Note 11 - Warranty Accrual

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Product Warranty Disclosure [Text Block]

11. Warranty Accrual

The table set forth below summarizes accrual, adjustment and payment activity related to our warranty accrual for the years ended

December

31,

2016,

2015

and

2014.

During

2016

and

2015,

we recorded

$7.5

million and

$0.2

million, respectively, in adjustments to increase our warranty accrual. The adjustments were primarily due to unexpected warranty related expenditures, which began during the

second

half of

2015

and continued through most of

2016.

During

2014,

as a result of favorable warranty payment experience relative to our estimates at the time of home closing, we reduced our warranty accrual by

$2.6

million. Additionally, from time to time, we change our warranty accrual rates based on payment trends. Any changes made to those rates did not materially affect our warranty expense or gross margin from home sales for the years ended

December

31,

2016,

2015

and

2014.

	Year Ended December 31,
	2016			2015			2014
	(Dollars in thousands)
Balance at beginning of period	$	15,328		$	18,346		$	22,238
Expense provisions		8,905			6,303			4,834
Cash payments		(11,017	)		(9,510	)		(6,126	)
Adjustments		7,462			189			(2,600	)
Balance at end of period	$	20,678		$	15,328		$	18,346