Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 26, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-12378 | |
Entity Registrant Name | NVR, Inc. | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 54-1394360 | |
Entity Address, Address Line One | 11700 Plaza America Drive | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Reston | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 20190 | |
City Area Code | 703 | |
Local Phone Number | 956-4000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | NVR | |
Security Exchange Name | NYSE | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,655,268 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000906163 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory: | ||
Land under development | $ 46,725 | |
Contract land deposits, net | 409,754 | $ 396,177 |
Total assets | 3,603,240 | 3,165,933 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Operating Lease, Liability | 87,331 | |
Total liabilities | 1,483,801 | 1,357,371 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares issued as of both September 30, 2018 and December 31, 2017 | 206 | 206 |
Additional paid-in capital | 1,962,156 | 1,820,223 |
Deferred compensation trust – 107,336 and 108,640 shares of NVR, Inc. common stock as of September 30, 2018 and December 31, 2017, respectively | (16,912) | (16,937) |
Deferred compensation liability | 16,912 | 16,937 |
Retained earnings | 7,429,948 | 7,031,333 |
Less treasury stock at cost – 16,960,261 and 16,864,324 shares as of September 30, 2018 and December 31, 2017, respectively | (7,272,871) | (7,043,200) |
Total shareholders' equity | 2,119,439 | 1,808,562 |
Total liabilities and shareholders' equity | 3,603,240 | 3,165,933 |
Home Building [Member] | ||
ASSETS | ||
Cash and cash equivalents | 860,956 | 688,783 |
Restricted cash | 20,403 | 16,982 |
Receivables | 28,943 | 18,641 |
Inventory: | ||
Lots and housing units, covered under sales agreements with customers | 1,199,015 | 1,076,904 |
Unsold lots and housing units | 132,667 | 115,631 |
Land under development | 46,725 | 38,857 |
Building materials and other | 19,321 | 21,718 |
Total Inventory | 1,397,728 | 1,253,110 |
Contract land deposits, net | 409,754 | 396,177 |
Property, plant and equipment, net | 48,279 | 42,234 |
Operating Lease, Right-of-Use Asset | 65,027 | 0 |
Reorganization value in excess of amounts allocable to identifiable assets, net | 41,580 | 41,580 |
Other assets | 185,727 | 184,004 |
Total assets | 3,058,397 | 2,641,511 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Accounts payable | 309,419 | 244,496 |
Accrued expenses and other liabilities | 299,466 | 332,871 |
Customer deposits | 146,207 | 138,246 |
Operating Lease, Liability | 72,360 | 0 |
Senior notes | 597,991 | 597,681 |
Total liabilities | 1,425,443 | 1,313,294 |
Mortgage Banking [Member] | ||
ASSETS | ||
Cash and cash equivalents | 21,363 | 23,092 |
Restricted cash | 3,393 | 3,071 |
Trade and Loans Receivables Held-for-sale, Net, Not Part of Disposal Group | 462,693 | 458,324 |
Inventory: | ||
Property, plant and equipment, net | 6,240 | 6,510 |
Operating Lease, Right-of-Use Asset | 14,078 | 0 |
Reorganization value in excess of amounts allocable to identifiable assets, net | 7,347 | 7,347 |
Other assets | 29,729 | 26,078 |
Total assets | 544,843 | 524,422 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Operating Lease, Liability | 14,971 | 0 |
Accounts payable and other liabilities | 43,387 | 44,077 |
Total liabilities | $ 58,358 | $ 44,077 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (USD per share) | $ 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 | 107,295 | 107,340 |
Treasury stock, shares | 16,911,734 | 16,977,499 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | $ 1,800,194 | $ 1,787,305 | $ 3,487,205 | $ 3,316,719 |
Interest expense | (6,301) | (6,329) | (12,516) | (12,611) |
Income before taxes | 244,712 | 241,586 | 463,319 | 432,584 |
Income tax expense | (34,503) | (38,412) | (64,704) | (63,361) |
Net income | $ 210,209 | $ 203,174 | $ 398,615 | $ 369,223 |
Basic earnings per share (USD per share) | $ 58.20 | $ 55.90 | $ 110.43 | $ 101.03 |
Diluted earnings per share (USD per share) | $ 53.09 | $ 49.05 | $ 100.61 | $ 88.31 |
Basic weighted average shares outstanding (in shares) | 3,612 | 3,635 | 3,610 | 3,655 |
Diluted weighted average shares outstanding (in shares) | 3,959 | 4,142 | 3,962 | 4,181 |
Home Building [Member] | ||||
Revenues | $ 1,757,448 | $ 1,750,463 | $ 3,400,654 | $ 3,240,556 |
Other income | 5,833 | 2,164 | 11,570 | 4,141 |
Cost of Goods and Services Sold | 1,425,388 | 1,416,797 | 2,764,194 | 2,628,743 |
Selling, general and administrative | (112,210) | (106,517) | (227,944) | (212,064) |
Operating income | 225,683 | 229,313 | 420,086 | 403,890 |
Interest expense | (6,033) | (6,047) | (12,026) | (12,054) |
Income before taxes | 219,650 | 223,266 | 408,060 | 391,836 |
Mortgage Banking [Member] | ||||
Revenues | 42,746 | 36,842 | 86,551 | 76,163 |
Interest income | 2,737 | 2,915 | 5,570 | 5,008 |
Other income | 681 | 641 | 1,220 | 1,165 |
General and administrative | (20,834) | (21,796) | (37,592) | (41,031) |
Interest expense | (268) | (282) | (490) | (557) |
Income before taxes | $ 25,062 | $ 18,320 | $ 55,259 | $ 40,748 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Finance Lease, Principal Payments | $ (12) | $ 0 |
Cash flows from operating activities: | ||
Net income | 398,615 | 369,223 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 10,146 | 10,024 |
Equity-based compensation expense | 37,910 | 28,104 |
Contract land deposit and other (recoveries) impairments, net | (23) | 44 |
Gain on sale of loans, net | (67,919) | (58,891) |
Mortgage loans closed | (2,373,748) | (2,223,302) |
Mortgage loans sold and principal payments on mortgage loans held for sale | 2,428,410 | 2,229,894 |
Distribution of earnings from unconsolidated joint ventures | 2,156 | 2,849 |
Net change in assets and liabilities: | ||
Increase in inventory | (144,618) | (187,416) |
(Increase) decrease in contract land deposits | (13,554) | 9,333 |
Increase in receivables | (9,597) | (10,417) |
Increase (decrease) in accounts payable and accrued expenses | 32,771 | (11,332) |
Increase in customer deposits | 7,961 | 22,000 |
Other, net | (5,891) | (10,663) |
Net cash provided by operating activities | 302,619 | 169,450 |
Cash flows from investing activities: | ||
Investments in and advances to unconsolidated joint ventures | (335) | (284) |
Distribution of capital from unconsolidated joint ventures | 7,167 | 6,027 |
Purchase of property, plant and equipment | (10,699) | (9,251) |
Proceeds from the sale of property, plant and equipment | 1,069 | 425 |
Net cash used in investing activities | (2,798) | (3,083) |
Cash flows from financing activities: | ||
Purchase of treasury stock | (304,479) | (483,538) |
Proceeds from the exercise of stock options | 178,831 | 86,094 |
Net cash used in financing activities | (125,660) | (397,444) |
Net increase (decrease) in cash, restricted cash, and cash equivalents | 174,161 | (231,077) |
Cash, restricted cash, and cash equivalents, beginning of the period | 732,248 | 689,557 |
Cash, restricted cash, and cash equivalents, end of the period | 906,409 | 458,480 |
Supplemental disclosures of cash flow information: | ||
Interest paid during the period, net of interest capitalized | 12,052 | 12,151 |
Income taxes paid during the period, net of refunds | $ 71,486 | $ 86,269 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Significant Accounting Policies Basis of Presentation The accompanying unaudited, condensed consolidated financial statements include the accounts of NVR, Inc. (“NVR”, the “Company”, "we", "us" or "our") and its subsidiaries and certain other entities in which the Company is deemed to be the primary beneficiary (see Notes 2 and 3 to the accompanying condensed consolidated financial statements). Intercompany accounts and transactions have been eliminated in consolidation. The statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. Because the accompanying condensed consolidated financial statements do not include all of the information and footnotes required by GAAP, they should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 . In the opinion of management, all adjustments (consisting only of normal recurring accruals except as otherwise noted herein) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. For the three and six months ended June 30, 2019 and 2018 , comprehensive income equaled net income; therefore, a separate statement of comprehensive income is not included in the accompanying condensed consolidated financial statements. Cash and Cash Equivalents The beginning-of-period and end-of-period cash, restricted cash, and cash equivalent balances presented on the accompanying condensed consolidated statements of cash flows includes cash related to a consolidated joint venture which is included in homebuilding "Other assets" on the accompanying condensed consolidated balance sheets. The cash related to this consolidated joint venture as of June 30, 2019 and December 31, 2018 was $294 and $320 , respectively, and as of June 30, 2018 and December 31, 2017 was $1,128 and $1,069 , respectively. Revenue Recognition Homebuilding revenue is recognized on the settlement date at the contract sales price, when control is transferred to our customers. Our contract liabilities, which consist of deposits received from customers (“Handmoney”) on homes not settled, were $146,207 and $138,246 as of June 30, 2019 and December 31, 2018, respectively. We expect that substantially all of the December 31, 2018 Handmoney balance will be recognized in revenue in 2019. Our prepaid sales compensation totaled approximately $18,100 and $17,000 , as of June 30, 2019 and December 31, 2018 , respectively. These amounts are included in homebuilding “Other assets” on the accompanying condensed consolidated balance sheets. Recently Adopted Accounting Pronouncements On January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842) , which requires the recognition of our leases on the balance sheet as right-of-use ("ROU") assets and lease liabilities. We elected to adopt Topic 842 using the effective date transition method, which permits us to apply the new standard prospectively and present comparative years under legacy GAAP. In adoption of the standard, we also elected the following: • to apply the package of practical expedients during transition, under which we were not required to reassess as of the date of adoption (i) whether any of our contracts are or contain leases, (ii) the classifications of our leases, and (iii) any initial direct costs related to those leases. • to exclude leases with an initial lease term of 12 months or less from the recognition requirements under Topic 842. • to utilize the portfolio approach for certain office equipment leases, grouping leases by asset type which have similar lease terms and payment schedules. Upon adoption, on January 1, 2019 we recorded a lease liability of $85,516 and a ROU asset of $79,345 |
