Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Provision for Income Taxes

The provision for income taxes consists of the following:

	Year Ended December 31,
		2016			2015		2014
Current:
Federal	$	209,454		$	180,895	$	148,221
State		38,095			36,142		28,881
Deferred:
Federal		(9,230	)		2,681		(4,451	)
State		(1,884	)		567		(735	)
	$	236,435		$	220,285	$	171,916

Income Tax Benefits in Shareholders' Equity

In addition to amounts applicable to income before taxes, the following income tax benefits were recorded in shareholders’ equity:

	Year Ended December 31,
	2016		2015		2014
Income tax benefits arising from compensation expense for    tax purposes in excess of amounts recognized for financial    statement purposes	$	13,661	$	23,311	$	9,437

Deferred Income Taxes on Consolidated Balance Sheets

Deferred income taxes on NVR’s consolidated balance sheets were comprised of the following:

	December 31,
	2016		2015
Deferred tax assets:
Other accrued expenses and contract land deposit reserve	$	76,498	$	77,781
Deferred compensation		7,075		7,280
Equity-based compensation expense		55,077		45,361
Inventory		13,514		12,722
Unrecognized tax benefit		23,954		24,740
Other		10,106		9,391
Total deferred tax assets		186,224		177,275
Less: deferred tax liabilities		5,414		6,489
Net deferred tax position	$	180,810	$	170,786

Income Tax Expense Reconciliation

A reconciliation of income tax expense in the accompanying consolidated statements of income to the amount computed by applying the statutory federal income tax rate of 35% to income before taxes is as follows:

	Year Ended December 31,
	2016			2015			2014
Income taxes computed at the federal statutory rate	$	231,595		$	211,124		$	158,741
State income taxes, net of federal income tax benefit		23,738			23,919			18,800
Other, net (1)		(18,898	)		(14,758	)		(5,625	)
	$	236,435		$	220,285		$	171,916

(1) Primarily attributable to tax benefits from the domestic production activities deduction.

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Year Ended December 31,
	2016			2015
Balance at beginning of year	$	46,591		$	46,004
Additions based on tax positions related to the current year		4,440			3,897
Reductions for tax positions of prior years		(4,921	)		(3,310	)
Settlements		—			—
Balance at end of year	$	46,110		$	46,591