property Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Homebuilding: | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 134,049 | $ 130,468 |
Less: accumulated depreciation | (91,815) | (87,277) |
Net Homebuilding PP&E | 42,234 | 43,191 |
Homebuilding: | Office facilities and other | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 37,789 | 35,219 |
Homebuilding: | Model home furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 31,593 | 33,901 |
Homebuilding: | Production facilities | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 64,667 | 61,348 |
Mortgage Banking: | ||
Property, Plant and Equipment [Line Items] | ||
Net Homebuilding PP&E | 6,510 | 6,327 |
Mortgage Banking: | Office facilities and other | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 13,724 | 14,069 |
Less: accumulated depreciation | (7,214) | (7,742) |
Net Homebuilding PP&E | $ 6,510 | $ 6,327 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Senior Notes due 2022 | ||
Debt Instrument [Line Items] | ||
Debt issuance date | Sep. 10, 2012 | |
Senior notes principal amount | $ 600,000,000 | |
Senior notes maturity date | Sep. 15, 2022 | |
Senior notes effective interest rate | 3.97% | |
Senior notes proceeds | $ 593,900,000 | |
Senior notes interest rate | 3.95% | |
Frequency of senior notes payment | semi-annually in arrears on March 15 and September 15 | |
Debt issuance cost | $ 1,886,000 | $ 2,395,000 |
Credit Agreement | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum loan borrowing capacity | 200,000,000 | |
Increase in commitment available | $ 300,000,000 | |
Line of credit facility, interest rate description | Borrowings under the Credit Agreement generally bear interest for Base Rate Loans at a Base Rate equal to the highest of (i) a Federal Funds Rate plus one-half of one percent, (ii) Bank of America’s publicly announced “prime rate,” and (iii) the Eurodollar Rate plus one percent, plus the Applicable Rate which is based on the Company’s debt rating, or for Eurodollar Rate Loans, at the Eurodollar Rate equal to LIBOR plus the Applicable Rate. | |
Expiration date | Jul. 15, 2021 | |
Debt outstanding | $ 0 | |
Credit Agreement | Revolving Credit Facility | Federal Funds Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, marginal interest rate | 0.50% | |
Credit Agreement | Revolving Credit Facility | Eurodollar Rate | ||
Debt Instrument [Line Items] | ||
Debt instrument, marginal interest rate | 1.00% | |
Credit Agreement | Revolving Credit Facility | Sublimit for Issuance of Letters of Credit | ||
Debt Instrument [Line Items] | ||
Maximum loan borrowing capacity | $ 100,000,000 | |
Letters of credit outstanding | 9,000,000 | |
Credit Agreement | Revolving Credit Facility | Sublimit for Swing Line Commitment | ||
Debt Instrument [Line Items] | ||
Maximum loan borrowing capacity | $ 25,000,000 | |
Repurchase Agreement | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Senior notes interest rate | 4.5125% | |
Maximum loan borrowing capacity | $ 150,000,000 | |
Expiration date | Jul. 24, 2019 | |
Debt outstanding | $ 0 | $ 0 |
Borrowing base limitations | $ 0 | |
Repurchase Agreement | Revolving Credit Facility | Minimum | ||
Debt Instrument [Line Items] | ||
Senior notes interest rate | 1.95% |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Common shares outstanding (in Shares) | 3,578 | 3,691 | |
Reissued shares during the period, shares (in Shares) | 188 | 165 | 83 |
Common Stock - Share Repurchase
Common Stock - Share Repurchase of Common Stock (Detail) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Aggregate purchase price | $ 846,134 | $ 422,166 | $ 455,351 |
Number of shares repurchased (in Shares) | 301 | 167 | 280 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Remeasurement of net deferred tax assets due to enactment of Tax Cut and Jobs Act | $ (497) | $ 62,702 | $ 0 |
Excess tax benefits from equity-based compensation | 77,478 | 58,681 | $ 0 |
Estimated federal taxable income | $ 636,849 | $ 621,587 | |
Statutory federal income tax rate | 21.00% | 35.00% | 35.00% |
Tax benefit from equity benefit plan activity | $ 13,661 | ||
Effective tax rate | 16.94% | 36.53% | 35.73% |
Unrecognized tax benefits that would affect effective tax rate | $ 34,300 | ||
Reversal of accrued interest on unrecognized tax benefits | 1,384 | $ 1,065 | $ 1,582 |
Total accrued interest on unrecognized tax benefits | 17,191 | $ 18,575 | |
Reduction in unrecognized tax benefits | $ 11,570 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ 126,358 | $ 211,641 | $ 209,454 |
State | 37,038 | 37,006 | 38,095 |
Deferred: | |||
Federal | 138 | 60,785 | (9,230) |
State | (999) | (42) | (1,884) |
