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 March 31, 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) (State or other jurisdiction of incorporation or ...

PART I [Business](index=4&type=section&id=Item%201.%20Business) NVR, Inc. is a major US homebuilder and mortgage banker, focusing on pre-sold homes and minimizing land ownership risk [General Business Operations](index=4&type=section&id=General%20Business%20Operations) NVR primarily constructs and sells pre-sold homes, complemented by mortgage banking, minimizing land ownership risk via Lot Purchase Agreements - NVR's primary business is the construction and sale of homes, primarily on a pre-sold basis, supplemented by mortgage banking and title services[14](index=14&type=chunk) - The company operates in 33 metropolitan areas across 14 states and Washington, D.C., with a significant concentration of its 2020 business in the Washington, D.C. and Baltimore, MD metropolitan areas[15](index=15&type=chunk) - A core strategy is to avoid direct land ownership and development risks by acquiring finished lots through Lot Purchase Agreements (LPAs), which require forfeitable deposits typically up to **10% of the purchase price**[16](index=16&type=chunk)[17](index=17&type=chunk) [Homebuilding](index=5&type=section&id=Homebuilding) The homebuilding segment offers diverse products across four regions, with average settlement prices around **$370,800** and backlog increasing to **$4.6 billion** Homebuilding Segments by Geographic Region | Segment | Geographic Regions | | :--- | :--- | | **Mid Atlantic** | Maryland, Virginia, West Virginia, Delaware and Washington, D.C. | | **North East** | New Jersey and Eastern Pennsylvania | | **Mid East** | New York, Ohio, Western Pennsylvania, Indiana and Illinois | | **South East** | North Carolina, South Carolina, Florida and Tennessee | Backlog and Cancellation Rate (2018-2020) | Metric | 2020 | 2019 | 2018 | | :--- | :--- | :--- | :--- | | **Backlog (Units)** | 11,549 | 8,233 | N/A | | **Backlog (Value)** | ~$4.6 billion | ~$3.1 billion | N/A | | **Cancellation Rate (%)** | 14.9% | 14.6% | 14.5% | - The average price of homes settled was **$370,800** in 2020, a slight increase from **$367,100** in 2019[21](index=21&type=chunk) [Mortgage Banking](index=6&type=section&id=Mortgage%20Banking) NVRM, the mortgage banking segment, primarily serves NVR's homebuilding customers, closing **$5.3 billion** in loans and selling them into the secondary market Mortgage Banking Key Metrics (2019-2020) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | **Loans Closed (Count)** | ~16,700 | ~16,500 | | **Loans Closed (Principal)** | ~$5.3 billion | ~$5.2 billion | | **Mortgage Pipeline (Principal)** | ~$3.4 billion | ~$2.2 billion | | **Cancellation Rate (%)** | ~40% | ~36% | - NVRM sells all originated mortgage loans to investors in the secondary markets, including FNMA, FHLMC, and GNMA, on a servicing-released basis[33](index=33&type=chunk) [Human Capital](index=6&type=section&id=Human%20Capital) NVR employed approximately **6,100** full-time staff in 2020, emphasizing internal promotion and adapting operations with safety protocols during the pandemic - Total full-time employees increased to approximately **6,100** in 2020 from **5,700** in 2019[37](index=37&type=chunk) - The company's compensation philosophy is designed to motivate and retain highly qualified employees, and it strives to promote from within, contributing to the long tenure of its leadership[38](index=38&type=chunk)[39](index=39&type=chunk) - During the COVID-19 pandemic, NVR implemented safety protocols, including social distancing, virtual tours, and remote work, while also increasing employee compensation and benefits[40](index=40&type=chunk) [Risk Factors](index=8&type=section&id=Item%201A.%20Risk%20Factors) NVR faces significant risks from economic downturns, interest rate fluctuations, operational challenges, regulatory changes, and COVID-19 impacts - **Business and Industry Risks:** The company is exposed to economic downturns, interest rate movements, inflation, and competition; availability of mortgage financing is critical[47](index=47&type=chunk)[48](index=48&type=chunk)[54](index=54&type=chunk)[58](index=58&type=chunk) - **Operational Risks:** Key risks include inability to secure adequate lots, material and labor shortages, reliance on subcontractors, and product liability claims[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) - **Regulatory and External Risks:** The business is subject to government regulations, intense mortgage industry scrutiny, and significant uncertainty from the COVID-19 pandemic regarding demand and supply chains[75](index=75&type=chunk)[78](index=78&type=chunk)[81](index=81&type=chunk) - **Financial and IT Risks:** The company faces risks related to indebtedness, credit market volatility impacting financing access, and cybersecurity threats to confidential information[70](index=70&type=chunk)[71](index=71&type=chunk)[73](index=73&type=chunk) [Unresolved Staff Comments](index=16&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments - None[89](index=89&type=chunk) [Properties](index=16&type=section&id=Item%202.