Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 17, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | NVR | ||
Entity Registrant Name | NVR INC | ||
Entity Central Index Key | 906163 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 4,048,671 | ||
Entity Public Float | $4,572,320 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $545,419 | $866,253 |
Inventory: | ||
Land under development | 33,689 | 41,328 |
Contract land deposits, net | 294,676 | 236,885 |
Total assets | 2,351,335 | 2,486,148 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Total liabilities | 1,227,080 | 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 December 31, 2014 and 2013 | 206 | 206 |
Additional paid-in-capital | 1,325,495 | 1,212,050 |
Deferred compensation trust – 108,614 and 109,256 shares of NVR, Inc. common stock as of December 31, 2014 and 2013, respectively | -17,333 | -17,741 |
Deferred compensation liability | 17,333 | 17,741 |
Retained earnings | 4,887,187 | 4,605,557 |
Less treasury stock at cost – 16,506,229 and 16,121,605 shares as of December 31, 2014 and 2013, respectively | -5,088,633 | -4,556,461 |
Total shareholders' equity | 1,124,255 | 1,261,352 |
Total liabilities and shareholders' equity | 2,351,335 | 2,486,148 |
Homebuilding [Member] | ||
ASSETS | ||
Cash and cash equivalents | 514,780 | 844,274 |
Receivables | 10,021 | 9,529 |
Inventory: | ||
Lots and housing units, covered under sales agreements with customers | 690,955 | 568,831 |
Unsold lots and housing units | 131,938 | 117,467 |
Land under development | 33,689 | 41,328 |
Building materials and other | 12,904 | 10,939 |
Total Inventory | 869,486 | 738,565 |
Assets related to consolidated variable interest entity | 3,590 | 7,268 |
Contract land deposits, net | 294,676 | 236,885 |
Property, plant and equipment, net | 46,242 | 32,599 |
Reorganization value in excess of amounts allocable to identifiable assets, net | 41,580 | 41,580 |
Goodwill and finite-lived intangible assets, net | 5,364 | 6,747 |
Deferred tax assets, net | 165,189 | 162,378 |
Other assets | 137,091 | 145,555 |
Total assets | 2,088,019 | 2,225,380 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Accounts payable | 204,622 | 181,687 |
Accrued expenses and other liabilities | 289,058 | 316,227 |
Liabilities related to consolidated variable interest entity | 1,618 | 1,646 |
Non-recourse debt related to consolidated variable interest entity | 64 | 3,365 |
Customer deposits | 106,755 | 101,022 |
Senior notes | 599,166 | 599,075 |
Total liabilities | 1,201,283 | 1,203,022 |
Mortgage Banking [Member] | ||
ASSETS | ||
Cash and cash equivalents | 30,158 | 21,311 |
Mortgage loans held for sale, net | 205,664 | 210,641 |
Inventory: | ||
Property, plant and equipment, net | 6,189 | 4,699 |
Reorganization value in excess of amounts allocable to identifiable assets, net | 7,347 | 7,347 |
Other assets | 13,958 | 16,770 |
Total assets | 263,316 | 260,768 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Accounts payable and other liabilities | 25,797 | 21,774 |
Total liabilities | $25,797 | $21,774 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 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 | 108,614 | 109,256 |
Treasury stock, shares | 16,506,229 | 16,121,605 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest expense | ($23,140) | ($22,385) | ($7,529) |
Income before taxes | 453,546 | 418,696 | 275,077 |
Income tax expense | -171,916 | -152,219 | -94,489 |
Net income | 281,630 | 266,477 | 180,588 |
Basic earnings per share | $65.83 | $56.25 | $36.04 |
Diluted earnings per share | $63.50 | $54.81 | $35.12 |
Basic weighted average shares outstanding | 4,278 | 4,737 | 5,011 |
Diluted weighted average shares outstanding | 4,435 | 4,862 | 5,142 |
Homebuilding [Member] | |||
Revenues | 4,375,059 | 4,134,481 | 3,121,244 |
Other income | 2,853 | 3,962 | 3,486 |
Cost of sales | -3,568,586 | -3,424,204 | -2,575,639 |
Selling, general and administrative | -358,851 | -313,029 | -301,184 |
Operating income | 450,475 | 401,210 | 247,907 |
Interest expense | -22,591 | -21,840 | -6,983 |
Income before taxes | 427,884 | 379,370 | 240,924 |
Mortgage Banking [Member] | |||
Mortgage banking fees | 69,509 | 76,786 | 63,406 |
Interest income | 4,940 | 4,983 | 4,504 |
Other income | 778 | 696 | 564 |
General and administrative | -49,016 | -42,594 | -33,775 |
Interest expense | -549 | -545 | -546 |
Income before taxes | $25,662 | $39,326 | $34,153 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In-Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Deferred Compensation Trust [Member] | Deferred Compensation Liability [Member] |
In Thousands | |||||||
Beginning Balance at Dec. 31, 2011 | $1,374,799 | $206 | $1,072,779 | $4,158,492 | ($3,856,678) | ($25,581) | $25,581 |
Net income | 180,588 | 180,588 | |||||
Deferred compensation activity | 250 | -250 | |||||
Purchase of common stock for treasury | -227,281 | -227,281 | |||||
Equity-based compensation | 64,841 | 64,841 | |||||
Tax benefit from equity benefit plan activity | 14,319 | 14,319 | |||||
Proceeds from stock options exercised | 73,211 | 73,211 | |||||
Treasury stock issued upon option exercise and restricted share vesting | -55,451 | 55,451 | |||||
Ending Balance at Dec. 31, 2012 | 1,480,477 | 206 | 1,169,699 | 4,339,080 | -4,028,508 | -25,331 | 25,331 |
Net income | 266,477 | 266,477 | |||||
Deferred compensation activity | 7,590 | -7,590 | |||||
Purchase of common stock for treasury | -554,491 | -554,491 | |||||
Equity-based compensation | 34,296 | 34,296 | |||||
Tax benefit from equity benefit plan activity | 20,636 | 20,636 | |||||
Proceeds from stock options exercised | 13,957 | 13,957 | |||||
Treasury stock issued upon option exercise and restricted share vesting | -26,538 | 26,538 | |||||
Ending Balance at Dec. 31, 2013 | 1,261,352 | 206 | 1,212,050 | 4,605,557 | -4,556,461 | -17,741 | 17,741 |
Net income | 281,630 | 281,630 | |||||
Deferred compensation activity | 408 | -408 | |||||
Purchase of common stock for treasury | -567,544 | -567,544 | |||||
Equity-based compensation | 63,227 | 63,227 | |||||
Tax benefit from equity benefit plan activity | 9,437 | 9,437 | |||||
Proceeds from stock options exercised | 76,153 | 76,153 | |||||
Treasury stock issued upon option exercise and restricted share vesting | -35,372 | 35,372 | |||||
Ending Balance at Dec. 31, 2014 | $1,124,255 | $206 | $1,325,495 | $4,887,187 | ($5,088,633) | ($17,333) | $17,333 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $281,630 | $266,477 | $180,588 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 17,614 | 13,391 | 8,100 |
Excess income tax benefit from equity-based compensation | -9,437 | -20,636 | -14,319 |
Equity-based compensation expense | 63,227 | 34,296 | 64,841 |
Contract land deposit recoveries | -225 | -5,313 | -2,003 |
Gain on sale of loans | -47,791 | -56,528 | -47,019 |
Deferred tax (benefit) expense | -4,176 | -16,848 | 11,843 |
Mortgage loans closed | -2,469,876 | -2,307,796 | -2,016,084 |
Mortgage loans sold and principal payments on mortgage loans held for sale | 2,525,706 | 2,338,701 | 2,125,439 |
Distribution of earnings from unconsolidated joint ventures | 8,431 | 5,676 | 4,232 |
Net change in assets and liabilities: | |||
Increase in inventory | -127,729 | -52,861 | -97,750 |
Increase in contract land deposits | -57,566 | -40,034 | -53,942 |
Increase in receivables | -533 | -260 | -1,818 |
Increase in accounts payable and accrued expenses | 60 | 113,121 | 71,932 |
Increase in customer deposits | 5,733 | 1,335 | 38,464 |
Other, net | -519 | -2,499 | -8,120 |
Net cash provided by operating activities | 184,549 | 270,222 | 264,384 |
Cash flows from investing activities: | |||
Investments in and advances to unconsolidated joint ventures | -22,850 | -1,000 | |
Distribution of capital from unconsolidated joint ventures | 11,569 | 6,782 | 4,692 |
Purchase of property, plant and equipment | -31,672 | -19,016 | -12,365 |
Proceeds from the sale of property, plant and equipment | 1,021 | 607 | 319 |
Acquisition, net of cash acquired | -14,257 | ||
Net cash used in investing activities | -19,082 | -34,477 | -22,611 |
Cash flows from financing activities: | |||
Purchase of treasury stock | -567,544 | -554,491 | -227,281 |
Net repayments under note payable and credit lines | -115 | -642 | -856 |
Repayments on loans assumed in acquisition | -21,910 | ||
Repayments under non-recourse debt related to consolidated variable interest entity | -3,301 | -4,314 | -6,566 |
Borrowings under non-recourse debt related to consolidated variable interest entity | 3,105 | 6,157 | |
Distributions to partner in consolidated variable interest entity | -931 | -1,250 | |
Excess income tax benefit from equity-based compensation | 9,437 | 20,636 | 14,319 |
Proceeds from issuance of Senior Notes due 2022 | 598,962 | ||
Debt issuance costs for Senior Notes due 2022 | -5,096 | ||
Proceeds from the exercise of stock options | 76,153 | 13,957 | 73,211 |
Net cash (used in) provided by financing activities | -486,301 | -522,999 | 430,940 |
Net (decrease) increase in cash and cash equivalents | -320,834 | -287,254 | 672,713 |
Cash and cash equivalents, beginning of the year | 866,253 | 1,153,507 | 480,794 |
Cash and cash equivalents, end of the year | 545,419 | 866,253 | 1,153,507 |
Supplemental disclosures of cash flow information: | |||
Interest paid during the year, net of interest capitalized | 24,464 | 24,876 | 1,041 |
Income taxes paid during the year, net of refunds | 181,840 | 113,224 | 59,604 |
Supplemental disclosures of non-cash activities: | |||
Increase in assets in connection with acquisition | 55,759 | ||
Increase in liabilities in connection with acquisition | $41,502 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Summary of Significant Accounting Policies | 1 | Summary of Significant Accounting Policies | |||||||||||
Principles of Consolidation | |||||||||||||
The accompanying consolidated financial statements include the accounts of NVR, Inc. and its subsidiaries (“NVR” or the “Company”) and certain other entities in which the Company is deemed to be the primary beneficiary (see Notes 3 and 4 herein for additional information). All significant intercompany transactions have been eliminated in consolidation. | |||||||||||||
Use of Estimates in the Preparation of Financial Statements | |||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Management continually evaluates the estimates used to prepare the consolidated financial statements and updates those estimates as necessary. In general, the Company’s estimates are based on historical experience, on information from third party professionals, and other various assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ materially from those estimates made by management. | |||||||||||||
Reclassifications | |||||||||||||
Certain prior year amounts in the consolidated financial statements have been reclassified to conform to the 2014 presentation. Reclassifications did not impact net income, total assets or total liabilities, or statement of cash flow classifications. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
Cash and cash equivalents include short-term investments with original maturities of three months or less. At December 31, 2014 and 2013, $481 and $668, respectively, of cash related to a consolidated variable interest entity is included in “Assets related to consolidated variable interest entity” on the accompanying consolidated balance sheet. | |||||||||||||
The homebuilding segment had restricted cash of $24,106 and $20,563 at December 31, 2014 and 2013, respectively. Restricted cash in both 2014 and 2013 was attributable to holding requirements related to outstanding letters of credit issued under the Company’s letter of credit agreement as discussed further in Note 13 herein. In addition, restricted cash relates to customer deposits for certain home sales. Restricted cash is recorded in “Other assets” in the homebuilding section of the accompanying consolidated balance sheets. | |||||||||||||
The mortgage banking segment had restricted cash of $1,947 and $2,860 at December 31, 2014 and 2013, respectively, which included amounts collected from customers for loans in process and closed mortgage loans held for sale. The mortgage banking segment’s restricted cash is recorded in “Other assets” in the mortgage banking section of the accompanying consolidated balance sheets. | |||||||||||||
Homebuilding Inventory | |||||||||||||
The carrying value of inventory is stated at the lower of cost or market value. Cost of lots and completed and uncompleted housing units represent the accumulated actual cost of the units. Field construction supervisors’ salaries and related direct overhead expenses are included in inventory costs. Interest costs are not capitalized into inventory, with the exception of land under development and joint venture investments, as applicable (see below). Upon settlement, the cost of the unit is expensed on a specific identification basis. Cost of building materials is determined on a first-in, first-out basis. | |||||||||||||
Sold inventory is evaluated for impairment based on the contractual selling price compared to the total estimated cost to construct. Unsold inventory is evaluated for impairment by analyzing recent comparable sales prices within the applicable community compared to the costs incurred to date plus the expected costs to complete. Any calculated impairments are recorded immediately. | |||||||||||||
Contract Land Deposits | |||||||||||||
The Company purchases finished lots under fixed price purchase agreements that require deposits that may be forfeited if NVR fails to perform under the contract. The deposits are in the form of cash or letters of credit in varying amounts and represent a percentage of the aggregate purchase price of the finished lots. | |||||||||||||
NVR maintains an allowance for losses on contract land deposits that reflects the Company’s judgment of the present loss exposure in the existing contract land deposit portfolio at the end of the reporting period. To analyze contract land deposit impairments, NVR utilizes an Accounting Standards Codification (“ASC”) 450, Contingencies, loss contingency analysis that is conducted each quarter. In addition to considering market and economic conditions, NVR assesses contract land deposit impairments on a community-by-community basis pursuant to the purchase contract terms, analyzing, as applicable, current sales absorption levels, recent sales’ gross profit, the dollar differential between the contractual purchase price and the current market price for lots, a developer’s financial stability, a developer’s financial ability or willingness to reduce lot prices to current market prices, and the contract’s default status by either the Company or the developer along with an analysis of the expected outcome of any such default. | |||||||||||||
NVR’s analysis is focused on whether the Company can sell houses profitably in a particular community in the current market with which the Company is faced. Because the Company does not own the finished lots on which the Company has placed a contract land deposit, if the above analysis leads to a determination that the Company cannot sell homes profitably at the current contractual lot price, the Company then determines whether it will elect to default under the contract, forfeit the deposit and terminate the contract, or whether the Company will attempt to restructure the lot purchase contract, which may require it to forfeit the deposit to obtain contract concessions from a developer. The Company also assesses whether impairment is present due to collectability issues resulting from a developer’s non-performance because of financial or other conditions. | |||||||||||||
For the years ended December 31, 2014, 2013 and 2012, the Company recognized pre-tax recoveries of approximately $225, $5,300 and $2,000, respectively, of contract land deposits previously determined to be uncollectible. The contract land deposit asset on the accompanying consolidated balance sheets is shown net of an approximate $56,100 and $59,800 impairment valuation allowance at December 31, 2014, and 2013, respectively. | |||||||||||||
Land Under Development | |||||||||||||
On a very limited basis, NVR directly acquires raw parcels of land already zoned for its intended use to develop into finished lots. Land under development includes the land acquisition costs, direct improvement costs, capitalized interest, where applicable, and real estate taxes. | |||||||||||||
Land under development, including the land under development held by the Company’s unconsolidated joint ventures and the related joint venture investments, is reviewed for potential write-downs when impairment indicators are present. In addition to considering market and economic conditions, the Company assesses land under development impairments on a community-by-community basis, analyzing, as applicable, current sales absorption levels, recent sales’ gross profit, and the dollar differential between the projected fully-developed cost of the lots and the current market price for lots. If indicators of impairment are present for a community, NVR performs an analysis to determine if the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts, and if so, impairment charges are required to be recorded if the fair value of such assets is less than their carrying amounts. For those assets deemed to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company’s determination of fair value is primarily based on discounting the estimated future cash flows at a rate commensurate with the inherent risks associated with the assets and related estimated cash flow streams. NVR does not believe that any of the land under development is impaired at this time. | |||||||||||||
Property, Plant, and Equipment | |||||||||||||
Property, plant, and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is based on the estimated useful lives of the assets using the straight-line method. Amortization of capital lease assets is included in depreciation expense. Model home furniture and fixtures are generally depreciated over a two-year period, office facilities and other equipment are depreciated over a period from three to ten years, production facilities are depreciated over periods of from five to forty years and property under capital leases is depreciated in a manner consistent with the Company’s depreciation policy for owned assets, or the lease-term if shorter. | |||||||||||||
Intangible Assets | |||||||||||||
On December 31, 2012, the Company acquired substantially all of the assets of Heartland Homes, Inc., which resulted in the Company recording finite-lived intangible assets and goodwill. The Company completed its annual assessment for impairment of goodwill and management determined that there was no impairment. As of December 31, 2014 and 2013, finite-lived intangible assets attributable to the Heartland Homes, Inc. acquisition, net of accumulated amortization, totaled $4,923 and $6,306, respectively. As of both December 31, 2014 and 2013, the goodwill value was $441. The remaining finite-lived intangible assets will be amortized on a straight-line basis over a weighted average life of 4 years. | |||||||||||||
Warranty/Product Liability Accruals | |||||||||||||
The Company establishes warranty and product liability reserves to provide for estimated future expenses as a result of construction and product defects, product recalls and litigation incidental to NVR’s homebuilding business. Liability estimates are determined based on management’s judgment considering such factors as historical experience, the likely current cost of corrective action, manufacturers’ and subcontractors’ participation in sharing the cost of corrective action, consultations with third party experts such as engineers, and discussions with the Company’s General Counsel and outside counsel retained to handle specific product liability cases. | |||||||||||||
Mortgage Loans Held for Sale, Derivatives and Hedging Activities | |||||||||||||
NVR originates several different loan products to its customers to finance the purchase of a home through its wholly-owned mortgage subsidiary, NVR Mortgage Finance, Inc. (“NVRM”). NVRM sells all of the loans it originates into the secondary market on a servicing released basis, typically within 30 days from origination. All of the loans that NVRM originates are underwritten to the standards and specifications of the ultimate investor. Those underwriting standards are typically equal to or more stringent than the underwriting standards required by Fannie Mae (“FNMA”), Department of Veterans Affairs (“VA”) and the Federal Housing Administration (“FHA”). Insofar as NVRM underwrites its originated loans to those standards, NVRM bears no increased concentration of credit risk from the issuance of loans, except in certain limited instances where early payment default occurs. NVRM employs a quality control department to ensure that its underwriting controls are effectively operating, and further assesses the underwriting function as part of its assessment of internal controls over financial reporting. NVRM maintains an allowance for losses on mortgage loans originated that reflects NVR’s judgment of the present loss exposure in the loans that NVRM has originated and sold. The allowance is calculated based on an analysis of historical experience and exposure (see Note 15 herein for further information). | |||||||||||||
Mortgage loans held for sale are recorded at fair value at closing and thereafter are carried at the lower of cost or fair value, net of deferred origination costs, until sold. | |||||||||||||