Variable Interest Entities ("VI
Variable Interest Entities ("VIEs") | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure [Abstract] | |
Variable Interest Entities | Variable Interest Entities ("VIEs") Fixed Price Finished Lot Purchase Agreements (“Lot Purchase Agreements”) We generally do not engage in the land development business. Instead, we typically acquire 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 we fail 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. We believe this lot acquisition strategy reduces the financial requirements and risks associated with direct land ownership and land development. We may, at our option, choose for any reason and at any time not to perform under these Lot Purchase Agreements by delivering notice of our intent not to acquire the finished lots under contract. Our 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. None of the creditors of any of the development entities with which we enter Lot Purchase Agreements have recourse to our general credit. We generally do not have any specific performance obligations to purchase a certain number or any of the lots, nor do we guarantee completion of the development by the developer or guarantee any of the developers’ financial or other liabilities. We are not involved in the design or creation of the development entities from which we purchase lots under Lot Purchase Agreements. The developer’s equity holders have the power to direct 100% of the operating activities of the development entity. We have 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, we do 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 us 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 VIEs. Therefore, the development entities with which we enter into Lot Purchase Agreements, including the joint venture limited liability corporations discussed below, are evaluated for possible consolidation by us. 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. We believe the activities that most significantly impact a development entity’s economic performance are the operating activities of the entity. The development entity’s equity investors bear the full risk during the development process. Unless and until a development entity completes finished building lots through the development process, 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 we contract to buy finished lots typically select the respective projects, obtain the necessary zoning approvals, obtain the financing required with no support or guarantees from us, 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 us. We possess no more than limited protective legal rights through the Lot Purchase Agreement in the specific finished lots that we are purchasing, and we possess no participative rights in the development entities. Accordingly, we do not have the power to direct the activities of a developer that most significantly impact the developer’s economic performance. For this reason, we have concluded that we are not the primary beneficiary of the development entities with which we enter into Lot Purchase Agreements, and therefore, we do not consolidate any of these VIEs. As of June 30, 2019 , we controlled approximately 97,650 lots under Lot Purchase Agreements with third parties through deposits in cash and letters of credit totaling approximately $435,900 and $3,900 , respectively. As noted above, our 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. In addition, we have certain properties under contract with land owners that are expected to yield approximately 7,400 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 $1,700 and $100 , respectively, as of June 30, 2019 , of which approximately $1,400 is refundable if certain contractual conditions are not met. We generally expect 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. Our total risk of loss related to contract land deposits as of June 30, 2019 and December 31, 2018 was as follows: June 30, 2019 December 31, 2018 Contract land deposits $ 437,646 $ 425,393 Loss reserve on contract land deposits (27,892 ) (29,216 ) Contract land deposits, net 409,754 396,177 Contingent obligations in the form of letters of credit 4,044 3,923 Specific performance obligations (1) 1,505 1,505 Total risk of loss $ 415,303 $ 401,605 (1) As of both June 30, 2019 and December 31, 2018 , we were committed to purchase 10 finished lots under specific performance obligations. |
Joint Ventures Joint Ventures
Joint Ventures Joint Ventures | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Joint Ventures On a limited basis, we obtain finished lots using joint venture limited liability corporations (“JVs”). The JVs are typically structured such that we are a non-controlling member and are at risk only for the amount we have invested, or have committed to invest, in addition to any deposits placed under Lot Purchase Agreements with the joint venture. We are not a borrower, guarantor or obligor on any debt of the JVs, as applicable. We enter into Lot Purchase Agreements to purchase lots from these JVs, and as a result have a variable interest in these JVs. At June 30, 2019 , we had an aggregate investment totaling approximately $25,000 in six JVs that are expected to produce approximately 6,600 finished lots, of which approximately 3,200 lots were controlled by us and the remaining approximately 3,400 lots were either under contract with unrelated parties or not currently under contract. In addition, we had additional funding commitments totaling approximately $4,700 in the aggregate to three of the JVs at June 30, 2019 . We have determined that we are not the primary beneficiary of five of the JVs because we either share power with the other JV partner or the other JV partner has the controlling financial interest. The aggregate investment in unconsolidated JVs was approximately $25,000 and $29,400 at June 30, 2019 and December 31, 2018 , respectively, and is reported in the “Other assets” line item on the accompanying condensed consolidated balance sheets. For the remaining JV, we have concluded that we are the primary beneficiary because we have the controlling financial interest in the JV. As of December 31, 2018, all activities under the consolidated JV had been completed. As of June 30, 2019 , we had no investment remaining in the JV and the JV had remaining balances of $294 in cash and $264 in accrued expenses, which are included in homebuilding "Other assets" and "Accrued expenses and other liabilities," respectively, in the accompanying condensed consolidated balance sheets. We recognize income from the JVs as a reduction to the lot cost of the lots purchased from the respective JVs when the homes are settled, based on the expected total profitability and the total number of lots expected to be produced by the respective JVs. We 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 us 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 condensed consolidated statements of cash flows as cash flows from operating activities and investing activities, respectively. |
Land Under Development
Land Under Development | 6 Months Ended |
Jun. 30, 2019 | |
Real Estate [Abstract] | |
Land Under Development | Land Under Development On a limited basis, we directly acquire 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 June 30, 2019 , we directly owned a total of four separate raw land parcels with a carrying value of $46,725 that are expected to produce approximately 550 finished lots. We also have additional funding commitments of approximately $6,000 under a joint development agreement related to one parcel, a portion of which we expect will be offset by development credits of approximately $3,300 . None of the raw parcels had any indicators of impairment as of June 30, 2019 |
Capitalized Interest
Capitalized Interest | 6 Months Ended |
Jun. 30, 2019 | |
Capitalized Interest Costs, Including Allowance for Funds Used During Construction [Abstract] | |
Capitalized Interest | Capitalized Interest We capitalize interest costs to land under development during the active development of finished lots. In addition, we capitalize interest costs on our JV investments while the investments are considered qualified assets pursuant to ASC Topic 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 our 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. The following table reflects the changes in our capitalized interest during the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Interest capitalized, beginning of period $ 4,140 $ 5,545 $ 4,154 $ 5,583 Interest incurred 6,607 6,624 13,106 13,220 Interest charged to interest expense (6,301 ) (6,329 ) (12,516 ) (12,611 ) Interest charged to cost of sales (592 ) (452 ) (890 ) (804 ) Interest capitalized, end of period $ 3,854 $ 5,388 $ 3,854 $ 5,388 |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
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 three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Weighted average number of shares outstanding used to calculate basic EPS 3,612 3,635 3,610 3,655 Dilutive securities: Stock options and restricted share units 347 507 352 526 Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS 3,959 4,142 3,962 4,181 The following non-qualified stock options ("Options") issued under equity incentive plans were outstanding during the three and six months ended June 30, 2019 and 2018 , but were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Anti-dilutive securities 318 349 345 349 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity A summary of changes in shareholders’ equity for the three months ended June 30, 2019 is presented below: Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Deferred Compensation Trust Deferred Compensation Liability Total Balance, March 31, 2019 $ 206 $ 1,899,100 $ 7,219,739 $ (7,220,269 ) $ (16,912 ) $ 16,912 $ 1,898,776 Net income — — 210,209 — — — 210,209 Deferred compensation activity, net — — — — — — — Purchase of common stock for treasury — — — (87,980 ) — — (87,980 ) Equity-based compensation — 18,577 — — — — 18,577 Proceeds from Options exercised — 79,857 — — — — 79,857 Treasury stock issued upon option exercise and restricted share vesting — (35,378 ) — 35,378 — — — Balance, June 30, 2019 $ 206 $ 1,962,156 $ 7,429,948 $ (7,272,871 ) $ (16,912 ) $ 16,912 $ 2,119,439 A summary of changes in shareholders’ equity for the six months ended June 30, 2019 is presented below: Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Deferred Compensation Trust Deferred Compensation Liability Total