Total | $ 162,535 | $ 309,390 | $ 236,435 |
Income Taxes - Income Tax Benef
Income Taxes - Income Tax Benefits in Shareholders' Equity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefits arising from compensation expense for tax purposes in excess of amounts recognized for financial statement purposes | $ 13,661 | ||
Effective Income Tax Rate Reconciliation, Tax Benefit from Stock Compensation | $ (77,478) | $ (58,681) | $ 0 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Other accrued expenses and contract land deposit reserve | $ 51,316 | $ 49,063 |
Deferred compensation | 4,693 | 4,743 |
Equity-based compensation expense | 40,744 | 36,799 |
Inventory | 9,242 | 9,393 |
Unrecognized tax benefit | 13,587 | 14,351 |
Other | 5,113 | 9,681 |
Total deferred tax assets | 124,695 | 124,030 |
Less: Deferred tax liabilities | 6,091 | 4,511 |
Net deferred tax asset | $ 118,604 | $ 119,519 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense Reconciliation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income taxes computed at the federal statutory rate | $ 201,544 | $ 296,419 | $ 231,595 |
State income taxes, net of federal income tax benefit | 42,944 | 30,046 | 23,738 |
Excess tax benefits from equity-based compensation | 77,478 | 58,681 | 0 |
Remeasurement of net deferred tax assets due to enactment of Tax Cut and Jobs Act | (497) | 62,702 | 0 |
Other, net | (3,978) | (21,096) | (18,898) |
Total | $ 162,535 | $ 309,390 | $ 236,435 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of year | $ 45,337 | $ 46,110 |
Additions based on tax positions related to the current year | 4,340 | 4,793 |
Reductions for tax positions of prior years | (6,259) | (5,566) |
Settlements | 0 | 0 |
Balance at end of year | $ 43,418 | $ 45,337 |
Equity-Based Compensation, Pr_3
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)compensation_planshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based compensation expense | $ | $ 75,701 | $ 44,562 | $ 43,598 |
Tax benefit related to equity-based compensation costs | $ | $ 17,200 | $ 17,100 | $ 17,000 |
Options exercised (in shares) | 188,000 | 165,000 | 83,000 |
Combined plan contribution | $ | $ 19,500 | $ 18,400 | $ 16,700 |
Shares contributed to the Employee Stock Ownership Plan (in Shares) | 7,000 | 6,000 | |
Number of deferred compensation plans | compensation_plan | 2 | ||
Common stock, shares held in rabbi trust, shares (in shares) | 107,340 | 108,640 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options issued under the plan (in Shares) | 16,000 | ||
Total unrecognized compensation cost for all outstanding Options and RSUs | $ | $ 302,000 | ||
Weighted-average period over which the unrecognized compensation will be recorded | 2 years 7 months 24 days | ||
RSUs | Option Grant Solely Contingent upon Continued Employment or Continued Service as a Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted share units vesting period or option vesting period | 2 years | ||
Percentage of options vesting rights | 50.00% | ||
RSUs | Options Granted in Current Year | Share-based Compensation Award, Tranche Three [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option vesting rights | over two years in 50% increments on December 31, 2022 and 2023 | ||
Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of years for options granted | 10 years | ||
Options issued under the plan (in Shares) | 345,000 | ||
Options | Option Grant Contingent upon Continued Employment or Service as a Director and Achievement of Performance Metric | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted share units vesting period or option vesting period | 4 years | ||
Percentage of options vesting rights | 25.00% | ||
Options | Option Grant Solely Contingent upon Continued Employment or Continued Service as a Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted share units vesting period or option vesting period | 2 years | ||
Percentage of options vesting rights | 50.00% | ||
Options | Share-based Compensation Award, Tranche Three [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of options vesting rights | 50.00% | ||
Options | Options Granted in Current Year | Option Grant Contingent upon Continued Employment or Service as a Director and Achievement of Performance Metric | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option vesting rights | over four years in 25% increments on December 31, 2020, 2021, 2022, and 2023 | ||
Options | Options Granted in Current Year | Option Grant Solely Contingent upon Continued Employment or Continued Service as a Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option vesting rights | over two years in 50% increments on December 31, 2020 and 2021 | ||
