false2021Q2000090616312-3100009061632021-01-012021-06-30xbrli:shares00009061632021-07-30iso4217:USD0000906163nvr:HomeBuildingSegmentMember2021-06-300000906163nvr:HomeBuildingSegmentMember2020-12-310000906163nvr:MortgageBankingSegmentMember2021-06-300000906163nvr:MortgageBankingSegmentMember2020-12-3100009061632021-06-3000009061632020-12-31iso4217:USDxbrli:shares0000906163nvr:HomeBuildingSegmentMember2021-04-012021-06-300000906163nvr:HomeBuildingSegmentMember2020-04-012020-06-300000906163nvr:HomeBuildingSegmentMember2021-01-012021-06-300000906163nvr:HomeBuildingSegmentMember2020-01-012020-06-300000906163nvr:MortgageBankingSegmentMember2021-04-012021-06-300000906163nvr:MortgageBankingSegmentMember2020-04-012020-06-300000906163nvr:MortgageBankingSegmentMember2021-01-012021-06-300000906163nvr:MortgageBankingSegmentMember2020-01-012020-06-3000009061632021-04-012021-06-3000009061632020-04-012020-06-3000009061632020-01-012020-06-3000009061632019-12-3100009061632020-06-300000906163nvr:HomeBuildingSegmentMemberus-gaap:OtherAssetsMembernvr:ConsolidatedJointVentureMember2021-06-300000906163nvr:HomeBuildingSegmentMemberus-gaap:OtherAssetsMembernvr:ConsolidatedJointVentureMember2020-12-310000906163nvr:HomeBuildingSegmentMemberus-gaap:OtherAssetsMembernvr:ConsolidatedJointVentureMember2020-06-300000906163nvr:HomeBuildingSegmentMemberus-gaap:OtherAssetsMembernvr:ConsolidatedJointVentureMember2019-12-310000906163us-gaap:OtherAssetsMember2021-06-300000906163us-gaap:OtherAssetsMember2020-12-31xbrli:pure0000906163us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2021-06-30nvr:lot0000906163nvr:RawGroundContractsVariableInterestEntityNotPrimaryBeneficiaryMember2021-06-30nvr:joint_venture0000906163nvr:HomeBuildingSegmentMemberus-gaap:AccountsPayableAndAccruedLiabilitiesMembernvr:ConsolidatedJointVentureMember2021-06-30nvr:parcel0000906163nvr:RawLandParcelPurchasedDuringPeriodMember2021-06-300000906163nvr:TotalRawLandParcelOwnedMember2021-06-3000009061632021-03-3100009061632020-03-310000906163us-gaap:CommonStockMember2021-03-310000906163us-gaap:AdditionalPaidInCapitalMember2021-03-310000906163us-gaap:RetainedEarningsMember2021-03-310000906163us-gaap:TreasuryStockMember2021-03-310000906163nvr:DeferredCompensationTrustMember2021-03-310000906163nvr:DeferredCompensationLiabilityMember2021-03-310000906163us-gaap:RetainedEarningsMember2021-04-012021-06-300000906163us-gaap:TreasuryStockMember2021-04-012021-06-300000906163us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300000906163us-gaap:CommonStockMember2021-06-300000906163us-gaap:AdditionalPaidInCapitalMember2021-06-300000906163us-gaap:RetainedEarningsMember2021-06-300000906163us-gaap:TreasuryStockMember2021-06-300000906163nvr:DeferredCompensationTrustMember2021-06-300000906163nvr:DeferredCompensationLiabilityMember2021-06-300000906163us-gaap:CommonStockMember2020-12-310000906163us-gaap:AdditionalPaidInCapitalMember2020-12-310000906163us-gaap:RetainedEarningsMember2020-12-310000906163us-gaap:TreasuryStockMember2020-12-310000906163nvr:DeferredCompensationTrustMember2020-12-310000906163nvr:DeferredCompensationLiabilityMember2020-12-310000906163us-gaap:RetainedEarningsMember2021-01-012021-06-300000906163us-gaap:TreasuryStockMember2021-01-012021-06-300000906163us-gaap:AdditionalPaidInCapitalMember2021-01-012021-06-300000906163us-gaap:CommonStockMember2020-03-310000906163us-gaap:AdditionalPaidInCapitalMember2020-03-310000906163us-gaap:RetainedEarningsMember2020-03-310000906163us-gaap:TreasuryStockMember2020-03-310000906163nvr:DeferredCompensationTrustMember2020-03-310000906163nvr:DeferredCompensationLiabilityMember2020-03-310000906163us-gaap:RetainedEarningsMember2020-04-012020-06-300000906163nvr:DeferredCompensationTrustMember2020-04-012020-06-300000906163nvr:DeferredCompensationLiabilityMember2020-04-012020-06-300000906163us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300000906163us-gaap:TreasuryStockMember2020-04-012020-06-300000906163us-gaap:CommonStockMember2020-06-300000906163us-gaap:AdditionalPaidInCapitalMember2020-06-300000906163us-gaap:RetainedEarningsMember2020-06-300000906163us-gaap:TreasuryStockMember2020-06-300000906163nvr:DeferredCompensationTrustMember2020-06-300000906163nvr:DeferredCompensationLiabilityMember2020-06-300000906163us-gaap:CommonStockMember2019-12-310000906163us-gaap:AdditionalPaidInCapitalMember2019-12-310000906163us-gaap:RetainedEarningsMember2019-12-310000906163us-gaap:TreasuryStockMember2019-12-310000906163nvr:DeferredCompensationTrustMember2019-12-310000906163nvr:DeferredCompensationLiabilityMember2019-12-310000906163us-gaap:RetainedEarningsMember2020-01-012020-06-300000906163nvr:DeferredCompensationTrustMember2020-01-012020-06-300000906163nvr:DeferredCompensationLiabilityMember2020-01-012020-06-300000906163us-gaap:TreasuryStockMember2020-01-012020-06-300000906163us-gaap:AdditionalPaidInCapitalMember2020-01-012020-06-30nvr:segment0000906163nvr:SeniorNotesDueTwoThousandTwentyTwoMember2021-06-300000906163nvr:SeniorNotesDueTwoThousandThirtyMember2021-06-300000906163nvr:HomeBuildingSegmentMembernvr:MidAtlanticMember2021-04-012021-06-300000906163nvr:HomeBuildingSegmentMembernvr:MidAtlanticMember2020-04-012020-06-300000906163nvr:HomeBuildingSegmentMembernvr:MidAtlanticMember2021-01-012021-06-300000906163nvr:HomeBuildingSegmentMembernvr:MidAtlanticMember2020