4.	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.

During February 2016, the Company purchased a land parcel which included both land under development and finished lots for approximately $150,000. The parcel is expected to produce approximately 1,000 lots, of which approximately 160 lots were under contract with unrelated parties at the date of purchase. As of March 31, 2016, the carrying values of the land under development, unsold finished lot inventory and sold finished lot inventory related to this purchase were approximately $108,000, $26,000 and $13,000, respectively. During the first quarter, the Company sold 34 lots under contract with unrelated parties for approximately $10,500.

As of March 31, 2016, NVR directly owned a total of five separate raw parcels of land with a carrying value of $163,826 that are expected to produce approximately 1,700 finished lots, of which approximately 130 lots were under contract with unrelated parties. The Company also has additional funding commitments of approximately $17,500 under a joint development agreement related to one parcel, a portion of which the Company expects will be offset by development credits of approximately $9,300.

None of the raw parcels had any indicators of impairment as of March 31, 2016. Based on market conditions, NVR may on a limited basis continue to directly acquire additional raw parcels to develop into finished lots.