%20Properties) NVR leases its corporate offices and seven production facilities, owning one facility in Ohio, with plant utilization increasing to **56%** in 2020 - Corporate offices are located in a leased **61,000 square foot** space in Reston, Virginia, with the lease expiring in April 2026[90](index=90&type=chunk) - NVR leases seven production facilities and owns one, with total plant utilization increasing to **56%** in 2020 from **49%** in 2019[91](index=91&type=chunk) [Legal Proceedings](index=16&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various litigation matters arising in the ordinary course of business, not expected to materially affect its financial condition - Management believes that ongoing litigation is not expected to have a material adverse effect on the company's financial condition[93](index=93&type=chunk) [Mine Safety Disclosures](index=17&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[94](index=94&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=17&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) NVR's common stock trades on the NYSE; the company has never paid cash dividends but repurchased **38,735 shares** for **$154.5 million** in Q4 2020 - The company has never paid a cash dividend on its common stock and does not intend to in the future[97](index=97&type=chunk) Common Stock Repurchases (Q4 2020) | Period | Total Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares Remaining for Purchase | | :--- | :--- | :--- | :--- | | Oct 1 - 31, 2020 | — | $ — | $400,559,000 | | Nov 1 - 30, 2020 | 1,210 | $3,998.84 | $395,721,000 | | Dec 1 - 31, 2020 | 37,525 | $3,988.23 | $546,062,000 | | **Total Q4 2020** | **38,735** | **$3,988.56** | **N/A** | [Selected Financial Data](index=19&type=section&id=Item%206.%20Selected%20Financial%20Data) NVR demonstrated consistent growth from 2016-2020, with net income increasing to **$901.2 million** and total assets growing to **$5.8 billion** by 2020 Selected Financial Data (2016-2020, in thousands except per share data) | Metric | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Homebuilding Revenues ($)** | $7,328,889 | $7,220,844 | $7,004,304 | $6,175,521 | $5,709,223 | | **Net Income ($)** | $901,248 | $878,539 | $797,197 | $537,521 | $425,262 | | **Diluted EPS ($)** | $230.11 | $221.13 | $194.80 | $126.77 | $103.61 | | **Total Assets ($)** | $5,777,141 | $3,809,815 | $3,165,933 | $2,989,279 | $2,643,943 | | **Shareholders' Equity ($)** | $3,103,074 | $2,341,244 | $1,808,562 | $1,605,492 | $1,304,441 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) NVR's 2020 financial performance was resilient, with revenues growing to **$7.5 billion** and net income to **$901.2 million**, supported by strong demand and liquidity [Overview](index=20&type=section&id=Overview) Despite initial COVID-19 disruptions, NVR saw strong demand rebound in 2020, driven by low mortgage rates and controlling **103,000 lots** via LPAs - The COVID-19 pandemic caused an initial decrease in new orders and an increase in cancellations in March and April 2020, but demand strengthened significantly for the remainder of the year due to low mortgage rates and low resale inventory[107](index=107&type=chunk) Lots Controlled as of December 31, 2020 | Control Method | Lots Controlled (Units) | | :--- | :--- | | **Lot Purchase Agreements (LPAs)** | ~103,000 | | **Joint Ventures (JVs)** | ~5,200 | | **Land Under Development** | ~500 | [Homebuilding Operations](index=22&type=section&id=Homebuilding%20Operations) Consolidated homebuilding revenues increased **2%** in 2020, with new orders surging **18%** and the South East segment showing strong profit growth Consolidated Homebuilding Performance (2019 vs. 2020) | Metric | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | **Revenues ($M)** | $7,328.9M | $7,220.8M | +1.5% | | **Gross Profit Margin (%)** | 19.0% | 19.0% | 0% | | **New Orders (units)** | 23,082 | 19,536 | +18.1% | | **Average New Order Price ($K)** | $380.1K | $368.4K | +3.2% | | **Settlements (units)** | 19,766 | 19,668 | +0.5% | | **Backlog (units)** | 11,549 | 8,233 | +40.3% | - Selling, general and administrative (SG&A) expenses decreased by **4%** in 2020, primarily due to lower equity-based compensation expense as stock options granted in 2014 became fully vested in 2019[126](index=126&type=chunk) - The South East segment's profit increased **32%** due to a **23%** revenue increase and higher gross margins, while the Mid Atlantic segment's profit decreased **9%** from fewer settlements[137](index=137&type=chunk)[143](index=143&type=chunk) [Mortgage Banking Segment](index=29&type=section&id=Mortgage%20Banking%20Segment) The mortgage banking segment's profit increased **36%** to **$143.3 million** in 2020, driven by a **3%** rise in loan volume and higher secondary marketing gains Mortgage Banking Performance (2019 vs. 2020) | Metric | 2020 | 2019 | % Change | | :--- | :--- | :--- | :--- | | **Segment Profit ($M)** | $143.3M | $105.3M | +36.1% | | **Loan Closing Volume ($M)** | $5,317.8M | $5,164.7M | +3.0% | | **Mortgage Banking Fees ($M)** | $208.0M | $167.8M | +24.0% | | **Capture Rate (%)** | 90% | 90% | 0% | - The increase in segment profit was primarily attributable to higher mortgage banking fees resulting from increased loan volume and an increase in secondary marketing gains on sales of loans[150](index=150&type=chunk) - The reserve for losses on originated mortgage loans increased to **$20.5 million** at year-end 2020 from **$18.5 million** in 2019[153](index=153&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) NVR maintained strong liquidity, ending 2020 with **$2.8 billion** in cash, bolstered by operations and **$900 million** in new senior notes - The company ended 2020 with a strong liquidity position of approximately **$2.8 billion** in cash and cash equivalents[159](index=159&type=chunk) - In 2020, NVR issued a total of **$900 million** in 3.00% Senior Notes due 2030, raising net proceeds of approximately **$918.8 million**[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk) Cash Flow Summary (in millions) | Cash Flow Activity | 2020 ($) | 2019 ($) | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $925.3 | $866.5 | | **Net Cash from Investing Activities** | ($3.9) | ($13.3) | | **Net Cash from Financing Activities** | $727.6 | ($424.7) | | **Net Increase in Cash** | $1,649.0 | $428.6 | - During 2020, the company repurchased **93,346 shares** of common stock for an aggregate price of **$371.1 million**[173](index=173&type=chunk) [Critical Accounting Policies](index=36&type=section&id=Critical%20Accounting%20Policies) NVR's critical accounting policies involve significant estimates for homebuilding inventory, land