Balance, December 31, 2018 $ 206 $ 1,820,223 $ 7,031,333 $ (7,043,200 ) $ (16,937 ) $ 16,937 $ 1,808,562 Net income — — 398,615 — — — 398,615 Deferred compensation activity, net — — — — 25 (25 ) — Purchase of common stock for treasury — — — (304,479 ) — — (304,479 ) Equity-based compensation — 37,910 — — — — 37,910 Proceeds from Options exercised — 178,831 — — — — 178,831 Treasury stock issued upon option exercise and restricted share vesting — (74,808 ) — 74,808 — — — Balance, June 30, 2019 $ 206 $ 1,962,156 $ 7,429,948 $ (7,272,871 ) $ (16,912 ) $ 16,912 $ 2,119,439 We repurchased approximately 30 and 112 shares of our common stock during the three and six months ended June 30, 2019 , respectively. We settle Option exercises and vesting of RSUs by issuing shares of treasury stock. Approximately 82 and 177 shares were issued from the treasury account during the three and six months ended June 30, 2019 , respectively, in settlement of Option exercises and vesting of RSUs. Shares are relieved from the treasury account based on the weighted average cost basis of treasury shares acquired. A summary of changes in shareholders’ equity for the three months ended June 30, 2018 is presented below: Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Deferred Compensation Trust Deferred Compensation Liability Total Balance, March 31, 2018 $ 206 $ 1,678,100 $ 6,400,185 $ (6,611,683 ) $ (17,389 ) $ 17,389 $ 1,466,808 Net income — — 203,174 — — — 203,174 Deferred compensation activity, net — — — — 241 (241 ) — Purchase of common stock for treasury — — — (126,296 ) — — (126,296 ) Equity-based compensation — 18,595 — — — — 18,595 Proceeds from Options exercised — 45,290 — — — — 45,290 Treasury stock issued upon option exercise and restricted share vesting — (20,289 ) — 20,289 — — — Balance, June 30, 2018 $ 206 $ 1,721,696 $ 6,603,359 $ (6,717,690 ) $ (17,148 ) $ 17,148 $ 1,607,571 A summary of changes in shareholders’ equity for the six months ended June 30, 2018 is presented below: Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Deferred Compensation Trust Deferred Compensation Liability Total Balance, December 31, 2017 $ 206 $ 1,644,197 $ 6,231,940 $ (6,270,851 ) $ (17,383 ) $ 17,383 $ 1,605,492 Cumulative-effect adjustment from adoption of ASU 2014-09, net of tax — — 2,196 — — — 2,196 Net income — — 369,223 — — — 369,223 Deferred compensation activity, net — — — — 235 (235 ) — Purchase of common stock for treasury — — — (483,538 ) — — (483,538 ) Equity-based compensation — 28,104 — — — — 28,104 Proceeds from Options exercised — 86,094 — — — — 86,094 Treasury stock issued upon option exercise and restricted share vesting — (36,699 ) — 36,699 — — — Balance, June 30, 2018 $ 206 $ 1,721,696 $ 6,603,359 $ (6,717,690 ) $ (17,148 ) $ 17,148 $ 1,607,571 We repurchased approximately 42 and 158 shares of our common stock during the three and six months ended June 30, 2018, respectively. Approximately 52 and 96 shares were issued from the treasury account during the three and six months ended June 30, 2018, respectively, in settlement of Option exercises and vesting of RSUs. |
Product Warranties
Product Warranties | 6 Months Ended |
Jun. 30, 2019 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | Product Warranties We establish warranty and product liability reserves (“Warranty Reserve”) to provide for estimated future expenses as a result of construction and product defects, product recalls and litigation incidental to our homebuilding business. Liability estimates are determined based on management’s judgment, considering such factors as historical experience, the estimated 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 our general counsel and outside counsel retained to handle specific product liability cases. The following table reflects the changes in our Warranty Reserve during the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Warranty reserve, beginning of period $ 102,852 $ 95,606 $ 103,700 $ 94,513 Provision 16,446 16,217 28,269 27,744 Payments (18,639 ) (12,121 ) (31,310 ) (22,555 ) Warranty reserve, end of period $ 100,659 $ 99,702 $ 100,659 $ 99,702 |
Segment Disclosures
Segment Disclosures | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Disclosures | Segment Disclosures We disclose four homebuilding reportable segments that aggregate geographically our homebuilding operating segments, and our mortgage banking operations presented as one reportable segment. The homebuilding reportable segments are comprised of operating divisions in the following geographic areas: Mid Atlantic: Maryland, Virginia, West Virginia, Delaware and Washington, D.C. North East: New Jersey and Eastern Pennsylvania Mid East: New York, Ohio, Western Pennsylvania, Indiana and Illinois South East: North Carolina, South Carolina, Florida and Tennessee Homebuilding profit before tax includes all revenues and income generated from the sale of homes, less the cost of homes sold, selling, general and administrative expenses and a corporate capital allocation charge. The corporate capital allocation charge is eliminated in consolidation and is based on the 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 our cost of capital. Assets not allocated to the operating segments are not included in either the operating segment’s corporate capital allocation charge or the CODM’s evaluation of the operating segment’s performance. We record charges on contract land deposits when it is determined that it is probable that recovery of the deposit is impaired. For segment reporting purposes, impairments on contract land deposits are generally charged to the operating segment upon the termination of a Lot Purchase Agreement with the developer, or the restructuring of a Lot Purchase Agreement resulting in the forfeiture of the deposit. Mortgage banking profit before tax consists of revenues generated from mortgage financing, title insurance and closing services, less the costs of such services and general and administrative costs. Mortgage banking operations are not charged a corporate capital allocation charge. In addition to the corporate capital allocation and contract land deposit impairments discussed above, the other reconciling items between segment profit and consolidated profit before tax include unallocated corporate overhead (including all management incentive compensation), equity-based compensation expense, consolidation adjustments and external corporate interest expense. Overhead functions such as accounting, treasury and human resources are centrally performed and these costs are not allocated to our operating segments. Consolidation adjustments consist of such items necessary to convert the reportable segments’ results, which are predominantly maintained on a cash basis, to a full accrual basis for external financial statement presentation purposes, and are not allocated to our operating segments. External corporate interest expense primarily consists of interest charges on our 3.95% Senior Notes due 2022 (the “Senior Notes”) and is not charged to the operating segments because the charges are included in the corporate capital allocation discussed above. The f ollowing tables present segment revenues, profit and assets with reconciliations to the amounts reported for the consolidated enterprise, where applicable: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenues: Homebuilding Mid Atlantic $ 982,032 $ 973,677 $ 1,863,356 $ 1,816,173 Homebuilding North East 121,804 147,618 244,431 270,332 Homebuilding Mid East 359,908 363,288 698,457 653,525 Homebuilding South East 293,704 265,880 594,410 500,526 Mortgage Banking 42,746 36,842 86,551 76,163 Total consolidated revenues $ 1,800,194 $ 1,787,305 $ 3,487,205 $ 3,316,719 Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Income before taxes: Homebuilding Mid Atlantic $ 123,802 $ 112,221 $ 223,166 $ 203,268 Homebuilding North East 11,563 16,777 23,023 32,481 Homebuilding Mid East 40,291 42,174 75,766 69,385 Homebuilding South East 30,825 29,203 65,861 52,440 Mortgage Banking 26,173 19,685 55,731 42,235 Total segment profit before taxes 232,654 220,060 443,547 399,809 Reconciling items: Equity-based compensation expense (1) (18,577 ) (18,595 ) (37,910 ) (28,104 ) Corporate capital allocation (2) 56,177 53,954 110,735 104,653 Unallocated corporate overhead (29,354 ) (22,503 ) (61,089 ) (53,787 ) Consolidation adjustments and other 9,836 14,701 20,034 22,031 Corporate interest expense (6,024 ) (6,031 ) (11,998 ) (12,018 ) Reconciling items sub-total 12,058 21,526 19,772 32,775 Consolidated income before taxes $ 244,712 $ 241,586 $ 463,319 $ 432,584 (1) The increase in equity-based compensation expense for the six-month period ended June 30, 2019 was primarily attributable to the equity grant in the second quarter of 2018. (2) This item represents the elimination of the corporate capital allocation charge included in the respective homebuilding reportable segments. The corporate capital allocation charge is based on the segment’s monthly average asset balance, and was as follows for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Corporate capital allocation charge: Homebuilding Mid Atlantic $ 31,378 $ 31,501 $ 61,794 $ 61,949 Homebuilding North East 4,626 4,580 9,353 8,760 Homebuilding Mid East 9,497 9,057 18,512 17,030 Homebuilding South East 10,676 8,816 21,076 16,914 Total $ 56,177 $ 53,954 $ 110,735 $ 104,653 June 30, 2019 December 31, 2018 Assets: Homebuilding Mid Atlantic $ 1,082,646 $ 1,018,953 Homebuilding North East 154,143 144,412 Homebuilding Mid East 330,446 290,815 Homebuilding South East 380,499 332,468 Mortgage Banking 537,496 517,075 Total segment assets 2,485,230 2,303,723 Reconciling items: Cash and cash equivalents 860,956 688,783 Deferred taxes 115,432 112,333 Intangible assets and goodwill 49,911 49,989 Operating lease right-of-use assets 65,027 — Contract land deposit reserve (27,892 ) (29,216 ) Consolidation adjustments and other 54,576 40,321 Reconciling items sub-total 1,118,010 862,210 Consolidated assets $ 3,603,240 $ 3,165,933 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2019 | |