-01-012020-06-300000906163nvr:HomeBuildingSegmentMembernvr:NorthEastMember2021-04-012021-06-300000906163nvr:HomeBuildingSegmentMembernvr:NorthEastMember2020-04-012020-06-300000906163nvr:HomeBuildingSegmentMembernvr:NorthEastMember2021-01-012021-06-300000906163nvr:HomeBuildingSegmentMembernvr:NorthEastMember2020-01-012020-06-300000906163nvr:HomeBuildingSegmentMembernvr:MidEastMember2021-04-012021-06-300000906163nvr:HomeBuildingSegmentMembernvr:MidEastMember2020-04-012020-06-300000906163nvr:HomeBuildingSegmentMembernvr:MidEastMember2021-01-012021-06-300000906163nvr:HomeBuildingSegmentMembernvr:MidEastMember2020-01-012020-06-300000906163nvr:HomeBuildingSegmentMembernvr:SouthEastMember2021-04-012021-06-300000906163nvr:HomeBuildingSegmentMembernvr:SouthEastMember2020-04-012020-06-300000906163nvr:HomeBuildingSegmentMembernvr:SouthEastMember2021-01-012021-06-300000906163nvr:HomeBuildingSegmentMembernvr:SouthEastMember2020-01-012020-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:MidAtlanticMember2021-04-012021-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:MidAtlanticMember2020-04-012020-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:MidAtlanticMember2021-01-012021-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:MidAtlanticMember2020-01-012020-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:NorthEastMember2021-04-012021-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:NorthEastMember2020-04-012020-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:NorthEastMember2021-01-012021-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:NorthEastMember2020-01-012020-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:MidEastMember2021-04-012021-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:MidEastMember2020-04-012020-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:MidEastMember2021-01-012021-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:MidEastMember2020-01-012020-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:SouthEastMember2021-04-012021-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:SouthEastMember2020-04-012020-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:SouthEastMember2021-01-012021-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:SouthEastMember2020-01-012020-06-300000906163us-gaap:OperatingSegmentsMembernvr:MortgageBankingSegmentMember2021-04-012021-06-300000906163us-gaap:OperatingSegmentsMembernvr:MortgageBankingSegmentMember2020-04-012020-06-300000906163us-gaap:OperatingSegmentsMembernvr:MortgageBankingSegmentMember2021-01-012021-06-300000906163us-gaap:OperatingSegmentsMembernvr:MortgageBankingSegmentMember2020-01-012020-06-300000906163us-gaap:OperatingSegmentsMember2021-04-012021-06-300000906163us-gaap:OperatingSegmentsMember2020-04-012020-06-300000906163us-gaap:OperatingSegmentsMember2021-01-012021-06-300000906163us-gaap:OperatingSegmentsMember2020-01-012020-06-300000906163nvr:CorporateReconcilingItemsAndEliminationsMember2021-04-012021-06-300000906163nvr:CorporateReconcilingItemsAndEliminationsMember2020-04-012020-06-300000906163nvr:CorporateReconcilingItemsAndEliminationsMember2021-01-012021-06-300000906163nvr:CorporateReconcilingItemsAndEliminationsMember2020-01-012020-06-300000906163nvr:HomeBuildingSegmentMembernvr:MidAtlanticMembernvr:CorporateReconcilingItemsAndEliminationsMember2021-04-012021-06-300000906163nvr:HomeBuildingSegmentMembernvr:MidAtlanticMembernvr:CorporateReconcilingItemsAndEliminationsMember2020-04-012020-06-300000906163nvr:HomeBuildingSegmentMembernvr:MidAtlanticMembernvr:CorporateReconcilingItemsAndEliminationsMember2021-01-012021-06-300000906163nvr:HomeBuildingSegmentMembernvr:MidAtlanticMembernvr:CorporateReconcilingItemsAndEliminationsMember2020-01-012020-06-300000906163nvr:HomeBuildingSegmentMembernvr:NorthEastMembernvr:CorporateReconcilingItemsAndEliminationsMember2021-04-012021-06-300000906163nvr:HomeBuildingSegmentMembernvr:NorthEastMembernvr:CorporateReconcilingItemsAndEliminationsMember2020-04-012020-06-300000906163nvr:HomeBuildingSegmentMembernvr:NorthEastMembernvr:CorporateReconcilingItemsAndEliminationsMember2021-01-012021-06-300000906163nvr:HomeBuildingSegmentMembernvr:NorthEastMembernvr:CorporateReconcilingItemsAndEliminationsMember2020-01-012020-06-300000906163nvr:HomeBuildingSegmentMembernvr:CorporateReconcilingItemsAndEliminationsMembernvr:MidEastMember2021-04-012021-06-300000906163nvr:HomeBuildingSegmentMembernvr:CorporateReconcilingItemsAndEliminationsMembernvr:MidEastMember2020-04-012020-06-300000906163nvr:HomeBuildingSegmentMembernvr:CorporateReconcilingItemsAndEliminationsMembernvr:MidEastMember2021-01-012021-06-300000906163nvr:HomeBuildingSegmentMembernvr:CorporateReconcilingItemsAndEliminationsMembernvr:MidEastMember2020-01-012020-06-300000906163nvr:HomeBuildingSegmentMembernvr:SouthEastMembernvr:CorporateReconcilingItemsAndEliminationsMember2021-04-012021-06-300000906163nvr:HomeBuildingSegmentMembernvr:SouthEastMembernvr:CorporateReconcilingItemsAndEliminationsMember2020-04-012020-06-300000906163nvr:HomeBuildingSegmentMembernvr:SouthEastMembernvr:CorporateReconcilingItemsAndEliminationsMember2021-01-012021-06-300000906163nvr:HomeBuildingSegmentMembernvr:SouthEastMembernvr:CorporateReconcilingItemsAndEliminationsMember2020-01-012020-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:MidAtlanticMember2021-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:MidAtlanticMember2020-12-310000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:NorthEastMember2021-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:NorthEastMember2020-12-310000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:MidEastMember2021-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:MidEastMember2020-12-310000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:SouthEastMember2021-06-300000906163us-gaap:OperatingSegmentsMembernvr:HomeBuildingSegmentMembernvr:SouthEastMember2020-12-310000906163us-gaap:OperatingSegmentsMembernvr:MortgageBankingSegmentMember2021-06-300000906163us-gaap:OperatingSegmentsMembernvr:MortgageBankingSegmentMember2020-12-310000906163us-gaap:OperatingSegmentsMember2021-06-300000906163us-gaap:OperatingSegmentsMember2020-12-310000906163nvr:CorporateReconcilingItemsAndEliminationsMember2021-06-300000906163nvr:CorporateReconcilingItemsAndEliminationsMember2020-12-310000906163nvr:SeniorNotesDueTwoThousandTwentyTwoMembernvr:HomeBuildingSegmentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-06-300000906163nvr:SeniorNotesDueTwoThousandTwentyTwoMembernvr:HomeBuildingSegmentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310000906163nvr:HomeBuildingSegmentMembernvr:SeniorNotesDueTwoThousandThirtyMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-06-300000906163nvr:HomeBuildingSegmentMembernvr:SeniorNotesDueTwoThousandThirtyMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-12-310000906163nvr:HomeBuildingSegmentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel2Member2021-06-300000906163nvr:HomeBuildingSegmentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:SeniorNotesMemberus-gaap:FairValueInputsLevel2Member2020-12-310000906163nvr:SeniorNotesDueTwoThousandTwentyTwoMembernvr:HomeBuildingSegmentMember2021-06-300000906163nvr:SeniorNotesDueTwoThousandTwentyTwoMembernvr:HomeBuildingSegmentMember2020-12-310000906163nvr:HomeBuildingSegmentMembernvr:SeniorNotesDueTwoThousandThirtyMember2021-06-300000906163nvr:HomeBuildingSegmentMembernvr:SeniorNotesDueTwoThousandThirtyMember2020-12-310000906163nvr:HomeBuildingSegmentMemberus-gaap:SeniorNotesMember2021-06-300000906163nvr:HomeBuildingSegmentMemberus-gaap:SeniorNotesMember2020-12-310000906163nvr:MortgageBankingSegmentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateLockCommitmentsMember2021-06-300000906163nvr:MortgageBankingSegmentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForwardContractsMemberus-gaap:FairValueInputsLevel2Member2021-06-300000906163nvr:MortgageBankingSegmentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Membernvr:MortgagesHeldForSaleMember2021-06-300000906163nvr:MortgageBankingSegmentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Membernvr:MortgagesHeldForSaleMember2021-01-012021-06-300000906163nvr:MortgageBankingSegmentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Membernvr:MortgagesHeldForSaleMember2020-12-310000906163nvr:MortgageBankingSegmentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Membernvr:MortgagesHeldForSaleMember2020-01-012020-12-310000906163nvr:MortgageBankingSegmentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateLockCommitmentsMember2021-06-300000906163nvr:MortgageBankingSegmentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:OtherAssetsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateLockCommitmentsMember2020-12-310000906163nvr:MortgageBankingSegmentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForwardContractsMemberus-gaap:AccruedLiabilitiesMemberus-gaap:FairValueInputsLevel2Member2021-06-300000906163nvr:MortgageBankingSegmentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForwardContractsMemberus-gaap:AccruedLiabilitiesMemberus-gaap:FairValueInputsLevel2Member2020-12-310000906163nvr:MortgageBankingSegmentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateLockCommitmentsMember2021-01-012021-06-300000906163nvr:MortgageBankingSegmentMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForwardContractsMemberus-gaap:FairValueInputsLevel2Member2021-01-012021-06-3000009061632020-01-012020-12-310000906163nvr:MortgageBankingSegmentMemberus-gaap:NondesignatedMemberus-gaap:FairValueInputsLevel2Member2021-04-012021-06-300000906163nvr:MortgageBankingSegmentMemberus-gaap:NondesignatedMemberus-gaap:FairValueInputsLevel2Member2021-01-012021-06-300000906163nvr:MortgageBankingSegmentMemberus-gaap:NondesignatedMemberus-gaap:FairValueInputsLevel2Member2020-04-012020-06-300000906163nvr:MortgageBankingSegmentMemberus-gaap:NondesignatedMemberus-gaap:FairValueInputsLevel2Member2020-01-012020-06-300000906163nvr:SeniorNotesDueTwoThousandTwentyTwoMember2021-01-012021-06-300000906163nvr:SeniorNotesDueTwoThousandThirtyMember2021-01-012021-06-300000906163nvr:A600MSeniorNotesDueTwoThousandThirtyMember2021-06-300000906163nvr:A300MSeniorNotesDueTwoThousandThirtyMember2021-06-300000906163nvr:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2021-06-300000906163nvr:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMember2021-01-012021-06-300000906163nvr:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMembernvr:SublimitForIssuanceOfLettersOfCreditMember2021-06-300000906163nvr:RepurchaseAgreementMemberus-gaap:RevolvingCreditFacilityMember2021-06-30