deposit impairment, warranty accruals, and equity-based compensation - **Homebuilding Inventory:** Valued at the lower of cost or market, with impairment assessed based on contract price versus cost for sold inventory and comparable sales versus total expected cost for unsold inventory[190](index=190&type=chunk)[191](index=191&type=chunk) - **Contract Land Deposits:** An allowance for losses is maintained based on a quarterly, community-by-community analysis of factors like sales pace, profit margins, and developer performance to determine if deposits are likely to be forfeited[193](index=193&type=chunk)[194](index=194&type=chunk) - **Warranty/Product Liability Accruals:** Reserves are established based on management's judgment of historical experience, cost of corrective action, and legal consultations[199](index=199&type=chunk) - **Equity-Based Compensation:** Expense is recognized based on the grant-date fair value, calculated using the Black-Scholes model for options, which requires management judgment on inputs like expected term and volatility[200](index=200&type=chunk)[201](index=201&type=chunk) [Quantitative and Qualitative Disclosure About Market Risk](index=38&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) NVR's primary market risk is interest rate risk, affecting both homebuilding and mortgage banking, mitigated in mortgage operations by forward sales contracts - The primary market risk is interest rate risk, which can adversely affect demand for homes and the value of financial instruments[207](index=207&type=chunk) - The mortgage banking segment is exposed to interest rate risk from originating loans and providing rate lock commitments, which it mitigates by using forward sales contracts[209](index=209&type=chunk) Interest Rate Sensitive Liabilities (as of Dec 31, 2020) | Instrument | Carrying Value ($) | Fair Value ($) | | :--- | :--- | :--- | | **Fixed Rate Obligations (Senior Notes)** | $1,500,000,000 | $1,612,620,000 | [Financial Statements and Supplementary Data](index=40&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates by reference the company's consolidated financial statements, filed as part of the report under Item 15 - The financial statements listed in Item 15 are filed as part of this report[213](index=213&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=40&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There were no changes in or disagreements with accountants on accounting and financial disclosure - None[214](index=214&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2020 - Management concluded that disclosure controls and procedures were effective as of December 31, 2020[216](index=216&type=chunk) - Management concluded that internal control over financial reporting was effective as of December 31, 2020, based on the COSO framework (2013)[217](index=217&type=chunk) [Other Information](index=40&type=section&id=Item%209B.%20Other%20Information) There is no other information to report - None[219](index=219&type=chunk) PART III [Directors, Executive Officers, and Corporate Governance](index=40&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%2C%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the 2021 Proxy Statement[221](index=221&type=chunk) [Executive Compensation](index=40&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the 2021 Proxy Statement[222](index=222&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=41&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) As of December 31, 2020, **611,024** securities were issuable under equity compensation plans at a weighted-average exercise price of **$2,229.01** Equity Compensation Plan Information (as of Dec 31, 2020) | Plan Category | Securities to be Issued Upon Exercise (Units) | Weighted-Average Exercise Price ($) | Securities Remaining for Future Issuance (Units) | | :--- | :--- | :--- | :--- | | **Approved by Security Holders** | 611,024 | $2,229.01 | 281,280 | | **Not Approved by Security Holders** | — | — | — | | **Total** | **611,024** | **$2,229.01** | **281,280** | [Certain Relationships and Related Transactions, and Director Independence](index=41&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related party transactions and director independence is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the 2021 Proxy Statement[224](index=224&type=chunk) [Principal Accountant Fees and Services](index=41&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding fees paid to and services provided by the principal accountant is incorporated by reference from the 2021 Proxy Statement - Information is incorporated by reference from the 2021 Proxy Statement[225](index=225&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=42&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all documents filed as part of the Form 10-K report, including consolidated financial statements and various exhibits - This item lists all financial statements and exhibits filed with the report, including the Report of Independent Registered Public Accounting Firm and various corporate governance and financial documents[228](index=228&type=chunk)

(Mark One) Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 11700 Plaza America Drive, Suite 500 Reston, Virginia 20190 For the transition period from ____ to ____ (703) 956-4000 Commission File Number: 1-12378 NVR, Inc. For the quarterly period ended September 30, 2020 (Exact name of registrant a ...

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, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission File Number: 1-12378 NVR, Inc. (Exact name of registrant as specified in its charter) Virginia 54-1394360 (State or other jurisdiction ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 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 Washington, D.C. 20549 FORM 10-Q NVR, Inc. (Exact name of registrant as specified in its charter) Virginia 54-1394360 (State or other jurisdiction ...