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 our Senior Notes as of June 30, 2019 and December 31, 2018 were $619,500 and $594,000 , 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 June 30, 2019 and December 31, 2018 were $597,991 and $597,681 , respectively. Except as otherwise noted below, we believe that insignificant differences exist between the carrying value and the fair value of our financial instruments, which consist primarily of cash equivalents, due to their short term nature. Derivative Instruments and Mortgage Loans Held for Sale In the normal course of business, our wholly-owned mortgage subsidiary, NVR Mortgage Finance, Inc. (“NVRM”), enters into contractual commitments to extend credit to our homebuyers 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 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 June 30, 2019 , there were contractual commitments to extend credit to borrowers aggregating $878,701 and open forward delivery contracts aggregating $1,169,844 , which hedge both the rate lock loan commitments and closed loans held for sale. The fair value of NVRM’s rate lock commitments to borrowers and the related input levels include, 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. The fair value of loans held for sale of $462,693 included on the accompanying condensed consolidated balance sheet has been increased by $13,545 from the aggregate principal balance of $449,148 . As of December 31, 2018 , the fair value of loans held for sale of $458,324 were increased by $10,880 from the aggregate principal balance of $447,444 . The fair value measurement of NVRM's undesignated derivative instruments was as follows: June 30, 2019 December 31, 2018 Rate lock commitments: Gross assets $ 19,151 $ 13,831 Gross liabilities 199 345 Net rate lock commitments $ 18,952 $ 13,486 Forward sales contracts: Gross assets $ 215 $ 64 Gross liabilities 6,850 10,121 Net forward sales contracts $ (6,635 ) $ (10,057 ) As of both June 30, 2019 and 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 condensed consolidated balance sheets. The fair value measurement adjustment as of June 30, 2019 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 $ 878,701 $ 4,796 $ 5,231 $ 8,925 $ — $ 18,952 Forward sales contracts $ 1,169,844 — — — (6,635 ) (6,635 ) Mortgages held for sale $ 449,148 3,080 5,231 5,234 — 13,545 Total fair value measurement $ 7,876 $ 10,462 $ 14,159 $ (6,635 ) $ 25,862 The total fair value measurement adjustment as of December 31, 2018 was $14,309 . For the three and six months ended June 30, 2019 , NVRM recorded a fair value adjustment to income of $2,644 and $11,553 , respectively. For the three and six months ended June 30, 2018 , NVRM recorded a fair value adjustment to income of $5,585 and $9,599 , respectively. 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 condensed 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. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt Senior Notes As of June 30, 2019 , we had Senior Notes outstanding with a principal balance of $600,000 . 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 were issued at a discount to yield 3.97% and have been reflected net of the unamortized discount and unamortized debt issuance costs in the accompanying condensed consolidated balance sheet. Credit Agreement We have an unsecured Credit Agreement (the “Credit Agreement”), which provides for aggregate revolving loan commitments of $200,000 (the “Facility”). Under the Credit Agreement, we 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 June 30, 2019 , and a $25,000 sublimit for a swing line commitment. The Credit Agreement termination date is July 15, 2021 . There was no debt outstanding under the Facility at June 30, 2019 . Repurchase Agreement NVRM provides for its mortgage origination and other operating activities using cash generated from its operations, borrowings from its parent company, NVR, as well as a revolving mortgage repurchase agreement (the “Repurchase Agreement”), which is non-recourse to NVR. The Repurchase Agreement provides for loan purchases up to $150,000 , subject to certain sub-limits. Amounts outstanding under the Repurchase Agreement are collateralized by the Company’s mortgage loans held for sale. In July 2019, NVRM entered into the Eleventh Amendment (the "Amendment") to the Repurchase Agreement, which extended the term of the Repurchase Agreement through July 22, 2020 . The Amendment is filed herewith as Exhibit 10.1. All other terms and conditions under the amended Repurchase Agreement remained materially consistent. At June 30, 2019 , there were no borrowing base limitations reducing the amount available under the Repurchase Agreement. There was no debt outstanding under the Repurchase Agreement at June 30, 2019 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are involved in various 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 our financial position, results of operations or cash flows. Legal costs incurred in connection with outstanding litigation are expensed as incurred. |
Leases Leases
Leases Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lessee, Finance Leases [Text Block] | Leases We have operating leases for our corporate and division offices, production facilities, model homes, and certain office and production equipment. Additionally, we have finance leases for production equipment which are recorded in homebuilding "Property, plant and equipment, net" and "Accrued expenses and other liabilities" on the accompanying condensed consolidated balance sheets. Our leases have remaining lease terms of up to 10 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the lease. On January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842) , which requires lessees to recognize most leases on the balance sheet as ROU assets with corresponding lease liabilities. See Note 1 for additional discussion regarding the adoption of Topic 842. The ROU assets and lease liabilities are recognized based on the present value of lease payments over the lease term, discounted using our incremental borrowing rate at the commencement date of the lease. We recognize operating lease expense on a straight-line basis over the lease term. We have elected to use the portfolio approach for certain equipment leases which have similar lease terms and payment schedules. Additionally, for certain equipment we account for the lease and non-lease components as a single lease component. Our sublease income is de minimis. We have certain leases, primarily the leases of model homes, which have initial lease terms of twelve months or less ("Short-term leases"). We elected to exclude these leases from the recognition requirements under Topic 842, and these leases have not been included in our recognized ROU assets and lease liabilities. The components of lease expense were as follows: Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Lease expense Operating lease expense $ 8,387 $ 15,947 Finance lease expense: Amortization of ROU assets 21 21 Interest on lease liabilities 5 5 Short-term lease expense 5,640 11,245 Total lease expense $ 14,053 $ 27,218 Other information related to leases was as follows: Six Months Ended June 30, 2019 Supplemental Cash Flows Information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12,877 Operating cash flows from finance leases 5 Financing cash flows from finance leases 12 ROU assets obtained in exchange for lease obligations: Operating leases $ 9,551 Finance leases $ 5,227 Weighted-average remaining lease term (in years): Operating leases 4.7 Finance leases 7.0 Weighted-average discount rate: Operating leases 3.7 % Finance leases 3.0 % We are committed under multiple non-cancelable operating and finance leases involving office space, production facilities, model homes, office and production equipment, and automobiles. Future minimum lease payments under these leases as of June 30, 2019 were as follows: Years Ending December 31, Operating Leases Finance Leases 2019 $ 17,125 $ 358 2020 24,719 716 2021 18,844 716 2022 14,777 716 2023 11,149 716 Thereafter 15,207 2,612 Total minimum lease payments 101,821 5,834 Less: Imputed interest (8,591 ) (618 ) Short-term lease payments (5,899 ) — Total lease liability $ 87,331 $ 5,216 |
Lessee, Operating Leases [Text Block] | Leases We have operating leases for our corporate and division offices, production facilities, model homes, and certain office and production equipment. Additionally, we have finance leases for production equipment which are recorded in homebuilding "Property, plant and equipment, net" and "Accrued expenses and other liabilities" on the accompanying condensed consolidated balance sheets. Our leases have remaining lease terms of up to 10 years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the lease. On January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842) , which requires lessees to recognize most leases on the balance sheet as ROU assets with corresponding lease liabilities. See Note 1 for additional discussion regarding the adoption of Topic 842. The ROU assets and lease liabilities are recognized based on the present value of lease payments over the lease term, discounted using our incremental borrowing rate at the commencement date of the lease. We recognize operating lease expense on a straight-line basis over the lease term. We have elected to use the portfolio approach for certain equipment leases which have similar lease terms and payment schedules. Additionally, for certain equipment we account for the lease and non-lease components as a single lease component. Our sublease income is de minimis. We have certain leases, primarily the leases of model homes, which have initial lease terms of twelve months or less ("Short-term leases"). We elected to exclude these leases from the recognition requirements under Topic 842, and these leases have not been included in our recognized ROU assets and lease liabilities. The components of lease expense were as follows: Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Lease expense Operating lease expense $ 8,387 $ 15,947 Finance lease expense: Amortization of ROU assets 21 21 Interest on lease liabilities 5 5 Short-term lease expense 5,640 11,245 Total lease expense $ 14,053 $ 27,218 Other information related to leases was as follows: Six Months Ended June 30, 2019 Supplemental Cash Flows Information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12,877 Operating cash flows from finance leases 5 Financing cash flows from finance leases 12 ROU assets obtained in exchange for lease obligations: Operating leases $ 9,551 Finance leases $ 5,227 Weighted-average remaining lease term (in years): Operating leases 4.7 Finance leases 7.0 Weighted-average discount rate: Operating leases 3.7 % Finance leases 3.0 % We are committed under multiple non-cancelable operating and finance leases involving office space, production facilities, model homes, office and production equipment, and automobiles. Future minimum lease payments under these leases as of June 30, 2019 were as follows: Years Ending December 31, Operating Leases Finance Leases 2019 $ 17,125 $ 358 2020 24,719 716 2021 18,844 716 2022 14,777 716 2023 11,149 716 Thereafter 15,207 2,612 Total minimum lease payments 101,821 5,834 Less: Imputed interest (8,591 ) (618 ) Short-term lease payments (5,899 ) — Total lease liability $ 87,331 $ 5,216 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate for the three and six months ended June 30, 2019 was 14.1% and 14.0% , respectively, compared to 15.9% and 14.6% for the three and six months ended June 30, 2018 , respectively. In both periods, our effective tax rate was favorably impacted by the recognition of income tax benefits related to excess tax benefits from stock option exercises. Excess tax benefits were $30,727 and $59,205 for the three and six months ended June 30, 2019 , respectively and $26,456 and $46,022 for the three and six months ended June 30, 2018 , respectively. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the 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 us as of January 1, 2020. We do not believe that the adoption of this standard will have a material effect on our consolidated financial statements and related disclosures. In January 2017, the 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 us on January 1, 2020, and early adoption is permitted. We do not believe that the adoption of this standard will have a material effect on our consolidated financial statements and related disclosures. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements On January 1, 2019, we adopted ASU 2016-02, Leases (Topic 842) , which requires the recognition of our leases on the balance sheet as right-of-use ("ROU") assets and lease liabilities. We elected to adopt Topic 842 using the effective date transition method, which permits us to apply the new standard prospectively and present comparative years under legacy GAAP. In adoption of the standard, we also elected the following: • to apply the package of practical expedients during transition, under which we were not required to reassess as of the date of adoption (i) whether any of our contracts are or contain leases, (ii) the classifications of our leases, and (iii) any initial direct costs related to those leases. • to exclude leases with an initial lease term of 12 months or less from the recognition requirements under Topic 842. • to utilize the portfolio approach for certain office equipment leases, grouping leases by asset type which have similar lease terms and payment schedules. Upon adoption, on January 1, 2019 we recorded a lease liability of $85,516 and a ROU asset of $79,345 In June 2016, the 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 us as of January 1, 2020. We do not believe that the adoption of this standard will have a material effect on our consolidated financial statements and related disclosures. In January 2017, the 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 us on January 1, 2020, and early adoption is permitted. We do not believe that the adoption of this standard will have a material effect on our consolidated financial statements and related disclosures. |
Variable Interest Entities ("_2
Variable Interest Entities ("VIEs") (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure [Abstract] | |
Total Risk of Loss Related to Contract Land Deposits | Our total risk of loss related to contract land deposits as of June 30, 2019 and December 31, 2018 was as follows: June 30, 2019 December 31, 2018 Contract land deposits $ 437,646 $ 425,393 Loss reserve on contract land deposits (27,892 ) (29,216 ) Contract land deposits, net 409,754 396,177 Contingent obligations in the form of letters of credit 4,044 3,923 Specific performance obligations (1) 1,505 1,505 Total risk of loss $ 415,303 $ 401,605 (1) As of both June 30, 2019 and December 31, 2018 , we were committed to purchase 10 finished lots under specific performance obligations. |
Capitalized Interest (Tables)
Capitalized Interest (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Capitalized Interest Costs, Including Allowance for Funds Used During Construction [Abstract] | |
Summary of Interest Costs Incurred, Capitalized, Expensed and Charged to Cost of Sales | The following table reflects the changes in our capitalized interest during the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Interest capitalized, beginning of period $ 4,140 $ 5,545 $ 4,154 $ 5,583 Interest incurred 6,607 6,624 13,106 13,220 Interest charged to interest expense (6,301 ) (6,329 ) (12,516 ) (12,611 ) Interest charged to cost of sales (592 ) (452 ) (890 ) (804 ) Interest capitalized, end of period $ 3,854 $ 5,388 $ 3,854 $ 5,388 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [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 three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Weighted average number of shares outstanding used to calculate basic EPS 3,612 3,635 3,610 3,655 Dilutive securities: Stock options and restricted share units 347 507 352 526 Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS 3,959 4,142 3,962 4,181 |
Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following non-qualified stock options ("Options") issued under equity incentive plans were outstanding during the three and six months ended June 30, 2019 and 2018 , but were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Anti-dilutive securities 318 349 345 349 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Equity [Abstract] | ||
Summary of Changes in Shareholders' Equity | A summary of changes in shareholders’ equity for the three months ended June 30, 2019 is presented below: Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Deferred Compensation Trust Deferred Compensation Liability Total Balance, March 31, 2019 $ 206 $ 1,899,100 $ 7,219,739 $ (7,220,269 ) $ (16,912 ) $ 16,912 $ 1,898,776 Net income — — 210,209 — — — 210,209 Deferred compensation activity, net — — — — — — — Purchase of common stock for treasury — — — (87,980 ) — — (87,980 ) Equity-based compensation — 18,577 — — — — 18,577 Proceeds from Options exercised — 79,857 — — — — 79,857 Treasury stock issued upon option exercise and restricted share vesting — (35,378 ) — 35,378 — — — Balance, June 30, 2019 $ 206 $ 1,962,156 $ 7,429,948 $ (7,272,871 ) $ (16,912 ) $ 16,912 $ 2,119,439 A summary of changes in shareholders’ equity for the six months ended June 30, 2019 is presented below: Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Deferred Compensation Trust Deferred Compensation Liability Total Balance, December 31, 2018 $ 206 $ 1,820,223 $ 7,031,333 $ (7,043,200 ) $ (16,937 ) $ 16,937 $ 1,808,562 Net income — — 398,615 — — — 398,615 Deferred compensation activity, net — — — — 25 (25 ) — Purchase of common stock for treasury — — — (304,479 ) — — (304,479 ) Equity-based compensation — 37,910 — — — — 37,910 Proceeds from Options exercised — 178,831 — — — — 178,831 Treasury stock issued upon option exercise and restricted share vesting — (74,808 ) — 74,808 — — — Balance, June 30, 2019 $ 206 $ 1,962,156 $ 7,429,948 $ (7,272,871 ) $ (16,912 ) $ 16,912 $ 2,119,439 | A summary of changes in shareholders’ equity for the three months ended June 30, 2018 is presented below: Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Deferred Compensation Trust Deferred Compensation Liability Total Balance, March 31, 2018 $ 206 $ 1,678,100 $ 6,400,185 $ (6,611,683 ) $ (17,389 ) $ 17,389 $ 1,466,808 Net income — — 203,174 — — — 203,174 Deferred compensation activity, net — — — — 241 (241 ) — Purchase of common stock for treasury — — — (126,296 ) — — (126,296 ) Equity-based compensation — 18,595 — — — — 18,595 Proceeds from Options exercised — 45,290 — — — — 45,290 Treasury stock issued upon option exercise and restricted share vesting — (20,289 ) — 20,289 — — — Balance, June 30, 2018 $ 206 $ 1,721,696 $ 6,603,359 $ (6,717,690 ) $ (17,148 ) $ 17,148 $ 1,607,571 A summary of changes in shareholders’ equity for the six months ended June 30, 2018 is presented below: Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Deferred Compensation Trust Deferred Compensation Liability Total Balance, December 31, 2017 $ 206 $ 1,644,197 $ 6,231,940 $ (6,270,851 ) $ (17,383 ) $ 17,383 $ 1,605,492 Cumulative-effect adjustment from adoption of ASU 2014-09, net of tax — — 2,196 — — — 2,196 Net income — — 369,223 — — — 369,223 Deferred compensation activity, net — — — — 235 (235 ) — Purchase of common stock for treasury — — — (483,538 ) — — (483,538 ) Equity-based compensation — 28,104 — — — — 28,104 Proceeds from Options exercised — 86,094 — — — — 86,094 Treasury stock issued upon option exercise and restricted share vesting — (36,699 ) — 36,699 — — — Balance, June 30, 2018 $ 206 $ 1,721,696 $ 6,603,359 $ (6,717,690 ) $ (17,148 ) $ 17,148 $ 1,607,571 |
Shareholders' Equity | Shareholders’ Equity A summary of changes in shareholders’ equity for the three months ended June 30, 2019 is presented below: Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Deferred Compensation Trust Deferred Compensation Liability Total Balance, March 31, 2019 $ 206 $ 1,899,100 $ 7,219,739 $ (7,220,269 ) $ (16,912 ) $ 16,912 $ 1,898,776 Net income — — 210,209 — — — 210,209 Deferred compensation activity, net — — — — — — — Purchase of common stock for treasury — — — (87,980 ) — — (87,980 ) Equity-based compensation — 18,577 — — — — 18,577 Proceeds from Options exercised — 79,857 — — — — 79,857 Treasury stock issued upon option exercise and restricted share vesting — (35,378 ) — 35,378 — — — Balance, June 30, 2019 $ 206 $ 1,962,156 $ 7,429,948 $ (7,272,871 ) $ (16,912 ) $ 16,912 $ 2,119,439 A summary of changes in shareholders’ equity for the six months ended June 30, 2019 is presented below: Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Deferred Compensation Trust Deferred Compensation Liability Total Balance, December 31, 2018 $ 206 $ 1,820,223 $ 7,031,333 $ (7,043,200 ) $ (16,937 ) $ 16,937 $ 1,808,562 Net income — — 398,615 — — — 398,615 Deferred compensation activity, net — — — — 25 (25 ) — Purchase of common stock for treasury — — — (304,479 ) — — (304,479 ) Equity-based compensation — 37,910 — — — — 37,910 Proceeds from Options exercised — 178,831 — — — — 178,831 Treasury stock issued upon option exercise and restricted share vesting — (74,808 ) — 74,808 — — — Balance, June 30, 2019 $ 206 $ 1,962,156 $ 7,429,948 $ (7,272,871 ) $ (16,912 ) $ 16,912 $ 2,119,439 We repurchased approximately 30 and 112 shares of our common stock during the three and six months ended June 30, 2019 , respectively. We settle Option exercises and vesting of RSUs by issuing shares of treasury stock. Approximately 82 and 177 shares were issued from the treasury account during the three and six months ended June 30, 2019 , respectively, in settlement of Option exercises and vesting of RSUs. Shares are relieved from the treasury account based on the weighted average cost basis of treasury shares acquired. A summary of changes in shareholders’ equity for the three months ended June 30, 2018 is presented below: Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Deferred Compensation Trust Deferred Compensation Liability Total Balance, March 31, 2018 $ 206 $ 1,678,100 $ 6,400,185 $ (6,611,683 ) $ (17,389 ) $ 17,389 $ 1,466,808 Net income — — 203,174 — — — 