Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-12378 | |
Entity Registrant Name | NVR, Inc. | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 54-1394360 | |
Entity Address, Address Line One | 11700 Plaza America Drive | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Reston | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 20190 | |
City Area Code | 703 | |
Local Phone Number | 956-4000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | NVR | |
Security Exchange Name | NYSE | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,636,606 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000906163 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Contract land deposits, net | $ 396,903 | $ 387,628 |
Total assets | 5,820,808 | 5,777,141 |
Inventory: | ||
Land under development | 63,153 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Total liabilities | 2,774,301 | 2,674,067 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common stock, $0.01 par value; 60,000,000 shares authorized; 20,555,330 shares issued as of both March 31, 2021 and December 31, 2020 | 206 | 206 |
Additional paid-in capital | 2,272,006 | 2,214,426 |
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of March 31, 2021 and December 31, 2020 | (16,710) | (16,710) |
Deferred compensation liability | 16,710 | 16,710 |
Retained earnings | 9,059,882 | 8,811,120 |
Less treasury stock at cost – 16,915,721 and 16,859,753 shares as of March 31, 2021 and December 31, 2020, respectively | (8,285,587) | (7,922,678) |
Total shareholders' equity | 3,046,507 | 3,103,074 |
Total liabilities and shareholders' equity | 5,820,808 | 5,777,141 |
Mortgage Banking | ||
ASSETS | ||
Cash and cash equivalents | 21,061 | 63,547 |
Restricted cash | 3,867 | 2,334 |
Mortgage loans held for sale, net | 334,782 | 449,760 |
Property, plant and equipment, net | 4,460 | 4,544 |
Operating lease right-of-use assets | 12,087 | 12,439 |
Goodwill | 7,347 | 7,347 |
Other assets | 31,585 | 22,654 |
Total assets | 415,189 | 562,625 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Operating lease liabilities | 12,972 | 13,299 |
Accounts payable and other liabilities | 53,335 | 62,720 |
Total liabilities | 66,307 | 76,019 |
Home Building Segment | ||
ASSETS | ||
Cash and cash equivalents | 2,753,123 | 2,714,720 |
Restricted cash | 36,193 | 28,912 |
Receivables | 22,059 | 18,299 |
Contract land deposits, net | 396,903 | 387,628 |
Property, plant and equipment, net | 55,720 | 57,786 |
Operating lease right-of-use assets | 50,770 | 53,110 |
Goodwill | 41,580 | 41,580 |
Other assets | 219,479 | 203,399 |
Total assets | 5,405,619 | 5,214,516 |
Inventory: | ||
Lots and housing units, covered under sales agreements with customers | 1,623,941 | 1,484,936 |
Unsold lots and housing units | 116,141 | 123,197 |
Land under development | 63,153 | 62,790 |
Building materials and other | 26,557 | 38,159 |
Total Inventory | 1,829,792 | 1,709,082 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Accounts payable | 360,881 | 339,867 |
Accrued expenses and other liabilities | 458,849 | 440,671 |
Customer deposits | 314,453 | 240,758 |
Operating lease liabilities | 56,697 | 59,357 |
Senior notes | 1,517,114 | 1,517,395 |
Total liabilities | $ 2,707,994 | $ 2,598,048 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, shares issued (in shares) | 20,555,330 | 20,555,330 |
Deferred compensation trust (in shares) | 106,697 | 106,697 |
Treasury stock (in shares) | 16,915,721 | 16,859,753 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues | $ 2,041,446 | $ 1,582,528 |
Interest expense | (13,397) | (6,486) |
Income before taxes | 312,006 | 161,375 |
Income tax benefit (expense) | (63,244) | 14,328 |
Net income | $ 248,762 | $ 175,703 |
Basic earnings per share (USD per share) | $ 67.72 | $ 47.97 |
Diluted earnings per share (USD per share) | $ 63.21 | $ 44.96 |
Basic weighted average shares outstanding (in shares) | 3,673 | 3,663 |
Diluted weighted average shares outstanding (in shares) | 3,935 | 3,908 |
Home Building Segment | ||
Revenues | $ 1,963,711 | $ 1,555,707 |
Other income | 1,586 | 5,336 |
Cost of Goods and Services Sold | 1,577,453 | 1,294,743 |
Selling, general and administrative | (121,419) | (110,167) |
Operating income | 266,425 | 156,133 |
Interest expense | (13,006) | (6,214) |
Income before taxes | 253,419 | 149,919 |
Mortgage Banking | ||
Revenues | 77,735 | 26,821 |
Interest income | 2,032 | 2,469 |
Other income | 867 | 649 |
General and administrative | (21,656) | (18,211) |
Interest expense | (391) | (272) |
Income before taxes | $ 58,587 | $ 11,456 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 248,762 | $ 175,703 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 5,203 | 5,622 |
Equity-based compensation expense | 14,471 | 7,492 |
Contract land deposit and other (recoveries) impairments, net | (6,183) | 36,336 |
Gain on sale of loans, net | (67,550) | (18,400) |
Mortgage loans closed | (1,413,988) | (1,133,283) |
Mortgage loans sold and principal payments on mortgage loans held for sale | 1,583,701 | 1,228,025 |
Net change in assets and liabilities: | ||
Increase in inventory | (120,710) | (168,352) |
(Increase) decrease in contract land deposits | (3,092) | 8,259 |
Increase in receivables | (4,243) | (33,190) |
Increase (decrease) in accounts payable and accrued expenses | 33,618 | (39,438) |
Increase in customer deposits | 73,695 | 15,275 |
Other, net | (15,426) | (15,608) |
Net Cash Provided by (Used in) Operating Activities | 328,258 | 68,441 |
Cash flows from investing activities: | ||
Investments in and advances to unconsolidated joint ventures | (659) | 0 |
Purchase of property, plant and equipment | (3,104) | (3,510) |
Proceeds from the sale of property, plant and equipment | 369 | 252 |
Net Cash Provided by (Used in) Investing Activities | (3,394) | (3,258) |
Cash flows from financing activities: | ||
Purchase of treasury stock | (377,425) | (216,582) |
Principal payments on finance lease liabilities | (329) | (200) |
Proceeds from the exercise of stock options | 57,625 | 109,062 |
Net Cash Provided by (Used in) Financing Activities | (320,129) | (107,720) |
Net increase (decrease) in cash, restricted cash, and cash equivalents | 4,735 | (42,537) |
Cash, restricted cash, and cash equivalents, beginning of the period | 2,809,782 | 1,160,804 |
Cash, restricted cash, and cash equivalents, end of the period | 2,814,517 | 1,118,267 |
Supplemental disclosures of cash flow information: | ||
Interest paid during the period, net of interest capitalized | 12,614 | 12,174 |
Income taxes paid during the period, net of refunds | $ 2,635 | $ 2,438 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesWe are involved in various 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. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying unaudited, condensed consolidated financial statements include the accounts of NVR, Inc. (“NVR”, the “Company”, "we", "us" or "our") 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 our Annual Report on Form 10-K for the year ended December 31, 2020. 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 months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. 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. For the three months ended March 31, 2021 and 2020, comprehensive income equaled net income; therefore, a separate statement of comprehensive income is not included in the accompanying condensed consolidated financial statements. Cash and Cash Equivalents The beginning-of-period and end-of-period cash, restricted cash, and cash equivalent balances presented on the accompanying condensed consolidated statements of cash flows includes cash related to a consolidated joint venture which is included in homebuilding "Other assets" on the accompanying condensed consolidated balance sheets. The cash related to this consolidated joint venture as of March 31, 2021 and December 31, 2020 was $273 and $269, respectively, and as of March 31, 2020 and December 31, 2019 was $274 and $281, respectively. Revenue Recognition Homebuilding revenue is recognized on the settlement date at the contract sales price, when control is transferred to our customers. Our contract liabilities, which consist of deposits received from customers on homes not settled, were $314,453 and $240,758 as of March 31, 2021 and December 31, 2020, respectively. We expect that substantially all of the customer deposits held at December 31, 2020 will be recognized in revenue in 2021. Our prepaid sales compensation totaled approximately $25,600 and $22,500, as of March 31, 2021 and December 31, 2020, respectively. Prepaid sales compensation is included in homebuilding “Other assets” on the accompanying condensed consolidated balance sheets. |