Part I [Business](index=4&type=section&id=Item%201.%20Business) NVR is a major US homebuilder that minimizes risk through a pre-sold construction model and a conservative lot acquisition strategy - NVR's primary business is the construction and sale of single-family homes, townhomes, and condominiums, which are mainly built on a **pre-sold basis**[13](index=13&type=chunk) - The company operates under three main trade names: **Ryan Homes**, **NVHomes**, and **Heartland Homes**[14](index=14&type=chunk) - A key business strategy is to avoid direct land development by acquiring finished lots through **Lot Purchase Agreements**, which require forfeitable deposits, thereby minimizing financial risk[15](index=15&type=chunk)[16](index=16&type=chunk) - NVR operates a mortgage banking subsidiary, NVRM, which originates loans almost exclusively for its homebuilding customers and sells all closed loans into the secondary market[18](index=18&type=chunk)[31](index=31&type=chunk) Homebuilding Segments and Geographic Regions | Segment | Geographic Regions | | :--- | :--- | | **Mid Atlantic** | Maryland, Virginia, West Virginia, Delaware and Washington, D.C. | | **North East** | New Jersey and Eastern Pennsylvania | | **Mid East** | New York, Ohio, Western Pennsylvania, Indiana and Illinois | | **South East** | North Carolina, South Carolina, Florida and Tennessee | Backlog and Cancellation Rates (2017-2019) | Metric | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | **Backlog (Units)** | 8,233 | 8,365 | 8,531 | | **Backlog (Value)** | ~$3.1 billion | ~$3.2 billion | N/A | | **Cancellation Rate** | 14.6% | 14.5% | 14.0% | [Risk Factors](index=7&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from economic downturns, interest rate changes, mortgage market disruptions, and supply chain issues - The business is highly sensitive to economic conditions such as employment levels, consumer confidence, and **interest rates**, which can significantly impact demand for new homes[42](index=42&type=chunk)[43](index=43&type=chunk) - A significant portion of revenue is concentrated in the Washington, D.C. and Baltimore, MD metropolitan areas, accounting for approximately **27%** and **11%** of 2019 homebuilding revenues, respectively[48](index=48&type=chunk) - The mortgage banking business depends on selling originated loans into the secondary market; disruptions could impair this ability[50](index=50&type=chunk)[51](index=51&type=chunk) - The company's lot acquisition strategy involves forfeitable deposits, and adverse market changes could lead to financial losses[52](index=52&type=chunk) - The homebuilding and mortgage industries are highly competitive and subject to extensive government regulations that can increase costs[59](index=59&type=chunk)[62](index=62&type=chunk)[64](index=64&type=chunk) [Unresolved Staff Comments](index=11&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None[76](index=76&type=chunk) [Properties](index=11&type=section&id=Item%202.%20Properties) NVR leases its corporate office and most production facilities, with plant utilization at 49% of capacity in 2019 - Corporate offices are leased in Reston, Virginia, with the current lease expiring in April 2026[77](index=77&type=chunk) - The company operates seven leased production facilities and owns one facility; total plant utilization was **49%** in 2019, down from 52% in 2018[78](index=78&type=chunk) [Legal Proceedings](index=12&type=section&id=Item%203.%20Legal%20Proceedings) Ongoing litigation is not expected to materially impact the company's financial condition - Management does not expect ongoing litigation to have a material adverse effect on the company's financial condition[80](index=80&type=chunk) [Mine Safety Disclosures](index=12&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[81](index=81&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=12&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) NVR's stock trades on the NYSE, the company does not pay dividends, and it actively repurchased shares in Q4 2019 - The company's common stock trades on the NYSE under the symbol "**NVR**"[83](index=83&type=chunk) - NVR has never paid a cash dividend and does not intend to in the future[84](index=84&type=chunk) Common Stock Repurchases (Q4 2019) | Period | Total Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares Remaining for Purchase | | :--- | :--- | :--- | :--- | | Oct 1-31, 2019 | 17,432 | $3,625.92 | $286,809,000 | | Nov 1-30, 2019 | 42,088 | $3,556.51 | $437,122,000 | | Dec 1-31, 2019 | 31,766 | $3,777.03 | $317,141,000 | | **Total Q4** | **91,286** | **$3,646.51** | **N/A** | Comparison of 5-Year Cumulative Total Return | Index | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **NVR, Inc.** | $100 | $129 | $131 | $275 | $191 | $299 | | **S&P 500** | $100 | $101 | $114 | $138 | $132 | $174 | | **Dow Jones US Home Construction** | $100 | $110 | $103 | $181 | $124 | $183 | [Selected Financial Data](index=14&type=section&id=Item%206.%20Selected%20Financial%20Data) The company demonstrates consistent five-year growth in revenues, net income, and earnings per share Selected Consolidated Financial Data (2015-2019, in thousands except per share data) | Metric | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Homebuilding Revenues** | $7,220,844 | $7,004,304 | $6,175,521 | $5,709,223 | $5,065,200 | | **Net Income** | $878,539 | $797,197 | $537,521 | $425,262 | $382,927 | | **Diluted EPS** | $221.13 | $194.80 | $126.77 | $103.61 | $89.99 | | **Total Assets** | $3,809,815 | $3,165,933 | $2,989,279 | $2,643,943 | $2,511,718 | | **Shareholders' Equity** | $2,341,244 | $1,808,562 | $1,605,492 | $1,304,441 | $1,239,165 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2019, revenue and net income grew due to favorable market conditions, increased unit settlements, and improved mortgage banking profits - As of December 31, 2019, the company controlled approximately **101,300 lots** under Lot Purchase Agreements, with total deposits of about **$445 million**[96](index=96&type=chunk) Key Financial Results (2019 vs. 2018, $ in thousands) | Metric | 2019 | 2018 | % Change | | :--- | :--- | :--- | :--- | | **Consolidated Revenues** | $7,388,664 | $7,163,674 | 3% | | **Net Income** | $878,539 | $797,197 | 10% | | **Diluted EPS** | $221.13 | $194.80 | 14% | | **Homebuilding Gross Profit Margin** | 19.0% | 18.7% | +0.3 p.p. | | **New Orders (Units)** | 19,536 | 18,281 | 7% | [Results of Operations](index=15&type=section&id=Results%20of%20Operations) Revenue growth was driven by a 7% increase in settled units, while a lower effective tax rate also contributed to higher net income - The consolidated effective tax rate was **14.36%** in 2019, down from 16.94% in 2018, primarily due to the retroactive reinstatement of certain energy tax credits[139](index=139&type=chunk) Consolidated Homebuilding Operations (2019 vs. 2018, $ in thousands) | Metric | 2019 | 2018 | | :--- | :--- | :--- | | **Revenues** | $7,220,844 | $7,004,304 | | **Gross Profit Margin %** | 19.0% | 18.7% | | **New Orders (units)** | 19,536 | 18,281 | | **Average New Order Price** | $368,400 | $376,300 | | **Settlements (units)** | 19,668 | 18,447 | | **Average Settlement Price** | $367,100 | $379,700 | Mortgage Banking Operations (2019 vs. 2018, $ in thousands) | Metric | 2019 | 2018 | | :--- | :--- | :--- | | **Total Principal (Loan Closing Volume)** | $5,164,725 | $4,829,406 | | **Segment Profit** | $105,292 | $93,462 | | **Capture Rate** | 90% | 88% | [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position through cash flow and debt facilities, funding significant share repurchases in 2019 - NVR has **$600 million** in 3.95% Senior Notes due 2022 and a **$200 million** unsecured revolving credit facility, under which no borrowings were outstanding at year-end[143](index=143&type=chunk)[147](index=147&type=chunk) - The mortgage banking subsidiary (NVRM) has a **$150 million** revolving mortgage repurchase facility, which had no outstanding balance at year-end 2019[148](index=148&type=chunk)[149](index=149&type=chunk) - In 2019, the company repurchased 220,965 shares of its common stock for an aggregate price of **$698.4 million**[150](index=150&type=chunk) - Net cash provided by operating activities was **$866.5 million** in 2019, while net cash used in financing activities was **$424.7 million**, primarily for stock repurchases[151](index=151&type=chunk) [Off-Balance Sheet Arrangements](index=29&type=section&id=Off-Balance%20Sheet%20Arrangements) The company's primary off-balance sheet arrangements involve lot purchase agreements and mortgage rate lock commitments - The company controlled approximately 104,900 lots with an aggregate purchase price of **~$10 billion**, with its risk of loss limited to deposits and commitments of **~$656.5 million**[157](index=157&type=chunk) - As of December 31, 2019, NVRM had contractual commitments to extend credit to borrowers aggregating **$581.1 million** and open forward delivery contracts to hedge this risk aggregating **$986.0 million**[160](index=160&type=chunk)[161](index=161&type=chunk) [Critical Accounting Policies](index=30&type=section&id=Critical%20Accounting%20Policies) Management's critical accounting policies require significant estimates for inventory valuation, impairment, and various liability accruals - Key estimates include inventory valuation, impairment of contract land deposits, warranty reserves, equity-based compensation expense, and the mortgage repurchase reserve[164](index=164&type=chunk) - Contract land deposits are evaluated for impairment quarterly on a community-by-community basis, considering sales pace, profitability, and developer performance[168](index=168&type=chunk)[170](index=170&type=chunk) - Equity-based compensation expense is calculated using the **Black-Scholes model**, which requires management judgment for inputs like expected term and volatility[177](index=177&type=chunk)[179](index=179&type=chunk) [Quantitative and Qualitative Disclosure About Market Risk](index=33&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) The company's primary market risk is interest rate sensitivity, which is managed through fixed-rate debt and hedging activities - The company's main market risk is **interest rate risk**, affecting both its homebuilding debt obligations and its mortgage banking lending activities[184](index=184&type=chunk) - The mortgage banking segment uses **forward delivery contracts** to mitigate interest rate risk on its loan portfolio and rate lock commitments[187](index=187&type=chunk) Financial Instruments Maturities and Fair Value (as of Dec 31, 2019, in thousands) | Instrument | 2020 | 2021 | 2022 | Total | Fair Value | | :--- | :--- | :--- | :--- | :--- | :--- | | **Mortgage loans held for sale** | $485,106 | — | — | $485,106 | $492,125 | | **Interest-bearing deposits** | $1,043,205 | — | — | $1,043,205 | $1,043,205 | | **Fixed rate obligations (Senior Notes)** | $— | — | $600,000 | $600,000 | $626,520 | [Financial Statements and Supplementary Data](index=35&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates the company's consolidated financial statements and supplementary data by reference - The financial statements listed in Item 15 are filed as part of this report[191](index=191&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=35&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants - None[192](index=192&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective - Management concluded that disclosure controls and procedures were **effective** as of December 31, 2019[194](index=194&type=chunk) - Management concluded that internal control over financial reporting was **effective** as of December 31, 2019[195](index=195&type=chunk) - KPMG LLP issued an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting[196](index=196&type=chunk) [Other Information](index=35&type=section&id=Item%209B.%20Other%20Information) The company reports no other information - None[197](index=197&type=chunk) Part III [Directors, Executive Officers, and Corporate Governance](index=35&type=section&id=Item%2010.%20Directors,%20Executive%20Officers,%20and%20Corporate%20Governance) This section identifies the executive officers, with other required information incorporated by reference from the Proxy Statement - Additional information required by this item is incorporated by reference from the company's Proxy Statement[204](index=204&type=chunk) Executive Officers of the Registrant | Name | Age | Position | | :--- | :--- | :--- | | Paul C. Saville | 64 | President and Chief Executive Officer | | Daniel D. Malzahn | 50 | Senior Vice President, Chief Financial Officer and Treasurer | | Jeffrey D. Martchek | 54 | President of Homebuilding Operations | | Paul W. Praylo | 48 | Senior Vice President and Chief Operating Officer | | Eugene J. Bredow | 50 | President of NVRM | [Executive Compensation](index=36&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's Proxy Statement - Information is incorporated by reference from the Proxy Statement[205](index=205&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=36&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section provides details on equity compensation plans and incorporates other ownership information by reference - Other information required by this item is incorporated by reference from the Proxy Statement[206](index=206&type=chunk) Equity Compensation Plan Information (as of Dec 31, 2019) | Plan Category | Securities to be Issued Upon Exercise | Weighted-Average Exercise Price | Securities Remaining for Future Issuance | | :--- | :--- | :--- | :--- | | **Approved by Security Holders** | 753,796 | $2,007.52 | 287,291 | | **Not Approved by Security Holders** | 10,504 | $703.00 | — | | **Total** | **764,300** | **$1,989.60** | **287,291** | [Certain Relationships and Related Transactions, and Director Independence](index=36&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Information on related transactions and director independence is incorporated by reference from the Proxy Statement - Information is incorporated by reference from the Proxy Statement[208](index=208&type=chunk) [Principal Accountant Fees and Services](index=36&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the Proxy Statement - Information is incorporated by reference from the Proxy Statement[209](index=209&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=38&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all documents, including financial statements and various exhibits, filed as part of the report - This section provides a comprehensive list of all financial statements, schedules, and exhibits filed with the Form 10-K[211](index=211&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 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. (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) ...