Employee Performance Based Stock Option [Member] | Option Grant Contingent upon Continued Employment or Service as a Director and Achievement of Performance Metric | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted share units vesting period or option vesting period | 4 years | ||
Percentage of options vesting rights | 25.00% | ||
Employee Performance Based Stock Option [Member] | Option Grant Solely Contingent upon Continued Employment or Continued Service as a Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted share units vesting period or option vesting period | 2 years | ||
Percentage of options vesting rights | 50.00% | ||
Employee Performance Based Stock Option [Member] | Share-based Compensation Award, Tranche Three [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of options vesting rights | 50.00% | ||
Employee Performance Based Stock Option [Member] | Options Granted in Current Year | Option Grant Contingent upon Continued Employment or Service as a Director and Achievement of Performance Metric | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option vesting rights | over four years in 25% increments on December 31, 2020, 2021, 2022, and 2023 | ||
Employee Performance Based Stock Option [Member] | Options Granted in Current Year | Option Grant Solely Contingent upon Continued Employment or Continued Service as a Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option vesting rights | over two years in 50% increments on December 31, 2020 and 2021 | ||
Performance Based Restricted Stock Unit [Member] | Option Grant Solely Contingent upon Continued Employment or Continued Service as a Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted share units vesting period or option vesting period | 2 years | ||
Percentage of options vesting rights | 50.00% | ||
Performance Based Restricted Stock Unit [Member] | Options Granted in Current Year | Share-based Compensation Award, Tranche Three [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option vesting rights | over two years in 50% increments on December 31, 2022 and 2023 | ||
Minimum | RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted share units vesting period or option vesting period | 2 years | ||
Minimum | Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted share units vesting period or option vesting period | 3 years | ||
Maximum | RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted share units vesting period or option vesting period | 6 years | ||
Maximum | Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted share units vesting period or option vesting period | 6 years |
Equity-Based Compensation, Pr_4
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans - Summary of Equity-Based Compensation Plans with Grants Outstanding (Detail) - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock, shares authorized | 60,000,000 | 60,000,000 |
2000 Broadly-Based Stock Option Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Authorized | 2,000,000 | |
Options/RSUs Outstanding | 63,000 | |
Shares Available to Issue | 0 | |
2010 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Authorized | 700,000 | |
Options/RSUs Outstanding | 160,000 | |
Shares Available to Issue | 26,000 | |
Granted (Shares) | 6,000 | |
2014 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Authorized | 950,000 | |
Options/RSUs Outstanding | 701,000 | |
Shares Available to Issue | 102,000 | |
Granted (Shares) | 193,000 | |
2018 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Authorized | 275,000 | |
Options/RSUs Outstanding | 146,000 | |
Shares Available to Issue | 129,000 | |
Granted (Shares) | 146,000 | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options issued under the plan (in Shares) | 16,000 | |
RSUs | 2010 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Authorized | 240,000 | |
Common stock, shares authorized | 22,000 | |
RSUs | 2018 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock, shares authorized | 40,000 | |
Employee Service Only Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (Shares) | 172,000 | |
Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options issued under the plan (in Shares) | 345,000 | |
Granted (Shares) | 345,000 | |
Options | 2010 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (Shares) | 6,000 | |
Options | 2014 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (Shares) | 93,000 | |
Options | 2018 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (Shares) | 73,000 | |
Employee Performance Based Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (Shares) | 173,000 | |