In the normal course of business, NVRM enters into contractual commitments to extend credit to buyers of single-family homes with fixed expiration dates. The commitments become effective when the borrowers “lock-in” a specified interest rate within time frames established by NVRM. All mortgagors are evaluated for credit worthiness prior to the extension of the commitment. Market risk arises if interest rates move adversely between the time of the “lock-in” of rates by the borrower and the sale date of the loan to a broker/dealer. To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, NVRM enters into optional or mandatory delivery forward sale contracts to sell whole loans and mortgage-backed securities to broker/dealers. The forward sale contracts lock in an interest rate and price for the sale of loans similar to the specific rate lock commitments. NVRM does not engage in speculative or trading derivative activities. Both the rate lock commitments to borrowers and the forward sale contracts to broker/dealers are undesignated derivatives, and, accordingly, are marked to fair value through earnings. At December 31, 2014, there were contractual commitments to extend credit to borrowers aggregating $237,989, and open forward delivery sale contracts aggregating $424,966 (see Note 14 herein for a description of the Company’s fair value accounting). | |||||||||||||
Earnings per Share | |||||||||||||
The following weighted average shares and share equivalents were used to calculate basic and diluted earnings per share for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average number of shares outstanding used to | 4,278 | 4,737 | 5,011 | ||||||||||
calculate basic EPS | |||||||||||||
Dilutive securities: | |||||||||||||
Stock options and restricted share units | 157 | 125 | 131 | ||||||||||
Weighted average number of shares and share equivalents | 4,435 | 4,862 | 5,142 | ||||||||||
outstanding used to calculate diluted EPS | |||||||||||||
The assumed proceeds used in the treasury method for calculating NVR’s diluted earnings per share includes the amount the employee must pay upon exercise, the amount of compensation cost attributed to future services not yet recognized and the amount of tax benefits that would be credited or charged to additional paid-in-capital assuming exercise of the stock option or vesting of the restricted share unit. The assumed amount credited to additional paid-in-capital equals the tax benefit from assumed exercise of stock options or the assumed vesting of restricted share units after consideration of the intrinsic value upon assumed exercise or vesting less the actual stock-based compensation expense to be recognized in the income statement. | |||||||||||||
The following stock options and restricted share units issued under equity incentive plans were outstanding during the years ended December 31, 2014, 2013 and 2012; however, they were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Anti-dilutive securities | 757 | 157 | 194 | ||||||||||
Revenues – Homebuilding Operations | |||||||||||||
NVR builds single-family detached homes, townhomes and condominium buildings, which generally are constructed on a pre-sold basis for the ultimate customer. Revenues are recognized at the time the unit is settled and title passes to the customer, adequate cash payment has been received and there is no continuing involvement. In situations where the buyer’s financing is originated by NVRM and the buyer has not made an adequate initial or continuing investment as prescribed by GAAP, the profit on such settlement is deferred until the sale of the related loan to a third-party investor has been completed. | |||||||||||||
Mortgage Banking Fees | |||||||||||||
Mortgage banking fees include income earned by NVRM for originating mortgage loans, servicing mortgage loans held on an interim basis, title fees, gains and losses on the sale of mortgage loans and mortgage servicing and other activities incidental to mortgage banking. Mortgage banking fees are generally recognized after the loan has been sold to an unaffiliated, third party investor. | |||||||||||||
Income Taxes | |||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on the deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||||||||||
ASC 740-10, Income Taxes, provides that a tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not (defined as a likelihood of more than 50%) that the position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits. If a tax position does not meet the more-likely-than-not recognition threshold, despite the Company’s belief that its filing position is supportable, the benefit of that tax position is not recognized in the statements of income. The Company recognizes interest related to unrecognized tax benefits as a component of income tax expense. Based on its historical experience in dealing with various taxing authorities, the Company has found that it is the administrative practice of the taxing authorities to not seek penalties from the Company for the tax positions it has taken on its returns, related to its unrecognized tax benefits. Therefore, the Company does not accrue penalties for the positions in which it has an unrecognized tax benefit. However, if such penalties were to be accrued, they would be recorded as a component of income tax expense. The Company recognizes unrecognized tax benefits in the period that the uncertainty is eliminated by either affirmative agreement of the uncertain tax position by the applicable taxing authority, by expiration of the applicable statute of limitation, or by determination in accordance with certain states’ administrative practices that the uncertain tax position has been effectively settled (see Note 11 herein for further information). | |||||||||||||
Financial Instruments | |||||||||||||
Except as otherwise noted herein, NVR believes that insignificant differences exist between the carrying value and the fair value of its financial instruments (see Note 14 herein for further information). | |||||||||||||
Equity-Based Compensation | |||||||||||||
The company accounts for its equity-based compensation in accordance with ASC 718, Compensation – Stock Compensation. ASC 718 requires an entity to recognize an expense within its income statement for all share-based payment arrangements, which includes employee stock option and restricted share unit plans. The expense is based on the grant-date fair value of the stock options and restricted share units granted, and is recognized ratably over the requisite service period. Recognition of compensation expense for the stock options which are subject to a performance condition are treated as a separate award from the “service-only” stock options, and expense is recognized when it becomes probable that the stated performance target will be achieved. The Company calculates the fair value of its non-publicly traded, employee stock options using the Black-Scholes option-pricing model. The grant date fair value of the restricted share units is the closing price of the Company’s common stock on the day immediately preceding the date of grant. The Company’s equity-based compensation programs are accounted for as equity-classified awards (see Note 12 herein for further discussion of equity-based compensation plans). | |||||||||||||
Comprehensive Income | |||||||||||||
For the years ended December 31, 2014, 2013 and 2012, comprehensive income equaled net income; therefore, a separate statement of comprehensive income is not included in the accompanying consolidated financial statements. | |||||||||||||
Recent Accounting Pronouncements | |||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard will replace most existing revenue recognition guidance in GAAP when it becomes effective. The standard is effective for the Company on January 1, 2017. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is currently evaluating the effect that the standard will have on its consolidated financial statements and related disclosures. | |||||||||||||
In August 2014, FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The standard requires an entity’s management to evaluate at each annual and interim reporting period whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued and to provide related footnote disclosures. The standard is effective for the first annual period ending after December 15, 2016, and interim periods thereafter. The Company does not believe that the adoption of this standard will have a material effect on its consolidated financial statements and related disclosures. |
Segment_Information_Nature_of_
Segment Information, Nature of Operations, and Certain Concentrations | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Segment Information, Nature of Operations, and Certain Concentrations | 2 | Segment Information, Nature of Operations, and Certain Concentrations | |||||||||||
NVR’s homebuilding operations primarily construct and sell single-family detached homes, townhomes and condominium buildings under four trade names: Ryan Homes, NVHomes, Fox Ridge Homes and Heartland Homes. The Ryan Homes and Fox Ridge Homes products are marketed primarily to first-time and first-time move-up buyers. Ryan Homes operates in twenty-seven metropolitan areas located in Maryland, Virginia, Washington, D.C., West Virginia, Pennsylvania, New York, North Carolina, South Carolina, Florida, Ohio, New Jersey, Delaware, Indiana, Illinois and Tennessee. Fox Ridge Homes operates in the Nashville, TN metropolitan area. The NVHomes and Heartland Homes products are marketed primarily to move-up and up-scale buyers. NVHomes operates in Delaware and the Washington, D.C., Baltimore, MD, Philadelphia, PA and Raleigh, NC metropolitan areas. Heartland Homes operates in the Pittsburgh, PA metropolitan area. NVR derived approximately 33% and 13% of its 2014 homebuilding revenues from the Washington, D.C. and Baltimore, MD metropolitan areas, respectively. | |||||||||||||
NVR’s mortgage banking segment is a regional mortgage banking operation. Substantially all of the mortgage banking segment’s loan closing activity is for NVR’s homebuilding customers. NVR’s mortgage banking business generates revenues primarily from origination fees, gains on sales of loans, and title fees. A substantial portion of the Company’s mortgage operations is conducted in the Washington, D.C. and Baltimore, MD metropolitan areas. | |||||||||||||
The following disclosure includes four homebuilding reportable segments that aggregate geographically the Company’s homebuilding operating segments, and the mortgage banking operations presented as a single reportable segment. The homebuilding reportable segments are comprised of operating divisions in the following geographic areas: | |||||||||||||
Mid Atlantic: Maryland, Virginia, West Virginia, Delaware and Washington, D.C. | |||||||||||||
North East: New Jersey and eastern Pennsylvania | |||||||||||||
Mid East: New York, Ohio, western Pennsylvania, Indiana and Illinois | |||||||||||||
South East: North Carolina, South Carolina, Florida and Tennessee | |||||||||||||
Homebuilding profit before tax includes all revenues and income generated from the sale of homes, less the cost of homes sold, selling, general and administrative expenses, and a corporate capital allocation charge. The corporate capital allocation charge eliminates in consolidation and is based on the segment’s average net assets employed. The corporate capital allocation charged to the operating segment allows the Chief Operating Decision Maker (“CODM”) to determine whether the operating segment’s results are providing the desired rate of return after covering the Company’s cost of capital. In addition, certain assets including goodwill and intangible assets, and consolidation adjustments as discussed further below, are not allocated to the operating segments as those assets are not 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 capital allocation charge. | |||||||||||||
In addition to the corporate capital allocation and contract land deposit impairments discussed above, the other reconciling items between segment profit and consolidated profit before tax include unallocated corporate overhead (including all management incentive compensation), equity-based compensation expense, consolidation adjustments and external corporate interest expense. NVR’s overhead functions, such as accounting, treasury and human resources are centrally performed and the costs are not allocated to the Company’s operating segments. Consolidation adjustments consist of such items necessary to convert the reportable segments’ results, which are predominantly maintained on a cash basis, to a full accrual basis for external financial statement presentation purposes, and are not allocated to the Company’s operating segments. External corporate interest expense 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 before taxes, assets, interest income, interest expense, depreciation and amortization and expenditures for property and equipment, with reconciliations to the amounts reported for the consolidated enterprise, where applicable: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues: | |||||||||||||
Homebuilding Mid Atlantic | $ | 2,617,108 | $ | 2,439,387 | $ | 1,877,905 | |||||||
Homebuilding North East | 376,862 | 332,681 | 278,715 | ||||||||||
Homebuilding Mid East | 892,513 | 908,198 | 630,367 | ||||||||||
Homebuilding South East | 488,576 | 454,215 | 334,257 | ||||||||||
Mortgage Banking | 69,509 | 76,786 | 63,406 | ||||||||||
Total consolidated revenues | $ | 4,444,568 | $ | 4,211,267 | $ | 3,184,650 | |||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Profit before taxes: | |||||||||||||
Homebuilding Mid Atlantic | $ | 271,965 | $ | 276,399 | $ | 189,089 | |||||||
Homebuilding North East | 33,390 | 14,294 | 21,529 | ||||||||||
Homebuilding Mid East | 47,538 | 55,537 | 39,847 | ||||||||||
Homebuilding South East | 37,525 | 35,001 | 20,674 | ||||||||||
Mortgage Banking | 30,388 | 42,075 | 38,135 | ||||||||||
Total segment profit | 420,806 | 423,306 | 309,274 | ||||||||||
Contract land deposit reserve adjustment (1) | 3,612 | 5,313 | 5,333 | ||||||||||
Equity-based compensation expense (2) | (63,227 | ) | (34,296 | ) | (64,841 | ) | |||||||
Corporate capital allocation (3) | 152,140 | 116,457 | 91,507 | ||||||||||
Unallocated corporate overhead | (61,108 | ) | (72,703 | ) | (70,258 | ) | |||||||
Consolidation adjustments and other | 23,867 | 2,362 | 10,858 | ||||||||||
Corporate interest expense (4) | (22,544 | ) | (21,743 | ) | (6,796 | ) | |||||||
Reconciling items sub-total | 32,740 | (4,610 | ) | (34,197 | ) | ||||||||
Consolidated profit before taxes | $ | 453,546 | $ | 418,696 | $ | 275,077 | |||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Assets: | |||||||||||||
Homebuilding Mid Atlantic | $ | 917,689 | $ | 810,270 | |||||||||
Homebuilding North East | 103,631 | 84,958 | |||||||||||
Homebuilding Mid East | 192,781 | 172,167 | |||||||||||
Homebuilding South East | 144,939 | 106,389 | |||||||||||
Mortgage Banking | 255,969 | 253,421 | |||||||||||
Total segment assets | 1,615,009 | 1,427,205 | |||||||||||
Consolidated variable interest entity | 3,590 | 7,268 | |||||||||||
Cash and cash equivalents | 514,780 | 844,274 | |||||||||||
Deferred taxes | 165,189 | 162,378 | |||||||||||
Intangible assets and goodwill | 54,291 | 55,674 | |||||||||||
Contract land deposit reserve | (56,074 | ) | (59,761 | ) | |||||||||
Consolidation adjustments and other | 54,550 | 49,110 | |||||||||||
Reconciling items sub-total | 736,326 | 1,058,943 | |||||||||||
Consolidated assets | $ | 2,351,335 | $ | 2,486,148 | |||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest Income: | |||||||||||||
Mortgage Banking | $ | 4,940 | $ | 4,983 | $ | 4,504 | |||||||
Total segment interest income | 4,940 | 4,983 | 4,504 | ||||||||||
Other unallocated interest income | 1,311 | 2,319 | 1,388 | ||||||||||
Consolidated interest income | $ | 6,251 | $ | 7,302 | $ | 5,892 | |||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest Expense: | |||||||||||||
Homebuilding Mid Atlantic | $ | 96,364 | $ | 72,351 | $ | 59,310 | |||||||
Homebuilding North East | 12,114 | 9,466 | 8,196 | ||||||||||
Homebuilding Mid East | 26,300 | 22,587 | 15,043 | ||||||||||
Homebuilding South East | 17,409 | 12,151 | 9,145 | ||||||||||
Mortgage Banking | 549 | 545 | 546 | ||||||||||
Total segment interest expense | 152,736 | 117,100 | 92,240 | ||||||||||
Corporate capital allocation | (152,140 | ) | (116,457 | ) | (91,507 | ) | |||||||
Senior notes and other interest | 22,544 | 21,742 | 6,796 | ||||||||||
Consolidated interest expense | $ | 23,140 | $ | 22,385 | $ | 7,529 | |||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation and Amortization: | |||||||||||||
Homebuilding Mid Atlantic | $ | 6,489 | $ | 4,784 | $ | 3,886 | |||||||
Homebuilding North East | 1,208 | 853 | 631 | ||||||||||
Homebuilding Mid East | 3,212 | 1,911 | 1,473 | ||||||||||
Homebuilding South East | 1,715 | 1,008 | 808 | ||||||||||
Mortgage Banking | 1,089 | 669 | 397 | ||||||||||
Total segment depreciation and amortization | 13,713 | 9,225 | 7,195 | ||||||||||
Unallocated corporate | 3,901 | 4,166 | 905 | ||||||||||
Consolidated depreciation and amortization | $ | 17,614 | $ | 13,391 | $ | 8,100 | |||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expenditures for Property and Equipment: | |||||||||||||
Homebuilding Mid Atlantic | $ | 9,047 | $ | 7,947 | $ | 3,595 | |||||||
Homebuilding North East | 2,311 | 1,454 | 1,703 | ||||||||||
Homebuilding Mid East | 6,982 | 3,282 | 1,886 | ||||||||||
Homebuilding South East | 3,472 | 2,662 | 1,260 | ||||||||||
Mortgage Banking | 2,580 | 2,933 | 1,169 | ||||||||||
Total segment expenditures for property and equipment | 24,392 | 18,278 | 9,613 | ||||||||||
Unallocated corporate | 7,280 | 738 | 2,752 | ||||||||||
Consolidated expenditures for property and equipment | $ | 31,672 | $ | 19,016 | $ | 12,365 | |||||||
-1 | This item represents changes to the contract land deposit impairment reserve, which are not allocated to the reportable segments. | ||||||||||||
-2 | The increase in equity-based compensation expense in 2014 is primarily attributable to the issuance of stock options under the NVR, Inc. 2014 Equity Incentive Plan (the “2014 Plan”) and restricted share units (“RSUs”) issued in the second quarter of 2013. Equity-based compensation expense was lower in 2013 due to RSUs issued in 2010 under the 2010 Equity Incentive Plan (the “2010 Plan”) becoming fully vested effective December 31, 2012 and an approximate $7,900 pre-tax compensation expense reversal in 2013 attributable to an adjustment of the stock option forfeiture rates based on the Company’s actual forfeiture experience. These reductions were partially offset by equity-based compensation expense incurred in 2013 related to RSUs issued in the second quarter of 2013 under the 2010 Plan. | ||||||||||||
-3 | This item represents the elimination of the corporate capital allocation charge included in the respective homebuilding reportable segments. The corporate capital allocation charge is based on the segment’s monthly average asset balance, and was as follows for the years presented: | ||||||||||||
Year Ended December 31, | |||||||||||||
Corporate Capital Allocation Charge: | 2014 | 2013 | 2012 | ||||||||||
Homebuilding Mid Atlantic | $ | 96,328 | $ | 72,271 | $ | 59,144 | |||||||
Homebuilding North East | 12,107 | 9,461 | 8,187 | ||||||||||
Homebuilding Mid East | 26,299 | 22,580 | 15,039 | ||||||||||
Homebuilding South East | 17,406 | 12,145 | 9,137 | ||||||||||
Total | $ | 152,140 | $ | 116,457 | $ | 91,507 | |||||||
-4 | Corporate interest expense is attributable primarily to interest on the Senior Notes which were issued in the third quarter of 2012. | ||||||||||||
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Equity Method Investments And Joint Ventures [Abstract] | |||||||||
Variable Interest Entities | 3 | 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 agreements. 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 the equity holders. Further, NVR does not share in any of the profit or loss generated by the project’s development. The profits and losses are passed directly to the developer’s equity holders. | |||||||||
The deposit placed by NVR pursuant to the 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 (“VIE”). 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 variable interest entity that most significantly impact the entity’s economic performance, and ii) the obligation to absorb losses of the VIE that could be significant to the VIE or the rights to receive benefits from the VIE that could be significant to the VIE. | |||||||||
NVR believes the activities that most significantly impact a development entity’s economic performance are the operating activities of the entity. Unless and until a development entity completes finished building lots through the development process to be able to sell, the process of which the development 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 December 31, 2014, NVR controlled approximately 62,800 lots through fixed price purchase agreements with deposits in cash and letters of credit totaling $348,400 and $1,700, 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. In addition, NVR has certain properties under contract with land owners that are expected to yield approximately 5,700 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 and letters of credit totaling approximately $2,300 and $3,000, respectively as of December 31, 2014, of which approximately $2,600 is refundable if NVR does not perform under the contract. NVR generally expects to assign the raw land contracts to a land developer and simultaneously enter into a lot purchase agreement with the assignee if the project is determined to be feasible. NVR’s total risk of loss related to contract land deposits as of December 31, 2014 and 2013 was as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Contract land deposits | $ | 350,750 | $ | 296,646 | |||||
Loss reserve on contract land deposits | (56,074 | ) | (59,761 | ) | |||||
Contract land deposits, net | 294,676 | 236,885 | |||||||
Contingent obligations in the form of letters of credit | 4,674 | 2,459 | |||||||
Contingent specific performance obligations (1) | 1,505 | 1,707 | |||||||
Total risk of loss | $ | 300,855 | $ | 241,051 | |||||
-1 | At December 31, 2014 and 2013, the Company was committed to purchase 10 and 13 finished lots under specific performance obligations, respectively. |
Joint_Ventures
Joint Ventures | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Equity Method Investments And Joint Ventures [Abstract] | |||||||||
Joint Ventures | 4 | Joint Ventures | |||||||
