10-Q

United States

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2016

OR

☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____ to ____

Commission File Number: 1-12378

NVR, Inc.

(Exact name of registrant as specified in its charter)

Virginia	54-1394360
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

11700 Plaza America Drive, Suite 500

Reston, Virginia 20190

(703) 956-4000

(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

(Not Applicable)

(Former name, former address, and former fiscal year if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒		Accelerated filer	☐
Non-accelerated filer	☐	(Do not check if smaller reporting company)	Smaller reporting company	☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of October 25, 2016 there were 3,790,395 total shares of common stock outstanding.

NVR, Inc. Form 10-Q Table of Contents
		Page
PART I	FINANCIAL INFORMATION	1
Item 1.	Condensed Consolidated Financial Statements	1
	Condensed Consolidated Balance Sheets (unaudited)	1
	Condensed Consolidated Statements of Income (unaudited)	2
	Condensed Consolidated Statements of Cash Flows (unaudited)	3
	Notes to Condensed Consolidated Financial Statements (unaudited)	4
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3.	Quantitative and Qualitative Disclosure About Market Risk	28
Item 4.	Controls and Procedures	28
PART II	OTHER INFORMATION	28
Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 6.	Exhibits	30
	SIGNATURE	31
	Exhibit Index	32

PART I. FINANCIAL INFORMATION

Item 1.Financial Statements

NVR, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

(unaudited)

	September 30, 2016			December 31, 2015
ASSETS
Homebuilding:
Cash and cash equivalents	$	249,728		$	397,522
Receivables		13,921			11,482
Inventory:
Lots and housing units, covered under sales agreements with customers		1,107,919			785,982
Unsold lots and housing units		134,626			147,832
Land under development		62,327			60,611
Building materials and other		11,858			12,101
		1,316,730			1,006,526
Assets related to consolidated variable interest entity		1,247			1,749
Contract land deposits, net		377,496			343,295
Property, plant and equipment, net		45,321			44,651
Reorganization value in excess of amounts allocable to identifiable assets, net		41,580			41,580
Goodwill and finite-lived intangible assets, net		2,945			3,982
Other assets		280,245			281,381
		2,329,213			2,132,168
Mortgage Banking:
Cash and cash equivalents		11,490			26,804
Mortgage loans held for sale, net		291,303			319,553
Property and equipment, net		5,085			5,313
Reorganization value in excess of amounts allocable to identifiable assets, net		7,347			7,347
Other assets		18,778			20,533
		334,003			379,550
Total assets	$	2,663,216		$	2,511,718
LIABILITIES AND SHAREHOLDERS' EQUITY
Homebuilding:
Accounts payable	$	281,530		$	227,437
Accrued expenses and other liabilities		309,939			304,922
Liabilities related to consolidated variable interest entity		877			1,091
Customer deposits		144,697			110,965
Senior notes		596,303			595,847
		1,333,346			1,240,262
Mortgage Banking:
Accounts payable and other liabilities		30,731			32,291
		30,731			32,291
Total liabilities		1,364,077			1,272,553
Commitments and contingencies
Shareholders' equity:
Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares issued as of   both September 30, 2016 and December 31, 2015		206			206
Additional paid-in capital		1,499,770			1,447,795
Deferred compensation trust – 108,635 and 108,614 shares of NVR, Inc. common stock as of   September 30, 2016 and December 31, 2015, respectively		(17,367	)		(17,333	)
Deferred compensation liability		17,367			17,333
Retained earnings		5,544,485			5,270,114
Less treasury stock at cost – 16,766,035 and 16,664,342 shares as of September 30, 2016 and December 31, 2015, respectively		(5,745,322	)		(5,478,950	)
Total shareholders' equity		1,299,139			1,239,165
Total liabilities and shareholders' equity	$	2,663,216		$	2,511,718

See notes to condensed consolidated financial statements.

1

NVR, Inc.

Condensed Consolidated Statements of Income

(in thousands, except per share data)

(unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Homebuilding:
Revenues	$	1,507,451		$	1,374,467		$	3,990,696		$	3,537,116
Other income		703			643			2,223			2,490
Cost of sales		(1,242,292	)		(1,111,672	)		(3,294,421	)		(2,880,194	)
Selling, general and administrative		(92,867	)		(88,664	)		(290,925	)		(279,207	)
Operating income		172,995			174,774			407,573			380,205
Interest expense		(5,338	)		(5,900	)		(14,734	)		(17,499	)
Homebuilding income		167,657			168,874			392,839			362,706
Mortgage Banking:
Mortgage banking fees		30,118			27,884			79,082			66,617
Interest income		2,000			1,972			5,111			4,353
Other income		473			363			1,140			711
General and administrative		(14,959	)		(13,916	)		(44,345	)		(37,888	)
Interest expense		(286	)		(181	)		(792	)		(456	)
Mortgage banking income		17,346			16,122			40,196			33,337
Income before taxes		185,003			184,996			433,035			396,043
Income tax expense		(67,611	)		(68,526	)		(158,664	)		(147,120	)
Net income	$	117,392		$	116,470		$	274,371		$	248,923
Basic earnings per share	$	30.43		$	28.75		$	70.70		$	61.34
Diluted earnings per share	$	28.46		$	27.11		$	66.24		$	58.32
Basic weighted average shares outstanding		3,858			4,050			3,881			4,058
Diluted weighted average shares outstanding		4,125			4,296			4,142			4,268

See notes to condensed consolidated financial statements.

2

NVR, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

	Nine Months Ended September 30,
	2016			2015
Cash flows from operating activities:
Net income	$	274,371		$	248,923
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		16,591			16,182
Excess income tax benefit from equity-based compensation		(10,949	)		(14,465	)
Equity-based compensation expense		32,459			39,874
Contract land deposit recoveries, net		(1,427	)		(9,925	)
Gain on sale of loans, net		(59,386	)		(48,243	)
Mortgage loans closed		(2,542,659	)		(2,163,472	)
Mortgage loans sold and principal payments on mortgage loans held for sale		2,633,539			2,153,721
Distribution of earnings from unconsolidated joint ventures		8,026			13,069
Net change in assets and liabilities:
Increase in inventory		(309,824	)		(289,754	)
Increase in contract land deposits		(32,774	)		(13,987	)
(Increase) decrease in receivables		(2,913	)		12
Increase in accounts payable and accrued expenses		59,736			78,935
Increase in customer deposits		33,732			25,317
Other, net		(7,034	)		(20,605	)
Net cash provided by operating activities		91,488			15,582
Cash flows from investing activities:
Investments in and advances to unconsolidated joint ventures		(653	)		(1,552	)
Distribution of capital from unconsolidated joint ventures		9,162			13,931
Purchase of property, plant and equipment		(16,513	)		(13,468	)
Proceeds from the sale of property, plant and equipment		701			476
Net cash used in investing activities		(7,303	)		(613	)
Cash flows from financing activities:
Purchase of treasury stock		(291,743	)		(263,446	)
Repayments under non-recourse debt related to consolidated   variable interest entity and note payable		—			(64	)
Distributions to partner in consolidated variable interest entity		(217	)		(300	)
Excess income tax benefit from equity-based compensation		10,949			14,465
Proceeds from the exercise of stock options		33,938			76,419
Net cash used in financing activities		(247,073	)		(172,926	)
Net decrease in cash and cash equivalents		(162,888	)		(157,957	)
Cash and cash equivalents, beginning of the period		425,316			545,419
Cash and cash equivalents, end of the period	$	262,428		$	387,462
Supplemental disclosures of cash flow information:
Interest paid during the period, net of interest capitalized	$	20,899		$	24,313
Income taxes paid during the period, net of refunds	$	148,117		$	123,841

See notes to condensed consolidated financial statements.

3

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars and shares in thousands)

(unaudited)

1. Basis of Presentation

The accompanying unaudited, condensed consolidated financial statements include the accounts of NVR, Inc. (“NVR” or the “Company”) and its subsidiaries and certain other entities in which the Company is deemed to be the primary beneficiary (see Notes 2 and 3 to the accompanying condensed consolidated financial statements).  Intercompany accounts and transactions have been eliminated in consolidation.  The statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.  Because the accompanying condensed consolidated financial statements do not include all of the information and footnotes required by GAAP, they should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.  In the opinion of management, all adjustments (consisting only of normal recurring accruals except as otherwise noted herein) considered necessary for a fair presentation have been included.  Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.  Actual results could differ from those estimates.

In 2016, the Company adopted Accounting Standards Update (“ASU”) 2015-03, Interest – Imputation of Interest, which requires that debt issuance costs be presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability.  The adoption of this standard resulted in the reclassification of the unamortized debt issuance costs related to the Company’s 3.95% Senior Notes due 2022 (the “Senior Notes”) from the homebuilding “Other assets” line item to the homebuilding “Senior notes” line item in the accompanying condensed consolidated balance sheets.  See Note 12 for further discussion of the Company’s Senior Notes and the related unamortized debt issuance costs.

For the three and nine months ended September 30, 2016 and 2015, comprehensive income equaled net income; therefore, a separate statement of comprehensive income is not included in the accompanying condensed consolidated financial statements.

2. Variable Interest Entities

Fixed Price Finished Lot Purchase Agreements (“Lot Purchase Agreements”)

NVR generally does not engage in the land development business.  Instead, the Company typically acquires finished building lots at market prices from various development entities under Lot Purchase Agreements.  The Lot Purchase Agreements require deposits that may be forfeited if NVR fails to perform under the Lot Purchase Agreements.  The deposits required under the Lot Purchase Agreements are in the form of cash or letters of credit in varying amounts, and typically range up to 10% of the aggregate purchase price of the finished lots.

NVR believes this lot acquisition strategy reduces the financial requirements and risks associated with direct land ownership and land development.  NVR may, at its option, choose for any reason and at any time not to perform under these Lot Purchase Agreements by delivering notice of its intent not to acquire the finished lots under contract.  NVR’s sole legal obligation and economic loss for failure to perform under these Lot Purchase Agreements is limited to the amount of the deposit pursuant to the liquidated damage provisions contained within the Lot Purchase Agreements.  In other words, if NVR does not perform under a Lot Purchase Agreement, NVR loses only its deposit.  None of the creditors of any of the development entities with which NVR enters Lot Purchase Agreements have recourse to the general credit of NVR.  NVR generally does not have any specific performance obligations to purchase a certain number or any of the lots, nor does NVR guarantee completion of the development by the developer or guarantee any of the developers’ financial or other liabilities.

NVR is not involved in the design or creation of the development entities from which the Company purchases lots under Lot Purchase Agreements.  The developer’s equity holders have the power to direct 100% of the operating activities of the development entity.  NVR has no voting rights in any of the development entities.  The sole purpose of the

4

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars and shares in thousands)

(unaudited)

development entity’s activities is to generate positive cash flow returns for the equity holders.  Further, NVR does not share in any of the profit or loss generated by the project’s development.  The profits and losses are passed directly to the developer’s equity holders.

The deposit placed by NVR pursuant to the Lot Purchase Agreement is deemed to be a variable interest in the respective development entities.  Those development entities are deemed to be variable interest entities (“VIE”).  Therefore, the development entities with which NVR enters into Lot Purchase Agreements, including the joint venture limited liability corporations discussed below, are evaluated for possible consolidation by NVR.  An enterprise must consolidate a VIE when that enterprise has a controlling financial interest in the VIE.  An enterprise is deemed to have a controlling financial interest if it has i) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and ii) the obligation to absorb losses of the VIE that could be significant to the VIE or the rights to receive benefits from the VIE that could be significant to the VIE.

NVR believes the activities that most significantly impact a development entity’s economic performance are the operating activities of the entity.  Unless and until a development entity completes finished building lots through the development process to be able to sell, the process of which the development entity’s equity investors bear the full risk, the entity does not earn any revenues.  The operating development activities are managed solely by the development entity’s equity investors.

The development entities with which NVR contracts to buy finished lots typically select the respective projects, obtain the necessary zoning approvals, obtain the financing required with no support or guarantees from NVR, select who will purchase the finished lots and at what price, and manage the completion of the infrastructure improvements, all for the purpose of generating a cash flow return to the development entity’s equity holders and all independent of NVR.  The Company possesses no more than limited protective legal rights through the Lot Purchase Agreement in the specific finished lots that it is purchasing, and NVR possesses no participative rights in the development entities.  Accordingly, NVR does not have the power to direct the activities of a developer that most significantly impact the developer’s economic performance.  For this reason, NVR has concluded that it is not the primary beneficiary of the development entities with which the Company enters into Lot Purchase Agreements, and therefore, NVR does not consolidate any of these VIEs.

As of September 30, 2016, NVR controlled approximately 72,300 lots under Lot Purchase Agreements with third parties through deposits in cash and letters of credit totaling approximately $399,700 and $2,000, respectively.  As noted above, NVR’s sole legal obligation and economic loss for failure to perform under these Lot Purchase Agreements is limited to the amount of the deposit pursuant to the liquidated damage provisions contained in the Lot Purchase Agreements and, in very limited circumstances, specific performance obligations.

In addition, NVR has certain properties under contract with land owners that are expected to yield approximately 10,900 lots, which are not included in the number of total lots controlled.  Some of these properties may require rezoning or other approvals to achieve the expected yield. These properties are controlled with deposits in cash and letters of credit totaling approximately $16,600 and $350, respectively, as of September 30, 2016, of which approximately $2,300 is refundable if NVR does not perform under the contract.  NVR generally expects to assign the raw land contracts to a land developer and simultaneously enter into a Lot Purchase Agreement with the assignee if the project is determined to be feasible.

NVR’s total risk of loss related to contract land deposits as of September 30, 2016 and December 31, 2015 was as follows:

	September 30, 2016			December 31, 2015
Contract land deposits	$	416,313		$	385,534
Loss reserve on contract land deposits		(38,817	)		(42,239	)
Contract land deposits, net		377,496			343,295
Contingent obligations in the form of letters of credit		2,310			3,302
Contingent specific performance obligations (1)		1,505			1,505
Total risk of loss	$	381,311		$	348,102

5

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars and shares in thousands)

(unaudited)

(1) As of both September 30, 2016 and December 31, 2015, the Company was committed to purchase 10 finished lots under specific performance obligations.

3. Joint Ventures

On a limited basis, NVR obtains finished lots using joint venture limited liability corporations (“JVs”). The JVs are typically structured such that NVR is a non-controlling member and is at risk only for the amount the Company has invested, or has committed to invest, in addition to any deposits placed under Lot Purchase Agreements with the joint venture. NVR is not a borrower, guarantor or obligor on any debt of the JVs, as applicable. The Company enters into Lot Purchase Agreements to purchase lots from these JVs, and as a result has a variable interest in these JVs.

At September 30, 2016, the Company had an aggregate investment totaling approximately $51,500 in six JVs that are expected to produce approximately 7,500 finished lots, of which approximately 4,200 lots were controlled by the Company and the remaining approximately 3,300 lots were either under contract with unrelated parties or not currently under contract. In addition, NVR had additional funding commitments totaling approximately $6,200 in the aggregate to three of the JVs at September 30, 2016. The Company has determined that it is not the primary beneficiary of five of the JVs because either NVR and the other JV partner share power or the other JV partner has the controlling financial interest. The aggregate investment in unconsolidated JVs was approximately $51,100 and $59,800 at September 30, 2016 and December 31, 2015, respectively, and is reported in the “Other assets” line item on the accompanying condensed consolidated balance sheets. For the remaining JV, NVR has concluded that it is the primary beneficiary because the Company has the controlling financial interest in the JV. The condensed balance sheets as of September 30, 2016 and December 31, 2015 of the consolidated JV were as follows:

	September 30, 2016		December 31, 2015
Assets:
Cash	$	1,210	$	990
Other assets		37		379
Land under development		—		380
Total assets	$	1,247	$	1,749
Liabilities and equity:
Accrued expenses	$	611	$	567
Equity		636		1,182
Total liabilities and equity	$	1,247	$	1,749

The Company recognizes income from the JVs as a reduction to the lot cost of the lots purchased from the respective JVs when the homes are settled and is based on the expected total profitability and the total number of lots expected to be produced by the respective JVs. Distributions received from the unconsolidated JVs are allocated between return of capital and distributions of earnings based on the ratio of capital contributed by NVR to the total expected returns for the respective JVs, and are classified within the accompanying condensed consolidated statements of cash flows as cash flows from investing activities and operating activities, respectively.

4. Land Under Development

On a limited basis, NVR directly acquires raw land parcels 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.

6

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars and shares in thousands)

(unaudited)

As of September 30, 2016, NVR directly owned a total of fourseparate raw land parcels with a carrying value of $62,327 that are expected to produce approximately 800 finished lots. The Company also has additional funding commitments of approximately $13,700 under a joint development agreement related to one parcel, a portion of which the Company expects will be offset by development credits of approximately $7,300.

None of the raw parcels had any indicators of impairment as of September 30, 2016. Based on market conditions, NVR may on a limited basis continue to directly acquire additional raw parcels to develop into finished lots.

In February 2016, the Company purchased a land parcel which included both land under development and finished lots for approximately $150,000.In June 2016, the Company sold that land parcel to a developer for an amount which approximated NVR’s net investment in the property as of the sale date. In conjunction with the sale, the Company also entered into Lot Purchase Agreements with the developer for the option to purchase a portion of the finished lots expected to be developed from the parcel. Prior to the sale of the parcel, the Company sold 56 finished lots for approximately $16,800, which were under contract with unrelated parties.

5. Capitalized Interest

The Company capitalizes interest costs to land under development during the active development of finished lots.  In addition, the Company capitalizes interest costs to its joint venture investments while the investments are considered qualified assets pursuant to Accounting Standards Codification 835-20, Interest. Capitalized interest is transferred to sold or unsold inventory as the development of finished lots is completed, then charged to cost of sales upon the Company’s settlement of homes and the respective lots.  Interest incurred in excess of the interest capitalizable based on the level of qualified assets is expensed in the period incurred. NVR’s interest costs incurred, capitalized, expensed and charged to cost of sales during the three and nine months ended September 30, 2016 and 2015 was as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Interest capitalized, beginning of period	$	4,576		$	4,332		$	4,434		$	4,072
Interest incurred		6,562			6,317			19,347			18,842
Interest charged to interest expense		(5,624	)		(6,081	)		(15,526	)		(17,955	)
Interest charged to cost of sales		(600	)		(288	)		(3,341	)		(679	)
Interest capitalized, end of period	$	4,914		$	4,280		$	4,914		$	4,280

6. Earnings per Share

The following weighted average shares and share equivalents were used to calculate basic and diluted earnings per share for the three and nine months ended September 30, 2016 and 2015:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Weighted average number of shares outstanding used to calculate basic EPS		3,858		4,050		3,881		4,058
Dilutive securities:
Stock options and restricted share units		267		246		261		210
Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS		4,125		4,296		4,142		4,268

The following stock options and restricted share units issued under equity incentive plans were outstanding during the three and nine months ended September 30, 2016 and 2015, but were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive.