Employee Performance Based Stock Option [Member] | 2010 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (Shares) | 0 | |
Employee Performance Based Stock Option [Member] | 2014 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (Shares) | 100,000 | |
Employee Performance Based Stock Option [Member] | 2018 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (Shares) | 73,000 | |
Option Grant Solely Contingent upon Continued Employment or Continued Service as a Director | RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted share units vesting period or option vesting period | 2 years | |
Percentage of options vesting rights | 50.00% | |
Option Grant Solely Contingent upon Continued Employment or Continued Service as a Director | Performance Based Restricted Stock Unit [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted share units vesting period or option vesting period | 2 years | |
Percentage of options vesting rights | 50.00% | |
Option Grant Solely Contingent upon Continued Employment or Continued Service as a Director | Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (Shares) | 34,000 | |
Restricted share units vesting period or option vesting period | 2 years | |
Percentage of options vesting rights | 50.00% | |
Option Grant Solely Contingent upon Continued Employment or Continued Service as a Director | Employee Performance Based Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (Shares) | 34,000 | |
Restricted share units vesting period or option vesting period | 2 years | |
Percentage of options vesting rights | 50.00% | |
Option Grant Contingent upon Continued Employment or Service as a Director and Achievement of Performance Metric | Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (Shares) | 138,000 | |
Restricted share units vesting period or option vesting period | 4 years | |
Percentage of options vesting rights | 25.00% | |
Option Grant Contingent upon Continued Employment or Service as a Director and Achievement of Performance Metric | Employee Performance Based Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (Shares) | 139,000 | |
Restricted share units vesting period or option vesting period | 4 years | |
Percentage of options vesting rights | 25.00% | |
Share-based Compensation Award, Tranche Three [Member] | Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of options vesting rights | 50.00% | |
Share-based Compensation Award, Tranche Three [Member] | Employee Performance Based Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of options vesting rights | 50.00% | |
Options Granted in Current Year | Option Grant Solely Contingent upon Continued Employment or Continued Service as a Director | Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option vesting rights | over two years in 50% increments on December 31, 2020 and 2021 | |
Options Granted in Current Year | Option Grant Solely Contingent upon Continued Employment or Continued Service as a Director | Employee Performance Based Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option vesting rights | over two years in 50% increments on December 31, 2020 and 2021 | |
Options Granted in Current Year | Option Grant Contingent upon Continued Employment or Service as a Director and Achievement of Performance Metric | Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option vesting rights | over four years in 25% increments on December 31, 2020, 2021, 2022, and 2023 | |
Options Granted in Current Year | Option Grant Contingent upon Continued Employment or Service as a Director and Achievement of Performance Metric | Employee Performance Based Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option vesting rights | over four years in 25% increments on December 31, 2020, 2021, 2022, and 2023 | |
Options Granted in Current Year | Share-based Compensation Award, Tranche Three [Member] | RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option vesting rights | over two years in 50% increments on December 31, 2022 and 2023 | |
Options Granted in Current Year | Share-based Compensation Award, Tranche Three [Member] | Performance Based Restricted Stock Unit [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option vesting rights | over two years in 50% increments on December 31, 2022 and 2023 |
Equity-Based Compensation, Pr_5
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans - Summary of Equity-Based Compensation Plans with Grants Outstanding (Textual) (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock, shares authorized | 60,000,000 | 60,000,000 |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 3,015.83 | |