On a limited basis, NVR also obtains finished lots using joint venture limited liability corporations (“JVs”). The JVs are typically structured such that NVR is a non-controlling member and is at risk only for the amount the Company has invested, or committed to invest, in addition to any deposits placed under fixed price purchase agreements with the joint venture. NVR is not a borrower, guarantor or obligor on any debt of the JVs, as applicable. The Company enters into a standard fixed price purchase agreement to purchase lots from these JVs, and as a result has a variable interest in these JVs. | |||||||||
At December 31, 2014, the Company had an aggregate investment totaling approximately $82,000 in five JVs that are expected to produce approximately 8,800 finished lots, of which approximately 3,300 were not under contract with NVR. In addition, NVR had additional funding commitments in the aggregate totaling $11,850 to two of the JVs at December 31, 2014. The Company has determined that it is not the primary beneficiary of four of the JVs because NVR and the other JV partner either share power or the other JV partner has the controlling financial interest. The aggregate investment in unconsolidated JVs was approximately $80,100 and $90,500 at December 31, 2014 and 2013, respectively, and is reported in the “Other assets” line item on the accompanying consolidated balance sheets. For the remaining JV, NVR has concluded that it is the primary beneficiary because the Company has the controlling financial interest in the JV. | |||||||||
The condensed balance sheets at December 31, 2014 and 2013 of the consolidated JV were as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Cash | $ | 481 | $ | 668 | |||||
Restricted cash | 160 | 248 | |||||||
Other assets | 332 | 542 | |||||||
Land under development | 2,617 | 5,810 | |||||||
Total assets | $ | 3,590 | $ | 7,268 | |||||
Debt | $ | 64 | $ | 3,365 | |||||
Accrued expenses | 1,231 | 862 | |||||||
Equity | 2,295 | 3,041 | |||||||
Total liabilities and equity | $ | 3,590 | $ | 7,268 | |||||
During 2013, NVR invested an additional $11,000 in the Company’s existing JV with Morgan Stanley Real Estate Investing and $11,850 in a newly formed JV with an unrelated party. The newly formed JV is expected to produce approximately 1,300 lots with approximately 50% of those lots being sold to the Company. At December 31, 2013, the Company had an aggregate investment totaling approximately $92,700 in four JVs that were expected to produce approximately 9,300 finished lots, of which approximately 3,400 were not under contract with NVR. In addition, at December 31, 2013, NVR had additional funding commitments in the aggregate totaling $11,850 to two of the JVs. | |||||||||
Distributions received from the unconsolidated JVs are allocated between return of capital and distributions of earnings based on the ratio of capital contributed by NVR to the total expected returns for the respective JVs, and are classified within the accompanying consolidated statements of cash flows as cash flows from investing activities and operating activities, respectively. | |||||||||
Land_Under_Development
Land Under Development | 12 Months Ended | |
Dec. 31, 2014 | ||
Real Estate [Abstract] | ||
Land Under Development | 5 | Land Under Development |
As of December 31, 2014, NVR directly owned four separate raw parcels of land with a carrying value of $33,689 that it intends to develop into approximately 480 finished lots primarily for use in its homebuilding operations. Of the total finished lots, 94 lots are under contract to be sold to an unrelated party under lot purchase agreements. During 2014 and 2013, the Company sold 19 and 15 lots, respectively, to an unrelated party at an aggregate purchase price of approximately $3,100 and $2,600, respectively. The Company capitalizes interest costs to land under development during the active development of finished lots (see Note 6 for further discussion of capitalized interest). None of the raw parcels had any indicators of impairment as of December 31, 2014. Based on current market conditions, NVR may, on a limited basis, directly acquire additional raw parcels to develop into finished lots. | ||
As of December 31, 2013, NVR directly owned five separate raw parcels of land with a carrying value of $41,328 and expected to produce approximately 650 finished lots. |
Capitalized_Interest
Capitalized Interest | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Interest Costs Incurred [Abstract] | |||||||||
Capitalized Interest | 6 | 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 during the period in excess of the interest capitalizable based on the level of qualified assets is expensed in the period incurred. NVR’s interest costs incurred, capitalized, expensed and charged to cost of sales during the years ended December 31, 2014 and 2013 was as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Interest capitalized, beginning of period | $ | 3,294 | $ | 893 | |||||
Interest incurred | 24,994 | 25,048 | |||||||
Interest charged to interest expense | (23,140 | ) | (22,385 | ) | |||||
Interest charged to cost of sales | (1,076 | ) | (262 | ) | |||||
Interest capitalized, end of period | $ | 4,072 | $ | 3,294 | |||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |
Dec. 31, 2014 | ||
Related Party Transactions [Abstract] | ||
Related Party Transactions | 7 | Related Party Transactions |
During the year ended December 31, 2014, NVR entered into fixed price purchase agreements to purchase finished building lots for a total purchase price of approximately $40,800 with Elm Street Development, Inc. (“Elm Street”), which is controlled by one of the Company’s directors, William Moran. The independent members of the Company’s Board of Directors approved these transactions. During 2014, 2013 and 2012, NVR purchased developed lots at market prices from Elm Street for approximately $50,100, $38,400 and $54,600, respectively. The Company also continues to control a parcel of raw land expected to yield approximately 2,400 finished lots through a joint venture entered into with Elm Street during 2009. NVR did not make any additional capital contributions to that joint venture in 2014 or 2013. Further, during 2014, 2013 and 2012, the Company paid Elm Street $143 per year to manage the development of a property that the Company purchased from Elm Street in 2010. | ||
Property_Plant_and_Equipment_n
Property, Plant and Equipment, net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property Plant And Equipment [Abstract] | |||||||||
Property, Plant and Equipment, net | 8 | Property, Plant and Equipment, net | |||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Homebuilding: | |||||||||
Office facilities and other | $ | 29,326 | $ | 19,547 | |||||
Model home furniture and fixtures | 28,945 | 22,432 | |||||||
Production facilities | 47,796 | 39,396 | |||||||
Property under capital leases | — | 3,976 | |||||||
106,067 | 85,351 | ||||||||
Less: accumulated depreciation | (59,825 | ) | (52,752 | ) | |||||
$ | 46,242 | $ | 32,599 | ||||||
Mortgage Banking: | |||||||||
Office facilities and other | $ | 10,508 | $ | 8,118 | |||||
Less: accumulated depreciation | (4,319 | ) | (3,419 | ) | |||||
$ | 6,189 | $ | 4,699 | ||||||
Certain property, plant and equipment listed above is collateral for certain debt of NVR as more fully described in Note 9 herein. | |||||||||
Debt
Debt | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Debt | 9 | Debt | |||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Homebuilding: | |||||||||
Other term debt: | |||||||||
Capital lease obligations due in monthly installments through 2014 (a) | $ | — | $ | 115 | |||||
Senior notes (b) | $ | 599,166 | $ | 599,075 | |||||
Mortgage Banking: | |||||||||
Master repurchase agreement (c) | $ | — | $ | — | |||||
(a) | The capital lease ended in March 2014. The capital lease obligation had a fixed interest rate of 13.0% and was collateralized by buildings and equipment with a net book value of approximately $47 at December 31, 2013. | ||||||||
(b) | On September 10, 2012, NVR completed an offering for $600,000 of Senior Notes under a shelf registration statement filed on September 5, 2012 with the Securities and Exchange Commission (the “SEC”). The Senior Notes were issued at a discount to yield 3.97% and have been reflected net of the unamortized discount in the accompanying consolidated balance sheet. The offering of the Senior Notes resulted in aggregate net proceeds of approximately $593,900, after deducting underwriting discounts and other offering expenses. The Senior Notes mature on September 15, 2022 and bear interest at 3.95%, payable semi-annually in arrears on March 15 and September 15. The Senior Notes are senior unsecured obligations and rank equally in right of payment with any of NVR’s existing and future unsecured senior indebtedness, will rank senior in right of payment to any of NVR’s future indebtedness that is by its terms expressly subordinated to the Senior Notes and will be effectively subordinated to any of NVR’s existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness. The indenture governing the Senior Notes has, among other items, and subject to certain exceptions, covenants that restrict the Company’s ability to create, incur, assume or guarantee secured debt, enter into sale and leaseback transactions and conditions related to mergers and/or the sale of assets. | ||||||||
(c) | On July 30, 2014, NVRM renewed and amended its revolving mortgage repurchase agreement with U.S. Bank National Association (the “Repurchase Agreement”). The purpose of the Repurchase Agreement is to finance the origination of mortgage loans by NVRM. The Repurchase Agreement provides for loan purchases up to $25,000, subject to certain sub limits. The Repurchase Agreement expires on July 29, 2015. | ||||||||
Advances under the Repurchase Agreement carry a Pricing Rate based on the LIBOR Rate plus the LIBOR Margin, as determined under the Repurchase Agreement, provided that the Pricing Rate shall not be less than 2.825%. There are several restrictions on purchased loans, including that they cannot be sold to others, they cannot be pledged to anyone other than the agent, and they cannot support any other borrowing or repurchase agreement. As of December 31, 2014 and 2013, there was no debt outstanding under the Repurchase Agreement. There were no borrowing base limitations at December 31, 2014. | |||||||||
The Repurchase Agreement contains various affirmative and negative covenants. The negative covenants include, among others, certain limitations on transactions involving acquisitions, mergers, the incurrence of debt, sale of assets and creation of liens upon any of its Mortgage Notes. Additional covenants include (i) a tangible net worth requirement, (ii) a minimum liquidity requirement, (iii) a minimum net income requirement, and (iv) a maximum leverage ratio requirement. The Company was in compliance with all covenants under the Repurchase Agreement at December 31, 2014. | |||||||||
Common_Stock
Common Stock | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Common Stock | 10 | Common Stock | |||||||||||
There were approximately 4,049 and 4,434 common shares outstanding at December 31, 2014 and 2013, respectively. As of December 31, 2014, NVR had reacquired a total of approximately 23,800 shares of NVR common stock at an aggregate cost of approximately $5,876,000 since December 31, 1993. | |||||||||||||
The Company made the following share repurchases during the years indicated: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Aggregate Purchase Price | $ | 567,544 | $ | 554,491 | $ | 227,281 | |||||||
Number of Shares Repurchased | 508 | 581 | 286 | ||||||||||
Since 1999, the Company has issued shares from the treasury for all stock option exercises. There have been approximately 7,287 shares reissued from the treasury in satisfaction of stock option exercises, vesting of restricted share units and other employee benefit obligations. The Company issued 123, 102 and 222 such shares during 2014, 2013 and 2012, respectively. | |||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | 11 | Income Taxes | |||||||||||
The provision for income taxes consists of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 148,221 | $ | 137,675 | $ | 76,599 | |||||||
State | 28,881 | 30,352 | 3,066 | ||||||||||
Deferred: | |||||||||||||
Federal | (4,451 | ) | (13,402 | ) | 13,086 | ||||||||
State | (735 | ) | (2,406 | ) | 1,738 | ||||||||
$ | 171,916 | $ | 152,219 | $ | 94,489 | ||||||||
In addition to amounts applicable to income before taxes, the following income tax benefits were recorded in shareholders’ equity: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax benefits arising from compensation expense for | $ | 9,437 | $ | 20,636 | $ | 14,319 | |||||||
tax purposes in excess of amounts recognized for financial | |||||||||||||
statement purposes | |||||||||||||
Deferred income taxes on NVR’s consolidated balance sheets were comprised of the following: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Other accrued expenses and contract land deposit reserve | $ | 84,817 | $ | 90,372 | |||||||||
Deferred compensation | 7,500 | 8,049 | |||||||||||
Equity-based compensation expense | 46,257 | 35,298 | |||||||||||
Inventory | 11,153 | 11,099 | |||||||||||
Unrecognized tax benefit | 24,485 | 23,784 | |||||||||||
Other | 5,847 | 4,200 | |||||||||||
Total deferred tax assets | 180,059 | 172,802 | |||||||||||
Less: deferred tax liabilities | 7,371 | 4,290 | |||||||||||
Net deferred tax position | $ | 172,688 | $ | 168,512 | |||||||||
Deferred tax assets arise principally as a result of various accruals required for financial reporting purposes and equity-based compensation expense, which are not currently deductible for tax return purposes. | |||||||||||||
Management believes that the Company will have sufficient available carry-backs and future taxable income to make it more likely than not that the net deferred tax assets will be realized. Federal taxable income is estimated to be approximately $388,000 for the year ended December 31, 2014, and was $362,978 for the year ended December 31, 2013. | |||||||||||||
A reconciliation of income tax expense in the accompanying consolidated statements of income to the amount computed by applying the statutory federal income tax rate of 35% to income before taxes is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income taxes computed at the federal statutory rate | $ | 158,741 | $ | 146,544 | $ | 96,277 | |||||||
State income taxes, net of federal income tax benefit | 18,800 | 18,210 | 3,226 | ||||||||||
Other, net | (5,625 | ) | (12,535 | ) | (5,014 | ) | |||||||
$ | 171,916 | $ | 152,219 | $ | 94,489 | ||||||||
The Company’s effective tax rate in 2014, 2013 and 2012 was 37.90%, 36.36% and 34.35%, respectively. During 2014, the Company recognized income tax expense of approximately $7,000 due to the reversal of certain previously recognized tax deductions. During 2012, the Company reduced its provision for unrecognized tax benefits by $9,154, which reduced the 2012 effective tax rate. The reduction resulted from settlements with, and an audit by, certain taxing authorities during 2012 which led the Company to update its evaluation of the administrative practice in other states for similar uncertain tax positions to determine whether the positions taken in those states were effectively settled. | |||||||||||||
The Company files a consolidated U.S. federal income tax return, as well as state and local tax returns in all jurisdictions where the Company maintains operations. With few exceptions, the Company is no longer subject to income tax examinations by tax authorities for years prior to 2011. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at beginning of year | $ | 43,796 | $ | 40,244 | |||||||||
Additions based on tax positions related to the current year | 6,008 | 5,618 | |||||||||||
Reductions for tax positions of prior years | (3,800 | ) | (2,066 | ) | |||||||||
Settlements | — | — | |||||||||||
Balance at end of year | $ | 46,004 | $ | 43,796 | |||||||||
If recognized, the total amount of unrecognized tax benefits that would affect the effective tax rate (net of the federal tax benefit) is $29,902 as of December 31, 2014. | |||||||||||||
The Company recognizes interest related to unrecognized tax benefits as a component of income tax expense. For the year ended December 31, 2014, the Company recognized a net reversal of accrued interest on unrecognized tax benefits in the amount of $184. For the year ended December 31, 2013, the Company had a net addition to accrued interest on unrecognized tax benefits in the amount of $625. For the year ended December 31, 2012, the Company recognized a net reversal of accrued interest on unrecognized tax benefits in the amount of $4,116. As of December 31, 2014 and 2013, the Company had a total of $21,096 and $21,281, respectively, of accrued interest on unrecognized tax benefits which are included in “Accrued expenses and other liabilities” on the accompanying consolidated balance sheets. Based on its historical experience in dealing with various taxing authorities, the Company has found that it is the administrative practice of these authorities to not seek penalties from the Company for the tax positions it has taken on its returns, related to its unrecognized tax benefits. Therefore, the Company does not accrue penalties for the positions in which it has an unrecognized tax benefit. However, if such penalties were to be accrued, they would be recorded as a component of income tax expense. | |||||||||||||
The Company believes that within the next 12 months, it is reasonably possible that the unrecognized tax benefits as of December 31, 2014 will be reduced by approximately $6,339 due to statute expiration and effectively settled positions in various state jurisdictions. The Company is currently under audit by the state of Pennsylvania. | |||||||||||||
EquityBased_Compensation_Profi
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans | 12 | Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans | |||||||||||||||
Equity-Based Compensation Plans | |||||||||||||||||
NVR’s equity-based compensation plans provide for the granting of non-qualified stock options to purchase shares of NVR common stock (“Options”) and restricted share units (“RSUs”) to key management employees, including executive officers and Board members, of the Company. The exercise price of Options granted is equal to the closing price of the Company’s common stock on the New York Stock Exchange (the “NYSE”) on the day prior to the date of grant, and RSUs are issued at a $0 exercise price. Options are granted for a ten-year term and typically vest in separate tranches over periods of 3 to 6 years. The vesting for certain Options is contingent solely on continued employment or service as a Director, while vesting for other Options is contingent upon both continued employment or service as a Director and the achievement of a performance metric as discussed further in the summary description of the 2014 Plan below. RSUs generally vest in separate tranches over periods of 2 to 3 years, based solely on continued employment or continued service as a Director. At December 31, 2014, there was an aggregate of 1,201 options and 55 RSUs outstanding, and there were an additional 362 available shares to be granted under existing equity-based compensation plans. Of the available shares to be granted, up to 33 shares may be granted in the form of RSUs. | |||||||||||||||||
The following is a summary description of each of the Company’s equity-based compensation plans for any plan with grants outstanding at December 31, 2014: | |||||||||||||||||
— | During 1999, the Company’s shareholders approved the 1998 Management Long-Term Stock Option Plan (the “1998 Option Plan”). There were 1,000 Options authorized under the 1998 Option Plan. All Options were granted at an exercise price equal to the closing price of the Company’s common stock on the NYSE on the day prior to the date of grant. The Options expire 10 years after the dates upon which they were granted, and were fully vested as of December 31, 2013. There are no grants remaining available to issue under the 1998 Option Plan. | ||||||||||||||||
— | During 1999, the Company’s shareholders approved the 1998 Directors’ Long Term Stock Option Plan (the “1998 Directors’ Plan”). There were 150 Options to purchase shares of common stock authorized for grant to the Company’s outside directors under the 1998 Directors’ Plan. All Options were granted at an exercise price equal to the closing price of the Company’s common stock on the NYSE on the day prior to the date of grant. The outstanding Options were granted for a 10-year term and were fully vested as of December 31, 2012. There are no grants remaining available to issue under the 1998 Directors’ Plan. | ||||||||||||||||
— | During 2000, the Board approved the 2000 Broadly-Based Stock Option Plan (the “2000 Plan”). The Company did not seek approval from its shareholders for the 2000 Plan. There were 2,000 Options authorized under the 2000 Plan. All Options were granted at an exercise price equal to the closing price of the Company’s common stock on the NYSE on the day prior to the date of grant. Grants under the 2000 Plan were available to both employees and members of the Board. Options granted under the 2000 Plan expire 10 years from the date of grant, and generally vest annually in 25% increments based on the date of grant. There are no grants remaining available to issue under the 2000 Plan. | ||||||||||||||||
— | During 2010, the Company’s shareholders approved the 2010 Equity Incentive Plan (the “2010 Plan”). The 2010 Plan authorizes the Company to issue Options and RSUs to key management employees, including executive officers and Board members, to acquire up to an aggregate of 700 shares of the Company’s common stock. Of the 700 aggregate shares available to issue, up to 240 may be granted in the form of RSUs. All Options are granted at an exercise price equal to the closing price of the Company’s common stock on the NYSE on the day prior to the date of grant, and all RSUs are granted at a $0 exercise price. The Options are granted for a 10-year term. The RSUs and Options initially granted under the 2010 Plan each vested annually in 50% increments beginning December 31, 2011 and December 31, 2013, respectively. At December 31, 2014, there were 41 shares available to be granted under the 2010 Plan, of which 33 may be granted as RSUs. | ||||||||||||||||