7

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars and shares in thousands)

(unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Anti-dilutive securities		88		28		89		37

7. Excess Reorganization Value, Goodwill and Other Intangibles

Reorganization value in excess of identifiable assets (“excess reorganization value”) is an indefinite-lived intangible asset that was created upon NVR’s emergence from bankruptcy on September 30, 1993.  Based on the allocation of the reorganization value, the portion of the reorganization value which was not attributed to specific tangible or intangible assets has been reported as excess reorganization value, which is treated similarly to goodwill.  Excess reorganization value is not subject to amortization.  Rather, excess reorganization value is subject to an impairment assessment on an annual basis or more frequently if changes in events or circumstances indicate that impairment may have occurred.  Because excess reorganization value was based on the reorganization value of NVR’s entire enterprise upon emergence from bankruptcy, the impairment assessment is conducted on an enterprise basis based on the comparison of NVR’s total equity to the market value of NVR’s outstanding publicly-traded common stock.

As of September 30, 2016, goodwill and net finite-lived intangible assets totaled $441 and $2,504, respectively.  The remaining finite-lived intangible assets are amortized on a straight-line basis over a weighted average life of three years.  Accumulated amortization as of September 30, 2016 was $6,274.  Amortization expense related to the finite-lived intangible assets was $346 and $1,037 for both the three and nine months ended September 30, 2016 and 2015, respectively.

The Company completed the annual impairment assessment of the excess reorganization value and goodwill during the first quarter of 2016 and determined that there was no impairment.

8. Shareholders’ Equity

A summary of changes in shareholders’ equity is presented below:

	Common Stock		Additional Paid-In Capital			Retained Earnings		Treasury Stock			Deferred Compensation Trust			Deferred Compensation Liability		Total
Balance, December 31, 2015	$	206	$	1,447,795		$	5,270,114	$	(5,478,950	)	$	(17,333	)	$	17,333	$	1,239,165
Net income		—		—			274,371		—			—			—		274,371
Deferred compensation activity		—		—			—		—			(34	)		34		—
Purchase of common stock for treasury		—		—			—		(291,743	)		—			—		(291,743	)
Equity-based compensation		—		32,459			—		—			—			—		32,459
Excess tax benefit from equity benefit plan activity		—		10,949			—		—			—			—		10,949
Proceeds from stock options exercised		—		33,938			—		—			—			—		33,938
Treasury stock issued upon option exercise and restricted share vesting		—		(25,371	)		—		25,371			—			—		—
Balance, September 30, 2016	$	206	$	1,499,770		$	5,544,485	$	(5,745,322	)	$	(17,367	)	$	17,367	$	1,299,139

The Company repurchased 178 shares of its common stock during the nine months ended September 30, 2016. The Company settles stock option exercises and vesting of restricted share units by issuing shares of treasury stock.  Approximately 77 shares were issued from the treasury account during the nine months ended September 30, 2016 in settlement of stock option exercises and vesting of restricted share units.  Shares are relieved from the treasury account based on the weighted average cost basis of treasury shares acquired.

8

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars and shares in thousands)

(unaudited)

9. Product Warranties

The Company establishes warranty and product liability reserves (“warranty reserve”) to provide for estimated future expenses as a result of construction and product defects, product recalls and litigation incidental to NVR’s homebuilding business.  Liability estimates are determined based on management’s judgment, considering such factors as historical experience, the likely current cost of corrective action, manufacturers’ and subcontractors’ participation in sharing the cost of corrective action, consultations with third party experts such as engineers, and discussions with the Company’s general counsel and outside counsel retained to handle specific product liability cases.  The following table reflects the changes in the Company’s warranty reserve during the three and nine months ended September 30, 2016 and 2015:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Warranty reserve, beginning of period	$	87,953		$	85,874		$	87,407		$	94,060
Provision		11,622			12,674			33,331			32,899
Payments		(11,551	)		(12,617	)		(32,714	)		(41,028	)
Warranty reserve, end of period	$	88,024		$	85,931		$	88,024		$	85,931

10. Segment Disclosures

The following disclosure includes four homebuilding reportable segments that aggregate geographically the Company’s homebuilding operating segments, and the mortgage banking operations presented as a single reportable segment.  The homebuilding reportable segments are comprised of operating divisions in the following geographic areas:

Mid Atlantic:	Maryland, Virginia, West Virginia, Delaware and Washington, D.C.
North East:	New Jersey and Eastern Pennsylvania
Mid East:	New York, Ohio, Western Pennsylvania, Indiana and Illinois
South East:	North Carolina, South Carolina, Florida and Tennessee

Homebuilding profit before tax includes all revenues and income generated from the sale of homes, less the cost of homes sold, selling, general and administrative expenses and a corporate capital allocation charge.  The corporate capital allocation charge is eliminated in consolidation and is based on the segment’s average net assets employed.  The corporate capital allocation charged to the operating segment allows the Chief Operating Decision Maker (“CODM”) to determine whether the operating segment’s results are providing the desired rate of return after covering the Company’s cost of capital.  In addition, certain assets, including goodwill and intangible assets and consolidation adjustments as discussed further below, are not allocated to the operating segments as those assets are neither included in the operating segment’s corporate capital allocation charge, nor in the CODM’s evaluation of the operating segment’s performance.  The Company records charges on contract land deposits when it is determined that it is probable that recovery of the deposit is impaired.  For segment reporting purposes, impairments on contract land deposits are charged to the operating segment upon the determination to terminate a Lot Purchase Agreement with the developer, or to restructure a Lot Purchase Agreement resulting in the forfeiture of the deposit.  Mortgage banking profit before tax consists of revenues generated from mortgage financing, title insurance and closing services, less the costs of such services and general and administrative costs.  Mortgage banking operations are not charged a corporate capital allocation charge.

In addition to the corporate capital allocation and contract land deposit impairments discussed above, the other reconciling items between segment profit and consolidated profit before tax include unallocated corporate overhead (including all management incentive compensation), equity-based compensation expense, consolidation adjustments and external corporate interest expense.  NVR’s overhead functions, such as accounting, treasury and human resources, are centrally performed and the costs are not allocated to the Company’s operating segments.  Consolidation adjustments consist of such items necessary to convert the reportable segments’ results, which are predominantly maintained on a cash basis, to a full accrual basis for external financial statement presentation purposes, and are not allocated to the Company’s operating segments.  External corporate interest expense primarily consists of interest charges on the Company’s Senior

9

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars and shares in thousands)

(unaudited)

Notes and is not charged to the operating segments because the charges are included in the corporate capital allocation discussed above.

Following are tables presenting segment revenues, profit and assets, with reconciliations to the amounts reported for the consolidated enterprise, where applicable:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Revenues:
Homebuilding Mid Atlantic	$	873,490	$	792,532	$	2,279,207	$	2,094,820
Homebuilding North East		123,754		120,143		329,674		317,510
Homebuilding Mid East		327,387		299,157		877,921		705,670
Homebuilding South East		182,820		162,635		503,894		419,116
Mortgage Banking		30,118		27,884		79,082		66,617
Total consolidated revenues	$	1,537,569	$	1,402,351	$	4,069,778	$	3,603,733

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Profit before taxes:
Homebuilding Mid Atlantic	$	81,137		$	88,058		$	191,476		$	217,665
Homebuilding North East		8,711			10,745			18,354			29,359
Homebuilding Mid East		34,699			29,958			87,488			52,607
Homebuilding South East		16,548			17,372			45,159			38,812
Mortgage Banking		18,155			16,966			42,503			35,847
Total segment profit before taxes		159,250			163,099			384,980			374,290
Reconciling items:
Contract land deposit reserve adjustment (1)		785			4,705			3,421			11,511
Equity-based compensation expense		(11,081	)		(13,571	)		(32,459	)		(39,874	)
Corporate capital allocation (2)		50,032			45,690			140,606			124,033
Unallocated corporate overhead		(18,459	)		(18,055	)		(74,485	)		(67,803	)
Consolidation adjustments and other		9,798			9,147			25,660			11,477
Corporate interest expense		(5,322	)		(6,019	)		(14,688	)		(17,591	)
Reconciling items sub-total		25,753			21,897			48,055			21,753
Consolidated profit before taxes	$	185,003		$	184,996		$	433,035		$	396,043

	September 30, 2016			December 31, 2015
Assets:
Homebuilding Mid Atlantic	$	1,223,426		$	994,804
Homebuilding North East		145,191			133,106
Homebuilding Mid East		253,806			220,094
Homebuilding South East		229,682			175,572
Mortgage Banking		326,656			372,203
Total segment assets		2,178,761			1,895,779
Reconciling items:
Consolidated variable interest entity		1,247			1,749
Cash and cash equivalents		249,728			397,522
Deferred taxes		171,941			161,805
Intangible assets and goodwill		51,872			52,909
Contract land deposit reserve		(38,817	)		(42,239	)
Consolidation adjustments and other		48,484			44,193
Reconciling items sub-total		484,455			615,939
Consolidated assets	$	2,663,216		$	2,511,718

10

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars and shares in thousands)

(unaudited)

(1) This item represents changes to the contract land deposit impairment reserve, which are not allocated to the reportable segments.

(2) This item represents the elimination of the corporate capital allocation charge included in the respective homebuilding reportable segments.  The corporate capital allocation charge is based on the segment’s monthly average asset balance, and was as follows for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Corporate capital allocation charge:
Homebuilding Mid Atlantic	$	31,960	$	28,743	$	87,911	$	78,412
Homebuilding North East		4,572		4,451		13,972		11,566
Homebuilding Mid East		7,366		7,472		21,523		20,079
Homebuilding South East		6,134		5,024		17,200		13,976
Total	$	50,032	$	45,690	$	140,606	$	124,033

11. Fair Value

GAAP assigns a fair value hierarchy to the inputs used to measure fair value.  Level 1 inputs are quoted prices in active markets for identical assets and liabilities.  Level 2 inputs are inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly.  Level 3 inputs are unobservable inputs.

Financial Instruments

The estimated fair value of NVR’s Senior Notes as of September 30, 2016 was $633,000.  The estimated fair value is based on recent market prices of similar transactions, which is classified as Level 2 within the fair value hierarchy.  The carrying value of the Senior Notes was $596,303 at September 30, 2016.  Except as otherwise noted below, NVR believes that insignificant differences exist between the carrying value and the fair value of its financial instruments, which consist of cash equivalents, due to their short term nature.

Derivative Instruments and Mortgage Loans Held for Sale

In the normal course of business, NVR’s wholly-owned mortgage subsidiary, NVR Mortgage Finance, Inc. (“NVRM”), enters into contractual commitments to extend credit to NVR’s homebuyers with fixed expiration dates.  The commitments become effective when the borrowers "lock-in" a specified interest rate within time frames established by NVRM.  All mortgagors are evaluated for credit worthiness prior to the extension of the commitment.  Market risk arises if interest rates move adversely between the time of the "lock-in" of rates by the borrower and the sale date of the loan to a broker/dealer.  To mitigate the effect of the interest rate risk inherentin providing rate lock commitments to borrowers, NVRM enters into optional or mandatory delivery forward sale contracts to sell whole loans and mortgage-backed securities to broker/dealers.  The forward sales contracts lock in an interest rate and price for the sale of loans similar to the specific rate lock commitments.  NVRM does not engage in speculative or trading derivative activities.  Both the rate lock commitments to borrowers and the forward sale contracts to broker/dealers are undesignated derivatives and, accordingly, are marked to fair value through earnings.  At September 30, 2016, there were contractual commitments to extend credit to borrowers aggregating $553,600 and open forward delivery contracts aggregating $757,756, which hedge both the rate lock loan commitments and closed loans held for sale.

The fair value of NVRM’s rate lock commitments to borrowers and the related input levels include, as applicable:

i) the assumed gain/loss of the expected resultant loan sale (Level 2);

ii) the effects of interest rate movements between the date of the rate lock and the balance sheet date (Level 2); and

iii) the value of the servicing rights associated with the loan (Level 2).

11

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars and shares in thousands)

(unaudited)

The assumed gain/loss considers the excess servicing to be received or buydown fees to be paid upon securitization of the loan.  The excess servicing and buydown fees are calculated pursuant to contractual terms with investors.  To calculate the effects of interest rate movements, NVRM utilizes applicable published mortgage-backed security prices, and multiplies the price movement between the rate lock date and the balance sheet date by the notional loan commitment amount.  NVRM sells all of its loans on a servicing released basis, and receives a servicing released premium upon sale.  Thus, the value of the servicing rights, which averaged 95 basis points of the loan amount as of September 30, 2016, is included in the fair value measurement and is based upon contractual terms with investors and varies depending on the loan type.  NVRM assumes an approximate 13% fallout rate when measuring the fair value of rate lock commitments.  Fallout is defined as locked loan commitments for which NVRM does not close a mortgage loan and is based on historical experience.

The fair value of NVRM’s forward sales contracts to broker/dealers solely considers the market price movement of the same type of security between the trade date and the balance sheet date (Level 2).  The market price changes are multiplied by the notional amount of the forward sales contracts to measure the fair value.

Mortgage loans held for sale are carried at the lower of cost or fair value, net of deferred origination costs, until sold.  Fair value is measured using Level 2 inputs.  The fair value of loans held for sale of $291,303 included on the accompanying condensed consolidated balance sheet has been increased by $2,760 from the aggregate principal balance of $288,543.

The undesignated derivative instruments are included on the accompanying condensed consolidated balance sheet, as of September 30, 2016, as follows:

	Fair Value		Balance Sheet Location
Rate lock commitments:
Gross assets	$	6,256
Gross liabilities		1,379
Net rate lock commitments	$	4,877	NVRM - Other assets
Forward sales contracts:
Gross assets	$	174
Gross liabilities		1,304
Net forward sales contracts	$	1,130	NVRM - Accounts payable and other liabilities

The fair value measurement as of September 30, 2016 was as follows:

	Notional or Principal Amount		Assumed Gain/(Loss) From Loan Sale			Interest Rate Movement Effect		Servicing Rights Value		Security Price Change			Total Fair Value Measurement Gain/(Loss)
Rate lock commitments	$	553,600	$	(738	)	$	1,024	$	4,591	$	—		$	4,877
Forward sales contracts	$	757,756		—			—		—		(1,130	)		(1,130	)
Mortgages held for sale	$	288,543		(51	)		81		2,730		—			2,760
Total fair value measurement			$	(789	)	$	1,105	$	7,321	$	(1,130	)	$	6,507

For the three and nine months ended September 30, 2016, NVRM recorded a fair value adjustment to expense of $758 and $826, respectively.  For the three and nine months ended September 30, 2015, NVRM recorded a fair value adjustment to income of $3,429 and $5,040, respectively.  Unrealized gains/losses from the change in the fair value measurements are included in earnings as a component of mortgage banking fees in the accompanying condensed consolidated statements of income.  The fair value measurement will be impacted in the future by the change in the value of the servicing rights, interest rate movements, security price fluctuations, and the volume and product mix of NVRM’s closed loans and locked loan commitments.

12

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars and shares in thousands)

(unaudited)

12. Debt

As of September 30, 2016, the Company had Senior Notes outstanding with a principal balance of $600,000. The Senior Notes mature on September 15, 2022 and bear interest at 3.95%, payable semi-annually in arrears on March 15 and September 15. The Senior Notes were issued at a discount to yield 3.97% and have been reflected net of the unamortized discount in the accompanying condensed consolidated balance sheet. Additionally, following the Company’s adoption of ASU 2015-03 as of January 1, 2016, as further discussed in Note 1, the Senior Notes have been reflected net of unamortized debt issuance costs of $3,031 and $3,413 as of September 30, 2016 and December 31, 2015, respectively.

On July 15, 2016, NVR entered into an unsecured Credit Agreement (the “Credit Agreement”) with Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, Merrill Lynch, Pierce, Fenner & Smith Incorporated as Sole Lead Arranger and Sole Book Runner, and the other lenders party thereto, which provides for aggregate revolving loan commitments of $200,000 (the “Facility”).  Proceeds of the borrowings under the Facility will be used for working capital and general corporate purposes.  Under the Credit Agreement, the Company may request increases of up to $300,000 to the Facility in the form of revolving loan commitments or term loans to the extent that new or existing lenders agree to provide additional revolving loan or term loan commitments.  The Credit Agreement provides for a $100,000 sublimit for the issuance of letters of credit of which approximately $8,200 was outstanding at September 30, 2016, and a $25,000 sublimit for a swing line commitment.

The Credit Agreement contains various representations and affirmative and negative covenants that are generally customary for credit facilities of this type.  Such covenants include, among others, the following financial maintenance covenants: (i) minimum consolidated tangible net worth, (ii) minimum interest coverage ratio or minimum liquidity and (iii) a maximum leverage ratio. The negative covenants include, among others, certain limitations on liens, investments and fundamental changes. The Credit Agreement termination date is July 15, 2021. There was no debt outstanding under the Facility at September 30, 2016.

NVRM provides for its mortgage origination and other operating activities using cash generated from its operations, borrowings from its parent company, NVR, as well as a revolving mortgage repurchase agreement (the “Repurchase Agreement”), which is non-recourse to NVR.  The Repurchase Agreement provides for loan purchases up to $150,000, subject to certain sub-limits, and provides for an incremental commitment pursuant to which NVRM may from time to time request increases in the total commitment available under the Repurchase Agreement by up to $50,000 in the aggregate. Amounts outstanding under the Repurchase Agreement are collateralized by the Company’s mortgage loans held for sale. The Repurchase Agreement expires onJuly 26, 2017. At September 30, 2016, there were no borrowing base limitations reducing the amount available under the Repurchase Agreement. There was no debt outstanding under the Repurchase Agreement at September 30, 2016.

13. Commitments and Contingencies

In June 2010, the Company received a Request for Information from the United States Environmental Protection Agency (“EPA”) pursuant to Section 308 of the Clean Water Act. The request sought information about storm water discharge practices in connection with homebuilding projects completed or underway by the Company in New York and New Jersey. The Company cooperated with this request, and provided information to the EPA. The Company was subsequently informed by the United States Department of Justice (“DOJ”) that the EPA forwarded the information on the matter to the DOJ, and the DOJ requested that the Company meet with the government to discuss the status of the case. Meetings took place in January 2012, August 2012 and November 2014 with representatives from both the EPA and DOJ. The Company has continued discussions with the EPA and DOJ and is presently engaged in settlement discussions with them. Any settlement is expected to include injunctive relief and payment of a civil penalty. Although there can be no assurance that a settlement will be reached, the Company has recorded a liability associated with an estimated civil penalty amount on the accompanying condensed consolidated financial statements as of both September 30, 2016 and December 31, 2015.

The Company and its subsidiaries are also involved in various other litigation arising in the ordinary course of business. In the opinion of management, and based on advice of legal counsel, this litigation is not expected to have a

13

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars and shares in thousands)

(unaudited)

material adverse effect on the financial position, results of operations or cash flows of the Company. Legal costs incurred in connection with outstanding litigation are expensed as incurred.

14. Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers.  The standard will replace most existing revenue recognition guidance in GAAP when it becomes effective. In July 2015, the FASB delayed the standard’s effective date for one year.  The standard is effective for the Company as of January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. The Company does not believe that the adoption of this standard will have a material effect on its consolidated financial statements and related disclosures.

