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