— | During 2014, the Company’s shareholders approved the NVR, Inc. 2014 Equity Incentive Plan (the “2014 Plan”). The 2014 Plan authorizes the Company to issue Options to key management employees, including executive officers and Board members, to acquire up to an aggregate 950 shares of the Company’s common stock. Option grants under the 2014 Plan are generally divided such that vesting for 50% of the Option grant is solely contingent upon continued employment or continued service as a Director, while vesting for the remaining 50% of the Option grant is contingent upon both continued employment or service as a Director and the achievement of a performance metric based on the Company’s return on capital performance during 2014 through 2016. Options granted under the 2014 Plan generally vest annually over four years in 25% increments beginning on December 31, 2016. All Options are granted at an exercise price equal to the closing price of the Company’s common stock on the NYSE on the day prior to the date of grant. The Options are granted for a 10-year term. At December 31, 2014, there were 321 shares available to be granted under the 2014 Plan. | ||||||||||||||||
During 2014, the Company issued 634 Options under the 2014 Plan. The Options were granted at an exercise price equal to the closing price of the Company’s common stock on the day prior to the date of grant. Substantially all of the Options granted in 2014 will vest annually over four years in 25% increments beginning on December 31, 2016. Vesting for 338 of the Options granted is contingent both upon continued employment or continued service as a director and the Company’s return on capital performance during the years 2014 through 2016. Vesting for the other 296 Options granted under the 2014 Plan is contingent solely upon continued employment or continued service as a director. The Options expire ten years from the date of grant. | |||||||||||||||||
During 2014, the Company also issued 49 Options under the 2010 Plan. The Options were granted at an exercise price equal to the closing price of the Company’s common stock on the day prior to the date of grant. Substantially all of the 2010 Plan Options granted during 2014 under the 2010 Plan will vest annually over four years in 25% increments beginning on December 31, 2016. The vesting for the Options granted under the 2010 Plan is based solely on continued employment. The Options expire ten years from the date of grant. | |||||||||||||||||
The Company also issued 16 RSUs from the 2010 Plan during 2014. Each RSU was granted at a $0 exercise price. The RSUs vest in 33% increments on December 31, 2016, 2017 and 2018, based solely on continued employment. | |||||||||||||||||
The following table provides additional information relative to NVR’s equity-based compensation plans for the year ended December 31, 2014: | |||||||||||||||||
Shares | Weighted Avg. Per Share | Weighted Avg. Remaining | Aggregate | ||||||||||||||
Exercise Price | Contract Life (years) | Intrinsic Value | |||||||||||||||
Stock Options | |||||||||||||||||
Outstanding at December 31, 2013 | 667 | $ | 740.18 | ||||||||||||||
Granted | 683 | 1,095.69 | |||||||||||||||
Exercised | (118 | ) | 644.6 | ||||||||||||||
Forfeited | (31 | ) | 910.36 | ||||||||||||||
Outstanding at December 31, 2014 | 1,201 | $ | 947.39 | 7.9 | $ | 393,866 | |||||||||||
Exercisable at December 31, 2014 | 346 | $ | 676.37 | 5.1 | $ | 207,487 | |||||||||||
RSUs (1) | |||||||||||||||||
Outstanding at December 31, 2013 | 45 | ||||||||||||||||
Granted | 16 | ||||||||||||||||
Vested | (5 | ) | |||||||||||||||
Forfeited | (1 | ) | |||||||||||||||
Outstanding at December 31, 2014 | 55 | $ | 70,773 | ||||||||||||||
Vested, but not issued at December 31, 2014 | 2 | $ | 2,713 | ||||||||||||||
-1 | RSU grants were issued at a $0 exercise price. | ||||||||||||||||
To estimate the grant-date fair value of its Options, the Company uses the Black-Scholes option-pricing model (the “Pricing Model”). The Pricing Model estimates the per share fair value of an option on its date of grant based on the following factors: the option’s exercise price; the price of the underlying stock on the date of grant; the estimated dividend yield; a risk-free interest rate; the estimated option term; and the expected volatility. For the risk-free interest rate, the Company uses U.S. Treasury STRIPS which mature at approximately the same time as the option’s expected holding term. For expected volatility, NVR has concluded that its historical volatility over the option’s expected holding term provides the most reasonable basis for this estimate. The fair value of the Options granted during 2014, 2013 and 2012 was estimated on the grant date using the Pricing Model, based on the following assumptions: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Estimated option life | 5.16 years | 5.20 years | 4.95 years | ||||||||||||||
Risk free interest rate (range) | 1.06%-2.49% | 0.42%-2.10% | 0.35%-1.84% | ||||||||||||||
Expected volatility (range) | 18.26%-30.57% | 17.98%-32.72% | 17.71%-34.43% | ||||||||||||||
Expected dividend rate | 0.00% | 0.00% | 0.00% | ||||||||||||||
Weighted average grant-date fair value per share of | $ | 267.66 | $ | 268.13 | $ | 221.45 | |||||||||||
options granted | |||||||||||||||||
In accordance with ASC 718, Compensation – Stock Compensation, the fair value of the RSUs is measured as if they were vested and issued on the grant date. Additionally, under ASC 718, service-only restrictions on vesting of RSUs are not reflected in the fair value calculation at the grant date. As a result, the fair value of the RSUs was the closing price of the Company’s common stock on the day immediately preceding the date of grant. The weighted average fair value of the RSUs granted in the current year was $1,153.41 per share. | |||||||||||||||||
Compensation cost for Options and RSUs is recognized on a straight-line basis over the requisite service period for the entire award (from the date of grant through the period of the last separately vesting portion of the grant). For the recognition of equity-based compensation, the RSUs are treated as a separate award from the Options. Additionally, the Options which are subject to a performance condition are treated as a separate award from the “service-only” Options, and compensation expense is recognized when it becomes probable that the stated performance target will be achieved. The Company currently believes that it is probable that the performance condition will be satisfied at the target level and is recognizing compensation expense related to such Options accordingly. Compensation cost is recognized within the income statement in the same expense line as the cash compensation paid to the respective employees. ASC 718 also requires the Company to estimate forfeitures in calculating the expense related to equity-based compensation and requires that the compensation costs of equity-based awards be recognized net of estimated forfeitures. The impact on compensation costs due to changes in the expected forfeiture rate will be recognized in the period that they become known. In 2014, 2013 and 2012, the Company recognized approximately $63,227, $34,296, and $64,841 in equity-based compensation costs, respectively, and approximately $22,900, $12,100, and $23,900 in tax benefit related to equity-based compensation costs, respectively. In 2013, the Company reversed approximately $7,900 in equity-based compensation expense previously recorded to adjust stock option forfeiture rates based on actual forfeiture experience. The reversal was made to the accounts originally charged as follows; approximately $7,100 and $300 from homebuilding general and administrative and cost of sales expense, respectively, and approximately $500 from NVRM general and administrative expense. | |||||||||||||||||
As of December 31, 2014, the total unrecognized compensation cost for all outstanding Options and RSUs equaled approximately $195,400, net of estimated forfeitures. The unrecognized compensation cost will be recognized over each grant’s applicable vesting period with the latest vesting date being December 31, 2020. The weighted-average period over which the unrecognized compensation will be recorded is equal to approximately 2.7 years. | |||||||||||||||||
The Company settles Option exercises and vesting of RSUs by issuing shares of treasury stock to Option holders. Shares are relieved from the treasury account based on the weighted average cost of treasury shares acquired. During the years ended December 31, 2014, 2013 and 2012, the Company issued 123, 102 and 222 shares, respectively, from the treasury account for Option exercises and vesting of RSUs. Information with respect to the vested RSUs and exercised Options is as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Aggregate exercise proceeds (1) | $ | 76,153 | $ | 14,834 | $ | 73,211 | |||||||||||
Aggregate intrinsic value on exercise dates | $ | 62,136 | $ | 84,908 | $ | 101,334 | |||||||||||
(1) | Aggregate exercise proceeds include the Option exercise price received in cash or the fair market value of NVR stock surrendered by the optionee in lieu of cash. | ||||||||||||||||
Profit Sharing Plans | |||||||||||||||||
NVR has a trustee-administered, profit sharing retirement plan (the “Profit Sharing Plan”) and an Employee Stock Ownership Plan (“ESOP”) covering substantially all employees. The Profit Sharing Plan and the ESOP provide for annual discretionary contributions in amounts as determined by the NVR Board of Directors. The combined plan contribution for the years ended December 31, 2014, 2013 and 2012 was $16,980, $12,012 and $9,575, respectively. The ESOP purchased approximately 14 and 10 shares of NVR common stock in the open market for the 2014 and 2013 plan year contributions, respectively, using cash contributions provided by the Company. As of December 31, 2014, all shares held by the ESOP had been allocated to participants’ accounts. The 2014 plan year contribution was funded and fully allocated to participants in February 2015. | |||||||||||||||||
Deferred Compensation Plans | |||||||||||||||||
The Company has two deferred compensation plans (“Deferred Comp Plans”). The specific purpose of the Deferred Comp Plans is to i) establish a vehicle whereby named executive officers may defer the receipt of salary and bonus that otherwise would be nondeductible for Company tax purposes into a period where the Company would realize a tax deduction for the amounts paid, and ii) to enable certain employees who are subject to the Company’s stock holding requirements to acquire shares of the Company’s common stock on a pre-tax basis in order to more quickly meet, and maintain compliance with those stock holding requirements. Amounts deferred into the Deferred Comp Plans are invested in NVR common stock, held in a rabbi trust account, and are paid out in a fixed number of shares upon expiration of the deferral period. | |||||||||||||||||
The rabbi trust account held 109 shares of NVR common stock as of both December 31, 2014 and 2013. During 2013, 43 shares of NVR common stock were issued from the rabbi trust related to deferred compensation for which the deferral period ended. There were no shares of NVR common stock contributed to the rabbi trust in 2014 or 2013. Shares held by the Deferred Comp Plans are treated as outstanding shares in the Company’s earnings per share calculation for each of the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments And Contingencies Disclosure [Abstract] | |||||||||||||
Commitments and Contingent Liabilities | 13 | Commitments and Contingent Liabilities | |||||||||||
NVR is committed under multiple non-cancelable operating leases involving office space, model homes, production facilities, automobiles and equipment. Future minimum lease payments under these operating leases as of December 31, 2014 are as follows: | |||||||||||||
Year Ending December 31, | |||||||||||||
2015 | $ | 24,012 | |||||||||||
2016 | 17,352 | ||||||||||||
2017 | 15,024 | ||||||||||||
2018 | 11,654 | ||||||||||||
2019 | 11,155 | ||||||||||||
Thereafter | 28,092 | ||||||||||||
107,289 | |||||||||||||
Sublease income | (282 | ) | |||||||||||
$ | 107,007 | ||||||||||||
Total rent expense incurred under operating leases was $45,508, $39,608 and $33,399 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
The Company generally does not engage in the land development business. Instead, the Company typically acquires finished building lots at market prices from various development entities under fixed price purchase agreements. The purchase agreements require deposits that may be forfeited if the Company 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. The Company believes this lot acquisition strategy reduces the financial requirements and risks associated with direct land ownership and land development. The Company generally seeks to maintain control over a supply of lots believed to be suitable to meet its five-year business plan. At December 31, 2014, assuming that contractual development milestones are met, the Company is committed to placing additional forfeitable deposits with land developers under existing lot option contracts of approximately $75,200. The Company also has one specific performance contract pursuant to which the Company is committed to purchase 10 finished lots at an aggregate purchase price of approximately $1,500. | |||||||||||||
During the ordinary course of operating the homebuilding and mortgage banking businesses, the Company is required to enter into bond or letter of credit arrangements with local municipalities, government agencies, or land developers to collateralize its obligations under various contracts. The Company had approximately $59,400 of contingent obligations under such agreements, including approximately $11,400 for letters of credit issued under an uncommitted, collateralized letter of credit facility as of December 31, 2014. The Company believes it will fulfill its obligations under the related contracts and does not anticipate any material losses under these bonds or letters of credit. | |||||||||||||
The following table reflects the changes in the Company’s warranty reserve (see Note 1 herein for further discussion of warranty/product liability reserves): | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Warranty reserve, beginning of year | $ | 101,507 | $ | 62,742 | $ | 64,008 | |||||||
Provision | 51,668 | 82,860 | 41,138 | ||||||||||
Payments | (59,115 | ) | (44,095 | ) | (42,404 | ) | |||||||
Warranty reserve, end of year | $ | 94,060 | $ | 101,507 | $ | 62,742 | |||||||
The warranty reserve provision for 2013 included two warranty accrual charges totaling approximately $31,600. The first charge of approximately $15,600 related to remediation of primarily water infiltration issues in a single completed community. The second charge of approximately $16,000 was recorded to increase the warranty accrual for a non-recurring service issue. | |||||||||||||
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 in Mr. Tracy’s case could not proceed on such a basis. The Western District of New York reached the same conclusion in July 2014 regarding a separate case that Mr. Tracy’s attorneys brought on behalf of other SMRs. | |||||||||||||
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 has sought review in the U.S. Court of Appeals for the Second Circuit, in which he challenges the legal standard that the trial court applied in crafting its jury instructions regarding the outside sales exemption, in addition to rulings that the trial court made at earlier stages of the case. That appeal is fully briefed, and the parties are awaiting a ruling or an oral argument date. 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 the 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 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, August 2012 and November 2014 with representatives from both the EPA and DOJ. The Company has continued discussions with 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. |
Fair_Value
Fair Value | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||
14 | Fair Value | ||||||||||||||||||||||||
Financial Instruments | |||||||||||||||||||||||||
The estimated fair value of NVR’s Senior Notes as of December 31, 2014 was $622,800. 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 was $599,166 at December 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 primarily of cash equivalents, due to their short term nature. | |||||||||||||||||||||||||
Derivative Instruments and Mortgage Loans Held for Sale | |||||||||||||||||||||||||
In the normal course of business, NVRM enters into contractual commitments to extend credit to buyers of single-family homes with fixed expiration dates. The commitments become effective when the borrowers “lock-in” a specified interest rate within time frames established by NVRM. All mortgagors are evaluated for credit worthiness prior to the extension of the commitment. Market risk arises if interest rates move adversely between the time of the “lock-in” of rates by the borrower and the sale date of the loan to a broker/dealer. To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, NVRM enters into optional or mandatory delivery forward sale contracts to sell whole loans and mortgage-backed securities to broker/dealers. The forward sale contracts lock in an interest rate and price for the sale of loans similar to the specific rate lock commitments. NVRM does not engage in speculative or trading derivative activities. Both the rate lock commitments to borrowers and the forward sale contracts to broker/dealers are undesignated derivatives and, accordingly, are marked to fair value through earnings. At December 31, 2014, there were contractual commitments to extend credit to borrowers aggregating $237,989 and open forward delivery contracts aggregating $424,966, which hedge both the rate lock loan commitments and closed loans held for sale. | |||||||||||||||||||||||||
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 includes, as applicable: | |||||||||||||||||||||||||
i) | the assumed gain/loss of the expected resultant loan sale (Level 2); | ||||||||||||||||||||||||
ii) | the effects of interest rate movements between the date of the rate lock and the balance sheet date (Level 2); and | ||||||||||||||||||||||||
iii) | the value of the servicing rights associated with the loan (Level 2). | ||||||||||||||||||||||||
The assumed gain/loss considers the amount, if any, that NVRM 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, 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, which averaged 114 basis points of the loan amount as of December 31, 2014, is included in the fair value measurement and is based upon contractual terms with investors and varies depending on the loan type. NVRM assumes an approximate 11% 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 $205,664 included on the accompanying consolidated balance sheet has been increased by $2,359 from the aggregate principal balance of $203,305. | |||||||||||||||||||||||||
The undesignated derivative instruments are included on the accompanying consolidated balance sheet, as of December 31, 2014, as follows: | |||||||||||||||||||||||||
Balance Sheet Location | Fair Value | ||||||||||||||||||||||||
Derivative Assets: | |||||||||||||||||||||||||
Rate lock commitments | NVRM - Other assets | $ | 2,374 | ||||||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||||||
Forward sales contracts | NVRM - Accounts payable and other liabilities | $ | 909 | ||||||||||||||||||||||
The fair value measurement as of December 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 | $ | 237,989 | $ | (602 | ) | $ | 559 | $ | 2,417 | $ | — | $ | 2,374 | ||||||||||||
Forward sales contracts | $ | 424,966 | — | — | — | (909 | ) | (909 | ) | ||||||||||||||||
Mortgages held for sale | $ | 203,305 | (354 | ) | 423 | 2,290 | — | 2,359 | |||||||||||||||||
Total Fair Value Measurement | $ | (956 | ) | $ | 982 | $ | 4,707 | $ | (909 | ) | $ | 3,824 | |||||||||||||
For the years ended December 31, 2014 and 2013, NVRM recorded a fair value adjustment to income of $3,305 and $3,021, respectively. For the year ended December 31, 2012 NVRM recorded a fair value adjustment to expense of $2,431. 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. |
Mortgage_Loan_Loss_Allowance
Mortgage Loan Loss Allowance | 12 Months Ended | |
Dec. 31, 2014 | ||
Text Block [Abstract] | ||
Mortgage Loan Loss Allowance | 15 | Mortgage Loan Loss Allowance |
During the years ended December 31, 2014, 2013 and 2012, the Company recognized pre-tax charges for loan losses related to mortgage loans sold of approximately $2,400, $2,300 and $1,300, respectively. Included in the Mortgage Banking segment’s “Accounts payable and other liabilities” line item on the accompanying consolidated balance sheets is a mortgage loan loss allowance equal to approximately $10,000 and $8,200 at December 31, 2014 and 2013, respectively. | ||
Quarterly_Results_unaudited
Quarterly Results (unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Results (unaudited) | 16 | Quarterly Results (unaudited) | |||||||||||||||
The following table sets forth unaudited selected financial data and operating information on a quarterly basis for the years ended December 31, 2014 and 2013. | |||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||
4th | 3rd | 2nd | 1st | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenues – homebuilding operations | $ | 1,306,632 | $ | 1,185,160 | $ | 1,084,080 | $ | 799,187 | |||||||||
Gross profit – homebuilding operations | $ | 236,031 | $ | 225,105 | $ | 201,302 | $ | 144,035 | |||||||||
Mortgage banking fees | $ | 21,406 | $ | 18,006 | $ | 17,974 | $ | 12,123 | |||||||||
Net income | $ | 99,451 | $ | 90,152 | $ | 68,178 | $ | 23,849 | |||||||||