In August 2014, FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40):  Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The standard requires an entity’s management to evaluate at each annual and interim reporting period whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued and to provide related footnote disclosures. The standard is effective for the Company as of January 1, 2017. The Company does not believe that the adoption of this standard will have a material effect on its consolidated financial statements and related disclosures.

In February 2015, FASB issued ASU 2015-02, Consolidation (Topic 810) – Amendments to the Consolidation Analysis.  The standard changes the manner in which reporting entities evaluate consolidation requirements of certain legal entities.  The standard became effective for the Company on January 1, 2016.  The adoption of this standard did not have any effect on the Company’s consolidated financial statements and related disclosures.

In July 2015, FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory.  The standard simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost or net realizable value.  The amendments in the standard do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The standard is effective for the Company as of January 1, 2017.  The amendments in the standard are to be applied prospectively with early adoption permitted.  The Company does not believe that the adoption of this standard will have a material effect on its consolidated financial statements and related disclosures.

In February 2016, FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on-balance sheet with a liability equal to the present value of lease payments over the lease term and a right-of-use asset for the right to use the underlying asset over the lease term.  Lessees will recognize expenses on their income statements in a manner similar to current GAAP. The standard is effective for the Company as of January 1, 2019.  The Company believes that the adoption of this standard will have a material effect on both assets and liabilities presented on the balance sheet, and is further evaluating the impact of its adoption.

In March 2016, FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718):  Improvements to Employee Share-Based Payment Accounting.  The standard simplifies several aspects of share-based payment accounting, including the recognition of income tax effects, statutory tax withholding requirements and accounting for forfeitures.  The standard is effective for the Company as of January 1, 2017. The Company believes that the standard will likely have a material effect on net income and earnings per share presented on its consolidated financial statements, and is further evaluating the impact of its adoption.

In June 2016, FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which significantly changes the way impairment of financial assets is recognized.  The standard will require immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, which will generally result in earlier recognition of allowances for credit losses on loans and other financial instruments.  The standard’s provisions will be applied as a cumulative-effect adjustment to beginning retained earnings as of the effective date. The standard is effective for the Company as of January 1, 2020.  Early adoption is permitted for annual and interim periods beginning

14

NVR, Inc.

Notes to Condensed Consolidated Financial Statements

(dollars and shares in thousands)

(unaudited)

January 1, 2019.  The Company is currently evaluating the effect that the standard will have on its consolidated financial statements and related disclosures.

In August 2016, FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. The objective of the standard is to address the diversity in practice of how certain cash receipts and payments are presented on the statement of cash flows. The standard requires that the guidance be applied retrospectively in the first interim and annual periods in which an entity adopts the guidance. The standard is effective for the Company as of January 1, 2018, and early adoption is permitted. The Company is currently evaluating the effect that the standard will have on its consolidated statements of cash flows and related disclosures.

15

Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations

(dollars in thousands)

Forward-Looking Statements

Some of the statements in this Quarterly Report on Form 10-Q, as well as statements made by us in periodic press releases or other public communications, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as “believes,” “expects,” “may,” “will,” “should,” or “anticipates” or the negative thereof or other comparable terminology.  All statements other than of historical facts are forward-looking statements.  Forward-looking statements contained in this document may include those regarding market trends, NVR’s financial position, business strategy, the outcome of pending litigation, investigations or similar contingencies, projected plans and objectives of management for future operations.  Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of NVR to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements.  Such risk factors include, but are not limited to the following: general economic and business conditions (on both a national and regional level); interest rate changes; access to suitable financing by NVR and NVR’s customers; increased regulation in the mortgage banking industry; the ability of our mortgage banking subsidiary to sell loans it originates into the secondary market; competition; the availability and cost of land and other raw materials used by NVR in its homebuilding operations; shortages of labor; weather related slow-downs; building moratoriums; governmental regulation; fluctuation and volatility of stock and other financial markets; mortgage financing availability; and other factors over which NVR has little or no control.  NVR undertakes no obligation to update such forward-looking statements except as required by law.  For additional information regarding risk factors, see Part II, Item 1A of this Quarterly Report on Form 10-Q and Part I, Item 1A of NVR’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015.

Unless the context otherwise requires, references to “NVR,” “we,” “us,” or “our” include NVR and its consolidated subsidiaries.

Results of Operations for the Three and Nine Months Ended September 30, 2016 and 2015

Overview

Business

Our primary business is the construction and sale of single-family detached homes, townhomes and condominium buildings, all of which are primarily constructed on a pre-sold basis.  To fully serve customers of our homebuilding operations, we also operate a mortgage banking and title services business.  We primarily conduct our operations in mature markets. Additionally, we generally grow our business through market share gains in our existing markets and by expanding into markets contiguous to our current active markets.  Our four homebuilding reportable segments consist of the following regions:

Mid Atlantic:	Maryland, Virginia, West Virginia, Delaware and Washington, D.C.
North East:	New Jersey and Eastern Pennsylvania
Mid East:	New York, Ohio, Western Pennsylvania, Indiana and Illinois
South East:	North Carolina, South Carolina, Florida and Tennessee

Our lot acquisition strategy is predicated upon avoiding the financial requirements and risks associated with direct land ownership and development.  We generally do not engage in land development (see discussion below of our land development activities). Instead, we typically acquire finished lots at market prices from various third party land developers pursuant to fixed price finished lot purchase agreements (“Lot Purchase Agreements”).  These Lot Purchase Agreements require deposits, typically ranging up to 10% of the aggregate purchase price of the finished lots, in the form of cash or letters of credit that may be forfeited if we fail to perform under the Lot Purchase Agreement.  This strategy has allowed us to maximize inventory turnover, which we believe enables us to minimize market risk and to operate with less capital, thereby enhancing rates of return on equity and total capital.

16

In addition to constructing homes primarily on a pre-sold basis and utilizing what we believe is a conservative lot acquisition strategy, we focus on obtaining and maintaining a leading market position in each market we serve.  This strategy allows us to gain valuable efficiencies and competitive advantages in our markets, which we believe contributes to minimizing the adverse effects of regional economic cycles and provides growth opportunities within these markets.  Our continued success is contingent upon our ability to control an adequate supply of finished lots on which to build.

In certain specific strategic circumstances we deviate from our historical lot acquisition strategy and engage in joint venture arrangements with land developers or directly acquire raw ground already zoned for its intended use for development.  Once we acquire control of raw ground, we determine whether to sell the raw parcel to a developer and enter into a Lot Purchase Agreement with the developer to purchase the finished lots or to hire a developer to develop the land on our behalf.  While joint venture arrangements and direct land development activity are not our preferred method of acquiring finished building lots, we may enter into additional transactions in the future on a limited basis where there exists a compelling strategic or prudent financial reason to do so.  We expect, however, to continue to acquire substantially all our finished lot inventory using Lot Purchase Agreements with forfeitable deposits.

As of September 30, 2016, we controlled lots as described below.

Lot Purchase Agreements

We controlled approximately 72,300 lots under Lot Purchase Agreements with third parties through deposits in cash and letters of credit totaling approximately $399,700 and $2,000, respectively. Included in the number of controlled lots are approximately 5,600 lots for which we have recorded a contract land deposit impairment reserve of approximately $38,800 as of September 30, 2016.

Joint Venture Limited Liability Corporations (“JVs”)

We had an aggregate investment totaling approximately $51,500 in six JVs, expected to produce approximately 7,500 lots. Of the lots to be produced by the JVs, approximately 4,200 lots were controlled by us and approximately 3,300 were either under contract with unrelated parties or currently not under contract.

Land Under Development

We directly owned four separate raw land parcels, zoned for their intended use, with a current cost basis, including development costs, of approximately $62,300 that we intend to develop into approximately 800 finished lots.  We had additional funding commitments of approximately $13,700 under a joint development agreement related to one parcel, a portion of which we expect will be offset by development credits of approximately $7,300.

See Notes 2, 3 and 4 to the condensed consolidated financial statements included herein for additional information regarding Lot Purchase Agreements, JVs and land under development, respectively.

Raw Land Purchase Agreements

In addition to the lots we currently control as discussed above, we have certain properties under contract with land owners that are expected to yield approximately 10,900 lots.  Some of these properties may require rezoning or other approvals to achieve the expected yield.  These properties are controlled with deposits in cash and letters of credit totaling approximately $16,600 and $350, respectively, as of September 30, 2016, of which approximately $2,300 is refundable if we do not perform under the contract.  We generally expect to assign the raw land contracts to a land developer and simultaneously enter into a Lot Purchase Agreement with the assignee if the project is determined to be feasible.

Current Business Environment and Key Financial Results

The first nine months of 2016 continued the trend experienced in 2015 of steady new home demand.  However, new home prices continued to be constrained by an increased number of new home communities in many markets.  The housing market also continues to face challenges from tight mortgage underwriting standards.

Our consolidated revenues for the third quarter of 2016 totaled $1,537,600, a 10% increase from the third quarter of 2015.  Net income for the third quarter ended September 30, 2016 was $117,400, or $28.46 per diluted share, increases of 1% and 5% when compared to net income and diluted earnings per share in the third quarter of 2015, respectively.Our homebuilding gross profit margin percentage decreased to 17.6% in the third quarter of 2016 from 19.1% in the third quarter of 2015. New orders, net of cancellations (“New Orders”) increased 7% in the third quarter of 2016 compared to

17

the third quarter of 2015, and the average sales price for New Orders in the third quarter of 2016 of $392.8increased 4% compared to the third quarter of 2015.

We believe that a continuation of the housing market recovery is dependent upon a sustained overall economic recovery, driven by continued improvements in job and wage growth and household formation.  We expect to continue to face gross margin pressure due to higher land and construction costs, as well as increased competition associated with an increase in the number of new home communities in our markets.  We believe that we are well positioned to take advantage of opportunities that may arise from future economic and homebuilding market volatility due to the strength of our balance sheet.

Homebuilding Operations

The following table summarizes the results of operations and other data for the consolidated homebuilding operations:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Financial Data:
Revenues	$	1,507,451		$	1,374,467		$	3,990,696		$	3,537,116
Cost of sales	$	1,242,292		$	1,111,672		$	3,294,421		$	2,880,194
Gross profit margin percentage		17.6	%		19.1	%		17.4	%		18.6	%
Selling, general and administrative expenses	$	92,867		$	88,664		$	290,925		$	279,207
Operating Data:
Settlements (units)		3,922			3,607			10,509			9,316
Average settlement price	$	384.1		$	380.4		$	378.0		$	379.2
New orders (units)		3,477			3,258			11,938			10,980
Average new order price	$	392.8		$	378.9		$	383.6		$	377.4
Backlog (units)								7,658			7,139
Average backlog price							$	389.4		$	380.6
New order cancellation rate		17.7	%		16.7	%		15.1	%		14.1	%

Consolidated Homebuilding - Three Months Ended September 30, 2016 and 2015

Homebuilding revenues increased 10% for the third quarter of 2016 compared to the third quarter of 2015, as a result of a 9% increase in the number of units settled and a 1% increase in the average settlement price quarter over quarter.  The increase in the number of units settled is primarily attributable to an 8% higher backlog unit balance entering the third quarter of 2016 compared to backlog entering the third quarter of 2015.

Gross profit margin percentage in the third quarter of 2016 decreased 153 basis points to 17.6% compared to the third quarter of 2015 due to higher construction and lot costs.

The number of New Orders and average sales price of New Orders increased 7% and 4%, respectively, in the third quarter of 2016 compared to the third quarter of 2015.  New Orders increased in each of our market segments due to more favorable market conditions in the third quarter of 2016 compared to the third quarter of 2015.  Additionally, New Orders were favorably impacted by a 3% increase in the average number of active communities quarter over quarter. The increase in the average sales price of New Orders was driven by a shift in New Orders to higher priced communities quarter over quarter.

Selling, general and administrative (“SG&A”) expenses in the third quarter of 2016 increased 5% compared to the third quarter of 2015 but as a percentage of revenue decreased to 6.2% in 2016 from 6.5% in 2015.  SG&A expenses were higher due primarily to increased personnel costs attributable to higher headcount quarter over quarter.

Consolidated Homebuilding - Nine Months Ended September 30, 2016 and 2015

Homebuilding revenues increased 13% for the nine months ended September 30, 2016 compared to the nine months ended September 30, 2015, as a result of a 13% increase in the number of units settled period over period.  The increase in the number of units settled is primarily attributable to a 14% higher backlog unit balance entering 2016 compared to backlog entering 2015.

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Gross profit margin percentage in the first nine months of 2016 decreased 112 basis points to 17.4% compared to 18.6% in 2015,due to higher construction and selling related costs during the first nine months of 2016 compared to the same period in 2015.

The number of New Orders and the average sales price of New Orders increased 9% and 2%, respectively, in the first nine months of 2016 when compared to the first nine months of 2015.  New Orders and the average sales price of New Orders increased in each of our market segments due to more favorable market conditions in the first nine months of 2016 compared to the first nine months of 2015. Additionally, New Orders were favorably impacted by a 2% increase in the average number of active communities period over period.

SG&A expenses in the first nine months of 2016 increased 4% compared to the first nine months of 2015 but as a percentage of revenue decreased to 7.3% in 2016 from 7.9% in 2015.  SG&A expenses were higher due to increased personnel costs attributable to higher headcount, and increased marketing costs attributable to the increase in the number of active communities period over period.

Backlog units and dollars were 7,658 units and $2,981,894, respectively, as of September 30, 2016 compared to 7,139 units and $2,716,947, respectively, as of September 30, 2015.  The 7% increase in backlog units was primarily attributable to the aforementioned 9% increase in New Orders in 2016. The 10% increase in backlog dollars was favorably impacted by the increase in backlog units and a 2% increase in the average sales price of New Orders for the six month period ended September 30, 2016 compared to the same period in 2015.

Backlog, which represents homes sold but not yet settled with the customer, may be impacted by customer cancellations for various reasons that are beyond our control, such as failure to obtain mortgage financing, inability to sell an existing home, job loss, or a variety of other reasons.  In any period, a portion of the cancellations that we experience are related to new sales that occurred during the same period, and a portion are related to sales that occurred in prior periods and therefore appeared in the opening backlog for the current period.  Expressed as the total of all cancellations during the period as a percentage of gross sales during the period, our cancellation rate was approximately 15.1% and 14.1% in the first nine months of 2016 and 2015, respectively.  During the most recent four quarters, approximately 6% of a reporting quarter’s opening backlog cancelled during the fiscal quarter.  We can provide no assurance that our historical cancellation rates are indicative of the actual cancellation rate that may occur during the remainder of 2016 or future years.

The backlog turnover rate is impacted by various factors, including, but not limited to, changes in New Order activity, internal production capacity, external subcontractor capacity and other external factors over which we do not exercise control.

Reportable Segments

Homebuilding profit before tax includes all revenues and income generated from the sale of homes, less the cost of homes sold, SG&A expenses, and a corporate capital allocation charge determined at the corporate headquarters.  The corporate capital allocation charge eliminates in consolidation and is based on the segment’s average net assets employed.  The corporate capital allocation charged to the operating segment allows the Chief Operating Decision Maker to determine whether the operating segment’s results are providing the desired rate of return after covering our cost of capital. We record charges on contract land deposits when we determine that it is probable that recovery of the deposit is impaired.  For segment reporting purposes, impairments on contract land deposits are generally charged to the operating segment upon the determination to terminate a Lot Purchase Agreement with the developer or to restructure a Lot Purchase Agreement resulting in the forfeiture of the deposit.  We evaluate our entire net contract land deposit portfolio for impairment each quarter.  For additional information regarding our contract land deposit impairment analysis, see the Critical Accounting Policies section within this Management Discussion and Analysis.  For presentation purposes below, the contract land deposit reserve at September 30, 2016 and 2015 has been allocated to the respective year’s reportable segments to show contract land deposits on a net basis.  The net contract land deposit balances below also include approximately $2,000 and $2,600 at September 30, 2016 and 2015, respectively, of letters of credit issued as deposits in lieu of cash. The following tables summarize certain homebuilding operating activity by reportable segment for the three and nine months ended September 30, 2016 and 2015:

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Selected Segment Financial Data:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Revenues:
Mid Atlantic	$	873,490	$	792,532	$	2,279,207	$	2,094,820
North East		123,754		120,143		329,674		317,510
Mid East		327,387		299,157		877,921		705,670
South East		182,820		162,635		503,894		419,116

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Gross profit margin:
Mid Atlantic	$	148,539	$	149,582	$	383,353	$	393,406
North East		20,174		21,556		53,051		58,724
Mid East		58,781		53,666		157,843		120,594
South East		33,769		31,565		93,612		79,974

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Segment profit:
Mid Atlantic	$	81,137	$	88,058	$	191,476	$	217,665
North East		8,711		10,745		18,354		29,359
Mid East		34,699		29,958		87,488		52,607
South East		16,548		17,372		45,159		38,812

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Gross profit margin percentage:
Mid Atlantic		17.0	%		18.9	%		16.8	%		18.8	%
North East		16.3	%		17.9	%		16.1	%		18.5	%
Mid East		18.0	%		17.9	%		18.0	%		17.1	%
South East		18.5	%		19.4	%		18.6	%		19.1	%

Operating Activity:

	Three Months Ended September 30,								Nine Months Ended September 30,
	2016				2015				2016				2015
	Units		Average Price		Units		Average Price		Units		Average Price		Units		Average Price
Settlements:
Mid Atlantic		1,984	$	440.2		1,795	$	440.3		5,201	$	434.9		4,770	$	438.4
North East		330	$	375.0		337	$	356.5		896	$	367.9		899	$	353.1
Mid East		1,013	$	322.5		915	$	326.8		2,708	$	323.9		2,171	$	324.9
South East		595	$	307.3		560	$	290.3		1,704	$	295.7		1,476	$	283.8
Total		3,922	$	384.1		3,607	$	380.4		10,509	$	378.0		9,316	$	379.2

	Three Months Ended September 30,								Nine Months Ended September 30,
	2016				2015				2016				2015
	Units		Average Price		Units		Average Price		Units		Average Price		Units		Average Price
New orders, net of cancellations:
Mid Atlantic		1,817	$	444.6		1,662	$	436.2		6,088	$	441.0		5,520	$	439.2
North East		305	$	387.9		304	$	362.1		960	$	377.6		936	$	360.3
Mid East		769	$	341.2		730	$	324.0		2,829	$	326.0		2,686	$	320.2
South East		586	$	302.3		562	$	290.1		2,061	$	296.2		1,838	$	284.3
Total		3,477	$	392.8		3,258	$	378.9		11,938	$	383.6		10,980	$	377.4

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	As of September 30,
	2016				2015
	Units		Average Price		Units		Average Price
Backlog:
Mid Atlantic		4,024	$	444.3		3,696	$	436.3
North East		604	$	389.3		625	$	360.1
Mid East		1,619	$	334.7		1,665	$	327.8
South East		1,411	$	295.7		1,153	$	289.3
Total		7,658	$	389.4		7,139	$	380.6

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
New order cancellation rate:
Mid Atlantic		17.1	%		17.9	%		15.1	%		14.5	%
North East		16.0	%		10.9	%		16.1	%		13.7	%
Mid East		17.5	%		17.3	%		14.5	%		13.4	%
South East		20.6	%		15.2	%		15.6	%		14.2	%

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Average active communities:
Mid Atlantic		241		232		237		235
North East		45		38		42		39
Mid East		124		127		129		129
South East		74		72		74		70
Total		484		469		482		473

Homebuilding Inventory:

	September 30, 2016		December 31, 2015
Sold inventory:
Mid Atlantic	$	698,346	$	485,481
North East		89,613		72,481
Mid East		175,524		140,745
South East		133,904		90,794
Total (1)	$	1,097,387	$	789,501

	September 30, 2016		December 31, 2015
Unsold lots and housing units inventory:
Mid Atlantic	$	106,455	$	105,720
North East		11,086		19,674
Mid East		6,494		9,857
South East		8,929		11,726
Total (1)	$	132,964	$	146,977

(1) The reconciling items between segment inventory and consolidated inventory include certain consolidation adjustments necessary to convert the reportable segments’ results, which are predominantly maintained on a cash basis, to a full accrual basis for external financial statement presentation purposes and are not allocated to our operating segments.

