Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 12, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | NVR | ||
Entity Registrant Name | NVR INC | ||
Entity Central Index Key | 906,163 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 3,881,141 | ||
Entity Public Float | $ 5,130,019 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 425,316 | $ 545,419 |
Inventory: | ||
Land under development | 60,611 | 33,689 |
Contract land deposits, net | 343,295 | 294,676 |
Total assets | 2,515,131 | 2,351,335 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Total liabilities | $ 1,275,966 | $ 1,227,080 |
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, 2015 and December 31, 2014 | $ 206 | $ 206 |
Additional paid-in capital | 1,447,795 | 1,325,495 |
Deferred compensation trust – 108,614 shares of NVR, Inc. common stock as of both December 31, 2015 and December 31, 2014 | (17,333) | (17,333) |
Deferred compensation liability | 17,333 | 17,333 |
Retained earnings | 5,270,114 | 4,887,187 |
Less treasury stock at cost – 16,664,342 and 16,506,229 shares as of December 31, 2015 and December 31, 2014, respectively | (5,478,950) | (5,088,633) |
Total shareholders' equity | 1,239,165 | 1,124,255 |
Total liabilities and shareholders' equity | 2,515,131 | 2,351,335 |
Homebuilding [Member] | ||
ASSETS | ||
Cash and cash equivalents | 397,522 | 514,780 |
Receivables | 11,482 | 10,021 |
Inventory: | ||
Lots and housing units, covered under sales agreements with customers | 785,982 | 690,955 |
Unsold lots and housing units | 147,832 | 131,938 |
Land under development | 60,611 | 33,689 |
Building materials and other | 12,101 | 12,904 |
Total Inventory | 1,006,526 | 869,486 |
Assets related to consolidated variable interest entity | 1,749 | 3,590 |
Contract land deposits, net | 343,295 | 294,676 |
Property, plant and equipment, net | 44,651 | 46,242 |
Reorganization value in excess of amounts allocable to identifiable assets, net | 41,580 | 41,580 |
Goodwill and finite-lived intangible assets, net | 3,982 | 5,364 |
Deferred tax assets, net | 161,805 | 165,189 |
Other assets | 122,989 | 137,091 |
Total assets | 2,135,581 | 2,088,019 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Accounts payable | 227,437 | 204,622 |
Accrued expenses and other liabilities | 304,922 | 289,058 |
Liabilities related to consolidated variable interest entity | 1,091 | 1,618 |
Non-recourse debt related to consolidated variable interest entity | 64 | |
Customer deposits | 110,965 | 106,755 |
Senior notes | 599,260 | 599,166 |
Total liabilities | 1,243,675 | 1,201,283 |
Mortgage Banking [Member] | ||
ASSETS | ||
Cash and cash equivalents | 26,804 | 30,158 |
Mortgage loans held for sale, net | 319,553 | 205,664 |
Inventory: | ||
Property, plant and equipment, net | 5,313 | 6,189 |
Reorganization value in excess of amounts allocable to identifiable assets, net | 7,347 | 7,347 |
Other assets | 20,533 | 13,958 |
Total assets | 379,550 | 263,316 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Accounts payable and other liabilities | 32,291 | 25,797 |
Total liabilities | $ 32,291 | $ 25,797 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
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 | 108,614 |
Treasury stock, shares | 16,664,342 | 16,506,229 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest expense | $ (23,559) | $ (23,140) | $ (22,385) |
Income before taxes | 603,212 | 453,546 | 418,696 |
Income tax expense | (220,285) | (171,916) | (152,219) |
Net income | $ 382,927 | $ 281,630 | $ 266,477 |
Basic earnings per share | $ 95.21 | $ 65.83 | $ 56.25 |
Diluted earnings per share | $ 89.99 | $ 63.50 | $ 54.81 |
Basic weighted average shares outstanding | 4,022 | 4,278 | 4,737 |
Diluted weighted average shares outstanding | 4,255 | 4,435 | 4,862 |
Homebuilding [Member] | |||
Revenues | $ 5,065,200 | $ 4,375,059 | $ 4,134,481 |
Other income | 2,956 | 2,853 | 3,962 |
Cost of sales | (4,118,782) | (3,568,586) | (3,424,204) |
Selling, general and administrative | (371,127) | (358,851) | (313,029) |
Operating income | 578,247 | 450,475 | 401,210 |
Interest expense | (22,918) | (22,591) | (21,840) |
Income before taxes | 555,329 | 427,884 | 379,370 |
Mortgage Banking [Member] | |||
Mortgage banking fees | 93,808 | 69,509 | 76,786 |
Interest income | 6,485 | 4,940 | 4,983 |
Other income | 1,113 | 778 | 696 |
General and administrative | (52,882) | (49,016) | (42,594) |
Interest expense | (641) | (549) | (545) |
Income before taxes | $ 47,883 | $ 25,662 | $ 39,326 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In-Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Deferred Compensation Trust [Member] | Deferred Compensation Liability [Member] |
Beginning 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 |
Net income | 382,927 | 382,927 | |||||
Purchase of common stock for treasury | (431,367) | (431,367) | |||||
Equity-based compensation | 54,091 | 54,091 | |||||
Tax benefit from equity benefit plan activity | 23,311 | 23,311 | |||||
Proceeds from stock options exercised | 85,948 | 85,948 | |||||
Treasury stock issued upon option exercise and restricted share vesting | (41,050) | 41,050 | |||||
Ending Balance at Dec. 31, 2015 | $ 1,239,165 | $ 206 | $ 1,447,795 | $ 5,270,114 | $ (5,478,950) | $ (17,333) | $ 17,333 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 382,927 | $ 281,630 | $ 266,477 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 21,534 | 17,614 | 13,391 |
Excess income tax benefit from equity-based compensation | (23,311) | (9,437) | (20,636) |
Equity-based compensation expense | 54,091 | 63,227 | 34,296 |
Contract land deposit recoveries | (11,058) | (225) | (5,313) |
Gain on sale of loans | (67,891) | (47,791) | (56,528) |
Deferred tax expense (benefit) | 1,902 | (4,176) | (16,848) |
Mortgage loans closed | (3,111,413) | (2,469,876) | (2,307,796) |
Mortgage loans sold and principal payments on mortgage loans held for sale | 3,059,889 | 2,525,706 | 2,338,701 |
Distribution of earnings from unconsolidated joint ventures | 15,511 | 8,431 | 5,676 |
Net change in assets and liabilities: | |||
Increase in inventory | (134,803) | (127,729) | (52,861) |
Increase in contract land deposits | (37,561) | (57,566) | (40,034) |
Increase in receivables | (1,527) | (533) | (260) |
Increase in accounts payable and accrued expenses | 55,404 | 60 | 113,121 |
Increase in customer deposits | 4,210 | 5,733 | 1,335 |
Other, net | (4,513) | (519) | (2,499) |
Net cash provided by operating activities | 203,391 | 184,549 | 270,222 |
Cash flows from investing activities: | |||
Investments in and advances to unconsolidated joint ventures | (1,917) | (22,850) | |
Distribution of capital from unconsolidated joint ventures | 18,489 | 11,569 | 6,782 |
Purchase of property, plant and equipment | (18,277) | (31,672) | (19,016) |
Proceeds from the sale of property, plant and equipment | 683 | 1,021 | 607 |
Net cash used in investing activities | (1,022) | (19,082) | (34,477) |
Cash flows from financing activities: | |||
Purchase of treasury stock | (431,367) | (567,544) | (554,491) |
Net repayments under note payable and credit lines | (115) | (642) | |
Repayments under non-recourse debt related to consolidated variable interest entity | (64) | (3,301) | (4,314) |
Borrowings under non-recourse debt related to consolidated variable interest entity | 3,105 | ||
Distributions to partner in consolidated variable interest entity | (300) | (931) | (1,250) |
Excess income tax benefit from equity-based compensation | 23,311 | 9,437 | 20,636 |
Proceeds from the exercise of stock options | 85,948 | 76,153 | 13,957 |
Net cash used in financing activities | (322,472) | (486,301) | (522,999) |
Net decrease in cash and cash equivalents | (120,103) | (320,834) | (287,254) |
Cash and cash equivalents, beginning of the year | 545,419 | 866,253 | 1,153,507 |
Cash and cash equivalents, end of the year | 425,316 | 545,419 | 866,253 |
Supplemental disclosures of cash flow information: | |||
Interest paid during the year, net of interest capitalized | 24,546 | 24,464 | 24,876 |
Income taxes paid during the year, net of refunds | $ 194,670 | $ 181,840 | $ 113,224 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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. Cash and Cash Equivalents Cash and cash equivalents include short-term investments with original maturities of three months or less. At December 31, 2015 and 2014, $990 and $481, 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 $23,440 and $24,106 at December 31, 2015 and 2014, respectively. Restricted cash in both 2015 and 2014 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 $2,038 and $1,947 at December 31, 2015 and 2014, 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 sales price compared to the total estimated cost to construct plus a reasonable profit margin. 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 and a reasonable profit margin. 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 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, 2015, 2014 and 2013, the Company recognized pre-tax recoveries of $11,058, $225 and $5,313, respectively, of contract land deposits previously determined to be unrecoverable. The contract land deposit assets on the accompanying consolidated balance sheets are shown net of $42,239 and $56,074 impairment valuation allowances at December 31, 2015, and 2014, respectively. Land Under Development On a limited basis, NVR directly acquires raw parcels of land already zoned for its intended use to develop into finished lots. Land under development includes the land acquisition costs, direct improvement costs, capitalized interest, where applicable, and real estate taxes. Land under development, including the land under development held by the Company’s unconsolidated joint ventures and the related joint venture investments, is reviewed for potential write-downs when impairment indicators are present. In addition to considering market and economic conditions, the Company assesses land under development impairments on a community-by-community basis, analyzing, as applicable, current sales absorption levels, recent sales’ 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. Model home furniture and fixtures are generally depreciated over a two-year period, office facilities and other equipment are depreciated over a period of three to ten years and production facilities are depreciated over periods of five to forty years. Intangible Assets On December 31, 2012, the Company acquired substantially all of the assets of Heartland Homes, Inc., which resulted in the Company recording finite-lived intangible assets and goodwill. The Company completed its annual assessment for impairment of goodwill and management determined that there was no impairment. As of December 31, 2015 and 2014, finite-lived intangible assets attributable to the Heartland Homes, Inc. acquisition, net of accumulated amortization, totaled $3,541 and $4,923, respectively. As of both December 31, 2015 and 2014, 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 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, 2015, there were contractual commitments to extend credit to borrowers aggregating $462,329, and open forward delivery sale contracts aggregating $737,052, which hedge both the rate lock commitments and closed loans held for sale (see Note 14 herein for a description of the Company’s fair value accounting). Earnings per Share The following weighted average shares and share equivalents were used to calculate basic and diluted earnings per share for the years ended December 31, 2015 2014 and 2013: Year Ended December 31, 2015 2014 2013 Weighted average number of shares outstanding used to calculate basic EPS 4,022 4,278 4,737 Dilutive securities: Stock options and restricted share units 233 157 125 Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS 4,255 4,435 4,862 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, 2015, 2014 and 2013; 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, 2015 2014 2013 Anti-dilutive securities 50 757 157 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 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. Comprehensive Income For the years ended December 31, 2015, 2014 and 2013, 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 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. In February 2015, FASB issued ASU 2015-02, Consolidation (Topic 810) – Amendments to the Consolidation Analysis In April 2015, FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs. In April 2015, FASB issued ASU 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) In July 2015, FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory |
Segment Information, Nature of
Segment Information, Nature of Operations, and Certain Concentrations | 12 Months Ended |
Dec. 31, 2015 | |