Diluted earnings per share | $ | 23.24 | $ | 20.7 | $ | 15.17 | $ | 5.16 | |||||||||
Contracts for sale, net of cancellations (units) | 2,713 | 2,936 | 3,415 | 3,325 | |||||||||||||
Settlements (units) | 3,469 | 3,236 | 2,943 | 2,211 | |||||||||||||
Backlog, end of period (units) | 5,475 | 6,231 | 6,531 | 6,059 | |||||||||||||
Loans closed | $ | 881,930 | $ | 803,125 | $ | 675,625 | $ | 472,933 | |||||||||
Year Ended December 31, 2013 | |||||||||||||||||
4th | 3rd | 2nd | 1st | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenues – homebuilding operations | $ | 1,223,808 | $ | 1,167,595 | $ | 992,210 | $ | 750,868 | |||||||||
Gross profit – homebuilding operations | $ | 222,393 | $ | 203,179 | $ | 157,922 | $ | 126,783 | |||||||||
Mortgage banking fees | $ | 18,344 | $ | 21,372 | $ | 17,682 | $ | 19,388 | |||||||||
Net income | $ | 97,811 | $ | 82,935 | $ | 50,690 | $ | 35,041 | |||||||||
Diluted earnings per share | $ | 21.15 | $ | 17.67 | $ | 10.11 | $ | 6.84 | |||||||||
Contracts for sale, net of cancellations (units) | 2,631 | 2,381 | 3,278 | 3,510 | |||||||||||||
Settlements (units) | 3,342 | 3,342 | 2,878 | 2,272 | |||||||||||||
Backlog, end of period (units) | 4,945 | 5,656 | 6,617 | 6,217 | |||||||||||||
Loans closed | $ | 721,926 | $ | 695,930 | $ | 646,450 | $ | 473,766 | |||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Principles of Consolidation | Principles of Consolidation | ||||||||||||
The accompanying consolidated financial statements include the accounts of NVR, Inc. and its subsidiaries (“NVR” or the “Company”) and certain other entities in which the Company is deemed to be the primary beneficiary (see Notes 3 and 4 herein for additional information). All significant intercompany transactions have been eliminated in consolidation. | |||||||||||||
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements | ||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Management continually evaluates the estimates used to prepare the consolidated financial statements and updates those estimates as necessary. In general, the Company’s estimates are based on historical experience, on information from third party professionals, and other various assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ materially from those estimates made by management. | |||||||||||||
Reclassifications | Reclassifications | ||||||||||||
Certain prior year amounts in the consolidated financial statements have been reclassified to conform to the 2014 presentation. Reclassifications did not impact net income, total assets or total liabilities, or statement of cash flow classifications. | |||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||||||
Cash and cash equivalents include short-term investments with original maturities of three months or less. At December 31, 2014 and 2013, $481 and $668, respectively, of cash related to a consolidated variable interest entity is included in “Assets related to consolidated variable interest entity” on the accompanying consolidated balance sheet. | |||||||||||||
The homebuilding segment had restricted cash of $24,106 and $20,563 at December 31, 2014 and 2013, respectively. Restricted cash in both 2014 and 2013 was attributable to holding requirements related to outstanding letters of credit issued under the Company’s letter of credit agreement as discussed further in Note 13 herein. In addition, restricted cash relates to customer deposits for certain home sales. Restricted cash is recorded in “Other assets” in the homebuilding section of the accompanying consolidated balance sheets. | |||||||||||||
The mortgage banking segment had restricted cash of $1,947 and $2,860 at December 31, 2014 and 2013, respectively, which included amounts collected from customers for loans in process and closed mortgage loans held for sale. The mortgage banking segment’s restricted cash is recorded in “Other assets” in the mortgage banking section of the accompanying consolidated balance sheets. | |||||||||||||
Homebuilding Inventory | Homebuilding Inventory | ||||||||||||
The carrying value of inventory is stated at the lower of cost or market value. Cost of lots and completed and uncompleted housing units represent the accumulated actual cost of the units. Field construction supervisors’ salaries and related direct overhead expenses are included in inventory costs. Interest costs are not capitalized into inventory, with the exception of land under development and joint venture investments, as applicable (see below). Upon settlement, the cost of the unit is expensed on a specific identification basis. Cost of building materials is determined on a first-in, first-out basis. | |||||||||||||
Sold inventory is evaluated for impairment based on the contractual selling price compared to the total estimated cost to construct. Unsold inventory is evaluated for impairment by analyzing recent comparable sales prices within the applicable community compared to the costs incurred to date plus the expected costs to complete. Any calculated impairments are recorded immediately. | |||||||||||||
Contract Land Deposits | Contract Land Deposits | ||||||||||||
The Company purchases finished lots under fixed price purchase agreements that require deposits that may be forfeited if NVR fails to perform under the contract. The deposits are in the form of cash or letters of credit in varying amounts and represent a percentage of the aggregate purchase price of the finished lots. | |||||||||||||
NVR maintains an allowance for losses on contract land deposits that reflects the Company’s judgment of the present loss exposure in the existing contract land deposit portfolio at the end of the reporting period. To analyze contract land deposit impairments, NVR utilizes an Accounting Standards Codification (“ASC”) 450, Contingencies, loss contingency analysis that is conducted each quarter. In addition to considering market and economic conditions, NVR assesses contract land deposit impairments on a community-by-community basis pursuant to the purchase contract terms, analyzing, as applicable, current sales absorption levels, recent sales’ gross profit, the dollar differential between the contractual purchase price and the current market price for lots, a developer’s financial stability, a developer’s financial ability or willingness to reduce lot prices to current market prices, and the contract’s default status by either the Company or the developer along with an analysis of the expected outcome of any such default. | |||||||||||||
NVR’s analysis is focused on whether the Company can sell houses profitably in a particular community in the current market with which the Company is faced. Because the Company does not own the finished lots on which the Company has placed a contract land deposit, if the above analysis leads to a determination that the Company cannot sell homes profitably at the current contractual lot price, the Company then determines whether it will elect to default under the contract, forfeit the deposit and terminate the contract, or whether the Company will attempt to restructure the lot purchase contract, which may require it to forfeit the deposit to obtain contract concessions from a developer. The Company also assesses whether impairment is present due to collectability issues resulting from a developer’s non-performance because of financial or other conditions. | |||||||||||||
For the years ended December 31, 2014, 2013 and 2012, the Company recognized pre-tax recoveries of approximately $225, $5,300 and $2,000, respectively, of contract land deposits previously determined to be uncollectible. The contract land deposit asset on the accompanying consolidated balance sheets is shown net of an approximate $56,100 and $59,800 impairment valuation allowance at December 31, 2014, and 2013, respectively. | |||||||||||||
Land Under Development | Land Under Development | ||||||||||||
On a very limited basis, NVR directly acquires raw parcels of land already zoned for its intended use to develop into finished lots. Land under development includes the land acquisition costs, direct improvement costs, capitalized interest, where applicable, and real estate taxes. | |||||||||||||
Land under development, including the land under development held by the Company’s unconsolidated joint ventures and the related joint venture investments, is reviewed for potential write-downs when impairment indicators are present. In addition to considering market and economic conditions, the Company assesses land under development impairments on a community-by-community basis, analyzing, as applicable, current sales absorption levels, recent sales’ gross profit, and the dollar differential between the projected fully-developed cost of the lots and the current market price for lots. If indicators of impairment are present for a community, NVR performs an analysis to determine if the undiscounted cash flows estimated to be generated by those assets are less than their carrying amounts, and if so, impairment charges are required to be recorded if the fair value of such assets is less than their carrying amounts. For those assets deemed to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. The Company’s determination of fair value is primarily based on discounting the estimated future cash flows at a rate commensurate with the inherent risks associated with the assets and related estimated cash flow streams. NVR does not believe that any of the land under development is impaired at this time. | |||||||||||||
Property, Plant, and Equipment | Property, Plant, and Equipment | ||||||||||||
Property, plant, and equipment are carried at cost less accumulated depreciation and amortization. Depreciation is based on the estimated useful lives of the assets using the straight-line method. Amortization of capital lease assets is included in depreciation expense. Model home furniture and fixtures are generally depreciated over a two-year period, office facilities and other equipment are depreciated over a period from three to ten years, production facilities are depreciated over periods of from five to forty years and property under capital leases is depreciated in a manner consistent with the Company’s depreciation policy for owned assets, or the lease-term if shorter. | |||||||||||||
Intangible Assets | Intangible Assets | ||||||||||||
On December 31, 2012, the Company acquired substantially all of the assets of Heartland Homes, Inc., which resulted in the Company recording finite-lived intangible assets and goodwill. The Company completed its annual assessment for impairment of goodwill and management determined that there was no impairment. As of December 31, 2014 and 2013, finite-lived intangible assets attributable to the Heartland Homes, Inc. acquisition, net of accumulated amortization, totaled $4,923 and $6,306, respectively. As of both December 31, 2014 and 2013, the goodwill value was $441. The remaining finite-lived intangible assets will be amortized on a straight-line basis over a weighted average life of 4 years. | |||||||||||||
Warranty/Product Liability Accruals | Warranty/Product Liability Accruals | ||||||||||||
The Company establishes warranty and product liability reserves to provide for estimated future expenses as a result of construction and product defects, product recalls and litigation incidental to NVR’s homebuilding business. Liability estimates are determined based on management’s judgment considering such factors as historical experience, the likely current cost of corrective action, manufacturers’ and subcontractors’ participation in sharing the cost of corrective action, consultations with third party experts such as engineers, and discussions with the Company’s General Counsel and outside counsel retained to handle specific product liability cases. | |||||||||||||
Mortgage Loans Held for Sale, Derivatives and Hedging Activities | Mortgage Loans Held for Sale, Derivatives and Hedging Activities | ||||||||||||
NVR originates several different loan products to its customers to finance the purchase of a home through its wholly-owned mortgage subsidiary, NVR Mortgage Finance, Inc. (“NVRM”). NVRM sells all of the loans it originates into the secondary market on a servicing released basis, typically within 30 days from origination. All of the loans that NVRM originates are underwritten to the standards and specifications of the ultimate investor. Those underwriting standards are typically equal to or more stringent than the underwriting standards required by Fannie Mae (“FNMA”), Department of Veterans Affairs (“VA”) and the Federal Housing Administration (“FHA”). Insofar as NVRM underwrites its originated loans to those standards, NVRM bears no increased concentration of credit risk from the issuance of loans, except in certain limited instances where early payment default occurs. NVRM employs a quality control department to ensure that its underwriting controls are effectively operating, and further assesses the underwriting function as part of its assessment of internal controls over financial reporting. NVRM maintains an allowance for losses on mortgage loans originated that reflects NVR’s judgment of the present loss exposure in the loans that NVRM has originated and sold. The allowance is calculated based on an analysis of historical experience and exposure (see Note 15 herein for further information). | |||||||||||||
Mortgage loans held for sale are recorded at fair value at closing and thereafter are carried at the lower of cost or fair value, net of deferred origination costs, until sold. | |||||||||||||
In the normal course of business, NVRM enters into contractual commitments to extend credit to buyers of single-family homes with fixed expiration dates. The commitments become effective when the borrowers “lock-in” a specified interest rate within time frames established by NVRM. All mortgagors are evaluated for credit worthiness prior to the extension of the commitment. Market risk arises if interest rates move adversely between the time of the “lock-in” of rates by the borrower and the sale date of the loan to a broker/dealer. To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, NVRM enters into optional or mandatory delivery forward sale contracts to sell whole loans and mortgage-backed securities to broker/dealers. The forward sale contracts lock in an interest rate and price for the sale of loans similar to the specific rate lock commitments. NVRM does not engage in speculative or trading derivative activities. Both the rate lock commitments to borrowers and the forward sale contracts to broker/dealers are undesignated derivatives, and, accordingly, are marked to fair value through earnings. At December 31, 2014, there were contractual commitments to extend credit to borrowers aggregating $237,989, and open forward delivery sale contracts aggregating $424,966 (see Note 14 herein for a description of the Company’s fair value accounting). | |||||||||||||
Earnings Per Share | Earnings per Share | ||||||||||||
The following weighted average shares and share equivalents were used to calculate basic and diluted earnings per share for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average number of shares outstanding used to | 4,278 | 4,737 | 5,011 | ||||||||||
calculate basic EPS | |||||||||||||
Dilutive securities: | |||||||||||||
Stock options and restricted share units | 157 | 125 | 131 | ||||||||||
Weighted average number of shares and share equivalents | 4,435 | 4,862 | 5,142 | ||||||||||
outstanding used to calculate diluted EPS | |||||||||||||
The assumed proceeds used in the treasury method for calculating NVR’s diluted earnings per share includes the amount the employee must pay upon exercise, the amount of compensation cost attributed to future services not yet recognized and the amount of tax benefits that would be credited or charged to additional paid-in-capital assuming exercise of the stock option or vesting of the restricted share unit. The assumed amount credited to additional paid-in-capital equals the tax benefit from assumed exercise of stock options or the assumed vesting of restricted share units after consideration of the intrinsic value upon assumed exercise or vesting less the actual stock-based compensation expense to be recognized in the income statement. | |||||||||||||
The following stock options and restricted share units issued under equity incentive plans were outstanding during the years ended December 31, 2014, 2013 and 2012; however, they were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Anti-dilutive securities | 757 | 157 | 194 | ||||||||||
Revenues-Homebuilding Operations | Revenues – Homebuilding Operations | ||||||||||||
NVR builds single-family detached homes, townhomes and condominium buildings, which generally are constructed on a pre-sold basis for the ultimate customer. Revenues are recognized at the time the unit is settled and title passes to the customer, adequate cash payment has been received and there is no continuing involvement. In situations where the buyer’s financing is originated by NVRM and the buyer has not made an adequate initial or continuing investment as prescribed by GAAP, the profit on such settlement is deferred until the sale of the related loan to a third-party investor has been completed. | |||||||||||||
Mortgage Banking Fees | Mortgage Banking Fees | ||||||||||||
Mortgage banking fees include income earned by NVRM for originating mortgage loans, servicing mortgage loans held on an interim basis, title fees, gains and losses on the sale of mortgage loans and mortgage servicing and other activities incidental to mortgage banking. Mortgage banking fees are generally recognized after the loan has been sold to an unaffiliated, third party investor. | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on the deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||||||||||
ASC 740-10, Income Taxes, provides that a tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not (defined as a likelihood of more than 50%) that the position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits. If a tax position does not meet the more-likely-than-not recognition threshold, despite the Company’s belief that its filing position is supportable, the benefit of that tax position is not recognized in the statements of income. The Company recognizes interest related to unrecognized tax benefits as a component of income tax expense. Based on its historical experience in dealing with various taxing authorities, the Company has found that it is the administrative practice of the taxing authorities to not seek penalties from the Company for the tax positions it has taken on its returns, related to its unrecognized tax benefits. Therefore, the Company does not accrue penalties for the positions in which it has an unrecognized tax benefit. However, if such penalties were to be accrued, they would be recorded as a component of income tax expense. The Company recognizes unrecognized tax benefits in the period that the uncertainty is eliminated by either affirmative agreement of the uncertain tax position by the applicable taxing authority, by expiration of the applicable statute of limitation, or by determination in accordance with certain states’ administrative practices that the uncertain tax position has been effectively settled (see Note 11 herein for further information). | |||||||||||||
Financial Instruments | Financial Instruments | ||||||||||||
Except as otherwise noted herein, NVR believes that insignificant differences exist between the carrying value and the fair value of its financial instruments (see Note 14 herein for further information). | |||||||||||||
Equity-Based Compensation | Equity-Based Compensation | ||||||||||||
The company accounts for its equity-based compensation in accordance with ASC 718, Compensation – Stock Compensation. ASC 718 requires an entity to recognize an expense within its income statement for all share-based payment arrangements, which includes employee stock option and restricted share unit plans. The expense is based on the grant-date fair value of the stock options and restricted share units granted, and is recognized ratably over the requisite service period. Recognition of compensation expense for the stock options which are subject to a performance condition are treated as a separate award from the “service-only” stock options, and expense is recognized when it becomes probable that the stated performance target will be achieved. The Company calculates the fair value of its non-publicly traded, employee stock options using the Black-Scholes option-pricing model. The grant date fair value of the restricted share units is the closing price of the Company’s common stock on the day immediately preceding the date of grant. The Company’s equity-based compensation programs are accounted for as equity-classified awards (see Note 12 herein for further discussion of equity-based compensation plans). | |||||||||||||
Comprehensive Income | Comprehensive Income | ||||||||||||
For the years ended December 31, 2014, 2013 and 2012, comprehensive income equaled net income; therefore, a separate statement of comprehensive income is not included in the accompanying consolidated financial statements. | |||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The standard will replace most existing revenue recognition guidance in GAAP when it becomes effective. The standard is effective for the Company on January 1, 2017. Early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company has not yet selected a transition method and is currently evaluating the effect that the standard will have on its consolidated financial statements and related disclosures. | |||||||||||||
