Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 29, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Entity Registrant Name | 'NVR INC | ' |
Entity Central Index Key | '0000906163 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 4,420,706 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $879,323 | $866,253 |
Mortgage loans held for sale, net | 123,833 | ' |
Inventory: | ' | ' |
Land under development | 46,083 | ' |
Assets related to consolidated variable interest entity | 6,588 | 7,268 |
Contract land deposits, net | 246,204 | 236,885 |
Total assets | 2,524,753 | 2,486,148 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ' | ' |
Non-recourse debt related to consolidated variable interest entity | 2,153 | 3,365 |
Total liabilities | 1,198,671 | 1,224,796 |
Commitments and contingencies | ' | ' |
Shareholders' equity: | ' | ' |
Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares issued as of both March 31, 2014 and December 31, 2013 | 206 | 206 |
Additional paid-in-capital | 1,259,410 | 1,212,050 |
Deferred compensation trust - 109,256 shares of NVR, Inc. common stock as of both March 31, 2014 and December 31, 2013 | -17,741 | -17,741 |
Deferred compensation liability | 17,741 | 17,741 |
Retained earnings | 4,629,406 | 4,605,557 |
Less treasury stock at cost - 16,061,912 and 16,121,605 shares at March 31, 2014 and December 31, 2013, respectively | -4,562,940 | -4,556,461 |
Total shareholders' equity | 1,326,082 | 1,261,352 |
Total liabilities and shareholders' equity | 2,524,753 | 2,486,148 |
Homebuilding [Member] | ' | ' |
ASSETS | ' | ' |
Cash and cash equivalents | 874,062 | 844,274 |
Receivables | 10,055 | 9,529 |
Inventory: | ' | ' |
Lots and housing units, covered under sales agreements with customers | 687,080 | 568,831 |
Unsold lots and housing units | 98,478 | 117,467 |
Land under development | 46,083 | 41,328 |
Building materials and other | 10,357 | 10,939 |
Total Inventory | 841,998 | 738,565 |
Assets related to consolidated variable interest entity | 6,588 | 7,268 |
Contract land deposits, net | 246,204 | 236,885 |
Property, plant and equipment, net | 34,321 | 32,599 |
Reorganization value in excess of amounts allocable to identifiable assets, net | 41,580 | 41,580 |
Goodwill and finite-lived intangible assets, net | 6,401 | 6,747 |
Other assets | 311,684 | 307,933 |
Total assets | 2,372,893 | 2,225,380 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ' | ' |
Accounts payable | 186,459 | 181,687 |
Accrued expenses and other liabilities | 271,875 | 316,227 |
Liabilities related to consolidated variable interest entity | 1,689 | 1,646 |
Non-recourse debt related to consolidated variable interest entity | 2,153 | 3,365 |
Customer deposits | 119,101 | 101,022 |
Senior notes | 599,098 | 599,075 |
Total liabilities | 1,180,375 | 1,203,022 |
Mortgage Banking [Member] | ' | ' |
ASSETS | ' | ' |
Cash and cash equivalents | 4,477 | 21,311 |
Mortgage loans held for sale, net | 123,833 | 210,641 |
Inventory: | ' | ' |
Property, plant and equipment, net | 4,999 | 4,699 |
Reorganization value in excess of amounts allocable to identifiable assets, net | 7,347 | 7,347 |
Other assets | 11,204 | 16,770 |
Total assets | 151,860 | 260,768 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ' | ' |
Accounts payable and other liabilities | 18,296 | 21,774 |
Total liabilities | $18,296 | $21,774 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Statement Of Financial Position [Abstract] | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 20,555,330 | 20,555,330 |
Deferred compensation trust, shares | 109,256 | 109,256 |
Treasury stock, shares | 16,061,912 | 16,121,605 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest expense | ($5,794) | ($5,566) |
Income before taxes | 49,707 | 55,105 |
Income tax expense | -25,858 | -20,064 |
Net income | 23,849 | 35,041 |
Basic earnings per share | $5.34 | $7.04 |
Diluted earnings per share | $5.16 | $6.84 |
Basic weighted average shares outstanding | 4,467,000 | 4,979,000 |
Diluted weighted average shares outstanding | 4,620,000 | 5,122,000 |
Homebuilding [Member] | ' | ' |
Revenues | 799,187 | 750,868 |
Other income | 997 | 1,026 |
Cost of sales | -655,152 | -624,085 |
Selling, general and administrative | -90,632 | -78,413 |
Operating income | 54,400 | 49,396 |
Interest expense | -5,684 | -5,452 |
Income before taxes | 48,716 | 43,944 |
Mortgage Banking [Member] | ' | ' |
Mortgage banking fees | 12,123 | 19,388 |
Interest income | 1,184 | 955 |
Other income | 59 | 113 |
General and administrative | -12,265 | -9,181 |
Interest expense | -110 | -114 |
Income before taxes | $991 | $11,161 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $23,849 | $35,041 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 3,710 | 2,772 |
Excess income tax benefit from equity-based compensation | -5,696 | -23,099 |
Equity-based compensation expense | 10,703 | 8,063 |
Contract land deposit recoveries, net | -1,983 | -1,012 |
Gain on sale of loans | -7,995 | -15,573 |
Mortgage loans closed | -416,801 | -434,748 |
Mortgage loans sold and principal payments on mortgage loans held for sale | 514,158 | 509,916 |
Distribution of earnings from unconsolidated joint ventures | 3,704 | ' |
Net change in assets and liabilities: | ' | ' |
Increase in inventory | -102,729 | -159,852 |
Increase in contract land deposits | -7,336 | -666 |
Increase in receivables | -281 | -5,215 |
(Decrease) increase in accounts payable, accrued expenses and customer deposits | -19,146 | 13,161 |
Other, net | -9,943 | -6,881 |
Net cash used in operating activities | -15,786 | -78,093 |
Cash flows from investing activities: | ' | ' |
Investments in and advances to unconsolidated joint ventures | ' | -11,000 |
Distribution of capital from unconsolidated joint ventures | 5,296 | 333 |
Purchase of property, plant and equipment | -5,433 | -3,455 |
Proceeds from sale of property, plant and equipment | 142 | 116 |
Net cash provided by (used in) investing activities | 5 | -14,006 |
Cash flows from financing activities: | ' | ' |
Purchases of treasury stock | -32,578 | ' |
Repayments under non-recourse debt related to consolidated variable interest entity and note payable | -1,327 | -2,188 |
Excess income tax benefit from equity-based compensation | 5,696 | 23,099 |
Proceeds from the exercise of stock options | 57,060 | 5,412 |
Net cash provided by financing activities | 28,851 | 26,323 |
Net increase (decrease) in cash and cash equivalents | 13,070 | -65,776 |
Cash and cash equivalents, beginning of the period | 866,253 | 1,153,507 |
Cash and cash equivalents, end of the period | 879,323 | 1,087,731 |
Supplemental disclosures of cash flow information: | ' | ' |
Interest paid during the period, net of interest capitalized | 12,027 | 12,392 |
Income taxes paid during the period, net of refunds | $28,661 | $3,242 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended | |
Mar. 31, 2014 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation | ' | |
1 | Basis of Presentation | |
The accompanying unaudited, condensed consolidated financial statements include the accounts of NVR, Inc. (“NVR” or the “Company”) 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 the Company’s Annual Report on Form 10-K for the year ended December 31, 2013. 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-month period ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. | ||
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. Certain prior year amounts in the condensed consolidated financial statements have been reclassified to conform to 2014 presentation. | ||
For the three-month periods ended March 31, 2014 and 2013, comprehensive income equaled net income; therefore, a separate statement of comprehensive income is not included in the accompanying condensed consolidated financial statements. |
Variable_Interest_Entities
Variable Interest Entities | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Variable Interest Entities | ' | ||||||||
2 | Variable Interest Entities | ||||||||
Fixed Price Purchase Agreements | |||||||||
