Note 12 - Warranty Accrual

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Product Warranty Disclosure [Text Block]

12. Warranty Accrual

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

December 31, 2018,

2017

and

2016.

During

2018,

2017

and

2016,

we recorded

$3.4

million,

$1.3

million and

$7.5

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

second

half of

2015

and continued, to a lesser extent, through

2018.

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, 2018,

2017

and

2016.

	Year Ended December 31,
	2018			2017			2016
	(Dollars in thousands)
Balance at beginning of period	$	21,909		$	20,678		$	15,328
Expense provisions		14,513			10,769			8,905
Cash payments		(11,573	)		(10,879	)		(11,017	)
Adjustments		3,413			1,341			7,462
Balance at end of period	$	28,262		$	21,909		$	20,678