Variable Interest Entities ("VI
Variable Interest Entities ("VIEs") | 3 Months Ended |
Mar. 31, 2021 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure [Abstract] | |
Variable Interest Entities ("VIEs") | Variable Interest Entities ("VIEs") Fixed Price Finished Lot Purchase Agreements (“LPAs”) We generally do not engage in the land development business. Instead, we typically acquire finished building lots at market prices from various development entities under LPAs. The LPAs require deposits that may be forfeited if we fail to perform under the LPAs. The deposits required under the LPAs 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. The deposit placed by us pursuant to the LPA is deemed to be a variable interest in the respective development entities. Those development entities are deemed to be VIEs. Therefore, the development entities with which we enter into LPAs, including the joint venture limited liability corporations discussed below, are evaluated for possible consolidation by us. We have concluded that we are not the primary beneficiary of the development entities with which we enter into LPAs, and therefore, we do not consolidate any of these VIEs. As of March 31, 2021, we controlled approximately 106,100 lots under LPAs with third parties through deposits in cash and letters of credit totaling approximately $436,000 and $7,300, respectively. Our sole legal obligation and economic loss for failure to perform under these LPAs is limited to the amount of the deposit pursuant to the liquidated damage provisions contained in the LPAs. For the three month period ended March 31, 2021, we recorded a net reversal of approximately $6,200 related to previously impaired lot deposits as market conditions have improved. For the three months ended March 31, 2020, we recorded pre-tax charges of approximately $36,400 related to impairments of lot deposits due to deteriorating market conditions in certain of our markets related to the onset of the COVID-19 pandemic. Our contract land deposit is shown net of a $46,008 and $52,205 impairment reserve at March 31, 2021 and December 31, 2020, respectively. In addition, we have certain properties under contract with land owners that are expected to yield approximately 9,000 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 $7,000 and $100, respectively, as of March 31, 2021, of which approximately $2,000 is refundable if certain contractual conditions are not met. We generally expect to assign the raw land contracts to a land developer and simultaneously enter into an LPA with the assignee if the project is determined to be feasible. Our total risk of loss related to contract land deposits is limited to the amount of the deposits pursuant to the liquidated damages provision of the LPAs. As of March 31, 2021 and December 31, 2020, our total risk of loss was as follows: March 31, 2021 December 31, 2020 Contract land deposits $ 442,911 $ 439,833 Loss reserve on contract land deposits (46,008) (52,205) Contract land deposits, net 396,903 387,628 Contingent obligations in the form of letters of credit 7,414 8,249 Total risk of loss $ 404,317 $ 395,877 |
Joint Ventures Joint Ventures
Joint Ventures Joint Ventures | 3 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Ventures | Joint Ventures On a limited basis, we obtain finished lots using joint venture limited liability corporations (“JVs”). The JVs are typically structured such that we are a non-controlling member and are at risk only for the amount we have invested, or have committed to invest, in addition to any deposits placed under LPAs with the joint venture. We are not a borrower, guarantor or obligor on any debt of the JVs, as applicable. We enter into LPAs to purchase lots from these JVs, and as a result have a variable interest in these JVs. At March 31, 2021, we had an aggregate investment totaling approximately $25,900 in four JVs that are expected to produce approximately 5,050 finished lots, of which approximately 2,100 lots were controlled by us and the remaining approximately 2,950 lots were either under contract with unrelated parties or not currently under contract. We had additional funding commitments totaling approximately $3,100 to one of the JVs at March 31, 2021. We have determined that we are not the primary beneficiary of three of the JVs because we either share power with the other JV partner or the other JV partner has the controlling financial interest. The aggregate investment in unconsolidated JVs was approximately $25,900 and $23,600 at March 31, 2021 and December 31, 2020, respectively, and is reported in the “Other assets” line item on the accompanying condensed consolidated balance sheets. None of the unconsolidated JVs had any indicators of impairment as of March 31, 2021. For the remaining JV, we have concluded that we are the primary beneficiary because we have the controlling financial interest in the JV. As of December 31, 2019, all activities under the consolidated JV had been completed. As of March 31, 2021, we had no investment remaining in the JV and the JV had remaining balances of $273 in cash and $252 in accrued expenses, which are included in homebuilding "Other assets" and "Accrued expenses and other liabilities," respectively, in the accompanying condensed consolidated balance sheets. We recognize income from the JVs as a reduction to the lot cost of the lots purchased from the respective JVs when the homes are settled, based on the expected total profitability and the total number of lots expected to be produced by the respective JVs. We classify distributions received from unconsolidated JVs using the cumulative earnings approach. As a result, distributions received up to the amount of cumulative earnings recognized by us are reported as distributions of earnings and those in excess of that amount are reported as a distribution of capital. These distributions are classified within the accompanying condensed consolidated statements of cash flows as cash flows from operating activities and investing activities, respectively. |
Land Under Development
Land Under Development | 3 Months Ended |
Mar. 31, 2021 | |
Real Estate [Abstract] | |
Land Under Development | Land Under DevelopmentOn a limited basis, we directly acquire 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 March 31, 2021, we directly owned a total of three separate raw land parcels with a carrying value of $63,153 that are expected to produce approximately 500 finished lots. In April 2021, we sold one of the land parcels to a developer for approximately $45,750, which approximated our carrying value of the property as of the sale date. In conjunction with the sale, we entered into an LPA with the developer for the option to purchase the finished lots expected to be developed from the parcel. We have additional funding commitments of approximately $5,100 under a joint development agreement related to one parcel, a portion of which we expect will be offset by development credits of approximately $2,800. None of the raw parcels had any indicators of impairment as of March 31, 2021 |
Capitalized Interest
Capitalized Interest | 3 Months Ended |
Mar. 31, 2021 | |
Capitalized Interest Costs, Including Allowance for Funds Used During Construction [Abstract] | |