NVR generally does not engage in the land development business. Instead, the Company typically acquires finished building lots at market prices from various development entities under fixed price purchase agreements. The purchase agreements require deposits that may be forfeited if NVR fails to perform under the agreement. The deposits required under the purchase agreements are in the form of cash or letters of credit in varying amounts, and typically range up to 10% of the aggregate purchase price of the finished lots. | |||||||||
NVR believes this lot acquisition strategy reduces the financial requirements and risks associated with direct land ownership and land development. NVR may, at its option, choose for any reason and at any time not to perform under these purchase agreements by delivering notice of its intent not to acquire the finished lots under contract. NVR’s sole legal obligation and economic loss for failure to perform under these purchase agreements is limited to the amount of the deposit pursuant to the liquidated damage provisions contained within the purchase agreements. In other words, if NVR does not perform under a purchase agreement, NVR loses only its deposit. None of the creditors of any of the development entities with which NVR enters fixed price purchase agreements have recourse to the general credit of NVR. NVR generally does not have any specific performance obligations to purchase a certain number or any of the lots, nor does NVR guarantee completion of the development by the developer or guarantee any of the developers’ financial or other liabilities. | |||||||||
NVR is not involved in the design or creation of any of the development entities from which the Company purchases lots under fixed price purchase agreements. The developer’s equity holders have the power to direct 100% of the operating activities of the development entity. NVR has no voting rights in any of the development entities. The sole purpose of the development entity’s activities is to generate positive cash flow returns to its equity holders. Further, NVR does not share in any of the profit or loss generated by the project’s development. The profits and losses are passed directly to the developer’s equity holders. | |||||||||
The deposit placed by NVR pursuant to the fixed price purchase agreement is deemed to be a variable interest in the respective development entities. Those development entities are deemed to be variable interest entities (“VIEs”). Therefore, the development entities with which NVR enters fixed price purchase agreements, including the joint venture limited liability corporations, as discussed below, are evaluated for possible consolidation by NVR. An enterprise must consolidate a VIE when that enterprise has a controlling financial interest in the VIE. An enterprise is deemed to have a controlling financial interest if it has i) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and ii) the obligation to absorb losses of the VIE that could be significant to the VIE or the rights to receive benefits from the VIE that could be significant to the VIE. | |||||||||
NVR believes the activities that most significantly impact a development entity’s economic performance are the operating activities of the entity. Unless and until a development entity completes finished building lots through the development process, with respect to which the development entities’ equity investors bear the full risk, the entity does not earn any revenues. The operating development activities are managed solely by the development entity’s equity investors. | |||||||||
The development entities with which NVR contracts to buy finished lots typically select the respective projects, obtain the necessary zoning approvals, obtain the financing required with no support or guarantees from NVR, select who will purchase the finished lots and at what price, and manage the completion of the infrastructure improvements, all for the purpose of generating a cash flow return to the development entity’s equity holders and all independent of NVR. The Company possesses no more than limited protective legal rights through the purchase agreement in the specific finished lots that it is purchasing, and NVR possesses no participative rights in the development entities. Accordingly, NVR does not have the power to direct the activities of a developer that most significantly impact the developer’s economic performance. For this reason, NVR has concluded that it is not the primary beneficiary of the development entities with which the Company enters fixed price purchase agreements, and therefore, NVR does not consolidate any of these VIEs. | |||||||||
As of March 31, 2014, NVR controlled approximately 59,400 lots with deposits in cash and letters of credit totaling $303,933 and $2,429, respectively. As noted above, NVR’s sole legal obligation and economic loss for failure to perform under these purchase agreements is limited to the amount of the deposit pursuant to the liquidated damage provisions contained within the purchase agreements and in very limited circumstances, specific performance obligations. NVR’s total risk of loss related to contract land deposits as of March 31, 2014 and December 31, 2013, was as follows: | |||||||||
March 31, 2014 | December 31, 2013 | ||||||||
Contract land deposits | $ | 303,933 | $ | 296,646 | |||||
Loss reserve on contract land deposits | (57,729 | ) | (59,761 | ) | |||||
Contract land deposits, net | 246,204 | 236,885 | |||||||
Contingent obligations in the form of letters of credit | 2,429 | 2,459 | |||||||
Contingent specific performance obligations (1) | 1,505 | 1,707 | |||||||
Total risk of loss | $ | 250,138 | $ | 241,051 | |||||
-1 | At March 31, 2014 and December 31, 2013, the Company was committed to purchase 10 and 13 finished lots under specific performance obligations, respectively. |
Joint_Ventures
Joint Ventures | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Equity Method Investments And Joint Ventures [Abstract] | ' | ||||||||
Joint Ventures | ' | ||||||||
3 | Joint Ventures | ||||||||
On a limited basis, NVR also obtains finished lots using joint venture limited liability corporations (“JVs”). All JVs are typically structured such that NVR is a non-controlling member and is at risk only for the amount the Company has invested, in addition to any deposits placed under fixed price purchase agreements with the JV. NVR is not a borrower, guarantor or obligor on any debt of the JVs, as applicable. The Company enters into a standard fixed price purchase agreement to purchase lots from these JVs, and as a result has a variable interest in these JVs. | |||||||||
At March 31, 2014, the Company had an aggregate investment totaling approximately $86,300 in four JVs that are expected to produce approximately 9,200 finished lots, of which approximately 3,400 were not under contract with NVR. The Company has determined that it is not the primary beneficiary of three of the JVs because NVR and the other JV partner either share power or the other JV partner has the controlling financial interest. The aggregate investment in these three JVs was approximately $83,600 and is reported in the “Other assets” line item on the accompanying condensed consolidated balance sheets. For the remaining JV, NVR has concluded that it is the primary beneficiary because the Company has the controlling financial interest in the JV. Accordingly, NVR consolidates this JV. The condensed balance sheets at March 31, 2014 and December 31, 2013, of the consolidated JV were as follows: | |||||||||
March 31, 2014 | December 31, 2013 | ||||||||
Cash | $ | 784 | $ | 668 | |||||
Restricted cash | 208 | 248 | |||||||
Other assets | 490 | 542 | |||||||
Land under development | 5,106 | 5,810 | |||||||
Total assets | $ | 6,588 | $ | 7,268 | |||||
Debt | $ | 2,153 | $ | 3,365 | |||||
Accrued expenses | 760 | 862 | |||||||
Equity | 3,675 | 3,041 | |||||||
Total liabilities and equity | $ | 6,588 | $ | 7,268 | |||||
Land_Under_Development
Land Under Development | 3 Months Ended | |
Mar. 31, 2014 | ||
Text Block [Abstract] | ' | |
Land Under Development | ' | |
4 | Land Under Development | |
