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.

In January 2017, the Company purchased a raw land parcel for approximately $14,400. The parcel is expected to produce approximately 90 lots.

As of June 30, 2017, NVR directly owned a total of four separate raw land parcels with a carrying value of $46,685 that are expected to produce approximately 550 finished lots. The Company also has additional funding commitments of approximately $10,000 under a joint development agreement related to one parcel, a portion of which the Company expects will be offset by development credits of approximately $5,400.

None of the raw parcels had any indicators of impairment as of June 30, 2017. Based on market conditions, NVR may on a limited basis continue to directly acquire additional raw parcels to develop into finished lots.