Capitalized Interest | Capitalized Interest We capitalize interest costs to land under development during the active development of finished lots. In addition, we capitalize interest costs on our JV investments while the investments are considered qualified assets pursuant to ASC Topic 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 our 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. The following table reflects the changes in our capitalized interest during the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Interest capitalized, beginning of period $ 1,025 $ 3,499 Interest incurred 13,422 6,635 Interest charged to interest expense (13,397) (6,486) Interest charged to cost of sales (221) (614) Interest capitalized, end of period $ 829 $ 3,034 |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following weighted average shares and share equivalents were used to calculate basic and diluted earnings per share ("EPS") for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Weighted average number of shares outstanding used to calculate basic EPS 3,673 3,663 Dilutive securities: Stock options and restricted share units 262 245 Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS 3,935 3,908 The following non-qualified stock options ("Options") issued under equity incentive plans were outstanding during the three months ended March 31, 2021 and 2020, but were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. Three Months Ended March 31, 2021 2020 Anti-dilutive securities 23 26 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity A summary of changes in shareholders’ equity for the three months ended March 31, 2021 is presented below: Common Additional Retained Treasury Deferred Deferred Total Balance, December 31, 2020 $ 206 $ 2,214,426 $ 8,811,120 $ (7,922,678) $ (16,710) $ 16,710 $ 3,103,074 Net income — — 248,762 — — — 248,762 Purchase of common stock for treasury — — — (377,425) — — (377,425) Equity-based compensation — 14,471 — — — — 14,471 Proceeds from Options exercised — 57,625 — — — — 57,625 Treasury stock issued upon option exercise and restricted share vesting — (14,516) — 14,516 — — — Balance, March 31, 2021 $ 206 $ 2,272,006 $ 9,059,882 $ (8,285,587) $ (16,710) $ 16,710 $ 3,046,507 A summary of changes in shareholders’ equity for the three months ended March 31, 2020 is presented below: Common Additional Retained Treasury Deferred Deferred Total Balance, December 31, 2019 $ 206 $ 2,055,407 $ 7,909,872 $ (7,624,241) $ (16,912) $ 16,912 $ 2,341,244 Net income — — 175,703 — — — 175,703 Purchase of common stock for treasury — — — (216,582) — — (216,582) Equity-based compensation — 7,492 — — — — 7,492 Proceeds from Options exercised — 109,062 — — — — 109,062 Treasury stock issued upon option exercise and restricted share vesting — (44,646) — 44,646 — — — Balance, March 31, 2020 $ 206 $ 2,127,315 $ 8,085,575 $ (7,796,177) $ (16,912) $ 16,912 $ 2,416,919 We repurchased approximately 87 and 58 shares of our common stock during the three months ended March 31, 2021 and 2020, respectively. We settle Option exercises and vesting of RSUs by issuing shares of treasury stock. Approximately 31 and 99 shares were issued from the treasury account during the three months ended March 31, 2021 and 2020, respectively, in settlement of Option exercises and vesting of RSUs. Shares are relieved from the treasury account based on the weighted average cost basis of treasury shares. |
Product Warranties
Product Warranties | 3 Months Ended |
Mar. 31, 2021 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | Product Warranties We establish 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 our homebuilding business. Liability estimates are determined based on management’s judgment, considering such factors as historical experience, the estimated 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 our general counsel and outside counsel retained to handle specific product liability cases. The following table reflects the changes in our Warranty Reserve during the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Warranty reserve, beginning of period $ 119,638 $ 108,053 Provision 22,329 12,421 Payments (17,131) (13,442) Warranty reserve, end of period $ 124,836 $ 107,032 |
Segment Disclosures
Segment Disclosures | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Disclosures | Segment Disclosures We disclose four homebuilding reportable segments that aggregate geographically our homebuilding operating segments, and our mortgage banking operations presented as one 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 our cost of capital. Assets not allocated to the operating segments are not included in either the operating segment’s corporate capital allocation charge or the CODM’s evaluation of the operating segment’s performance. We record 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 generally charged to the operating segment upon the termination of an LPA with the developer, or the restructuring of an LPA 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. Our overhead functions such as accounting, treasury and human resources are centrally performed and these costs are not allocated to our 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 our operating segments. External corporate interest expense primarily consists of interest charges on our 3.95% Senior Notes due 2022 and 3.00% Senior Notes due 2030 (the “Senior Notes”), which are not charged to the operating segments because the charges are included in the corporate capital allocation discussed above. The f ollowing tables present segment revenues, profit and assets with reconciliations to the amounts reported for the consolidated enterprise, where applicable: Three Months Ended March 31, 2021 2020 Revenues: Homebuilding Mid Atlantic $ 936,141 $ 774,058 Homebuilding North East 162,193 106,136 Homebuilding Mid East 424,952 320,695 Homebuilding South East 440,425 354,818 Mortgage Banking 77,735 26,821 Total consolidated revenues $ 2,041,446 $ 1,582,528 Three Months Ended March 31, 2021 2020 Income before taxes: Homebuilding Mid Atlantic $ 129,067 $ 81,673 Homebuilding North East 15,227 10,151 Homebuilding Mid East 48,941 31,164 Homebuilding South East 56,665 47,144 Mortgage Banking 59,562 11,879 Total segment profit before taxes 309,462 182,011 Reconciling items: Contract land deposit recoveries/(impairments) (1) 6,196 (35,615) Equity-based compensation expense (2) (14,471) (7,492) Corporate capital allocation (3) 61,551 56,650 Unallocated corporate overhead (39,717) (37,639) Consolidation adjustments and other 1,967 9,654 Corporate interest expense (12,982) (6,194) Reconciling items sub-total 2,544 (20,636) Consolidated income before taxes $ 312,006 $ 161,375 (1) This item represents changes to the contract land deposit impairment reserve, which are not allocated to the reportable segments. See further discussion of lot deposit impairment charges in Note 2. (2) The increase in equity-based compensation expense for the three-month period ended March 31, 2021 was primarily attributable to the reversal of approximately $7,200 in equity based compensation during the first quarter of 2020 related to stock option forfeitures. (3) 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 March 31, 2021 2020 Corporate capital allocation charge: Homebuilding Mid Atlantic $ 30,596 $ 29,755 Homebuilding North East 6,038 5,558 Homebuilding Mid East 10,624 9,363 Homebuilding South East 14,293 11,974 Total $ 61,551 $ 56,650 March 31, 2021 December 31, 2020 Assets: Homebuilding Mid Atlantic $ 1,171,850 $ 1,140,910 Homebuilding North East 228,644 202,591 Homebuilding Mid East 403,637 377,448 Homebuilding South East 521,124 494,295 Mortgage Banking 407,842 555,278 Total segment assets 2,733,097 2,770,522 Reconciling items: Cash and cash equivalents 2,753,123 2,714,720 Deferred taxes 134,930 132,980 Intangible assets and goodwill 49,640 49,678 Operating lease right-of-use assets 50,770 53,110 Finance lease right-of-use assets 15,419 15,772 Contract land deposit reserve (46,008) (52,205) Consolidation adjustments and other 129,837 92,564 Reconciling items sub-total 3,087,711 3,006,619 Consolidated assets $ 5,820,808 $ 5,777,141 |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 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 following table presents the estimated fair values and carrying values of our Senior Notes as of March 31, 2021 and December 31, 2020. The estimated fair value is based on recent market prices of similar transactions, which is classified as Level 2 within the fair value hierarchy. March 31, 2021 December 31, 2020 Estimated Fair Values: 3.95% Senior Notes due 2022 $ 620,400 $ 630,000 3.00% Senior Notes due 2030 922,500 982,620 Total $ 1,542,900 $ 1,612,620 Carrying Values: 3.95% Senior Notes due 2022 $ 599,082 $ 598,925 3.00% Senior Notes due 2030 918,032 918,470 Total $ 1,517,114 $ 1,517,395 Except as otherwise noted below, we believe that insignificant differences exist between the carrying value and the fair