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-eight 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 31% and 13% of its 2015 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, Tennessee and Florida Homebuilding profit before tax includes all revenues and income generated from the sale of homes, less the cost of homes sold, selling, general and administrative expenses, and a corporate capital allocation charge. The corporate capital allocation charge is eliminated in consolidation and is based on the segment’s average net assets employed. The corporate capital allocation charged to the operating segment allows the Chief Operating Decision Maker (“CODM”) to determine whether the operating segment’s results are providing the desired rate of return after covering the Company’s cost of capital. In addition, certain assets including goodwill and intangible assets, and consolidation adjustments as discussed further below, are not allocated to the operating segments as those assets are neither included in the operating segment’s corporate capital allocation charge, nor in the CODM’s evaluation of the operating segment’s performance. The Company records charges on contract land deposits when it is determined that it is probable that recovery of the deposit is impaired. For segment reporting purposes, impairments on contract land deposits are charged to the operating segment upon the determination to terminate a finished lot purchase agreement with the developer, or to restructure a lot purchase agreement resulting in the forfeiture of the deposit. Mortgage banking profit before tax consists of revenues generated from mortgage financing, title insurance and closing services, less the costs of such services and general and administrative costs. Mortgage banking operations are not charged a corporate capital allocation charge. In addition to the corporate capital allocation and contract land deposit impairments discussed above, the other reconciling items between segment profit and consolidated profit before tax include unallocated corporate overhead (including all management incentive compensation), equity-based compensation expense, consolidation adjustments and external corporate interest expense. NVR’s overhead functions, such as accounting, treasury and human resources are centrally performed and the costs are not allocated to the Company’s operating segments. Consolidation adjustments consist of such items necessary to convert the reportable segments’ results, which are predominantly maintained on a cash basis, to a full accrual basis for external financial statement presentation purposes, and are not allocated to the Company’s operating segments. External corporate interest expense primarily consists of interest charges on the Company’s 3.95% Senior Notes due 2022 (the “Senior Notes”) and is not charged to the operating segments because the charges are included in the corporate capital allocation discussed above. Following are tables presenting segment revenues, profit before taxes, assets, interest income, interest expense, depreciation and amortization and expenditures for property and equipment, with reconciliations to the amounts reported for the consolidated enterprise, where applicable: Year Ended December 31, 2015 2014 2013 Revenues: Homebuilding Mid Atlantic $ 3,022,789 $ 2,617,108 $ 2,439,387 Homebuilding North East 432,145 376,862 332,681 Homebuilding Mid East 1,014,920 892,513 908,198 Homebuilding South East 595,346 488,576 454,215 Mortgage Banking 93,808 69,509 76,786 Consolidated revenues $ 5,159,008 $ 4,444,568 $ 4,211,267 Year Ended December 31, 2015 2014 2013 Profit before taxes: Homebuilding Mid Atlantic $ 322,829 $ 271,965 $ 276,399 Homebuilding North East 37,914 33,390 14,294 Homebuilding Mid East 86,336 47,538 55,537 Homebuilding South East 57,384 37,525 35,001 Mortgage Banking 51,236 30,388 42,075 Total segment profit 555,699 420,806 423,306 Reconciling items: Contract land deposit reserve adjustment (1) 13,805 3,612 5,313 Equity-based compensation expense (2) (54,091 ) (63,227 ) (34,296 ) Corporate capital allocation (3) 171,170 152,140 116,458 Unallocated corporate overhead (83,124 ) (61,108 ) (72,703 ) Consolidation adjustments and other 22,622 23,867 2,361 Corporate interest expense (22,869 ) (22,544 ) (21,743 ) Reconciling items sub-total 47,513 32,740 (4,610 ) Consolidated profit before taxes $ 603,212 $ 453,546 $ 418,696 As of December 31, 2015 2014 Assets: Homebuilding Mid Atlantic $ 994,804 $ 917,689 Homebuilding North East 133,106 103,631 Homebuilding Mid East 220,094 192,781 Homebuilding South East 175,572 144,939 Mortgage Banking 372,203 255,969 Total segment assets 1,895,779 1,615,009 Reconciling items: Consolidated variable interest entity 1,749 3,590 Cash and cash equivalents 397,522 514,780 Deferred taxes 161,805 165,189 Intangible assets and goodwill 52,909 54,291 Contract land deposit reserve (42,239 ) (56,074 ) Consolidation adjustments and other 47,606 54,550 Reconciling items sub-total 619,352 736,326 Consolidated assets $ 2,515,131 $ 2,351,335 Year Ended December 31, 2015 2014 2013 Interest income: Mortgage Banking $ 6,485 $ 4,940 $ 4,983 Total segment interest income 6,485 4,940 4,983 Other unallocated interest income 1,211 1,311 2,319 Consolidated interest income $ 7,696 $ 6,251 $ 7,302 Year Ended December 31, 2015 2014 2013 Interest expense: Homebuilding Mid Atlantic $ 107,748 $ 96,364 $ 72,351 Homebuilding North East 16,991 12,114 9,466 Homebuilding Mid East 27,263 26,300 22,587 Homebuilding South East 19,217 17,409 12,151 Mortgage Banking 641 549 545 Total segment interest expense 171,860 152,736 117,100 Corporate capital allocation (171,170 ) (152,140 ) (116,458 ) Senior Notes and other interest 22,869 22,544 21,743 Consolidated interest expense $ 23,559 $ 23,140 $ 22,385 Year Ended December 31, 2015 2014 2013 Depreciation and amortization: Homebuilding Mid Atlantic $ 7,876 $ 6,489 $ 4,784 Homebuilding North East 1,571 1,208 853 Homebuilding Mid East 4,003 3,212 1,911 Homebuilding South East 2,191 1,715 1,008 Mortgage Banking 1,136 1,089 669 Total segment depreciation and amortization 16,777 13,713 9,225 Unallocated corporate 4,757 3,901 4,166 Consolidated depreciation and amortization $ 21,534 $ 17,614 $ 13,391 Year Ended December 31, 2015 2014 2013 Expenditures for property and equipment: Homebuilding Mid Atlantic $ 8,287 $ 9,047 $ 7,947 Homebuilding North East 2,220 2,311 1,454 Homebuilding Mid East 3,774 6,982 3,282 Homebuilding South East 1,753 3,472 2,662 Mortgage Banking 265 2,580 2,933 Total segment expenditures for property and equipment 16,299 24,392 18,278 Unallocated corporate 1,978 7,280 738 Consolidated expenditures for property and equipment $ 18,277 $ 31,672 $ 19,016 ( 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 also lower in 2013 due to 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. ( 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, 2015 2014 2013 Corporate capital allocation charge: Homebuilding Mid Atlantic $ 107,705 $ 96,328 $ 72,272 Homebuilding North East 16,987 12,107 9,461 Homebuilding Mid East 27,263 26,299 22,580 Homebuilding South East 19,215 17,406 12,145 Total corporate capital allocation charge $ 171,170 $ 152,140 $ 116,458 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entity Reporting Entity Involvement Maximum Loss Exposure [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 for the equity holders. Further, NVR does not share in any of the profit or loss generated by the project’s development. The profits and losses are passed directly to the developer’s equity holders. The deposit placed by NVR pursuant to the 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 into fixed price purchase agreements, including the joint venture limited liability companies, discussed below, are evaluated for possible consolidation by NVR. An enterprise must consolidate a VIE when that enterprise has a controlling financial interest in the VIE. An enterprise is deemed to have a controlling financial interest if it has i) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and ii) the obligation to absorb losses of the VIE that could be significant to the VIE or the rights to receive benefits from the VIE that could be significant to the VIE. NVR believes the activities that most significantly impact a development entity’s economic performance are the operating activities of the entity. Unless and until a development entity completes finished building lots through the development process to be able to sell, the process of which the development entity’s equity investors bear the full risk, the entity does not earn any revenues. The operating development activities are managed solely by the development entity’s equity investors. The development entities with which NVR contracts to buy finished lots typically select the respective projects, obtain the necessary zoning approvals, obtain the financing required with no support or guarantees from NVR, select who will purchase the finished lots and at what price, and manage the completion of the infrastructure improvements, all for the purpose of generating a cash flow return to the development entity’s equity holders and all independent of NVR. The Company possesses no more than limited protective legal rights through the purchase agreement in the specific finished lots that it is purchasing, and NVR possesses no participative rights in the development entities. Accordingly, NVR does not have the power to direct the activities of a developer that most significantly impact the developer’s economic performance. For this reason, NVR has concluded that it is not the primary beneficiary of the development entities with which the Company enters into fixed price purchase agreements, and therefore NVR does not consolidate any of these VIEs. As of December 31, 2015, NVR controlled approximately 68,800 lots through fixed price purchase agreements with deposits in cash and letters of credit totaling approximately $373,300 and $3,000, 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 in 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 8,800 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 $12,200 and $350, respectively as of December 31, 2015, of which approximately $8,700 is refundable if NVR does not perform under the contract. In February 2016, we acquired one of these properties at a cost of approximately $150,000 which is expected to produce approximately 1,000 lots 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, 2015 and 2014 was as follows: December 31, 2015 2014 Contract land deposits $ 385,534 $ 350,750 Loss reserve on contract land deposits (42,239 ) (56,074 ) Contract land deposits, net 343,295 294,676 Contingent obligations in the form of letters of credit 3,302 4,674 Contingent specific performance obligations (1) 1,505 1,505 Total risk of loss $ 348,102 $ 300,855 (1) As of both December 31, 2015 and 2014, the Company was committed to purchase 10 finished lots under specific performance obligations. |
Joint Ventures
Joint Ventures | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Joint Ventures | 4. Joint Ventures On a limited basis, NVR obtains finished lots using joint venture limited liability corporations (“JVs”). The JVs are typically structured such that NVR is a non-controlling member and is at risk only for the amount the Company has invested, or committed to invest, in addition to any deposits placed under 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, 2015, the Company had an aggregate investment totaling approximately $60,500 in six JVs that are expected to produce approximately 8,000 finished lots, of which approximately 3,300 were not under contract with NVR. In addition, NVR had additional funding commitments in the aggregate totaling $11,500 to three of the JVs at December 31, 2015. The Company has determined that it is not the primary beneficiary of five of the JVs because NVR and the other JV partner either share power or the other JV partner has the controlling financial interest. The aggregate investment in unconsolidated JVs was approximately $59,800 and $80,100 at December 31, 2015 and 2014, respectively, and is reported in the “Other assets” line item on the accompanying consolidated balance sheets. For the remaining JV, NVR has concluded that it is the primary beneficiary because the Company has the controlling financial interest in the JV. The condensed balance sheets of the consolidated JV at December 31, 2015 and 2014 were as follows: December 31, 2015 2014 Assets: Cash $ 990 $ 481 Restricted cash — 160 Other assets 379 332 Land under development 380 2,617 Total assets $ 1,749 $ 3,590 Liabilities and equity: Debt $ — $ 64 Accrued expenses 567 1,231 Equity 1,182 2,295 Total liabilities and equity $ 1,749 $ 3,590 At December 31, 2014, the Company had an aggregate investment totaling approximately $82,000 in five JVs that were expected to produce approximately 8,800 finished lots, of which approximately 3,300 were not under contract with NVR. In addition, at December 31, 2014, NVR had additional funding commitments in the aggregate totaling $11,850 to two of the JVs. The Company recognizes income from the JVs as a reduction to the lot cost of the lots purchased from the respective JVs when homes are settled and is based on expected total profitability and the total number of lots expected to be produced by the respective 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, 2015 | |
Real Estate [Abstract] | |
Land Under Development | 5. Land Under Development As of December 31, 2015, NVR directly owned four separate raw parcels of land with a carrying value of $60,611 that it intends to develop into approximately 980 finished lots primarily for use in its homebuilding operations. The Company has additional funding commitments related to one of its raw land parcel’s development activity of approximately $19,200, a portion of which the Company expects will be offset by development credits of approximately $9,600 . In addition, as of December 31, 2015, the Company had an obligation under a letter of credit in the amount of approximately $2,200 related to that parcel of land. 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, 2015. In February 2016, the Company acquired a raw parcel of land at a cost of approximately $150,000 which is expected to produce approximately 1,000 lots, of which approximately 160 lots are under contract with unrelated parties. 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, 2014, NVR directly owned four separate raw parcels of land with a carrying value of $33,689 and expected to produce approximately 480 finished lots. |
Capitalized Interest
Capitalized Interest | 12 Months Ended |
Dec. 31, 2015 | |
Interest Costs Incurred Capitalized [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 December 31, 2015 2014 2013 Interest capitalized, beginning of year $ 4,072 $ 3,294 $ 893 Interest incurred 25,155 24,994 25,048 Interest charged to interest expense (23,559 ) (23,140 ) (22,385 ) Interest charged to cost of sales (1,234 ) (1,076 ) (262 ) Interest capitalized, end of year $ 4,434 $ 4,072 $ 3,294 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 7. Related Party Transactions During the year ended December 31, 2015, NVR entered into fixed price purchase agreements to purchase finished building lots for a total purchase price of approximately $68,000 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 2015, 2014 and 2013, NVR purchased developed lots at market prices from Elm Street for approximately $41,200, $50,100 and $38,400, 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 capital contributions to that joint venture in 2015 or 2014. Further, during 2015, 2014 and 2013, 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,
Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment, net | 8. Property, Plant and Equipment, net December 31, 2015 2014 Homebuilding: Office facilities and other $ 31,696 $ 29,326 Model home furniture and fixtures 33,041 28,945 Production facilities 51,636 47,796 116,373 106,067 Less: accumulated depreciation (71,722 ) (59,825 ) $ 44,651 $ 46,242 Mortgage Banking: Office facilities and other $ 10,629 $ 10,508 Less: accumulated depreciation (5,316 ) (4,319 ) $ 5,313 $ 6,189 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt Senior Notes On September 10, 2012, NVR completed an offering for $600,000 of Senior Notes under a shelf registration statement filed on September 5, 2012 with the Securities and Exchange Commission (the “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. Master Repurchase Agreement On July 29, 2015, 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 27, 2016. 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 2.70%. 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, 2015 and 2014, there was no debt outstanding under the Repurchase Agreement. There were no borrowing base limitations at December 31, 2015. 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, 2015. On January 18, 2016, NVRM entered into the Seventh Amendment (the “Amendment”) to its Repurchase Agreement. The Amendment increased borrowing capacity to $150,000, subject to certain sub-limits, and provides for an incremental commitment pursuant to which NVRM may from time to time request increases in the total commitment available under the Repurchase Agreement by up to $50,000 in the aggregate. The Amendment did not materially change any other terms and conditions of the Repurchase Agreement. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Common Stock | 10. Common Stock There were approximately 3,891 and 4,049 common shares outstanding at December 31, 2015 and 2014, respectively. As of December 31, 2015, NVR had reacquired a total of approximately 24,100 shares of NVR common stock at an aggregate cost of approximately $6,307,000 since December 31, 1993. The Company made the following share repurchases during the years indicated: Year Ended December 31, 2015 2014 2013 Aggregate purchase price $ 431,367 $ 567,544 $ 554,491 Number of shares repurchased 290 508 581 Since 1999, the Company has issued shares from the treasury for all stock option exercises. There have been approximately 7,418 shares reissued from the treasury in satisfaction of stock option exercises, vesting of restricted share units and other employee benefit obligations. The Company issued 131, 123 and 102 such shares during 2015, 2014 and 2013, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The provision for income taxes consists of the following: Year Ended December 31, 2015 2014 2013 Current: Federal $ 180,895 $ 148,221 $ 137,675 State 36,142 28,881 30,352 Deferred: Federal 2,681 (4,451 ) (13,402 ) State 567 (735 ) (2,406 ) $ 220,285 $ 171,916 $ 152,219 In addition to amounts applicable to income before taxes, the following income tax benefits were recorded in shareholders’ equity: Year Ended December 31, 2015 2014 2013 Income tax benefits arising from compensation expense for tax purposes in excess of amounts recognized for financial statement purposes $ 23,311 $ 9,437 $ 20,636 Deferred income taxes on NVR’s consolidated balance sheets were comprised of the following: December 31, 2015 2014 Deferred tax assets: Other accrued expenses and contract land deposit reserve $ 77,781 $ 84,817 Deferred compensation 7,280 7,500 Equity-based compensation expense 45,361 46,257 Inventory 12,722 11,153 Unrecognized tax benefit 24,740 24,485 Other 9,391 5,847 Total deferred tax assets 177,275 180,059 Less: deferred tax liabilities 6,489 7,371 Net deferred tax position $ 170,786 $ 172,688 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 $472,728 for the year ended December 31, 2015, and was $391,781 for the year ended December 31, 2014. 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, 2015 2014 2013 Income taxes computed at the federal statutory rate $ 211,124 $ 158,741 $ 146,544 State income taxes, net of federal income tax benefit 23,919 18,800 18,210 Other, net (14,758 ) (5,625 ) (12,535 ) $ 220,285 $ 171,916 $ 152,219 The Company’s effective tax rate in 2015, 2014 and 2013 was 36.52%, 37.90% and 36.36%, respectively. During 2014, the Company recognized income tax expense of approximately $7,000 due to the reversal of certain previously recognized tax deductions. 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 2012. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended December 31, 2015 2014 Balance at beginning of year $ 46,004 $ 43,796 Additions based on tax positions related to the current year 3,897 6,008 Reductions for tax positions of prior years (3,310 ) (3,800 ) Settlements — — Balance at end of year $ 46,591 $ 46,004 If recognized, the total amount of unrecognized tax benefits that would affect the effective tax rate (net of the federal tax benefit) is $30,284 as of December 31, 2015. The Company recognizes interest related to unrecognized tax benefits as a component of income tax expense. For the year ended December 31, 2015, the Company recognized a net addition of accrued interest on unrecognized tax benefits in the amount of $125. For the year ended December 31, 2014, the Company had a net reversal to accrued interest on unrecognized tax benefits in the amount of $184. For the year ended December 31, 2013, the Company recognized a net addition of accrued interest on unrecognized tax benefits in the amount of $625. As of December 31, 2015 and 2014, the Company had a total of $21,221 and $21,096, 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, 2015 will be reduced by approximately $10,210 due to statute expiration and effectively settled positions in various state jurisdictions. |
Equity-Based Compensation, Prof
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2015 | |
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 NVR, Inc. 2014 Equity Incentive Plan below. RSUs generally vest in separate tranches over periods of 2 to 4 years, based solely on continued employment or continued service as a Director. The following table provides a summary of each of the Company’s equity-based compensation plans for any plan with grants outstanding at December 31, 2015: Equity-Based Compensation Plans Shares Authorized Options/RSUs Outstanding Shares Available to Issue 1998 Management Long-Term Stock Option Plan 1,000 6 — 1998 Directors' Long-Term Stock Option Plan 150 8 — 2000 Broadly-Based Stock Option Plan 2,000 126 — 2010 Equity Incentive Plan (1) 700 359 39 NVR, Inc. 2014 Equity Incentive Plan (2) 950 648 302 (1) During 2010, the Company’s shareholders approved the 2010 Equity Incentive Plan (the “2010 Plan”). The 2010 Plan authorizes the Company to issue Options and RSUs to key management employees, including executive officers and Board members. Of the 700 aggregate shares available to issue, up to 240 may be granted in the form of RSUs. There were 308 Options and 51 RSUs outstanding as of December 31, 2015. Of the 39 shares available to be issued under the 2010 Plan, 36 may be granted as RSUs. (2) 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. 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. The performance metric is based on the Company’s return on capital performance during a specified three year period based on the date of Option grant, with the initial performance period being 2014 through 2016. Options granted under the 2014 Plan generally vest annually over four years in 25% increments beginning on December 31, 2016. During 2015, the Company issued 38 Options under the 2014 Plan. Substantially all of the Options granted in 2015 will vest annually over four years in 25% increments beginning on December 31, 2017. Vesting for 24 of the Options granted is contingent both upon continued employment or continued service as a director and the Company’s return on capital performance. Vesting for the other 14 Options granted under the 2014 Plan is contingent solely upon continued employment or continued service as a director. The Company also issued 10 Options under the 2010 Plan during 2015. All of the 2010 Plan Options granted during 2015 will vest annually over four years in 25% increments beginning on December 31, 2017. The vesting for the Options granted under the 2010 Plan is 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, 2015: Shares Weighted Exercise Weighted Contract Aggregate Intrinsic Stock Options Outstanding at December 31, 2014 1,201 $ 947.39 Granted 48 1,417.22 Exercised (129 ) 663.96 Forfeited (24 ) 1,060.29 Outstanding at December 31, 2015 1,096 $ 998.88 7.4 $ 705,684 Exercisable at December 31, 2015 272 $ 721.35 4.8 $ 250,617 RSUs Outstanding at December 31, 2014 55 Granted — Vested (2 ) Forfeited (2 ) Outstanding at December 31, 2015 51 $ 83,340 Vested, but not issued at December 31, 2015 33 $ 53,710 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 2015, 2014 and 2013 was estimated on the grant date using the Pricing Model, based on the following assumptions: 2015 2014 2013 Estimated option life 5.17 years 5.16 years 5.20 years Risk free interest rate (range) 1.04%-2.07% 1.06%-2.49% 0.42%-2.10% Expected volatility (range) 17.00%-26.79% 18.26%-30.57% 17.98%-32.72% Expected dividend rate 0.00% 0.00% 0.00% Weighted average grant-date fair value per share of options granted $ 296.50 $ 267.66 $ 268.13 In accordance with ASC 718, Compensation – Stock Compensation 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 2015, 2014 and 2013, the Company recognized $54,091, $63,227, and $34,296 in equity-based compensation costs, respectively, and approximately $19,700, $22,900, and $12,100 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, 2015, the total unrecognized compensation cost for all outstanding Options and RSUs equaled approximately $152,000, 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, 2021. The weighted-average period over which the unrecognized compensation will be recorded is equal to approximately 2.4 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, 2015, 2014 and 2013, the Company issued 131, 123 and 102 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, 2015 2014 2013 Aggregate exercise proceeds (1) $ 85,948 $ 76,153 $ 14,834 Aggregate intrinsic value on exercise dates $ 99,288 $ 62,136 $ 84,908 (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, 2015, 2014 and 2013 was $17,900, $16,980 and $12,012, respectively. The ESOP purchased approximately 11 and 14 shares of NVR common stock in the open market for the 2015 and 2014 plan year contributions, respectively, using cash contributions provided by the Company. As of December 31, 2015, all shares held by the ESOP had been allocated to participants’ accounts. The 2015 plan year contribution was funded and fully allocated to participants in February 2016. 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, 2015 and 2014. There were no shares of NVR common stock contributed to the rabbi trust in 2015 or 2014. 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, 2015, 2014 and 2013. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 are as follows: Year Ending December 31, 2016 $ 24,032 2017 17,926 2018 13,945 2019 12,791 2020 8,291 Thereafter 22,414 99,399 Sublease income (48 ) $ 99,351 Total rent expense incurred under operating leases was $48,056, $45,508 and $39,608 for the years ended December 31, 2015, 2014 and 2013, 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, 2015, assuming that contractual development milestones are met and the Company exercises its option, the Company expects to place additional forfeitable deposits with land developers under existing lot option contracts of approximately $94,200. 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 $1,505. Additionally, as of December 31, 2015, we had funding commitments totaling approximately $19,200 under a joint development agreement related to our land under development, a portion of which we expect will be offset by development credits of approximately $9,600. During the ordinary course of operating the homebuilding and mortgage banking businesses, the Company is required to enter into bond or letter of credit arrangements with local municipalities, government agencies, or land developers to collateralize its obligations under various contracts. The Company had approximately $58,300 of contingent obligations under such agreements, including approximately $11,900 for letters of credit issued under an uncommitted, collateralized letter of credit facility as of December 31, 2015. 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, 2015 2014 2013 Warranty reserve, beginning of year $ 94,060 $ 101,507 $ 62,742 Provision 47,003 51,668 82,860 Payments (53,656 ) (59,115 ) (44,095 ) Warranty reserve, end of year $ 87,407 $ 94,060 $ 101,507 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 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 and is presently engaged in settlement discussions with them. Any settlement is expected to include injunctive relief and payment of a civil penalty. Although there can be no assurance that a settlement will be reached, the Company recorded a liability and corresponding expense associated with an estimated civil penalty amount on the accompanying consolidated financial statements in 2015. 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, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 14. Fair Value GAAP assigns a fair value hierarchy to the inputs used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets and liabilities. Level 2 inputs are inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs. Financial Instruments The estimated fair value of NVR’s Senior Notes as of December 31, 2015 was $606,000. 