Note 11 - Warranty Accrual

12 Months Ended

Dec. 31, 2013

Product Warranties Disclosures [Abstract]

Product Warranty Disclosure [Text Block]

11.          Warranty Accrual

The following table summarizes the warranty reserve activity for the years ended December 31, 2013, 2012 and 2011.

	Year Ended December 31,
	2013			2012			2011
	(Dollars in thousands)
Balance at beginning of period	$	23,151		$	25,525		$	34,704
Expense provisions		5,562			4,216			4,224
Cash payments		(6,475	)		(6,590	)		(7,925	)
Adjustments		-			-			(5,478	)
Balance at end of period	$	22,238		$	23,151		$	25,525

We recorded adjustments to reduce our warranty reserve by $5.5 million for the year ended December 31, 2011 primarily as a result of favorable warranty payment experience relative to our estimates at the time of home closing as we continued to experience lower than anticipated warranty payments on previously closed homes. We believe the lower warranty payment experience rate in 2011 as compared to those in prior year was driven by, among other things, tighter focus and controls over our warranty expenditures, a significant drop in sales volumes over the last several years leading up to 2011, which resulted in fewer homes under warranty, and better quality controls and construction practices. There were no such adjustments required for 2012 or 2013. Furthermore, our warranty expense provision rates for 2013 and 2012 were lowered as a result of improved warranty payment experience over the last several years.