value of our financial instruments, which consist primarily of cash equivalents, due to their short term nature. Derivative Instruments and Mortgage Loans Held for Sale In the normal course of business, our wholly-owned mortgage subsidiary, NVR Mortgage Finance, Inc. (“NVRM”), enters into contractual commitments to extend credit to our 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 inherent in 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 March 31, 2021, there were rate lock commitments to extend credit to borrowers aggregating $1,239,365 and open forward delivery contracts aggregating $1,392,437, which hedge both the rate lock 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 is included in the fair value measurement and is based upon contractual terms with investors and varies depending on the loan type. NVRM assumes a 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 recorded at fair value when closed, and thereafter 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. As of March 31, 2021, the fair value of loans held for sale of $334,782 included on the accompanying condensed consolidated balance sheet has been decreased by $2,226 from the aggregate principal balance of $337,008. As of December 31, 2020, the fair value of loans held for sale of $449,760 were increased by $10,042 from the aggregate principal balance of $439,718. The fair value measurement of NVRM's undesignated derivative instruments was as follows: March 31, 2021 December 31, 2020 Rate lock commitments: Gross assets $ 15,877 $ 10,844 Gross liabilities 7,983 87 Net rate lock commitments $ 7,894 $ 10,757 Forward sales contracts: Gross assets $ 10,749 $ 1 Gross liabilities 286 5,217 Net forward sales contracts $ 10,463 $ (5,216) As of March 31, 2021, both the net rate lock commitments and the net forward sales contracts are reported in mortgage banking "Other assets" on the accompanying condensed consolidated balance sheets. As of December 31, 2020, the net rate lock commitments are reported in mortgage banking "Other assets" and the net forward sales contracts are reported in mortgage banking "Accrued expenses and other liabilities". The fair value measurement adjustment as of March 31, 2021 was as follows: Notional or Assumed Interest Servicing Security Total Fair Rate lock commitments $ 1,239,365 $ 6,787 $ (7,645) $ 8,752 $ — $ 7,894 Forward sales contracts $ 1,392,437 — — — 10,463 10,463 Mortgages held for sale $ 337,008 1,925 (7,262) 3,111 — (2,226) Total fair value measurement $ 8,712 $ (14,907) $ 11,863 $ 10,463 $ 16,131 The total fair value measurement adjustment as of December 31, 2020 was $15,583. NVRM recorded a fair value adjustment to income of $548 for the three months ended March 31, 2021. NVRM recorded a fair value adjustment to expense of $10,721 for the three months ended March 31, 2020. 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. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt As of March 31, 2021, we had the following debt instruments outstanding: 3.95% Senior Notes due 2022 ("2022 Senior Notes") The 2022 Senior Notes have a principal balance of $600,000. The 2022 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 2022 Senior Notes were issued at a discount to yield 3.97% and have been reflected net of the unamortized discount and unamortized debt issuance costs in the accompanying condensed consolidated balance sheet. 3.00% Senior Notes due 2030 ("2030 Senior Notes") The 2030 Senior Notes have an aggregate principal balance of $900,000 and mature on May 15, 2030. The 2030 Senior Notes bear interest at 3.00%, payable semi-annually in arrears on May 15 and November 15. The 2030 Senior Notes were issued in three separate issuances, $600,000 issued at a discount to yield 3.02%, and the two additional issuances totaling $300,000 issued at a premium to yield 2.00%. The 2030 Senior Notes have been reflected net of the unamortized discount or premium, as applicable, and the unamortized debt issuance costs in the accompanying condensed consolidated balance sheet. Credit Agreement We have an unsecured Credit Agreement (the “Credit Agreement”), which provides for aggregate revolving loan commitments of $300,000 (the “Facility”). 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 approximately $12,250 was outstanding at March 31, 2021. The Credit Agreement termination date is February 12, 2026. There was no debt outstanding under the Facility at March 31, 2021. Repurchase Agreement 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. Amounts outstanding under the Repurchase Agreement are collateralized by the Company’s mortgage loans held for sale. The Repurchase Agreement expires on July 21, 2021. At March 31, 2021, there were no borrowing base limitations reducing the amount available under the Repurchase Agreement. There was no debt outstanding under the Repurchase Agreement at March 31, 2021. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases We have operating leases for our corporate and division offices, production facilities, model homes, and certain office and production equipment. Additionally, we have finance leases for certain plant equipment and one of our production facilities which are recorded in homebuilding "Property, plant and equipment, net" and "Accrued expenses and other liabilities" on the accompanying condensed consolidated balance sheets. Our finance lease ROU assets and finance lease liabilities were $15,419 and $15,933, respectively, as of March 31, 2021, and $15,772 and $16,173, respectively, as of December 31, 2020. Our leases have remaining lease terms of up to 19.4 years, some of which include options to extend the leases for up to 20 years, and some of which include options to terminate the lease. We recognize operating lease expense on a straight-line basis over the lease term. We have elected to use the portfolio approach for certain equipment leases which have similar lease terms and payment schedules. Additionally, for certain equipment we account for the lease and non-lease components as a single lease component. Our sublease income is de minimis. We have certain leases, primarily the leases of model homes, which have initial lease terms of twelve months or less ("Short-term leases"). We elected to exclude these leases from the recognition requirements under Topic 842, and these leases have not been included in our recognized ROU assets and lease liabilities. The components of lease expense were as follows: Three Months Ended March 31, 2021 2020 Lease expense Operating lease expense $ 7,577 $ 7,911 Finance lease expense: Amortization of ROU assets 443 266 Interest on lease liabilities 110 49 Short-term lease expense 5,890 6,426 Total lease expense $ 14,020 $ 14,652 Other information related to leases was as follows: Three Months Ended March 31, 2021 2020 Supplemental Cash Flows Information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,810 $ 6,718 Operating cash flows from finance leases 110 49 Financing cash flows from finance leases 329 200 ROU assets obtained in exchange for lease obligations: Operating leases $ 3,013 $ 3,784 Finance leases $ 89 $ 440 March 31, 2021 December 31, 2020 Weighted-average remaining lease term (in years): Operating leases 4.6 4.7 Finance leases 12.3 12.5 Weighted-average discount rate: Operating leases 3.3 % 3.4 % Finance leases 2.8 % 2.8 % |