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	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Sold and unsold inventory impairments:
Mid Atlantic	$	622	$	280	$	727	$	365
North East		39		—		39		62
Mid East		—		160		—		362
South East		99		—		252		—
Total	$	760	$	440	$	1,018	$	789

Lots Controlled and Land Deposits:

	September 30, 2016		December 31, 2015
Total lots controlled:
Mid Atlantic		35,800		35,200
North East		5,950		6,100
Mid East		18,600		18,500
South East		16,950		14,700
Total		77,300		74,500

	September 30, 2016		December 31, 2015
Lots included in impairment reserve:
Mid Atlantic		2,650		2,800
North East		1,100		500
Mid East		1,350		2,400
South East		500		400
Total		5,600		6,100

	September 30, 2016		December 31, 2015
Contract land deposits, net:
Mid Atlantic	$	244,632	$	223,147
North East		27,954		29,805
Mid East		43,807		39,996
South East		63,063		53,299
Total	$	379,456	$	346,247

	Three Months Ended September 30,					Nine Months Ended September 30,
	2016		2015			2016		2015
Contract land deposit impairments (recoveries), net:
Mid Atlantic	$	94	$	256		$	1,054	$	1,311
North East		—		—			—		9
Mid East		137		276			188		297
South East		563		(5	)		752		-
Total	$	794	$	527		$	1,994	$	1,617

Mid Atlantic

Three Months Ended September 30, 2016 and 2015

The Mid Atlantic segment had an approximate $6,900, or 8%, decrease in segment profit in the third quarter of 2016 compared to the third quarter of 2015 despite an increase in segment revenues of approximately $81,000, or 10% quarter over quarter.  Segment revenues were higher due to an 11% increase in the number of units settled while the average settlement price was flat quarter over quarter. The increase in the number of units settled was favorably impacted by a 9% higher backlog unit balance entering the third quarter of 2016 compared to the third quarter of 2015. The Mid Atlantic segment’s gross profit margin percentage decreased to 17.0% in the third quarter of 2016 from 18.9% in the third quarter

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of 2015.  Gross profit margin and segment profit were negatively impacted by higher construction and lot costs quarter over quarter.

Segment New Orders and the average sales price of New Orders increased 9% and 2%, respectively in the third quarter of 2016 compared to the third quarter of 2015. New Orders were favorably impacted by a 4% increase in the average number of active communities quarter over quarter as well as more favorable market conditions in the third quarter of 2016 compared to the third quarter of 2015, which led to a higher absorption rate quarter over quarter.  

Nine Months Ended September 30, 2016 and 2015

The Mid Atlantic segment had an approximate $26,200, or 12%, decrease in segment profit in the first nine months of 2016 compared to the first nine months of 2015 despite an increase in segment revenues of approximately $184,400, or 9% period over period.  Segment revenues increased due primarily to a 9% increase in the number of units settled.  The increase in the number of units settled was favorably impacted by a 6% higher backlog unit balance entering 2016 compared to the backlog entering 2015, coupled with a higher backlog turnover rate period over period.  The Mid Atlantic segment’s gross profit margin percentage decreased to 16.8% in the first nine months of 2016 from 18.8% in the first nine months of 2015, due to a 1% decrease in the average settlement price period over period and higher construction and selling related costs.

Segment New Orders increased 10% while the average sales price of New Orders was flat in the first nine months of 2016 compared to the same period in 2015. New Orders improved due to favorable market conditions in the first nine months of 2016 compared to the same period in 2015, which led to a higher absorption rate period over period.

North East

Three Months Ended September 30, 2016 and 2015

The North East segment had an approximate $2,000, or 19%, decrease in segment profit in the third quarter of 2016 compared to the third quarter of 2015, despite an increase in segment revenues of approximately $3,600, or 3%, quarter over quarter.  Segment revenues increased due primarily to a 5% increase in the average settlement price quarter over quarter offset partially by a 2% decrease in the number of units settled. The increase in the average settlement price was attributable to a 7% higher average price of homes in backlog entering the third quarter of 2016 compared to the same period in 2015. The decrease in the number of units settled is attributable to a 4% lower backlog unit balance entering the third quarter of 2016 compared to the same period in 2015. The North East segment’s gross profit margin percentage decreased to 16.3% in the third quarter of 2016 from 17.9% in the third quarter of 2015. Gross profit margin and segment profit were negatively impacted by higher construction and lot costs in the third quarter of 2016 compared to the third quarter of 2015.

Segment New Orders were flat in the third quarter of 2016 compared to the same period in 2015 and the average sales price of New Orders increased 7% quarter over quarter. The increase in the average sales price of New Orders was driven by a shift in New Orders to higher priced communities in the third quarter of 2016 compared to the third quarter of 2015.

Nine Months Ended September 30, 2016 and 2015

The North East segment had an approximate $11,000, or 37%, decrease in segment profit in the first nine months of 2016 compared to the first nine months of 2015, despite an increase in segment revenues of approximately $12,200, or 4%, period over period. The increase in segment revenues was due primarily to a 4% increase in the average settlement price year over year. The North East segment’s gross profit margin percentage decreased to 16.1% in the first nine months of 2016 from 18.5% in the first nine months of 2015. Gross profit margin and segment profit were negatively impacted by higher construction and selling related costs in the first nine months of 2016 compared to the same period in 2015.

Segment New Orders and the average sales price of New Orders increased 3% and 5%, respectively, in the first nine months of 2016 compared to the same period in 2015. New Orders were favorably impacted by an 8% increase in the average number of active communities period over period. The increase in the average sales price of New Orders was driven by a shift in New Orders to higher priced markets in 2016 compared to the same period in 2015.

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Mid East

Three Months Ended September 30, 2016 and 2015

The Mid East segment had an approximate $4,700, or 16%, increase in segment profit in the third quarter of 2016 compared to the third quarter of 2015.  The increase in segment profit was driven by an increase of approximately $28,200, or 9%, in revenues quarter over quarter.  The increase in revenues was due to an 11% increase in the number of units settled.  The increase in settlements was attributable to a higher backlog turnover rate quarter over quarter. The segment’s gross profit margin percentage of 18.0% was flat compared to the same period in 2015.  

Segment New Orders and the average sales price of New Orders each increased 5% in the third quarter of 2016 compared to the third quarter of 2015.  New Orders improved despite a 2% decrease in the average number of active communities quarter over quarter due to favorable market conditions in the third quarter of 2016 compared to the third quarter of 2015, which led to a higher absorption rate quarter over quarter. The increase in the average sales price of New Orders is attributable to a shift in New Orders to higher priced markets as well as a shift to higher priced communities in certain markets.

Nine Months Ended September 30, 2016 and 2015

The Mid East segment had an approximate $34,900, or 66%, increase in segment profit in the first nine months of 2016 compared to the first nine months of 2015.  The increase in segment profit was driven by an increase of approximately $172,300, or 24%, in revenues period over period, due to a 25% increase in the number of units settled in the first nine months of 2016 compared to the same period in 2015. The increase in the number of units settled is attributable to a 30% higher backlog unit balance entering 2016 compared to backlog entering 2015. The segment’s gross profit margin percentage increased to 18.0% in the first nine months of 2016 from 17.1% in the same period in 2015, due primarily to the increased settlement activity, which allowed us to better leverage certain operating costs in the current year, offset partially by higher selling related costs period over period.

Segment New Orders and the average sales price of New Orders increased 5% and 2%, respectively in the first nine months of 2016 compared to the same period in 2015.  New Orders were favorably impacted by favorable market conditions in the first nine months of 2016 compared to the same period in 2015, which led to a higher absorption rate period over period.

South East

Three Months Ended September 30, 2016 and 2015

The South East segment had an approximate $800, or 5%, decrease in segment profit in the third quarter of 2016 compared to the third quarter of 2015, despite an increase of approximately $20,200, or 12%, in revenues quarter over quarter.  The increase in revenues was due to 6% increases in both the number of units settled and the average settlement price quarter over quarter.  The increase in settlements was attributable to a 23% higher backlog unit balance entering the third quarter of 2016 compared to backlog entering the third quarter of 2015, offset partially by a lower backlog turnover rate quarter over quarter.  The average settlement price was favorably impacted by a 3% higher average price of homes in backlog entering the third quarter of 2016 compared to the third quarter of 2015. The South East segment’s gross profit margin decreased to 18.5% in the third quarter of 2016 from 19.4% in the third quarter of 2015 due to higher construction and selling related costs quarter over quarter.  

Segment New Orders and the average sales price of New Orders each increased 4% in the third quarter of 2016 compared to the third quarter of 2015.  New Orders were favorably impacted by a 3% increase in the average number of active communities in the third quarter of 2016 compared to the third quarter of 2015 and by favorable market conditions in the third quarter of 2016 which led to a higher absorption rate quarter over quarter.  The average sales price of New Orders was favorably impacted by a shift in New Orders to higher priced markets.

Nine Months Ended September 30, 2016 and 2015

The South East segment had an approximate $6,300, or 16%, increase in segment profit in the first nine months of 2016 compared to the first nine months of 2015.  The increase in segment profit was primarily driven by an increase of approximately $84,800, or 20%, in revenues due to a 15% increase in the number of units settled and a 4% increase in the average settlement price period over period. The increase in units settled was attributable to a 33% higher backlog unit

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balance entering 2016 compared to backlog entering 2015, offset partially by a lower backlog turnover rate during the first nine months of 2016 compared to the same period in 2015.  The South East segment’s gross profit margin decreased to 18.6% in the first nine months of 2016 from 19.1% in the first nine months of 2015 due to higher lot and selling related costsperiod over period.

Segment New Orders and the average sales price of New Orders increased 12% and 4%, respectively, in the first nine months of 2016 compared to first nine months of 2015.  New Orders were favorably impacted by a 6% increase in the average number of active communities in the first nine months of 2016 compared to the same period in 2015 and by more favorable market conditions in 2016, which led to a higher absorption rate period over period.  The average sales price of New Orders was favorably impacted by a shift in New Orders to higher priced markets.

Homebuilding Segment Reconciliations to Consolidated Homebuilding Operations

In addition to the corporate capital allocation and contract land deposit impairments discussed above, the other reconciling items between homebuilding segment profit and homebuilding consolidated profit before tax include unallocated corporate overhead (which includes all management incentive compensation), equity-based compensation expense, consolidation adjustments and external corporate interest expense. Our overhead functions, such as accounting, treasury and human resources, are centrally performed and the costs are not allocated to our operating segments. Consolidation adjustments consist of such items to convert the reportable segments’ results, which are predominantly maintained on a cash basis, to a full accrual basis for external financial statement presentation purposes, and are not allocated to our operating segments. External corporate interest expense primarily consists of interest charges on our 3.95% Senior Notes due 2022, and is not charged to the operating segments because the charges are included in the corporate capital allocation discussed above.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Homebuilding consolidated gross profit:
Mid Atlantic	$	148,539	$	149,582	$	383,353	$	393,406
North East		20,174		21,556		53,051		58,724
Mid East		58,781		53,666		157,843		120,594
South East		33,769		31,565		93,612		79,974
Consolidation adjustments and other		3,896		6,426		8,416		4,224
Homebuilding consolidated gross profit	$	265,159	$	262,795	$	696,275	$	656,922

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Homebuilding consolidated profit before taxes:
Mid Atlantic	$	81,137		$	88,058		$	191,476		$	217,665
North East		8,711			10,745			18,354			29,359
Mid East		34,699			29,958			87,488			52,607
South East		16,548			17,372			45,159			38,812
Reconciling items:
Contract land deposit impairment reserve (1)		785			4,705			3,421			11,511
Equity-based compensation expense		(10,272	)		(12,727	)		(30,152	)		(37,364	)
Corporate capital allocation (2)		50,032			45,690			140,606			124,033
Unallocated corporate overhead		(18,459	)		(18,055	)		(74,485	)		(67,803	)
Consolidation adjustments and other		9,798			9,147			25,660			11,477
Corporate interest expense		(5,322	)		(6,019	)		(14,688	)		(17,591	)
Reconciling items sub-total		26,562			22,741			50,362			24,263
Homebuilding consolidated profit before taxes	$	167,657		$	168,874		$	392,839		$	362,706

(1) This item represents changes to the contract land deposit impairment reserve which are not allocated to the reportable segments.

(2) This item represents the elimination of the corporate capital allocation charge included in the respective homebuilding reportable segments.  The corporate capital allocation charge is based on the segment’s monthly average asset balance, and is as follows for the periods presented:

25

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Corporate capital allocation charge:
Mid Atlantic	$	31,960	$	28,743	$	87,911	$	78,412
North East		4,572		4,451		13,972		11,566
Mid East		7,366		7,472		21,523		20,079
South East		6,134		5,024		17,200		13,976
Total	$	50,032	$	45,690	$	140,606	$	124,033

Mortgage Banking Segment

Three and Nine Months Ended September 30, 2016 and 2015

We conduct our mortgage banking activity through NVR Mortgage Finance, Inc. (“NVRM”), a wholly owned subsidiary. NVRM focuses exclusively on serving the homebuilding segment customer base. NVRM sells all of the mortgage loans it closes to investors in the secondary markets on a servicing-released basis, typically within 30 days from the loan closing. The following table summarizes the results of our mortgage banking operations and certain statistical data for the three and nine months ended September 30, 2016 and 2015:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Loan closing volume:
Total principal	$	1,055,163		$	951,872		$	2,751,410		$	2,449,902
Loan volume mix:
Adjustable rate mortgages		4	%		15	%		6	%		16	%
Fixed-rate mortgages		96	%		85	%		94	%		84	%
Operating profit:
Segment profit	$	18,155		$	16,966		$	42,503		$	35,847
Equity-based compensation expense		(809	)		(844	)		(2,307	)		(2,510	)
Mortgage banking income before tax	$	17,346		$	16,122		$	40,196		$	33,337
Capture rate:		88	%		88	%		88	%		88	%
Mortgage banking fees:
Net gain on sale of loans	$	22,699		$	20,912		$	59,386		$	48,243
Title services		7,279			6,844			19,265			17,982
Servicing fees		140			128			431			392
	$	30,118		$	27,884		$	79,082		$	66,617

Loan closing volume for the three and nine months ended September 30, 2016 increased by approximately $103,300, or 11%, and $301,500, or 12%, respectively, from the same periods for 2015. The increases in loan closing volume during the three and nine months ended September 30, 2016 were primarily attributable to the 9% and 13% increases, respectively, in the homebuilding segment’s number of units settled when compared to the same periods in 2015.

Segment profit for the three and nine months ended September 30, 2016 increased by approximately $1,200, or 7%, and $6,700, or 19%, respectively, from the same periods in 2015. The increases were primarily attributable to an increase in mortgage banking fees, partially offset by an increase in general and administrative expenses. Mortgage banking fees increased by approximately $2,200 and $12,500 during the three and nine months ended September 30, 2016, respectively, resulting from the aforementioned increase in loan closing volumes and an increase in secondary marketing gains on sales of loans. General and administrative expenses increased by approximately $1,100 and $6,700 during the three and nine months ended September 30, 2016, respectively, resulting from an increase in personnel costs.

26

Liquidity and Capital Resources

Lines of Credit and Notes Payable

Our homebuilding business segment funds its operations from cash flows provided by operating activities, a short-term unsecured working capital revolving credit facility and capital raised in the public debt and equity markets. On July 15, 2016, we entered into an unsecured Credit Agreement (the “Credit Agreement”) with Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, Merrill Lynch, Pierce, Fenner & Smith Incorporated as Sole Lead Arranger and Sole Book Runner, and the other lenders party thereto, which provides for aggregate revolving loan commitments of $200,000 (the “Facility”).  Proceeds of the borrowings under the Facility will be used for working capital and general corporate purposes.  Under the Credit Agreement, we may request increases of up to $300,000 to the Facility in the form of revolving loan commitments or term loans to the extent that new or existing lenders agree to provide additional revolving loan or term loan commitments.  The Credit Agreement provides for a $100,000 sublimit for the issuance of letters of credit of which there was approximately $8,200 outstanding at September 30, 2016, and a $25,000 sublimit for a swing line commitment. The Credit Agreement contains various representations and affirmative and negative covenants that are generally customary for credit facilities of this type.  Such covenants include among others, the following financial maintenance covenants: (i) minimum consolidated tangible net worth, (ii) minimum interest coverage ratio or minimum liquidity and (iii) a maximum leverage ratio. The negative covenants include among others, certain limitations on liens, investments and fundamental changes.  The Credit Agreement termination date is July 15, 2021. There was no debt outstanding under the Facility at September 30, 2016.

Our mortgage banking subsidiary, NVRM, provides for its mortgage origination and other operating activities using cash generated from its operations, borrowings from its parent company, NVR, as well as a $150,000 revolving mortgage repurchase facility (the “Repurchase Agreement”), which is non-recourse to NVR.  The Repurchase Agreement provides for an incremental commitment pursuant to which we may request increases in the total commitment available under the Repurchase Agreement by up to $50,000 in the aggregate.  The Repurchase Agreement expires on July 26, 2017.  At September 30, 2016, there were no borrowing base limitations reducing the amount available under the Repurchase Agreement.  There was no debt outstanding under the Repurchase Agreement at September 30, 2016.

There have been no other material changes in our lines of credit and notes payable during the nine months ended September 30, 2016.  For additional information regarding lines of credit and notes payable, see Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2015.

Cash Flows

For the nine months ended September 30, 2016, cash and cash equivalents decreased by $162,888.  Cash provided by operating activities was $91,488.  Cash provided by earnings for the nine months ended September 30, 2016 was used to fund the increases in homebuilding inventory of $309,824 and contract land deposits of $32,774. The increase in homebuilding inventory was primarily attributable to an increase in units under construction at September 30, 2016 compared to December 31, 2015.  Cash was provided by net proceeds of $90,880 from mortgage loan activity. Cash was favorably impacted by a $59,736 increase in accounts payable and accrued expenses associated with the increase in homebuilding inventory. Cash was also provided by a $33,732 increase in customer deposits attributable to an increase in our homebuilding sales backlog at September 30, 2016.