RSUs | Option Grant Solely Contingent upon Continued Employment or Continued Service as a Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of options vesting rights | 50.00% | |
Restricted share units vesting period or option vesting period | 2 years | |
Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding | 1,049,000 | 916,000 |
Options | Option Grant Solely Contingent upon Continued Employment or Continued Service as a Director | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of options vesting rights | 50.00% | |
Restricted share units vesting period or option vesting period | 2 years | |
Options | Option Grant Contingent upon Continued Employment or Service as a Director and Achievement of Performance Metric | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of options vesting rights | 25.00% | |
Restricted share units vesting period or option vesting period | 4 years | |
2010 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized | 700,000 | |
Shares Available to Issue | 26,000 | |
2010 Plan | RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized | 240,000 | |
Restricted share units outstanding | 21,000 | 10,000 |
Common stock, shares authorized | 22,000 | |
2010 Plan | Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding | 139,000 | |
2014 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized | 950,000 | |
Shares Available to Issue | 102,000 | |
2014 Plan | Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance metric period | 3 years | |
2018 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized | 275,000 | |
Shares Available to Issue | 129,000 | |
2018 Plan | RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock, shares authorized | 40,000 |
Equity-Based Compensation, Pr_6
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans - Equity-Based Compensation Plans (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Stock Options | |
Stock Option, Shares | |
Outstanding at beginning of period (Shares) | 916 |
Granted (Shares) | 345 |
Exercised (Shares) | (182) |
Forfeited (Shares) | (30) |
Outstanding at end of period (Shares) | 1,049 |
Exercisable at end of period (Shares) | 466 |
Weighted Average Per Share Exercise Price | |
Outstanding at beginning of period (Weighted Average Exercise Price) | $ / shares | $ 1,119.92 |
Granted (Weighted Average Exercise Price) | $ / shares | 3,013.61 |
Exercised (Weighted Average Exercise Price) | $ / shares | 954.49 |
Forfeited (Weighted Average Exercise Price) | $ / shares | 1,283.48 |
Outstanding at end of period (Weighted Average Exercise Price) | $ / shares | 1,766.87 |
Exercisable at end of period (Weighted Average Exercise Price) | $ / shares | $ 1,032.44 |
Remaining Contractual Life and Aggregate Intrinsic Value | |
Outstanding at end of period (Weighted Average Remaining Contract Life (Years) | 6 years 6 months |
Exercisable at end of period (Weighted Average Remaining Contract Life (Years) | 4 years 7 months |
Outstanding at end of period (Aggregate Intrinsic Value) | $ | $ 703,087 |
Exercisable at end of period (Aggregate Intrinsic Value) | $ | $ 655,141 |
Employee Performance Based Stock Option [Member] | |
Stock Option, Shares | |
Granted (Shares) | 173 |
2010 Plan | |
Stock Option, Shares | |
Granted (Shares) | 6 |
RSU, Shares | |
Granted (Shares) | 16 |
2010 Plan | Stock Options | |
Stock Option, Shares | |
Granted (Shares) | 6 |
Outstanding at end of period (Shares) | 139 |
2010 Plan | RSUs | |
RSU, Shares | |
Outstanding at beginning of period (Shares) | 10 |
Granted (Shares) | 16 |
Vested (Shares) | (5) |
Forfeited (Shares) | 0 |
Outstanding at end of period (Shares) | 21 |
Vested, but not issued at end of period (Shares) | 5 |
Remaining Contractual Life and Aggregate Intrinsic Value | |
Outstanding at end of period (Aggregate Intrinsic Value) | $ | $ 50,719 |
Vested, but not issued at end of period (Aggregate Intrinsic Value) | $ | $ 11,532 |
2010 Plan | Employee Performance Based Stock Option [Member] | |
Stock Option, Shares | |
Granted (Shares) | 0 |
2010 Plan | Time Based Restricted Stock Unit [Member] | |
RSU, Shares | |
Granted (Shares) | 8 |
2010 Plan | Performance Based Restricted Stock Unit [Member] | |
RSU, Shares | |
Granted (Shares) | 8 |
2014 Plan | |
Stock Option, Shares | |
Granted (Shares) | 193 |
RSU, Shares | |
Granted (Shares) | 0 |
2014 Plan | Stock Options | |
Stock Option, Shares | |
Granted (Shares) | 93 |
2014 Plan | RSUs | |
RSU, Shares | |
Granted (Shares) | 0 |
2014 Plan | Employee Performance Based Stock Option [Member] | |
Stock Option, Shares | |
Granted (Shares) | 100 |
2014 Plan | Performance Based Restricted Stock Unit [Member] | |
RSU, Shares | |
Granted (Shares) | 0 |
2018 Plan | |
Stock Option, Shares | |