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 $599,260 at December 31, 2015. Except as otherwise noted below, NVR believes that insignificant differences exist between the carrying value and the fair value of its financial instruments, which consists primarily of cash equivalents, due to their short term nature. Derivative Instruments and Mortgage Loans Held for Sale In the normal course of business, NVRM, enters into contractual commitments to extend credit to buyers of single-family homes with fixed expiration dates. The commitments become effective when the borrowers “lock-in” a specified interest rate within time frames established by NVRM. All mortgagors are evaluated for credit worthiness prior to the extension of the commitment. Market risk arises if interest rates move adversely between the time of the “lock-in” of rates by the borrower and the sale date of the loan to a broker/dealer. To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers, NVRM enters into optional or mandatory delivery forward sales contracts to sell whole loans and mortgage-backed securities to broker/dealers. The forward sales contracts lock in an interest rate and price for the sale of loans similar to the specific rate lock commitments. NVRM does not engage in speculative or trading derivative activities. Both the rate lock commitments to borrowers and the forward sale contracts to broker/dealers are undesignated derivatives and, accordingly, are marked to fair value through earnings. At December 31, 2015, there were contractual commitments to extend credit to borrowers aggregating $462,329 and open forward delivery contracts aggregating $737,052, which hedge both the rate lock loan commitments and closed loans held for sale. The fair value of the Company’s rate lock commitments to borrowers and the related input levels includes, as applicable: i) the assumed gain/loss of the expected resultant loan sale (Level 2); ii) the effects of interest rate movements between the date of the rate lock and the balance sheet date (Level 2); and iii) the value of the servicing rights associated with the loan (Level 2). The assumed gain/loss considers the excess servicing to be received or buydown fees to be paid upon securitization of the loan. The excess servicing and buydown fees are calculated pursuant to contractual terms with investors. To calculate the effects of interest rate movements, NVRM utilizes applicable published mortgage-backed security prices, and multiplies the price movement between the rate lock date and the balance sheet date by the notional loan commitment amount. NVRM sells all of its loans on a servicing released basis, and receives a servicing released premium upon sale. Thus, the value of the servicing rights, which averaged 120 basis points of the loan amount as of December 31, 2015, 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 12% 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 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 $319,553 included on the accompanying consolidated balance sheet has been increased by $341 from the aggregate principal balance of $319,212. The undesignated derivative instruments are included on the accompanying consolidated balance sheet, as of December 31, 2015, as follows: Fair Value Balance Sheet Location Rate lock commitments: Gross assets $ 5,549 Gross liabilities 2,362 Net rate lock commitments $ 3,187 NVRM - Other assets Forward sales contracts: Gross assets $ 3,994 Gross liabilities 190 Net forward sales contracts $ 3,804 NVRM - Other assets The fair value measurement as of December 31, 2015 was as follows: Notional or Principal Amount Assumed Gain/(Loss) From Loan Sale Interest Rate Movement Effect Servicing Rights Value Security Price Change Total Fair Value Measurement Gain/(Loss) Rate lock commitments $ 462,329 $ (1,108 ) $ (774 ) $ 5,069 $ — $ 3,187 Forward sales contracts $ 737,052 — — — 3,804 3,804 Mortgages held for sale $ 319,212 (954 ) (2,353 ) 3,648 — 341 Total fair value measurement $ (2,062 ) $ (3,127 ) $ 8,717 $ 3,804 $ 7,332 For the years ended December 31, 2015, 2014 and 2013, NVRM recorded a fair value adjustment to income of $3,508, $3,305 and $3,021, respectively. Unrealized gains/losses from the change in the fair value measurements are included in earnings as a component of mortgage banking fees in the accompanying 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, 2015 | |
Text Block [Abstract] | |
Mortgage Loan Loss Allowance | 15. Mortgage Loan Loss Allowance During the years ended December 31, 2015, 2014 and 2013, the Company recognized pre-tax charges for loan losses related to mortgage loans sold of approximately $2,700, $2,400 and $2,300, 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 $12,300 and $10,000 at December 31, 2015 and 2014, respectively. |
Quarterly Results (unaudited)
Quarterly Results (unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014. Year Ended December 31, 2015 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter Revenues – homebuilding operations $ 1,528,084 $ 1,374,467 $ 1,221,111 $ 941,538 Gross profit – homebuilding operations $ 289,496 $ 262,795 $ 234,257 $ 159,870 Mortgage banking fees $ 27,191 $ 27,884 $ 22,522 $ 16,211 Net income $ 134,004 $ 116,470 $ 93,395 $ 39,058 Diluted earnings per share $ 31.92 $ 27.11 $ 21.91 $ 9.22 Contracts for sale, net of cancellations (units) 3,100 3,258 3,796 3,926 Settlements (units) 4,010 3,607 3,175 2,534 Backlog, end of period (units) 6,229 7,139 7,488 6,867 Loans closed $ 1,042,440 $ 951,872 $ 859,403 $ 638,627 Year Ended December 31, 2014 4th Quarter 3rd Quarter 2nd Quarter 1st 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 $ 20.70 $ 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 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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. |
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, 2015 and 2014, $990 and $481, 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 $23,440 and $24,106 at December 31, 2015 and 2014, respectively. Restricted cash in both 2015 and 2014 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 $2,038 and $1,947 at December 31, 2015 and 2014, 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 sales price compared to the total estimated cost to construct plus a reasonable profit margin. 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 and a reasonable profit margin. 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 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, 2015, 2014 and 2013, the Company recognized pre-tax recoveries of $11,058, $225 and $5,313, respectively, of contract land deposits previously determined to be unrecoverable. The contract land deposit assets on the accompanying consolidated balance sheets are shown net of $42,239 and $56,074 impairment valuation allowances at December 31, 2015, and 2014, respectively. |
Land Under Development | Land Under Development On a limited basis, NVR directly acquires raw parcels of land already zoned for its intended use to develop into finished lots. Land under development includes the land acquisition costs, direct improvement costs, capitalized interest, where applicable, and real estate taxes. Land under development, including the land under development held by the Company’s unconsolidated joint ventures and the related joint venture investments, is reviewed for potential write-downs when impairment indicators are present. In addition to considering market and economic conditions, the Company assesses land under development impairments on a community-by-community basis, analyzing, as applicable, current sales absorption levels, recent sales’ 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. Model home furniture and fixtures are generally depreciated over a two-year period, office facilities and other equipment are depreciated over a period of three to ten years and production facilities are depreciated over periods of five to forty years. |
Intangible Assets | Intangible Assets On December 31, 2012, the Company acquired substantially all of the assets of Heartland Homes, Inc., which resulted in the Company recording finite-lived intangible assets and goodwill. The Company completed its annual assessment for impairment of goodwill and management determined that there was no impairment. As of December 31, 2015 and 2014, finite-lived intangible assets attributable to the Heartland Homes, Inc. acquisition, net of accumulated amortization, totaled $3,541 and $4,923, respectively. As of both December 31, 2015 and 2014, 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 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, 2015, there were contractual commitments to extend credit to borrowers aggregating $462,329, and open forward delivery sale contracts aggregating $737,052, which hedge both the rate lock commitments and closed loans held for sale (see Note 14 herein for a description of the Company’s fair value accounting). |
Earnings Per Share | Earnings per Share The following weighted average shares and share equivalents were used to calculate basic and diluted earnings per share for the years ended December 31, 2015 2014 and 2013: Year Ended December 31, 2015 2014 2013 Weighted average number of shares outstanding used to calculate basic EPS 4,022 4,278 4,737 Dilutive securities: Stock options and restricted share units 233 157 125 Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS 4,255 4,435 4,862 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, 2015, 2014 and 2013; 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, 2015 2014 2013 Anti-dilutive securities 50 757 157 |
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 |
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. |
Comprehensive Income | Comprehensive Income For the years ended December 31, 2015, 2014 and 2013, 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 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. In February 2015, FASB issued ASU 2015-02, Consolidation (Topic 810) – Amendments to the Consolidation Analysis In April 2015, FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30) – Simplifying the Presentation of Debt Issuance Costs. In April 2015, FASB issued ASU 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) In July 2015, FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 and 2013: Year Ended December 31, 2015 2014 2013 Weighted average number of shares outstanding used to calculate basic EPS 4,022 4,278 4,737 Dilutive securities: Stock options and restricted share units 233 157 125 Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS 4,255 4,435 4,862 |
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, 2015, 2014 and 2013; 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, 2015 2014 2013 Anti-dilutive securities 50 757 157 |
Segment Information, Nature o25
Segment Information, Nature of Operations, and Certain Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 Revenues: Homebuilding Mid Atlantic $ 3,022,789 $ 2,617,108 $ 2,439,387 Homebuilding North East 432,145 376,862 332,681 Homebuilding Mid East 1,014,920 892,513 908,198 Homebuilding South East 595,346 488,576 454,215 Mortgage Banking 93,808 69,509 76,786 Consolidated revenues $ 5,159,008 $ 4,444,568 $ 4,211,267 |
Profit before Taxes | Year Ended December 31, 2015 2014 2013 Profit before taxes: Homebuilding Mid Atlantic $ 322,829 $ 271,965 $ 276,399 Homebuilding North East 37,914 33,390 14,294 Homebuilding Mid East 86,336 47,538 55,537 Homebuilding South East 57,384 37,525 35,001 Mortgage Banking 51,236 30,388 42,075 Total segment profit 555,699 420,806 423,306 Reconciling items: Contract land deposit reserve adjustment (1) 13,805 3,612 5,313 Equity-based compensation expense (2) (54,091 ) (63,227 ) (34,296 ) Corporate capital allocation (3) 171,170 152,140 116,458 Unallocated corporate overhead (83,124 ) (61,108 ) (72,703 ) Consolidation adjustments and other 22,622 23,867 2,361 Corporate interest expense (22,869 ) (22,544 ) (21,743 ) Reconciling items sub-total 47,513 32,740 (4,610 ) Consolidated profit before taxes $ 603,212 $ 453,546 $ 418,696 ( 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 also lower in 2013 due to 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. ( 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, 2015 2014 2013 Corporate capital allocation charge: Homebuilding Mid Atlantic $ 107,705 $ 96,328 $ 72,272 Homebuilding North East 16,987 12,107 9,461 Homebuilding Mid East 27,263 26,299 22,580 Homebuilding South East 19,215 17,406 12,145 Total corporate capital allocation charge $ 171,170 $ 152,140 $ 116,458 |
Assets | As of December 31, 2015 2014 Assets: Homebuilding Mid Atlantic $ 994,804 $ 917,689 Homebuilding North East 133,106 103,631 Homebuilding Mid East 220,094 192,781 Homebuilding South East 175,572 144,939 Mortgage Banking 372,203 255,969 Total segment assets 1,895,779 1,615,009 Reconciling items: Consolidated variable interest entity 1,749 3,590 Cash and cash equivalents 397,522 514,780 Deferred taxes 161,805 165,189 Intangible assets and goodwill 52,909 54,291 Contract land deposit reserve (42,239 ) (56,074 ) Consolidation adjustments and other 47,606 54,550 Reconciling items sub-total 619,352 736,326 Consolidated assets $ 2,515,131 $ 2,351,335 |
Interest Income | Year Ended December 31, 2015 2014 2013 Interest income: Mortgage Banking $ 6,485 $ 4,940 $ 4,983 Total segment interest income 6,485 4,940 4,983 Other unallocated interest income 1,211 1,311 2,319 Consolidated interest income $ 7,696 $ 6,251 $ 7,302 |
Interest Expense | Year Ended December 31, 2015 2014 2013 Interest expense: Homebuilding Mid Atlantic $ 107,748 $ 96,364 $ 72,351 Homebuilding North East 16,991 12,114 9,466 Homebuilding Mid East 27,263 26,300 22,587 Homebuilding South East 19,217 17,409 12,151 Mortgage Banking 641 549 545 Total segment interest expense 171,860 152,736 117,100 Corporate capital allocation (171,170 ) (152,140 ) (116,458 ) Senior Notes and other interest 22,869 22,544 21,743 Consolidated interest expense $ 23,559 $ 23,140 $ 22,385 |
Depreciation and Amortization | Year Ended December 31, 2015 2014 2013 Depreciation and amortization: Homebuilding Mid Atlantic $ 7,876 $ 6,489 $ 4,784 Homebuilding North East 1,571 1,208 853 Homebuilding Mid East 4,003 3,212 1,911 Homebuilding South East 2,191 1,715 1,008 Mortgage Banking 1,136 1,089 669 Total segment depreciation and amortization 16,777 13,713 9,225 Unallocated corporate 4,757 3,901 4,166 Consolidated depreciation and amortization $ 21,534 $ 17,614 $ 13,391 |