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 June 30, 2021
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)
Virginia54-1394360
(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)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.01 per shareNVRNew York Stock Exchange
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 every Interactive Data File required to be submitted 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 such files).  Yes   No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer  Accelerated filer
Non-accelerated filer Smaller reporting company
    Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
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 July 30, 2021 there were 3,563,782 total shares of common stock outstanding.



NVR, Inc.
FORM 10-Q
TABLE OF CONTENTS
Page
PART I
Item 1.
Item 2.
PART II
Item 1A.
Item 2.
Item 6.




PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
NVR, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
(unaudited)
 June 30, 2021December 31, 2020
ASSETS  
Homebuilding:  
Cash and cash equivalents$2,597,565 $2,714,720 
Restricted cash42,543 28,912 
Receivables24,484 18,299 
Inventory:
Lots and housing units, covered under sales agreements with customers1,792,293 1,484,936 
Unsold lots and housing units131,668 123,197 
Land under development7,794 62,790 
Building materials and other41,618 38,159 
 1,973,373 1,709,082 
Contract land deposits, net425,301 387,628 
Property, plant and equipment, net54,379 57,786 
Operating lease right-of-use assets61,740 53,110 
Reorganization value in excess of amounts allocable to identifiable assets, net41,580 41,580 
Other assets215,168 203,399 
 5,436,133 5,214,516 
Mortgage Banking:  
Cash and cash equivalents20,757 63,547 
Restricted cash3,688 2,334 
Mortgage loans held for sale, net344,680 449,760 
Property and equipment, net4,236 4,544 
Operating lease right-of-use assets11,627 12,439 
Reorganization value in excess of amounts allocable to identifiable assets, net7,347 7,347 
Other assets25,968 22,654 
 418,303 562,625 
Total assets$5,854,436 $5,777,141 