Granted (Shares) | 146 |
RSU, Shares | |
Granted (Shares) | 0 |
2018 Plan | Stock Options | |
Stock Option, Shares | |
Granted (Shares) | 73 |
2018 Plan | RSUs | |
RSU, Shares | |
Granted (Shares) | 0 |
2018 Plan | Employee Performance Based Stock Option [Member] | |
Stock Option, Shares | |
Granted (Shares) | 73 |
2018 Plan | Performance Based Restricted Stock Unit [Member] | |
RSU, Shares | |
Granted (Shares) | 0 |
Equity-Based Compensation, Pr_7
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans - Black-Scholes Option-Pricing Model Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Estimated option life | 5 years 23 days | 5 years 3 months 4 days | 5 years 3 months 7 days |
Risk free interest rate (range), minimum | 2.19% | 1.53% | 0.86% |
Risk free interest rate (range), maximum | 3.13% | 2.38% | 2.21% |
Expected volatility (range), minimum | 16.57% | 15.09% | 15.91% |
Expected volatility (range), maximum | 20.05% | 17.95% | 23.49% |
Expected dividend rate | 0.00% | 0.00% | 0.00% |
Weighted average grant-date fair value per share of options granted | $ 687.81 | $ 494.17 | $ 320.21 |
Equity-Based Compensation, Pr_8
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans - Exercised Option Proceeds (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Aggregate exercise proceeds | $ 174,110 | $ 140,525 | $ 38,106 |
Aggregate intrinsic value on exercise dates | $ 355,318 | $ 206,890 | $ 96,600 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Future Minimum Lease Payments under Operating Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 31,564 |
2,019 | 22,210 |
2,020 | 17,331 |
2,021 | 13,667 |
2,022 | 10,324 |
Thereafter | 12,607 |
Subtotal | 107,703 |
Sublease income | (25) |
Total minimum lease payments | $ 107,678 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)lotcontract | Dec. 31, 2017USD ($)lot | Dec. 31, 2016USD ($) | |
Commitments And Contingencies [Line Items] | |||
Rent expense under operating leases | $ 52,900 | $ 49,400 | $ 45,800 |
Maximum range of deposits required under the purchase agreements | 10.00% | ||
Contingent forfeitable deposits with land developers | $ 193,600 | ||
Number of specific performance contracts | contract | 1 | ||
Finished lots committed to purchase under specific performance obligations | lot | 10 | 10 | |
Purchase price of finished lots committed to purchase under specific performance obligations | $ 1,505 | $ 1,505 | |
Aggregate additional funding commitments related to raw land property development | 7,300 | ||
Expected development credit offset amount | 4,600 | ||
Contingent obligations under bonds or letters of credit arrangements | 37,600 | ||
Credit Agreement | |||
Commitments And Contingencies [Line Items] | |||
Contingent obligations under letters of credit arrangements | $ 9,000 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities - Summary of Changes in Product Warranty/Liability Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Movement in Warranty Reserve [Roll Forward] | |||
Warranty reserve, beginning of year | $ 94,513 | $ 93,895 | $ 87,407 |
Provision | 62,553 | 44,652 | 50,787 |
Payments | (53,366) | (44,034) | (44,299) |
Warranty reserve, end of year | $ 103,700 | $ 94,513 | $ 93,895 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total fair value measurement gain/(loss) | $ 14,309 | $ 5,824 | |
Homebuilding: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior Notes | 597,681 | 597,066 | |
Homebuilding: | Senior Notes due 2022 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior Notes | 597,681 | 597,066 | |
Homebuilding: | Level 2 | Fair Value, Measurements, Recurring | Senior Notes due 2022 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior Notes fair value | 594,000 | 630,000 | |
Mortgage Banking: | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of mortgage loans held for sale | 458,324 | 352,489 | |
Mortgage Banking: | Level 2 | Not Designated as Hedging Instrument | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value adjustment income (expense) | 8,485 | (1,638) | $ 3,147 |
Mortgage Banking: | Level 2 | Fair Value, Measurements, Recurring | Rate lock commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional amount of contractual commitments | 682,152 | ||
Total fair value measurement gain/(loss) | 13,486 | ||
Mortgage Banking: | Level 2 | Fair Value, Measurements, Recurring | Forward sales contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional amount of contractual commitments | 1,089,923 | ||
Total fair value measurement gain/(loss) | (10,057) | ||
Mortgage Banking: | Level 2 | Fair Value, Measurements, Recurring | Mortgages held for sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional amount of contractual commitments | 447,444 | 350,558 | |