Net cash used in investing activities for the nine months ended September 30, 2016 of $7,303 included cash used for purchases of property, plant and equipment of $16,513, partially offset by the receipt of capital distributions from our unconsolidated JVs totaling $9,162.

Net cash used in financing activities was $247,073 for the nine months ended September 30, 2016.  Cash was used to repurchase 178,306 shares of our common stock at an aggregate purchase price of $291,743 under our ongoing common stock repurchase program, discussed below.  Stock option exercise activity provided $33,938 in proceeds, and we realized $10,949 in excess income tax benefits from equity-based compensation plan activity.

Equity Repurchases

In addition to funding growth in our homebuilding and mortgage banking operations, we historically have used a substantial portion of our excess liquidity to repurchase outstanding shares of our common stock in open market and privately negotiated transactions.  This ongoing repurchase activity is conducted pursuant to publicly announced Board

27

authorizations, and is typically executed in accordance with the safe-harbor provisions of Rule 10b-18 promulgated under the Exchange Act.  In addition, the Board resolutions authorizing us to repurchase shares of our common stock specifically prohibit us from purchasing shares from our officers, directors, Profit Sharing/401(k) Plan Trust or Employee Stock Ownership Plan Trust.  The repurchase program assists us in accomplishing our primary objective of creating increases in shareholder value.  See Part II, Item 2, Unregistered Sales of Equity Securities and Use of Proceeds, of this Quarterly Report on Form 10-Q for further discussion of repurchase activity during the third quarter of 2016.

Recent Accounting Pronouncements

See Note 14 to the accompanying condensed consolidated financial statements for discussion of recently issued accounting pronouncements applicable to us.

Critical Accounting Policies

There have been no material changes to our critical accounting policies as previously disclosed in Part II, Item 7, of our Annual Report on Form 10-K for the year ended December 31, 2015.

Item 3.Quantitative and Qualitative Disclosure about Market Risk

There have been no material changes in our market risks during the nine months ended September 30, 2016. For additional information regarding our market risks, see Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2015.

Item 4.Controls and Procedures

As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Exchange Act Rule 13a-15.  Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the design and operation of these disclosure controls and procedures were effective.  There have been no changes in our internal control over financial reporting in the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1.Legal Proceedings

In June 2010, we received a Request for Information from the United States Environmental Protection Agency (“EPA”) pursuant to Section 308 of the Clean Water Act. The request sought information about storm water discharge practices in connection with homebuilding projects completed or underway by us in New York and New Jersey. We cooperated with this request, and provided information to the EPA. We were subsequently informed by the United States Department of Justice (“DOJ”) that the EPA forwarded the information on the matter to the DOJ, and the DOJ requested that we meet with the government to discuss the status of the case. Meetings took place in January 2012, August 2012 and November 2014 with representatives from both the EPA and DOJ. We have continued discussions with the EPA and DOJ and are presently engaged in settlement discussions with them. Any settlement is expected to include injunctive relief and payment of a civil penalty. Although there can be no assurance that a settlement will be reached, we have recorded a liability associated with an estimated civil penalty amount on the accompanying condensed consolidated financial statements as of both September 30, 2016 and December 31, 2015.

We are also involved in various other litigation arising in the ordinary course of business. In the opinion of management, and based on advice of legal counsel, this litigation is not expected to have a material adverse effect on our financial position, results of operations or cash flows. Legal costs incurred in connection with outstanding litigation are expensed as incurred.

Item 1A.Risk Factors

There have been no material changes to the risk factors as previously disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2015.

28

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

(dollars in thousands, except per share data)

We had one share repurchase authorization outstanding during the quarter ended September 30, 2016. On November 4, 2015, we publicly announced that our Board of Directors authorized the repurchase of our outstanding common stock in one or more open market and/or privately negotiated transactions, up to an aggregate of $300,000.  The repurchase authorization does not have an expiration date.  We repurchased the following shares of our common stock during the third quarter of 2016:

Period	TotalNumber ofShares Purchased		Average Price Paid per Share		TotalNumberof SharesPurchased asPartofPublicly AnnouncedPlans orPrograms		MaximumNumber (or Approximate DollarValue)of SharesthatMayYet BePurchasedUnder thePlansor Programs
July 1 - 31, 2016		6,189	$	1,691.08		6,189	$	232,238
August 1 - 31, 2016		64,143	$	1,688.94		64,143	$	123,905
September 1 - 30, 2016		45,986	$	1,662.13		45,986	$	47,470
Total		116,318	$	1,678.45		116,318

29

Item 6.	Exhibits
	(a) Exhibits:
10.1	Credit Agreement dated as of July 15, 2016 among NVR, Inc. and the lenders party hereto, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and Merrill Lynch, Pierce, Fenner & Smith Incorporated as Sole Lead Arranger and Sole Book Runner. Incorporated by reference from Exhibit 10.1 to NVR’s Current Report on Form 8-K as filed on July 18, 2016.
10.2	Eighth Amendment to Amended and Restated Master Repurchase Agreement dated July 27, 2016, between NVR Mortgage Finance, Inc. and U.S. Bank National Association. Incorporated by reference from Exhibit 10.2 to NVR’s Quarterly Report on Form 10-Q filed on July 28, 2016.
31.1	Certification of NVR’s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
31.2	Certification of NVR’s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
32	Certification of NVR’s Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

30

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		NVR, Inc.
Date:  October 28, 2016	By:	/s/ Daniel D. Malzahn
		Daniel D. Malzahn
		Senior Vice President, Chief Financial Officer and Treasurer

31

Exhibit Index

Exhibit Number	Description
10.1	Credit Agreement dated as of July 15, 2016 among NVR, Inc. and the lenders party hereto, Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, and Merrill Lynch, Pierce, Fenner & Smith Incorporated as Sole Lead Arranger and Sole Book Runner. Incorporated by reference from Exhibit 10.1 to NVR’s Current Report on Form 8-K as filed on July 18, 2016.
10.2	Eighth Amendment to Amended and Restated Master Repurchase Agreement dated July 27, 2016, between NVR Mortgage Finance, Inc. and U.S. Bank National Association. Incorporated by reference from Exhibit 10.2 to NVR’s Quarterly Report on Form 10-Q filed on July 28, 2016.
31.1	Certification of NVR’s Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
31.2	Certification of NVR’s Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.
32	Certification of NVR’s Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

32

EX-31.1

Exhibit 31.1

SARBANES-OXLEY ACT SECTION 302 CERTIFICATIONS

I, Paul C. Saville, certify that:

1. I have reviewed this report on Form 10-Q of NVR, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  October 28, 2016	By:	/s/ Paul C. Saville
		Paul C. Saville
		President and Chief Executive Officer

EX-31.2

Exhibit 31.2

SARBANES-OXLEY ACT SECTION 302 CERTIFICATIONS

I, Daniel D. Malzahn, certify that:

1. I have reviewed this report on Form 10-Q of NVR, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  October 28, 2016	By:	/s/ Daniel D. Malzahn
		Daniel D. Malzahn
		Senior Vice President, Chief Financial Officer and Treasurer

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of NVR, Inc. for the period ended September 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers of NVR, Inc., hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of NVR, Inc.

Date:  October 28, 2016	By:	/s/ Paul C. Saville
		Paul C. Saville
		President and Chief Executive Officer
	By:	/s/ Daniel D. Malzahn
		Daniel D. Malzahn
		Senior Vice President, Chief Financial Officer and Treasurer

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 25, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Trading Symbol	NVR
Entity Registrant Name	NVR INC
Entity Central Index Key	0000906163
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		3,790,395

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
ASSETS
Cash and cash equivalents	$ 262,428	$ 425,316
Inventory:
Land under development	62,327
Contract land deposits, net	377,496	343,295
Total assets	2,663,216	2,511,718
LIABILITIES AND SHAREHOLDERS' EQUITY
Total liabilities	1,364,077	1,272,553
Commitments and contingencies
Shareholders' equity:
Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares issued as of both September 30, 2016 and December 31, 2015	206	206
Additional paid-in capital	1,499,770	1,447,795
Deferred compensation trust – 108,635 and 108,614 shares of NVR, Inc. common stock as of September 30, 2016 and December 31, 2015, respectively	(17,367)	(17,333)
Deferred compensation liability	17,367	17,333
Retained earnings	5,544,485	5,270,114
Less treasury stock at cost – 16,766,035 and 16,664,342 shares as of September 30, 2016 and December 31, 2015, respectively	(5,745,322)	(5,478,950)
Total shareholders' equity	1,299,139	1,239,165
Total liabilities and shareholders' equity	2,663,216	2,511,718
Homebuilding [Member]
ASSETS
Cash and cash equivalents	249,728	397,522
Receivables	13,921	11,482
Inventory:
Lots and housing units, covered under sales agreements with customers	1,107,919	785,982
Unsold lots and housing units	134,626	147,832
Land under development	62,327	60,611
Building materials and other	11,858	12,101
Total Inventory	1,316,730	1,006,526
Assets related to consolidated variable interest entity	1,247	1,749
Contract land deposits, net	377,496	343,295
Property, plant and equipment, net	45,321	44,651
Reorganization value in excess of amounts allocable to identifiable assets, net	41,580	41,580
Goodwill and finite-lived intangible assets, net	2,945	3,982
Other assets	280,245	281,381
Total assets	2,329,213	2,132,168
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	281,530	227,437
Accrued expenses and other liabilities	309,939	304,922
Liabilities related to consolidated variable interest entity	877	1,091
Customer deposits	144,697	110,965
Senior notes	596,303	595,847
Total liabilities	1,333,346	1,240,262
Mortgage Banking [Member]
ASSETS
Cash and cash equivalents	11,490	26,804
Mortgage loans held for sale, net	291,303	319,553
Inventory:
Property, plant and equipment, net	5,085	5,313
Reorganization value in excess of amounts allocable to identifiable assets, net	7,347	7,347
Other assets	18,778	20,533
Total assets	334,003	379,550
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and other liabilities	30,731	32,291
Total liabilities	$ 30,731	$ 32,291

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	20,555,330	20,555,330
Deferred compensation trust, shares	108,635	108,614
Treasury stock, shares	16,766,035	16,664,342

XML

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Interest expense	$ (5,624)	$ (6,081)	$ (15,526)	$ (17,955)
Income before taxes	185,003	184,996	433,035	396,043
Income tax expense	(67,611)	(68,526)	(158,664)	(147,120)
Net income	$ 117,392	$ 116,470	$ 274,371	$ 248,923
Basic earnings per share	$ 30.43	$ 28.75	$ 70.70	$ 61.34
Diluted earnings per share	$ 28.46	$ 27.11	$ 66.24	$ 58.32
Basic weighted average shares outstanding	3,858	4,050	3,881	4,058
Diluted weighted average shares outstanding	4,125	4,296	4,142	4,268
Homebuilding [Member]
Revenues	$ 1,507,451	$ 1,374,467	$ 3,990,696	$ 3,537,116
Other income	703	643	2,223	2,490
Cost of sales	(1,242,292)	(1,111,672)	(3,294,421)	(2,880,194)
Selling, general and administrative	(92,867)	(88,664)	(290,925)	(279,207)
Operating income	172,995	174,774	407,573	380,205
Interest expense	(5,338)	(5,900)	(14,734)	(17,499)
Income before taxes	167,657	168,874	392,839	362,706
Mortgage Banking [Member]
Mortgage banking fees	30,118	27,884	79,082	66,617
Interest income	2,000	1,972	5,111	4,353
Other income	473	363	1,140	711
General and administrative	(14,959)	(13,916)	(44,345)	(37,888)
Interest expense	(286)	(181)	(792)	(456)
Income before taxes	$ 17,346	$ 16,122	$ 40,196	$ 33,337

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income	$ 274,371	$ 248,923
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	16,591	16,182
Excess income tax benefit from equity-based compensation	(10,949)	(14,465)
Equity-based compensation expense	32,459	39,874
Contract land deposit recoveries, net	(1,427)	(9,925)
Gain on sale of loans, net	(59,386)	(48,243)
Mortgage loans closed	(2,542,659)	(2,163,472)
Mortgage loans sold and principal payments on mortgage loans held for sale	2,633,539	2,153,721
Distribution of earnings from unconsolidated joint ventures	8,026	13,069
Net change in assets and liabilities:
Increase in inventory	(309,824)	(289,754)
Increase in contract land deposits	(32,774)	(13,987)
(Increase) decrease in receivables	(2,913)	12
Increase in accounts payable and accrued expenses	59,736	78,935
Increase in customer deposits	33,732	25,317
Other, net	(7,034)	(20,605)
Net cash provided by operating activities	91,488	15,582
Cash flows from investing activities:
Investments in and advances to unconsolidated joint ventures	(653)	(1,552)
Distribution of capital from unconsolidated joint ventures	9,162	13,931
Purchase of property, plant and equipment	(16,513)	(13,468)
Proceeds from the sale of property, plant and equipment	701	476
Net cash used in investing activities	(7,303)	(613)
Cash flows from financing activities:
Purchase of treasury stock	(291,743)	(263,446)
Repayments under non-recourse debt related to consolidated variable interest entity and note payable		(64)
Distributions to partner in consolidated variable interest entity	(217)	(300)
Excess income tax benefit from equity-based compensation	10,949	14,465
Proceeds from the exercise of stock options	33,938	76,419
Net cash used in financing activities	(247,073)	(172,926)
Net decrease in cash and cash equivalents	(162,888)	(157,957)
Cash and cash equivalents, beginning of the period	425,316	545,419
Cash and cash equivalents, end of the period	262,428	387,462
Supplemental disclosures of cash flow information:
Interest paid during the period, net of interest capitalized	20,899	24,313
Income taxes paid during the period, net of refunds	$ 148,117	$ 123,841

XML

Basis of Presentation

9 Months Ended

Sep. 30, 2016

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation

1. Basis of Presentation

The accompanying unaudited, condensed consolidated financial statements include the accounts of NVR, Inc. (“NVR” or the “Company”) and its subsidiaries and certain other entities in which the Company is deemed to be the primary beneficiary (see Notes 2 and 3 to the accompanying condensed consolidated financial statements).  Intercompany accounts and transactions have been eliminated in consolidation.  The statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.  Because the accompanying condensed consolidated financial statements do not include all of the information and footnotes required by GAAP, they should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.  In the opinion of management, all adjustments (consisting only of normal recurring accruals except as otherwise noted herein) considered necessary for a fair presentation have been included.  Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.  Actual results could differ from those estimates.

In 2016, the Company adopted Accounting Standards Update (“ASU”) 2015-03, Interest – Imputation of Interest, which requires that debt issuance costs be presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability.  The adoption of this standard resulted in the reclassification of the unamortized debt issuance costs related to the Company’s 3.95% Senior Notes due 2022 (the “Senior Notes”) from the homebuilding “Other assets” line item to the homebuilding “Senior notes” line item in the accompanying condensed consolidated balance sheets.  See Note 12 for further discussion of the Company’s Senior Notes and the related unamortized debt issuance costs.

For the three and nine months ended September 30, 2016 and 2015, comprehensive income equaled net income; therefore, a separate statement of comprehensive income is not included in the accompanying condensed consolidated financial statements.

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Variable Interest Entities

9 Months Ended

Sep. 30, 2016

Variable Interest Entity Reporting Entity Involvement Maximum Loss Exposure [Abstract]

Variable Interest Entities

2. Variable Interest Entities

Fixed Price Finished Lot Purchase Agreements (“Lot Purchase Agreements”)

NVR generally does not engage in the land development business.  Instead, the Company typically acquires finished building lots at market prices from various development entities under Lot Purchase Agreements.  The Lot Purchase Agreements require deposits that may be forfeited if NVR fails to perform under the Lot Purchase Agreements.  The deposits required under the Lot Purchase Agreements are in the form of cash or letters of credit in varying amounts, and typically range up to 10% of the aggregate purchase price of the finished lots.

NVR believes this lot acquisition strategy reduces the financial requirements and risks associated with direct land ownership and land development.  NVR may, at its option, choose for any reason and at any time not to perform under these Lot Purchase Agreements by delivering notice of its intent not to acquire the finished lots under contract.  NVR’s sole legal obligation and economic loss for failure to perform under these Lot Purchase Agreements is limited to the amount of the deposit pursuant to the liquidated damage provisions contained within the Lot Purchase Agreements.  In other words, if NVR does not perform under a Lot Purchase Agreement, NVR loses only its deposit.  None of the creditors of any of the development entities with which NVR enters Lot Purchase Agreements have recourse to the general credit of NVR.  NVR generally does not have any specific performance obligations to purchase a certain number or any of the lots, nor does NVR guarantee completion of the development by the developer or guarantee any of the developers’ financial or other liabilities.

NVR is not involved in the design or creation of the development entities from which the Company purchases lots under Lot Purchase Agreements.  The developer’s equity holders have the power to direct 100% of the operating activities of the development entity.  NVR has no voting rights in any of the development entities.  The sole purpose of the development entity’s activities is to generate positive cash flow returns for the equity holders.  Further, NVR does not share in any of the profit or loss generated by the project’s development.  The profits and losses are passed directly to the developer’s equity holders.

The deposit placed by NVR pursuant to the Lot Purchase Agreement is deemed to be a variable interest in the respective development entities.  Those development entities are deemed to be variable interest entities (“VIE”).  Therefore, the development entities with which NVR enters into Lot Purchase Agreements, including the joint venture limited liability corporations discussed below, are evaluated for possible consolidation by NVR.  An enterprise must consolidate a VIE when that enterprise has a controlling financial interest in the VIE.  An enterprise is deemed to have a controlling financial interest if it has i) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance, and ii) the obligation to absorb losses of the VIE that could be significant to the VIE or the rights to receive benefits from the VIE that could be significant to the VIE.

NVR believes the activities that most significantly impact a development entity’s economic performance are the operating activities of the entity.  Unless and until a development entity completes finished building lots through the development process to be able to sell, the process of which the development entity’s equity investors bear the full risk, the entity does not earn any revenues.  The operating development activities are managed solely by the development entity’s equity investors.

The development entities with which NVR contracts to buy finished lots typically select the respective projects, obtain the necessary zoning approvals, obtain the financing required with no support or guarantees from NVR, select who will purchase the finished lots and at what price, and manage the completion of the infrastructure improvements, all for the purpose of generating a cash flow return to the development entity’s equity holders and all independent of NVR.  The Company possesses no more than limited protective legal rights through the Lot Purchase Agreement in the specific finished lots that it is purchasing, and NVR possesses no participative rights in the development entities.  Accordingly, NVR does not have the power to direct the activities of a developer that most significantly impact the developer’s economic performance.  For this reason, NVR has concluded that it is not the primary beneficiary of the development entities with which the Company enters into Lot Purchase Agreements, and therefore, NVR does not consolidate any of these VIEs.

As of September 30, 2016, NVR controlled approximately 72,300 lots under Lot Purchase Agreements with third parties through deposits in cash and letters of credit totaling approximately $399,700 and $2,000, respectively.  As noted above, NVR’s sole legal obligation and economic loss for failure to perform under these Lot Purchase Agreements is limited to the amount of the deposit pursuant to the liquidated damage provisions contained in the Lot Purchase Agreements and, in very limited circumstances, specific performance obligations.