See notes to condensed consolidated financial statements.
1


NVR, Inc.
Condensed Consolidated Balance Sheets (Continued)
(in thousands, except share and per share data)
(unaudited)
June 30, 2021December 31, 2020
LIABILITIES AND SHAREHOLDERS' EQUITY  
Homebuilding:  
Accounts payable$380,957 $339,867 
Accrued expenses and other liabilities419,454 440,671 
Customer deposits365,443 240,758 
Operating lease liabilities67,413 59,357 
Senior notes1,516,830 1,517,395 
 2,750,097 2,598,048 
Mortgage Banking:  
Accounts payable and other liabilities49,605 62,720 
Operating lease liabilities12,446 13,299 
 62,051 76,019 
Total liabilities2,812,148 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 June 30, 2021 and December 31, 2020
206 206 
Additional paid-in capital2,314,564 2,214,426 
Deferred compensation trust – 106,697 shares of NVR, Inc. common stock as of both June 30, 2021 and December 31, 2020
(16,710)(16,710)
Deferred compensation liability16,710 16,710 
Retained earnings9,381,177 8,811,120 
Less treasury stock at cost – 16,976,140 and 16,859,753 shares as of June 30, 2021 and December 31, 2020, respectively
(8,653,659)(7,922,678)
Total shareholders' equity3,042,288 3,103,074 
Total liabilities and shareholders' equity$5,854,436 $5,777,141 


See notes to condensed consolidated financial statements.
2

Table of Contents
NVR, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Homebuilding:    
Revenues$2,224,560 $1,588,758 $4,188,271 $3,144,465 
Other income1,632 2,408 3,218 7,744 
Cost of sales(1,721,673)(1,284,493)(3,299,126)(2,579,236)
Selling, general and administrative(113,406)(102,702)(234,825)(212,869)
Operating income391,113 203,971 657,538 360,104 
Interest expense(12,850)(9,166)(25,856)(15,380)
Homebuilding income378,263 194,805 631,682 344,724 
Mortgage Banking:    
Mortgage banking fees59,038 31,610 136,773 58,431 
Interest income2,209 1,854 4,241 4,323 
Other income988 679 1,855 1,328 
General and administrative(22,613)(18,758)(44,269)(36,969)
Interest expense(420)(359)(811)(631)
Mortgage banking income39,202 15,026 97,789 26,482 
Income before taxes417,465 209,831 729,471 371,206 
Income tax expense(96,170)(45,756)(159,414)(31,428)
Net income$321,295 $164,075 $570,057 $339,778 
Basic earnings per share$88.69 $44.56 $156.27 $92.52 
Diluted earnings per share$82.45 $42.50 $145.53 $87.56 
Basic weighted average shares outstanding3,623 3,682 3,648 3,673 
Diluted weighted average shares outstanding3,897 3,861 3,917 3,881 


See notes to condensed consolidated financial statements.
3

Table of Contents
NVR, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 Six Months Ended June 30,
 20212020
Cash flows from operating activities:  
Net income$570,057 $339,778 
Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation and amortization10,038 11,254 
Equity-based compensation expense27,850 21,926 
Contract land deposit and other (recoveries) impairments, net(13,355)37,453 
Gain on sale of loans, net(115,152)(41,574)
Mortgage loans closed(2,981,630)(2,280,199)
Mortgage loans sold and principal payments on mortgage loans held for sale3,194,279 2,491,119 
Distribution of earnings from unconsolidated joint ventures5,500  
Net change in assets and liabilities:  
Increase in inventory(264,291)(255,852)
(Increase) decrease in contract land deposits(24,318)16,020 
Increase in receivables(4,327)(2,825)
Increase in accounts payable and accrued expenses7,943 26,512 
Increase in customer deposits124,685 26,130 
Other, net(16,259)(19,073)
Net cash provided by operating activities521,020 370,669 
Cash flows from investing activities:  
Investments in and advances to unconsolidated joint ventures(659)(38)
Purchase of property, plant and equipment(6,620)(8,217)
Proceeds from the sale of property, plant and equipment657 449 
Net cash used in investing activities(6,622)(7,806)
Cash flows from financing activities:  
Purchase of treasury stock(754,366)(216,582)
Proceeds from senior notes 598,860 
Debt issuance costs (3,582)
Principal payments on finance lease liabilities(661)(412)
Proceeds from the exercise of stock options95,673 126,046 
Net cash (used in) provided by financing activities(659,354)504,330 
Net (decrease) increase in cash, restricted cash, and cash equivalents(144,956)867,193 
Cash, restricted cash, and cash equivalents, beginning of the period2,809,782 1,160,804 
Cash, restricted cash, and cash equivalents, end of the period$2,664,826 $2,027,997 
Supplemental disclosures of cash flow information:  
Interest paid during the period, net of interest capitalized$26,875 $12,593 
Income taxes paid during the period, net of refunds$172,563 $11,740 


See notes to condensed consolidated financial statements.
4

Table of Contents
NVR, Inc.
Notes to Condensed Consolidated Financial Statements
(dollars and shares in thousands, except per share data)
(unaudited)