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, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission File Number: 1-12378 NVR, Inc. (Exact name of registrant as specified in its charter) Virginia 54-1394360 (State or other jurisdiction ...

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 March 31, 2019 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) (State or other jurisdiction of incorporation or ...

PART I [Business](index=4&type=section&id=Item%201.%20Business) NVR, Inc. operates as a major US homebuilder with two primary business segments: homebuilding and mortgage banking - The company's primary business is the construction and sale of single-family homes, townhomes, and condominiums, which are mainly constructed on a pre-sold basis[13](index=13&type=chunk) - NVR operates under three main trade names: **Ryan Homes** (for first-time and first-time move-up buyers), **NVHomes**, and **Heartland Homes** (for move-up and luxury buyers)[14](index=14&type=chunk) - A core business strategy is to avoid direct land ownership and development by acquiring finished building lots from third-party developers through Lot Purchase Agreements, which require forfeitable deposits typically up to **10% of the purchase price**[15](index=15&type=chunk)[16](index=16&type=chunk) Homebuilding Geographic Segments | Segment | Geographic Regions | | :--- | :--- | | **Mid Atlantic** | Maryland, Virginia, West Virginia, Delaware and Washington, D.C. | | **North East** | New Jersey and Eastern Pennsylvania | | **Mid East** | New York, Ohio, Western Pennsylvania, Indiana and Illinois | | **South East** | North Carolina, South Carolina, Florida and Tennessee | Backlog Summary (2017-2018) | Metric | Dec 31, 2018 | Dec 31, 2017 | | :--- | :--- | :--- | | **Units** | 8,365 | 8,531 | | **Value** | ~$3.2 billion | ~$3.3 billion | Mortgage Banking Loan Closings (2017-2018) | Metric | 2018 | 2017 | | :--- | :--- | :--- | | **Loans Closed** | ~15,100 | ~13,100 | | **Aggregate Principal** | ~$4.8 billion | ~$4.2 billion | [Risk Factors](index=7&type=section&id=Item%201A.%20Risk%20Factors) The company's business is subject to significant risks inherent in the residential construction and mortgage banking industries - Demand for new homes is highly sensitive to economic conditions such as employment levels, consumer confidence, and interest rates; an economic downturn could materially adversely affect business results[42](index=42&type=chunk) - The business is significantly dependent on the Washington, D.C. and Baltimore, MD metropolitan areas, which accounted for approximately **30%** and **10%** of 2018 homebuilding revenues, respectively[47](index=47&type=chunk) - The availability of suitable mortgage financing for customers is critical; tightening credit standards could impair home affordability, lower demand, and limit the ability to deliver the existing backlog[48](index=48&type=chunk) - Inventory risk is substantial, as the market value of building lots and housing inventories can fluctuate significantly; adverse market changes could lead to the forfeiture of land contract deposits or inventory impairments[51](index=51&type=chunk) - The mortgage industry faces increasing regulation, which may negatively impact the mortgage loan origination business through lower demand, decreased revenue, and increased operating costs[63](index=63&type=chunk) - The homebuilding industry is highly competitive, with competition from numerous builders and the existing home resale market based on price, location, design, quality, and service[65](index=65&type=chunk) [Unresolved Staff Comments](index=11&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - There are no unresolved staff comments[75](index=75&type=chunk) [Properties](index=11&type=section&id=Item%202.%20Properties) NVR's corporate offices are leased in Reston, Virginia, and the company operates seven production facilities, with a new one expected in Q2 2019 - Corporate offices are located in a leased **61,000 square foot** space in Reston, Virginia, with the lease expiring in April 2026[76](index=76&type=chunk) - The company leases six production facilities and owns one, with total plant utilization at **52% in 2018** and **47% in 2017**[77](index=77&type=chunk) - A new 20-year lease for a **130,000 square foot** production facility in Richmond, Virginia is expected to commence in the second quarter of 2019[77](index=77&type=chunk) [Legal Proceedings](index=11&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various litigation matters arising in the ordinary course of business, which are not expected to have a material adverse effect - Management believes that ongoing litigation, which arises in the ordinary course of business, is not expected to have a material adverse effect on the company's financial condition[79](index=79&type=chunk) [Mine Safety Disclosures](index=11&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[80](index=80&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=12&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) NVR's common stock is traded on the NYSE, the company has never paid a cash dividend, and repurchased shares in Q4 2018 - The company's common stock is listed on the New York Stock Exchange under the trading symbol "**NVR**"[82](index=82&type=chunk) - NVR has never paid a cash dividend on its common stock and has no current plans to do so[83](index=83&type=chunk) Share Repurchases - Q4 2018 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Oct 1 - 31, 2018 | 8,500 | $2,382.65 | | Nov 1 - 30, 2018 | 32,909 | $2,361.91 | | Dec 1 - 31, 2018 | 37,182 | $2,441.61 | | **Total** | **78,591** | **$2,401.86** | [Selected Financial Data](index=14&type=section&id=Item%206.