Leases | Leases We have operating leases for our corporate and division offices, production facilities, model homes, and certain office and production equipment. Additionally, we have finance leases for certain plant equipment and one of our production facilities which are recorded in homebuilding "Property, plant and equipment, net" and "Accrued expenses and other liabilities" on the accompanying condensed consolidated balance sheets. Our finance lease ROU assets and finance lease liabilities were $15,419 and $15,933, respectively, as of March 31, 2021, and $15,772 and $16,173, respectively, as of December 31, 2020. Our leases have remaining lease terms of up to 19.4 years, some of which include options to extend the leases for up to 20 years, and some of which include options to terminate the lease. We recognize operating lease expense on a straight-line basis over the lease term. We have elected to use the portfolio approach for certain equipment leases which have similar lease terms and payment schedules. Additionally, for certain equipment we account for the lease and non-lease components as a single lease component. Our sublease income is de minimis. We have certain leases, primarily the leases of model homes, which have initial lease terms of twelve months or less ("Short-term leases"). We elected to exclude these leases from the recognition requirements under Topic 842, and these leases have not been included in our recognized ROU assets and lease liabilities. The components of lease expense were as follows: Three Months Ended March 31, 2021 2020 Lease expense Operating lease expense $ 7,577 $ 7,911 Finance lease expense: Amortization of ROU assets 443 266 Interest on lease liabilities 110 49 Short-term lease expense 5,890 6,426 Total lease expense $ 14,020 $ 14,652 Other information related to leases was as follows: Three Months Ended March 31, 2021 2020 Supplemental Cash Flows Information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,810 $ 6,718 Operating cash flows from finance leases 110 49 Financing cash flows from finance leases 329 200 ROU assets obtained in exchange for lease obligations: Operating leases $ 3,013 $ 3,784 Finance leases $ 89 $ 440 March 31, 2021 December 31, 2020 Weighted-average remaining lease term (in years): Operating leases 4.6 4.7 Finance leases 12.3 12.5 Weighted-average discount rate: Operating leases 3.3 % 3.4 % Finance leases 2.8 % 2.8 % |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income TaxesOur effective tax rate for the three months ended March 31, 2021 was an expense of 20.3% compared to a benefit of 8.9% for the three months ended March 31, 2020. The increase in the effective tax rate quarter over quarter is primarily attributable to recognizing a lower income tax benefit related to excess tax benefits from stock option exercises in the first quarter of 2021. For the three months ended March 31, 2021 and March 31, 2020, we recognized $17,377 and $55,655, respectively, in such income tax benefits. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited, condensed consolidated financial statements include the accounts of NVR, Inc. (“NVR”, the “Company”, "we", "us" or "our") 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 our Annual Report on Form 10-K for the year ended December 31, 2020. 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 months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. |
Revenue from Contract with Customer | Revenue RecognitionHomebuilding revenue is recognized on the settlement date at the contract sales price, when control is transferred to our customers. |
Variable Interest Entities ("_2
Variable Interest Entities ("VIEs") (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure [Abstract] | |
Total Risk of Loss Related to Contract Land Deposits | Our total risk of loss related to contract land deposits is limited to the amount of the deposits pursuant to the liquidated damages provision of the LPAs. As of March 31, 2021 and December 31, 2020, our total risk of loss was as follows: March 31, 2021 December 31, 2020 Contract land deposits $ 442,911 $ 439,833 Loss reserve on contract land deposits (46,008) (52,205) Contract land deposits, net 396,903 387,628 Contingent obligations in the form of letters of credit 7,414 8,249 Total risk of loss $ 404,317 $ 395,877 |
Capitalized Interest (Tables)
Capitalized Interest (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Capitalized Interest Costs, Including Allowance for Funds Used During Construction [Abstract] | |
Summary of Interest Costs Incurred, Capitalized, Expensed and Charged to Cost of Sales | The following table reflects the changes in our capitalized interest during the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Interest capitalized, beginning of period $ 1,025 $ 3,499 Interest incurred 13,422 6,635 Interest charged to interest expense (13,397) (6,486) Interest charged to cost of sales (221) (614) Interest capitalized, end of period $ 829 $ 3,034 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 ("EPS") for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Weighted average number of shares outstanding used to calculate basic EPS 3,673 3,663 Dilutive securities: Stock options and restricted share units 262 245 Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS 3,935 3,908 |
Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following non-qualified stock options ("Options") issued under equity incentive plans were outstanding during the three months ended March 31, 2021 and 2020, but were not included in the computation of diluted earnings per share because the effect would have been anti-dilutive. Three Months Ended March 31, 2021 2020 Anti-dilutive securities 23 26 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity [Abstract] | ||
Summary of Changes in Shareholders' Equity | A summary of changes in shareholders’ equity for the three months ended March 31, 2021 is presented below: Common Additional Retained Treasury Deferred Deferred Total Balance, December 31, 2020 $ 206 $ 2,214,426 $ 8,811,120 $ (7,922,678) $ (16,710) $ 16,710 $ 3,103,074 Net income — — 248,762 — — — 248,762 Purchase of common stock for treasury — — — (377,425) — — (377,425) Equity-based compensation — 14,471 — — — — 14,471 Proceeds from Options exercised — 57,625 — — — — 57,625 Treasury stock issued upon option exercise and restricted share vesting — (14,516) — 14,516 — — — Balance, March 31, 2021 $ 206 $ 2,272,006 $ 9,059,882 $ (8,285,587) $ (16,710) $ 16,710 $ 3,046,507 | A summary of changes in shareholders’ equity for the three months ended March 31, 2020 is presented below: Common Additional Retained Treasury Deferred Deferred Total Balance, December 31, 2019 $ 206 $ 2,055,407 $ 7,909,872 $ (7,624,241) $ (16,912) $ 16,912 $ 2,341,244 Net income — — 175,703 — — — 175,703 Purchase of common stock for treasury — — — (216,582) — — (216,582) Equity-based compensation — 7,492 — — — — 7,492 Proceeds from Options exercised — 109,062 — — — — 109,062 Treasury stock issued upon option exercise and restricted share vesting — (44,646) — 44,646 — — — Balance, March 31, 2020 $ 206 $ 2,127,315 $ 8,085,575 $ (7,796,177) $ (16,912) $ 16,912 $ 2,416,919 |
Product Warranties (Tables)
Product Warranties (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Product Warranties Disclosures [Abstract] | |
Summary of Changes in Product Warranties Reserve | The following table reflects the changes in our Warranty Reserve during the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Warranty reserve, beginning of period $ 119,638 $ 108,053 Provision 22,329 12,421 Payments (17,131) (13,442) Warranty reserve, end of period $ 124,836 $ 107,032 |
Segment Disclosures (Tables)
Segment Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Revenues | The f ollowing tables present segment revenues, profit and assets with reconciliations to the amounts reported for the consolidated enterprise, where applicable: Three Months Ended March 31, 2021 2020 Revenues: Homebuilding Mid Atlantic $ 936,141 $ 774,058 Homebuilding North East 162,193 106,136 Homebuilding Mid East 424,952 320,695 Homebuilding South East 440,425 354,818 Mortgage Banking 77,735 26,821 Total consolidated revenues $ 2,041,446 $ 1,582,528 |
Profit before Taxes | Three Months Ended March 31, 2021 2020 Income before taxes: Homebuilding Mid Atlantic $ 129,067 $ 81,673 Homebuilding North East 15,227 10,151 Homebuilding Mid East 48,941 31,164 Homebuilding South East 56,665 47,144 Mortgage Banking 59,562 11,879 Total segment profit before taxes 309,462 182,011 Reconciling items: Contract land deposit recoveries/(impairments) (1) 6,196 (35,615) Equity-based compensation expense (2) (14,471) (7,492) Corporate capital allocation (3) 61,551 56,650 Unallocated corporate overhead (39,717) (37,639) Consolidation adjustments and other 1,967 9,654 Corporate interest expense (12,982) (6,194) Reconciling items sub-total 2,544 (20,636) Consolidated income before taxes $ 312,006 $ 161,375 (1) This item represents changes to the contract land deposit impairment reserve, which are not allocated to the reportable segments. See further discussion of lot deposit impairment charges in Note 2. (2) The increase in equity-based compensation expense for the three-month period ended March 31, 2021 was primarily attributable to the reversal of approximately $7,200 in equity based compensation during the first quarter of 2020 related to stock option forfeitures. (3) 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 March 31, 2021 2020 Corporate capital allocation charge: Homebuilding Mid Atlantic $ 30,596 $ 29,755 Homebuilding North East 6,038 5,558 Homebuilding Mid East 10,624 9,363 Homebuilding South East 14,293 11,974 Total $ 61,551 $ 56,650 |