On a limited basis, NVR directly acquires raw parcels of land already zoned for its intended use to develop into finished lots. Land under development includes the land acquisition costs, direct improvement costs, capitalized interest, where applicable, and real estate taxes. As of March 31, 2014, NVR directly owned five separate raw parcels of land with a carrying value of $46,083 that it intends to develop into approximately 650 finished lots for use in its homebuilding operations. Of the total finished lots, 125 lots are under contract to be sold to an unrelated party under lot purchase agreements. None of the raw parcels had any indicators of impairment as of March 31, 2014. Based on current market conditions, NVR may on a limited basis continue to directly acquire additional raw parcels to develop into finished lots. See the Overview section of Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included herein, for additional discussion. |
Capitalized_Interest
Capitalized Interest | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Capitalized Interest | ' | ||||||||
5 | Capitalized Interest | ||||||||
The Company capitalizes interest costs to land under development during the active development of finished lots. In addition, the Company capitalizes interest costs to its joint venture investments while the investments are considered qualified assets pursuant to ASC 835-20, Interest. Capitalized interest is transferred to sold or unsold inventory as the development of finished lots is completed, then charged to cost of sales upon the Company’s settlement of homes and the respective lots. Interest incurred in excess of the interest capitalizable based on the level of qualified assets is expensed in the period incurred. NVR’s interest costs incurred, capitalized, expensed and charged to cost of sales during the three months ended March 31, 2014 and 2013 was as follows: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Interest capitalized, beginning of period | $ | 3,294 | $ | 893 | |||||
Interest incurred | 6,223 | 6,250 | |||||||
Interest charged to interest expense | (5,794 | ) | (5,566 | ) | |||||
Interest charged to cost of sales | (105 | ) | — | ||||||
Interest capitalized, end of period | $ | 3,618 | $ | 1,577 | |||||
Earnings_per_Share
Earnings per Share | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings per Share | ' | ||||||||
6 | Earnings per Share | ||||||||
The following weighted average shares and share equivalents were used to calculate basic and diluted earnings per share for the three months ended March 31, 2014 and 2013: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Weighted average number of shares outstanding used to calculate basic EPS | 4,467,000 | 4,979,000 | |||||||
Dilutive Securities: | |||||||||
Stock options and restricted share units | 153,000 | 143,000 | |||||||
Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS | 4,620,000 | 5,122,000 | |||||||
Stock options issued under equity benefit plans to purchase 92,574 and 123,938 shares of common stock were outstanding during the quarters ended March 31, 2014 and 2013, respectively, but were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. |
Excess_Reorganization_Value_Go
Excess Reorganization Value, Goodwill and Other Intangibles | 3 Months Ended | |
Mar. 31, 2014 | ||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | |
Excess Reorganization Value, Goodwill and Other Intangibles | ' | |
7 | Excess Reorganization Value, Goodwill and Other Intangibles | |
Reorganization value in excess of identifiable assets (“excess reorganization value”) is an indefinite-lived intangible asset that was created upon NVR’s emergence from bankruptcy on September 30, 1993. Based on the allocation of the reorganization value, the portion of the reorganization value which was not attributed to specific tangible or intangible assets has been reported as excess reorganization value, which is treated similarly to goodwill. Excess reorganization value is not subject to amortization. Rather, excess reorganization value is subject to an impairment assessment on an annual basis or more frequently if changes in events or circumstances indicate that impairment may have occurred. Because excess reorganization value was based on the reorganization value of NVR’s entire enterprise upon emergence from bankruptcy, the impairment assessment is conducted on an enterprise basis based on the comparison of NVR’s total equity compared to the market value of NVR’s outstanding publicly-traded common stock. | ||
As of March 31, 2014, goodwill and net finite-lived intangible assets totaled $441 and $5,960, respectively. The remaining finite-lived intangible assets are amortized on a straight-line basis over a weighted average life of 5 years. Amortization expense related to the finite-lived intangible assets was $346 and $400 for the three-month periods ended March 31, 2014 and 2013, respectively. | ||
The Company completed the annual impairment assessment of the excess reorganization value and goodwill during the first quarter of 2014 and determined that there was no impairment. |
Income_Taxes
Income Taxes | 3 Months Ended | |
Mar. 31, 2014 | ||
Income Tax Disclosure [Abstract] | ' | |
Income Taxes | ' | |
8 | Income Taxes | |
During the first quarter of 2014, the Company recognized income tax expense of approximately $6,900 due to the reversal of certain previously recognized tax deductions. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||||
Shareholders' Equity | ' | ||||||||||||||||||||||||||||
9 | Shareholders’ Equity | ||||||||||||||||||||||||||||
A summary of changes in shareholders’ equity is presented below: | |||||||||||||||||||||||||||||
Additional | Deferred | Deferred | |||||||||||||||||||||||||||
Common | Paid-In- | Retained | Treasury | Compensation | Compensation | ||||||||||||||||||||||||
Stock | Capital | Earnings | Stock | Trust | Liability | Total | |||||||||||||||||||||||
Balance, December 31, 2013 | $ | 206 | $ | 1,212,050 | $ | 4,605,557 | $ | (4,556,461 | ) | $ | (17,741 | ) | $ | 17,741 | $ | 1,261,352 | |||||||||||||
Net income | — | — | 23,849 | — | — | — | 23,849 | ||||||||||||||||||||||
Purchase of common stock for treasury | — | — | — | (32,578 | ) | — | — | (32,578 | ) | ||||||||||||||||||||
Equity-based compensation | — | 10,703 | — | — | — | — | 10,703 | ||||||||||||||||||||||
Tax benefit from equity benefit plan activity | — | 5,696 | — | — | — | — | 5,696 | ||||||||||||||||||||||
Proceeds from stock options exercised | — | 57,060 | — | — | — | — | 57,060 | ||||||||||||||||||||||
Treasury stock issued upon option exercise and restricted share vesting | — | (26,099 | ) | — | 26,099 | — | — | — | |||||||||||||||||||||
Balance, March 31, 2014 | $ | 206 | $ | 1,259,410 | $ | 4,629,406 | $ | (4,562,940 | ) | $ | (17,741 | ) | $ | 17,741 | $ | 1,326,082 | |||||||||||||
The Company repurchased 32,377 shares of its common stock during the three months ended March 31, 2014. The Company settles option exercises and vesting of restricted share units by issuing shares of treasury stock. Approximately 92,000 shares were issued from the treasury account during the first quarter of 2014 in settlement of option exercises and vesting of restricted share units. Shares are relieved from the treasury account based on the weighted average cost basis of treasury shares acquired. |
Product_Warranties
Product Warranties | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Guarantees [Abstract] | ' | ||||||||
Product Warranties | ' | ||||||||
10 | Product Warranties | ||||||||
The Company establishes 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 NVR’s homebuilding business. Liability estimates are determined based on management’s judgment, considering such factors as historical experience, the likely current cost of corrective action, manufacturers’ and subcontractors’ participation in sharing the cost of corrective action, consultations with third party experts such as engineers, and discussions with the Company’s general counsel and outside counsel retained to handle specific product liability cases. The following table reflects the changes in the Company’s warranty reserve during the three months ended March 31, 2014 and 2013: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Warranty reserve, beginning of period | $ | 101,507 | $ | 62,742 | |||||
Provision | 10,260 | 8,291 | |||||||
Payments | (13,002 | ) | (7,976 | ) | |||||
Warranty reserve, end of period | $ | 98,765 | $ | 63,057 | |||||
Segment_Disclosures
Segment Disclosures | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Disclosures | ' | ||||||||
