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.