Commitments and Contingencies (Tables)
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6 Months Ended |
Jun. 30, 2018 |
Commitments and Contingencies Disclosure [Abstract] |
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Summary of Changes in Loan Origination Liability |
Our mortgage operations may be responsible for losses associated with mortgage loans originated and sold to investors in the event of errors or omissions relating to representations and warranties made by us that the loans met certain requirements, including representations as to underwriting standards, the existence of primary mortgage insurance, and the validity of certain borrower representations in connection with the loan. In addition, certain trustees and investors continue to attempt to collect damages based on losses from loans that originated prior to 2009. Some of our mortgage subsidiaries are currently defendants in litigation related to such claims.
Our recorded liabilities for all such claims totaled $34.5 million and $34.6 million at June 30, 2018 and December 31, 2017, respectively. Determining the liabilities for anticipated losses requires a significant level of management judgment. Given the nature of these claims and the uncertainty regarding their ultimate resolution, actual costs could differ from our current estimates.
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Summary of Changes in Warranty Liability |
Changes to warranty liabilities were as follows ($000’s omitted): | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | June 30, | | June 30, | | 2018 | | 2017 | | 2018 | | 2017 | Warranty liabilities, beginning of period | $ | 70,986 |
| | $ | 64,681 |
| | $ | 72,709 |
| | $ | 66,134 |
| Reserves provided | 15,731 |
| | 12,446 |
| | 27,647 |
| | 23,088 |
| Payments | (17,129 | ) | | (16,815 | ) | | (31,411 | ) | | (28,914 | ) | Other adjustments (a) | 2,581 |
| | 13,041 |
| | 3,224 |
| | 13,045 |
| Warranty liabilities, end of period | $ | 72,169 |
| | $ | 73,353 |
| | $ | 72,169 |
| | $ | 73,353 |
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| | (a) | During the three and six months ended June 30, 2017, we recognized a charge of $12.1 million related to estimated costs to complete repairs in a closed-out community in Florida. |
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Summary of Changes in Self-Insurance Liability |
Changes in these liabilities were as follows ($000's omitted): | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | June 30, | | June 30, | | 2018 | | 2017 | | 2018 | | 2017 | Balance, beginning of period | $ | 771,104 |
| | $ | 835,326 |
| | $ | 758,812 |
| | $ | 831,058 |
| Reserves provided, net | 23,235 |
| | 23,411 |
| | 42,895 |
| | 43,126 |
| Adjustments to previously recorded reserves (a) | (37,529 | ) | | (19,813 | ) | | (35,068 | ) | | (21,793 | ) | Payments, net (b) | (31,328 | ) | | (24,168 | ) | | (41,157 | ) | | (37,635 | ) | Balance, end of period | $ | 725,482 |
| | $ | 814,756 |
| | $ | 725,482 |
| | $ | 814,756 |
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