1. 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 and six months ended June 30, 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 and six months ended June 30, 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 June 30, 2021 and December 31, 2020 was $273 and $269, respectively, and as of June 30, 2020 and December 31, 2019 was $272 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 $365,443 and $240,758 as of June 30, 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 contract assets consist of prepaid sales compensation and totaled approximately $25,400 and $22,500, as of June 30, 2021 and December 31, 2020, respectively. Prepaid sales compensation is included in homebuilding “Other assets” on the accompanying condensed consolidated balance sheets.
2.    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.  
5

Table of Contents
NVR, Inc.
Notes to Condensed Consolidated Financial Statements
(dollars and shares in thousands, except per share data)
(unaudited)
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 June 30, 2021, we controlled approximately 112,000 lots under LPAs with third parties through deposits in cash and letters of credit totaling approximately $460,900 and $6,900, 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 and six month periods ended June 30, 2021, we recorded a net reversal of approximately $7,200 and $13,400, respectively, related to previously impaired lot deposits as market conditions have improved. For the three and six months ended June 30, 2020, we recorded pre-tax charges of approximately $900 and $37,300, respectively, related to the impairment of deposits under LPAs due primarily to deteriorating market conditions in certain of our markets related to the COVID-19 pandemic. Our contract land deposit is shown net of a $38,831 and $52,205 impairment reserve at June 30, 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 $3,200 and $100, respectively, as of June 30, 2021, of which approximately $2,800 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 June 30, 2021 and December 31, 2020, our total risk of loss was as follows:
June 30, 2021December 31, 2020
Contract land deposits$464,132 $439,833 
Loss reserve on contract land deposits(38,831)(52,205)
Contract land deposits, net425,301 387,628 
Contingent obligations in the form of letters of credit7,002 8,249 
Total risk of loss$432,303 $395,877 

3.    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 JV. 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 June 30, 2021, we had an aggregate investment totaling approximately $21,700 in four JVs that are expected to produce approximately 2,350 finished lots, of which approximately 2,000 lots were controlled by us and the remaining approximately 350 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 June 30, 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 $21,700 and $23,600 at June 30, 2021 and December 31, 2020, respectively, and is reported in the “Other assets” line item on the accompanying condensed consolidated
6

Table of Contents
NVR, Inc.
Notes to Condensed Consolidated Financial Statements
(dollars and shares in thousands, except per share data)
(unaudited)
balance sheets. None of the unconsolidated JVs had any indicators of impairment as of June 30, 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, 2020, all activities under the consolidated JV had been completed. As of June 30, 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.
4.    Land Under Development
On 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.
During the second quarter of 2021, we had the following land under development transactions:
Sold a land parcel to a developer for approximately $45,800, 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.
Completed the development of one land parcel and transferred development costs totaling approximately $16,500 to inventory which is reported in "Unsold lots and housing units" in the accompanying condensed consolidated balance sheet as of June 30, 2021.
Purchased a raw land parcel for approximately $7,200, which is expected to produce approximately 80 lots.    
As of June 30, 2021, we directly owned two separate raw land parcels with a carrying value of $7,794 that are expected to produce approximately 100 finished lots. 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 June 30, 2021.
5.    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.
7

Table of Contents
NVR, Inc.
Notes to Condensed Consolidated Financial Statements
(dollars and shares in thousands, except per share data)
(unaudited)
The following table reflects the changes in our capitalized interest during the three and six months ended June 30, 2021 and 2020:
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Interest capitalized, beginning of period$829 $3,034 $1,025 $3,499 
Interest incurred13,291 9,665 26,714 16,300 
Interest charged to interest expense(13,270)(9,525)(26,667)(16,011)
Interest charged to cost of sales(206)(501)(428)(1,115)
Interest capitalized, end of period$644 $2,673 $644 $2,673 

6.    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 and six months ended June 30, 2021 and 2020:
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Weighted average number of shares outstanding used to calculate basic EPS3,623 3,682 3,648 3,673 
Dilutive securities:
Stock options and restricted share units274 179 269 208 
Weighted average number of shares and share equivalents outstanding used to calculate diluted EPS3,897 3,861 3,917 3,881 
The following non-qualified stock options ("Options") issued under equity incentive plans were outstanding during the three and six months ended June 30, 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 June 30,Six Months Ended June 30,
 2021202020212020
Anti-dilutive securities18 330 19 244 

7.    Shareholders’ Equity
A summary of changes in shareholders’ equity for the three months ended June 30, 2021 is presented below:
 Common
Stock
Additional
Paid-In
Capital
Retained
Earnings
Treasury
Stock
Deferred
Compensation
Trust
Deferred
Compensation
Liability
Total
Balance, March 31, 2021$206 $2,272,006 $9,059,882 $(8,285,587)$(16,710)$16,710 $3,046,507 
Net income— — 321,295 — — — 321,295 
Purchase of common stock for treasury— — — (376,941)— — (376,941)
Equity-based compensation— 13,379 — — — — 13,379 
Proceeds from Options exercised— 38,048 — — — — 38,048 
Treasury stock issued upon option exercise and restricted share vesting— (8,869)— 8,869 — — — 
Balance, June 30, 2021$206 $2,314,564 $9,381,177 $(8,653,659)$(16,710)$16,710 $3,042,288 
8