In addition, NVR has certain properties under contract with land owners that are expected to yield approximately 10,900 lots, which are not included in the number of total lots controlled.  Some of these properties may require rezoning or other approvals to achieve the expected yield. These properties are controlled with deposits in cash and letters of credit totaling approximately $16,600 and $350, respectively, as of September 30, 2016, of which approximately $2,300 is refundable if NVR does not perform under the contract.  NVR generally expects to assign the raw land contracts to a land developer and simultaneously enter into a Lot Purchase Agreement with the assignee if the project is determined to be feasible.

NVR’s total risk of loss related to contract land deposits as of September 30, 2016 and December 31, 2015 was as follows:

	September 30, 2016			December 31, 2015
Contract land deposits	$	416,313		$	385,534
Loss reserve on contract land deposits		(38,817	)		(42,239	)
Contract land deposits, net		377,496			343,295
Contingent obligations in the form of letters of credit		2,310			3,302
Contingent specific performance obligations (1)		1,505			1,505
Total risk of loss	$	381,311		$	348,102

(1) As of both September 30, 2016 and December 31, 2015, the Company was committed to purchase 10 finished lots under specific performance obligations.

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Joint Ventures

9 Months Ended

Sep. 30, 2016

Equity Method Investments And Joint Ventures [Abstract]

Joint Ventures

3. Joint Ventures

On a limited basis, NVR obtains finished lots using joint venture limited liability corporations (“JVs”). The JVs are typically structured such that NVR is a non-controlling member and is at risk only for the amount the Company has invested, or has committed to invest, in addition to any deposits placed under Lot Purchase Agreements with the joint venture. NVR is not a borrower, guarantor or obligor on any debt of the JVs, as applicable. The Company enters into Lot Purchase Agreements to purchase lots from these JVs, and as a result has a variable interest in these JVs.

At September 30, 2016, the Company had an aggregate investment totaling approximately $51,500 in six JVs that are expected to produce approximately 7,500 finished lots, of which approximately 4,200 lots were controlled by the Company and the remaining approximately 3,300 lots were either under contract with unrelated parties or not currently under contract. In addition, NVR had additional funding commitments totaling approximately $6,200 in the aggregate to three of the JVs at September 30, 2016. The Company has determined that it is not the primary beneficiary of five of the JVs because either NVR and the other JV partner share power or the other JV partner has the controlling financial interest. The aggregate investment in unconsolidated JVs was approximately $51,100 and $59,800 at September 30, 2016 and December 31, 2015, respectively, and is reported in the “Other assets” line item on the accompanying condensed consolidated balance sheets. For the remaining JV, NVR has concluded that it is the primary beneficiary because the Company has the controlling financial interest in the JV. The condensed balance sheets as of September 30, 2016 and December 31, 2015 of the consolidated JV were as follows:

	September 30, 2016		December 31, 2015
Assets:
Cash	$	1,210	$	990
Other assets		37		379
Land under development		—		380
Total assets	$	1,247	$	1,749
Liabilities and equity:
Accrued expenses	$	611	$	567
Equity		636		1,182
Total liabilities and equity	$	1,247	$	1,749

The Company recognizes income from the JVs as a reduction to the lot cost of the lots purchased from the respective JVs when the homes are settled and is based on the expected total profitability and the total number of lots expected to be produced by the respective JVs. Distributions received from the unconsolidated JVs are allocated between return of capital and distributions of earnings based on the ratio of capital contributed by NVR to the total expected returns for the respective JVs, and are classified within the accompanying condensed consolidated statements of cash flows as cash flows from investing activities and operating activities, respectively.

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Land Under Development

9 Months Ended

Sep. 30, 2016

Real Estate [Abstract]

Land Under Development

4. Land Under Development

On a limited basis, NVR directly acquires raw land parcels 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.

As of September 30, 2016, NVR directly owned a total of four separate raw land parcels with a carrying value of $62,327 that are expected to produce approximately 800 finished lots. The Company also has additional funding commitments of approximately $13,700 under a joint development agreement related to one parcel, a portion of which the Company expects will be offset by development credits of approximately $7,300.

None of the raw parcels had any indicators of impairment as of September 30, 2016. Based on market conditions, NVR may on a limited basis continue to directly acquire additional raw parcels to develop into finished lots.

In February 2016, the Company purchased a land parcel which included both land under development and finished lots for approximately $150,000.In June 2016, the Company sold that land parcel to a developer for an amount which approximated NVR’s net investment in the property as of the sale date. In conjunction with the sale, the Company also entered into Lot Purchase Agreements with the developer for the option to purchase a portion of the finished lots expected to be developed from the parcel. Prior to the sale of the parcel, the Company sold 56 finished lots for approximately $16,800, which were under contract with unrelated parties.

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Capitalized Interest

9 Months Ended

Sep. 30, 2016

Interest Costs Incurred Capitalized [Abstract]

Capitalized Interest

5. Capitalized Interest

The Company capitalizes interest costs to land under development during the active development of finished lots.  In addition, the Company capitalizes interest costs to its joint venture investments while the investments are considered qualified assets pursuant to Accounting Standards Codification 835-20, Interest. Capitalized interest is transferred to sold or unsold inventory as the development of finished lots is completed, then charged to cost of sales upon the Company’s settlement of homes and the respective lots.  Interest incurred in excess of the interest capitalizable based on the level of qualified assets is expensed in the period incurred. NVR’s interest costs incurred, capitalized, expensed and charged to cost of sales during the three and nine months ended September 30, 2016 and 2015 was as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Interest capitalized, beginning of period	$	4,576		$	4,332		$	4,434		$	4,072
Interest incurred		6,562			6,317			19,347			18,842
Interest charged to interest expense		(5,624	)		(6,081	)		(15,526	)		(17,955	)
Interest charged to cost of sales		(600	)		(288	)		(3,341	)		(679	)
Interest capitalized, end of period	$	4,914		$	4,280		$	4,914		$	4,280

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Earnings per Share

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Earnings per Share

6. Earnings per Share

The following weighted average shares and share equivalents were used to calculate basic and diluted earnings per share for the three and nine months ended September 30, 2016 and 2015:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Weighted average number of shares outstanding used to calculate basic EPS		3,858		4,050		3,881		4,058
Dilutive securities:
Stock options and restricted share units		267		246		261		210
Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS		4,125		4,296		4,142		4,268

The following stock options and restricted share units issued under equity incentive plans were outstanding during the three and nine months ended September 30, 2016 and 2015, but were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Anti-dilutive securities		88		28		89		37

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Excess Reorganization Value, Goodwill and Other Intangibles

9 Months Ended

Sep. 30, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Excess Reorganization Value, Goodwill and Other Intangibles

7. Excess Reorganization Value, Goodwill and Other Intangibles

Reorganization value in excess of identifiable assets (“excess reorganization value”) is an indefinite-lived intangible asset that was created upon NVR’s emergence from bankruptcy on September 30, 1993.  Based on the allocation of the reorganization value, the portion of the reorganization value which was not attributed to specific tangible or intangible assets has been reported as excess reorganization value, which is treated similarly to goodwill.  Excess reorganization value is not subject to amortization.  Rather, excess reorganization value is subject to an impairment assessment on an annual basis or more frequently if changes in events or circumstances indicate that impairment may have occurred.  Because excess reorganization value was based on the reorganization value of NVR’s entire enterprise upon emergence from bankruptcy, the impairment assessment is conducted on an enterprise basis based on the comparison of NVR’s total equity to the market value of NVR’s outstanding publicly-traded common stock.

As of September 30, 2016, goodwill and net finite-lived intangible assets totaled $441 and $2,504, respectively.  The remaining finite-lived intangible assets are amortized on a straight-line basis over a weighted average life of three years.  Accumulated amortization as of September 30, 2016 was $6,274.  Amortization expense related to the finite-lived intangible assets was $346 and $1,037 for both the three and nine months ended September 30, 2016 and 2015, respectively.

The Company completed the annual impairment assessment of the excess reorganization value and goodwill during the first quarter of 2016 and determined that there was no impairment.

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Shareholders' Equity

9 Months Ended

Sep. 30, 2016

Equity [Abstract]

Shareholders' Equity

8. Shareholders’ Equity

A summary of changes in shareholders’ equity is presented below:

	Common Stock		Additional Paid-In Capital			Retained Earnings		Treasury Stock			Deferred Compensation Trust			Deferred Compensation Liability		Total
Balance, December 31, 2015	$	206	$	1,447,795		$	5,270,114	$	(5,478,950	)	$	(17,333	)	$	17,333	$	1,239,165
Net income		—		—			274,371		—			—			—		274,371
Deferred compensation activity		—		—			—		—			(34	)		34		—
Purchase of common stock for treasury		—		—			—		(291,743	)		—			—		(291,743	)
Equity-based compensation		—		32,459			—		—			—			—		32,459
Excess tax benefit from equity benefit plan activity		—		10,949			—		—			—			—		10,949
Proceeds from stock options exercised		—		33,938			—		—			—			—		33,938
Treasury stock issued upon option exercise and restricted share vesting		—		(25,371	)		—		25,371			—			—		—
Balance, September 30, 2016	$	206	$	1,499,770		$	5,544,485	$	(5,745,322	)	$	(17,367	)	$	17,367	$	1,299,139

The Company repurchased 178 shares of its common stock during the nine months ended September 30, 2016. The Company settles stock option exercises and vesting of restricted share units by issuing shares of treasury stock.  Approximately 77 shares were issued from the treasury account during the nine months ended September 30, 2016 in settlement of stock option exercises and vesting of restricted share units.  Shares are relieved from the treasury account based on the weighted average cost basis of treasury shares acquired.

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Product Warranties

9 Months Ended

Sep. 30, 2016

Product Warranties Disclosures [Abstract]

Product Warranties

9. Product Warranties

The Company establishes warranty and product liability reserves (“warranty reserve”) to provide for estimated future expenses as a result of construction and product defects, product recalls and litigation incidental to NVR’s homebuilding business.  Liability estimates are determined based on management’s judgment, considering such factors as historical experience, the likely current cost of corrective action, manufacturers’ and subcontractors’ participation in sharing the cost of corrective action, consultations with third party experts such as engineers, and discussions with the Company’s general counsel and outside counsel retained to handle specific product liability cases.  The following table reflects the changes in the Company’s warranty reserve during the three and nine months ended September 30, 2016 and 2015:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Warranty reserve, beginning of period	$	87,953		$	85,874		$	87,407		$	94,060
Provision		11,622			12,674			33,331			32,899
Payments		(11,551	)		(12,617	)		(32,714	)		(41,028	)
Warranty reserve, end of period	$	88,024		$	85,931		$	88,024		$	85,931

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Segment Disclosures

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Disclosures

10. Segment Disclosures

The following disclosure includes four homebuilding reportable segments that aggregate geographically the Company’s homebuilding operating segments, and the mortgage banking operations presented as a single reportable segment.  The homebuilding reportable segments are comprised of operating divisions in the following geographic areas:

Mid Atlantic:	Maryland, Virginia, West Virginia, Delaware and Washington, D.C.
North East:	New Jersey and Eastern Pennsylvania
Mid East:	New York, Ohio, Western Pennsylvania, Indiana and Illinois
South East:	North Carolina, South Carolina, Florida and Tennessee

Homebuilding profit before tax includes all revenues and income generated from the sale of homes, less the cost of homes sold, selling, general and administrative expenses and a corporate capital allocation charge.  The corporate capital allocation charge is eliminated in consolidation and is based on the segment’s average net assets employed.  The corporate capital allocation charged to the operating segment allows the Chief Operating Decision Maker (“CODM”) to determine whether the operating segment’s results are providing the desired rate of return after covering the Company’s cost of capital.  In addition, certain assets, including goodwill and intangible assets and consolidation adjustments as discussed further below, are not allocated to the operating segments as those assets are neither included in the operating segment’s corporate capital allocation charge, nor in the CODM’s evaluation of the operating segment’s performance.  The Company records charges on contract land deposits when it is determined that it is probable that recovery of the deposit is impaired.  For segment reporting purposes, impairments on contract land deposits are charged to the operating segment upon the determination to terminate a Lot Purchase Agreement with the developer, or to restructure a Lot Purchase Agreement resulting in the forfeiture of the deposit.  Mortgage banking profit before tax consists of revenues generated from mortgage financing, title insurance and closing services, less the costs of such services and general and administrative costs.  Mortgage banking operations are not charged a corporate capital allocation charge.

In addition to the corporate capital allocation and contract land deposit impairments discussed above, the other reconciling items between segment profit and consolidated profit before tax include unallocated corporate overhead (including all management incentive compensation), equity-based compensation expense, consolidation adjustments and external corporate interest expense.  NVR’s overhead functions, such as accounting, treasury and human resources, are centrally performed and the costs are not allocated to the Company’s operating segments.  Consolidation adjustments consist of such items necessary to convert the reportable segments’ results, which are predominantly maintained on a cash basis, to a full accrual basis for external financial statement presentation purposes, and are not allocated to the Company’s operating segments.  External corporate interest expense primarily consists of interest charges on the Company’s Senior Notes and is not charged to the operating segments because the charges are included in the corporate capital allocation discussed above.

Following are tables presenting segment revenues, profit and assets, with reconciliations to the amounts reported for the consolidated enterprise, where applicable:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Revenues:
Homebuilding Mid Atlantic	$	873,490	$	792,532	$	2,279,207	$	2,094,820
Homebuilding North East		123,754		120,143		329,674		317,510
Homebuilding Mid East		327,387		299,157		877,921		705,670
Homebuilding South East		182,820		162,635		503,894		419,116
Mortgage Banking		30,118		27,884		79,082		66,617
Total consolidated revenues	$	1,537,569	$	1,402,351	$	4,069,778	$	3,603,733

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Profit before taxes:
Homebuilding Mid Atlantic	$	81,137		$	88,058		$	191,476		$	217,665
Homebuilding North East		8,711			10,745			18,354			29,359
Homebuilding Mid East		34,699			29,958			87,488			52,607
Homebuilding South East		16,548			17,372			45,159			38,812
Mortgage Banking		18,155			16,966			42,503			35,847
Total segment profit before taxes		159,250			163,099			384,980			374,290
Reconciling items:
Contract land deposit reserve adjustment (1)		785			4,705			3,421			11,511
Equity-based compensation expense		(11,081	)		(13,571	)		(32,459	)		(39,874	)
Corporate capital allocation (2)		50,032			45,690			140,606			124,033
Unallocated corporate overhead		(18,459	)		(18,055	)		(74,485	)		(67,803	)
Consolidation adjustments and other		9,798			9,147			25,660			11,477
Corporate interest expense		(5,322	)		(6,019	)		(14,688	)		(17,591	)
Reconciling items sub-total		25,753			21,897			48,055			21,753
Consolidated profit before taxes	$	185,003		$	184,996		$	433,035		$	396,043

	September 30, 2016			December 31, 2015
Assets:
Homebuilding Mid Atlantic	$	1,223,426		$	994,804
Homebuilding North East		145,191			133,106
Homebuilding Mid East		253,806			220,094
Homebuilding South East		229,682			175,572
Mortgage Banking		326,656			372,203
Total segment assets		2,178,761			1,895,779
Reconciling items:
Consolidated variable interest entity		1,247			1,749
Cash and cash equivalents		249,728			397,522
Deferred taxes		171,941			161,805
Intangible assets and goodwill		51,872			52,909
Contract land deposit reserve		(38,817	)		(42,239	)
Consolidation adjustments and other		48,484			44,193
Reconciling items sub-total		484,455			615,939
Consolidated assets	$	2,663,216		$	2,511,718

(1) This item represents changes to the contract land deposit impairment reserve, which are not allocated to the reportable segments.

(2) This item represents the elimination of the corporate capital allocation charge included in the respective homebuilding reportable segments.  The corporate capital allocation charge is based on the segment’s monthly average asset balance, and was as follows for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Corporate capital allocation charge:
Homebuilding Mid Atlantic	$	31,960	$	28,743	$	87,911	$	78,412
Homebuilding North East		4,572		4,451		13,972		11,566
Homebuilding Mid East		7,366		7,472		21,523		20,079
Homebuilding South East		6,134		5,024		17,200		13,976
Total	$	50,032	$	45,690	$	140,606	$	124,033

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Fair Value

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value

11. Fair Value

GAAP assigns a fair value hierarchy to the inputs used to measure fair value.  Level 1 inputs are quoted prices in active markets for identical assets and liabilities.  Level 2 inputs are inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly.  Level 3 inputs are unobservable inputs.

Financial Instruments

The estimated fair value of NVR’s Senior Notes as of September 30, 2016 was $633,000.  The estimated fair value is based on recent market prices of similar transactions, which is classified as Level 2 within the fair value hierarchy.  The carrying value of the Senior Notes was $596,303 at September 30, 2016.  Except as otherwise noted below, NVR believes that insignificant differences exist between the carrying value and the fair value of its financial instruments, which consist of cash equivalents, due to their short term nature.

Derivative Instruments and Mortgage Loans Held for Sale

In the normal course of business, NVR’s wholly-owned mortgage subsidiary, NVR Mortgage Finance, Inc. (“NVRM”), enters into contractual commitments to extend credit to NVR’s homebuyers with fixed expiration dates.  The commitments become effective when the borrowers "lock-in" a specified interest rate within time frames established by NVRM.  All mortgagors are evaluated for credit worthiness prior to the extension of the commitment.  Market risk arises if interest rates move adversely between the time of the "lock-in" of rates by the borrower and the sale date of the loan to a broker/dealer.  To mitigate the effect of the interest rate risk inherentin providing rate lock commitments to borrowers, NVRM enters into optional or mandatory delivery forward sale contracts to sell whole loans and mortgage-backed securities to broker/dealers.  The forward sales contracts lock in an interest rate and price for the sale of loans similar to the specific rate lock commitments.  NVRM does not engage in speculative or trading derivative activities.  Both the rate lock commitments to borrowers and the forward sale contracts to broker/dealers are undesignated derivatives and, accordingly, are marked to fair value through earnings.  At September 30, 2016, there were contractual commitments to extend credit to borrowers aggregating $553,600 and open forward delivery contracts aggregating $757,756, which hedge both the rate lock loan commitments and closed loans held for sale.

The fair value of NVRM’s rate lock commitments to borrowers and the related input levels include, as applicable:

i) the assumed gain/loss of the expected resultant loan sale (Level 2);

ii) the effects of interest rate movements between the date of the rate lock and the balance sheet date (Level 2); and

iii) the value of the servicing rights associated with the loan (Level 2).