11 | Segment Disclosures | ||||||||
The following disclosure includes four homebuilding reportable segments that aggregate geographically the Company’s homebuilding operating segments, and the mortgage banking operations presented as a single reportable segment. The homebuilding reportable segments are comprised of operating divisions in the following geographic areas: | |||||||||
Mid Atlantic: | Maryland, Virginia, West Virginia, Delaware and Washington, D.C. | ||||||||
North East: | New Jersey and eastern Pennsylvania | ||||||||
Mid East: | New York, Ohio, western Pennsylvania, Indiana and Illinois | ||||||||
South East: | North Carolina, South Carolina, Tennessee and Florida | ||||||||
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, is based on the segment’s average net assets employed and is charged using a consistent methodology in the periods presented. The corporate capital allocation charged to the operating segment allows the Chief Operating Decision Maker (“CODM”) to determine whether the operating segment’s results are providing the desired rate of return after covering the Company’s cost of capital. In addition, certain assets, including goodwill and intangible assets and consolidation adjustments as discussed further below, are not allocated to the operating segments as those assets are neither included in the operating segment’s corporate capital allocation charge, nor in the CODM’s evaluation of the operating segment’s performance. The Company records charges on contract land deposits when it is determined that it is probable that recovery of the deposit is impaired. For segment reporting purposes, impairments on contract land deposits are charged to the operating segment upon the determination to terminate a finished lot purchase agreement with the developer, or to restructure a lot purchase agreement resulting in the forfeiture of the deposit. Mortgage banking profit before tax consists of revenues generated from mortgage financing, title insurance and closing services, less the costs of such services and general and administrative costs. Mortgage banking operations are not charged a corporate capital allocation charge. | |||||||||
In addition to the corporate capital allocation and contract land deposit impairments discussed above, the other reconciling items between segment profit and consolidated profit before tax include unallocated corporate overhead (including all management incentive compensation), equity-based compensation expense, consolidation adjustments and external corporate interest expense. NVR’s overhead functions, such as accounting, treasury, human resources, etc., are centrally performed and the costs are not allocated to the Company’s operating segments. Consolidation adjustments consist of such items necessary to convert the reportable segments’ results, which are predominantly maintained on a cash basis, to a full accrual basis for external financial statement presentation purposes, and are not allocated to the Company’s operating segments. Likewise, equity-based compensation expense is not charged to the operating segments. External corporate interest expense is primarily comprised of interest charges on the Company’s 3.95% Senior Notes due 2022 (the “Senior Notes”) and is not charged to the operating segments because the charges are included in the corporate capital allocation discussed above. | |||||||||
Following are tables presenting segment revenues, profit and assets, with reconciliations to the amounts reported for the consolidated enterprise, where applicable: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Revenues: | |||||||||
Homebuilding Mid Atlantic | $ | 465,030 | $ | 431,868 | |||||
Homebuilding North East | 78,792 | 62,611 | |||||||
Homebuilding Mid East | 150,648 | 170,756 | |||||||
Homebuilding South East | 104,717 | 85,633 | |||||||
Mortgage Banking | 12,123 | 19,388 | |||||||
Total consolidated revenues | $ | 811,310 | $ | 770,256 | |||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Profit: | |||||||||
Homebuilding Mid Atlantic | $ | 41,012 | $ | 36,539 | |||||
Homebuilding North East | 6,306 | 3,686 | |||||||
Homebuilding Mid East | (249 | ) | 1,823 | ||||||
Homebuilding South East | 8,046 | 3,647 | |||||||
Mortgage Banking | 1,840 | 11,802 | |||||||
Total segment profit | 56,955 | 57,497 | |||||||
Contract land deposit reserve adjustment (1) | 1,983 | 1,007 | |||||||
Equity-based compensation expense | (10,703 | ) | (8,063 | ) | |||||
Corporate capital allocation (2) | 28,966 | 25,618 | |||||||
Unallocated corporate overhead | (25,960 | ) | (25,198 | ) | |||||
Consolidation adjustments and other | 4,141 | 9,659 | |||||||
Corporate interest expense | (5,675 | ) | (5,415 | ) | |||||
Reconciling items sub-total | (7,248 | ) | (2,392 | ) | |||||
Consolidated income before taxes | $ | 49,707 | $ | 55,105 | |||||
March 31, 2014 | December 31, 2013 | ||||||||
Assets: | |||||||||
Homebuilding Mid Atlantic | $ | 893,601 | $ | 810,270 | |||||
Homebuilding North East | 86,276 | 84,958 | |||||||
Homebuilding Mid East | 196,357 | 172,167 | |||||||
Homebuilding South East | 110,713 | 106,389 | |||||||
Mortgage Banking | 144,513 | 253,421 | |||||||
Total segment assets | 1,431,460 | 1,427,205 | |||||||
Consolidated variable interest entity | 6,588 | 7,268 | |||||||
Cash and cash equivalents | 874,062 | 844,274 | |||||||
Deferred taxes | 162,623 | 162,378 | |||||||
Intangible assets and goodwill | 55,328 | 55,674 | |||||||
Contract land deposit reserve | (57,729 | ) | (59,761 | ) | |||||
Consolidation adjustments and other | 52,421 | 49,110 | |||||||
Reconciling items sub-total | 1,093,293 | 1,058,943 | |||||||
Consolidated assets | $ | 2,524,753 | $ | 2,486,148 | |||||
-1 | This item represents changes to the contract land deposit impairment reserve, which are not allocated to the reportable segments. | ||||||||
-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 March 31, | |||||||||
2014 | 2013 | ||||||||
Homebuilding Mid Atlantic | $ | 18,156 | $ | 16,107 | |||||
Homebuilding North East | 2,449 | 1,994 | |||||||
Homebuilding Mid East | 5,298 | 5,015 | |||||||
Homebuilding South East | 3,063 | 2,502 | |||||||
Total | $ | 28,966 | $ | 25,618 | |||||
Fair_Value
Fair Value | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Fair Value | ' | ||||||||||||||||||||||||
12 | Fair Value | ||||||||||||||||||||||||
Financial Instruments | |||||||||||||||||||||||||
The estimated fair value of NVR’s Senior Notes as of March 31, 2014 was $594,714. 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 value of the Senior Notes was $599,098 at March 31, 2014. Except as otherwise noted below, NVR believes that insignificant differences exist between the carrying value and the fair value of its financial instruments, which consists of cash equivalents, due to their short term nature. | |||||||||||||||||||||||||
Derivative Instruments and Mortgage Loans Held for Sale | |||||||||||||||||||||||||
In the normal course of business, NVR’s mortgage banking segment enters into contractual commitments to extend credit to buyers of single-family homes with fixed expiration dates. The commitments become effective when the borrowers “lock-in” a specified interest rate within time frames established by NVR. 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, the Company enters into optional or mandatory delivery forward sale contracts to sell whole loans and mortgage-backed securities to broker/dealers. The forward sale contracts lock in an interest rate and price for the sale of loans similar to the specific rate lock commitments. NVR 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 March 31, 2014, there were contractual commitments to extend credit to borrowers aggregating $218,827 and open forward delivery contracts aggregating $308,679. | |||||||||||||||||||||||||
