Equity-Based Compensation, Profit Sharing and Deferred Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

The following table provides additional information relative to NVR’s equity-based compensation plans for the year ended December 31, 2013:


	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contract Life (Years)		Aggregate Intrinsic Value
Stock Options
Outstanding at beginning of period		639,078		$	679.70
Granted		121,724			997.46
Exercised		(28,749	)		515.98
Forfeited		(65,017	)		726.49

Outstanding at end of period		667,036		$	740.18		6.8	$	190,660

Exercisable at end of period		274,786		$	638.41		5.5	$	106,507


RSUs (1)
Outstanding at beginning of period		82,619
Granted		35,491
Exercised		(73,101	)

Outstanding at end of period		45,009						$	46,180

Vested at end of period		4,885						$	5,012

(1)	RSU grants were issued at a $0 exercise price.

Black-Scholes Option-Pricing Model Assumptions

The fair value of the Options granted during 2013, 2012 and 2011 were estimated on the grant date using the Black-Scholes option-pricing model based on the following assumptions:


	2013	2012	2011
Estimated option life	5.20 years	4.95 years	4.79 years
Risk free interest rate (range)	0.42% - 2.10%	0.35% - 1.84%	0.44% - 2.86%
Expected volatility (range)	17.98% - 32.72%	17.71% - 34.43%	31.29% - 37.43%
Expected dividend rate	0.00%	0.00%	0.00%
Weighted average grant-date fair value per share of options granted	$268.13	$221.45	$230.38

Exercised Option Proceeds

Information with respect to the vested RSUs and exercised Options is as follows:


	2013		2012		2011
Aggregate exercise proceeds (1)	$	14,834	$	73,211	$	108,322
Aggregate intrinsic value on exercise dates	$	84,908	$	101,334	$	142,381

(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.

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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