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 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________________ FORM 10-K _____________________________________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 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 1-1237 ...

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 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________________ FORM 10-K _____________________________________________________________ For the fiscal year ended December 31, 2018 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-1237 ...