The assumed gain/loss considers the excess servicing to be received or buydown fees to be paid upon securitization of the loan.  The excess servicing and buydown fees are calculated pursuant to contractual terms with investors.  To calculate the effects of interest rate movements, NVRM utilizes applicable published mortgage-backed security prices, and multiplies the price movement between the rate lock date and the balance sheet date by the notional loan commitment amount.  NVRM sells all of its loans on a servicing released basis, and receives a servicing released premium upon sale.  Thus, the value of the servicing rights, which averaged 95 basis points of the loan amount as of September 30, 2016, is included in the fair value measurement and is based upon contractual terms with investors and varies depending on the loan type.  NVRM assumes an approximate 13% fallout rate when measuring the fair value of rate lock commitments.  Fallout is defined as locked loan commitments for which NVRM does not close a mortgage loan and is based on historical experience.

The fair value of NVRM’s forward sales contracts to broker/dealers solely considers the market price movement of the same type of security between the trade date and the balance sheet date (Level 2).  The market price changes are multiplied by the notional amount of the forward sales contracts to measure the fair value.

Mortgage loans held for sale are carried at the lower of cost or fair value, net of deferred origination costs, until sold.  Fair value is measured using Level 2 inputs.  The fair value of loans held for sale of $291,303 included on the accompanying condensed consolidated balance sheet has been increased by $2,760 from the aggregate principal balance of $288,543.

The undesignated derivative instruments are included on the accompanying condensed consolidated balance sheet, as of September 30, 2016, as follows:

	Fair Value		Balance Sheet Location
Rate lock commitments:
Gross assets	$	6,256
Gross liabilities		1,379
Net rate lock commitments	$	4,877	NVRM - Other assets
Forward sales contracts:
Gross assets	$	174
Gross liabilities		1,304
Net forward sales contracts	$	1,130	NVRM - Accounts payable and other liabilities

The fair value measurement as of September 30, 2016 was as follows:

	Notional or Principal Amount		Assumed Gain/(Loss) From Loan Sale			Interest Rate Movement Effect		Servicing Rights Value		Security Price Change			Total Fair Value Measurement Gain/(Loss)
Rate lock commitments	$	553,600	$	(738	)	$	1,024	$	4,591	$	—		$	4,877
Forward sales contracts	$	757,756		—			—		—		(1,130	)		(1,130	)
Mortgages held for sale	$	288,543		(51	)		81		2,730		—			2,760
Total fair value measurement			$	(789	)	$	1,105	$	7,321	$	(1,130	)	$	6,507

For the three and nine months ended September 30, 2016, NVRM recorded a fair value adjustment to expense of $758 and $826, respectively.  For the three and nine months ended September 30, 2015, NVRM recorded a fair value adjustment to income of $3,429 and $5,040, respectively.  Unrealized gains/losses from the change in the fair value measurements are included in earnings as a component of mortgage banking fees in the accompanying condensed consolidated statements of income.  The fair value measurement will be impacted in the future by the change in the value of the servicing rights, interest rate movements, security price fluctuations, and the volume and product mix of NVRM’s closed loans and locked loan commitments.

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Debt

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Debt

12. Debt

As of September 30, 2016, the Company had Senior Notes outstanding with a principal balance of $600,000. The Senior Notes mature on September 15, 2022 and bear interest at 3.95%, payable semi-annually in arrears on March 15 and September 15. The Senior Notes were issued at a discount to yield 3.97% and have been reflected net of the unamortized discount in the accompanying condensed consolidated balance sheet. Additionally, following the Company’s adoption of ASU 2015-03 as of January 1, 2016, as further discussed in Note 1, the Senior Notes have been reflected net of unamortized debt issuance costs of $3,031 and $3,413 as of September 30, 2016 and December 31, 2015, respectively.

On July 15, 2016, NVR entered into an unsecured Credit Agreement (the “Credit Agreement”) with Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer, Merrill Lynch, Pierce, Fenner & Smith Incorporated as Sole Lead Arranger and Sole Book Runner, and the other lenders party thereto, which provides for aggregate revolving loan commitments of $200,000 (the “Facility”).  Proceeds of the borrowings under the Facility will be used for working capital and general corporate purposes.  Under the Credit Agreement, the Company may request increases of up to $300,000 to the Facility in the form of revolving loan commitments or term loans to the extent that new or existing lenders agree to provide additional revolving loan or term loan commitments.  The Credit Agreement provides for a $100,000 sublimit for the issuance of letters of credit of which approximately $8,200 was outstanding at September 30, 2016, and a $25,000 sublimit for a swing line commitment.

The Credit Agreement contains various representations and affirmative and negative covenants that are generally customary for credit facilities of this type.  Such covenants include, among others, the following financial maintenance covenants: (i) minimum consolidated tangible net worth, (ii) minimum interest coverage ratio or minimum liquidity and (iii) a maximum leverage ratio. The negative covenants include, among others, certain limitations on liens, investments and fundamental changes. The Credit Agreement termination date is July 15, 2021. There was no debt outstanding under the Facility at September 30, 2016.

NVRM provides for its mortgage origination and other operating activities using cash generated from its operations, borrowings from its parent company, NVR, as well as a revolving mortgage repurchase agreement (the “Repurchase Agreement”), which is non-recourse to NVR.  The Repurchase Agreement provides for loan purchases up to $150,000, subject to certain sub-limits, and provides for an incremental commitment pursuant to which NVRM may from time to time request increases in the total commitment available under the Repurchase Agreement by up to $50,000 in the aggregate. Amounts outstanding under the Repurchase Agreement are collateralized by the Company’s mortgage loans held for sale. The Repurchase Agreement expires onJuly 26, 2017. At September 30, 2016, there were no borrowing base limitations reducing the amount available under the Repurchase Agreement. There was no debt outstanding under the Repurchase Agreement at September 30, 2016.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2016

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

13. Commitments and Contingencies

In June 2010, the Company received a Request for Information from the United States Environmental Protection Agency (“EPA”) pursuant to Section 308 of the Clean Water Act. The request sought information about storm water discharge practices in connection with homebuilding projects completed or underway by the Company in New York and New Jersey. The Company cooperated with this request, and provided information to the EPA. The Company was subsequently informed by the United States Department of Justice (“DOJ”) that the EPA forwarded the information on the matter to the DOJ, and the DOJ requested that the Company meet with the government to discuss the status of the case. Meetings took place in January 2012, August 2012 and November 2014 with representatives from both the EPA and DOJ. The Company has continued discussions with the EPA and DOJ and is presently engaged in settlement discussions with them. Any settlement is expected to include injunctive relief and payment of a civil penalty. Although there can be no assurance that a settlement will be reached, the Company has recorded a liability associated with an estimated civil penalty amount on the accompanying condensed consolidated financial statements as of both September 30, 2016 and December 31, 2015.

The Company and its subsidiaries are also involved in various other litigation arising in the ordinary course of business. In the opinion of management, and based on advice of legal counsel, this litigation is not expected to have a material adverse effect on the financial position, results of operations or cash flows of the Company. Legal costs incurred in connection with outstanding litigation are expensed as incurred.

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Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2016

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

Recent Accounting Pronouncements

14. Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers.  The standard will replace most existing revenue recognition guidance in GAAP when it becomes effective. In July 2015, the FASB delayed the standard’s effective date for one year.  The standard is effective for the Company as of January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. The Company does not believe that the adoption of this standard will have a material effect on its consolidated financial statements and related disclosures.

In August 2014, FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40):  Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The standard requires an entity’s management to evaluate at each annual and interim reporting period whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued and to provide related footnote disclosures. The standard is effective for the Company as of January 1, 2017. The Company does not believe that the adoption of this standard will have a material effect on its consolidated financial statements and related disclosures.

In February 2015, FASB issued ASU 2015-02, Consolidation (Topic 810) – Amendments to the Consolidation Analysis.  The standard changes the manner in which reporting entities evaluate consolidation requirements of certain legal entities.  The standard became effective for the Company on January 1, 2016.  The adoption of this standard did not have any effect on the Company’s consolidated financial statements and related disclosures.

In July 2015, FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory.  The standard simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost or net realizable value.  The amendments in the standard do not apply to inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. The standard is effective for the Company as of January 1, 2017.  The amendments in the standard are to be applied prospectively with early adoption permitted.  The Company does not believe that the adoption of this standard will have a material effect on its consolidated financial statements and related disclosures.

In February 2016, FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on-balance sheet with a liability equal to the present value of lease payments over the lease term and a right-of-use asset for the right to use the underlying asset over the lease term.  Lessees will recognize expenses on their income statements in a manner similar to current GAAP. The standard is effective for the Company as of January 1, 2019.  The Company believes that the adoption of this standard will have a material effect on both assets and liabilities presented on the balance sheet, and is further evaluating the impact of its adoption.

In March 2016, FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718):  Improvements to Employee Share-Based Payment Accounting.  The standard simplifies several aspects of share-based payment accounting, including the recognition of income tax effects, statutory tax withholding requirements and accounting for forfeitures.  The standard is effective for the Company as of January 1, 2017. The Company believes that the standard will likely have a material effect on net income and earnings per share presented on its consolidated financial statements, and is further evaluating the impact of its adoption.

In June 2016, FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which significantly changes the way impairment of financial assets is recognized.  The standard will require immediate recognition of estimated credit losses expected to occur over the remaining life of many financial assets, which will generally result in earlier recognition of allowances for credit losses on loans and other financial instruments.  The standard’s provisions will be applied as a cumulative-effect adjustment to beginning retained earnings as of the effective date. The standard is effective for the Company as of January 1, 2020.  Early adoption is permitted for annual and interim periods beginning January 1, 2019.  The Company is currently evaluating the effect that the standard will have on its consolidated financial statements and related disclosures.

In August 2016, FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. The objective of the standard is to address the diversity in practice of how certain cash receipts and payments are presented on the statement of cash flows. The standard requires that the guidance be applied retrospectively in the first interim and annual periods in which an entity adopts the guidance. The standard is effective for the Company as of January 1, 2018, and early adoption is permitted. The Company is currently evaluating the effect that the standard will have on its consolidated statements of cash flows and related disclosures.

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Variable Interest Entities (Tables)

9 Months Ended

Sep. 30, 2016

Variable Interest Entity Reporting Entity Involvement Maximum Loss Exposure [Abstract]

Total Risk of Loss Related to Contract Land Deposits

NVR’s total risk of loss related to contract land deposits as of September 30, 2016 and December 31, 2015 was as follows:

	September 30, 2016			December 31, 2015
Contract land deposits	$	416,313		$	385,534
Loss reserve on contract land deposits		(38,817	)		(42,239	)
Contract land deposits, net		377,496			343,295
Contingent obligations in the form of letters of credit		2,310			3,302
Contingent specific performance obligations (1)		1,505			1,505
Total risk of loss	$	381,311		$	348,102

(1) As of both September 30, 2016 and December 31, 2015, the Company was committed to purchase 10 finished lots under specific performance obligations.

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Joint Ventures (Tables)

9 Months Ended

Sep. 30, 2016

Consolidated Joint Venture

Schedule Of Equity Method Investments [Line Items]

Condensed Balance Sheets

The condensed balance sheets as of September 30, 2016 and December 31, 2015 of the consolidated JV were as follows:

	September 30, 2016		December 31, 2015
Assets:
Cash	$	1,210	$	990
Other assets		37		379
Land under development		—		380
Total assets	$	1,247	$	1,749
Liabilities and equity:
Accrued expenses	$	611	$	567
Equity		636		1,182
Total liabilities and equity	$	1,247	$	1,749

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Capitalized Interest (Tables)

9 Months Ended

Sep. 30, 2016

Interest Costs Incurred Capitalized [Abstract]

Summary of Interest Costs Incurred, Capitalized, Expensed and Charged to Cost of Sales

NVR’s interest costs incurred, capitalized, expensed and charged to cost of sales during the three and nine months ended September 30, 2016 and 2015 was as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Interest capitalized, beginning of period	$	4,576		$	4,332		$	4,434		$	4,072
Interest incurred		6,562			6,317			19,347			18,842
Interest charged to interest expense		(5,624	)		(6,081	)		(15,526	)		(17,955	)
Interest charged to cost of sales		(600	)		(288	)		(3,341	)		(679	)
Interest capitalized, end of period	$	4,914		$	4,280		$	4,914		$	4,280

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Earnings per Share (Tables)

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Weighted Average Shares and Share Equivalents Used to Calculate Basic and Diluted Earnings Per Share

The following weighted average shares and share equivalents were used to calculate basic and diluted earnings per share for thethree and nine months ended September 30, 2016 and 2015:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Weighted average number of shares outstanding used to calculate basic EPS		3,858		4,050		3,881		4,058
Dilutive securities:
Stock options and restricted share units		267		246		261		210
Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS		4,125		4,296		4,142		4,268

Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following stock options and restricted share units issued under equity incentive plans were outstanding during the three and nine months ended September 30, 2016 and 2015, but were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Anti-dilutive securities		88		28		89		37

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Shareholders' Equity (Tables)

9 Months Ended

Sep. 30, 2016

Equity [Abstract]

Summary of Changes in Shareholders' Equity

A summary of changes in shareholders’ equity is presented below:

	Common Stock		Additional Paid-In Capital			Retained Earnings		Treasury Stock			Deferred Compensation Trust			Deferred Compensation Liability		Total
Balance, December 31, 2015	$	206	$	1,447,795		$	5,270,114	$	(5,478,950	)	$	(17,333	)	$	17,333	$	1,239,165
Net income		—		—			274,371		—			—			—		274,371
Deferred compensation activity		—		—			—		—			(34	)		34		—
Purchase of common stock for treasury		—		—			—		(291,743	)		—			—		(291,743	)
Equity-based compensation		—		32,459			—		—			—			—		32,459
Excess tax benefit from equity benefit plan activity		—		10,949			—		—			—			—		10,949
Proceeds from stock options exercised		—		33,938			—		—			—			—		33,938
Treasury stock issued upon option exercise and restricted share vesting		—		(25,371	)		—		25,371			—			—		—
Balance, September 30, 2016	$	206	$	1,499,770		$	5,544,485	$	(5,745,322	)	$	(17,367	)	$	17,367	$	1,299,139

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Product Warranties (Tables)

9 Months Ended

Sep. 30, 2016

Product Warranties Disclosures [Abstract]

Summary of Changes in Product Warranties Reserve

The following table reflects the changes in the Company’s warranty reserve during the three and nine months ended September 30, 2016 and 2015:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Warranty reserve, beginning of period	$	87,953		$	85,874		$	87,407		$	94,060
Provision		11,622			12,674			33,331			32,899
Payments		(11,551	)		(12,617	)		(32,714	)		(41,028	)
Warranty reserve, end of period	$	88,024		$	85,931		$	88,024		$	85,931

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Segment Disclosures (Tables)

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Revenues

Following are tables presenting segment revenues, profit and assets, with reconciliations to the amounts reported for the consolidated enterprise, where applicable:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Revenues:
Homebuilding Mid Atlantic	$	873,490	$	792,532	$	2,279,207	$	2,094,820
Homebuilding North East		123,754		120,143		329,674		317,510
Homebuilding Mid East		327,387		299,157		877,921		705,670
Homebuilding South East		182,820		162,635		503,894		419,116
Mortgage Banking		30,118		27,884		79,082		66,617
Total consolidated revenues	$	1,537,569	$	1,402,351	$	4,069,778	$	3,603,733

Profit before Taxes

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Profit before taxes:
Homebuilding Mid Atlantic	$	81,137		$	88,058		$	191,476		$	217,665
Homebuilding North East		8,711			10,745			18,354			29,359
Homebuilding Mid East		34,699			29,958			87,488			52,607
Homebuilding South East		16,548			17,372			45,159			38,812
Mortgage Banking		18,155			16,966			42,503			35,847
Total segment profit before taxes		159,250			163,099			384,980			374,290
Reconciling items:
Contract land deposit reserve adjustment (1)		785			4,705			3,421			11,511
Equity-based compensation expense		(11,081	)		(13,571	)		(32,459	)		(39,874	)
Corporate capital allocation (2)		50,032			45,690			140,606			124,033
Unallocated corporate overhead		(18,459	)		(18,055	)		(74,485	)		(67,803	)
Consolidation adjustments and other		9,798			9,147			25,660			11,477
Corporate interest expense		(5,322	)		(6,019	)		(14,688	)		(17,591	)
Reconciling items sub-total		25,753			21,897			48,055			21,753
Consolidated profit before taxes	$	185,003		$	184,996		$	433,035		$	396,043

(1) This item represents changes to the contract land deposit impairment reserve, which are not allocated to the reportable segments.

(2) This item represents the elimination of the corporate capital allocation charge included in the respective homebuilding reportable segments.  The corporate capital allocation charge is based on the segment’s monthly average asset balance, and was as follows for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Corporate capital allocation charge:
Homebuilding Mid Atlantic	$	31,960	$	28,743	$	87,911	$	78,412
Homebuilding North East		4,572		4,451		13,972		11,566
Homebuilding Mid East		7,366		7,472		21,523		20,079
Homebuilding South East		6,134		5,024		17,200		13,976
Total	$	50,032	$	45,690	$	140,606	$	124,033

Assets

	September 30, 2016			December 31, 2015
Assets:
Homebuilding Mid Atlantic	$	1,223,426		$	994,804
Homebuilding North East		145,191			133,106
Homebuilding Mid East		253,806			220,094
Homebuilding South East		229,682			175,572
Mortgage Banking		326,656			372,203
Total segment assets		2,178,761			1,895,779
Reconciling items:
Consolidated variable interest entity		1,247			1,749
Cash and cash equivalents		249,728			397,522
Deferred taxes		171,941			161,805
Intangible assets and goodwill		51,872			52,909
Contract land deposit reserve		(38,817	)		(42,239	)
Consolidation adjustments and other		48,484			44,193
Reconciling items sub-total		484,455			615,939
Consolidated assets	$	2,663,216		$	2,511,718

Corporate Capital Allocation Charge

The corporate capital allocation charge is based on the segment’s monthly average asset balance, and was as follows for the periods presented:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Corporate capital allocation charge:
Homebuilding Mid Atlantic	$	31,960	$	28,743	$	87,911	$	78,412
Homebuilding North East		4,572		4,451		13,972		11,566
Homebuilding Mid East		7,366		7,472		21,523		20,079
Homebuilding South East		6,134		5,024		17,200		13,976
Total	$	50,032	$	45,690	$	140,606	$	124,033

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Fair Value (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Undesignated Derivative Instruments

The undesignated derivative instruments are included on the accompanying condensed consolidated balance sheet, as of September 30, 2016, as follows:

	Fair Value		Balance Sheet Location
Rate lock commitments:
Gross assets	$	6,256
Gross liabilities		1,379
Net rate lock commitments	$	4,877	NVRM - Other assets
Forward sales contracts:
Gross assets	$	174
Gross liabilities		1,304
Net forward sales contracts	$	1,130	NVRM - Accounts payable and other liabilities

Fair Value Measurement

The fair value measurement as of September 30, 2016 was as follows:

	Notional or Principal Amount		Assumed Gain/(Loss) From Loan Sale			Interest Rate Movement Effect		Servicing Rights Value		Security Price Change			Total Fair Value Measurement Gain/(Loss)
Rate lock commitments	$	553,600	$	(738	)	$	1,024	$	4,591	$	—		$	4,877
Forward sales contracts	$	757,756		—			—		—		(1,130	)		(1,130	)
Mortgages held for sale	$	288,543		(51	)		81		2,730		—			2,760
Total fair value measurement			$	(789	)	$	1,105	$	7,321	$	(1,130	)	$	6,507

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Basis of Presentation - Additional Information (Detail) - Senior Notes due 2022 [Member]	9 Months Ended
	Sep. 30, 2016
Debt Instrument [Line Items]
Senior notes interest rate	3.95%
Senior notes maturity date	Sep. 15, 2022

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Variable Interest Entities - Additional Information (Detail) $ in Thousands	Sep. 30, 2016 USD ($) Lot	Dec. 31, 2015 USD ($)
Variable Interest Entity [Line Items]
Contract land deposits	$ 416,313	$ 385,534
Variable Interest Entities [Member]
Variable Interest Entity [Line Items]
Maximum range of deposits required under the purchase agreements	10.00%
Lots controlled by NVR | Lot	72,300
Contract land deposits in cash	$ 399,700
Letters of credit related to lots	$ 2,000
Contract on Raw Ground with Landowners [Member]
Variable Interest Entity [Line Items]
Lots controlled by NVR | Lot	10,900
Contract land deposits	$ 16,600
Letters of credit related to land contract	350
Refundable deposits and letters of credit	$ 2,300

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Variable Interest Entities - Total Risk of Loss Related to Contract Land Deposits (Detail) - USD ($) $ in Thousands		Sep. 30, 2016	Dec. 31, 2015
Variable Interest Entity Reporting Entity Involvement Maximum Loss Exposure [Abstract]
Contract land deposits		$ 416,313	$ 385,534
Loss reserve on contract land deposits		(38,817)	(42,239)
Contract land deposits, net		377,496	343,295
Contingent obligations in the form of letters of credit		2,310	3,302
Contingent specific performance obligations	[1]	1,505	1,505
Total risk of loss		$ 381,311	$ 348,102

[1] As of both September 30, 2016 and December 31, 2015, the Company was committed to purchase 10 finished lots under specific performance obligations.