In August 2014, FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The standard requires an entity’s management to evaluate at each annual and interim reporting period whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued and to provide related footnote disclosures. The standard is effective for the first annual period ending after December 15, 2016, and interim periods thereafter. The Company does not believe that the adoption of this standard will have a material effect on its consolidated financial statements and related disclosures. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Weighted Average Shares and Share Equivalents Used to Calculate Basic and Diluted Earnings Per Share | The following weighted average shares and share equivalents were used to calculate basic and diluted earnings per share for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average number of shares outstanding used to | 4,278 | 4,737 | 5,011 | ||||||||||
calculate basic EPS | |||||||||||||
Dilutive securities: | |||||||||||||
Stock options and restricted share units | 157 | 125 | 131 | ||||||||||
Weighted average number of shares and share equivalents | 4,435 | 4,862 | 5,142 | ||||||||||
outstanding used to calculate diluted EPS | |||||||||||||
Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following stock options and restricted share units issued under equity incentive plans were outstanding during the years ended December 31, 2014, 2013 and 2012; however, they were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Anti-dilutive securities | 757 | 157 | 194 | ||||||||||
Segment_Information_Nature_of_1
Segment Information, Nature of Operations, and Certain Concentrations (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Revenues | Following are tables presenting segment revenues, profit before taxes, assets, interest income, interest expense, depreciation and amortization and expenditures for property and equipment, with reconciliations to the amounts reported for the consolidated enterprise, where applicable: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenues: | |||||||||||||
Homebuilding Mid Atlantic | $ | 2,617,108 | $ | 2,439,387 | $ | 1,877,905 | |||||||
Homebuilding North East | 376,862 | 332,681 | 278,715 | ||||||||||
Homebuilding Mid East | 892,513 | 908,198 | 630,367 | ||||||||||
Homebuilding South East | 488,576 | 454,215 | 334,257 | ||||||||||
Mortgage Banking | 69,509 | 76,786 | 63,406 | ||||||||||
Total consolidated revenues | $ | 4,444,568 | $ | 4,211,267 | $ | 3,184,650 | |||||||
Profit before Taxes | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Profit before taxes: | |||||||||||||
Homebuilding Mid Atlantic | $ | 271,965 | $ | 276,399 | $ | 189,089 | |||||||
Homebuilding North East | 33,390 | 14,294 | 21,529 | ||||||||||
Homebuilding Mid East | 47,538 | 55,537 | 39,847 | ||||||||||
Homebuilding South East | 37,525 | 35,001 | 20,674 | ||||||||||
Mortgage Banking | 30,388 | 42,075 | 38,135 | ||||||||||
Total segment profit | 420,806 | 423,306 | 309,274 | ||||||||||
Contract land deposit reserve adjustment (1) | 3,612 | 5,313 | 5,333 | ||||||||||
Equity-based compensation expense (2) | (63,227 | ) | (34,296 | ) | (64,841 | ) | |||||||
Corporate capital allocation (3) | 152,140 | 116,457 | 91,507 | ||||||||||
Unallocated corporate overhead | (61,108 | ) | (72,703 | ) | (70,258 | ) | |||||||
Consolidation adjustments and other | 23,867 | 2,362 | 10,858 | ||||||||||
Corporate interest expense (4) | (22,544 | ) | (21,743 | ) | (6,796 | ) | |||||||
Reconciling items sub-total | 32,740 | (4,610 | ) | (34,197 | ) | ||||||||
Consolidated profit before taxes | $ | 453,546 | $ | 418,696 | $ | 275,077 | |||||||
-1 | This item represents changes to the contract land deposit impairment reserve, which are not allocated to the reportable segments. | ||||||||||||
-2 | The increase in equity-based compensation expense in 2014 is primarily attributable to the issuance of stock options under the NVR, Inc. 2014 Equity Incentive Plan (the “2014 Plan”) and restricted share units (“RSUs”) issued in the second quarter of 2013. Equity-based compensation expense was lower in 2013 due to RSUs issued in 2010 under the 2010 Equity Incentive Plan (the “2010 Plan”) becoming fully vested effective December 31, 2012 and an approximate $7,900 pre-tax compensation expense reversal in 2013 attributable to an adjustment of the stock option forfeiture rates based on the Company’s actual forfeiture experience. These reductions were partially offset by equity-based compensation expense incurred in 2013 related to RSUs issued in the second quarter of 2013 under the 2010 Plan. | ||||||||||||
-3 | This item represents the elimination of the corporate capital allocation charge included in the respective homebuilding reportable segments. The corporate capital allocation charge is based on the segment’s monthly average asset balance, and was as follows for the years presented: | ||||||||||||
Year Ended December 31, | |||||||||||||
Corporate Capital Allocation Charge: | 2014 | 2013 | 2012 | ||||||||||
Homebuilding Mid Atlantic | $ | 96,328 | $ | 72,271 | $ | 59,144 | |||||||
Homebuilding North East | 12,107 | 9,461 | 8,187 | ||||||||||
Homebuilding Mid East | 26,299 | 22,580 | 15,039 | ||||||||||
Homebuilding South East | 17,406 | 12,145 | 9,137 | ||||||||||
Total | $ | 152,140 | $ | 116,457 | $ | 91,507 | |||||||
-4 | Corporate interest expense is attributable primarily to interest on the Senior Notes which were issued in the third quarter of 2012. | ||||||||||||
Assets | |||||||||||||
As of December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Assets: | |||||||||||||
Homebuilding Mid Atlantic | $ | 917,689 | $ | 810,270 | |||||||||
Homebuilding North East | 103,631 | 84,958 | |||||||||||
Homebuilding Mid East | 192,781 | 172,167 | |||||||||||
Homebuilding South East | 144,939 | 106,389 | |||||||||||
Mortgage Banking | 255,969 | 253,421 | |||||||||||
Total segment assets | 1,615,009 | 1,427,205 | |||||||||||
Consolidated variable interest entity | 3,590 | 7,268 | |||||||||||
Cash and cash equivalents | 514,780 | 844,274 | |||||||||||
Deferred taxes | 165,189 | 162,378 | |||||||||||
Intangible assets and goodwill | 54,291 | 55,674 | |||||||||||
Contract land deposit reserve | (56,074 | ) | (59,761 | ) | |||||||||
Consolidation adjustments and other | 54,550 | 49,110 | |||||||||||
Reconciling items sub-total | 736,326 | 1,058,943 | |||||||||||
Consolidated assets | $ | 2,351,335 | $ | 2,486,148 | |||||||||
Interest Income | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest Income: | |||||||||||||
Mortgage Banking | $ | 4,940 | $ | 4,983 | $ | 4,504 | |||||||
Total segment interest income | 4,940 | 4,983 | 4,504 | ||||||||||
Other unallocated interest income | 1,311 | 2,319 | 1,388 | ||||||||||
Consolidated interest income | $ | 6,251 | $ | 7,302 | $ | 5,892 | |||||||
Interest Expense | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest Expense: | |||||||||||||
Homebuilding Mid Atlantic | $ | 96,364 | $ | 72,351 | $ | 59,310 | |||||||
Homebuilding North East | 12,114 | 9,466 | 8,196 | ||||||||||
Homebuilding Mid East | 26,300 | 22,587 | 15,043 | ||||||||||
Homebuilding South East | 17,409 | 12,151 | 9,145 | ||||||||||
Mortgage Banking | 549 | 545 | 546 | ||||||||||
Total segment interest expense | 152,736 | 117,100 | 92,240 | ||||||||||
Corporate capital allocation | (152,140 | ) | (116,457 | ) | (91,507 | ) | |||||||
Senior notes and other interest | 22,544 | 21,742 | 6,796 | ||||||||||
Consolidated interest expense | $ | 23,140 | $ | 22,385 | $ | 7,529 | |||||||
Depreciation and Amortization | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation and Amortization: | |||||||||||||
Homebuilding Mid Atlantic | $ | 6,489 | $ | 4,784 | $ | 3,886 | |||||||
Homebuilding North East | 1,208 | 853 | 631 | ||||||||||
Homebuilding Mid East | 3,212 | 1,911 | 1,473 | ||||||||||
Homebuilding South East | 1,715 | 1,008 | 808 | ||||||||||
Mortgage Banking | 1,089 | 669 | 397 | ||||||||||
Total segment depreciation and amortization | 13,713 | 9,225 | 7,195 | ||||||||||
Unallocated corporate | 3,901 | 4,166 | 905 | ||||||||||
Consolidated depreciation and amortization | $ | 17,614 | $ | 13,391 | $ | 8,100 | |||||||
Expenditures for Property and Equipment | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Expenditures for Property and Equipment: | |||||||||||||
Homebuilding Mid Atlantic | $ | 9,047 | $ | 7,947 | $ | 3,595 | |||||||
Homebuilding North East | 2,311 | 1,454 | 1,703 | ||||||||||
Homebuilding Mid East | 6,982 | 3,282 | 1,886 | ||||||||||
Homebuilding South East | 3,472 | 2,662 | 1,260 | ||||||||||
Mortgage Banking | 2,580 | 2,933 | 1,169 | ||||||||||
Total segment expenditures for property and equipment | 24,392 | 18,278 | 9,613 | ||||||||||
Unallocated corporate | 7,280 | 738 | 2,752 | ||||||||||
Consolidated expenditures for property and equipment | $ | 31,672 | $ | 19,016 | $ | 12,365 | |||||||
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 years presented: | ||||||||||||
Year Ended December 31, | |||||||||||||
Corporate Capital Allocation Charge: | 2014 | 2013 | 2012 | ||||||||||
Homebuilding Mid Atlantic | $ | 96,328 | $ | 72,271 | $ | 59,144 | |||||||
Homebuilding North East | 12,107 | 9,461 | 8,187 | ||||||||||
Homebuilding Mid East | 26,299 | 22,580 | 15,039 | ||||||||||
Homebuilding South East | 17,406 | 12,145 | 9,137 | ||||||||||
Total | $ | 152,140 | $ | 116,457 | $ | 91,507 | |||||||
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Equity Method Investments And Joint Ventures [Abstract] | |||||||||
Total Risk Related to Lot Options | NVR’s total risk of loss related to contract land deposits as of December 31, 2014 and 2013 was as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Contract land deposits | $ | 350,750 | $ | 296,646 | |||||
Loss reserve on contract land deposits | (56,074 | ) | (59,761 | ) | |||||
Contract land deposits, net | 294,676 | 236,885 | |||||||
Contingent obligations in the form of letters of credit | 4,674 | 2,459 | |||||||
Contingent specific performance obligations (1) | 1,505 | 1,707 | |||||||
Total risk of loss | $ | 300,855 | $ | 241,051 | |||||
-1 | At December 31, 2014 and 2013, the Company was committed to purchase 10 and 13 finished lots under specific performance obligations, respectively. |
Joint_Ventures_Tables
Joint Ventures (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Equity Method Investments And Joint Ventures [Abstract] | |||||||||
Condensed Balance Sheets of Consolidated JV | The condensed balance sheets at December 31, 2014 and 2013 of the consolidated JV were as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Cash | $ | 481 | $ | 668 | |||||
Restricted cash | 160 | 248 | |||||||
Other assets | 332 | 542 | |||||||
Land under development | 2,617 | 5,810 | |||||||
Total assets | $ | 3,590 | $ | 7,268 | |||||
Debt | $ | 64 | $ | 3,365 | |||||
Accrued expenses | 1,231 | 862 | |||||||
Equity | 2,295 | 3,041 | |||||||
Total liabilities and equity | $ | 3,590 | $ | 7,268 | |||||
Capitalized_Interest_Tables
Capitalized Interest (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Interest Costs Incurred [Abstract] | |||||||||
Summary of Interest Costs Incurred, Capitalized, Expensed and Charged to Cost of Sales | NVR’s interest costs incurred, capitalized, expensed and charged to cost of sales during the years ended December 31, 2014 and 2013 was as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Interest capitalized, beginning of period | $ | 3,294 | $ | 893 | |||||
Interest incurred | 24,994 | 25,048 | |||||||
Interest charged to interest expense | (23,140 | ) | (22,385 | ) | |||||
Interest charged to cost of sales | (1,076 | ) | (262 | ) | |||||
Interest capitalized, end of period | $ | 4,072 | $ | 3,294 | |||||
Property_Plant_and_Equipment_n1
Property, Plant and Equipment, net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property Plant And Equipment [Abstract] | |||||||||
Summary of Property, Plant and Equipment, Net | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Homebuilding: | |||||||||
Office facilities and other | $ | 29,326 | $ | 19,547 | |||||
Model home furniture and fixtures | 28,945 | 22,432 | |||||||
Production facilities | 47,796 | 39,396 | |||||||
Property under capital leases | — | 3,976 | |||||||
106,067 | 85,351 | ||||||||
Less: accumulated depreciation | (59,825 | ) | (52,752 | ) | |||||
$ | 46,242 | $ | 32,599 | ||||||
Mortgage Banking: | |||||||||
Office facilities and other | $ | 10,508 | $ | 8,118 | |||||
Less: accumulated depreciation | (4,319 | ) | (3,419 | ) | |||||
$ | 6,189 | $ | 4,699 | ||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Summary of Debt | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Homebuilding: | |||||||||
Other term debt: | |||||||||
Capital lease obligations due in monthly installments through 2014 (a) | $ | — | $ | 115 | |||||
Senior notes (b) | $ | 599,166 | $ | 599,075 | |||||
Mortgage Banking: | |||||||||
Master repurchase agreement (c) | $ | — | $ | — | |||||
(a) | The capital lease ended in March 2014. The capital lease obligation had a fixed interest rate of 13.0% and was collateralized by buildings and equipment with a net book value of approximately $47 at December 31, 2013. | ||||||||
(b) | On September 10, 2012, NVR completed an offering for $600,000 of Senior Notes under a shelf registration statement filed on September 5, 2012 with the Securities and Exchange Commission (the “SEC”). The Senior Notes were issued at a discount to yield 3.97% and have been reflected net of the unamortized discount in the accompanying consolidated balance sheet. The offering of the Senior Notes resulted in aggregate net proceeds of approximately $593,900, after deducting underwriting discounts and other offering expenses. The Senior Notes mature on September 15, 2022 and bear interest at 3.95%, payable semi-annually in arrears on March 15 and September 15. The Senior Notes are senior unsecured obligations and rank equally in right of payment with any of NVR’s existing and future unsecured senior indebtedness, will rank senior in right of payment to any of NVR’s future indebtedness that is by its terms expressly subordinated to the Senior Notes and will be effectively subordinated to any of NVR’s existing and future secured indebtedness to the extent of the value of the collateral securing such indebtedness. The indenture governing the Senior Notes has, among other items, and subject to certain exceptions, covenants that restrict the Company’s ability to create, incur, assume or guarantee secured debt, enter into sale and leaseback transactions and conditions related to mergers and/or the sale of assets. | ||||||||
(c) | On July 30, 2014, NVRM renewed and amended its revolving mortgage repurchase agreement with U.S. Bank National Association (the “Repurchase Agreement”). The purpose of the Repurchase Agreement is to finance the origination of mortgage loans by NVRM. The Repurchase Agreement provides for loan purchases up to $25,000, subject to certain sub limits. The Repurchase Agreement expires on July 29, 2015. |
Common_Stock_Tables
Common Stock (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Share Repurchases of Common Stock | The Company made the following share repurchases during the years indicated: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Aggregate Purchase Price | $ | 567,544 | $ | 554,491 | $ | 227,281 | |||||||
Number of Shares Repurchased | 508 | 581 | 286 | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Provision for Income Taxes | The provision for income taxes consists of the following: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 148,221 | $ | 137,675 | $ | 76,599 | |||||||
State | 28,881 | 30,352 | 3,066 | ||||||||||
Deferred: | |||||||||||||
Federal | (4,451 | ) | (13,402 | ) | 13,086 | ||||||||
State | (735 | ) | (2,406 | ) | 1,738 | ||||||||
$ | 171,916 | $ | 152,219 | $ | 94,489 | ||||||||
Income Tax Benefits in Shareholders' Equity | In addition to amounts applicable to income before taxes, the following income tax benefits were recorded in shareholders’ equity: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax benefits arising from compensation expense for | $ | 9,437 | $ | 20,636 | $ | 14,319 | |||||||
tax purposes in excess of amounts recognized for financial | |||||||||||||
statement purposes | |||||||||||||
Deferred Income Taxes on Consolidated Balance Sheets | Deferred income taxes on NVR’s consolidated balance sheets were comprised of the following: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Other accrued expenses and contract land deposit reserve | $ | 84,817 | $ | 90,372 | |||||||||
Deferred compensation | 7,500 | 8,049 | |||||||||||
Equity-based compensation expense | 46,257 | 35,298 | |||||||||||
Inventory | 11,153 | 11,099 | |||||||||||
Unrecognized tax benefit | 24,485 | 23,784 | |||||||||||
Other | 5,847 | 4,200 | |||||||||||
Total deferred tax assets | 180,059 | 172,802 | |||||||||||
Less: deferred tax liabilities | 7,371 | 4,290 | |||||||||||
Net deferred tax position | $ | 172,688 | $ | 168,512 | |||||||||
Income Tax Expense Reconciliation | A reconciliation of income tax expense in the accompanying consolidated statements of income to the amount computed by applying the statutory federal income tax rate of 35% to income before taxes is as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income taxes computed at the federal statutory rate | $ | 158,741 | $ | 146,544 | $ | 96,277 | |||||||
State income taxes, net of federal income tax benefit | 18,800 | 18,210 | 3,226 | ||||||||||
Other, net | (5,625 | ) | (12,535 | ) | (5,014 | ) | |||||||
$ | 171,916 | $ | 152,219 | $ | 94,489 | ||||||||
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at beginning of year | $ | 43,796 | $ | 40,244 | |||||||||
Additions based on tax positions related to the current year | 6,008 | 5,618 | |||||||||||
Reductions for tax positions of prior years | (3,800 | ) | (2,066 | ) | |||||||||
Settlements | — | — | |||||||||||
Balance at end of year | $ | 46,004 | $ | 43,796 | |||||||||
EquityBased_Compensation_Profi1
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||||||||||||
Equity-Based Compensation Plans | The following table provides additional information relative to NVR’s equity-based compensation plans for the year ended December 31, 2014: | ||||||||||||||||
Shares | Weighted Avg. Per Share | Weighted Avg. Remaining | Aggregate | ||||||||||||||
Exercise Price | Contract Life (years) | Intrinsic Value | |||||||||||||||
Stock Options | |||||||||||||||||
Outstanding at December 31, 2013 | 667 | $ | 740.18 | ||||||||||||||
Granted | 683 | 1,095.69 | |||||||||||||||
Exercised | (118 | ) | 644.6 | ||||||||||||||
Forfeited | (31 | ) | 910.36 | ||||||||||||||
Outstanding at December 31, 2014 | 1,201 | $ | 947.39 | 7.9 | $ | 393,866 | |||||||||||
Exercisable at December 31, 2014 | 346 | $ | 676.37 | 5.1 | $ | 207,487 | |||||||||||
RSUs (1) | |||||||||||||||||
Outstanding at December 31, 2013 | 45 | ||||||||||||||||
Granted | 16 | ||||||||||||||||
Vested | (5 | ) | |||||||||||||||
Forfeited | (1 | ) | |||||||||||||||
Outstanding at December 31, 2014 | 55 | $ | 70,773 | ||||||||||||||
Vested, but not issued at December 31, 2014 | 2 | $ | 2,713 | ||||||||||||||
-1 | RSU grants were issued at a $0 exercise price. | ||||||||||||||||
Black-Scholes Option-Pricing Model Assumptions | The fair value of the Options granted during 2014, 2013 and 2012 was estimated on the grant date using the Pricing Model, based on the following assumptions: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Estimated option life | 5.16 years | 5.20 years | 4.95 years | ||||||||||||||
Risk free interest rate (range) | 1.06%-2.49% | 0.42%-2.10% | 0.35%-1.84% | ||||||||||||||
Expected volatility (range) | 18.26%-30.57% | 17.98%-32.72% | 17.71%-34.43% | ||||||||||||||
Expected dividend rate | 0.00% | 0.00% | 0.00% | ||||||||||||||
Weighted average grant-date fair value per share of | $ | 267.66 | $ | 268.13 | $ | 221.45 | |||||||||||
options granted | |||||||||||||||||
Exercised Option Proceeds | Information with respect to the vested RSUs and exercised Options is as follows: | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Aggregate exercise proceeds (1) | $ | 76,153 | $ | 14,834 | $ | 73,211 | |||||||||||
Aggregate intrinsic value on exercise dates | $ | 62,136 | $ | 84,908 | $ | 101,334 | |||||||||||
(1) | Aggregate exercise proceeds include the Option exercise price received in cash or the fair market value of NVR stock surrendered by the optionee in lieu of cash. |
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments And Contingencies Disclosure [Abstract] | |||||||||||||
Future Minimum Lease Payments under Operating Leases | Future minimum lease payments under these operating leases as of December 31, 2014 are as follows: | ||||||||||||
Year Ending December 31, | |||||||||||||
2015 | $ | 24,012 | |||||||||||
2016 | 17,352 | ||||||||||||
2017 | 15,024 | ||||||||||||
2018 | 11,654 | ||||||||||||
2019 | 11,155 | ||||||||||||
Thereafter | 28,092 | ||||||||||||
107,289 | |||||||||||||
Sublease income | (282 | ) | |||||||||||
$ | 107,007 | ||||||||||||
Summary of Changes in Product Warranties Reserve | The following table reflects the changes in the Company’s warranty reserve (see Note 1 herein for further discussion of warranty/product liability reserves): | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Warranty reserve, beginning of year | $ | 101,507 | $ | 62,742 | $ | 64,008 | |||||||
Provision | 51,668 | 82,860 | 41,138 | ||||||||||
Payments | (59,115 | ) | (44,095 | ) | (42,404 | ) | |||||||
Warranty reserve, end of year | $ | 94,060 | $ | 101,507 | $ | 62,742 | |||||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||
Undesignated Derivative Instruments | The undesignated derivative instruments are included on the accompanying consolidated balance sheet, as of December 31, 2014, as follows: | ||||||||||||||||||||||||
Balance Sheet Location | Fair Value | ||||||||||||||||||||||||
Derivative Assets: | |||||||||||||||||||||||||
Rate lock commitments | NVRM - Other assets | $ | 2,374 | ||||||||||||||||||||||
Derivative Liabilities: | |||||||||||||||||||||||||
Forward sales contracts | NVRM - Accounts payable and other liabilities | $ | 909 | ||||||||||||||||||||||
Fair Value Measurement | The fair value measurement as of December 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 | $ | 237,989 | $ | (602 | ) | $ | 559 | $ | 2,417 | $ | — | $ | 2,374 | ||||||||||||
Forward sales contracts | $ | 424,966 | — | — | — | (909 | ) | (909 | ) | ||||||||||||||||
Mortgages held for sale | $ | 203,305 | (354 | ) | 423 | 2,290 | — | 2,359 | |||||||||||||||||