203,174 Deferred compensation activity, net — — — — 241 (241 ) — Purchase of common stock for treasury — — — (126,296 ) — — (126,296 ) Equity-based compensation — 18,595 — — — — 18,595 Proceeds from Options exercised — 45,290 — — — — 45,290 Treasury stock issued upon option exercise and restricted share vesting — (20,289 ) — 20,289 — — — Balance, June 30, 2018 $ 206 $ 1,721,696 $ 6,603,359 $ (6,717,690 ) $ (17,148 ) $ 17,148 $ 1,607,571 A summary of changes in shareholders’ equity for the six months ended June 30, 2018 is presented below: Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Deferred Compensation Trust Deferred Compensation Liability Total Balance, December 31, 2017 $ 206 $ 1,644,197 $ 6,231,940 $ (6,270,851 ) $ (17,383 ) $ 17,383 $ 1,605,492 Cumulative-effect adjustment from adoption of ASU 2014-09, net of tax — — 2,196 — — — 2,196 Net income — — 369,223 — — — 369,223 Deferred compensation activity, net — — — — 235 (235 ) — Purchase of common stock for treasury — — — (483,538 ) — — (483,538 ) Equity-based compensation — 28,104 — — — — 28,104 Proceeds from Options exercised — 86,094 — — — — 86,094 Treasury stock issued upon option exercise and restricted share vesting — (36,699 ) — 36,699 — — — Balance, June 30, 2018 $ 206 $ 1,721,696 $ 6,603,359 $ (6,717,690 ) $ (17,148 ) $ 17,148 $ 1,607,571 We repurchased approximately 42 and 158 shares of our common stock during the three and six months ended June 30, 2018, respectively. Approximately 52 and 96 shares were issued from the treasury account during the three and six months ended June 30, 2018, respectively, in settlement of Option exercises and vesting of RSUs. |
Product Warranties (Tables)
Product Warranties (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Product Warranties Disclosures [Abstract] | |
Summary of Changes in Product Warranties Reserve | The following table reflects the changes in our Warranty Reserve during the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Warranty reserve, beginning of period $ 102,852 $ 95,606 $ 103,700 $ 94,513 Provision 16,446 16,217 28,269 27,744 Payments (18,639 ) (12,121 ) (31,310 ) (22,555 ) Warranty reserve, end of period $ 100,659 $ 99,702 $ 100,659 $ 99,702 |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Revenues | The f ollowing tables present segment revenues, profit and assets with reconciliations to the amounts reported for the consolidated enterprise, where applicable: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Revenues: Homebuilding Mid Atlantic $ 982,032 $ 973,677 $ 1,863,356 $ 1,816,173 Homebuilding North East 121,804 147,618 244,431 270,332 Homebuilding Mid East 359,908 363,288 698,457 653,525 Homebuilding South East 293,704 265,880 594,410 500,526 Mortgage Banking 42,746 36,842 86,551 76,163 Total consolidated revenues $ 1,800,194 $ 1,787,305 $ 3,487,205 $ 3,316,719 |
Profit before Taxes | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Income before taxes: Homebuilding Mid Atlantic $ 123,802 $ 112,221 $ 223,166 $ 203,268 Homebuilding North East 11,563 16,777 23,023 32,481 Homebuilding Mid East 40,291 42,174 75,766 69,385 Homebuilding South East 30,825 29,203 65,861 52,440 Mortgage Banking 26,173 19,685 55,731 42,235 Total segment profit before taxes 232,654 220,060 443,547 399,809 Reconciling items: Equity-based compensation expense (1) (18,577 ) (18,595 ) (37,910 ) (28,104 ) Corporate capital allocation (2) 56,177 53,954 110,735 104,653 Unallocated corporate overhead (29,354 ) (22,503 ) (61,089 ) (53,787 ) Consolidation adjustments and other 9,836 14,701 20,034 22,031 Corporate interest expense (6,024 ) (6,031 ) (11,998 ) (12,018 ) Reconciling items sub-total 12,058 21,526 19,772 32,775 Consolidated income before taxes $ 244,712 $ 241,586 $ 463,319 $ 432,584 (1) The increase in equity-based compensation expense for the six-month period ended June 30, 2019 was primarily attributable to the equity grant in the second quarter of 2018. (2) This item represents the elimination of the corporate capital allocation charge included in the respective homebuilding reportable segments. The corporate capital allocation charge is based on the segment’s monthly average asset balance, and was as follows for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Corporate capital allocation charge: Homebuilding Mid Atlantic $ 31,378 $ 31,501 $ 61,794 $ 61,949 Homebuilding North East 4,626 4,580 9,353 8,760 Homebuilding Mid East 9,497 9,057 18,512 17,030 Homebuilding South East 10,676 8,816 21,076 16,914 Total $ 56,177 $ 53,954 $ 110,735 $ 104,653 |
Assets | June 30, 2019 December 31, 2018 Assets: Homebuilding Mid Atlantic $ 1,082,646 $ 1,018,953 Homebuilding North East 154,143 144,412 Homebuilding Mid East 330,446 290,815 Homebuilding South East 380,499 332,468 Mortgage Banking 537,496 517,075 Total segment assets 2,485,230 2,303,723 Reconciling items: Cash and cash equivalents 860,956 688,783 Deferred taxes 115,432 112,333 Intangible assets and goodwill 49,911 49,989 Operating lease right-of-use assets 65,027 — Contract land deposit reserve (27,892 ) (29,216 ) Consolidation adjustments and other 54,576 40,321 Reconciling items sub-total 1,118,010 862,210 Consolidated assets $ 3,603,240 $ 3,165,933 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Undesignated Derivative Instruments | The fair value measurement of NVRM's undesignated derivative instruments was as follows: June 30, 2019 December 31, 2018 Rate lock commitments: Gross assets $ 19,151 $ 13,831 Gross liabilities 199 345 Net rate lock commitments $ 18,952 $ 13,486 Forward sales contracts: Gross assets $ 215 $ 64 Gross liabilities 6,850 10,121 Net forward sales contracts $ (6,635 ) $ (10,057 ) |
Fair Value Measurement | The fair value measurement adjustment as of June 30, 2019 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 $ 878,701 $ 4,796 $ 5,231 $ 8,925 $ — $ 18,952 Forward sales contracts $ 1,169,844 — — — (6,635 ) (6,635 ) Mortgages held for sale $ 449,148 3,080 5,231 5,234 — 13,545 Total fair value measurement $ 7,876 $ 10,462 $ 14,159 $ (6,635 ) $ 25,862 |
Leases Leases (Tables)
Leases Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Lessee, Lease, Description [Line Items] | |
Lease, Cost [Table Text Block] | The components of lease expense were as follows: Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Lease expense Operating lease expense $ 8,387 $ 15,947 Finance lease expense: Amortization of ROU assets 21 21 Interest on lease liabilities 5 5 Short-term lease expense 5,640 11,245 Total lease expense $ 14,053 $ 27,218 Other information related to leases was as follows: Six Months Ended June 30, 2019 Supplemental Cash Flows Information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 12,877 Operating cash flows from finance leases 5 Financing cash flows from finance leases 12 ROU assets obtained in exchange for lease obligations: Operating leases $ 9,551 Finance leases $ 5,227 Weighted-average remaining lease term (in years): Operating leases 4.7 Finance leases 7.0 Weighted-average discount rate: Operating leases 3.7 % Finance leases 3.0 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | We are committed under multiple non-cancelable operating and finance leases involving office space, production facilities, model homes, office and production equipment, and automobiles. Future minimum lease payments under these leases as of June 30, 2019 were as follows: Years Ending December 31, Operating Leases Finance Leases 2019 $ 17,125 $ 358 2020 24,719 716 2021 18,844 716 2022 14,777 716 2023 11,149 716 Thereafter 15,207 2,612 Total minimum lease payments 101,821 5,834 Less: Imputed interest (8,591 ) (618 ) Short-term lease payments (5,899 ) — Total lease liability $ 87,331 $ 5,216 |
Finance Lease, Liability, Maturity [Table Text Block] | We are committed under multiple non-cancelable operating and finance leases involving office space, production facilities, model homes, office and production equipment, and automobiles. Future minimum lease payments under these leases as of June 30, 2019 were as follows: Years Ending December 31, Operating Leases Finance Leases 2019 $ 17,125 $ 358 2020 24,719 716 2021 18,844 716 2022 14,777 716 2023 11,149 716 Thereafter 15,207 2,612 Total minimum lease payments 101,821 5,834 Less: Imputed interest (8,591 ) (618 ) Short-term lease payments (5,899 ) — Total lease liability $ 87,331 $ 5,216 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating Lease, Liability | $ 87,331 | $ 85,516 | |||
Cumulative-effect adjustment from adoption of ASU 2014-09, net of tax | $ 2,196 | ||||
Operating Lease, Right-of-Use Asset | $ 79,345 | ||||
Retained Earnings [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative-effect adjustment from adoption of ASU 2014-09, net of tax | 2,196 | ||||
Other Assets [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Contract cost | 18,100 | $ 17,000 | |||
Home Building [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating Lease, Liability | 72,360 | 0 | |||
Customer deposits | 146,207 | 138,246 | |||
Restricted cash and cash equivalents | 20,403 | 16,982 | |||
Operating Lease, Right-of-Use Asset | 65,027 | 0 | |||
Consolidated Joint Venture [Member] | Home Building [Member] | Other Assets [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Restricted cash and cash equivalents | $ 294 | $ 320 | $ 1,128 | $ 1,069 |
Variable Interest Entities ("_3
Variable Interest Entities ("VIEs") - Additional Information (Detail) $ in Thousands | Jun. 30, 2019USD ($)lot | Dec. 31, 2018USD ($) |
Variable Interest Entity [Line Items] | ||
Contract land deposits in cash | $ 437,646 | $ 425,393 |
Variable Interest Entities [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum range of deposits required under the purchase agreements | 10.00% | |
Power of developers equity holders to direct operating activities of development entity | 100.00% | |
Lots controlled by NVR | lot | 97,650 | |
Contract land deposits in cash under lot purchase Agreements | $ 435,900 | |
Letters of credit related to lots | $ 3,900 | |
Contract on Raw Ground with Landowners [Member] | ||
Variable Interest Entity [Line Items] | ||
Lots controlled by NVR | lot | 7,400 | |
Contract land deposits in cash | $ 1,700 | |
Letters of credit related to land contract | 100 | |
Refundable deposits and letters of credit | $ 1,400 |
Variable Interest Entities ("_4
Variable Interest Entities ("VIEs") - Total Risk of Loss Related to Contract Land Deposits (Detail) $ in Thousands | Jun. 30, 2019USD ($)lot | Dec. 31, 2018USD ($)lot |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure [Abstract] | ||
Contract land deposits | $ 437,646 | $ 425,393 |
Loss reserve on contract land deposits | (27,892) | (29,216) |
Contract land deposits, net | 409,754 | 396,177 |
Contingent obligations in the form of letters of credit | 4,044 | 3,923 |