Expenditures for Property and Equipment | Year Ended December 31, 2015 2014 2013 Expenditures for property and equipment: Homebuilding Mid Atlantic $ 8,287 $ 9,047 $ 7,947 Homebuilding North East 2,220 2,311 1,454 Homebuilding Mid East 3,774 6,982 3,282 Homebuilding South East 1,753 3,472 2,662 Mortgage Banking 265 2,580 2,933 Total segment expenditures for property and equipment 16,299 24,392 18,278 Unallocated corporate 1,978 7,280 738 Consolidated expenditures for property and equipment $ 18,277 $ 31,672 $ 19,016 |
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, 2015 2014 2013 Corporate capital allocation charge: Homebuilding Mid Atlantic $ 107,705 $ 96,328 $ 72,272 Homebuilding North East 16,987 12,107 9,461 Homebuilding Mid East 27,263 26,299 22,580 Homebuilding South East 19,215 17,406 12,145 Total corporate capital allocation charge $ 171,170 $ 152,140 $ 116,458 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Variable Interest Entity Reporting Entity Involvement Maximum Loss Exposure [Abstract] | |
Total Risk of Loss Related to Contract Land Deposits | NVR’s total risk of loss related to contract land deposits as of December 31, 2015 and 2014 was as follows: December 31, 2015 2014 Contract land deposits $ 385,534 $ 350,750 Loss reserve on contract land deposits (42,239 ) (56,074 ) Contract land deposits, net 343,295 294,676 Contingent obligations in the form of letters of credit 3,302 4,674 Contingent specific performance obligations (1) 1,505 1,505 Total risk of loss $ 348,102 $ 300,855 (1) As of both December 31, 2015 and 2014, the Company was committed to purchase 10 finished lots under specific performance obligations. |
Joint Ventures (Tables)
Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Consolidated Joint Venture | |
Schedule Of Equity Method Investments [Line Items] | |
Condensed Balance Sheets | The condensed balance sheets of the consolidated JV at December 31, 2015 and 2014 were as follows: December 31, 2015 2014 Assets: Cash $ 990 $ 481 Restricted cash — 160 Other assets 379 332 Land under development 380 2,617 Total assets $ 1,749 $ 3,590 Liabilities and equity: Debt $ — $ 64 Accrued expenses 567 1,231 Equity 1,182 2,295 Total liabilities and equity $ 1,749 $ 3,590 |
Capitalized Interest (Tables)
Capitalized Interest (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Interest Costs Incurred Capitalized [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, 2015, 2014 and 2013 was as follows: December 31, 2015 2014 2013 Interest capitalized, beginning of year $ 4,072 $ 3,294 $ 893 Interest incurred 25,155 24,994 25,048 Interest charged to interest expense (23,559 ) (23,140 ) (22,385 ) Interest charged to cost of sales (1,234 ) (1,076 ) (262 ) Interest capitalized, end of year $ 4,434 $ 4,072 $ 3,294 |
Property, Plant and Equipment29
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |
Summary of Property, Plant and Equipment, Net | December 31, 2015 2014 Homebuilding: Office facilities and other $ 31,696 $ 29,326 Model home furniture and fixtures 33,041 28,945 Production facilities 51,636 47,796 116,373 106,067 Less: accumulated depreciation (71,722 ) (59,825 ) $ 44,651 $ 46,242 Mortgage Banking: Office facilities and other $ 10,629 $ 10,508 Less: accumulated depreciation (5,316 ) (4,319 ) $ 5,313 $ 6,189 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Share Repurchases of Common Stock | The Company made the following share repurchases during the years indicated: Year Ended December 31, 2015 2014 2013 Aggregate purchase price $ 431,367 $ 567,544 $ 554,491 Number of shares repurchased 290 508 581 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The provision for income taxes consists of the following: Year Ended December 31, 2015 2014 2013 Current: Federal $ 180,895 $ 148,221 $ 137,675 State 36,142 28,881 30,352 Deferred: Federal 2,681 (4,451 ) (13,402 ) State 567 (735 ) (2,406 ) $ 220,285 $ 171,916 $ 152,219 |
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, 2015 2014 2013 Income tax benefits arising from compensation expense for tax purposes in excess of amounts recognized for financial statement purposes $ 23,311 $ 9,437 $ 20,636 |
Deferred Income Taxes on Consolidated Balance Sheets | Deferred income taxes on NVR’s consolidated balance sheets were comprised of the following: December 31, 2015 2014 Deferred tax assets: Other accrued expenses and contract land deposit reserve $ 77,781 $ 84,817 Deferred compensation 7,280 7,500 Equity-based compensation expense 45,361 46,257 Inventory 12,722 11,153 Unrecognized tax benefit 24,740 24,485 Other 9,391 5,847 Total deferred tax assets 177,275 180,059 Less: deferred tax liabilities 6,489 7,371 Net deferred tax position $ 170,786 $ 172,688 |
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, 2015 2014 2013 Income taxes computed at the federal statutory rate $ 211,124 $ 158,741 $ 146,544 State income taxes, net of federal income tax benefit 23,919 18,800 18,210 Other, net (14,758 ) (5,625 ) (12,535 ) $ 220,285 $ 171,916 $ 152,219 |
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Year Ended December 31, 2015 2014 Balance at beginning of year $ 46,004 $ 43,796 Additions based on tax positions related to the current year 3,897 6,008 Reductions for tax positions of prior years (3,310 ) (3,800 ) Settlements — — Balance at end of year $ 46,591 $ 46,004 |
Equity-Based Compensation, Pr32
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Equity-Based Compensation Plans with Grants Outstanding | The following table provides a summary of each of the Company’s equity-based compensation plans for any plan with grants outstanding at December 31, 2015: Equity-Based Compensation Plans Shares Authorized Options/RSUs Outstanding Shares Available to Issue 1998 Management Long-Term Stock Option Plan 1,000 6 — 1998 Directors' Long-Term Stock Option Plan 150 8 — 2000 Broadly-Based Stock Option Plan 2,000 126 — 2010 Equity Incentive Plan (1) 700 359 39 NVR, Inc. 2014 Equity Incentive Plan (2) 950 648 302 (1) During 2010, the Company’s shareholders approved the 2010 Equity Incentive Plan (the “2010 Plan”). The 2010 Plan authorizes the Company to issue Options and RSUs to key management employees, including executive officers and Board members. Of the 700 aggregate shares available to issue, up to 240 may be granted in the form of RSUs. There were 308 Options and 51 RSUs outstanding as of December 31, 2015. Of the 39 shares available to be issued under the 2010 Plan, 36 may be granted as RSUs. (2) 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. 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. The performance metric is based on the Company’s return on capital performance during a specified three year period based on the date of Option grant, with the initial performance period being 2014 through 2016. Options granted under the 2014 Plan generally vest annually over four years in 25% increments beginning on December 31, 2016. |
Equity-Based Compensation Plans | The following table provides additional information relative to NVR’s equity-based compensation plans for the year ended December 31, 2015: Shares Weighted Exercise Weighted Contract Aggregate Intrinsic Stock Options Outstanding at December 31, 2014 1,201 $ 947.39 Granted 48 1,417.22 Exercised (129 ) 663.96 Forfeited (24 ) 1,060.29 Outstanding at December 31, 2015 1,096 $ 998.88 7.4 $ 705,684 Exercisable at December 31, 2015 272 $ 721.35 4.8 $ 250,617 RSUs Outstanding at December 31, 2014 55 Granted — Vested (2 ) Forfeited (2 ) Outstanding at December 31, 2015 51 $ 83,340 Vested, but not issued at December 31, 2015 33 $ 53,710 |
Black-Scholes Option-Pricing Model Assumptions | The fair value of the Options granted during 2015, 2014 and 2013 was estimated on the grant date using the Pricing Model, based on the following assumptions: 2015 2014 2013 Estimated option life 5.17 years 5.16 years 5.20 years Risk free interest rate (range) 1.04%-2.07% 1.06%-2.49% 0.42%-2.10% Expected volatility (range) 17.00%-26.79% 18.26%-30.57% 17.98%-32.72% Expected dividend rate 0.00% 0.00% 0.00% Weighted average grant-date fair value per share of options granted $ 296.50 $ 267.66 $ 268.13 |
Exercised Option Proceeds | Information with respect to the vested RSUs and exercised Options is as follows: Year Ended December 31, 2015 2014 2013 Aggregate exercise proceeds (1) $ 85,948 $ 76,153 $ 14,834 Aggregate intrinsic value on exercise dates $ 99,288 $ 62,136 $ 84,908 (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 Li33
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments under Operating Leases | Future minimum lease payments under these operating leases as of December 31, 2015 are as follows: Year Ending December 31, 2016 $ 24,032 2017 17,926 2018 13,945 2019 12,791 2020 8,291 Thereafter 22,414 99,399 Sublease income (48 ) $ 99,351 |
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, 2015 2014 2013 Warranty reserve, beginning of year $ 94,060 $ 101,507 $ 62,742 Provision 47,003 51,668 82,860 Payments (53,656 ) (59,115 ) (44,095 ) Warranty reserve, end of year $ 87,407 $ 94,060 $ 101,507 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Undesignated Derivative Instruments | The undesignated derivative instruments are included on the accompanying consolidated balance sheet, as of December 31, 2015, as follows: Fair Value Balance Sheet Location Rate lock commitments: Gross assets $ 5,549 Gross liabilities 2,362 Net rate lock commitments $ 3,187 NVRM - Other assets Forward sales contracts: Gross assets $ 3,994 Gross liabilities 190 Net forward sales contracts $ 3,804 NVRM - Other assets |
Fair Value Measurement | The fair value measurement as of December 31, 2015 was as follows: Notional or Principal Amount Assumed Gain/(Loss) From Loan Sale Interest Rate Movement Effect Servicing Rights Value Security Price Change Total Fair Value Measurement Gain/(Loss) Rate lock commitments $ 462,329 $ (1,108 ) $ (774 ) $ 5,069 $ — $ 3,187 Forward sales contracts $ 737,052 — — — 3,804 3,804 Mortgages held for sale $ 319,212 (954 ) (2,353 ) 3,648 — 341 Total fair value measurement $ (2,062 ) $ (3,127 ) $ 8,717 $ 3,804 $ 7,332 |
Quarterly Results (unaudited) (
Quarterly Results (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014. Year Ended December 31, 2015 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter Revenues – homebuilding operations $ 1,528,084 $ 1,374,467 $ 1,221,111 $ 941,538 Gross profit – homebuilding operations $ 289,496 $ 262,795 $ 234,257 $ 159,870 Mortgage banking fees $ 27,191 $ 27,884 $ 22,522 $ 16,211 Net income $ 134,004 $ 116,470 $ 93,395 $ 39,058 Diluted earnings per share $ 31.92 $ 27.11 $ 21.91 $ 9.22 Contracts for sale, net of cancellations (units) 3,100 3,258 3,796 3,926 Settlements (units) 4,010 3,607 3,175 2,534 Backlog, end of period (units) 6,229 7,139 7,488 6,867 Loans closed $ 1,042,440 $ 951,872 $ 859,403 $ 638,627 Year Ended December 31, 2014 4th Quarter 3rd Quarter 2nd Quarter 1st 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 $ 20.70 $ 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 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Significant Accounting Policies [Line Items] | ||||
Cash | $ 425,316,000 | $ 545,419,000 | $ 866,253,000 | $ 1,153,507,000 |
Pre-tax recovery related to impairment of contract land deposits | 11,058,000 | 225,000 | $ 5,313,000 | |
Contract land deposit assets impairment valuation allowances | $ 42,239,000 | 56,074,000 | ||
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] | ||||
Cash | $ 397,522,000 | 514,780,000 | ||
Restricted cash | 23,440,000 | 24,106,000 | ||
Impairment of goodwill | 0 | |||
Homebuilding [Member] | Heartland Homes Inc [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Goodwill acquired from business acquisition | 441,000 | 441,000 | ||
Finite-lived intangibles acquired from business acquisition, net of accumulated amortization | $ 3,541,000 | 4,923,000 | ||
Weighted average life of finite-lived intangible assets | 4 years | |||
Mortgage Banking [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Cash | $ 26,804,000 | 30,158,000 | ||
Restricted cash | $ 2,038,000 | 1,947,000 | ||
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 | $ 462,329,000 | |||
Mortgage Banking [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Forward Sales Contracts [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Notional or Principal Amount | 737,052,000 | |||
Consolidated Joint Venture | ||||
Significant Accounting Policies [Line Items] | ||||
Cash | $ 990,000 | 481,000 | ||
Restricted cash | $ 160,000 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Weighted Average Shares and Share Equivalents Used to Calculate Basic and Diluted Earnings Per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Weighted average number of shares outstanding used to calculate basic EPS | 4,022 | 4,278 | 4,737 |
Dilutive securities: | |||
Stock options and restricted share units | 233 | 157 | 125 |
Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS | 4,255 | 4,435 | 4,862 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive securities | 50 | 757 | 157 |
Segment Information, Nature o39
Segment Information, Nature of Operations, and Certain Concentrations - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015MetropolitanAreaSegment | |
Segment Reporting Information [Line Items] | |
Number of metropolitan areas Ryan Homes product are sold | MetropolitanArea | 28 |
Senior Notes due 2022 [Member] | |
Segment Reporting Information [Line Items] | |
Senior notes interest rate | 3.95% |
Senior notes maturity | Sep. 15, 2022 |
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 |
Geographic Concentration Risk | Homebuilding [Member] | District of Columbia [Member] | |
Segment Reporting Information [Line Items] | |
Revenue derived | 31.00% |
Geographic Concentration Risk | Homebuilding [Member] | Maryland, Baltimore [Member] | |
Segment Reporting Information [Line Items] | |
Revenue derived | 13.00% |
Segment Information, Nature o40
Segment Information, Nature of Operations, and Certain Concentrations - Revenues (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Revenue Reconciling Item [Line Items] | |||||||||||
Consolidated revenues | $ 5,159,008 | $ 4,444,568 | $ 4,211,267 | ||||||||
Homebuilding [Member] | |||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | $ 1,528,084 | $ 1,374,467 | $ 1,221,111 | $ 941,538 | $ 1,306,632 | $ 1,185,160 | $ 1,084,080 | $ 799,187 | 5,065,200 | 4,375,059 | 4,134,481 |
