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

12 Months Ended

Dec. 31, 2014

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, 2014:

	Shares			Weighted Avg. Per Share Exercise Price		Weighted Avg. Remaining Contract Life (years)		Aggregate Intrinsic Value
Stock Options
Outstanding at December 31, 2013		667		$	740.18
Granted		683			1,095.69
Exercised		(118	)		644.60
Forfeited		(31	)		910.36
Outstanding at December 31, 2014		1,201		$	947.39		7.9	$	393,866
Exercisable at December 31, 2014		346		$	676.37		5.1	$	207,487

RSUs (1)
Outstanding at December 31, 2013		45
Granted		16
Vested		(5	)
Forfeited		(1	)
Outstanding at December 31, 2014		55						$	70,773
Vested, but not issued at December 31, 2014		2						$	2,713

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

Black-Scholes Option-Pricing Model Assumptions

The fair value of the Options granted during 2014, 2013 and 2012 was estimated on the grant date using the Pricing Model, based on the following assumptions:

	2014		2013		2012
Estimated option life	5.16 years		5.20 years		4.95 years
Risk free interest rate (range)	1.06%-2.49%		0.42%-2.10%		0.35%-1.84%
Expected volatility (range)	18.26%-30.57%		17.98%-32.72%		17.71%-34.43%
Expected dividend rate		0.00%		0.00%		0.00%
Weighted average grant-date fair value per share of options granted	$	267.66	$	268.13	$	221.45

Exercised Option Proceeds

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

	Year Ended December 31,
	2014		2013		2012
Aggregate exercise proceeds (1)	$	76,153	$	14,834	$	73,211
Aggregate intrinsic value on exercise dates	$	62,136	$	84,908	$	101,334

(1)	Aggregate exercise proceeds include the Option exercise price received in cash or the fair market value of NVR stock surrendered by the optionee in lieu of cash.

- 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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