Assets | March 31, 2021 December 31, 2020 Assets: Homebuilding Mid Atlantic $ 1,171,850 $ 1,140,910 Homebuilding North East 228,644 202,591 Homebuilding Mid East 403,637 377,448 Homebuilding South East 521,124 494,295 Mortgage Banking 407,842 555,278 Total segment assets 2,733,097 2,770,522 Reconciling items: Cash and cash equivalents 2,753,123 2,714,720 Deferred taxes 134,930 132,980 Intangible assets and goodwill 49,640 49,678 Operating lease right-of-use assets 50,770 53,110 Finance lease right-of-use assets 15,419 15,772 Contract land deposit reserve (46,008) (52,205) Consolidation adjustments and other 129,837 92,564 Reconciling items sub-total 3,087,711 3,006,619 Consolidated assets $ 5,820,808 $ 5,777,141 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Undesignated Derivative Instruments | The fair value measurement of NVRM's undesignated derivative instruments was as follows: March 31, 2021 December 31, 2020 Rate lock commitments: Gross assets $ 15,877 $ 10,844 Gross liabilities 7,983 87 Net rate lock commitments $ 7,894 $ 10,757 Forward sales contracts: Gross assets $ 10,749 $ 1 Gross liabilities 286 5,217 Net forward sales contracts $ 10,463 $ (5,216) |
Fair Value Measurement | The fair value measurement adjustment as of March 31, 2021 was as follows: Notional or Assumed Interest Servicing Security Total Fair Rate lock commitments $ 1,239,365 $ 6,787 $ (7,645) $ 8,752 $ — $ 7,894 Forward sales contracts $ 1,392,437 — — — 10,463 10,463 Mortgages held for sale $ 337,008 1,925 (7,262) 3,111 — (2,226) Total fair value measurement $ 8,712 $ (14,907) $ 11,863 $ 10,463 $ 16,131 |
Fair Value Measurements, Recurring and Nonrecurring | The following table presents the estimated fair values and carrying values of our Senior Notes as of March 31, 2021 and December 31, 2020. The estimated fair value is based on recent market prices of similar transactions, which is classified as Level 2 within the fair value hierarchy. March 31, 2021 December 31, 2020 Estimated Fair Values: 3.95% Senior Notes due 2022 $ 620,400 $ 630,000 3.00% Senior Notes due 2030 922,500 982,620 Total $ 1,542,900 $ 1,612,620 Carrying Values: 3.95% Senior Notes due 2022 $ 599,082 $ 598,925 3.00% Senior Notes due 2030 918,032 918,470 Total $ 1,517,114 $ 1,517,395 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Components of Lease Expense and Other Information related to Leases | The components of lease expense were as follows: Three Months Ended March 31, 2021 2020 Lease expense Operating lease expense $ 7,577 $ 7,911 Finance lease expense: Amortization of ROU assets 443 266 Interest on lease liabilities 110 49 Short-term lease expense 5,890 6,426 Total lease expense $ 14,020 $ 14,652 |
ScheduleofSupplementalCashFlowInformationRelatedtoLeases | Other information related to leases was as follows: Three Months Ended March 31, 2021 2020 Supplemental Cash Flows Information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 6,810 $ 6,718 Operating cash flows from finance leases 110 49 Financing cash flows from finance leases 329 200 ROU assets obtained in exchange for lease obligations: Operating leases $ 3,013 $ 3,784 Finance leases $ 89 $ 440 March 31, 2021 December 31, 2020 Weighted-average remaining lease term (in years): Operating leases 4.6 4.7 Finance leases 12.3 12.5 Weighted-average discount rate: Operating leases 3.3 % 3.4 % Finance leases 2.8 % 2.8 % |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Other Assets | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Contract cost | $ 25,600 | $ 22,500 | ||
Home Building Segment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Restricted cash and cash equivalents | 36,193 | 28,912 | ||
Contract liabilities for customer deposits | 314,453 | 240,758 | ||
Consolidated Joint Venture | Home Building Segment | Other Assets | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Restricted cash and cash equivalents | $ 273 | $ 269 | $ 274 | $ 281 |
Variable Interest Entities ("_3
Variable Interest Entities ("VIEs") - Additional Information (Detail) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)lot | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Variable Interest Entity [Line Items] | |||
Contract land deposit reserve adjustment | $ (6,200) | ||
Net Contract Land Deposit Impairment Recoveries | $ 36,400 | ||
Loss reserve on contract land deposits | 46,008 | $ 52,205 | |
Contract land deposits in cash | $ 442,911 | $ 439,833 | |
Variable Interest Entities | |||
Variable Interest Entity [Line Items] | |||
Maximum range of deposits required under the purchase agreements | 10.00% | ||
Lots controlled by NVR | lot | 106,100 | ||
Contract land deposits in cash under lot purchase Agreements | $ 436,000 | ||
Letters of credit related to lots | $ 7,300 | ||
Contract on Raw Ground with Landowners | |||
Variable Interest Entity [Line Items] | |||
Lots controlled by NVR | lot | 9,000 | ||
Contract land deposits in cash | $ 7,000 | ||
Letters of credit related to land contract | 100 | ||
Refundable deposits and letters of credit | $ 2,000 |
Variable Interest Entities ("_4
Variable Interest Entities ("VIEs") - Total Risk of Loss Related to Contract Land Deposits (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure [Abstract] | ||
Contract land deposits | $ 442,911 | $ 439,833 |
Loss reserve on contract land deposits | (46,008) | (52,205) |
Contract land deposits, net | 396,903 | 387,628 |
Contingent obligations in the form of letters of credit | 7,414 | 8,249 |
Total risk of loss | $ 404,317 | $ 395,877 |
Joint Ventures - Additional Inf
Joint Ventures - Additional Information (Detail) $ in Thousands | Mar. 31, 2021USD ($)joint_venturelot | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Joint Ventures [Line Items] | ||||
Aggregate investment | $ 25,900 | |||
Number of joint ventures | joint_venture | 4 | |||
Expected production of finished lots | lot | 5,050 | |||
Total lots controlled by company under the joint venture | lot | 2,100 | |||
Total lots either under contract with unrelated parties or not under the current contract | lot | 2,950 | |||
Additional funding commitments in the aggregate | $ 3,100 | |||
Number of joint ventures NVR is not primary beneficiary | joint_venture | 3 | |||
Other Assets | ||||
Joint Ventures [Line Items] | ||||
Aggregate investment | $ 25,900 | $ 23,600 | ||
Home Building Segment | ||||
Joint Ventures [Line Items] | ||||
Restricted cash and cash equivalents | 36,193 | 28,912 | ||
Accrued expenses and other liabilities | 458,849 | 440,671 | ||
Consolidated Joint Venture | Home Building Segment | Other Assets | ||||
Joint Ventures [Line Items] | ||||
Restricted cash and cash equivalents | 273 | $ 269 | $ 274 | $ 281 |
Consolidated Joint Venture | Home Building Segment | Accounts Payable and Accrued Liabilities | ||||
Joint Ventures [Line Items] | ||||
Accrued expenses and other liabilities | $ 252 |
Land Under Development - Additi
Land Under Development - Additional Information (Detail) $ in Thousands | 1 Months Ended | |
Apr. 30, 2021USD ($) | Mar. 31, 2021USD ($)lotparcel | |
Real Estate [Abstract] | ||
Number of raw parcels of land owned | parcel | 3 | |
Carrying value of raw parcels of land | $ 63,153 | |
Number of finished lots expected to be developed from raw parcels of land | lot | 500 | |
Aggregate additional funding commitments related to raw land property under joint development | $ 5,100 | |
Expected development credits that will offset the aggregate additional funding commitments related to raw land property development | $ 2,800 | |
Subsequent Event | ||
Real Estate [Line Items] | ||
Sale of Land Under Development | $ 45,750 |
Capitalized Interest - Summary
Capitalized Interest - Summary of Interest Costs Incurred, Capitalized, Expensed and Charged to Cost of Sales (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Capitalized Interest Costs, Including Allowance for Funds Used During Construction [Roll Forward] | ||
Interest capitalized, beginning of period | $ 1,025 | $ 3,499 |