Homebuilding [Member] | Mid Atlantic [Member] | |||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 3,022,789 | 2,617,108 | 2,439,387 | ||||||||
Homebuilding [Member] | North East [Member] | |||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 432,145 | 376,862 | 332,681 | ||||||||
Homebuilding [Member] | Mid East [Member] | |||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 1,014,920 | 892,513 | 908,198 | ||||||||
Homebuilding [Member] | South East [Member] | |||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||||||||
Revenues | 595,346 | 488,576 | 454,215 | ||||||||
Mortgage Banking [Member] | |||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||||||||
Mortgage Banking | $ 27,191 | $ 27,884 | $ 22,522 | $ 16,211 | $ 21,406 | $ 18,006 | $ 17,974 | $ 12,123 | $ 93,808 | $ 69,509 | $ 76,786 |
Segment Information, Nature o41
Segment Information, Nature of Operations, and Certain Concentrations - Profit before Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Profit before taxes | $ 603,212 | $ 453,546 | $ 418,696 |
Equity-based compensation expense | (54,091) | (63,227) | (34,296) |
Corporate interest expense | (23,559) | (23,140) | (22,385) |
Homebuilding [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Profit before taxes | 555,329 | 427,884 | 379,370 |
Corporate interest expense | (22,918) | (22,591) | (21,840) |
Mortgage Banking [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Profit before taxes | 47,883 | 25,662 | 39,326 |
Corporate interest expense | (641) | (549) | (545) |
Operating Segments [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Profit before taxes | 555,699 | 420,806 | 423,306 |
Corporate interest expense | (171,860) | (152,736) | (117,100) |
Operating Segments [Member] | Homebuilding [Member] | Mid Atlantic [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Profit before taxes | 322,829 | 271,965 | 276,399 |
Corporate interest expense | (107,748) | (96,364) | (72,351) |
Operating Segments [Member] | Homebuilding [Member] | North East [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Profit before taxes | 37,914 | 33,390 | 14,294 |
Corporate interest expense | (16,991) | (12,114) | (9,466) |
Operating Segments [Member] | Homebuilding [Member] | Mid East [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Profit before taxes | 86,336 | 47,538 | 55,537 |
Corporate interest expense | (27,263) | (26,300) | (22,587) |
Operating Segments [Member] | Homebuilding [Member] | South East [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Profit before taxes | 57,384 | 37,525 | 35,001 |
Corporate interest expense | (19,217) | (17,409) | (12,151) |
Operating Segments [Member] | Mortgage Banking [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Profit before taxes | 51,236 | 30,388 | 42,075 |
Corporate interest expense | (641) | (549) | (545) |
Reconciling Items [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Profit before taxes | 47,513 | 32,740 | (4,610) |
Contract land deposit reserve adjustment | 13,805 | 3,612 | 5,313 |
Equity-based compensation expense | (54,091) | (63,227) | (34,296) |
Corporate capital allocation | 171,170 | 152,140 | 116,458 |
Unallocated corporate overhead | (83,124) | (61,108) | (72,703) |
Consolidation adjustments and other | 22,622 | 23,867 | 2,361 |
Corporate interest expense | (22,869) | (22,544) | (21,743) |
Reconciling Items [Member] | Homebuilding [Member] | Mid Atlantic [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Corporate capital allocation | 107,705 | 96,328 | 72,272 |
Reconciling Items [Member] | Homebuilding [Member] | North East [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Corporate capital allocation | 16,987 | 12,107 | 9,461 |
Reconciling Items [Member] | Homebuilding [Member] | Mid East [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Corporate capital allocation | 27,263 | 26,299 | 22,580 |
Reconciling Items [Member] | Homebuilding [Member] | South East [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Corporate capital allocation | $ 19,215 | $ 17,406 | $ 12,145 |
Segment Information, Nature o42
Segment Information, Nature of Operations, and Certain Concentrations - Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Assets | $ 2,515,131 | $ 2,351,335 | ||
Cash and cash equivalents | 425,316 | 545,419 | $ 866,253 | $ 1,153,507 |
Contract land deposit reserve | (42,239) | (56,074) | ||
Homebuilding [Member] | ||||
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Assets | 2,135,581 | 2,088,019 | ||
Consolidated variable interest entity | 1,749 | 3,590 | ||
Cash and cash equivalents | 397,522 | 514,780 | ||
Deferred taxes | 161,805 | 165,189 | ||
Intangible assets and goodwill | 3,982 | 5,364 | ||
Mortgage Banking [Member] | ||||
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Assets | 379,550 | 263,316 | ||
Cash and cash equivalents | 26,804 | 30,158 | ||
Operating Segments [Member] | ||||
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Assets | 1,895,779 | 1,615,009 | ||
Operating Segments [Member] | Homebuilding [Member] | Mid Atlantic [Member] | ||||
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Assets | 994,804 | 917,689 | ||
Operating Segments [Member] | Homebuilding [Member] | North East [Member] | ||||
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Assets | 133,106 | 103,631 | ||
Operating Segments [Member] | Homebuilding [Member] | Mid East [Member] | ||||
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Assets | 220,094 | 192,781 | ||
Operating Segments [Member] | Homebuilding [Member] | South East [Member] | ||||
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Assets | 175,572 | 144,939 | ||
Operating Segments [Member] | Mortgage Banking [Member] | ||||
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Assets | 372,203 | 255,969 | ||
Reconciling Items [Member] | ||||
Segment Reporting Asset Reconciling Item [Line Items] | ||||
Assets | 619,352 | 736,326 | ||
Consolidated variable interest entity | 1,749 | 3,590 | ||
Cash and cash equivalents | 397,522 | 514,780 | ||
Deferred taxes | 161,805 | 165,189 | ||
Intangible assets and goodwill | 52,909 | 54,291 | ||
Contract land deposit reserve | (42,239) | (56,074) | ||
Consolidation adjustments and other | $ 47,606 | $ 54,550 |
Segment Information, Nature o43
Segment Information, Nature of Operations, and Certain Concentrations - Interest Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated interest income | $ 7,696 | $ 6,251 | $ 7,302 |
Mortgage Banking [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Interest income | 6,485 | 4,940 | 4,983 |
Operating Segments [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Interest income | 6,485 | 4,940 | 4,983 |
Consolidation adjustments and other [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Other unallocated interest income | $ 1,211 | $ 1,311 | $ 2,319 |
Segment Information, Nature o44
Segment Information, Nature of Operations, and Certain Concentrations - Interest Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | $ 23,559 | $ 23,140 | $ 22,385 |
Homebuilding [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 22,918 | 22,591 | 21,840 |
Mortgage Banking [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 641 | 549 | 545 |
Operating Segments [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 171,860 | 152,736 | 117,100 |
Operating Segments [Member] | Homebuilding [Member] | Mid Atlantic [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 107,748 | 96,364 | 72,351 |
Operating Segments [Member] | Homebuilding [Member] | North East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 16,991 | 12,114 | 9,466 |
Operating Segments [Member] | Homebuilding [Member] | Mid East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 27,263 | 26,300 | 22,587 |
Operating Segments [Member] | Homebuilding [Member] | South East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 19,217 | 17,409 | 12,151 |
Operating Segments [Member] | Mortgage Banking [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 641 | 549 | 545 |
Reconciling Items [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated interest expense | 22,869 | 22,544 | 21,743 |
Corporate capital allocation | (171,170) | (152,140) | (116,458) |
Reconciling Items [Member] | Homebuilding [Member] | Mid Atlantic [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Corporate capital allocation | (107,705) | (96,328) | (72,272) |
Reconciling Items [Member] | Homebuilding [Member] | North East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Corporate capital allocation | (16,987) | (12,107) | (9,461) |
Reconciling Items [Member] | Homebuilding [Member] | Mid East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Corporate capital allocation | (27,263) | (26,299) | (22,580) |
Reconciling Items [Member] | Homebuilding [Member] | South East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Corporate capital allocation | $ (19,215) | $ (17,406) | $ (12,145) |
Segment Information, Nature o45
Segment Information, Nature of Operations, and Certain Concentrations - Depreciation and Amortization (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | $ 21,534 | $ 17,614 | $ 13,391 |
Operating Segments [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | 16,777 | 13,713 | 9,225 |
Operating Segments [Member] | Homebuilding [Member] | Mid Atlantic [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | 7,876 | 6,489 | 4,784 |
Operating Segments [Member] | Homebuilding [Member] | North East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | 1,571 | 1,208 | 853 |
Operating Segments [Member] | Homebuilding [Member] | Mid East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | 4,003 | 3,212 | 1,911 |
Operating Segments [Member] | Homebuilding [Member] | South East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | 2,191 | 1,715 | 1,008 |
Operating Segments [Member] | Mortgage Banking [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | 1,136 | 1,089 | 669 |
Consolidation adjustments and other [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated depreciation and amortization | $ 4,757 | $ 3,901 | $ 4,166 |
Segment Information, Nature o46
Segment Information, Nature of Operations, and Certain Concentrations - Expenditures for Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated expenditures for property and equipment | $ 18,277 | $ 31,672 | $ 19,016 |
Operating Segments [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated expenditures for property and equipment | 16,299 | 24,392 | 18,278 |
Operating Segments [Member] | Homebuilding [Member] | Mid Atlantic [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated expenditures for property and equipment | 8,287 | 9,047 | 7,947 |
Operating Segments [Member] | Homebuilding [Member] | North East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated expenditures for property and equipment | 2,220 | 2,311 | 1,454 |
Operating Segments [Member] | Homebuilding [Member] | Mid East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated expenditures for property and equipment | 3,774 | 6,982 | 3,282 |
Operating Segments [Member] | Homebuilding [Member] | South East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated expenditures for property and equipment | 1,753 | 3,472 | 2,662 |
Operating Segments [Member] | Mortgage Banking [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated expenditures for property and equipment | 265 | 2,580 | 2,933 |
Consolidation adjustments and other [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Consolidated expenditures for property and equipment | $ 1,978 | $ 7,280 | $ 738 |
Segment Information, Nature o47
Segment Information, Nature of Operations, and Certain Concentrations - Profit before Taxes (Parenthetical) (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2013USD ($) | |
Segment Reporting [Abstract] | |
Pre-tax compensation expense reversal attributable to an adjustment of the option forfeiture rates | $ 7,900 |
Segment Information, Nature o48
Segment Information, Nature of Operations, and Certain Concentrations - Corporate Capital Allocation Charge (Detail) - Reconciling Items [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Corporate capital allocation charge | $ 171,170 | $ 152,140 | $ 116,458 |
Homebuilding [Member] | Mid Atlantic [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Corporate capital allocation charge | 107,705 | 96,328 | 72,272 |
Homebuilding [Member] | North East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Corporate capital allocation charge | 16,987 | 12,107 | 9,461 |
Homebuilding [Member] | Mid East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Corporate capital allocation charge | 27,263 | 26,299 | 22,580 |
Homebuilding [Member] | South East [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Corporate capital allocation charge | $ 19,215 | $ 17,406 | $ 12,145 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) $ in Thousands | 1 Months Ended | ||
Feb. 29, 2016USD ($)LotParcel | Dec. 31, 2015USD ($)Lot | Dec. 31, 2014USD ($) | |
Variable Interest Entity [Line Items] | |||
Maximum range of deposits required under the purchase agreements | 10.00% | ||
Contract land deposits | $ 385,534 | $ 350,750 | |
Subsequent Event [Member] | |||
Variable Interest Entity [Line Items] | |||
Acquisition costs of raw parcel of land | $ 150,000 | ||
Number of lots expected to produce from raw land acquisition | Lot | 1,000 | ||
Number of lots under contract with unrelated party | Lot | 160 | ||
Variable Interest Entities [Member] | |||
Variable Interest Entity [Line Items] | |||
Maximum range of deposits required under the purchase agreements | 10.00% | ||
Lots controlled by NVR | Lot | 68,800 | ||
Contract land deposits in cash | $ 373,300 | ||
Letters of credit related to lots | $ 3,000 | ||
Contract on Raw Ground with Landowners [Member] | |||
Variable Interest Entity [Line Items] | |||
Lots controlled by NVR | Lot | 8,800 | ||
Contract land deposits | $ 12,200 | ||
Letters of credit related to land contract | 350 | ||
Refundable deposits and letters of credit | 8,700 | ||
Contract land deposits amount related to property acquired | $ 5,000 | ||
Contract on Raw Ground with Landowners [Member] | Subsequent Event [Member] | |||