Specific performance obligations | 1,505 | 1,505 |
Total risk of loss | $ 415,303 | $ 401,605 |
Finished lots committed to purchase under specific performance obligations | lot | 10 | 10 |
Joint Ventures - Additional Inf
Joint Ventures - Additional Information (Detail) $ in Thousands | Jun. 30, 2019USD ($)joint_venturelot | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Joint Ventures [Line Items] | ||||
Aggregate investment | $ 25,000 | |||
Number of joint ventures | joint_venture | 6 | |||
Expected production of finished lots | lot | 6,600 | |||
Total lots controlled by company under the joint venture | lot | 3,200 | |||
Total lots either under contract with unrelated parties or not under the current contract | lot | 3,400 | |||
Additional funding commitments in the aggregate | $ 4,700 | |||
Number of joint ventures with additional funding commitment | joint_venture | 3 | |||
Number of joint ventures NVR is not primary beneficiary | joint_venture | 5 | |||
Other Assets [Member] | ||||
Joint Ventures [Line Items] | ||||
Aggregate investment | $ 25,000 | $ 29,400 | ||
Home Building [Member] | ||||
Joint Ventures [Line Items] | ||||
Restricted cash and cash equivalents | 20,403 | 16,982 | ||
Accrued expenses and other liabilities | 299,466 | 332,871 | ||
Consolidated Joint Venture [Member] | Home Building [Member] | Other Assets [Member] | ||||
Joint Ventures [Line Items] | ||||
Restricted cash and cash equivalents | 294 | $ 320 | $ 1,128 | $ 1,069 |
Consolidated Joint Venture [Member] | Home Building [Member] | Accounts Payable and Accrued Liabilities [Member] | ||||
Joint Ventures [Line Items] | ||||
Accrued expenses and other liabilities | $ 264 |
Land Under Development - Additi
Land Under Development - Additional Information (Detail) $ in Thousands | Jun. 30, 2019USD ($)parcellot |
Real Estate [Abstract] | |
Number of raw parcels of land owned | parcel | 4 |
Carrying value of raw parcels of land | $ 46,725 |
Number of finished lots expected to be developed from raw parcels of land | lot | 550 |
Aggregate additional funding commitments related to raw land property under joint development | $ 6,000 |
Expected development credits that will offset the aggregate additional funding commitments related to raw land property development | $ 3,300 |
Capitalized Interest - Summary
Capitalized Interest - Summary of Interest Costs Incurred, Capitalized, Expensed and Charged to Cost of Sales (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Capitalized Interest Costs, Including Allowance for Funds Used During Construction [Roll Forward] | ||||
Interest capitalized, beginning of period | $ 4,140 | $ 5,545 | $ 4,154 | $ 5,583 |
Interest incurred | 6,607 | 6,624 | 13,106 | 13,220 |
Interest expense | (6,301) | (6,329) | (12,516) | (12,611) |
Interest charged to cost of sales | (592) | (452) | (890) | (804) |
Interest capitalized, end of period | $ 3,854 | $ 5,388 | $ 3,854 | $ 5,388 |
Earnings Per Share - Weighted A
Earnings Per Share - Weighted Average Shares and Share Equivalents Used to Calculate Basic and Diluted Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Weighted average number of shares outstanding used to calculate basic EPS (in shares) | 3,612 | 3,635 | 3,610 | 3,655 |
Dilutive securities: | ||||
Stock options and restricted share units (in shares) | 347 | 507 | 352 | 526 |
Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS (in shares) | 3,959 | 4,142 | 3,962 | 4,181 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive securities (in shares) | 318 | 349 | 345 | 349 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Changes in Shareholders' Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | $ 1,898,776 | $ 1,466,808 | $ 1,808,562 | $ 1,605,492 | |
Cumulative-effect adjustment from adoption of ASU 2014-09, net of tax | $ 2,196 | ||||
Net income | 210,209 | 203,174 | 398,615 | 369,223 | |
Purchase of common stock for treasury | (87,980) | (126,296) | (304,479) | (483,538) | |
Equity-based compensation | 18,577 | 18,595 | 37,910 | 28,104 | |
Proceeds from Options exercised | 79,857 | 45,290 | 178,831 | 86,094 | |
Ending Balance | 2,119,439 | 1,607,571 | 2,119,439 | 1,607,571 | |
Common Stock [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | 206 | 206 | 206 | 206 | |
Ending Balance | 206 | 206 | 206 | 206 | |
Additional Paid-In-Capital [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | 1,899,100 | 1,678,100 | 1,820,223 | 1,644,197 | |
Equity-based compensation | 18,577 | 18,595 | 37,910 | 28,104 | |
Proceeds from Options exercised | 79,857 | 45,290 | 178,831 | 86,094 | |
Treasury stock issued upon option exercise and restricted share vesting | (35,378) | (20,289) | (74,808) | (36,699) | |
Ending Balance | 1,962,156 | 1,721,696 | 1,962,156 | 1,721,696 | |
Retained Earnings [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | 7,219,739 | 6,400,185 | 7,031,333 | 6,231,940 | |
Cumulative-effect adjustment from adoption of ASU 2014-09, net of tax | $ 2,196 | ||||
Net income | 210,209 | 203,174 | 398,615 | 369,223 | |
Ending Balance | 7,429,948 | 6,603,359 | 7,429,948 | 6,603,359 | |
Treasury Stock [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | (7,220,269) | (6,611,683) | (7,043,200) | (6,270,851) | |
Purchase of common stock for treasury | (87,980) | (126,296) | (304,479) | (483,538) | |
Treasury stock issued upon option exercise and restricted share vesting | 35,378 | 20,289 | 74,808 | 36,699 | |
Ending Balance | (7,272,871) | (6,717,690) | (7,272,871) | (6,717,690) | |
Deferred Compensation Trust [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | (16,912) | (17,389) | (16,937) | (17,383) | |
Deferred compensation activity, net | 0 | 241 | 25 | 235 | |
Ending Balance | (16,912) | (17,148) | (16,912) | (17,148) | |
Deferred Compensation Liability [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Beginning Balance | 16,912 | 17,389 | 16,937 | 17,383 | |
Deferred compensation activity, net | 0 | (241) | (25) | (235) | |
Ending Balance | $ 16,912 | $ 17,148 | $ 16,912 | $ 17,148 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity [Abstract] | ||||
Common stock repurchased (in shares) | 30 | 42 | 112 | 158 |
Reissued shares during the period, shares (in shares) | 82 | 52 | 177 | 96 |
Product Warranties Product Warr
Product Warranties Product Warranties - Schedule of Product Warranties Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||||
Warranty reserve, beginning of period | $ 102,852 | $ 95,606 | $ 103,700 | $ 94,513 |
Provision | 16,446 | 16,217 | 28,269 | 27,744 |
Payments | (18,639) | (12,121) | (31,310) | (22,555) |
Warranty reserve, end of period | $ 100,659 | $ 99,702 | $ 100,659 | $ 99,702 |
Segment Disclosures - Additiona
Segment Disclosures - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019segment | |
Senior Notes due 2022 [Member] | |
Segment Reporting Information [Line Items] | |
Senior notes interest rate | 3.95% |
Home Building [Member] | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 4 |
Mortgage Banking [Member] | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 1 |
Segment Disclosures - Revenues
Segment Disclosures - Revenues (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 1,800,194 | $ 1,787,305 | $ 3,487,205 | $ 3,316,719 |
Home Building [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 1,757,448 | 1,750,463 | 3,400,654 | 3,240,556 |
Home Building [Member] | Mid Atlantic [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 982,032 | 973,677 | 1,863,356 | 1,816,173 |
Home Building [Member] | North East [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 121,804 | 147,618 | 244,431 | 270,332 |
Home Building [Member] | Mid East [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 359,908 | 363,288 | 698,457 | 653,525 |
Home Building [Member] | South East [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 293,704 | 265,880 | 594,410 | 500,526 |
Mortgage Banking [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | $ 42,746 | $ 36,842 | $ 86,551 | $ 76,163 |
Segment Disclosures - Income be
Segment Disclosures - Income before Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income before taxes | $ 244,712 | $ 241,586 | $ 463,319 | $ 432,584 |
Equity-based compensation expense (1) | (37,910) | (28,104) | ||
Corporate interest expense | (6,301) | (6,329) | (12,516) | (12,611) |
Home Building [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income before taxes | 219,650 | 223,266 | 408,060 | 391,836 |
Corporate interest expense | (6,033) | (6,047) | (12,026) | (12,054) |
Mortgage Banking [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income before taxes | 25,062 | 18,320 | 55,259 | 40,748 |
Corporate interest expense | (268) | (282) | (490) | (557) |
Operating Segments [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income before taxes | 232,654 | 220,060 | 443,547 | 399,809 |
Operating Segments [Member] | Home Building [Member] | Mid Atlantic [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income before taxes | 123,802 | 112,221 | 223,166 | 203,268 |
Operating Segments [Member] | Home Building [Member] | North East [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income before taxes | 11,563 | 16,777 | 23,023 | 32,481 |
Operating Segments [Member] | Home Building [Member] | Mid East [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income before taxes | 40,291 | 42,174 | 75,766 | 69,385 |
Operating Segments [Member] | Home Building [Member] | South East [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income before taxes | 30,825 | 29,203 | 65,861 | 52,440 |
Operating Segments [Member] | Mortgage Banking [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income before taxes | 26,173 | 19,685 | 55,731 | 42,235 |
Corporate and Reconciling Items [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Income before taxes | 12,058 | 21,526 | 19,772 | 32,775 |
Equity-based compensation expense (1) | (18,577) | (18,595) | (37,910) | (28,104) |
Corporate capital allocation | 56,177 | 53,954 | 110,735 | 104,653 |
Unallocated corporate overhead | (29,354) | (22,503) | (61,089) | (53,787) |
Consolidation adjustments and other | 9,836 | 14,701 | 20,034 | 22,031 |
Corporate interest expense | (6,024) | (6,031) | (11,998) | (12,018) |
Corporate and Reconciling Items [Member] | Home Building [Member] | Mid Atlantic [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Corporate capital allocation | 31,378 | 31,501 | 61,794 | 61,949 |
Corporate and Reconciling Items [Member] | Home Building [Member] | North East [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Corporate capital allocation | 4,626 | 4,580 | 9,353 | 8,760 |
Corporate and Reconciling Items [Member] | Home Building [Member] | Mid East [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Corporate capital allocation | 9,497 | 9,057 | 18,512 | 17,030 |