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. The fair value of the Company’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 amount, if any, that the Company has discounted the price to the borrower from par for competitive reasons and 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, the Company 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. The Company 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, which averaged 105 basis points of the loan amount as of March 31, 2014, is included in the fair value measurement and is based upon contractual terms with investors and varies depending on the loan type. The Company assumes an approximate 11% fallout rate when measuring the fair value of rate lock commitments. Fallout is defined as locked loan commitments for which the Company does not close a mortgage loan and is based on historical experience. | |||||||||||||||||||||||||
The fair value of the Company’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 $123,833 included on the accompanying condensed consolidated balance sheet has been decreased by $128 from the aggregate principal balance of $123,961. | |||||||||||||||||||||||||
The undesignated derivative instruments are included on the accompanying condensed consolidated balance sheet, as of March 31, 2014, as follows: | |||||||||||||||||||||||||
Balance Sheet Location | Fair Value | ||||||||||||||||||||||||
Derivative Assets: | |||||||||||||||||||||||||
Rate lock commitments | NVRM - Other assets | $ | 115 | ||||||||||||||||||||||
Forward sales contracts | NVRM - Other assets | $ | 953 | ||||||||||||||||||||||
The fair value measurement as of March 31, 2014 was as follows: | |||||||||||||||||||||||||
Notional or | Assumed | Interest | Servicing | Security | Total Fair | ||||||||||||||||||||
Principal | Gain/(Loss) | Rate | Rights | Price | Value | ||||||||||||||||||||
Amount | From Loan | Movement | Value | Change | Measurement | ||||||||||||||||||||
Sale | Effect | Gain/(Loss) | |||||||||||||||||||||||
Rate lock commitments | $ | 218,827 | $ | (980 | ) | $ | (902 | ) | $ | 1,997 | $ | — | $ | 115 | |||||||||||
Forward sales contracts | $ | 308,679 | — | — | — | 953 | 953 | ||||||||||||||||||
Mortgages held for sale | $ | 123,961 | (667 | ) | (780 | ) | 1,319 | — | (128 | ) | |||||||||||||||
Total Fair Value Measurement | $ | (1,647 | ) | $ | (1,682 | ) | $ | 3,316 | $ | 953 | $ | 940 | |||||||||||||
For the three-months ended March 31, 2014 and 2013, NVR Mortgage Finance, Inc. (“NVRM”) recorded a fair value adjustment to income of $420 and $3,109, 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 the Company’s closed loans and locked loan commitments. |
Debt
Debt | 3 Months Ended | |
Mar. 31, 2014 | ||
Debt Disclosure [Abstract] | ' | |
Debt | ' | |
13 | Debt | |
As of March 31, 2014, the Company had Senior Notes outstanding with a principal balance of $600,000. The Senior Notes were issued at a discount to yield 3.97% and have been reflected net of the unamortized discount in the accompanying condensed consolidated balance sheet. 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, which commenced on March 15, 2013. | ||
NVRM provides for its mortgage origination and other operating activities using cash generated from 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 $25,000, subject to certain sub-limits. The Repurchase Agreement expires on July 30, 2014. At March 31, 2014, there was no outstanding debt under the Repurchase Agreement. Amounts outstanding under the Repurchase Agreement are collateralized by the Company’s mortgage loans held for sale. As of March 31, 2014, there were no borrowing base limitations reducing the amount available for borrowings under the Repurchase Agreement. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended | |
Mar. 31, 2014 | ||
Commitments And Contingencies Disclosure [Abstract] | ' | |
Commitments and Contingencies | ' | |
14 | Commitments and Contingencies | |
In October 2004, Patrick Tracy, whom NVR had employed as a Sales and Marketing Representative (“SMR”), filed a lawsuit against the Company in the U.S. District Court for the Western District of New York alleging that NVR had misclassified him and other SMRs as outside sales personnel exempt from certain state and federal wage laws, including overtime pay requirements. Mr. Tracy’s attorneys subsequently filed several other lawsuits in various courts asserting substantially similar claims on behalf of various classes or groups of SMRs. None of those courts have held that the claims are appropriate for class, collective, or other group treatment, and the Western District of New York ruled in April 2013 that the claims pending in that court could not proceed on such a basis. | ||
In October 2013, Mr. Tracy’s individual claims were tried by a jury, which returned a unanimous verdict in NVR’s favor and found that the Company had properly classified Mr. Tracy as an exempt outside sales person. The plaintiff filed a notice of appeal on February 27, 2014, but he has not yet identified any issues as to which he may seek appellate review. The remainder of the cases noted above are in various stages of pre-trial proceedings, many of them stayed or administratively closed pending a final disposition of the Tracy action. | ||
The Company believes that its compensation practices in regard to SMRs are entirely lawful and have vigorously defended all claims challenging those practices. In light of the points noted above, the Company has not recorded any associated liabilities on the accompanying condensed consolidated balance sheets in conjunction with any of those claims. | ||
In June 2010, the Company received a Request for Information from the United States Environmental Protection Agency (“EPA”) pursuant to Section 308 of the Clean Water Act. The request sought information about storm water discharge practices in connection with homebuilding projects completed or underway by the Company in New York and New Jersey. The Company cooperated with this request, and provided information to the EPA. The Company was subsequently informed by the United States Department of Justice (“DOJ”) that the EPA forwarded the information on the matter to the DOJ, and the DOJ requested that the Company meet with the government to discuss the status of the case. Meetings took place in January 2012 and August 2012 with representatives from both the EPA and DOJ. It is as yet unclear what next steps the DOJ will take in the matter. The Company intends to continue cooperating with any future EPA and/or DOJ inquiries. At this time, the Company cannot predict the outcome of this inquiry, nor can it reasonably estimate the potential costs that may be associated with its eventual resolution. | ||
The Company and its subsidiaries are also involved in various other litigation arising in the ordinary course of business. In the opinion of management, and based on advice of legal counsel, this litigation is not expected to have a material adverse effect on the financial position, results of operations or cash flows of the Company. Legal costs incurred in connection with outstanding litigation are expensed as incurred. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended | |
Mar. 31, 2014 | ||
Accounting Changes And Error Corrections [Abstract] | ' | |
Recent Accounting Pronouncements | ' | |
15 | Recent Accounting Pronouncements | |
There have not been any pronouncements issued but not yet implemented that we believe will have a material impact on our financial statements. |
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Total Risk Related to Lot Options | ' | ||||||||
NVR’s total risk of loss related to contract land deposits as of March 31, 2014 and December 31, 2013, was as follows: | |||||||||
March 31, 2014 | December 31, 2013 | ||||||||
Contract land deposits | $ | 303,933 | $ | 296,646 | |||||
Loss reserve on contract land deposits | (57,729 | ) | (59,761 | ) | |||||
Contract land deposits, net | 246,204 | 236,885 | |||||||
Contingent obligations in the form of letters of credit | 2,429 | 2,459 | |||||||
Contingent specific performance obligations (1) | 1,505 | 1,707 | |||||||
Total risk of loss | $ | 250,138 | $ | 241,051 | |||||
-1 | At March 31, 2014 and December 31, 2013, the Company was committed to purchase 10 and 13 finished lots under specific performance obligations, respectively. |
Joint_Ventures_Tables
Joint Ventures (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Equity Method Investments And Joint Ventures [Abstract] | ' | ||||||||
Condensed Balance Sheets of Consolidated JV | ' | ||||||||
The condensed balance sheets at March 31, 2014 and December 31, 2013, of the consolidated JV were as follows: | |||||||||