Interest incurred | 13,422 | 6,635 |
Interest expense | (13,397) | (6,486) |
Interest charged to cost of sales | (221) | (614) |
Interest capitalized, end of period | $ 829 | $ 3,034 |
Earnings Per Share - Weighted A
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Weighted average number of shares outstanding used to calculate basic EPS (in shares) | 3,673 | 3,663 |
Dilutive securities: | ||
Stock options and restricted share units (in shares) | 262 | 245 |
Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS (in shares) | 3,935 | 3,908 |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive securities (in shares) | 23 | 26 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Changes in Shareholders' Equity (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | $ 3,103,074 | $ 2,341,244 |
Net income | 248,762 | 175,703 |
Purchase of common stock for treasury | (377,425) | (216,582) |
Equity-based compensation | 14,471 | 7,492 |
Proceeds from Options exercised | 57,625 | 109,062 |
Ending Balance | 3,046,507 | 2,416,919 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 206 | 206 |
Ending Balance | 206 | 206 |
Additional Paid-In Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 2,214,426 | 2,055,407 |
Equity-based compensation | 14,471 | 7,492 |
Proceeds from Options exercised | 57,625 | 109,062 |
Treasury stock issued upon option exercise and restricted share vesting | (14,516) | (44,646) |
Ending Balance | 2,272,006 | 2,127,315 |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 8,811,120 | 7,909,872 |
Net income | 248,762 | 175,703 |
Ending Balance | 9,059,882 | 8,085,575 |
Treasury Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (7,922,678) | (7,624,241) |
Purchase of common stock for treasury | (377,425) | (216,582) |
Treasury stock issued upon option exercise and restricted share vesting | 14,516 | 44,646 |
Ending Balance | (8,285,587) | (7,796,177) |
Deferred Compensation Trust | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (16,710) | (16,912) |
Ending Balance | (16,710) | (16,912) |
Deferred Compensation Liability | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | 16,710 | 16,912 |
Ending Balance | $ 16,710 | $ 16,912 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity [Abstract] | ||
Common stock repurchased (in shares) | 87 | 58 |
Reissued shares during the period, shares (in shares) | 31 | 99 |
Product Warranties Product Warr
Product Warranties Product Warranties - Schedule of Product Warranties Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Warranty reserve, beginning of period | $ 119,638 | $ 108,053 |
Provision | 22,329 | 12,421 |
Payments | (17,131) | (13,442) |
Warranty reserve, end of period | $ 124,836 | $ 107,032 |
Segment Disclosures - Additiona
Segment Disclosures - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021segment | Mar. 31, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||
Equity based compensation reversal due to forfeited stock options | $ | $ 7,200 | |
Senior Notes due 2022 | ||
Segment Reporting Information [Line Items] | ||
Senior notes interest rate | 3.95% | |
3.00% Senior Notes due 2030 | ||
Segment Reporting Information [Line Items] | ||
Senior notes interest rate | 3.00% | |
Home Building Segment | ||
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 4 | |
Mortgage Banking | ||
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 1 |
Segment Disclosures - Revenues
Segment Disclosures - Revenues (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ 2,041,446 | $ 1,582,528 |
Home Building Segment | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 1,963,711 | 1,555,707 |
Home Building Segment | Mid Atlantic | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 936,141 | 774,058 |
Home Building Segment | North East | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 162,193 | 106,136 |
Home Building Segment | Mid East | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 424,952 | 320,695 |
Home Building Segment | South East | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | 440,425 | 354,818 |
Mortgage Banking | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenues | $ 77,735 | $ 26,821 |
Segment Disclosures - Income be
Segment Disclosures - Income before Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income before taxes | $ 312,006 | $ 161,375 |
Contract land deposit reserve adjustment | (6,200) | |
Equity-based compensation expense | (14,471) | (7,492) |
Corporate interest expense | (13,397) | (6,486) |
Home Building Segment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income before taxes | 253,419 | 149,919 |
Corporate interest expense | (13,006) | (6,214) |
Mortgage Banking | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income before taxes | 58,587 | 11,456 |
Corporate interest expense | (391) | (272) |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income before taxes | 309,462 | 182,011 |
Operating Segments | Home Building Segment | Mid Atlantic | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income before taxes | 129,067 | 81,673 |
Operating Segments | Home Building Segment | North East | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income before taxes | 15,227 | 10,151 |
Operating Segments | Home Building Segment | Mid East | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income before taxes | 48,941 | 31,164 |
Operating Segments | Home Building Segment | South East | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income before taxes | 56,665 | 47,144 |
Operating Segments | Mortgage Banking | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income before taxes | 59,562 | 11,879 |
Corporate and Reconciling Items | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Income before taxes | 2,544 | (20,636) |
Contract land deposit reserve adjustment | 6,196 | (35,615) |
Equity-based compensation expense | (14,471) | (7,492) |
Corporate capital allocation | 61,551 | 56,650 |
Unallocated corporate overhead | (39,717) | (37,639) |
Consolidation adjustments and other | 1,967 | 9,654 |
Corporate interest expense | (12,982) | (6,194) |
Corporate and Reconciling Items | Home Building Segment | Mid Atlantic | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Corporate capital allocation | 30,596 | 29,755 |
Corporate and Reconciling Items | Home Building Segment | North East | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Corporate capital allocation | 6,038 | 5,558 |
Corporate and Reconciling Items | Home Building Segment | Mid East | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Corporate capital allocation | 10,624 | 9,363 |
Corporate and Reconciling Items | Home Building Segment | South East | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Corporate capital allocation | $ 14,293 | $ 11,974 |
Segment Disclosures - Corporate
Segment Disclosures - Corporate Capital Allocation Charge (Detail) - Corporate and Reconciling Items - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Corporate capital allocation charge | $ 61,551 | $ 56,650 |
Home Building Segment | Mid Atlantic | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Corporate capital allocation charge | 30,596 | 29,755 |
Home Building Segment | North East | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Corporate capital allocation charge | 6,038 | 5,558 |
Home Building Segment | Mid East | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Corporate capital allocation charge | 10,624 | 9,363 |
Home Building Segment | South East | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Corporate capital allocation charge | $ 14,293 | $ 11,974 |
Segment Disclosures - Assets (D
Segment Disclosures - Assets (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 5,820,808 | $ 5,777,141 |
Finance Lease, Right-of-Use Asset | 15,419 | 15,772 |
Contract land deposit reserve | (46,008) | (52,205) |
Home Building Segment | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 5,405,619 | 5,214,516 |
Cash and cash equivalents | 2,753,123 | 2,714,720 |
Operating lease right-of-use assets | 50,770 | 53,110 |
Mortgage Banking | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 415,189 | 562,625 |
Cash and cash equivalents | 21,061 | 63,547 |
Operating lease right-of-use assets | 12,087 | 12,439 |
Operating Segments | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 2,733,097 | 2,770,522 |