%20Selected%20Financial%20Data) This section presents a five-year summary of NVR's selected consolidated financial data from 2014 to 2018, showing consistent growth in key metrics Selected Consolidated Income Statement Data (2016-2018) | (in thousands, except per share) | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | **Homebuilding Revenues** | $7,004,304 | $6,175,521 | $5,709,223 | | **Net Income** | $797,197 | $537,521 | $425,262 | | **Diluted EPS** | $194.80 | $126.77 | $103.61 | Selected Consolidated Balance Sheet Data (as of Dec 31) | (in thousands) | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | **Total Assets** | $3,165,933 | $2,989,279 | $2,643,943 | | **Notes and Loans Payable** | $597,681 | $597,066 | $596,455 | | **Shareholders' Equity** | $1,808,562 | $1,605,492 | $1,304,441 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2018, NVR saw a 14% increase in consolidated revenues to $7.16 billion and a 48% rise in net income, despite softening demand in the second half - The company's lot acquisition strategy is centered on avoiding direct land ownership by using Lot Purchase Agreements with forfeitable deposits, typically up to **10% of the aggregate purchase price**[90](index=90&type=chunk) - While demand was strong in the first half of 2018, it softened in the second half due to affordability issues from rising interest rates, leading to pricing and sales pressure[99](index=99&type=chunk) Lots Controlled as of Dec 31, 2018 | Control Method | Lots | | :--- | :--- | | Lot Purchase Agreements | ~95,750 | | Joint Ventures (JVs) | ~6,800 | | Land Under Development | ~500 | Key Financial Results (2018 vs. 2017) | Metric | 2018 | 2017 | % Change | | :--- | :--- | :--- | :--- | | **Consolidated Revenues** | $7,163,674 | $6,305,840 | +14% | | **Net Income** | $797,197 | $537,521 | +48% | | **Diluted EPS** | $194.80 | $126.77 | +54% | | **Homebuilding Gross Margin** | 18.7% | 19.2% | -0.5 p.p. | [Homebuilding Operations](index=16&type=section&id=Homebuilding%20Operations) Homebuilding revenues increased 13% in 2018 to $7.0 billion, driven by higher settlements, though gross profit margin declined due to increased costs - The **13% increase** in 2018 homebuilding revenues was a result of a **16% increase in units settled**, partially offset by a **2% decrease** in the average settlement price[103](index=103&type=chunk) - The gross profit margin decreased from **19.2% in 2017 to 18.7% in 2018**, primarily due to higher lot and certain material costs[104](index=104&type=chunk) - New home demand softened in the second half of 2018, leading to a decrease in new orders of **11% in Q4 2018** compared to Q4 2017[105](index=105&type=chunk) Consolidated Homebuilding Operations Summary | Metric | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | **Revenues ($ thousands)** | $7,004,304 | $6,175,521 | $5,709,223 | | **Gross profit margin %** | 18.7% | 19.2% | 17.5% | | **New orders (units)** | 18,281 | 17,608 | 15,583 | | **Settlements (units)** | 18,447 | 15,961 | 14,928 | | **Backlog (units)** | 8,365 | 8,531 | 6,884 | [Mortgage Banking Segment](index=27&type=section&id=Mortgage%20Banking%20Segment) The mortgage banking segment's profit increased 26% to $93.5 million in 2018, driven by a 14% rise in loan closing volume - Loan closing volume increased by **14% in 2018**, primarily due to a **15% increase** in the number of loans closed, which aligns with the increase in homebuilding settlements[147](index=147&type=chunk) - Segment profit increased by **26% in 2018**, driven by a **22% rise** in mortgage banking fees from higher loan volume and increased secondary marketing gains[148](index=148&type=chunk) Mortgage Banking Operations Summary | Metric | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | **Loan Closing Volume ($ thousands)** | $4,829,406 | $4,229,507 | $3,952,575 | | **Segment Profit ($ thousands)** | $93,462 | $73,959 | $63,711 | | **Capture Rate** | 88% | 88% | 88% | | **Mortgage Banking Fees ($ thousands)** | $159,370 | $130,319 | $113,321 | [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) NVR funds operations through cash, a $200 million credit facility, and $600 million in Senior Notes, generating $723.1 million in operating cash flow in 2018 - The company has **$600 million** in **3.95% Senior Notes** that mature on September 15, 2022[161](index=161&type=chunk) - NVR maintains a **$200 million unsecured revolving credit facility**, which terminates on July 15, 2021, with no borrowings outstanding as of December 31, 2018[164](index=164&type=chunk)[166](index=166&type=chunk) - The mortgage subsidiary, NVRM, has a **$150 million revolving mortgage repurchase facility** to finance loan originations, expiring on July 24, 2019, with no debt outstanding at year-end[167](index=167&type=chunk)[168](index=168&type=chunk) - In 2018, the company repurchased **300,815 shares** of its common stock for an aggregate price of **$846.1 million**; **$415.6 million** remained available under repurchase authorizations at year-end[169](index=169&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Activity | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | **Net Cash from Operating** | $723,126 | $570,354 | $392,988 | | **Net Cash from Investing** | ($8,177) | ($15,193) | ($10,350) | | **Net Cash from Financing** | ($672,258) | ($281,641) | ($417,395) | [Quantitative and Qualitative Disclosure About Market Risk](index=36&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) The company's primary market risk is interest rate risk, managed through hedging strategies in its mortgage banking segment - The homebuilding segment's interest rate risk is primarily related to its **$600 million of fixed-rate Senior Notes** due 2022, which are not significantly impacted by interest rate fluctuations in terms of earnings or cash flows[205](index=205&type=chunk) - The mortgage banking segment is exposed to interest rate risk from its lending activities, managed by using optional or mandatory forward delivery contracts to sell loans into the secondary market, hedging its portfolio of loans held for sale