March 31, 2014 | December 31, 2013 | ||||||||
Cash | $ | 784 | $ | 668 | |||||
Restricted cash | 208 | 248 | |||||||
Other assets | 490 | 542 | |||||||
Land under development | 5,106 | 5,810 | |||||||
Total assets | $ | 6,588 | $ | 7,268 | |||||
Debt | $ | 2,153 | $ | 3,365 | |||||
Accrued expenses | 760 | 862 | |||||||
Equity | 3,675 | 3,041 | |||||||
Total liabilities and equity | $ | 6,588 | $ | 7,268 | |||||
Capitalized_Interest_Tables
Capitalized Interest (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Text Block [Abstract] | ' | ||||||||
Summary of Interest Costs Incurred, Capitalized, Expensed and Charged to Cost of Sales | ' | ||||||||
NVR’s interest costs incurred, capitalized, expensed and charged to cost of sales during the three months ended March 31, 2014 and 2013 was as follows: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Interest capitalized, beginning of period | $ | 3,294 | $ | 893 | |||||
Interest incurred | 6,223 | 6,250 | |||||||
Interest charged to interest expense | (5,794 | ) | (5,566 | ) | |||||
Interest charged to cost of sales | (105 | ) | — | ||||||
Interest capitalized, end of period | $ | 3,618 | $ | 1,577 | |||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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 months ended March 31, 2014 and 2013: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Weighted average number of shares outstanding used to calculate basic EPS | 4,467,000 | 4,979,000 | |||||||
Dilutive Securities: | |||||||||
Stock options and restricted share units | 153,000 | 143,000 | |||||||
Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS | 4,620,000 | 5,122,000 | |||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||||||
Summary of Changes in Shareholders' Equity | ' | ||||||||||||||||||||||||||||
A summary of changes in shareholders’ equity is presented below: | |||||||||||||||||||||||||||||
Additional | Deferred | Deferred | |||||||||||||||||||||||||||
Common | Paid-In- | Retained | Treasury | Compensation | Compensation | ||||||||||||||||||||||||
Stock | Capital | Earnings | Stock | Trust | Liability | Total | |||||||||||||||||||||||
Balance, December 31, 2013 | $ | 206 | $ | 1,212,050 | $ | 4,605,557 | $ | (4,556,461 | ) | $ | (17,741 | ) | $ | 17,741 | $ | 1,261,352 | |||||||||||||
Net income | — | — | 23,849 | — | — | — | 23,849 | ||||||||||||||||||||||
Purchase of common stock for treasury | — | — | — | (32,578 | ) | — | — | (32,578 | ) | ||||||||||||||||||||
Equity-based compensation | — | 10,703 | — | — | — | — | 10,703 | ||||||||||||||||||||||
Tax benefit from equity benefit plan activity | — | 5,696 | — | — | — | — | 5,696 | ||||||||||||||||||||||
Proceeds from stock options exercised | — | 57,060 | — | — | — | — | 57,060 | ||||||||||||||||||||||
Treasury stock issued upon option exercise and restricted share vesting | — | (26,099 | ) | — | 26,099 | — | — | — | |||||||||||||||||||||
Balance, March 31, 2014 | $ | 206 | $ | 1,259,410 | $ | 4,629,406 | $ | (4,562,940 | ) | $ | (17,741 | ) | $ | 17,741 | $ | 1,326,082 | |||||||||||||
Product_Warranties_Tables
Product Warranties (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Guarantees [Abstract] | ' | ||||||||
Summary of Changes in Product Warranties Reserve | ' | ||||||||
The following table reflects the changes in the Company’s warranty reserve during the three months ended March 31, 2014 and 2013: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Warranty reserve, beginning of period | $ | 101,507 | $ | 62,742 | |||||
Provision | 10,260 | 8,291 | |||||||
Payments | (13,002 | ) | (7,976 | ) | |||||
Warranty reserve, end of period | $ | 98,765 | $ | 63,057 | |||||
Segment_Disclosures_Tables
Segment Disclosures (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Revenues | ' | ||||||||
Following are tables presenting segment revenues, profit and assets, with reconciliations to the amounts reported for the consolidated enterprise, where applicable: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Revenues: | |||||||||
Homebuilding Mid Atlantic | $ | 465,030 | $ | 431,868 | |||||
Homebuilding North East | 78,792 | 62,611 | |||||||
Homebuilding Mid East | 150,648 | 170,756 | |||||||
Homebuilding South East | 104,717 | 85,633 | |||||||
Mortgage Banking | 12,123 | 19,388 | |||||||
Total consolidated revenues | $ | 811,310 | $ | 770,256 | |||||
Profit | ' | ||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Profit: | |||||||||
Homebuilding Mid Atlantic | $ | 41,012 | $ | 36,539 | |||||
Homebuilding North East | 6,306 | 3,686 | |||||||
Homebuilding Mid East | (249 | ) | 1,823 | ||||||
Homebuilding South East | 8,046 | 3,647 | |||||||
Mortgage Banking | 1,840 | 11,802 | |||||||
Total segment profit | 56,955 | 57,497 | |||||||
Contract land deposit reserve adjustment (1) | 1,983 | 1,007 | |||||||
Equity-based compensation expense | (10,703 | ) | (8,063 | ) | |||||
Corporate capital allocation (2) | 28,966 | 25,618 | |||||||
Unallocated corporate overhead | (25,960 | ) | (25,198 | ) | |||||
Consolidation adjustments and other | 4,141 | 9,659 | |||||||
Corporate interest expense | (5,675 | ) | (5,415 | ) | |||||
Reconciling items sub-total | (7,248 | ) | (2,392 | ) | |||||
Consolidated income before taxes | $ | 49,707 | $ | 55,105 | |||||
-1 | This item represents changes to the contract land deposit impairment reserve, which are not allocated to the reportable segments. | ||||||||
-2 | This item represents the elimination of the corporate capital allocation charge included in the respective homebuilding reportable segments. | ||||||||
Assets | ' | ||||||||
March 31, 2014 | December 31, 2013 | ||||||||
Assets: | |||||||||
Homebuilding Mid Atlantic | $ | 893,601 | $ | 810,270 | |||||
Homebuilding North East | 86,276 | 84,958 | |||||||
Homebuilding Mid East | 196,357 | 172,167 | |||||||
Homebuilding South East | 110,713 | 106,389 | |||||||
Mortgage Banking | 144,513 | 253,421 | |||||||
Total segment assets | 1,431,460 | 1,427,205 | |||||||
Consolidated variable interest entity | 6,588 | 7,268 | |||||||
Cash and cash equivalents | 874,062 | 844,274 | |||||||
Deferred taxes | 162,623 | 162,378 | |||||||
Intangible assets and goodwill | 55,328 | 55,674 | |||||||
Contract land deposit reserve | (57,729 | ) | (59,761 | ) | |||||
Consolidation adjustments and other | 52,421 | 49,110 | |||||||
Reconciling items sub-total | 1,093,293 | 1,058,943 | |||||||
Consolidated assets | $ | 2,524,753 | $ | 2,486,148 | |||||
Corporate Capital Allocation Charge | ' | ||||||||
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 March 31, | |||||||||
2014 | 2013 | ||||||||
Homebuilding Mid Atlantic | $ | 18,156 | $ | 16,107 | |||||
Homebuilding North East | 2,449 | 1,994 | |||||||
Homebuilding Mid East | 5,298 | 5,015 | |||||||
Homebuilding South East | 3,063 | 2,502 | |||||||
Total | $ | 28,966 | $ | 25,618 | |||||
Fair_Value_Tables
Fair Value (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Undesignated Derivative Instruments | ' | ||||||||||||||||||||||||
The undesignated derivative instruments are included on the accompanying condensed consolidated balance sheet, as of March 31, 2014, as follows: | |||||||||||||||||||||||||
Balance Sheet Location | Fair Value | ||||||||||||||||||||||||
Derivative Assets: | |||||||||||||||||||||||||
Rate lock commitments | NVRM - Other assets | $ | 115 | ||||||||||||||||||||||
Forward sales contracts | NVRM - Other assets | $ | 953 | ||||||||||||||||||||||
Fair Value Measurement | ' | ||||||||||||||||||||||||
The fair value measurement as of March 31, 2014 was as follows: | |||||||||||||||||||||||||
Notional or | Assumed | Interest | Servicing | Security | Total Fair | ||||||||||||||||||||
Principal | Gain/(Loss) | Rate | Rights | Price | Value | ||||||||||||||||||||
Amount | From Loan | Movement | Value | Change | Measurement | ||||||||||||||||||||
Sale | Effect | Gain/(Loss) | |||||||||||||||||||||||
Rate lock commitments | $ | 218,827 | $ | (980 | ) | $ | (902 | ) | $ | 1,997 | $ | — | $ | 115 | |||||||||||
Forward sales contracts | $ | 308,679 | — | — | — | 953 | 953 | ||||||||||||||||||
Mortgages held for sale | $ | 123,961 | (667 | ) | (780 | ) | 1,319 | — | (128 | ) | |||||||||||||||
Total Fair Value Measurement | $ | (1,647 | ) | $ | (1,682 | ) | $ | 3,316 | $ | 953 | $ | 940 | |||||||||||||