Table of Contents
NVR, Inc.
Notes to Condensed Consolidated Financial Statements
(dollars and shares in thousands, except per share data)
(unaudited)
A summary of changes in shareholders’ equity for the six months ended June 30, 2021 is presented below:
 Common
Stock
Additional
Paid-In
Capital
Retained
Earnings
Treasury
Stock
Deferred
Compensation
Trust
Deferred
Compensation
Liability
Total
Balance, December 31, 2020$206 $2,214,426 $8,811,120 $(7,922,678)$(16,710)$16,710 $3,103,074 
Net income— — 570,057 — — — 570,057 
Purchase of common stock for treasury— — — (754,366)— — (754,366)
Equity-based compensation— 27,850 — — — — 27,850 
Proceeds from Options exercised— 95,673 — — — — 95,673 
Treasury stock issued upon option exercise and restricted share vesting— (23,385)— 23,385 — — — 
Balance, June 30, 2021$206 $2,314,564 $9,381,177 $(8,653,659)$(16,710)$16,710 $3,042,288 

We repurchased approximately 78 and 165 shares of our common stock during the three and six months ended June 30, 2021, respectively. We settle Option exercises and vesting of RSUs by issuing shares of treasury stock.  Approximately 18 and 49 shares were issued from the treasury account during the three and six months ended June 30, 2021, 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.
A summary of changes in shareholders’ equity for the three months ended June 30, 2020 is presented below:
 Common
Stock
Additional
Paid-In
Capital
Retained
Earnings
Treasury
Stock
Deferred
Compensation
Trust
Deferred
Compensation
Liability
Total
Balance, March 31, 2020$206 $2,127,315 $8,085,575 $(7,796,177)$(16,912)$16,912 $2,416,919 
Net income— — 164,075 — — — 164,075 
Deferred compensation activity, net— — — — 202 (202)— 
Equity-based compensation— 14,434 — — — — 14,434 
Proceeds from Options exercised— 16,984 — — — — 16,984 
Treasury stock issued upon option exercise and restricted share vesting— (7,110)— 7,110 — — — 
Balance, June 30, 2020$206 $2,151,623 $8,249,650 $(7,789,067)$(16,710)$16,710 $2,612,412 

9

Table of Contents
NVR, Inc.
Notes to Condensed Consolidated Financial Statements
(dollars and shares in thousands, except per share data)
(unaudited)

A summary of changes in shareholders’ equity for the six months ended June 30, 2020 is presented below:
 Common
Stock
Additional
Paid-In
Capital
Retained
Earnings
Treasury
Stock
Deferred
Compensation
Trust
Deferred
Compensation
Liability
Total
Balance, December 31, 2019$206 $2,055,407 $7,909,872 $(7,624,241)$(16,912)$16,912 $2,341,244 
Net income— — 339,778 — — — 339,778 
Deferred compensation activity, net— — — — 202 (202)— 
Purchase of common stock for treasury— — — (216,582)— — (216,582)
Equity-based compensation— 21,926 — — — — 21,926 
Proceeds from Options exercised— 126,046 — — — — 126,046 
Treasury stock issued upon option exercise and restricted share vesting— (51,756)— 51,756 — — — 
Balance, June 30, 2020$206 $2,151,623 $8,249,650 $(7,789,067)$(16,710)$16,710 $2,612,412 

We repurchased approximately 58 shares of our common stock during the six months ended June 30, 2020, all of which were repurchased in the first quarter. Approximately 15 and 114 shares were issued from the treasury account during the three and six months ended June 30, 2020, respectively, in settlement of Option exercises and vesting of RSUs. 
8.    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 and six months ended June 30, 2021 and 2020:
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Warranty reserve, beginning of period$124,836 $107,032 $119,638 $108,053 
Provision21,760 15,677 44,089 28,098 
Payments(19,094)(11,490)(36,225)(24,932)
Warranty reserve, end of period$127,502 $111,219 $127,502 $111,219 

10

Table of Contents
NVR, Inc.
Notes to Condensed Consolidated Financial Statements
(dollars and shares in thousands, except per share data)
(unaudited)
9.    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.
11

Table of Contents
NVR, Inc.
Notes to Condensed Consolidated Financial Statements
(dollars and shares in thousands, except per share data)
(unaudited)
The following tables present segment revenues, profit and assets with reconciliations to the amounts reported for the consolidated enterprise, where applicable:
 Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Revenues:
Homebuilding Mid Atlantic$1,048,416 $839,845 $1,984,556 $1,613,903 
Homebuilding North East193,245 98,219 355,438 204,355 
Homebuilding Mid East478,179 299,955 903,132 620,650 
Homebuilding South East504,720 350,739 945,145 705,557 
Mortgage Banking59,038 31,610 136,773 58,431 
Total consolidated revenues$2,283,598 $1,620,368 $4,325,044 $3,202,896 

Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Income before taxes:
Homebuilding Mid Atlantic$174,481 $98,067 $303,548 $179,740 
Homebuilding North East21,510 6,658 36,737 16,809 
Homebuilding Mid East59,887 27,302 108,828 58,466 
Homebuilding South East78,919 42,765 135,584 89,909 
Mortgage Banking40,372 15,692 99,934 27,571 
Total segment profit before taxes375,169 190,484 684,631 372,495 
Reconciling items:
Contract land deposit recoveries (impairments) (1)7,178 (460)13,374 (36,075)
Equity-based compensation expense (13,379)(14,434)(27,850)(21,926)
Corporate capital allocation (2)63,032 59,870 124,583 116,521 
Unallocated corporate overhead(33,668)(23,288)(73,804)(60,927)
Consolidation adjustments and other (3)31,944 6,803 34,330 16,456 
Corporate interest expense(12,811)(9,144)(25,793)(15,338)
Reconciling items sub-total42,296 19,347 44,840 (1,289)
Consolidated income before taxes$417,465 $209,831 $729,471 $371,206 
(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)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 June 30,Six Months Ended June 30,
 2021202020212020
Corporate capital allocation charge:
Homebuilding Mid Atlantic$31,135 $31,581 $61,731 $61,336 
Homebuilding North East6,457 5,790 12,495 11,349 
Homebuilding Mid East11,066 9,687 21,690 19,050 
Homebuilding South East14,374 12,812 28,667 24,786 
Total$63,032 $59,870 $124,583 $116,521 
12

Table of Contents
NVR, Inc.
Notes to Condensed Consolidated Financial Statements
(dollars and shares in thousands, except per share data)
(unaudited)
(3)    The increase in consolidation adjustments and other for the three and six month periods of 2021 compared to the 2020 period relates primarily to the significant increase in lumber prices during the second half of 2020 through the first half of 2021. Our reportable segments' results include the intercompany profits of our production facilities, which were negatively impacted by the increase in lumber costs. The increase in lumber costs related to homes not yet settled is reversed through the consolidation adjustment. As the homes currently in inventory are settled in subsequent quarters, our consolidated homebuilding margins will be negatively impacted by the higher lumber costs.
    

 June 30, 2021December 31, 2020
Assets:
Homebuilding Mid Atlantic$1,196,515 $1,140,910 
Homebuilding North East246,296 202,591 
Homebuilding Mid East442,110 377,448 
Homebuilding South East566,547 494,295 
Mortgage Banking410,956 555,278 
Total segment assets2,862,424 2,770,522 
Reconciling items:
Cash and cash equivalents2,597,565 2,714,720 
Deferred taxes137,037 132,980 
Intangible assets and goodwill49,601 49,678 
Operating lease right-of-use assets61,740 53,110 
Finance lease right-of-use assets14,973 15,772 
Contract land deposit reserve(38,831)(52,205)
Consolidation adjustments and other169,927 92,564 
Reconciling items sub-total2,992,012 3,006,619 
Consolidated assets$5,854,436 $5,777,141 

10.    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 June 30, 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.
June 30, 2021December 31, 2020
Estimated Fair Values:
3.95% Senior Notes due 2022$620,220 $630,000 
3.00% Senior Notes due 2030953,730 982,620 
Total$1,573,950 $1,612,620 
Carrying Values:
3.95% Senior Notes due 2022$599,238 $598,925 
3.00% Senior Notes due 2030917,592 918,470 
Total$1,516,830 $1,517,395 
13

Table of Contents
NVR, Inc.
Notes to Condensed Consolidated Financial Statements
(dollars and shares in thousands, except per share data)
(unaudited)
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 June 30, 2021, there were rate lock commitments to extend credit to borrowers aggregating $1,130,241 and open forward delivery contracts aggregating $1,263,416, 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 June 30, 2021, the fair value of loans held for sale of $344,680 included on the accompanying condensed consolidated balance sheet has been increased by $4,699 from the aggregate principal balance of $339,981. 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.
14

Table of Contents
NVR, Inc.
Notes to Condensed Consolidated Financial Statements
(dollars and shares in thousands, except per share data)
(unaudited)
The fair value measurement of NVRM's undesignated derivative instruments was as follows:
June 30, 2021December 31, 2020
Rate lock commitments:
Gross assets$15,267 $10,844 
Gross liabilities539 87 
Net rate lock commitments$14,728 $10,757 
Forward sales contracts:
Gross assets$335 $1 
Gross liabilities1,939 5,217 
Net forward sales contracts$(1,604)$(5,216)
As of June 30, 2021 and 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" on the accompanying condensed consolidated balance sheets.
The fair value measurement adjustment as of June 30, 2021 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$1,130,241 $4,469 $1,942 $8,317 $— $14,728