Operating Segments | Home Building Segment | Mid Atlantic | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 1,171,850 | 1,140,910 |
Operating Segments | Home Building Segment | North East | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 228,644 | 202,591 |
Operating Segments | Home Building Segment | Mid East | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 403,637 | 377,448 |
Operating Segments | Home Building Segment | South East | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 521,124 | 494,295 |
Operating Segments | Mortgage Banking | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 407,842 | 555,278 |
Corporate and Reconciling Items | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 3,087,711 | 3,006,619 |
Cash and cash equivalents | 2,753,123 | 2,714,720 |
Deferred taxes | 134,930 | 132,980 |
Intangible assets and goodwill | 49,640 | 49,678 |
Operating lease right-of-use assets | 50,770 | 53,110 |
Finance Lease, Right-of-Use Asset | 15,419 | 15,772 |
Contract land deposit reserve | (46,008) | (52,205) |
Consolidation adjustments and other | $ 129,837 | $ 92,564 |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total fair value measurement gain/(loss) | $ 16,131 | $ 15,583 | |
Home Building Segment | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior Notes carrying value | 1,517,114 | 1,517,395 | |
Home Building Segment | Senior Notes due 2022 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior Notes carrying value | 599,082 | 598,925 | |
Home Building Segment | 3.00% Senior Notes due 2030 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior Notes carrying value | 918,032 | 918,470 | |
Home Building Segment | Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior Notes carrying value | 1,517,114 | 1,517,395 | |
Home Building Segment | Level 2 | Fair Value, Recurring | Senior Notes due 2022 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior Notes fair value | 620,400 | 630,000 | |
Home Building Segment | Level 2 | Fair Value, Recurring | 3.00% Senior Notes due 2030 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior Notes fair value | 922,500 | 982,620 | |
Home Building Segment | Level 2 | Fair Value, Recurring | Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Senior Notes fair value | 1,542,900 | 1,612,620 | |
Mortgage Banking | Level 2 | Not Designated as Hedging Instrument | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value adjustment income (expense) | (548) | $ 10,721 | |
Mortgage Banking | Level 2 | Fair Value, Recurring | Rate Lock Commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value disclosure, off-balance sheet risks, face amount, liability | 1,239,365 | ||
Total fair value measurement gain/(loss) | 7,894 | ||
Mortgage Banking | Level 2 | Fair Value, Recurring | Forward Sales Contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value disclosure, off-balance sheet risks, face amount, liability | 1,392,437 | ||
Total fair value measurement gain/(loss) | 10,463 | ||
Mortgage Banking | Level 2 | Fair Value, Recurring | Mortgages Held for Sale | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trade and loans receivables held-for-sale, net, not part of disposal group | 334,782 | 449,760 | |
Fair Value, principal amount, loans held for sale | 337,008 | 439,718 | |
Fair value, option, changes in fair value, gain (loss) | $ (2,226) | $ 10,042 |
Fair Value - Undesignated Deriv
Fair Value - Undesignated Derivative Instruments (Detail) - Mortgage Banking - Level 2 - Fair Value, Recurring - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Other Assets | Rate Lock Commitments | ||
Derivatives, Fair Value [Line Items] | ||
Gross assets | $ 15,877 | $ 10,844 |
Gross liabilities | 7,983 | 87 |
Net rate lock commitments and forward sales contracts | 7,894 | 10,757 |
Accrued Liabilities | Forward Sales Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Gross assets | 10,749 | 1 |
Gross liabilities | 286 | 5,217 |
Net rate lock commitments and forward sales contracts | $ 10,463 | $ (5,216) |
Fair Value - Fair Value Measure
Fair Value - Fair Value Measurement (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assumed Gain/(Loss) From Loan Sale | $ 8,712 | |
Interest Rate Movement Effect | (14,907) | |
Servicing Rights Value | 11,863 | |
Security Price Change | 10,463 | |
Total Fair Value Measurement Gain/(Loss) | 16,131 | $ 15,583 |
Mortgage Banking | Level 2 | Fair Value, Recurring | Rate Lock Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value disclosure, off-balance sheet risks, face amount, liability | 1,239,365 | |
Assumed Gain/(Loss) From Loan Sale | 6,787 | |
Interest Rate Movement Effect | (7,645) | |
Servicing Rights Value | 8,752 | |
Total Fair Value Measurement Gain/(Loss) | 7,894 | |
Mortgage Banking | Level 2 | Fair Value, Recurring | Forward Sales Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value disclosure, off-balance sheet risks, face amount, liability | 1,392,437 | |
Security Price Change | 10,463 | |
Total Fair Value Measurement Gain/(Loss) | 10,463 | |
Mortgage Banking | Level 2 | Fair Value, Recurring | Mortgages Held for Sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assumed Gain/(Loss) From Loan Sale | 1,925 | |
Interest Rate Movement Effect | (7,262) | |
Servicing Rights Value | 3,111 | |
Fair value, option, changes in fair value, gain (loss) | (2,226) | 10,042 |
Fair Value, principal amount, loans held for sale | $ 337,008 | $ 439,718 |
Debt - Additional Information (
Debt - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Senior Notes due 2022 | |
Debt Instrument [Line Items] | |
Senior notes principal amount | $ 600,000,000 |
Senior notes interest rate | 3.95% |
Frequency of senior notes payment | semi-annually in arrears on March 15 and September 15 |
Senior notes effective interest rate | 3.97% |
Credit Agreement | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Maximum loan borrowing capacity | $ 300,000,000 |
Increase in commitment available | 300,000,000 |
Debt outstanding | 0 |
Credit Agreement | Revolving Credit Facility | Sublimit for Issuance of Letters of Credit | |
Debt Instrument [Line Items] | |
Maximum loan borrowing capacity | 100,000,000 |
Letters of credit outstanding | 12,250,000 |
Repurchase Agreement | Revolving Credit Facility | |
Debt Instrument [Line Items] | |
Maximum loan borrowing capacity | 150,000,000 |
Borrowing base limitations | 0 |
Debt outstanding | 0 |
3.00% Senior Notes due 2030 | |
Debt Instrument [Line Items] | |
Senior notes principal amount | $ 900,000,000 |
Senior notes interest rate | 3.00% |
Frequency of senior notes payment | semi-annually in arrears on May 15 and November 15 |
$600M Senior Notes Due Two Thousand Thirty | |
Debt Instrument [Line Items] | |
Senior notes principal amount | $ 600,000,000 |
Senior notes effective interest rate | 3.02% |
Additional Senior Notes Due Two Thousand Thirty | |
Debt Instrument [Line Items] | |
Senior notes principal amount | $ 300,000,000 |
Senior notes effective interest rate | 2.00% |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease, term | 19 years 4 months 24 days | |
Operating lease, option to extend | 20 | |
Finance Lease, Right-of-Use Asset | $ 15,419 | $ 15,772 |
Finance Lease, Liability | $ 15,933 | $ 16,173 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating Lease, Expense | $ 7,577 | $ 7,911 |
Finance Lease, Right-of-Use Asset, Amortization | 443 | 266 |
Finance Lease, Interest Expense | 110 | 49 |
Short-term Lease Payments | 5,890 | 6,426 |
Lease, Cost | $ 14,020 | $ 14,652 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Supplemental Cash Flows Information: | |||
Operating cash flows from operating leases | $ 6,810 | $ 6,718 | |
Operating cash flows from finance leases | 110 | 49 | |
Financing cash flows from finance leases | 329 | 200 | |
ROU assets obtained in exchange for lease obligations: | |||
Operating leases | 3,013 | 3,784 | |
Finance leases | $ 89 | $ 440 | |
Weighted-average remaining lease term (in years): | |||
Operating leases | 4 years 7 months 6 days | 4 years 8 months 12 days | |
Finance leases | 12 years 3 months 18 days | 12 years 6 months | |
Weighted-average discount rate: | |||
Operating leases | 3.30% | 3.40% | |
Finance leases | 2.80% | 2.80% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 20.30% | (8.90%) |
Excess tax benefit recognized | $ 17,377 | $ 55,655 |