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | Lot | Development Entities [Member] | |
Variable Interest Entity [Line Items] | ' | ' | ' |
Maximum range of deposits required under the purchase agreements | 10.00% | ' | ' |
Power of developer's equity holders to direct operating activities of the development entity | 100.00% | ' | ' |
Voting rights description | ' | ' | 'NVR has no voting rights in any of the development entities |
Lots controlled by NVR | 59,400 | ' | ' |
Contract land deposits | $303,933 | $296,646 | ' |
Letters of credit related to lots | $2,429 | $2,459 | ' |
Variable_Interest_Entities_Tot
Variable Interest Entities - Total Risk Related to Lot Options (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ' |
Contract land deposits | $303,933 | $296,646 |
Loss reserve on contract land deposits | -57,729 | -59,761 |
Contract land deposits, net | 246,204 | 236,885 |
Contingent obligations in the form of letters of credit | 2,429 | 2,459 |
Contingent specific performance obligations | 1,505 | 1,707 |
Total risk of loss | $250,138 | $241,051 |
Variable_Interest_Entities_Tot1
Variable Interest Entities - Total Risk Related to Lot Options (Parenthetical) (Detail) | Mar. 31, 2014 | Dec. 31, 2013 |
Lot | Lot | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ' | ' |
Finished lots committed to purchase under specific performance obligations | 10 | 13 |
Joint_Ventures_Additional_Info
Joint Ventures - Additional Information (Detail) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | JointVenture |
Lot | |
Joint Ventures [Line Items] | ' |
Aggregate investment | $86,300 |
Expected production of finished lots | 9,200 |
Number of joint ventures | 4 |
Total lots not under contract with NVR under the joint venture | 3,400 |
Other Assets [Member] | ' |
Joint Ventures [Line Items] | ' |
Aggregate investment | $83,600 |
Number of joint ventures NVR is not primary beneficiary | 3 |
Joint_Ventures_Condensed_Balan
Joint Ventures - Condensed Balance Sheets of Consolidated JV (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Equity Method Investments And Joint Ventures [Abstract] | ' | ' |
Cash | $784 | $668 |
Restricted cash | 208 | 248 |
Other assets | 490 | 542 |
Land under development | 5,106 | 5,810 |
Total assets | 6,588 | 7,268 |
Debt | 2,153 | 3,365 |
Accrued expenses | 760 | 862 |
Equity | 3,675 | 3,041 |
Total liabilities and equity | $6,588 | $7,268 |
Land_Under_Development_Additio
Land Under Development - Additional Information (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Lot | |
Parcels | |
Real Estate [Abstract] | ' |
Number of raw parcels of land acquired | 5 |
Carrying value of raw parcels of land | $46,083 |
Number of finished lots for use in homebuilding operations | 650 |
Finished Lots under lot purchase agreements | 125 |
Capitalized_Interest_Summary_o
Capitalized Interest - Summary of Interest Costs Incurred, Capitalized, Expensed and Charged to Cost of Sales (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest Costs Incurred [Abstract] | ' | ' |
Interest capitalized, beginning of period | $3,294 | $893 |
Interest incurred | 6,223 | 6,250 |
Interest charged to interest expense | -5,794 | -5,566 |
Interest charged to cost of sales | -105 | ' |
Interest capitalized, end of period | $3,618 | $1,577 |
Earnings_Per_Share_Weighted_Av
Earnings Per Share - Weighted Average Shares and Share Equivalents to Calculate Basic and Diluted Earnings Per Share (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Earnings Per Share [Abstract] | ' | ' |
Weighted average number of shares outstanding used to calculate basic EPS | 4,467,000 | 4,979,000 |
Dilutive Securities: | ' | ' |
Stock options and restricted share units | 153,000 | 143,000 |
Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS | 4,620,000 | 5,122,000 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (Stock Options [Member]) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Stock Options [Member] | ' | ' |
Earnings Per Share [Line Items] | ' | ' |
Antidilutive stock options | 92,574 | 123,938 |
Excess_Reorganization_Value_Go1
Excess Reorganization Value, Goodwill and Other Intangibles - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' |
Goodwill | $441 | ' |
Finite-lived intangible assets | 5,960 | ' |
Weighted average life of finite-lived intangible assets | '5 years | ' |
Amortization expense | 346 | 400 |
Impairment of excess reorganization value and goodwill | $0 | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ' |
Income tax expense due to reversal of previously recognized tax deductions | $6,900 |
Shareholders_Equity_Summary_of
Shareholders' Equity - Summary of Changes in Shareholders' Equity (Detail) (USD $) | 3 Months Ended | 3 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Common Stock [Member] | Common Stock [Member] | Additional Paid-In-Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Deferred Compensation Trust [Member] | Deferred Compensation Trust [Member] | Deferred Compensation Liability [Member] | Deferred Compensation Liability [Member] | |||
Stockholders' Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | $1,261,352 | ' | $206 | $206 | $1,212,050 | $4,605,557 | ($4,556,461) | ($17,741) | ($17,741) | $17,741 | $17,741 |
Net income | 23,849 | 35,041 | ' | ' | ' | 23,849 | ' | ' | ' | ' | ' |
Purchase of common stock for treasury | -32,578 | ' | ' | ' | ' | ' | -32,578 | ' | ' | ' | ' |
Equity-based compensation | 10,703 | ' | ' | ' | 10,703 | ' | ' | ' | ' | ' | ' |
Tax benefit from equity benefit plan activity | 5,696 | ' | ' | ' | 5,696 | ' | ' | ' | ' | ' | ' |
Proceeds from stock options exercised | 57,060 | 5,412 | ' | ' | 57,060 | ' | ' | ' | ' | ' | ' |
Treasury stock issued upon option exercise and restricted share vesting | ' | ' | ' | ' | -26,099 | ' | 26,099 | ' | ' | ' | ' |
Ending Balance | $1,326,082 | ' | $206 | $206 | $1,259,410 | $4,629,406 | ($4,562,940) | ($17,741) | ($17,741) | $17,741 | $17,741 |
Shareholders_Equity_Additional
Shareholders' Equity - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Equity [Abstract] | ' |
Common stock repurchased | 32,377 |
Treasury stock issued upon option exercise and restricted share vesting | 92,000 |
Product_Warranties_Summary_of_
Product Warranties - Summary of Changes in Product Warranties Reserve (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Product Warranties Disclosures [Abstract] | ' | ' |
Warranty reserve, beginning of period | $101,507 | $62,742 |
Provision | 10,260 | 8,291 |
Payments | -13,002 | -7,976 |
Warranty reserve, end of period | $98,765 | $63,057 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2014 | |
Segment Reporting Information [Line Items] | ' |
Senior notes interest rate | 3.95% |
Senior notes maturity | 15-Sep-22 |
Senior Notes due 2022 [Member] | ' |
Segment Reporting Information [Line Items] | ' |
Senior notes interest rate | 3.95% |
Homebuilding [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_D
Segment Disclosures - Revenues (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Total consolidated revenues | $811,310 | $770,256 |
Operating Segments [Member] | Homebuilding Mid Atlantic [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenues | 465,030 | 431,868 |
Operating Segments [Member] | Homebuilding North East [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenues | 78,792 | 62,611 |
Operating Segments [Member] | Homebuilding Mid East [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenues | 150,648 | 170,756 |
Operating Segments [Member] | Homebuilding South East [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenues | 104,717 | 85,633 |
Operating Segments [Member] | Mortgage Banking [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Mortgage Banking | $12,123 | $19,388 |
Segment_Disclosures_Profit_Det
Segment Disclosures - Profit (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting, Profit Reconciling Item [Line Items] | ' | ' |
Consolidated income before taxes | $49,707 | $55,105 |
Equity-based compensation expense | -10,703 | -8,063 |
Operating Segments [Member] | ' | ' |
Segment Reporting, Profit Reconciling Item [Line Items] | ' | ' |
Consolidated income before taxes | 56,955 | 57,497 |
Operating Segments [Member] | Homebuilding Mid Atlantic [Member] | ' | ' |