Variable Interest Entity [Line Items] | |||
Number of raw parcels of land acquired | Parcel | 1 | ||
Acquisition costs of raw parcel of land | $ 150,000 | ||
Number of lots expected to produce from raw land acquisition | Lot | 1,000 | ||
Number of lots under contract with unrelated party | Lot | 160 |
Variable Interest Entities - To
Variable Interest Entities - Total Risk of Loss Related to Contract Land Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Variable Interest Entity Reporting Entity Involvement Maximum Loss Exposure [Abstract] | |||
Contract land deposits | $ 385,534 | $ 350,750 | |
Loss reserve on contract land deposits | (42,239) | (56,074) | |
Contract land deposits, net | 343,295 | 294,676 | |
Contingent obligations in the form of letters of credit | 3,302 | 4,674 | |
Contingent specific performance obligations | [1] | 1,505 | 1,505 |
Total risk of loss | $ 348,102 | $ 300,855 | |
[1] | As of both December 31, 2015 and 2014, the Company was committed to purchase 10 finished lots under specific performance obligations. |
Variable Interest Entities - 51
Variable Interest Entities - Total Risk of Loss Related to Contract Land Deposits (Parenthetical) (Detail) - Lot | Dec. 31, 2015 | Dec. 31, 2014 |
Variable Interest Entity Reporting Entity Involvement Maximum Loss Exposure [Abstract] | ||
Finished lots committed to purchase under specific performance obligations | 10 | 10 |
Joint Ventures - Additional Inf
Joint Ventures - Additional Information (Detail) $ in Thousands | Dec. 31, 2015USD ($)LotJointVenture | Dec. 31, 2014USD ($)LotJointVenture |
Joint Ventures [Line Items] | ||
Aggregate investment | $ | $ 60,500 | $ 82,000 |
Number of joint ventures | JointVenture | 6 | 5 |
Expected production of finished lots | Lot | 8,000 | 8,800 |
Total lots not under contract with NVR under the joint venture | Lot | 3,300 | 3,300 |
Additional funding commitments in the aggregate | $ | $ 11,500 | $ 11,850 |
Number of joint ventures with additional funding commitment | JointVenture | 3 | 2 |
Number of joint ventures NVR is not primary beneficiary | JointVenture | 5 | |
Other Assets [Member] | ||
Joint Ventures [Line Items] | ||
Aggregate investment | $ | $ 59,800 | $ 80,100 |
Joint Ventures - Condensed Bala
Joint Ventures - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets: | ||||
Cash | $ 425,316 | $ 545,419 | $ 866,253 | $ 1,153,507 |
Land under development | 60,611 | 33,689 | ||
Liabilities and equity: | ||||
Equity | 1,239,165 | 1,124,255 | $ 1,261,352 | $ 1,480,477 |
Total liabilities and shareholders' equity | 2,515,131 | 2,351,335 | ||
Consolidated Joint Venture | ||||
Assets: | ||||
Cash | 990 | 481 | ||
Restricted cash | 160 | |||
Other assets | 379 | 332 | ||
Land under development | 380 | 2,617 | ||
Total assets | 1,749 | 3,590 | ||
Liabilities and equity: | ||||
Debt | 64 | |||
Accrued expenses | 567 | 1,231 | ||
Equity | 1,182 | 2,295 | ||
Total liabilities and shareholders' equity | $ 1,749 | $ 3,590 |
Land Under Development - Additi
Land Under Development - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Feb. 29, 2016USD ($)Lot | Dec. 31, 2015USD ($)LotParcel | Dec. 31, 2014USD ($)LotParcel | |
Real Estate Properties [Line Items] | |||
Number of raw parcels of land owned | Parcel | 4 | 4 | |
Carrying value of raw parcels of land | $ 60,611 | $ 33,689 | |
Number of finished lots for use in homebuilding operations | Lot | 980 | 480 | |
Aggregate additional funding commitments related to raw land property development | $ 19,200 | ||
Expected development credit offset amount | 9,600 | ||
Letters of credit related to land under development | $ 2,200 | ||
Subsequent Event [Member] | |||
Real Estate Properties [Line Items] | |||
Acquisition costs of raw parcel of land | $ 150,000 | ||
Number of lots expected to produce from raw land acquisition | Lot | 1,000 | ||
Number of lots under contract with unrelated party | Lot | 160 |
Capitalized Interest - Summary
Capitalized Interest - Summary of Interest Costs Incurred, Capitalized, Expensed and Charged to Cost of Sales (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest Costs Incurred Capitalized [Abstract] | |||
Interest capitalized, beginning of year | $ 4,072 | $ 3,294 | $ 893 |
Interest incurred | 25,155 | 24,994 | 25,048 |
Interest expense | (23,559) | (23,140) | (22,385) |
Interest charged to cost of sales | (1,234) | (1,076) | (262) |
Interest capitalized, end of year | $ 4,434 | $ 4,072 | $ 3,294 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - Elm Street [Member] $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)Lot | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Related Party Transaction [Line Items] | |||
Related party forward lot purchase agreement purchase price | $ 68,000 | ||
Number of related parties for forward lot purchase agreement | Lot | 1 | ||
Market price of developed lots | $ 41,200 | $ 50,100 | $ 38,400 |
Expected number of lots from joint venture with Elm Street | Lot | 2,400 | ||
Development costs to manage property under related party transactions | $ 143 | $ 143 | $ 143 |
Property Plant and Equipment Ne
Property Plant and Equipment Net - Summary of Property Plant and Equipment Net Table (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Homebuilding [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 116,373 | $ 106,067 |
Less: accumulated depreciation | (71,722) | (59,825) |
Property, Plant and Equipment, Net | 44,651 | 46,242 |
Homebuilding [Member] | Office Facilities and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 31,696 | 29,326 |
Homebuilding [Member] | Model Home Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 33,041 | 28,945 |
Homebuilding [Member] | Production Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 51,636 | 47,796 |
Mortgage Banking [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Net | 5,313 | 6,189 |
Mortgage Banking [Member] | Office Facilities and Other [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 10,629 | 10,508 |
Less: accumulated depreciation | (5,316) | (4,319) |
Property, Plant and Equipment, Net | $ 5,313 | $ 6,189 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Jan. 18, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Repurchase agreement maximum loan borrowing capacity | $ 25,000,000 | ||
Expiration date of repurchase agreement | Jul. 27, 2016 | ||
Repurchase facility maximum pricing rate | 2.70% | ||
Debt outstanding under repurchase agreement | $ 0 | $ 0 | |
Borrowing base | $ 0 | ||
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Repurchase agreement maximum loan borrowing capacity | $ 150,000,000 | ||
Increase in commitment available under repurchase agreement | $ 50,000,000 | ||
Senior Notes due 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Debt issuance date | Sep. 10, 2012 | ||
Senior notes principal amount | $ 600,000,000 | ||
Senior notes maturity | Sep. 15, 2022 | ||
Senior notes effective interest rate | 3.97% | ||
Senior notes proceeds | $ 593,900,000 | ||
Senior notes interest rate | 3.95% | ||
Frequency of senior notes payment | semi-annually in arrears on March 15 and September 15 |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | 192 Months Ended | 264 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2015 | |
Statement Of Stockholders Equity [Abstract] | |||||
Common shares outstanding | 3,891 | 4,049 | 3,891 | 3,891 | |
Treasury stock repurchases, shares | 290 | 508 | 581 | 24,100 | |
Treasury stock repurchases, value | $ 431,367 | $ 567,544 | $ 554,491 | $ 6,307,000 | |
Reissued shares during the period, shares | 131 | 123 | 102 | 7,418 |
Common Stock - Share Repurchase
Common Stock - Share Repurchase of Common Stock (Detail) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | 264 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Statement Of Stockholders Equity [Abstract] | ||||
Aggregate purchase price | $ 431,367 | $ 567,544 | $ 554,491 | $ 6,307,000 |
Number of shares repurchased | 290 | 508 | 581 | 24,100 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 180,895 | $ 148,221 | $ 137,675 |
State | 36,142 | 28,881 | 30,352 |
Deferred: | |||
Federal | 2,681 | (4,451) | (13,402) |
State | 567 | (735) | (2,406) |
Total | $ 220,285 | $ 171,916 | $ 152,219 |
Income Taxes - Income Tax Benef
Income Taxes - Income Tax Benefits in Shareholders' Equity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefits arising from compensation expense for tax purposes in excess of amounts recognized for financial statement purposes | $ 23,311 | $ 9,437 | $ 20,636 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes on Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Other accrued expenses and contract land deposit reserve | $ 77,781 | $ 84,817 |
Deferred compensation | 7,280 | 7,500 |
Equity-based compensation expense | 45,361 | 46,257 |
Inventory | 12,722 | 11,153 |
Unrecognized tax benefit | 24,740 | 24,485 |
Other | 9,391 | 5,847 |
Total deferred tax assets | 177,275 | 180,059 |
Less: deferred tax liabilities | 6,489 | 7,371 |
Net deferred tax position | $ 170,786 | $ 172,688 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Estimated federal taxable income | $ 472,728 | $ 391,781 | |
Statutory federal income tax rate | 35.00% | ||
Effective tax rate | 36.52% | 37.90% | 36.36% |
Income tax expense due to reversal of previously recognized tax deductions | $ 7,000 | ||
Unrecognized tax benefits that would affect effective tax rate | $ 30,284 | ||
Accrued interest on unrecognized tax benefits | 125 | $ 625 | |
Reversal of accrued interest on unrecognized tax benefits | 184 | ||
Total accrued interest on unrecognized tax benefits | 21,221 | $ 21,096 | |
Reduction in unrecognized tax benefits | $ 10,210 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense Reconciliation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income taxes computed at the federal statutory rate | $ 211,124 | $ 158,741 | $ 146,544 |
State income taxes, net of federal income tax benefit | 23,919 | 18,800 | 18,210 |
Other, net | (14,758) | (5,625) | (12,535) |
Total | $ 220,285 | $ 171,916 | $ 152,219 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Balance at beginning of year | $ 46,004 | $ 43,796 |
Additions based on tax positions related to the current year | 3,897 | 6,008 |
Reductions for tax positions of prior years | (3,310) | (3,800) |
Settlements | 0 | 0 |
Balance at end of year | $ 46,591 | $ 46,004 |
Equity-Based Compensation, Pr67
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans - Additional Information (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | 192 Months Ended | ||
Dec. 31, 2015USD ($)CompensationPlan$ / sharesshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | Dec. 31, 2015USD ($)shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Equity-based compensation expense | $ | $ 54,091 | $ 63,227 | $ 34,296 | |
Tax benefit related to equity-based compensation costs | $ | 19,700 | $ 22,900 | 12,100 | |
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 | $ | $ 152,000 | $ 152,000 | ||
Weighted-average period over which the unrecognized compensation will be recorded | 2 years 4 months 24 days | |||
Reissued shares during the period, shares | 131,000 | 123,000 | 102,000 | 7,418,000 |
Combined plan contribution | $ | $ 17,900 | $ 16,980 | $ 12,012 | |
Shares contributed to the Employee Stock Ownership Plan | 11,000 | 14,000 | ||
Number of deferred compensation plans | CompensationPlan | 2 | |||
Common stock shares held in rabbi trust account | 108,614 | 108,614 | 108,614 | |
Shares of common stock contributed to rabbi trust account | 0 | 0 | ||
RSUs [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Exercise price | $ / shares | $ 0 | |||
RSUs [Member] | Two Thousand Ten Equity Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted share units grants during period | 0 | |||
Options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of years for options granted | 10 years | |||
Options [Member] | 2014 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted share units vesting period or Option vesting period | 4 years | |||
Options issued under the plan | 38,000 | |||
Options vesting rights | over four years in 25% increments beginning on December 31, 2016 | |||
Percentage of options vesting rights | 25.00% | |||
Options [Member] | Two Thousand Ten Equity Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted share units vesting period or Option vesting period | 4 years | |||
Options issued under the plan | 10,000 | |||
Options vesting rights | over four years in 25% increments beginning on December 31, 2017 | |||
Percentage of options vesting rights | 25.00% | |||
Options [Member] | Option Grant Contingent upon Continued Employment or Service as a Director and Achievement of Performance Metric | 2014 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Percentage of options vesting rights | 50.00% | |||
Options granted | 24,000 | |||
Options [Member] | Option Grant Solely Contingent upon Continued Employment or Continued Service as a Director | 2014 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Percentage of options vesting rights | 50.00% | |||
Options granted | 14,000 | |||
Options [Member] | Options Granted in 2015 [Member] | 2014 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options vesting rights | Over four years in 25% increments beginning on December 31, 2017 | |||
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 | |||
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] | RSUs [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Restricted share units vesting period or Option vesting period | 4 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 |
Equity-Based Compensation, Pr68
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans - Summary of Equity-Based Compensation Plans with Grants Outstanding (Detail) | Dec. 31, 2015shares | |
1998 Management Long-Term Stock Option Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares Authorized | 1,000,000 | |
Options/RSUs Outstanding | 6,000 | |
1998 Directors' Long-Term Stock Option Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares Authorized | 150,000 | |
Options/RSUs Outstanding | 8,000 | |
2000 Broadly-Based Stock Option Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares Authorized | 2,000,000 | |
Options/RSUs Outstanding | 126,000 | |