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Variable Interest Entities - Total Risk of Loss Related to Contract Land Deposits (Parenthetical) (Detail) - Lot	Sep. 30, 2016	Dec. 31, 2015
Variable Interest Entity Reporting Entity Involvement Maximum Loss Exposure [Abstract]
Finished lots committed to purchase under specific performance obligations	10	10

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Joint Ventures - Additional Information (Detail) $ in Thousands	Sep. 30, 2016 USD ($) Lot JointVenture	Dec. 31, 2015 USD ($)
Joint Ventures [Line Items]
Aggregate investment | $	$ 51,500
Number of joint ventures | JointVenture	6
Expected production of finished lots | Lot	7,500
Total lots controlled by company under the joint venture | Lot	4,200
Total lots either under contract with unrelated parties or not under the current contract | Lot	3,300
Additional funding commitments in the aggregate | $	$ 6,200
Number of joint ventures with additional funding commitment | JointVenture	3
Number of joint ventures NVR is not primary beneficiary | JointVenture	5
Other Assets [Member]
Joint Ventures [Line Items]
Aggregate investment | $	$ 51,100	$ 59,800

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Joint Ventures - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Assets:
Cash	$ 262,428	$ 425,316	$ 387,462	$ 545,419
Land under development	62,327
Liabilities and equity:
Equity	1,299,139	1,239,165
Total liabilities and shareholders' equity	2,663,216	2,511,718
Consolidated Joint Venture
Assets:
Cash	1,210	990
Other assets	37	379
Land under development		380
Total assets	1,247	1,749
Liabilities and equity:
Accrued expenses	611	567
Equity	636	1,182
Total liabilities and shareholders' equity	$ 1,247	$ 1,749

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Land Under Development - Additional Information (Detail) $ in Thousands	6 Months Ended	9 Months Ended
	Jun. 30, 2016 USD ($) Lot	Sep. 30, 2016 USD ($) Lot Parcel	Feb. 29, 2016 USD ($)
Real Estate [Abstract]
Acquisition costs of land under development and finished lots			$ 150,000
Lots sold to unrelated party | Lot	56
Amount of lots sold to unrelated parties under contract	$ 16,800
Number of raw parcels of land owned | Parcel		4
Carrying value of raw parcels of land		$ 62,327
Number of finished lots expected to be developed from raw parcels of land | Lot		800
Aggregate additional funding commitments related to raw land property under joint development		$ 13,700
Expected development credits that will offset the aggregate additional funding commitments related to raw land property development		$ 7,300

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Capitalized Interest - Summary of Interest Costs Incurred, Capitalized, Expensed and Charged to Cost of Sales (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Interest Costs Incurred Capitalized [Abstract]
Interest capitalized, beginning of period	$ 4,576	$ 4,332	$ 4,434	$ 4,072
Interest incurred	6,562	6,317	19,347	18,842
Interest expense	(5,624)	(6,081)	(15,526)	(17,955)
Interest charged to cost of sales	(600)	(288)	(3,341)	(679)
Interest capitalized, end of period	$ 4,914	$ 4,280	$ 4,914	$ 4,280

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Earnings Per Share - Weighted Average Shares and Share Equivalents Used to Calculate Basic and Diluted Earnings Per Share (Detail) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Weighted average number of shares outstanding used to calculate basic EPS	3,858	4,050	3,881	4,058
Dilutive securities:
Stock options and restricted share units	267	246	261	210
Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS	4,125	4,296	4,142	4,268

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Earnings Per Share - Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Anti-dilutive securities	88	28	89	37

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Excess Reorganization Value, Goodwill and Other Intangibles - Additional Information (Detail) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2016	Mar. 31, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	$ 441,000			$ 441,000
Finite-lived intangible assets	2,504,000			$ 2,504,000
Weighted average life of finite-lived intangible assets				3 years
Finite-lived intangible assets, accumulated amortization	6,274,000			$ 6,274,000
Amortization expense	$ 346,000		$ 346,000	$ 1,037,000	$ 1,037,000
Impairment of excess reorganization value and goodwill		$ 0

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Shareholders' Equity - Summary of Changes in Shareholders' Equity (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			$ 1,239,165
Net income	$ 117,392	$ 116,470	274,371	$ 248,923
Purchase of common stock for treasury			(291,743)
Equity-based compensation			32,459
Excess tax benefit from equity benefit plan activity			10,949
Proceeds from stock options exercised			33,938
Ending Balance	1,299,139		1,299,139
Common Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			206
Ending Balance	206		206
Additional Paid-In-Capital [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			1,447,795
Equity-based compensation			32,459
Excess tax benefit from equity benefit plan activity			10,949
Proceeds from stock options exercised			33,938
Treasury stock issued upon option exercise and restricted share vesting			(25,371)
Ending Balance	1,499,770		1,499,770
Retained Earnings [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			5,270,114
Net income			274,371
Ending Balance	5,544,485		5,544,485
Treasury Stock [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			(5,478,950)
Purchase of common stock for treasury			(291,743)
Treasury stock issued upon option exercise and restricted share vesting			25,371
Ending Balance	(5,745,322)		(5,745,322)
Deferred Compensation Trust [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			(17,333)
Deferred compensation activity			(34)
Ending Balance	(17,367)		(17,367)
Deferred Compensation Liability [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance			17,333
Deferred compensation activity			34
Ending Balance	$ 17,367		$ 17,367

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Shareholders' Equity - Additional Information (Detail) shares in Thousands	9 Months Ended
	Sep. 30, 2016 shares
Equity [Abstract]
Common stock repurchased	178
Reissued shares during the period, shares	77

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Product Warranties - Summary of Changes in Product Warranties Reserve (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Movement In Standard And Extended Product Warranty Increase Decrease Roll Forward
Warranty reserve, beginning of period	$ 87,953	$ 85,874	$ 87,407	$ 94,060
Provision	11,622	12,674	33,331	32,899
Payments	(11,551)	(12,617)	(32,714)	(41,028)
Warranty reserve, end of period	$ 88,024	$ 85,931	$ 88,024	$ 85,931

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Segment Disclosures - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2016 Segment
Homebuilding [Member]
Segment Reporting Information [Line Items]
Number of reportable segments	4
Mortgage Banking [Member]
Segment Reporting Information [Line Items]
Number of reportable segments	1

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Segment Disclosures - Revenues (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Revenue Reconciling Item [Line Items]
Total consolidated revenues	$ 1,537,569	$ 1,402,351	$ 4,069,778	$ 3,603,733
Homebuilding [Member]
Segment Reporting Revenue Reconciling Item [Line Items]
Revenues	1,507,451	1,374,467	3,990,696	3,537,116
Homebuilding [Member] | Mid Atlantic [Member]
Segment Reporting Revenue Reconciling Item [Line Items]
Revenues	873,490	792,532	2,279,207	2,094,820
Homebuilding [Member] | North East [Member]
Segment Reporting Revenue Reconciling Item [Line Items]
Revenues	123,754	120,143	329,674	317,510
Homebuilding [Member] | Mid East [Member]
Segment Reporting Revenue Reconciling Item [Line Items]
Revenues	327,387	299,157	877,921	705,670
Homebuilding [Member] | South East [Member]
Segment Reporting Revenue Reconciling Item [Line Items]
Revenues	182,820	162,635	503,894	419,116
Mortgage Banking [Member]
Segment Reporting Revenue Reconciling Item [Line Items]
Mortgage Banking	$ 30,118	$ 27,884	$ 79,082	$ 66,617

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Segment Disclosures - Profit before Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Profit before taxes	$ 185,003	$ 184,996	$ 433,035	$ 396,043
Equity-based compensation expense			(32,459)	(39,874)
Corporate interest expense	(5,624)	(6,081)	(15,526)	(17,955)
Homebuilding [Member]
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Profit before taxes	167,657	168,874	392,839	362,706
Corporate interest expense	(5,338)	(5,900)	(14,734)	(17,499)
Mortgage Banking [Member]
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Profit before taxes	17,346	16,122	40,196	33,337
Corporate interest expense	(286)	(181)	(792)	(456)
Operating Segments [Member]
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Profit before taxes	159,250	163,099	384,980	374,290
Operating Segments [Member] | Homebuilding [Member] | Mid Atlantic [Member]
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Profit before taxes	81,137	88,058	191,476	217,665
Operating Segments [Member] | Homebuilding [Member] | North East [Member]
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Profit before taxes	8,711	10,745	18,354	29,359
Operating Segments [Member] | Homebuilding [Member] | Mid East [Member]
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Profit before taxes	34,699	29,958	87,488	52,607
Operating Segments [Member] | Homebuilding [Member] | South East [Member]
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Profit before taxes	16,548	17,372	45,159	38,812
Operating Segments [Member] | Mortgage Banking [Member]
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Profit before taxes	18,155	16,966	42,503	35,847
Reconciling Items [Member]
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Profit before taxes	25,753	21,897	48,055	21,753
Contract land deposit reserve adjustment	785	4,705	3,421	11,511
Equity-based compensation expense	(11,081)	(13,571)	(32,459)	(39,874)
Corporate capital allocation	50,032	45,690	140,606	124,033
Unallocated corporate overhead	(18,459)	(18,055)	(74,485)	(67,803)
Consolidation adjustments and other	9,798	9,147	25,660	11,477
Corporate interest expense	(5,322)	(6,019)	(14,688)	(17,591)
Reconciling Items [Member] | Homebuilding [Member] | Mid Atlantic [Member]
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Corporate capital allocation	31,960	28,743	87,911	78,412
Reconciling Items [Member] | Homebuilding [Member] | North East [Member]
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Corporate capital allocation	4,572	4,451	13,972	11,566
Reconciling Items [Member] | Homebuilding [Member] | Mid East [Member]
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Corporate capital allocation	7,366	7,472	21,523	20,079
Reconciling Items [Member] | Homebuilding [Member] | South East [Member]
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items]
Corporate capital allocation	$ 6,134	$ 5,024	$ 17,200	$ 13,976

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Segment Disclosures - Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Segment Reporting Asset Reconciling Item [Line Items]
Assets	$ 2,663,216	$ 2,511,718
Cash and cash equivalents	262,428	425,316	$ 387,462	$ 545,419
Contract land deposit reserve	(38,817)	(42,239)
Homebuilding [Member]
Segment Reporting Asset Reconciling Item [Line Items]
Assets	2,329,213	2,132,168
Consolidated variable interest entity	1,247	1,749
Cash and cash equivalents	249,728	397,522
Intangible assets and goodwill	2,945	3,982
Mortgage Banking [Member]
Segment Reporting Asset Reconciling Item [Line Items]
Assets	334,003	379,550
Cash and cash equivalents	11,490	26,804
Operating Segments [Member]
Segment Reporting Asset Reconciling Item [Line Items]
Assets	2,178,761	1,895,779
Operating Segments [Member] | Homebuilding [Member] | Mid Atlantic [Member]
Segment Reporting Asset Reconciling Item [Line Items]
Assets	1,223,426	994,804
Operating Segments [Member] | Homebuilding [Member] | North East [Member]
Segment Reporting Asset Reconciling Item [Line Items]
Assets	145,191	133,106
Operating Segments [Member] | Homebuilding [Member] | Mid East [Member]
Segment Reporting Asset Reconciling Item [Line Items]
Assets	253,806	220,094
Operating Segments [Member] | Homebuilding [Member] | South East [Member]
Segment Reporting Asset Reconciling Item [Line Items]
Assets	229,682	175,572
Operating Segments [Member] | Mortgage Banking [Member]
Segment Reporting Asset Reconciling Item [Line Items]
Assets	326,656	372,203
Reconciling Items [Member]
Segment Reporting Asset Reconciling Item [Line Items]
Assets	484,455	615,939
Consolidated variable interest entity	1,247	1,749
Cash and cash equivalents	249,728	397,522
Deferred taxes	171,941	161,805
Intangible assets and goodwill	51,872	52,909
Contract land deposit reserve	(38,817)	(42,239)
Consolidation adjustments and other	$ 48,484	$ 44,193

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Segment Disclosures - Corporate Capital Allocation Charge (Detail) - Reconciling Items [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Other Significant Reconciling Item [Line Items]
Corporate capital allocation charge	$ 50,032	$ 45,690	$ 140,606	$ 124,033
Homebuilding [Member] | Mid Atlantic [Member]
Segment Reporting Other Significant Reconciling Item [Line Items]
Corporate capital allocation charge	31,960	28,743	87,911	78,412
Homebuilding [Member] | North East [Member]
Segment Reporting Other Significant Reconciling Item [Line Items]
Corporate capital allocation charge	4,572	4,451	13,972	11,566
Homebuilding [Member] | Mid East [Member]
Segment Reporting Other Significant Reconciling Item [Line Items]
Corporate capital allocation charge	7,366	7,472	21,523	20,079
Homebuilding [Member] | South East [Member]
Segment Reporting Other Significant Reconciling Item [Line Items]
Corporate capital allocation charge	$ 6,134	$ 5,024	$ 17,200	$ 13,976

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Fair Value - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Fair Value Measurement Gain/(Loss)			$ 6,507
Homebuilding [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes carrying value	$ 596,303		596,303		$ 595,847
Homebuilding [Member] | Senior Notes due 2022 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes carrying value	596,303		596,303
Homebuilding [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Senior Notes due 2022 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes fair value	633,000		633,000
Mortgage Banking [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of mortgage loans held for sale	291,303		291,303		$ 319,553
Mortgage Banking [Member] | Level 2 [Member] | Not Designated as Hedging Instrument [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value adjustment income (expense)	(758)	$ 3,429	(826)	$ 5,040
Mortgage Banking [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Rate Lock Commitments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional amount of contractual commitments	$ 553,600		$ 553,600
Average basis points of loan amount	0.95%		0.95%
Fallout rate of measuring fair value of rate lock commitments	13.00%		13.00%
Total Fair Value Measurement Gain/(Loss)			$ 4,877
Mortgage Banking [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Forward Sales Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional amount of contractual commitments	$ 757,756		757,756
Total Fair Value Measurement Gain/(Loss)			(1,130)
Mortgage Banking [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgages Held for Sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional amount of contractual commitments	288,543		288,543
Fair value of mortgage loans held for sale	$ 291,303		291,303
Total Fair Value Measurement Gain/(Loss)			$ 2,760

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Fair Value - Undesignated Derivative Instruments (Detail) - Mortgage Banking [Member] - Level 2 [Member] - Fair Value, Measurements, Recurring [Member] $ in Thousands	Sep. 30, 2016 USD ($)
Rate Lock Commitments [Member]
Derivatives Fair Value [Line Items]
Gross assets	$ 6,256
Gross liabilities	1,379
Net rate lock commitments	4,877
Forward Sales Contracts [Member]
Derivatives Fair Value [Line Items]
Gross assets	174
Gross liabilities	1,304
Net forward sales contracts	$ 1,130

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Fair Value - Fair Value Measurement (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2016 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assumed Gain/(Loss) From Loan Sale	$ (789)
Interest Rate Movement Effect	1,105
Servicing Rights Value	7,321
Security Price Change	(1,130)
Total Fair Value Measurement Gain/(Loss)	6,507
Mortgage Banking [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Rate Lock Commitments [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional or Principal Amount	553,600
Assumed Gain/(Loss) From Loan Sale	(738)
Interest Rate Movement Effect	1,024
Servicing Rights Value	4,591
Total Fair Value Measurement Gain/(Loss)	4,877
Mortgage Banking [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Forward Sales Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional or Principal Amount	757,756
Security Price Change	(1,130)
Total Fair Value Measurement Gain/(Loss)	(1,130)
Mortgage Banking [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgages Held for Sale [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notional or Principal Amount	288,543
Assumed Gain/(Loss) From Loan Sale	(51)
Interest Rate Movement Effect	81
Servicing Rights Value	2,730
Total Fair Value Measurement Gain/(Loss)	$ 2,760

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Debt - Additional Information (Detail) - USD ($)		9 Months Ended
	Jul. 15, 2016	Sep. 30, 2016	Dec. 31, 2015
Senior Notes due 2022 [Member]
Debt Instrument [Line Items]
Senior notes principal amount		$ 600,000,000
Senior notes effective interest rate		3.97%
Senior notes maturity date		Sep. 15, 2022
Senior notes interest rate		3.95%
Frequency of senior notes payment		semi-annually in arrears on March 15 and September 15
Debt issuance cost		$ 3,031,000	$ 3,413,000
Credit Agreement [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maximum loan borrowing capacity	$ 200,000,000
Increase in commitment available	$ 300,000,000
Expiration date	Jul. 15, 2021
Debt outstanding		0
Credit Agreement [Member] | Revolving Credit Facility [Member] | Sublimit for Issuance of Letters of Credit [Member]
Debt Instrument [Line Items]
Maximum loan borrowing capacity	$ 100,000,000
Letters of credit outstanding		8,200,000
Credit Agreement [Member] | Revolving Credit Facility [Member] | Sublimit for Swing Line Commitment [Member]
Debt Instrument [Line Items]
Maximum loan borrowing capacity	$ 25,000,000
Repurchase Agreement [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maximum loan borrowing capacity		150,000,000
Increase in commitment available		$ 50,000,000
Expiration date		Jul. 26, 2017
Debt outstanding		$ 0
Borrowing base limitations		$ 0