Total Fair Value Measurement | $ | (956 | ) | $ | 982 | $ | 4,707 | $ | (909 | ) | $ | 3,824 | |||||||||||||
Quarterly_Results_unaudited_Ta
Quarterly Results (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Data and Operating Information | The following table sets forth unaudited selected financial data and operating information on a quarterly basis for the years ended December 31, 2014 and 2013. | ||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||
4th | 3rd | 2nd | 1st | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenues – homebuilding operations | $ | 1,306,632 | $ | 1,185,160 | $ | 1,084,080 | $ | 799,187 | |||||||||
Gross profit – homebuilding operations | $ | 236,031 | $ | 225,105 | $ | 201,302 | $ | 144,035 | |||||||||
Mortgage banking fees | $ | 21,406 | $ | 18,006 | $ | 17,974 | $ | 12,123 | |||||||||
Net income | $ | 99,451 | $ | 90,152 | $ | 68,178 | $ | 23,849 | |||||||||
Diluted earnings per share | $ | 23.24 | $ | 20.7 | $ | 15.17 | $ | 5.16 | |||||||||
Contracts for sale, net of cancellations (units) | 2,713 | 2,936 | 3,415 | 3,325 | |||||||||||||
Settlements (units) | 3,469 | 3,236 | 2,943 | 2,211 | |||||||||||||
Backlog, end of period (units) | 5,475 | 6,231 | 6,531 | 6,059 | |||||||||||||
Loans closed | $ | 881,930 | $ | 803,125 | $ | 675,625 | $ | 472,933 | |||||||||
Year Ended December 31, 2013 | |||||||||||||||||
4th | 3rd | 2nd | 1st | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Revenues – homebuilding operations | $ | 1,223,808 | $ | 1,167,595 | $ | 992,210 | $ | 750,868 | |||||||||
Gross profit – homebuilding operations | $ | 222,393 | $ | 203,179 | $ | 157,922 | $ | 126,783 | |||||||||
Mortgage banking fees | $ | 18,344 | $ | 21,372 | $ | 17,682 | $ | 19,388 | |||||||||
Net income | $ | 97,811 | $ | 82,935 | $ | 50,690 | $ | 35,041 | |||||||||
Diluted earnings per share | $ | 21.15 | $ | 17.67 | $ | 10.11 | $ | 6.84 | |||||||||
Contracts for sale, net of cancellations (units) | 2,631 | 2,381 | 3,278 | 3,510 | |||||||||||||
Settlements (units) | 3,342 | 3,342 | 2,878 | 2,272 | |||||||||||||
Backlog, end of period (units) | 4,945 | 5,656 | 6,617 | 6,217 | |||||||||||||
Loans closed | $ | 721,926 | $ | 695,930 | $ | 646,450 | $ | 473,766 | |||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Significant Accounting Policies [Line Items] | |||
Cash related to a consolidated variable interest entity | $481 | $668 | |
Pre-tax recovery related to impairment of contract land deposits | 225 | 5,300 | 2,000 |
Contract land deposit asset impairment valuation allowance | 56,100 | 59,800 | |
Uncertain tax position threshold for tax benefit | 50.00% | ||
Model Home Furniture and Fixtures [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 2 years | ||
Office Facilities and Other [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Office Facilities and Other [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Manufacturing Facilities [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Manufacturing Facilities [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Homebuilding [Member] | |||
Significant Accounting Policies [Line Items] | |||
Restricted cash | 24,106 | 20,563 | |
Impairment of goodwill | 0 | ||
Homebuilding [Member] | Heartland Homes Inc [Member] | |||
Significant Accounting Policies [Line Items] | |||
Goodwill acquired from business acquisition | 441 | ||
Finite-lived intangibles acquired from business acquisition, net of accumulated amortization | 4,923 | 6,306 | |
Weighted average life of finite-lived intangible assets | 4 years | ||
Mortgage Banking [Member] | |||
Significant Accounting Policies [Line Items] | |||
Restricted cash | 1,947 | 2,860 | |
Mortgage Banking [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Significant Accounting Policies [Line Items] | |||
Typical length of days loans sold into secondary market | 30 days | ||
Mortgage Banking [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Rate Lock Commitments [Member] | |||
Significant Accounting Policies [Line Items] | |||
Notional or Principal Amount | 237,989 | ||
Mortgage Banking [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Forward Sales Contracts [Member] | |||
Significant Accounting Policies [Line Items] | |||
Notional or Principal Amount | $424,966 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Weighted Average Shares and Share Equivalents Used to Calculate Basic and Diluted Earnings Per Share (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||
Weighted average number of shares outstanding used to calculate basic EPS | 4,278 | 4,737 | 5,011 |
Dilutive securities: | |||
Stock options and restricted share units | 157 | 125 | 131 |
Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS | 4,435 | 4,862 | 5,142 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||
Anti-dilutive securities | 757 | 157 | 194 |
Segment_Information_Nature_of_2
Segment Information, Nature of Operations, and Certain Concentrations - Additional Information (Detail) | 0 Months Ended | 12 Months Ended |
Sep. 10, 2012 | Dec. 31, 2014 | |
MetropolitanArea | ||
Segment Reporting Information [Line Items] | ||
Number of metropolitan areas Ryan Homes product are sold | 27 | |
Revenue derived from Washington, D.C metro area | 33.00% | |
Revenue derived from Baltimore, MD metro area. | 13.00% | |
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% | |
Senior notes maturity | 15-Sep-22 | |
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_Information_Nature_of_3
Segment Information, Nature of Operations, and Certain Concentrations - Revenues (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Total consolidated revenues | $4,444,568 | $4,211,267 | $3,184,650 |
Homebuilding Mid Atlantic [Member] | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Revenues | 2,617,108 | 2,439,387 | 1,877,905 |
Homebuilding North East [Member] | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Revenues | 376,862 | 332,681 | 278,715 |
Homebuilding Mid East [Member] | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Revenues | 892,513 | 908,198 | 630,367 |
Homebuilding South East [Member] | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Revenues | 488,576 | 454,215 | 334,257 |
Mortgage Banking [Member] | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Mortgage Banking | $69,509 | $76,786 | $63,406 |
Segment_Information_Nature_of_4
Segment Information, Nature of Operations, and Certain Concentrations - Profit before Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Consolidated profit before taxes | $453,546 | $418,696 | $275,077 |
Corporate Capital Allocation [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Segment reporting reconciling item for operating profit | 152,140 | 116,457 | 91,507 |
Homebuilding Mid Atlantic [Member] | Corporate Capital Allocation [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Segment reporting reconciling item for operating profit | 96,328 | 72,271 | 59,144 |
Homebuilding North East [Member] | Corporate Capital Allocation [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Segment reporting reconciling item for operating profit | 12,107 | 9,461 | 8,187 |
Homebuilding Mid East [Member] | Corporate Capital Allocation [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Segment reporting reconciling item for operating profit | 26,299 | 22,580 | 15,039 |
Homebuilding South East [Member] | Corporate Capital Allocation [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Segment reporting reconciling item for operating profit | 17,406 | 12,145 | 9,137 |
Operating Segments [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Consolidated profit before taxes | 420,806 | 423,306 | 309,274 |
Operating Segments [Member] | Homebuilding Mid Atlantic [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Consolidated profit before taxes | 271,965 | 276,399 | 189,089 |
Operating Segments [Member] | Homebuilding North East [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Consolidated profit before taxes | 33,390 | 14,294 | 21,529 |
Operating Segments [Member] | Homebuilding Mid East [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Consolidated profit before taxes | 47,538 | 55,537 | 39,847 |
Operating Segments [Member] | Homebuilding South East [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Consolidated profit before taxes | 37,525 | 35,001 | 20,674 |
Operating Segments [Member] | Mortgage Banking [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Consolidated profit before taxes | 30,388 | 42,075 | 38,135 |
Reconciling Items Sub-Total [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Segment reporting reconciling item for operating profit | 32,740 | -4,610 | -34,197 |
Reconciling Items Sub-Total [Member] | Contract Land Deposit Reserve Adjustment [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Segment reporting reconciling item for operating profit | 3,612 | 5,313 | 5,333 |
Reconciling Items Sub-Total [Member] | Equity-Based Compensation Expense [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Segment reporting reconciling item for operating profit | -63,227 | -34,296 | -64,841 |
Reconciling Items Sub-Total [Member] | Corporate Capital Allocation [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Segment reporting reconciling item for operating profit | 152,140 | 116,457 | 91,507 |
Reconciling Items Sub-Total [Member] | Unallocated Corporate Overhead [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Segment reporting reconciling item for operating profit | -61,108 | -72,703 | -70,258 |
Reconciling Items Sub-Total [Member] | Corporate Interest Expense [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Segment reporting reconciling item for operating profit | -22,544 | -21,743 | -6,796 |
Consolidation adjustments and other [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Segment reporting reconciling item for operating profit | $23,867 | $2,362 | $10,858 |
Segment_Information_Nature_of_5
Segment Information, Nature of Operations, and Certain Concentrations - Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Consolidated assets | $2,351,335 | $2,486,148 | ||
Cash and cash equivalents | 545,419 | 866,253 | 1,153,507 | 480,794 |
Contract land deposit reserve | -56,074 | -59,761 | ||
Operating Segments [Member] | ||||
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Consolidated assets | 1,615,009 | 1,427,205 | ||
Operating Segments [Member] | Homebuilding Mid Atlantic [Member] | ||||
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Consolidated assets | 917,689 | 810,270 | ||
Operating Segments [Member] | Homebuilding North East [Member] | ||||
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Consolidated assets | 103,631 | 84,958 | ||
Operating Segments [Member] | Homebuilding Mid East [Member] | ||||
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Consolidated assets | 192,781 | 172,167 | ||
Operating Segments [Member] | Homebuilding South East [Member] | ||||
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Consolidated assets | 144,939 | 106,389 | ||
Operating Segments [Member] | Mortgage Banking [Member] | ||||
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Consolidated assets | 255,969 | 253,421 | ||
Reconciling Items Sub-Total [Member] | ||||
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Consolidated variable interest entity | 3,590 | 7,268 | ||
Cash and cash equivalents | 514,780 | 844,274 | ||
Deferred taxes | 165,189 | 162,378 | ||
Intangible assets and goodwill | 54,291 | 55,674 | ||
Contract land deposit reserve | -56,074 | -59,761 | ||
Reconciling items sub-total | 736,326 | 1,058,943 | ||
Consolidation adjustments and other [Member] | ||||
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Consolidated assets | $54,550 | $49,110 |
Segment_Information_Nature_of_6
Segment Information, Nature of Operations, and Certain Concentrations - Interest Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated interest income | $6,251 | $7,302 | $5,892 |
Mortgage Banking [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Interest income | 4,940 | 4,983 | 4,504 |
Operating Segments [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Interest income | 4,940 | 4,983 | 4,504 |
Consolidation adjustments and other [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Other unallocated interest income | $1,311 | $2,319 | $1,388 |
Segment_Information_Nature_of_7
Segment Information, Nature of Operations, and Certain Concentrations - Interest Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | $23,140 | $22,385 | $7,529 |
Mortgage Banking [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 549 | 545 | 546 |
Operating Segments [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 152,736 | 117,100 | 92,240 |
Operating Segments [Member] | Homebuilding Mid Atlantic [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 96,364 | 72,351 | 59,310 |
Operating Segments [Member] | Homebuilding North East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 12,114 | 9,466 | 8,196 |
Operating Segments [Member] | Homebuilding Mid East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 26,300 | 22,587 | 15,043 |
Operating Segments [Member] | Homebuilding South East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 17,409 | 12,151 | 9,145 |
Operating Segments [Member] | Mortgage Banking [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 549 | 545 | 546 |
Reconciling Items Sub-Total [Member] | Corporate Capital Allocation [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Segment reporting reconciling item | -152,140 | -116,457 | -91,507 |
Consolidation adjustments and other [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Segment reporting reconciling item | -23,867 | -2,362 | -10,858 |
Consolidation adjustments and other [Member] | Senior Notes And Other Interest [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Senior notes and other interest | $22,544 | $21,742 | $6,796 |
Segment_Information_Nature_of_8
Segment Information, Nature of Operations, and Certain Concentrations - Depreciation and Amortization (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | $17,614 | $13,391 | $8,100 |
Operating Segments [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | 13,713 | 9,225 | 7,195 |
Operating Segments [Member] | Homebuilding Mid Atlantic [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | 6,489 | 4,784 | 3,886 |
Operating Segments [Member] | Homebuilding North East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | 1,208 | 853 | 631 |
Operating Segments [Member] | Homebuilding Mid East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | 3,212 | 1,911 | 1,473 |
Operating Segments [Member] | Homebuilding South East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | 1,715 | 1,008 | 808 |
Operating Segments [Member] | Mortgage Banking [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | 1,089 | 669 | 397 |
Consolidation adjustments and other [Member] | Unallocated Corporate Overhead [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | $3,901 | $4,166 | $905 |
Segment_Information_Nature_of_9
Segment Information, Nature of Operations, and Certain Concentrations - Expenditures for Property and Equipment (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated expenditures for property and equipment | $31,672 | $19,016 | $12,365 |
Operating Segments [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated expenditures for property and equipment | 24,392 | 18,278 | 9,613 |
Operating Segments [Member] | Homebuilding Mid Atlantic [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated expenditures for property and equipment | 9,047 | 7,947 | 3,595 |
Operating Segments [Member] | Homebuilding North East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated expenditures for property and equipment | 2,311 | 1,454 | 1,703 |
Operating Segments [Member] | Homebuilding Mid East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated expenditures for property and equipment | 6,982 | 3,282 | 1,886 |
Operating Segments [Member] | Homebuilding South East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated expenditures for property and equipment | 3,472 | 2,662 | 1,260 |
Operating Segments [Member] | Mortgage Banking [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated expenditures for property and equipment | 2,580 | 2,933 | 1,169 |
Consolidation adjustments and other [Member] | Unallocated Corporate Overhead [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated expenditures for property and equipment | $7,280 | $738 | $2,752 |
Recovered_Sheet1
Segment Information, Nature of Operations, and Certain Concentrations - Profit before Taxes (Parenthetical) (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Segment Reporting [Abstract] | |
Pre-tax compensation expense reversal attributable to an adjustment of the option forfeiture rates | $7,900 |
Recovered_Sheet2
Segment Information, Nature of Operations, and Certain Concentrations - Corporate Capital Allocation Charge (Detail) (Corporate Capital Allocation [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Segment reporting reconciling item for operating profit | $152,140 | $116,457 | $91,507 |
Homebuilding Mid Atlantic [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Segment reporting reconciling item for operating profit | 96,328 | 72,271 | 59,144 |
Homebuilding North East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Segment reporting reconciling item for operating profit | 12,107 | 9,461 | 8,187 |
Homebuilding Mid East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Segment reporting reconciling item for operating profit | 26,299 | 22,580 | 15,039 |
Homebuilding South East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Segment reporting reconciling item for operating profit | $17,406 | $12,145 | $9,137 |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
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% |
Lots controlled by NVR | 62,800 |
Contract land deposits in cash | 348,400 |
Letters of credit related to lots | 1,700 |
Development Entities [Member] | |
Variable Interest Entity [Line Items] | |
Voting rights description | NVR has no voting rights in any of the development entities |
Contract on Raw Ground with Land Owners [Member] | |
Variable Interest Entity [Line Items] | |
Lots controlled by NVR | 5,700 |
Contract land deposits | 2,300 |
Letters of credit related to land contract | 3,000 |
Refundable deposits and letters of credit | 2,600 |
Variable_Interest_Entities_Tot
Variable Interest Entities - Total Risk Related to Lot Options (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||
Contract land deposits | $350,750 | $296,646 | ||
Loss reserve on contract land deposits | -56,074 | -59,761 | ||
Contract land deposits, net | 294,676 | 236,885 | ||
Contingent obligations in the form of letters of credit | 4,674 | 2,459 | ||
Contingent specific performance obligations | 1,505 | [1] | 1,707 | [1] |
Total risk of loss | $300,855 | $241,051 | ||
[1] | At December 31, 2014 and 2013, the Company was committed to purchase 10 and 13 finished lots under specific performance obligations, respectively. |
Variable_Interest_Entities_Tot1
Variable Interest Entities - Total Risk Related to Lot Options (Parenthetical) (Detail) | Dec. 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 $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Lot | Lot | ||
JointVenture | JointVenture | ||
Joint Ventures [Line Items] | |||
Investment in and advances to unconsolidated joint ventures | $22,850 | $1,000 | |
Aggregate investment | 92,700 | 82,000 | |
Expected production of finished lots | 9,300 | 8,800 | |
Total lots not under contract with NVR under the joint venture | 3,400 | 3,300 | |
Number of joint ventures | 4 | 5 | |
Additional funding commitments in the aggregate | 11,850 | 11,850 | |
Number of joint ventures NVR is not primary beneficiary | 4 | ||
Number of joint ventures with additional funding commitment | 2 | 2 | |
New Joint Venture Unrelated Partner [Member] | |||
Joint Ventures [Line Items] | |||
Investment in and advances to unconsolidated joint ventures | 11,850 | ||
Expected production of finished lots | 1,300 | ||
Lots being sold to the Company | 50.00% | ||
Other Assets [Member] | |||
Joint Ventures [Line Items] | |||
Investment in and advances to unconsolidated joint ventures | 11,000 | ||
Aggregate investment | $90,500 | $80,100 |
Joint_Ventures_Condensed_Balan
Joint Ventures - Condensed Balance Sheets of Consolidated JV (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Cash | $545,419 | $866,253 | $1,153,507 | $480,794 |
Land under development | 33,689 | 41,328 | ||
Equity | 1,124,255 | 1,261,352 | 1,480,477 | 1,374,799 |
Total liabilities and shareholders' equity | 2,351,335 | 2,486,148 | ||
Consolidated Entities [Member] | ||||
Schedule Of Equity Method Investments [Line Items] | ||||
Cash | 481 | 668 | ||
Restricted cash | 160 | 248 | ||
Other assets | 332 | 542 | ||
Land under development | 2,617 | 5,810 | ||
Total assets | 3,590 | 7,268 | ||
Debt | 64 | 3,365 | ||
Accrued expenses | 1,231 | 862 | ||
Equity | 2,295 | 3,041 | ||
Total liabilities and shareholders' equity | $3,590 | $7,268 |
Land_Under_Development_Additio
Land Under Development - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Lot | Lot | |
Parcels | Parcels | |
Real Estate [Abstract] | ||
Number of raw parcels of land acquired | 4 | 5 |
Carrying value of raw parcels of land | $33,689 | $41,328 |
Number of finished lots for use in homebuilding operations | 480 | 650 |
Finished lots under lot purchase agreements | 94 | |
Lots sold to unrelated party | 19 | 15 |
Aggregate sale price of finished lots to unrelated party | $3,100 | $2,600 |
Capitalized_Interest_Summary_o
Capitalized Interest - Summary of Interest Costs Incurred, Capitalized, Expensed and Charged to Cost of Sales (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Costs Incurred [Abstract] | |||
Interest capitalized, beginning of period | $3,294 | $893 | |
Interest incurred | 24,994 | 25,048 | |
Interest charged to interest expense | -23,140 | -22,385 | -7,529 |
Interest charged to cost of sales | -1,076 | -262 | |
Interest capitalized, end of period | $4,072 | $3,294 | $893 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (Elm Street [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Lot | |||