and rate lock commitments[207](index=207&type=chunk) [Financial Statements and Supplementary Data](index=38&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section incorporates by reference the company's consolidated financial statements and supplementary data filed as part of the Form 10-K report - The financial statements listed in Item 15 are filed as part of this report and are incorporated by reference[212](index=212&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=38&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None reported[213](index=213&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2018 - The principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of December 31, 2018[215](index=215&type=chunk) - Management concluded that internal control over financial reporting was effective as of December 31, 2018, based on the COSO framework (2013)[216](index=216&type=chunk) [Other Information](index=38&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None reported[218](index=218&type=chunk) PART III [Directors, Executive Officers, and Corporate Governance](index=38&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%2C%20and%20Corporate%20Governance) This section identifies NVR's executive officers and incorporates further governance details by reference from the Proxy Statement Executive Officers of the Registrant | Name | Age | Positions | | :--- | :--- | :--- | | Paul C. Saville | 63 | President and Chief Executive Officer of NVR | | Daniel D. Malzahn | 49 | Senior Vice President, Chief Financial Officer and Treasurer of NVR | | Jeffrey D. Martchek | 53 | President of Homebuilding Operations of NVR | | Paul W. Praylo | 47 | Senior Vice President and Chief Operating Officer | | Robert W. Henley | 52 | President of NVRM | | Eugene J. Bredow | 49 | Senior Vice President and Chief Administrative Officer | - Other information required by this item is incorporated by reference from the company's Proxy Statement, expected to be filed by April 30, 2019[226](index=226&type=chunk) [Executive Compensation](index=39&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's Proxy Statement - This item is incorporated by reference from the company's Proxy Statement[227](index=227&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=39&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section details securities authorized for issuance under equity compensation plans and incorporates other ownership information by reference Equity Compensation Plan Information (as of Dec 31, 2018) | Plan Category | Securities to be issued upon exercise | Weighted-average exercise price | Securities remaining for future issuance | | :--- | :--- | :--- | :--- | | **Approved by security holders** | 1,007,378 | $1,796.52 | 257,485 | | **Not approved by security holders** | 62,634 | $703.00 | — | | **Total** | **1,070,012** | **$1,732.51** | **257,485** | [Certain Relationships and Related Transactions, and Director Independence](index=39&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the company's Proxy Statement - This item is incorporated by reference from the company's Proxy Statement[231](index=231&type=chunk) [Principal Accountant Fees and Services](index=40&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's Proxy Statement - This item is incorporated by reference from the company's Proxy Statement[232](index=232&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=41&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the documents filed as part of the Form 10-K report, including Consolidated Financial Statements and various exhibits - The documents filed as part of this report include NVR, Inc.'s Consolidated Financial Statements and a list of exhibits[234](index=234&type=chunk) Financial Statements and Notes [Consolidated Financial Statements](index=51&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements present NVR, Inc.'s financial position, results of operations, and cash flows for the three-year period ended December 31, 2018 Consolidated Balance Sheet Highlights (as of Dec 31, 2018) | (in thousands) | Amount | | :--- | :--- | | **Total Assets** | $3,165,933 | | Homebuilding Inventory | $1,253,110 | | Senior Notes | $597,681 | | **Total Liabilities** | $1,357,371 | | **Total Shareholders' Equity** | $1,808,562 | Consolidated Income Statement Highlights (Year Ended Dec 31, 2018) | (in thousands) | Amount | | :--- | :--- | | **Homebuilding Revenues** | $7,004,304 | | **Homebuilding Income** | $871,106 | | **Mortgage Banking Income** | $88,626 | | **Income Before Taxes** | $959,732 | | **Net Income** | $797,197 | [Notes to Consolidated Financial Statements](index=56&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosure on significant accounting policies, segment information, debt, commitments, and the impact of the 2017 Tax Cuts and Jobs Act - The company adopted ASU 2014-09 (Revenue from Contracts with Customers) on January 1, 2018, using the modified retrospective method, which did not materially change the timing of revenue recognition at settlement[306](index=306&type=chunk)[307](index=307&type=chunk) - The company does not consolidate the development entities from which it purchases lots, as it lacks the power to direct the activities that most significantly impact the developers' economic performance[342](index=342&type=chunk) - The effective tax rate was **16.94% in 2018**, down from **36.53% in 2017**, primarily due to the reduction in the federal statutory rate from 35% to 21% following the Tax Cuts and Jobs Act of 2017 and the recognition of excess tax benefits from stock option exercises[157](index=157&type=chunk)[377](index=377&type=chunk) - As of December 31, 2018, the company had approximately **$302 million** in total unrecognized compensation cost related to outstanding stock options and RSUs, to be recognized over a weighted-average period of **2.6 years**[393](index=393&type=chunk)