2010 Equity Incentive Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares Authorized | 700,000 | [1] |
Options/RSUs Outstanding | 359,000 | [1] |
Shares Available to Issue | 39,000 | [1] |
NVR, Inc. 2014 Equity Incentive Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Shares Authorized | 950,000 | [2] |
Options/RSUs Outstanding | 648,000 | [2] |
Shares Available to Issue | 302,000 | [2] |
[1] | During 2010, the Company’s shareholders approved the 2010 Equity Incentive Plan (the “2010 Plan”). The 2010 Plan authorizes the Company to issue Options and RSUs to key management employees, including executive officers and Board members. Of the 700 aggregate shares available to issue, up to 240 may be granted in the form of RSUs. There were 308 Options and 51 RSUs outstanding as of December 31, 2015. Of the 39 shares available to be issued under the 2010 Plan, 36 may be granted as RSUs. | |
[2] | 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. 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. The performance metric is based on the Company’s return on capital performance during a specified three year period based on the date of Option grant, with the initial performance period being 2014 through 2016. Options granted under the 2014 Plan generally vest annually over four years in 25% increments beginning on December 31, 2016. |
Equity-Based Compensation, Pr69
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans - Summary of Equity-Based Compensation Plans with Grants Outstanding (Parenthetical) (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options outstanding | 1,096,000 | 1,201,000 | |
Two Thousand Ten Equity Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares Authorized | [1] | 700,000 | |
Shares Available to Issue | [1] | 39,000 | |
Two Thousand Ten Equity Plan | RSUs [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares Authorized | 240,000 | ||
Restricted share units outstanding | 51,000 | 55,000 | |
Shares Available to Issue | 36,000 | ||
Two Thousand Ten Equity Plan | Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options outstanding | 308,000 | ||
Shares Available to Issue | 39,000 | ||
Restricted share units vesting period or Option vesting period | 4 years | ||
Options vesting rights | over four years in 25% increments beginning on December 31, 2017 | ||
2014 Plan [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Shares Authorized | [2] | 950,000 | |
Shares Available to Issue | [2] | 302,000 | |
2014 Plan [Member] | Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Percentage of options vesting rights | 25.00% | ||
Performance metric period | 3 years | ||
Restricted share units vesting period or Option vesting period | 4 years | ||
Options vesting rights | over four years in 25% increments beginning on December 31, 2016 | ||
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% | ||
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% | ||
[1] | During 2010, the Company’s shareholders approved the 2010 Equity Incentive Plan (the “2010 Plan”). The 2010 Plan authorizes the Company to issue Options and RSUs to key management employees, including executive officers and Board members. Of the 700 aggregate shares available to issue, up to 240 may be granted in the form of RSUs. There were 308 Options and 51 RSUs outstanding as of December 31, 2015. Of the 39 shares available to be issued under the 2010 Plan, 36 may be granted as RSUs. | ||
[2] | 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. 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. The performance metric is based on the Company’s return on capital performance during a specified three year period based on the date of Option grant, with the initial performance period being 2014 through 2016. Options granted under the 2014 Plan generally vest annually over four years in 25% increments beginning on December 31, 2016. |
Equity-Based Compensation, Pr70
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans - Equity-Based Compensation Plans (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Stock Options [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding at beginning of period (Shares) | 1,201,000 |
Granted (Shares) | 48,000 |
Exercised (Shares) | (129,000) |
Forfeited (Shares) | (24,000) |
Outstanding at end of period (Shares) | 1,096,000 |
Exercisable at end of period (Shares) | 272,000 |
Outstanding at beginning of period (Weighted Average Exercise Price) | $ / shares | $ 947.39 |
Granted (Weighted Average Exercise Price) | $ / shares | 1,417.22 |
Exercised (Weighted Average Exercise Price) | $ / shares | 663.96 |
Forfeited (Weighted Average Exercise Price) | $ / shares | 1,060.29 |
Outstanding at end of period (Weighted Average Exercise Price) | $ / shares | 998.88 |
Exercisable at end of period (Weighted Average Exercise Price) | $ / shares | $ 721.35 |
Outstanding at end of period (Weighted Average Remaining Contract Life (Years) | 7 years 4 months 24 days |
Exercisable at end of period (Weighted Average Remaining Contract Life (Years) | 4 years 9 months 18 days |
Outstanding at end of period (Aggregate Intrinsic Value) | $ | $ 705,684 |
Exercisable at end of period (Aggregate Intrinsic Value) | $ | $ 250,617 |
Two Thousand Ten Equity Plan | Stock Options [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding at end of period (Shares) | 308,000 |
Two Thousand Ten Equity Plan | RSUs [Member] | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Outstanding at beginning of period (Shares) | 55,000 |
Granted (Shares) | 0 |
Vested (Shares) | (2,000) |
Forfeited (Shares) | (2,000) |
Outstanding at end of period (Shares) | 51,000 |
Vested, but not issued at end of period (Shares) | 33,000 |
Outstanding at end of period (Aggregate Intrinsic Value) | $ | $ 83,340 |
Vested, but not issued at end of period (Aggregate Intrinsic Value) | $ | $ 53,710 |
Equity-Based Compensation, Pr71
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans - Black-Scholes Option-Pricing Model Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Estimated option life | 5 years 2 months 1 day | 5 years 1 month 28 days | 5 years 2 months 12 days |
Risk free interest rate (range), minimum | 1.04% | 1.06% | 0.42% |
Risk free interest rate (range), maximum | 2.07% | 2.49% | 2.10% |
Expected volatility (range), minimum | 17.00% | 18.26% | 17.98% |
Expected volatility (range), maximum | 26.79% | 30.57% | 32.72% |
Expected dividend rate | 0.00% | 0.00% | 0.00% |
Weighted average grant-date fair value per share of options granted | $ 296.50 | $ 267.66 | $ 268.13 |
Equity-Based Compensation, Pr72
Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans - Exercised Option Proceeds (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Aggregate exercise proceeds | [1] | $ 85,948 | $ 76,153 | $ 14,834 |
Aggregate intrinsic value on exercise dates | $ 99,288 | $ 62,136 | $ 84,908 | |
[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 Li73
Commitments and Contingent Liabilities - Future Minimum Lease Payments under Operating Leases (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,016 | $ 24,032 |
2,017 | 17,926 |
2,018 | 13,945 |
2,019 | 12,791 |
2,020 | 8,291 |
Thereafter | 22,414 |
Subtotal | 99,399 |
Sublease income | (48) |
Total minimum lease payments | $ 99,351 |
Commitments and Contingent Li74
Commitments and Contingent Liabilities - Additional Information (Detail) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015USD ($)LotContract | Dec. 31, 2014USD ($)Lot | Dec. 31, 2013USD ($) | ||
Commitments And Contingencies Disclosure [Abstract] | ||||
Rent expense under operating leases | $ 48,056 | $ 45,508 | $ 39,608 | |
Maximum range of deposits required under the purchase agreements | 10.00% | |||
Term of business plan | 5 years | |||
Contingent forfeitable deposits with land developers | $ 94,200 | |||
Number of specific performance contracts | Contract | 1 | |||
Finished lots committed to purchase under specific performance obligations | Lot | 10 | 10 | ||
Purchase price of finished lots committed to purchase under specific performance obligations | [1] | $ 1,505 | $ 1,505 | |
Aggregate additional funding commitments related to raw land property development | 19,200 | |||
Expected development credit offset amount | 9,600 | |||
Contingent obligations under bonds or letters of credit arrangements | 58,300 | |||
Contingent obligations under letters of credit arrangements | $ 11,900 | |||
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 | |||
[1] | As of both December 31, 2015 and 2014, the Company was committed to purchase 10 finished lots under specific performance obligations. |
Commitments and Contingent Li75
Commitments and Contingent Liabilities - Summary of Changes in Product Warranty/Liability Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Product Warranties Disclosures [Abstract] | |||
Warranty reserve, beginning of year | $ 94,060 | $ 101,507 | $ 62,742 |
Provision | 47,003 | 51,668 | 82,860 |
Payments | (53,656) | (59,115) | (44,095) |
Warranty reserve, end of year | $ 87,407 | $ 94,060 | $ 101,507 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total Fair Value Measurement Gain/(Loss) | $ 7,332 | ||
Homebuilding [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior Notes carrying value | 599,260 | $ 599,166 | |
Homebuilding [Member] | Senior Notes due 2022 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior Notes carrying value | 599,260 | ||
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 | 606,000 | ||
Mortgage Banking [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of mortgage loans held for sale | 319,553 | 205,664 | |
Mortgage Banking [Member] | Level 2 [Member] | Not Designated as Hedging Instrument [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value adjustment income (expense) | 3,508 | $ 3,305 | $ 3,021 |
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 | $ 462,329 | ||
Average basis points of loan amount | 1.20% | ||
Fallout rate of measuring fair value of rate lock commitments | 12.00% | ||
Total Fair Value Measurement Gain/(Loss) | $ 3,187 | ||
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 | 737,052 | ||
Total Fair Value Measurement Gain/(Loss) | 3,804 | ||
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 | 319,212 | ||
Fair value of mortgage loans held for sale | 319,553 | ||
Total Fair Value Measurement Gain/(Loss) | $ 341 |
Fair Value - Undesignated Deriv
Fair Value - Undesignated Derivative Instruments (Detail) - Mortgage Banking [Member] - Level 2 [Member] - Fair Value, Measurements, Recurring [Member] $ in Thousands | Dec. 31, 2015USD ($) |
Rate Lock Commitments [Member] | |
Derivatives Fair Value [Line Items] | |
Gross assets | $ 5,549 |
Gross liabilities | 2,362 |
Fair value of derivatives, assets | 3,187 |
Forward Sales Contracts [Member] | |
Derivatives Fair Value [Line Items] | |
Gross assets | 3,994 |
Gross liabilities | 190 |
Fair value of derivatives, assets | $ 3,804 |
Fair Value - Fair Value Measure
Fair Value - Fair Value Measurement (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Assumed Gain/(Loss) From Loan Sale | $ (2,062) |
Interest Rate Movement Effect | (3,127) |
Servicing Rights Value | 8,717 |
Security Price Change | 3,804 |
Total Fair Value Measurement Gain/(Loss) | 7,332 |
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 | 462,329 |
Assumed Gain/(Loss) From Loan Sale | (1,108) |
Interest Rate Movement Effect | (774) |
Servicing Rights Value | 5,069 |
Total Fair Value Measurement Gain/(Loss) | 3,187 |
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 | 737,052 |
Security Price Change | 3,804 |
Total Fair Value Measurement Gain/(Loss) | 3,804 |
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 | 319,212 |
Assumed Gain/(Loss) From Loan Sale | (954) |
Interest Rate Movement Effect | (2,353) |
Servicing Rights Value | 3,648 |
Total Fair Value Measurement Gain/(Loss) | $ 341 |
Mortgage Loan Losses Allowance
Mortgage Loan Losses Allowance - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Mortgage Loan Loss Allowance [Abstract] | |||
Pre-tax charges for loan losses related to mortgage loans sold | $ 2,700 | $ 2,400 | $ 2,300 |
Mortgage loan loss allowance | $ 12,300 | $ 10,000 |
Quarterly Results (unaudited) -
Quarterly Results (unaudited) - Quarterly Financial Data and Operating Information (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($)ContractSettlementsBacklog$ / shares | Sep. 30, 2015USD ($)ContractSettlementsBacklog$ / shares | Jun. 30, 2015USD ($)ContractSettlementsBacklog$ / shares | Mar. 31, 2015USD ($)ContractSettlementsBacklog$ / shares | Dec. 31, 2014USD ($)ContractSettlementsBacklog$ / shares | Sep. 30, 2014USD ($)ContractSettlementsBacklog$ / shares | Jun. 30, 2014USD ($)ContractSettlementsBacklog$ / shares | Mar. 31, 2014USD ($)ContractSettlementsBacklog$ / shares | Dec. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Dec. 31, 2013USD ($)$ / shares | |
Quarterly Financial Information [Line Items] | |||||||||||
Net income | $ 134,004 | $ 116,470 | $ 93,395 | $ 39,058 | $ 99,451 | $ 90,152 | $ 68,178 | $ 23,849 | $ 382,927 | $ 281,630 | $ 266,477 |
Diluted earnings per share | $ / shares | $ 31.92 | $ 27.11 | $ 21.91 | $ 9.22 | $ 23.24 | $ 20.70 | $ 15.17 | $ 5.16 | $ 89.99 | $ 63.50 | $ 54.81 |
Contracts for sale, net of cancellations (units) | Contract | 3,100 | 3,258 | 3,796 | 3,926 | 2,713 | 2,936 | 3,415 | 3,325 | |||
Settlements (units) | Settlements | 4,010 | 3,607 | 3,175 | 2,534 | 3,469 | 3,236 | 2,943 | 2,211 | |||
Backlog, end of period (units) | Backlog | 6,229 | 7,139 | 7,488 | 6,867 | 5,475 | 6,231 | 6,531 | 6,059 | |||
Loans closed | $ 1,042,440 | $ 951,872 | $ 859,403 | $ 638,627 | $ 881,930 | $ 803,125 | $ 675,625 | $ 472,933 | |||
Homebuilding [Member] | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Revenues – homebuilding operations | 1,528,084 | 1,374,467 | 1,221,111 | 941,538 | 1,306,632 | 1,185,160 | 1,084,080 | 799,187 | $ 5,065,200 | $ 4,375,059 | $ 4,134,481 |
Gross profit – homebuilding operations | 289,496 | 262,795 | 234,257 | 159,870 | 236,031 | 225,105 | 201,302 | 144,035 | |||
Mortgage Banking [Member] | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Mortgage banking fees | $ 27,191 | $ 27,884 | $ 22,522 | $ 16,211 | $ 21,406 | $ 18,006 | $ 17,974 | $ 12,123 | $ 93,808 | $ 69,509 | $ 76,786 |