Elm Street [Member] | |||
Related Party Transaction [Line Items] | |||
Related party forward lot purchase agreement purchase price | $40,800 | ||
Number of related parties for forward lot purchase agreement | 1 | ||
Market price of developed lots | 50,100 | 38,400 | 54,600 |
Expected number of lots from joint venture with Elm Street | 2,400 | ||
Development costs to manage property under related party transactions | $143 | $143 | $143 |
Recovered_Sheet3
Property Plant and Equipment Net - Summary of Property Plant and Equipment Net Table (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property under Capital Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Net | $47 | |
Homebuilding [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 106,067 | 85,351 |
Less: accumulated depreciation | -59,825 | -52,752 |
Property, Plant and Equipment, Net | 46,242 | 32,599 |
Homebuilding [Member] | Office Facilities and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 29,326 | 19,547 |
Homebuilding [Member] | Model Home Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 28,945 | 22,432 |
Homebuilding [Member] | Production Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 47,796 | 39,396 |
Homebuilding [Member] | Property under Capital Leases [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,976 | |
Mortgage Banking [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Net | 6,189 | 4,699 |
Mortgage Banking [Member] | Office Facilities and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 10,508 | 8,118 |
Less: accumulated depreciation | -4,319 | -3,419 |
Property, Plant and Equipment, Net | $6,189 | $4,699 |
Debt_Summary_of_Debt_Detail
Debt - Summary of Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Homebuilding [Member] | ||
Other term debt: | ||
Capital lease obligations due in monthly installments through 2014 | $115 | |
Senior notes | 599,166 | 599,075 |
Mortgage Banking [Member] | ||
Other term debt: | ||
Master repurchase agreement | $0 | $0 |
Debt_Summary_of_Debt_Parenthet
Debt - Summary of Debt (Parenthetical) (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jul. 30, 2014 | Sep. 10, 2012 | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||||
Lease expiration date | 2014-03 | |||
Capital lease obligations fixed interest rate | 13.00% | |||
Debt issuance date | 10-Sep-12 | |||
Senior notes principal amount | $600,000 | |||
Senior notes maturity | 15-Sep-22 | |||
Senior notes effective interest rate | 3.97% | |||
Senior notes proceeds | 593,900 | |||
Senior notes interest rate | 3.95% | |||
Frequency of Senior Notes payment | Semi-annually in arrears on March 15 and September 15 | |||
Repurchase agreement maximum loan borrowing capacity | 25,000 | |||
Expiration date of Repurchase Agreement | 29-Jul-15 | |||
Property under Capital Leases [Member] | ||||
Debt Instrument [Line Items] | ||||
Property, plant and equipment, net | $47 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (Mortgage Banking [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Mortgage Banking [Member] | ||
Debt Instrument [Line Items] | ||
Repurchase facility minimum pricing rate | 2.83% | |
Debt outstanding under repurchase agreement | $0 | $0 |
Borrowing base | $0 |
Common_Stock_Additional_Inform
Common Stock - Additional Information (Detail) (USD $) | 12 Months Ended | 180 Months Ended | 252 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 |
Statement Of Stockholders Equity [Abstract] | |||||
Common shares outstanding | 4,049 | 4,434 | 4,049 | 4,049 | |
Treasury stock repurchases, shares | 508 | 581 | 286 | 23,800 | |
Treasury stock repurchases, value | $567,544 | $554,491 | $227,281 | $5,876,000 | |
Reissued shares during the period, shares | 123 | 102 | 222 | 7,287 |
Common_Stock_Share_Repurchase_
Common Stock - Share Repurchase of Common Stock (Detail) (USD $) | 12 Months Ended | 252 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Statement Of Stockholders Equity [Abstract] | ||||
Aggregate Purchase Price | $567,544 | $554,491 | $227,281 | $5,876,000 |
Number of Shares Repurchased | 508 | 581 | 286 | 23,800 |
Income_Taxes_Provision_for_Inc
Income Taxes - Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $148,221 | $137,675 | $76,599 |
State | 28,881 | 30,352 | 3,066 |
Deferred: | |||
Federal | -4,451 | -13,402 | 13,086 |
State | -735 | -2,406 | 1,738 |
Total | $171,916 | $152,219 | $94,489 |
Income_Taxes_Income_Tax_Benefi
Income Taxes - Income Tax Benefits in Shareholders' Equity (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Income tax benefits arising from compensation expense for tax purposes in excess of amounts recognized for financial statement purposes | $9,437 | $20,636 | $14,319 |
Income_Taxes_Deferred_Income_T
Income Taxes - Deferred Income Taxes on Consolidated Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Other accrued expenses and contract land deposit reserve | $84,817 | $90,372 |
Deferred compensation | 7,500 | 8,049 |
Equity-based compensation expense | 46,257 | 35,298 |
Inventory | 11,153 | 11,099 |
Unrecognized tax benefit | 24,485 | 23,784 |
Other | 5,847 | 4,200 |
Total deferred tax assets | 180,059 | 172,802 |
Less: deferred tax liabilities | 7,371 | 4,290 |
Net deferred tax position | $172,688 | $168,512 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Estimated federal taxable income | $388,000 | $362,978 | |
Statutory federal income tax rate | 35.00% | ||
Effective tax rate | 37.90% | 36.36% | 34.35% |
Income tax expense due to reversal of previously recognized tax deductions | 7,000 | ||
Income tax expense reduction | 9,154 | ||
Unrecognized tax benefits that would affect effective tax rate | 29,902 | ||
Accrued interest on unrecognized tax benefits | 625 | ||
Reversal of accrued interest on unrecognized tax benefits | 184 | 4,116 | |
Total accrued interest on unrecognized tax benefits | 21,096 | 21,281 | |
Reduction in unrecognized tax benefits | $6,339 |
Income_Taxes_Income_Tax_Expens
Income Taxes - Income Tax Expense Reconciliation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Income taxes computed at the federal statutory rate | $158,741 | $146,544 | $96,277 |
State income taxes, net of federal income tax benefit | 18,800 | 18,210 | 3,226 |
Other, net | -5,625 | -12,535 | -5,014 |
Total | $171,916 | $152,219 | $94,489 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Balance at beginning of year | $43,796 | $40,244 |
Additions based on tax positions related to the current year | 6,008 | 5,618 |
Reductions for tax positions of prior years | -3,800 | -2,066 |
Settlements | 0 | 0 |
Balance at end of year | $46,004 | $43,796 |
EquityBased_Compensation_Profi2
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans - Additional Information (Detail) (USD $) | 12 Months Ended | 180 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | |||
CompensationPlan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Exercise price | $0 | ||||||
Maximum shares available for grant | 362,000 | 362,000 | |||||
Equity-based compensation expense | $63,227 | $34,296 | $64,841 | ||||
Tax benefit related to equity-based compensation costs | 22,900 | 12,100 | 23,900 | ||||
Forfeiture estimate adjustment | 7,900 | ||||||
Forfeiture estimate adjustment charged from homebuilding general and administrative expense | 7,100 | ||||||
Forfeiture estimate adjustment charged from homebuilding cost of sales expense | 300 | ||||||
Forfeiture estimate adjustment charged from NVRM general and administrative expense | 500 | ||||||
Total unrecognized compensation cost for all outstanding Options and RSUs | 195,400 | 195,400 | |||||
Weighted-average period over which the unrecognized compensation will be recorded | 2 years 8 months 12 days | ||||||
Reissued shares during the period, shares | 123,000 | 102,000 | 222,000 | 7,287,000 | |||
Combined plan contribution | $16,980 | $12,012 | $9,575 | ||||
Shares contributed to the Employee Stock Ownership Plan | 14,000 | 10,000 | |||||
Number of deferred compensation plans | 2 | ||||||
Common stock shares held in rabbi trust account | 108,614 | 109,256 | 108,614 | ||||
Shares of common stock issued from rabbi trust account | 43,000 | ||||||
Shares of common stock contributed to rabbi trust account | 0 | 0 | |||||
Options [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of years for options granted | 10 years | ||||||
Options outstanding | 1,201,000 | 667,000 | 1,201,000 | ||||
Minimum [Member] | Options [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Restricted share units vesting period or Option vesting period | 3 years | ||||||
Maximum [Member] | Options [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Restricted share units vesting period or Option vesting period | 6 years | ||||||
Two Thousand Ten Equity Plan | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Maximum shares available for grant | 41,000 | 41,000 | |||||
Shares authorized under the plan | 700,000 | 700,000 | |||||
Two Thousand Ten Equity Plan | Options [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Number of years for options expiration | 10 years | ||||||
Options vesting rights | Over four years in 25% increments beginning on December 31, 2016 | ||||||
Percentage of options vesting rights | 25.00% | ||||||
Percentage of options vesting rights | 50.00% | ||||||
Options issued under the plan | 49,000 | ||||||
Two Thousand Ten Equity Plan | RSUs [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Exercise price | $0 | ||||||
Maximum shares available for grant | 33,000 | 33,000 | |||||
Restricted share units outstanding | 55,000 | [1] | 45,000 | [1] | 55,000 | [1] | |
Shares authorized under the plan | 240,000 | 240,000 | |||||
Options vesting rights | 33% increments on December 31, 2016, 2017 and 2018 | ||||||
Percentage of options vesting rights | 33.00% | ||||||
Percentage of options vesting rights | 50.00% | ||||||
Options issued under the plan | 16,000 | ||||||
Outstanding RSUs, exercise price | $0 | $0 | |||||
Restricted share units weighted average fair value per share of grants | $1,153.41 | ||||||
Two Thousand Ten Equity Plan | Minimum [Member] | RSUs [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Restricted share units vesting period or Option vesting period | 2 years | ||||||
Two Thousand Ten Equity Plan | Maximum [Member] | RSUs [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Restricted share units vesting period or Option vesting period | 3 years | ||||||
1998 Option Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Maximum shares available for grant | 0 | 0 | |||||
Shares authorized under the plan | 1,000,000 | 1,000,000 | |||||
Number of years for options expiration | 10 years | ||||||
1998 Directors' Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Maximum shares available for grant | 0 | 0 | |||||
Shares authorized under the plan | 150,000 | 150,000 | |||||
Number of years for options expiration | 10 years | ||||||
2000 Plan [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Maximum shares available for grant | 0 | 0 | |||||
Shares authorized under the plan | 2,000,000 | 2,000,000 | |||||
Number of years for options expiration | 10 years | ||||||
Options vesting rights | Vest annually in 25% increments based on the date of grant. | ||||||
Percentage of options vesting rights | 25.00% | ||||||
2014 Plan [Member] | Options [Member] | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Restricted share units vesting period or Option vesting period | 4 years | ||||||
Maximum shares available for grant | 321,000 | 321,000 | |||||
Shares authorized under the plan | 950,000 | 950,000 | |||||
Number of years for options expiration | 10 years | ||||||
Options vesting rights | Over four years in 25% increments beginning on December 31, 2016 | ||||||
Percentage of options vesting rights | 25.00% | ||||||
Options issued under the plan | 634,000 | ||||||
2014 Plan [Member] | Options [Member] | Option Grant Solely Contingent upon Continued Employment or Continued Service as a Director | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Percentage of options vesting rights | 50.00% | ||||||
Options granted | 296,000 | ||||||
2014 Plan [Member] | Options [Member] | Option Grant Contingent upon Continued Employment or Service as a Director and Achievement of Performance Metric | |||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||||
Percentage of options vesting rights | 50.00% | ||||||
Options granted | 338,000 | ||||||
[1] | RSU grants were issued at a $0 exercise price. |
EquityBased_Compensation_Profi3
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans - Equity-Based Compensation Plans (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | |
Stock Options [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Outstanding at beginning of period (Shares) | 667 | |
Granted (Shares) | 683 | |
Exercised (Shares) | -118 | |
Forfeited (Shares) | -31 | |
Outstanding at end of period (Shares) | 1,201 | |
Exercisable at end of period (Shares) | 346 | |
Outstanding at beginning of period (Weighted Average Exercise Price) | $740.18 | |
Granted (Weighted Average Exercise Price) | $1,095.69 | |
Exercised (Weighted Average Exercise Price) | $644.60 | |
Forfeited (Weighted Average Exercise Price) | $910.36 | |
Outstanding at end of period (Weighted Average Exercise Price) | $947.39 | |
Exercisable at end of period (Weighted Average Exercise Price) | $676.37 | |
Outstanding at end of period (Weighted Average Remaining Contract Life (Years) | 7 years 10 months 24 days | |
Exercisable at end of period (Weighted Average Remaining Contract Life (Years) | 5 years 1 month 6 days | |
Outstanding at end of period (Aggregate Intrinsic Value) | $393,866 | |
Exercisable at end of period (Aggregate Intrinsic Value) | 207,487 | |
Two Thousand Ten Equity Plan | RSUs [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Outstanding at beginning of period (Shares) | 45 | [1] |
Granted (Shares) | 16 | [1] |
Vested (Shares) | -5 | [1] |
Forfeited (Shares) | -1 | [1] |
Outstanding at end of period (Shares) | 55 | [1] |
Vested, but not issued at end of period (Shares) | 2 | [1] |
Outstanding at end of period (Aggregate Intrinsic Value) | 70,773 | |
Vested, but not issued at end of period (Aggregate Intrinsic Value) | $2,713 | |
[1] | RSU grants were issued at a $0 exercise price. |
EquityBased_Compensation_Profi4
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans - Equity-Based Compensation Plans (Parenthetical) (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Restricted share grants exercise price | $0 |
EquityBased_Compensation_Profi5
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans - Black-Scholes Option-Pricing Model Assumptions (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Estimated option life | 5 years 1 month 28 days | 5 years 2 months 12 days | 4 years 11 months 12 days |
Risk free interest rate (range), minimum | 1.06% | 0.42% | 0.35% |
Risk free interest rate (range), maximum | 2.49% | 2.10% | 1.84% |
Expected volatility (range), minimum | 18.26% | 17.98% | 17.71% |
Expected volatility (range), maximum | 30.57% | 32.72% | 34.43% |
Expected dividend rate | 0.00% | 0.00% | 0.00% |
Weighted average grant-date fair value per share of options granted | $267.66 | $268.13 | $221.45 |
EquityBased_Compensation_Profi6
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans - Exercised Option Proceeds (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||
Aggregate exercise proceeds | $76,153 | [1] | $14,834 | [1] | $73,211 | [1] |
Aggregate intrinsic value on exercise dates | $62,136 | $84,908 | $101,334 | |||
[1] | Aggregate exercise proceeds include the Option exercise price received in cash or the fair market value of NVR stock surrendered by the optionee in lieu of cash. |
Commitments_and_Contingent_Lia2
Commitments and Contingent Liabilities - Future Minimum Lease Payments under Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | |
2015 | $24,012 |
2016 | 17,352 |
2017 | 15,024 |
2018 | 11,654 |
2019 | 11,155 |
Thereafter | 28,092 |
Subtotal | 107,289 |
Sublease income | -282 |
Total minimum lease payments | $107,007 |
Commitments_and_Contingent_Lia3
Commitments and Contingent Liabilities - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Contract | Lot | ||
Lot | |||
Commitments And Contingencies Disclosure [Abstract] | |||
Rent expense under operating leases | $45,508 | $39,608 | $33,399 |
Maximum range of deposits required under the purchase agreements | 10.00% | ||
Term of business plan | 5 years | ||
Contingent forfeitable deposits with land developers | 75,200 | ||
Number of specific performance contracts | 1 | ||
Finished lots committed to purchase under specific performance obligations | 10 | 13 | |
Purchase price of finished lots committed to purchase under specific performance obligations | 1,500 | ||
Contingent obligations under bonds or letters of credit arrangements | 59,400 | ||
Contingent obligations under letters of credit arrangements | 11,400 | ||
Warranty reserve provision including accrual charges | 31,600 | ||
Warranty accrual related to a single completed community | 15,600 | ||
Warranty accrual for a non-recurring service issue | $16,000 |
Commitments_and_Contingent_Lia4
Commitments and Contingent Liabilities - Summary of Changes in Product Warranty/Liability Reserve (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Product Warranties Disclosures [Abstract] | |||
Warranty reserve, beginning of year | $101,507 | $62,742 | $64,008 |
Provision | 51,668 | 82,860 | 41,138 |
Payments | -59,115 | -44,095 | -42,404 |
Warranty reserve, end of year | $94,060 | $101,507 | $62,742 |
Fair_Value_Additional_Informat
Fair Value - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Homebuilding [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior Notes carrying value | $599,166 | $599,075 | |
Homebuilding [Member] | Senior Notes due 2022 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior Notes carrying value | 599,166 | ||
Homebuilding [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 | 622,800 | ||
Mortgage Banking [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Average basis points of loan amount | 1.14% | ||
Fallout rate of measuring fair value of rate lock commitments | 11.00% | ||
Fair value of mortgage loans held for sale | 205,664 | 210,641 | |
Mortgage Banking [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) | 3,305 | 3,021 | -2,431 |
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 amount of contractual commitments | 237,989 | ||
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 amount of contractual commitments | 424,966 | ||
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 amount of contractual commitments | 203,305 | ||
Change in fair value of loans held for sale | $2,359 |
Fair_Value_Undesignated_Deriva
Fair Value - Undesignated Derivative Instruments (Detail) (Mortgage Banking [Member], Level 2 [Member], Fair Value, Measurements, Recurring [Member], USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Rate Lock Commitments [Member] | |
Derivative Assets: | |
Fair value of derivatives, assets | $2,374 |
Forward Sales Contracts [Member] | |
Derivative Liabilities: | |
Fair value of derivatives, liabilities | $909 |
Fair_Value_Fair_Value_Measurem
Fair Value - Fair Value Measurement (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assumed Gain/(Loss) From Loan Sale | ($956) |
Interest Rate Movement Effect | 982 |
Servicing Rights Value | 4,707 |
Security Price Change | -909 |
Total Fair Value Measurement Gain/(Loss) | 3,824 |
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 | 237,989 |
Assumed Gain/(Loss) From Loan Sale | -602 |
Interest Rate Movement Effect | 559 |
Servicing Rights Value | 2,417 |
Total Fair Value Measurement Gain/(Loss), Rate lock commitments | 2,374 |
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 | 424,966 |
Security Price Change | -909 |
Total Fair Value Measurement Gain/(Loss), Forward sales contracts | -909 |
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 | 203,305 |
Assumed Gain/(Loss) From Loan Sale | -354 |
Interest Rate Movement Effect | 423 |
Servicing Rights Value | 2,290 |
Total Fair Value Measurement Gain/(Loss), Mortgages held for sale | $2,359 |
Mortgage_Loan_Losses_Allowance
Mortgage Loan Losses Allowance - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Mortgage Loan Loss Allowance [Abstract] | |||
Pre-tax charges for loan losses related to mortgage loans sold | $2,400 | $2,300 | $1,300 |
Mortgage loan loss allowance | $10,000 | $8,200 |
Quarterly_Results_unaudited_Qu
Quarterly Results (unaudited) - Quarterly Financial Data and Operating Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Contract | Settlements | Backlog | Contract | Contract | Backlog | Settlements | Settlements | ||||
Settlements | Contract | Contract | Backlog | Settlements | Contract | Backlog | Backlog | ||||
Backlog | Backlog | Settlements | Settlements | Backlog | Settlements | Contract | Contract | ||||
Quarterly Financial Information [Line Items] | |||||||||||
Net income | $99,451 | $90,152 | $68,178 | $23,849 | $97,811 | $82,935 | $50,690 | $35,041 | $281,630 | $266,477 | $180,588 |
Diluted earnings per share | $23.24 | $20.70 | $15.17 | $5.16 | $21.15 | $17.67 | $10.11 | $6.84 | $63.50 | $54.81 | $35.12 |
Contracts for sale, net of cancellations (units) | 2,713 | 2,936 | 3,415 | 3,325 | 2,631 | 2,381 | 3,278 | 3,510 | |||
Settlements (units) | 3,469 | 3,236 | 2,943 | 2,211 | 3,342 | 3,342 | 2,878 | 2,272 | |||
Backlog, end of period (units) | 5,475 | 6,231 | 6,531 | 6,059 | 4,945 | 5,656 | 6,617 | 6,217 | |||
Loans closed | 881,930 | 803,125 | 675,625 | 472,933 | 721,926 | 695,930 | 646,450 | 473,766 | |||
Homebuilding [Member] | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Revenues – homebuilding operations | 1,306,632 | 1,185,160 | 1,084,080 | 799,187 | 1,223,808 | 1,167,595 | 992,210 | 750,868 | 4,375,059 | 4,134,481 | 3,121,244 |
Gross profit – homebuilding operations | 236,031 | 225,105 | 201,302 | 144,035 | 222,393 | 203,179 | 157,922 | 126,783 | |||
Mortgage Banking [Member] | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Mortgage banking fees | $21,406 | $18,006 | $17,974 | $12,123 | $18,344 | $21,372 | $17,682 | $19,388 | $69,509 | $76,786 | $63,406 |