Fair value of mortgage loans held for sale | 458,324 | 352,489 | |
Total fair value measurement gain/(loss) | $ 10,880 | $ (1,931) |
Fair Value - Undesignated Deriv
Fair Value - Undesignated Derivative Instruments (Detail) - Mortgage Banking: - Level 2 - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Rate lock commitments | ||
Derivatives, Fair Value [Line Items] | ||
Gross assets | $ 13,831 | $ 5,400 |
Gross liabilities | 345 | 1,832 |
Net commitments | 13,486 | 3,568 |
Forward sales contracts | ||
Derivatives, Fair Value [Line Items] | ||
Gross assets | 64 | 992 |
Gross liabilities | 10,121 | 667 |
Net commitments | $ (10,057) | $ 325 |
Fair Value - Fair Value Measure
Fair Value - Fair Value Measurement (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assumed Gain/(Loss) From Loan Sale | $ 2,627 | |
Interest Rate Movement Effect | 8,267 | |
Servicing Rights Value | 13,472 | |
Security Price Change | (10,057) | |
Total Fair Value Measurement Gain/(Loss) | 14,309 | $ 5,824 |
Mortgage Banking: | Level 2 | Fair Value, Measurements, Recurring | Rate lock commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional or Principal Amount | 682,152 | |
Assumed Gain/(Loss) From Loan Sale | 1,360 | |
Interest Rate Movement Effect | 4,630 | |
Servicing Rights Value | 7,496 | |
Security Price Change | 0 | |
Total Fair Value Measurement Gain/(Loss) | 13,486 | |
Mortgage Banking: | Level 2 | Fair Value, Measurements, Recurring | Forward sales contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional or Principal Amount | 1,089,923 | |
Assumed Gain/(Loss) From Loan Sale | 0 | |
Interest Rate Movement Effect | 0 | |
Servicing Rights Value | 0 | |
Security Price Change | (10,057) | |
Total Fair Value Measurement Gain/(Loss) | (10,057) | |
Mortgage Banking: | Level 2 | Fair Value, Measurements, Recurring | Mortgages held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional or Principal Amount | 447,444 | 350,558 |
Assumed Gain/(Loss) From Loan Sale | 1,267 | |
Interest Rate Movement Effect | 3,637 | |
Servicing Rights Value | 5,976 | |
Security Price Change | 0 | |
Total Fair Value Measurement Gain/(Loss) | $ 10,880 | $ (1,931) |
Mortgage Loan Losses Allowance
Mortgage Loan Losses Allowance - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Mortgage Repurchase Reserve [Abstract] | |||
Pre-tax charges for loan losses related to mortgage loans sold | $ 3,200 | $ 2,900 | $ 2,000 |
Mortgage repurchase reserve | $ 15,600 | $ 14,000 |
Quarterly Results (unaudited) -
Quarterly Results (unaudited) - Quarterly Financial Data and Operating Information (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($)SettlementsBacklogorder$ / shares | Sep. 30, 2018USD ($)SettlementsBacklogorder$ / shares | Jun. 30, 2018USD ($)SettlementsBacklogorder$ / shares | Mar. 31, 2018USD ($)SettlementsBacklogorder$ / shares | Dec. 31, 2017USD ($)SettlementsBacklogorder$ / shares | Sep. 30, 2017USD ($)SettlementsBacklogorder$ / shares | Jun. 30, 2017USD ($)SettlementsBacklogorder$ / shares | Mar. 31, 2017USD ($)SettlementsBacklogorder$ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | |
Quarterly Financial Information [Line Items] | |||||||||||
Mortgage banking fees | $ 7,163,674 | $ 6,305,840 | $ 5,822,544 | ||||||||
Net income | $ 232,158 | $ 195,816 | $ 203,174 | $ 166,049 | $ 124,619 | $ 162,102 | $ 147,877 | $ 102,923 | $ 797,197 | $ 537,521 | $ 425,262 |
Diluted earnings per share (USD per share) | $ / shares | $ 58.57 | $ 48.28 | $ 49.05 | $ 39.34 | $ 28.88 | $ 38.02 | $ 35.19 | $ 25.12 | $ 194.80 | $ 126.77 | $ 103.61 |
New orders (units) | order | 3,841 | 4,302 | 4,964 | 5,174 | 4,306 | 4,200 | 4,678 | 4,424 | |||
Settlements (units) | Settlements | 5,186 | 4,754 | 4,611 | 3,896 | 4,630 | 4,158 | 3,917 | 3,256 | |||
Backlog, end of period (units) | Backlog | 8,365 | 9,710 | 10,162 | 9,809 | 8,531 | 8,855 | 8,813 | 8,052 | |||
Loans closed | $ 1,356,430 | $ 1,249,199 | $ 1,214,101 | $ 1,009,673 | $ 1,229,695 | $ 1,115,494 | $ 1,041,613 | $ 843,341 | |||
Homebuilding: | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Gross profit – homebuilding operations | 363,668 | 336,696 | 333,666 | 278,147 | 343,187 | 325,755 | 294,631 | 221,570 | |||
Mortgage banking fees | 1,954,403 | 1,809,345 | 1,750,463 | 1,490,093 | 1,781,494 | 1,633,726 | 1,512,714 | 1,247,587 | $ 7,004,304 | $ 6,175,521 | $ 5,709,223 |
Mortgage Banking: | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Mortgage banking fees | $ 40,145 | $ 43,062 | $ 36,842 | $ 39,321 | $ 34,842 | $ 34,194 | $ 31,778 | $ 29,505 | $ 159,370 | $ 130,319 | $ 113,321 |