Segment Reporting, Profit Reconciling Item [Line Items] | ' | ' |
Consolidated income before taxes | 41,012 | 36,539 |
Operating Segments [Member] | Homebuilding North East [Member] | ' | ' |
Segment Reporting, Profit Reconciling Item [Line Items] | ' | ' |
Consolidated income before taxes | 6,306 | 3,686 |
Operating Segments [Member] | Homebuilding Mid East [Member] | ' | ' |
Segment Reporting, Profit Reconciling Item [Line Items] | ' | ' |
Consolidated income before taxes | -249 | 1,823 |
Operating Segments [Member] | Homebuilding South East [Member] | ' | ' |
Segment Reporting, Profit Reconciling Item [Line Items] | ' | ' |
Consolidated income before taxes | 8,046 | 3,647 |
Operating Segments [Member] | Mortgage Banking [Member] | ' | ' |
Segment Reporting, Profit Reconciling Item [Line Items] | ' | ' |
Mortgage Banking | 1,840 | 11,802 |
Reconciling Items Sub-Total [Member] | ' | ' |
Segment Reporting, Profit Reconciling Item [Line Items] | ' | ' |
Segment reporting reconciling item for operating profit | -7,248 | -2,392 |
Reconciling Items Sub-Total [Member] | Contract Land Deposit Reserve Adjustment [Member] | ' | ' |
Segment Reporting, Profit Reconciling Item [Line Items] | ' | ' |
Segment reporting reconciling item for operating profit | 1,983 | 1,007 |
Reconciling Items Sub-Total [Member] | Equity-Based Compensation Expense [Member] | ' | ' |
Segment Reporting, Profit Reconciling Item [Line Items] | ' | ' |
Equity-based compensation expense | -10,703 | -8,063 |
Reconciling Items Sub-Total [Member] | Corporate Capital Allocation [Member] | ' | ' |
Segment Reporting, Profit Reconciling Item [Line Items] | ' | ' |
Segment reporting reconciling item for operating profit | 28,966 | 25,618 |
Reconciling Items Sub-Total [Member] | Unallocated Corporate Overhead [Member] | ' | ' |
Segment Reporting, Profit Reconciling Item [Line Items] | ' | ' |
Segment reporting reconciling item for operating profit | -25,960 | -25,198 |
Reconciling Items Sub-Total [Member] | Consolidation Adjustments and Other [Member] | ' | ' |
Segment Reporting, Profit Reconciling Item [Line Items] | ' | ' |
Segment reporting reconciling item for operating profit | 4,141 | 9,659 |
Reconciling Items Sub-Total [Member] | Corporate Interest Expense [Member] | ' | ' |
Segment Reporting, Profit Reconciling Item [Line Items] | ' | ' |
Segment reporting reconciling item for operating profit | ($5,675) | ($5,415) |
Segment_Disclosures_Assets_Det
Segment Disclosures - Assets (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Consolidated assets | $2,524,753 | $2,486,148 |
Consolidated variable interest entity | 6,588 | 7,268 |
Contract land deposit reserve | -57,729 | -59,761 |
Operating Segments [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Consolidated assets | 1,431,460 | 1,427,205 |
Operating Segments [Member] | Homebuilding Mid Atlantic [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Consolidated assets | 893,601 | 810,270 |
Operating Segments [Member] | Homebuilding North East [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Consolidated assets | 86,276 | 84,958 |
Operating Segments [Member] | Homebuilding Mid East [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Consolidated assets | 196,357 | 172,167 |
Operating Segments [Member] | Homebuilding South East [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Consolidated assets | 110,713 | 106,389 |
Operating Segments [Member] | Mortgage Banking [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Consolidated assets | 144,513 | 253,421 |
Reconciling Items Sub-Total [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Consolidated variable interest entity | 6,588 | 7,268 |
Cash and cash equivalents | 874,062 | 844,274 |
Deferred taxes | 162,623 | 162,378 |
Intangible assets and goodwill | 55,328 | 55,674 |
Contract land deposit reserve | -57,729 | -59,761 |
Reconciling items sub-total | 1,093,293 | 1,058,943 |
Corporate Non-Segment Reconciling Items Sub-Total [Member] | ' | ' |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' |
Consolidation adjustments and other | $52,421 | $49,110 |
Segment_Disclosures_Corporate_
Segment Disclosures - Corporate Capital Allocation Change (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' |
Corporate Capital Allocation | $28,966 | $25,618 |
Operating Segments [Member] | Homebuilding Mid Atlantic [Member] | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' |
Corporate Capital Allocation | 18,156 | 16,107 |
Operating Segments [Member] | Homebuilding North East [Member] | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' |
Corporate Capital Allocation | 2,449 | 1,994 |
Operating Segments [Member] | Homebuilding Mid East [Member] | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' |
Corporate Capital Allocation | 5,298 | 5,015 |
Operating Segments [Member] | Homebuilding South East [Member] | ' | ' |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ' | ' |
Corporate Capital Allocation | $3,063 | $2,502 |
Fair_Value_Additional_Informat
Fair Value - Additional Information (Detail) (USD $) | 3 Months Ended | ||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 |
Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [Member] | Level 2 [Member] | Level 2 [Member] | Level 2 [Member] | Homebuilding [Member] | Homebuilding [Member] | Homebuilding [Member] | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||||||
Mortgage Banking [Member] | Mortgage Banking [Member] | Fair Value, Measurements, Recurring [Member] | |||||||
Forward Sales Contracts [Member] | Rate Lock Commitments [Member] | Senior Notes due 2022 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Notes fair value | ' | ' | ' | ' | ' | ' | ' | ' | $594,714 |
Senior Notes carrying value | ' | ' | ' | ' | ' | ' | 599,098 | 599,075 | 599,098 |
Notional amount of contractual commitments | ' | ' | ' | ' | 308,679 | 218,827 | ' | ' | ' |
Average basis points of loan amount | 1.05% | ' | ' | ' | ' | ' | ' | ' | ' |
Fallout rate of measuring fair value of rate lock commitments | 11.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of mortgage loans held for sale | 123,833 | ' | ' | ' | ' | ' | ' | ' | ' |
Change in fair value of loans held for sale | -128 | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal balance of loans held for sale | ' | ' | ' | 123,961 | ' | ' | ' | ' | ' |
Fair value adjustment income (expense) | ' | $420 | $3,109 | ' | ' | ' | ' | ' | ' |
Fair_Value_Undesignated_Deriva
Fair Value - Undesignated Derivative Instruments (Detail) (Other Assets [Member], USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Rate Lock Commitments [Member] | ' |
Derivative Assets: | ' |
Fair value of derivatives | $115 |
Forward Sales Contracts [Member] | ' |
Derivative Assets: | ' |
Fair value of derivatives | $953 |
Fair_Value_Fair_Value_Measurem
Fair Value - Fair Value Measurement (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' |
Assumed Gain/(Loss) From Loan Sale | ($1,647) |
Interest Rate Movement Effect | -1,682 |
Servicing Rights Value | 3,316 |
Security Price Change | 953 |
Total Fair Value Measurement Gain/(Loss) | 940 |
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 | 218,827 |
Assumed Gain/(Loss) From Loan Sale | -980 |
Interest Rate Movement Effect | -902 |
Servicing Rights Value | 1,997 |
Total Fair Value Measurement Gain/(Loss) | 115 |
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 | 308,679 |
Security Price Change | 953 |
Total Fair Value Measurement Gain/(Loss) | 953 |
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 | 123,961 |
Assumed Gain/(Loss) From Loan Sale | -667 |
Interest Rate Movement Effect | -780 |
Servicing Rights Value | 1,319 |
Total Fair Value Measurement Gain/(Loss) | ($128) |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Debt Disclosure [Abstract] | ' |
Senior notes principal amount | $600,000 |
Senior notes effective interest rate | 3.97% |
Senior notes maturity | 15-Sep-22 |
Senior notes interest rate | 3.95% |
Frequency of senior notes payment | 'Semi-annually in arrears on March 15 and September 15 |
Commencement date of senior notes payment | 15-Mar-13 |
Repurchase agreement maximum loan borrowing capacity | 25,000 |
Expiration date of repurchase agreement | 30-Jul-14 |
Debt outstanding under repurchase agreement | 0 |
Borrowing base | $0 |