Corporate and Reconciling Items [Member] | Home Building [Member] | South East [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Corporate capital allocation | $ 10,676 | $ 8,816 | $ 21,076 | $ 16,914 |
Segment Disclosures - Corporate
Segment Disclosures - Corporate Capital Allocation Charge (Detail) - Corporate and Reconciling Items [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Corporate capital allocation charge | $ 56,177 | $ 53,954 | $ 110,735 | $ 104,653 |
Home Building [Member] | Mid Atlantic [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Corporate capital allocation charge | 31,378 | 31,501 | 61,794 | 61,949 |
Home Building [Member] | North East [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Corporate capital allocation charge | 4,626 | 4,580 | 9,353 | 8,760 |
Home Building [Member] | Mid East [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Corporate capital allocation charge | 9,497 | 9,057 | 18,512 | 17,030 |
Home Building [Member] | South East [Member] | ||||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||||
Corporate capital allocation charge | $ 10,676 | $ 8,816 | $ 21,076 | $ 16,914 |
Segment Disclosures - Assets (D
Segment Disclosures - Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | $ 3,603,240 | $ 3,165,933 | |
Operating Lease, Right-of-Use Asset | $ 79,345 | ||
Contract land deposit reserve | (27,892) | (29,216) | |
Home Building [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 3,058,397 | 2,641,511 | |
Cash and cash equivalents | 860,956 | 688,783 | |
Operating Lease, Right-of-Use Asset | 65,027 | 0 | |
Mortgage Banking [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 544,843 | 524,422 | |
Cash and cash equivalents | 21,363 | 23,092 | |
Operating Lease, Right-of-Use Asset | 14,078 | 0 | |
Operating Segments [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 2,485,230 | 2,303,723 | |
Operating Segments [Member] | Home Building [Member] | Mid Atlantic [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 1,082,646 | 1,018,953 | |
Operating Segments [Member] | Home Building [Member] | North East [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 154,143 | 144,412 | |
Operating Segments [Member] | Home Building [Member] | Mid East [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 330,446 | 290,815 | |
Operating Segments [Member] | Home Building [Member] | South East [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 380,499 | 332,468 | |
Operating Segments [Member] | Mortgage Banking [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 537,496 | 517,075 | |
Corporate and Reconciling Items [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Total assets | 1,118,010 | 862,210 | |
Cash and cash equivalents | 860,956 | 688,783 | |
Deferred taxes | 115,432 | 112,333 | |
Intangible assets and goodwill | 49,911 | 49,989 | |
Operating Lease, Right-of-Use Asset | 65,027 | 0 | |
Contract land deposit reserve | (27,892) | (29,216) | |
Consolidation adjustments and other | $ 54,576 | $ 40,321 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total fair value measurement gain/(loss) | $ 25,862 | $ 14,309 | |||
Home Building [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Senior Notes carrying value | $ 597,991 | 597,991 | 597,681 | ||
Home Building [Member] | Senior Notes due 2022 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Senior Notes carrying value | 597,991 | 597,991 | 597,681 | ||
Home Building [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Senior Notes due 2022 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Senior Notes fair value | 619,500 | 619,500 | 594,000 | ||
Mortgage Banking [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Trade and Loans Receivables Held-for-sale, Net, Not Part of Disposal Group | 462,693 | 462,693 | 458,324 | ||
Mortgage Banking [Member] | Level 2 [Member] | Not Designated as Hedging Instrument [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value adjustment income (expense) | 2,644 | $ 5,585 | 11,553 | $ 9,599 | |
Mortgage Banking [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Rate Lock Commitments [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Notional or Principal Amount | 878,701 | 878,701 | |||
Total fair value measurement gain/(loss) | 18,952 | ||||
Mortgage Banking [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Forward Sales Contracts [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Notional or Principal Amount | 1,169,844 | 1,169,844 | |||
Total fair value measurement gain/(loss) | (6,635) | ||||
Mortgage Banking [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgages Held for Sale [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Notional or Principal Amount | 449,148 | 449,148 | 447,444 | ||
Trade and Loans Receivables Held-for-sale, Net, Not Part of Disposal Group | $ 462,693 | 462,693 | $ 458,324 | ||
Total fair value measurement gain/(loss) | $ 13,545 | $ 10,880 |
Fair Value - Undesignated Deriv
Fair Value - Undesignated Derivative Instruments (Detail) - Other Assets [Member] - Mortgage Banking [Member] - Level 2 [Member] - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Rate Lock Commitments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross assets | $ 19,151 | $ 13,831 |
Gross liabilities | 199 | 345 |
Net rate lock commitments and forward sales contracts | 18,952 | 13,486 |
Forward Sales Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross assets | 215 | 64 |
Gross liabilities | 6,850 | 10,121 |
Net rate lock commitments and forward sales contracts | $ (6,635) | $ (10,057) |
Fair Value - Fair Value Measure
Fair Value - Fair Value Measurement (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assumed Gain/(Loss) From Loan Sale | $ 7,876 | ||
Interest Rate Movement Effect | 10,462 | ||
Servicing Rights Value | 14,159 | ||
Security Price Change | (6,635) | ||
Total Fair Value Measurement Gain/(Loss) | 25,862 | $ 14,309 | |
Mortgage Banking [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Rate Lock Commitments [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional or Principal Amount | 878,701 | ||
Assumed Gain/(Loss) From Loan Sale | 4,796 | ||
Interest Rate Movement Effect | 5,231 | ||
Servicing Rights Value | 8,925 | ||
Total Fair Value Measurement Gain/(Loss) | 18,952 | ||
Mortgage Banking [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Forward Sales Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional or Principal Amount | 1,169,844 | ||
Security Price Change | (6,635) | ||
Total Fair Value Measurement Gain/(Loss) | (6,635) | ||
Mortgage Banking [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgages Held for Sale [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Notional or Principal Amount | 449,148 | $ 447,444 | |
Assumed Gain/(Loss) From Loan Sale | 3,080 | ||
Interest Rate Movement Effect | 5,231 | ||
Servicing Rights Value | 5,234 | ||
Total Fair Value Measurement Gain/(Loss) | $ 13,545 | $ 10,880 |
Debt - Additional Information (
Debt - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Senior Notes due 2022 [Member] | |
Debt Instrument [Line Items] | |
Senior notes principal amount | $ 600,000,000 |
Senior notes interest rate | 3.95% |
Frequency of senior notes payment | semi-annually in arrears on March 15 and September 15 |
Senior notes effective interest rate | 3.97% |
Credit Agreement [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Maximum loan borrowing capacity | $ 200,000,000 |
Increase in commitment available | 300,000,000 |
Debt outstanding | 0 |
Credit Agreement [Member] | Revolving Credit Facility [Member] | Sublimit for Issuance of Letters of Credit [Member] | |
Debt Instrument [Line Items] | |
Maximum loan borrowing capacity | 100,000,000 |
Letters of credit outstanding | 9,000,000 |
Credit Agreement [Member] | Revolving Credit Facility [Member] | Sublimit for Swing Line Commitment [Member] | |
Debt Instrument [Line Items] | |
Maximum loan borrowing capacity | 25,000,000 |
Repurchase Agreement [Member] | Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Maximum loan borrowing capacity | 150,000,000 |
Debt outstanding | 0 |
Borrowing base limitations | $ 0 |
Leases Lease Expense (Details)
Leases Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Expense | $ 8,387 | $ 15,947 |
Finance Lease, Right-of-Use Asset, Amortization | 21 | 21 |
Finance Lease, Interest Expense | 5 | 5 |
Short-term Lease Payments | 5,640 | 11,245 |
Lease, Cost | $ 14,053 | $ 27,218 |
Leases Leases - Supplemental In
Leases Leases - Supplemental Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Leases [Abstract] | ||
Operating Lease, Payments | $ 12,877 | |
Finance Lease, Interest Expense | 5 | |
Finance Lease, Principal Payments | 12 | $ 0 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 9,551 | |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 5,227 | |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 8 months 12 days | |
Finance Lease, Weighted Average Remaining Lease Term | 7 years | |
Operating Lease, Weighted Average Discount Rate, Percent | 3.70% | |
Finance Lease, Weighted Average Discount Rate, Percent | 3.00% |
Leases Leases (Details)
Leases Leases (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | $ 24,719 | |
Lessee, Operating Lease, Liability, Payments, Due Year Three | 18,844 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 14,777 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 11,149 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 15,207 | |
Lessee, Operating Lease, Liability, Payments, Due | 101,821 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (8,591) | |
Operating Lease, Liability | $ 87,331 | $ 85,516 |
Lessee, Operating Lease, Option to Extend | P10Y | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | $ 17,125 | |
Lessee, Operating Lease, Term of Contract | 10 years | |
Finance Lease, Liability, Payments, Remainder of Fiscal Year | $ 358 | |
Finance Lease, Liability, Payments, Due Year Two | 716 | |
Finance Lease, Liability, Payments, Due Year Three | 716 | |
Finance Lease, Liability, Payments, Due Year Four | 716 | |
Finance Lease, Liability, Payments, Due Year Five | 716 | |
Finance Lease, Liability, Payments, Due after Year Five | 2,612 | |
Finance Lease, Liability, Payments, Due | 5,834 | |
Finance Lease, Liability, Undiscounted Excess Amount | (618) | |
Finance Lease, Liability | 5,216 | |
Operating Leases [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Short-term Lease Commitment, Amount | (5,899) | |
Finance Leases [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Short-term Lease Commitment, Amount | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax [Line Items] | ||||
Effective tax rate | 14.10% | 15.90% | 14.00% | 14.60% |
Income tax expense (benefit) | $ 34,503 | $ 38,412 | $ 64,704 | $ 63,361 |
Excess tax benefit recognized | $ 30,727 | $ 26,456 | $ 59,205 | $ 46,022 |